PSA: More Filipinos seek extra work despite lower jobless rate

FILE PHOTO: Thousands of job seekers and former OFWs troop to the Cuneta Astrodome in Pasay City for the DOLE- DTI organized summer job fair on March 26, 2018. INQUIRER/ MARIANNE BERMUDEZ

CEBU, Philippines — For many Filipinos, having a job no longer guarantees financial stability. Even as the country’s unemployment rate slightly improves, millions of workers still struggle to earn enough, forcing them to look for extra work or longer hours just to survive.

The latest Labor Force Survey (LFS) released by the Philippine Statistics Authority (PSA) on Thursday, March 6, revealed that the country’s unemployment rate dropped to 4.3 percent in January 2025, an improvement from 4.5 percent in January 2024. This translates to 2.16 million Filipinos without jobs, down from 2.18 million in the same period last year.

However, beneath this development is a deeper issue that underemployment remains a persistent challenge. The report shows that 6.47 million Filipinos (13.3 percent) are underemployed, meaning they already have jobs but are actively seeking additional work or longer hours to make ends meet.

READ: Labor group asks employers to grant wage hike: ‘P150 is just for coffee’

While slightly lower than 13.7 percent in January 2024, this figure reflects the reality that many employed Filipinos still struggle with low wages, contractual work, and limited job opportunities.

More Filipinos forced to work extra hours, take multiple jobs

Moreover, the data shows a trend that more Filipinos are working longer just to cope with the rising cost of living.

The average work hours per week declined from 42.2 hours in January 2024 to 40.4 hours in January 2025, meaning many workers are seeing fewer opportunities to work full-time or receive overtime pay.

READ: PSA: PH unemployment eased in November 2024 to 3.2%

According to PSA, at least 59,000 Filipinos reported working only one hour in January 2025, an increase from 34,000 the previous year. This highlights the growing prevalence of irregular, unstable work arrangements, which include daily wage earners, contractual employees, and gig economy workers who struggle with job insecurity.

Economists warn that while employment rates are improving, the quality of jobs remains a major concern. Many of the newly employed are in low-paying, temporary, or informal jobs, which do not offer long-term security or benefits like health insurance and social security.

Job gains in agriculture, retail, and food services

Despite challenges, certain industries saw significant job gains. The agriculture and forestry sector added 883,000 jobs, likely driven by seasonal hiring and government support programs.

The wholesale and retail trade sector, including the repair of motor vehicles, expanded by 850,000 jobs, benefiting from strong consumer spending. Meanwhile, accommodation and food services recorded 533,000 additional workers as the tourism and hospitality industries continued to recover.

READ: Cebu-based group hails House approval of P200 wage hike as ‘initial victory’

These sectors, however, tend to offer low-wage and seasonal employment, which often does not provide financial stability for workers.

Manufacturing, construction, and IT sectors lose jobs

While some industries saw employment growth, others suffered job losses. The manufacturing sector shed 209,000 jobs, reflecting weaker demand and rising production costs.

Meanwhile, the professional services, construction, arts and entertainment, and information technology (IT) sectors also saw workforce reductions, possibly due to automation, outsourcing, and economic slowdowns.

READ: Cebu labor groups want P150 wage increase

The decline in construction jobs is particularly concerning as it suggests a slowdown in infrastructure projects and real estate development, which are key drivers of economic growth.

Regional disparities: Bicol has highest unemployment rate

Job opportunities remain uneven across the country. The Bicol region recorded the highest unemployment rate at 6.5 percent, while the Zamboanga Peninsula had the lowest at 2.3 percent. This highlights the continued struggle of some regions to attract investments and generate stable employment opportunities.

Meanwhile, youth labor force participation increased to 31.8 percent, but many young Filipinos still face challenges in securing stable, well-paying jobs.

The number of youth not in education, employment, or training (NEET) dropped to 11.7 percent, indicating slight progress in youth employment programs.

‘We need livable wages’

Labor groups argue that while job creation is improving, wages have not kept up with the rising cost of living.

Workers continue to grapple with higher food prices, increasing electricity and transportation costs, and expensive healthcare, making it difficult to sustain their families. /clorenciana