MANILA, Philippines —  The country’s jobless rate rose to a six-month high in January as the seasonal demand for workers during the Christmas holidays faded.

Deputy National Statistician Divina Gracia del Prado said in a press conference yesterday that preliminary results of the Philippine Statistics Authority (PSA)’s Labor Force Survey showed the January unemployment rate at 4.3 percent. This is up from the previous month’s 3.1 percent, but lower than the 4.5 percent in January 2024.

The January jobless rate is the highest level since the 4.7 percent registered in July last year.

In terms of magnitude, the number of jobless Filipinos reached 2.16 million in January, higher than the previous month’s 1.63 million, but unchanged from January 2024.

The employment rate declined to 95.7 percent in January this year from 96.9 percent in December, but went up from 95.5 percent in January last year.

There were 48.49 million employed Filipinos in January, lower than the 50.19 million in December last year, but higher than the 45.90 million in January 2024.

“The usual trend, if you look at the series, is that the number of employed shoots up in December, and then come January, it goes down because of the lessened demand for workers,” Del Prado said.

She said the industries need more workers during the Christmas season.

PSA data showed that the underemployment rate climbed to 13.3 percent in January from the previous month’s 10.9 percent, but declined from 13.7 percent in the same month last year.

There were 6.47 million underemployed Filipinos or those looking for additional hours of work or an additional job in January, higher than the 5.48 million in December last year and the 6.30 million in January 2024.

The labor force participation rate declined to 63.9 percent in January from the previous month’s 65.1 percent, but went up from 61.1 percent in the same month in 2024.

National Economic and Development Authority Secretary Arsenio Balisacan said the government is committed to creating an enabling business environment, while equipping the workforce with skills to meet industry demand.

He said “our strategy remains clear: to sustain job creation by fostering a dynamic and investment-friendly economy while preparing our workforce for high-growth and emerging industries that offer high-quality, well-paying jobs.”

He said initiatives such as the Enterprise-Based Education and Training administered by the Technical Education and Skills Development Authority would help ensure that education and training programs are in line with labor market requirements.

The CREATE MORE Act, which seeks to create a more favorable investment climate for businesses by streamlining fiscal incentive policies and clarifying investment rules, is also seen supporting the goal of job creation.

“By cutting red tape and clarifying ambiguities in investment policies, CREATE MORE aims to encourage local and foreign enterprises to expand their operations in the Philippines. This thrust, in turn, is expected to create additional employment opportunities and support the broader goal of developing a highly skilled, future-ready workforce,” he said.

Given the importance of a resilient agriculture sector in addressing vulnerable employment, he said the government would continue strengthening and modernizing its early warning systems to enhance disaster preparedness by utilizing artificial intelligence (AI) for improved prediction models.

“To further support growth and investment in the IT-BPM (information technology – business process management) sector, the government, working closely with industry players, will promote the reskilling and upskilling of the workforce to meet the industry’s advanced skill requirements amidst AI integration,” Balisacan said.

Employers Confederation of the Philippines president Sergio Ortiz-Luis Jr. said employment may go up this year, but not that much.

“It depends on how [US President Donald] Trump will treat our market. We cannot predict what he will do,” he said.