Unemployment inched upward to record 6.4% in 3Q 2025, up 0.3 percentage points from 2Q, reversing a downward streak that lasted three consecutive quarters, according to data from state statistics agency Capmas. The figure represents a 0.3 percentage points dip from the 6.7% recorded in 3Q 2024.

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The labor force continued to grow, expanding 3.3% q-o-q in 3Q to 34.7 mn people, as the number of employed individuals rose by 939k and the number of those unemployed went up by 175k.

The gender gap persists: Male unemployment rose to 4.0% during the period, compared to 3.5% in 2Q 2025, but it was down 0.2 percentage points y-o-y. Female unemployment eased to 15% from 15.8% in the previous quarter and 18.2% in 3Q 2024.

Urban unemployment increased to 10.1% in 3Q 2025 from 9.7% in 2Q 2025 — but was unchanged from the same period last year. Rural unemployment rose 0.3 percentage points q-o-q to 3.6% in 3Q, but it was down 0.4 percentage points y-o-y.

A dip in self-employment as salaried roles increase: Salaried workers accounted for 68.8% of total employment in 3Q 2025, up 0.7 percentage points q-o-q and down 3.9 percentage points y-o-y. Meanwhile, the self-employed made up 19.2%, down 4.0 percentage points q-o-q and 0.4 percentage points y-o-y. In addition, business owners made up 5.0% of those employed, up from 4.0% in 2Q 2025, and 3.1% a year earlier, while those working for family businesses rose to 7.0%, from 4.7% in 2Q 2025 and from 4.6% a year ago.

REMEMBER- The unemployment rate excludes working-age people not seeking work. The labor force participation rate — which counts everyone aged 15-64 either in work or actively looking for work — stood at 46.9% in 3Q 2025, compared to 45.5% in 2Q 2025, and 44.4% in 3Q 2024.

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