Finance Secretary Ralph G. Recto underscored that the country’s robust labor market in February 2025 signals stronger domestic demand ahead, which bodes well for shielding the Philippine economy from global uncertainties and brewing trade wars.

The Philippine labor force participation rate (LFPR) increased to 64.5% in February 2025, up from 63.9% in the previous month. The unemployment rate also improved to 3.8% from 4.3% in January 2025.

The underemployment rate likewise declined to 10.1% from 13.3% in January 2025 as more workers were engaged in full-time employment and middle- and high-skilled occupations. Almost two-thirds of the workforce were wage and salary workers, indicating a growing and expanding middle class.

“This is a very encouraging development. A strong and growing workforce means rising incomes, greater spending power, and sustained job creation. This fuels consumer demand and pushes our economy forward,” the Finance Chief said.

“We must continue to boost domestic demand, especially in these uncertain times marked by brewing trade wars. A strong and resilient domestic market is our best defense,” he added.

The services sector continued to employ the majority of the working population in February (61.6% share), followed by agriculture (20.1%) and industry (18.3%).

Accommodation and food service activities led the sub-sectors with the highest annual increase in employment for the month, reflecting growing consumer activity as inflation continues to ease.

To further enhance the country’s labor market situation, the government is actively pursuing strategic interventions aimed at securing job-generating investments, fostering a dynamic and innovative business environment, and diversifying the drivers of economic growth.

This includes the accelerated implementation of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act to attract foreign investors looking to relocate their companies in response to the shifting global trade policies. This will, in turn, help generate more quality jobs for Filipinos.

Additionally, partnerships with the private sector will be strengthened to ensure that training programs are aligned with industry needs, boosting workers’ skills and productivity through the Enterprise-Based Education and Training (EBET) Framework.