How COVID-19 Affected Jobs and Industries in the Philippines in 2025
The COVID-19 pandemic reshaped the Philippine labor market and industry landscape in profound ways. Even as vaccination rates climbed and restrictions eased, many sectors continued to feel pandemic aftershocks in 2025. Across services, agriculture, and industry, millions of Filipino workers faced job losses, shifting roles, and new challenges.
Unemployment Trends in 2025
By August 2025, the national unemployment rate stood at 3.9%, down from 5.3% in July but still above pre-pandemic lows. Approximately 2.03 million Filipinos remained without work, while underemployment persisted at 14.8%, indicating many were seeking additional hours or second jobs.
Labor force participation rose to 65.1%, and the average workweek lengthened to 41.0 hours, reflecting heavier workloads for those employed.
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Key Unemployment Indicators
| Indicator | Value (July 2025) |
|---|---|
| Unemployment Rate | 5.3% |
| Unemployment Rate (Aug 2025) | 3.9% |
| Underemployment Rate | 14.8% |
| Labor Force Participation | 65.1% |
| Average Workweek | 41.0 hours |
Sectoral Impacts
COVID-19’s effects varied across industries. Some sectors rebounded strongly, while others struggled with disrupted supply chains, reduced demand, and climate vulnerabilities.
Services Sector
Agriculture Sector
| Metric | Change (July 2025 vs. July 2024) |
|---|---|
| Agricultural Employment Loss | –974,000 workers |
| Total Agriculture Jobs Lost | –1.38 million |
Typhoons and monsoon rains worsened pandemic damage, driving many rural laborers into informal construction work with unstable wages and no benefits.
Industry Sector
Scarring Effects on Employment Quality
An AMRO report found that 10.9 million Filipino workers experienced earnings reduction, lost hours, or job loss due to the pandemic. Women comprised 38% of at-risk jobs. Gig work and informal sector roles expanded but offered little security or benefits.
- Underemployment remained a challenge for 6.80 million Filipinos seeking more work.
- Short-term contracts and crowded workplaces increased health risks for many factory and service workers.
Government and International Support Programs
To mitigate COVID-19’s impact, several initiatives were launched:
- National Employment Recovery Strategy (NERS) (2021–2022)
- Targeted creation of 1.2 million sustainable jobs through skills training, livelihood grants, and support for women’s employment.
- ADB Post-COVID Business and Employment Recovery Program
- Policy-based loans to expand active labor market programs, address skills mismatches, and liberalize investment frameworks for job-rich growth.
- Economic Stimulus Act (proposed PHP 1.3 trillion)
- Funding for wage subsidies, MSME assistance, and COVID-19 testing through 2024–2025.
Long-Term Industry Transformation
COVID-19 accelerated digital adoption and hybrid work models:
- 45% of knowledge-based employees worked partly or fully remotely by August 2025, up from 12% in 2019.
- Manufacturing firms invested in automation, displacing some manual jobs but creating roles for technical operators and maintenance staff.
- The Philippine Development Plan (2023–2028) emphasizes innovation-driven growth to transition from pandemic recovery to long-term competitiveness.
Lessons Learned and Recommendations
Key insights from the pandemic’s impact on the labor market include:
| Focus Area | Recommendation |
|---|---|
| Skills Diversification | Expand digital and technical training programs to prepare workers for emerging roles |
| Social Safety Nets | Strengthen unemployment insurance and targeted support for informal sector workers |
| Climate Resilience | Integrate disaster risk reduction into agricultural and infrastructure planning |
| MSME Support | Ensure sustained access to finance and technical assistance for small businesses |
Outlook
By late 2025, the Philippine labor market showed signs of recovery, with unemployment approaching pre-pandemic levels and growth in construction and digital services. However, underemployment, gender disparities, and the vulnerability of informal workers remain persistent challenges. A balanced approach combining economic stimulus, labor reform, digital upskilling, and climate resilience is vital to build a more inclusive and resilient job market for all Filipinos.
