Philippine jobless rate eases to 3.7% in June, but job quality still a concern

PHILIPPINE unemployment eased to 3.7% in June, as more Filipinos found job opportunities during the month, according to the local statistics agency.

- By Adrian H. Halili

However, labor experts cautioned that structural challenges remain in the country’s labor market, particularly on job quality and sustainability.

The June unemployment rate was lower than 3.9% in May, but higher than 3.1% a year ago, the Philippine Statistics Authority (PSA) said.

This translates to 1.95 million jobless Filipinos, down from 2.03 million in April. The number of unemployed rose from 1.62 million a year earlier. The average unemployment rate for the first half stood at 4%, slightly higher than 3.9% a year ago.

Deputy National Statistician Divina Gracia L. Del Prado said the month-on-month improvement was due to a drop in discouraged workers — those who had stopped looking for jobs, believing none were available.

However, she noted that the year-on-year rise in the unemployment rate was due to a larger number of Filipinos entering the job market, particularly new graduates, she told a news briefing.

“Because June is also graduation [season], there are many people who are actually entering our labor market,” she said. She added that many had cited active job searching or waiting to be rehired as the top reasons for being unemployed.

Underemployment — defined as workers seeking additional hours or better-paying jobs — dropped to 11.4% in June from 13.1% in May, translating to 5.76 million underemployed Filipinos. However, this figure was still slightly lower than the 6.08 million underemployed in June 2024, when the rate was 12.1%.

For the first half, the average underemployment rate stood at 12.7%, slightly higher than the 12.3% average from a year earlier.

Despite the drop in underemployment for the month, some labor groups warned against interpreting the decline as an improvement in job quality.