Unemployment rate hits three-year high in July

go through Chloe Mari A. Hufana, reporter
Unemployment in the PhilippinesRate rises to three years A series of typhoons and monsoon rainfall in July weakened recruitment activities at a whopping 5.3%, the Bureau of Statistics said on Wednesday.
The Philippine Statistics Agency (PSA) labor force survey showed that the number of unemployed Filipinos increased from 2.38 million a year ago to 1.95 million in June to 2.59 million.
The unemployment rate of 5.3% is the highest in three years or 6% since June 2022, reflecting the impact of the pandemic lockdown. It also matches the unemployment rate in August 2022.
Interest rates in July were also higher than 4.7% recorded in the same month in 2024, compared with 3.7% in June 2025.
So far, the unemployment rate in 2025 averaged 4.1%, slightly higher than 4% from 4% a year ago.
National statistician Claire Dennis S.
There are more tropical cyclones in the Philippines than in any other part of the world, with an average of about 20 per year. According to the countryfelectronic weather bureau.
The agricultural sector (skilled agriculture, forestry and fishery workers) lost 974,000 jobs a year. In terms of major industries, the agricultural and forestry sectors lost 1.38 million.
Labor Minister E. Laguesma told Bienvenido E. Laguesma told the agricultural sector that the unemployment rate is caused by poor weather and multiple tropical depressions. BusinessWorld By Viber.
Mr Mapa said that the main causes of job declines in agricultural subsidiaries that have contributed mainly to job declines were the cultivation of Paddy rice (-750,000) and corn (-456,000).
“We’ve seen this since January – the employment of rice has indeed dropped. So maybe there are several factors that affect this [like] “Weather, some people say it’s also because of the low price of the farm gate in Palai. In pig farms, it’s been reduced by 133,000 because some provinces are affected by the ASF in some provinces. (African pigs have fever). ”
Mr Mapa added: “We have seen some sub-industry affected by the weather. In July, we were hit by four typhoons, which affected a large number of provinces and had an impact on our labor market.”
In another statement, the Ministry of Economics, Planning and Development (DEPDEV) urged greater efforts to enhance climate resilience and workforce agility.
DEPDEV Secretary Arsenio M. Balisacan called for modern agricultural practices, climate smart strategies, rural infrastructure and digital connectivity to help buffer the impact of extreme weather events on work.
“The modernization of our economic sector, whether from climate change or technological transition, emphasizes the urgency of a modernized economic sector. We are also fully committed to enhancing employment, expanding labor market programs, and working with key stakeholders to enable future Filipino workforce,” Mr Balisacan said.
Benjamin B. Velasco, assistant professor at the School of Labor and Labor Relations at the University of the Philippines, said unemployment in the agricultural sector is likely to continue in the coming months due to climate hazards.
“Of course, work bleeding in agriculture is a climate change effect, and unfortunately, it’s not a one-off phenomenon, but rather [will] Even worsen until the end [the] The rainy season is now extended to November. ” he said via Facebook Messenger.
“The long-term trend is that agricultural employment is to reduce and engage in jobs in rural areas [the] Trade liberalization and commercialization, although limited and unstable, impacts of trade. ” he added.
Meanwhile, wholesale and retail trade, maintenance in the automotive and motorcycle sectors crossed out 897,000 workers from the same month in July last year, while fishing and aquaculture lost 173,000.
Unemployed agricultural workers were said due to the poor weather transfer to the construction industry.
Despite the rise in unemployment in July, he expressed optimism As the holiday approaches, this kind of work will increase Seen in historical trends.
Mr. Laguesma also said: “The upcoming holiday will lead to [a] Higher employment rates. ”
Inadequate employment
Meanwhile, PSA data also showed that underemployment ratio rose to 14.8% in July from 12.1% in the same month a year ago, compared with 11.4% in June.
The under-Filipinos (those who want longer hours or extra work) hit 6.8 million in July, up from 5.77 million a year ago.
In the first seven months, the average employment rate for the same period last year was 12.9%, higher than 12.2%.
Labor force participation rate fell from 63.5% a year ago to 60.7% in July. Mr Mapa also attributed it to the severe weather of the month, identifying areas of agriculture, construction and manufacturing as the largest drop zone.
In July, about 94.7% or 46.05 million Filipinos had jobs, down from 95.3% or 47.68 million recorded a year ago.
The employment rate averaged 95.9% in the seven months to July, down from 96% last year.
Meanwhile, earners of wages and salary income accounted for the majority of employed people in July, at 68.7%. Following closely behind are self-employed people, with no paid employees, accounting for 24.7%, unpaid domestic workers at 3.9%, and employers at 2.6% at their own family-run farms or businesses.
In the wage and wage workers group, private institutions continue to account for the largest share of 78.5%, equivalent to 53.9% of the total employed population. Those working in government or government-controlled companies account for 14.4% of wages and wage workers and 9.9% of overall staff.
By region, Cordillera borough had the highest employment rate in July at 96.6%, while the BICOL region (V zone) recorded 92.3%.
The unemployment rate in eight regions is above the national average of 5.3%, led by the BICOL region at 7.7%, followed by the IV-A region (Calabarzon), at 6.6%, and the VII region (Central Mishaya) at 6.1%.
The ILO said the increase in unemployment rate highlights the need for legislative wage hiking to strengthen workers’ purchasing power.
“The surge in unemployment is shocking, and the rise of underemployment tells us that even those who have jobs don’t make enough money to be good at living.” BusinessWorld By Viber.
He said the latest figures reflect the country’s job and wage crisis, exacerbated by inflation, the ongoing presence of unstable jobs and the lack of sustainable and quality jobs.
Sentro Ng Mga Nagkakaisa of Progresibong Manggawa said in another statement that the data showed a lack of creation work for the government.
“The facts have been resolved: Millions of Filipinos are still stuck in insecure, low quality and low-paying jobs,” it said.
“While other countries are improving in manufacturing, industry and innovation, the Philippines is trapped in informal and instability – a part of our government has failed… Every month, these employment numbers remain the same means another month when millions of Filipinos are condemned for poverty and insults.”