Unemployment drops, but struggles remain: DOLE-7 urges skills upgrade
Applicants try their luck at a job fair in May 2017 at the SM Cebu mall. Cebu’s economy continues to grow and with it an increase in employment in the province and the region. | CDN FILE PHOTO
CEBU CITY, Philippines — While the country’s latest labor force data shows a slight drop in unemployment, many Filipino workers are still struggling to make ends meet, with underemployment and low job quality remain persistent challenges.
In an exclusive interview with CDN Digital, Lawyer Roy Buenafe, the regional director of the Department of Labor and Employment in Central Visayas (DOLE-7), acknowledged that while the unemployment rate in Central Visayas has improved, the economic reality for many remains difficult.
“It’s good that our unemployment rate has dropped slightly, but it doesn’t necessarily mean our economy is already doing well,” Buenafe said.
“We also have to look at underemployment. Many employees now need extra income because of the high cost of daily living, especially for our ordinary workers — transportation, market prices, and basic needs are still rising,” he added.
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The Philippine Statistics Authority (PSA) reported on March 6 that the national unemployment rate eased to 4.3 percent in January 2025, a slight improvement from 4.5 percent in January 2024. This translates to 2.16 million Filipinos without jobs, a decrease from 2.18 million in the same period last year.
However, despite this improvement, 6.47 million Filipinos, or 13.3 percent of the labor force, remain underemployed, meaning they have jobs but are actively seeking additional work or longer hours to survive financially.
Although this figure is slightly lower than the 13.7 percent underemployment rate recorded in January 2024, it still points to a deeper, structural issue within the job market: employment does not always guarantee financial security.
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Buenafe warned that a low unemployment rate alone should not be seen as a sign of economic success.
“We cannot say that even if unemployment is low, our economy is already strong. We still need to be vigilant, especially here in Central Visayas,” he said.
More workers taking extra jobs, longer hours
Data from the PSA also shows worrying trends about work hours. The average weekly hours worked dropped from 42.2 hours in January 2024 to 40.4 hours in January 2025, indicating fewer opportunities for full-time employment or overtime pay.
Alarmingly, the number of Filipinos reporting only one hour of work per week increased to 59,000 this year from 34,000 last year, highlighting the rise of unstable, irregular work arrangements.
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Economists have also raised concerns that while more Filipinos are getting jobs, many of these are low-paying, contractual, or informal jobs that often lack security, social benefits, and career advancement opportunities.A recent Inquirer report listed the top high-paying and in-demand jobs in the Philippines this 2025, such as Sales Campaign Manager, Lead Generation Specialist, and SaaS Product Manager, with salaries ranging from P30,000 to P180,000 per month.
However, these positions require specialized skills and experience, highlighting the widening gap between job seekers’ qualifications and market demands.
Dole calls for skills upgrading, industry shift
To address the mismatch between available jobs and the skills of the workforce, Buenafe said the agency would be pushing for stronger intervention measures.
“We really need intervention. We must upskill and upgrade our workforce. Many high-paying jobs today are difficult to fill because we lack qualified candidates…We cannot just focus on increasing employment numbers. We have to ensure the quality of jobs improves too,” Buenafe explained.
Buenafe emphasized that the Philippine economy would be shifting toward the 5th Industrial Revolution, which would demand workers with more advanced technical and digital skills.
He also stressed the important role of the education sector in reshaping the workforce to meet these new industry demands.
“The academe plays a very important role. TESDA, which is under DOLE, has aggressive programs to address job mismatch — a problem we’ve faced for a long time…We may not solve everything immediately, but at least we are working on preventing bigger problems in the future,” he said.
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