THE Philippines’ unemployment rate inched up to 3.9% in March from a month earlier, even as the number of jobless Filipinos fell by the tens of thousands from a month and a year earlier, according to the statistics agency.

In its latest Labor Force Survey, the Philippine Statistics Authority (PSA) said the jobless rate rose to 3.9% in March from 3.8% in February, but flat from a year ago.

This is equivalent to 1.93 million jobless Filipinos in March, slightly lower than the 1.94 million unemployed in February and the two million jobless in March last year.

The country’s unemployment rate averaged at 4% in the first three months of 2025, unchanged from the same period last year.

PSA data also showed underemployment worsened to 13.4% in March from 10.1% in February and 11% a year earlier.

The ranks of underemployed Filipinos — those who want longer work hours or an additional job — reached 6.44 million in March. This was higher than 5.39 million in March 2024 and 4.96 million in February.

“Underemployment rose by 1.05 million, it was mainly contributed by what we call the ‘invisible underemployed.’ They work for 40 hours and above but seek additional work or other jobs with higher salaries,” National Statistician Claire Dennis S. Mapa said at a media briefing.

He added that the rise in the underemployment rate in March was spread out across all sectors.

For the first three months, the unemployment rate stood at 12.3%, unchanged from last year.

PSA data showed 49.96 million Filipinos were part of the labor force in March, lower than the 51.09 million in February and 51.15 million in March 2024.

The labor force participation rate (LFPR) — the proportion of the working-age population (15 years old and over) that is part of the total labor force — slipped to 62.9% in March from 64.5% in February. Year on year, the LFPR fell from 65.3%.

“In March 2025, we saw that a substantial number decided to go back to school. That means that they had to forego their opportunities in the labor market to continue their studies,” Mr. Mapa said.

He said some may have also opted out of the labor force due to “household family duties.”

The employment rate was steady at 96.1% from a year ago, but slightly lower than the 96.2% in February.

However, the number of Filipinos with jobs dropped by over a million to 48.02 million in March, from 49.15 million a year ago, signaling concerns about labor participation and underemployment.

For the first quarter, the average employment rate was unchanged at 96%.

Mr. Mapa said that the decline in the employment rate in March can be traced to the drop in jobs in the agriculture sector.

He said the suspension of government hiring may have also affected the labor data in March.

“There was a ban on hiring in government positions, we think this had an impact on the reduction of employed persons,” he said, referring to the election ban on hiring of new government employees that runs from March 28 to May 12.

By sector, services remained the top employer, accounting for 62% of total employed persons in March, followed by agriculture (20.1%) and the industry sector (17.9%).

The education sector saw the largest annual increase in jobs during the month, adding 210,000 jobs. This was followed by administrative and support service activities (+145,000), fishing and aquaculture (+138,000), arts, entertainment and recreation (+91,000), and human health and social work activities (+51,000).

On the other hand, agriculture and forestry saw the biggest annual decline in employment (-609,000). This was followed by public administration and defense and compulsory social security (-349,000), manufacturing (-281,000), wholesale and retail trade, repair of motor vehicles and motorcycles (-175,000), and professional, scientific and technical activities (-100,000).

Wage and salary workers accounted for 63.4% of the workforce in March, followed by self-employed individuals without paid employees (27.9%), unpaid family workers (6.6%), and employers in family-operated farms or businesses at 2.1%.

Working hours averaged 41.2 hours per week in March, increasing from the average 40.7 hours reported last year and the 41.4 hours in February.

“The Philippines’ unemployment rate remained low, signaling a robust labor market that should help support domestic demand and overall economic growth amidst external headwinds,” Chinabank Research said in a statement.

University of the Philippines Diliman School of Labor and Industrial Relations Assistant Professor Benjamin B. Velasco, in a Facebook chat, said the month-on-month uptick in the jobless rate could be due to the loss of seasonal jobs in construction and trade.

“The loss of jobs in those sectors could not be compensated by higher temporary employment created by the election season — falls under the administrative and support service activities,” Mr. Velasco said.

Federation of Free Workers Vice-President Julius H. Cainglet said the rise in the underemployment rate could be due to Filipinos looking for extra work.

“Workers seek additional jobs since the wages in their existing jobs are not enough to sustain their family’s needs. They need living wages, not starvation wages,” Mr. Cainglet said in a Viber message.

Chinabank Research said the rise in underemployment shows the need for more quality jobs for Filipinos.

Mr. Velasco said that the annual increase in employment in the education sector shows the need for new teachers as the student population grows.

“The (increase in) administrative and support services is due to temporary employment related to elections. There are thousands of ward leaders and so-called volunteers doing paid work for candidates,” Mr. Velasco added. — A.H.Halili