What Contributed to the Philippines' Jobless Rate Decline to 3.9% in August?
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Synopsis
In August, the Philippines experienced a significant drop in unemployment to 3.9%. This article delves into the reasons behind this decline, the sectors affected, and the inflation trends that accompany these economic changes, providing insights from industry experts.
Key Takeaways
- The unemployment rate fell to 3.9 per cent in August.
- About 2.03 million Filipinos are currently jobless.
- Job contractions occurred in the services sector.
- Inflation rose to 1.7 per cent in September.
- Core inflation decreased to 2.6 per cent.
Manila, Oct 8 (NationPress) The unemployment rate in the Philippines saw a decline to 3.9 per cent in August, a notable drop from 5.3 per cent in July, according to the Philippine Statistics Authority (PSA).
During a press briefing, PSA Chief Dennis Mapa revealed that approximately 2.03 million individuals in the country were unemployed in August this year, as reported by Xinhua News Agency.
In August 2024, the unemployment rate stood at 4 per cent.
The Department of Economy, Planning, and Development indicated that the enhanced national unemployment rate in August was somewhat mitigated by job losses in the services sector, especially within wholesale and retail trade.
Additionally, job reductions were noted in public administration and defense, alongside the education sector.
On a related note, the PSA announced that the year-on-year headline inflation rate in the Philippines accelerated to 1.7 per cent in September, up from 1.5 per cent in August, driven by rising transport and food prices.
PSA Chief Dennis Mapa commented that the rise in overall inflation for September was largely attributed to the annual increase in the transport index, which climbed to 1 per cent from a yearly dip of 0.3 per cent in August.
Furthermore, a higher annual increment was observed in the food and non-alcoholic beverages index, rising to 1 per cent in September from 0.9 per cent the previous month.
Mapa noted that the inflation rate for September brings the national average inflation from January to September 2025 to 1.7 per cent. In comparison, the inflation rate for September 2024 was higher at 1.9 per cent.
Core inflation, which excludes selected food and energy items, eased to 2.6 per cent in September 2025, whereas the core inflation rate in September 2024 was recorded at 2.4 per cent.
Point of View
It is crucial to recognize the ongoing shift in the Philippine labor market. The recent drop in unemployment figures is a positive sign, yet the accompanying inflation pressures indicate that challenges persist. Our approach will continue to focus on delivering accurate, timely information that reflects the real economic landscape.
NationPress
08/10/2025
Frequently Asked Questions
What was the unemployment rate in the Philippines in August?
The unemployment rate in the Philippines in August was 3.9 per cent, down from 5.3 per cent in July.
How many Filipinos are currently unemployed?
Approximately 2.03 million Filipinos are currently unemployed as of August.
What sectors experienced job losses?
Job losses were noted in the services sector, particularly in wholesale and retail trade, as well as in public administration and education.
What is the current inflation rate in the Philippines?
The current inflation rate in the Philippines rose to 1.7 per cent in September.
How does core inflation compare to last year?
Core inflation has slowed down to 2.6 per cent in September 2025, compared to 2.4 per cent in September 2024.
