The Philippines' unemployment rate held steady at 4.4% in December 2025, equivalent to 2.26 million jobless Filipinos, according to the Philippine Statistics Authority. While service sector jobs rose due to the holiday season, gains were offset by heavy losses in construction. The average unemployment rate for 2025 reached 4.2%, up from 3.8% in 2024.
On February 6, 2026, the Philippine Statistics Authority (PSA) announced that the unemployment rate stayed at 4.4% in December 2025, slightly up from November's 2.25 million jobless and down from December 2024's 3.1% or 1.63 million. This pushed the full-year average to 4.2%, compared to 3.8% in 2024. Underemployment fell to 8% or 3.93 million Filipinos, from 10.4% or 5.11 million in November.
National Statistician Dennis Mapa noted that administrative and support services, such as call centers, added 385,000 jobs year-on-year, while accommodation and food services gained 280,000 amid the holidays. However, construction lost 550,000 jobs, and transport and storage shed 258,000.
Mapa linked the construction losses to historic lows in activity during the fourth quarter, tied to a corruption scandal in flood control projects. 'And we know na-report natin noong fourth quarter GDP, ‘di ba, na ‘yung fourth quarter, bumaba talaga…negative growth rate doon sa construction, particularly public construction,' he explained.
The PSA reported that the construction sector contracted 41.9% in Q4 2025 due to an ongoing probe into anomalous flood control projects, contributing to the economy's mere 3% growth that quarter, below expectations.
The Department of Economy, Planning, and Development (DEPDev) described the figures as signaling a labor market slowdown. Discouraged workers rose to 7.7% from 6.3% in December 2024, said Undersecretary Rosemarie Edillon. 'As we make 2026 a rally point to revitalize [the Philippine Development Plan] implementation, we will prioritize employment creation by restoring consumer and business confidence, reduce the cost of doing business, encourage innovation, and expand training and reskilling opportunities,' she stated. The government aims to resume delayed infrastructure and bolster high-value sectors like business process management.
