Unemployment climbs to 4.1% in April 2025 as manufacturing sector sheds jobs

MANILA, Philippines – Unemployment rose slightly in April as the manufacturing industry shed jobs amid lower confidence levels, the Philippine Statistics Authority (PSA) reported on Friday, June 6.

According to the PSA’s preliminary data, unemployment climbed from 3.9% in March to 4.1% in April, translating to around 2.06 million jobless Filipinos. Meanwhile, underemployment went up to 14.6% from 13.4%.

National Statistician Dennis Mapa explained that a bulk of unemployed Filipinos in April were just waiting to hear from their job applications, or were expecting to be rehired or recalled for previous jobs.

Mapa also noted that Central Visayas recorded the highest unemployment rate in April at 5.5%, 2.7% higher than in January. Meanwhile, the Cordillera Administrative Region logged the lowest jobless rate in the country at 2.2%.

In terms of underemployment, Soccsksargen’s figure was more than double the national average at 36%, while the Davao Region had the lowest underemployment rate at 3.9%.

Administrative and support service industries hired the most Filipinos, adding 394,000 jobs year-on-year. Around 262,000 more Filipinos also landed jobs in public administration, defense, and social security.

Meanwhile, the manufacturing sector lost the most jobs year-on-year, shedding around 410,000 jobs.

Mapa cited lower semiconductor exports as one of the key reasons for the sector’s loss of jobs.

“‘Yung ating manufacturing sector, ang unang tinamaan diyan ay nasa subsector natin ng semiconductor devices and other electronic components…. Kung na-track natin ‘yung ating exports, bumaba rin doon. So ito talaga may impact sa ating external markets kung saan tayo nag-export,” he explained.

(The hardest-hit in our manufacturing sector was the subsector of semiconductor devices and other electronic components. We tracked that our exports here also dropped. So this really had an impact on the external markets where we export.)

Semiconductors are the Philippines’ top export product by value, but PSA data shows that the country exported just $7.7 billion worth of semiconductors in the first quarter, 4.9% less than exports in the same period in 2024.

According to S&P Global’s Purchasing Managers Index, which measures factory performance, the country’s manufacturing sector came back to life in April amid a surge of economic activity ahead of the 2025 midterm elections.

However, S&P Global Market Intelligence economist Maryam Baluch noted that the international demand for Filipino goods was stagnant. This resulted in Philippine manufacturers exercising caution in expanding their workforce.

“Furthermore, confidence within the sector has declined to its second lowest in the series history. Some respondents indicated that the rise in activity during April was partially influenced by the upcoming elections, suggesting that post-election, customer demand may be less buoyant,” she said.

Rice farmers switch careers

Based on quarterly changes, the PSA found that the agriculture and forestry sector has lost the most jobs since January, shedding around 324,000 jobs.

Mapa said many farmers were replaced by machinery in several stages of the farming process. Farmers who grew rice, in particular, were the hardest-hit.

“Dalawa ang nakikita namin…na factors dito. Una ay ‘yung pag-introduce ng mga machineries, particularly sa pag-harvest, so mas konti na ‘yung manpower na ni-require at ang sinasabi, lumilipat sila sa construction. Kaya may mga pagtaas tayo ng construction [jobs]. At pangalawa ay dahil nga bumaba rin ‘yung presyo ng ating palay,” he said.

(We saw two factors. First is the introduction of machinery, especially in harvesting, so farming required less manpower and farmers moved to construction. That’s why we saw an increase in construction jobs. And the second is because the price of palay has also gone down.)

Based on PSA data, palay farmgate prices that month dropped 27.8% year-on-year to an average of P17.69 per kilo.

Continuously evolving job market

For Labor Secretary Bienvenido Laguesma, the latest employment figures reflect the labor market’s “resilience” as it evolves due to domestic and international factors. But he also noted that the high underemployment rate shows the government can still better address mismatches between jobs and educational attainment and skills.

Laguesma vowed to foster a conducive environment for sustainable businesses.

“Through the Trabaho Para sa Bayan Plan 2025-2034, we will continue to craft effective and relevant employment policies, enhance workforce employability and skills, and broaden access to jobs and livelihood opportunities across the nation,” he wrote in a statement.

Despite the uptick in April’s jobless rate, Department of Economy, Planning, and Development Undersecretary Rosemarie Edillon believes the job market continued to demonstrate resilience amid global headwinds.

The latest unemployment figure also puts the Philippines on track to achieve its target jobless rate of 4.4% to 4.7% under the five-year Philippine Development Plan.

Aside from ongoing initiatives to boost job-seekers’ employability, Edillon also urged the government to prioritize the development and promotion of a national policy for lifelong learning. This includes effective implementation of the Expanded Tertiary Education Equivalency and Accreditation Program.

Edillon added that the government will continue to promote measures that improve domestic industries’ productivity, especially in sectors that generate higher-quality jobs.

“Attracting more investments to generate higher-quality and better-paying jobs, particularly in manufacturing and higher-value-added services, and expanding into new markets is essential to broadening our economy and opening up more job opportunities for Filipino workers,” she said. – Rappler.com