Job growth signals stronger labor market

Finance Secretary Ralph Recto welcomed the creation of 2.6 million additional jobs for Filipinos at the start of 2025, expressing optimism over the increasing participation of youth in the labor market.

“This good news affirms that our efforts to unlock the full potential of our demographic sweet spot are paying off. Through targeted government action and strategic reforms, we are not just creating more jobs—we are expanding opportunities and empowering our young workforce to drive innovation, productivity, and sustained long-term growth,” Recto said.

The January 2025 Labor Force Survey (LFS) showed a significant rise in the labor force participation rate, which climbed to 63.9 percent from 61.1 percent in the same period last year. 

This increase translates to an additional 2.6 million Filipinos across all age groups joining the labor force. 

Notably, youth labor force participation (aged 15-24) increased to 31.8 percent from 29.7 percent a year ago, highlighting greater involvement of young Filipinos in the workforce.

The proportion of youth not in education, employment, or training (NEET) also declined to 11.7 percent in January 2025 from 13.7 percent in the previous year. 

This positive development was accompanied by a drop in the country’s unemployment rate to 4.3 percent, down from 4.5 percent in January 2024. 

Underemployment also decreased to 13.3 percent from 13.7 percent, indicating an improvement in job quality for Filipinos.

The total number of employed individuals reached 48.5 million in January 2025, significantly higher than the 45.9 million recorded a year earlier.