EMPLOYMENT in the Philippines slipped in September, defying the usual gains recorded at the start of the ‘ber months,’ according to the Philippine Statistics Authority (PSA).
Results of the latest Labor Force Survey (LFS) showed that the number of employed Filipinos fell to 49.60 million, about 494,000 fewer than the 50.10 million recorded in August and 270,000 lower than the 49.87 million posted in the same month last year.
The decline came even as the country entered its traditionally busy preholiday season, when hiring in retail, services, and logistics typically rises.
PSA data indicated that the largest month-on-month declines were recorded in other service activities (-498,000, from 3.42 million to 2.92 million), construction (-308,000, from 5.28 million to 4.97 million), and transportation and storage (-247,000, from 3.89 million to 3.64 million).
On a year-on-year basis, employment also contracted in several industries, led by other service activities (-493,000, from 3.41 million to 2.92 million), administrative and support services (-356,000, from 3.23 million to 2.87 million), and manufacturing (-302,000, from 3.75 million to 3.45 million).
National Statistician Claire Dennis S. Mapa said the decline in employment in manufacturing could be tied to lower export production this year, noting that the sector has posted consistent losses since January.
‘When we look at the nine-month average.there’s an average decline of around 208,000 workers in manufacturing,’ Mapa said. ‘It’s possible that this reflects the impact on our exports, since most of our manufacturing companies produce goods for the export market.’
Mapa said that weather disturbances may have also contributed to the employment decline, especially in sectors dependent on outdoor or mobile operations.
Meanwhile, PSA data also showed that 1.96 million Filipinos were unemployed in September, slightly down from 2.03 million in August but higher than the 1.89 million recorded in September last year.
The number of underemployed workers-those already working but still seeking additional hours or jobs-rose to 5.52 million from 5.38 million in August, though this was lower than the 5.94 million posted in September 2024.
While both employment and unemployment rates declined in September, Mapa said this was mainly due to a smaller labor force, as fewer Filipinos either worked or actively sought work during the period.
The labor force participation rate (LFPR) fell to 64.5 percent (51.56 million individuals), from 65.7 percent (51.77 million) in the same period last year.
Among the youth aged 15 to 24, participation dropped to 31.6 percent, from 33.9 percent in September 2024.
‘The 15-24 age group accounted for around 435,000 of the decline, followed by the 45-54 age group with 361,000,’ Mapa said. ‘We have an increase due to household duties.temporary sickness.in terms of non-participation in the labor market.’
He added that an uptick in employment may still be observed in the fourth quarter, as seasonal hiring for the holidays usually peaks during that period.
Labor market still resilient
Socioeconomic Planning Secretary Arsenio M. Balisacan said the overall labor market ‘remains resilient’ despite short-term fluctuations, citing year-on-year improvements in job quality as underemployment continued to ease compared to 2024 levels.
‘Our employment indicators continue to reflect the economy’s capacity to generate stable and meaningful jobs for millions of Filipinos, even amid uncertainties and headwinds,’ Balisacan said.
The Department of Economy, Planning, and Development (DepDev) attributed the year-on-year drop in underemployment to the decline in ‘invisibly underemployed’ workers, particularly in transportation and storage (-155,000) and administrative and support services (-138,000).
DepDev added that while unemployment edged up compared to last year, the Philippines continues to post better figures than regional peers such as India and China (both at 5.2 percent), though it still trails Malaysia (3.0 percent) and Vietnam (2.2 percent).
By sector, construction remained a key driver of employment, adding about 514,000 workers year-on-year, followed by agriculture and fisheries, which gained 439,000.
The services sector accounted for 61.3 percent of total jobs, reinforcing its role as the economy’s largest employer.
Balisacan said the government is focusing on strengthening the resilience of vulnerable sectors and upskilling workers to prepare them for emerging opportunities in digital and AI-driven industries, particularly in higher-value outsourcing segments such as IT, creative, and knowledge process services.
‘The government continues to strengthen efforts to promote employability and lifelong learning to equip Filipino workers with the skills required by evolving and emerging industries. This will be key to ensuring that our labor force is able to adapt and thrive in an ever-shifting work environment,’ he said.