Why Did the Philippines' Jobless Rate Climb to 5.3% in July?
Click to start listening
Synopsis
The Philippines faces rising unemployment rates as the jobless figure climbs to 5.3% in July. This increase raises concerns about the economic landscape, particularly in the manufacturing sector, which is also experiencing a decline. What factors contributed to this situation? Read on for a detailed analysis.
Key Takeaways
- Unemployment rate rose to 5.3% in July.
- Approximately 2.59 million Filipinos are unemployed.
- Decline in manufacturing output observed.
- Food production significantly impacts job statistics.
- Year-on-year growth in VoPI shows mixed results.
Manila, Sep 10 (NationPress) The unemployment rate in the Philippines rose to 5.3% in July, a significant increase from 3.7% in June, according to the Philippine Statistics Authority (PSA) this Wednesday.
PSA Chief Dennis Mapa revealed during a press conference that approximately 2.59 million Filipinos were unemployed in July, surpassing the 2.38 million jobless individuals recorded in the same month last year, as reported by the Xinhua News Agency.
In July 2024, the unemployment rate was noted at 4.7%, the PSA indicated.
Additionally, the manufacturing sector in the Philippines saw a downturn in July, with the value of the production index (VaPI) experiencing a 1.3% year-on-year decline, contrasting with a 1.2% annual increase in June, as stated by the PSA on September 9.
For July 2024, the VaPI for manufacturing recorded an annual rise of 6.6%.
The PSA attributed the downward trend in the annual VaPI growth for manufacturing in July 2025 largely to the slowdown in the production of food items.
Among the 22 manufacturing industry divisions, the PSA identified that the production of food products had the highest weight in the computation of VaPI.
Moreover, the value of production index (VoPI) also saw a 1.1% decline in July, compared to a 1.6% increase in the previous month. In July 2024, the VoPI for manufacturing noted a yearly rise of 7%.
The PSA remarked that the decrease in the year-on-year growth rate of VoPI for manufacturing in July 2025 was mainly due to slower growth in the production of food products, along with computer, electronic, optical products, and transport equipment manufacturing.
Out of the remaining 19 industry divisions, 10 reported annual decreases in July 2025, while nine divisions showed yearly increases in their VoPI during the same period.
Point of View
It's crucial to approach the rising unemployment rate with a focus on national implications. While the increase to 5.3% raises alarms, it’s essential to analyze the contributing factors and potential solutions to foster economic recovery and support for the Filipino workforce.
NationPress
10/09/2025
Frequently Asked Questions
What is the current unemployment rate in the Philippines?
As of July, the unemployment rate in the Philippines stands at 5.3%, a rise from 3.7% in June.
How many Filipinos are unemployed?
Approximately 2.59 million Filipinos are currently without jobs, according to the latest statistics.
What sectors are impacted by rising unemployment?
The manufacturing sector, particularly food production, has seen significant declines contributing to the overall unemployment rate.
What was the unemployment rate last year?
In July of the previous year, the unemployment rate was reported at 2.38 million, indicating a worsening situation.
How has the manufacturing output changed?
Manufacturing output has declined, with the value of the production index dropping by 1.3% year-on-year.
