MANILA, Philippines – More Filipinos were unemployed in January as the holiday demand for workers subsided, the Philippine Statistics Authority (PSA) reported on Thursday, March 6.

Unemployment rose from an all-time low of 3.1% in December 2024 to 4.3% in January 2025, which translates to 2.16 million jobless Filipinos. Underemployment also climbed to 13.3% from December’s 10.9%.

However, January 2025’s unemployment figure is lower than January 2024’s 4.5%. Underemployment is also slightly down from the previous year’s 13.7%.

Underemployed Filipinos are defined as those who want to work more hours in their current job, a second job to augment their income, or another job that has longer work hours.

By region, Bicol logged the highest unemployment rate at 6.5%, while the Zamboanga Peninsula’s 2.3% jobless rate was the lowest in the country in January.

Deputy National Statistician Divina Gracia del Prado attributed the increase to the end of the 2024 holidays, which often came with a surge in job hirings.

“Sa start ng October, nagprepare na ‘yung mga manufacturers to manufacture goods in preparation for the Christmas season. But pagdating ng January round, this is quarter-on-quarter din, bumababa din siya,” she explained.

(At the start of October, manufacturers are already preparing to manufacture goods in preparation for the Christmas season. But when January comes around, this is quarter-on-quarter, production goes down.)

Agriculture jobs added, manufacturing jobs lost

The PSA noted that the agriculture and forestry sector added the most jobs year-on-year at 883,000. Wholesale and retail also added 850,000 jobs.

Del Prado attributed this to the start of production season, as more Filipinos were hired for the planting of paddy rice and vegetables.

“Rice harvesting activities often peak in the fourth quarter. So they started planting now in the first quarter, January,” she said in Filipino.

The manufacturing sector lost the most jobs year-on-year, shedding around 209,000 jobs.

Del Prado said manufacturing jobs dropped as production growth in the sector slowed to just 0.9% in 2024 from 4.9% the year before. She cited the subsiding demand for goods such as consumer electronics.

The National Development and Economic Authority (NEDA) is optimistic that the implementing rules and regulations of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act will entice more investors to set up shop in the Philippines.

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NEDA Secretary Arsenio Balisacan also vowed to address vulnerabilities in the agriculture job market, as well as upskill the information technology and business process management (IT-BPM) sector.

“To further support growth and investment in the IT-BPM sector, the government, working closely with industry players, will promote the reskilling and upskilling of the workforce to meet the industry’s advanced skill requirements amidst AI integration,” he said. – Rappler.com