The country’s unemployment rate slightly increased to 3.8 percent in September 2025, a notch higher than 3.7 percent recorded in the same month last year, according to the latest Labor Force Survey (LFS) released by the Philippine Statistics Authority (PSA) on Thursday.

The figure represents about 1.96 million unemployed Filipinos, up from 1.89 million in September 2024. Despite the year-on-year increase, the rate improved from 3.9 percent in August 2025.

Labor Force Participation Declines

The labor force participation rate (LFPR) — the share of the working-age population that is either employed or actively seeking work — dropped to 64.5 percent in September 2025, lower than 65.7 percent a year ago and 65.1 percent in August 2025.

This translates to 51.56 million Filipinos aged 15 and older in the labor force, down from 51.77 million in September 2024 and 52.13 million in August 2025.

Among young Filipinos aged 15 to 24, the LFPR fell to 31.6 percent, from 33.9 percent last year. The youth employment rate also dropped to 88.4 percent, from 89.9 percent in September 2024.

The underemployment rate in September 2025 stood at 11.1 percent, down from 11.9 percent in September 2024 but slightly higher than 10.7 percent in August 2025.

Meanwhile, the employment rate was 96.2 percent, slightly lower than 96.3 percent in the same month last year. The total number of employed persons reached 49.60 million, compared to 49.87 million in September 2024.

The services sector remained the largest source of jobs, accounting for 61.3 percent of total employment, followed by agriculture (20.9%) and industry (17.8%).

The top three subsectors with the most workers were wholesale and retail trade; repair of motor vehicles and motorcycles (20.6%), agriculture and forestry (17.9%), and construction (10%).