The Philippine Statistics Authority (PSA) said unemployment and underemployment increase in March,

PSA said Labor Force Survey results indicates that jobless rate was 3.9 percent in March, which was slightly higher than the 3.8 percent clip in February, while the underemployment rate meanwhile, climbed to 13.4 percent in March from 10.1 percent in February.

PSA Undersecretary and national Statistician Dennis Mapa noted that the jobless rate edged up even as the total number of unemployed workers in March fell to 1.93 million from 1.94 million in February. This was because fewer people joined the labor force that month.

“The labor force participation rate (LFPR) in March 2025 was estimated at 62.9 percent, lower than the estimated LFPR in March 2024 at 65.3 percent and in February 2025 at 64.5 percent,” the PSA said.

Mapa said there were 49.96 million Filipinos aged 15 years old and over who were in the labor force, or those who were either employed or unemployed. This was down from  51.09 million in February.

He said this was because about 816,000 young workers opted to go back to school instead of looking for work.

“Very dynamic yung ating labor market, particularly for those na nasa age 15-24. So dito, itong Matrch 2025, nakita namin na susbtantial ang nag-decide na bumalik sa school,” she said.

Mapa also noted that some 784,000 said they are not working because they are focused on household and family duties.

The PSA noted that the percentage of young workers in the labor force dropped to 29.4 percent in March from 31.1 percent in February.

The underemployment rate meanwhile surged because of what the PSA dubbed as “invisible underemployed.” This refers to workers who are already working 40 hours per week or more, but are still looking for more work hours or additional work.

Mapa said the increase in underemployment was spread across the construction (186,000), wholesale and retail trade (130,000), and public administration and defense (123,000) sectors.

From February to March, the administrative, education, manufacturing, IT, and hotel and food sectors added the most jobs, with over 650,000 workers hired.

In the same period, the construction industry, which had been an engine of job growth before, shed the most jobs, with 473,000 workers rendered unemployed. Some 439,000 jobs were also lost in wholesale and retail trade and the repair of motor vehicles and motorcycles.

The Department of Economy, Planning, and Development (DEPDev) said the implementation of the Trabaho Para sa Bayan (TPB) Plan will help more Filipinos get better quality jobs.

“The latest employment figures highlight the need for a comprehensive set of interventions to increase investments, encourage technology adoption, improve job satisfaction and employment quality,” said DEPDev Undersecretary for Policy and Planning Rosemarie Edillon.

The TPB Plan calls for the training of workers so they can gain micro-credentials to help reduce underemployment and skills mismatches.

Under the TPB, the private sector is expected to help strengthen educational curricula, improving training, and supporting job placement programs.