Manila : The Philippines experienced a notable increase in unemployment in July 2025, with the jobless rate rising to 5.3 per cent from 3.7 per cent in June, the Philippine Statistics Authority (PSA) reported on Wednesday. An estimated 2.59 million Filipinos were without work, higher than the 2.38 million unemployed in July last year. In July 2024, the unemployment rate had stood at 4.7 per cent.
PSA Chief Dennis Mapa said that the increase in unemployment coincided with a slowdown in manufacturing, the country’s key economic sector. The value of the production index (VaPI) for manufacturing declined by 1.3 per cent year-on-year in July, reversing the 1.2 per cent growth seen in June. The decline contrasts sharply with the 6.6 per cent VaPI growth reported in July 2024.
The slowdown was primarily driven by slower production in the manufacture of food products, which carries the highest weight in VaPI calculations. Of the 22 industry divisions in manufacturing, 10 posted annual declines, while nine divisions recorded yearly increases in their value of production index (VoPI).
The VoPI itself fell by 1.1 per cent in July, following a 1.6 per cent rise in June. Reduced output was observed in food products, computer, electronic and optical products, and transport equipment. Analysts noted that the combination of rising unemployment and slower manufacturing output could affect domestic consumption, economic momentum, and overall growth in the coming months.
The PSA highlighted that these developments require close monitoring, as both joblessness and weaker industrial output can impact household incomes, spending power, and investor confidence in the Philippines.
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