When strong rains and typhoons battered the Philippines in July 2025, the damage wasn’t just to crops and roads — it also shook the country’s job market. According to the Philippine Statistics Authority (PSA), unemployment jumped to 5.3 percent, the highest in three years.
That means 2.59 million Filipinos were left without work, a sharp increase compared with 1.95 million in June and 2.37 million in July 2024.
Weather’s Heavy Toll on Jobs
National Statistician Dennis Mapa explained that July’s typhoons and the intensified southwest monsoon hit rural livelihoods especially hard. The agriculture and forestry sector lost 1.4 million jobs, while fishing and aquaculture added only about 173,000.
The Department of Economy, Planning and Development (DEPDev) said widespread flooding, landslides, and safety risks led to work suspensions across Luzon. Wholesale and retail trade also saw an estimated 897,000 jobs lost as many businesses paused operations.
Labor Market at a Glance
- Unemployment rate: 5.3% (highest since June 2022)
- Underemployment: Climbed to 14.8%, or 6.8 million people, up from 11.4% in June
- Employment rate: Dropped to 94.7%, from 96.3% the previous month
- Labor force participation: Fell to 60.7%, meaning only 48.64 million Filipinos were actively working or seeking work, down from 52.42 million in June
Services continued to dominate employment at 62.8%, followed by industry (18.7%) and agriculture (18.5%).
Government’s Response
Socioeconomic Planning Secretary Arsenio Balisacan said the numbers highlight the urgency of preparing the workforce for climate risks and economic shocks.
“We need to modernize our sectors so they can withstand disruptions, whether from climate change or new technology,” he said.
He also stressed expanding training, improving employability, and strengthening partnerships to “future-proof” Filipino workers.
Possible Rate Cuts Ahead
The weak labor figures may also influence monetary policy. Chinabank Research noted that slower job growth could push the Bangko Sentral ng Pilipinas (BSP) to cut interest rates further.
The BSP has already lowered rates by 150 basis points since August 2024, bringing its benchmark down to 5.0 percent. Analysts expect at least one more cut this year to support economic activity.
Still, Chinabank added that better weather and the upcoming holiday season could help boost hiring in the coming months.
Key Takeaway
The July job losses show how vulnerable the Philippine economy remains to extreme weather. While relief may come with seasonal demand and policy support, experts agree that long-term solutions — especially climate resilience and workforce modernization — are critical.
