Rising Underemployment in the Philippines Highlights Workforce Challenges
- Jennifer Maninang
- Jan 7
- 3 min read
Updated: Jan 8

Increasing Underemployment Among Filipino Workers
The Philippines' underemployment rate has increased to 12.6% from 11.7% in the preceding period according to the Philippine Statistics Authority (PSA). The problem mostly affects workers in industries like agriculture, fishing, and retail, where jobs are frequently seasonal or part-time, leaving employees with insufficient pay and job stability.
Economic Planning Secretary Arsenio Balisacan made repeated efforts to emphasize the need to address underemployment by fostering growth in high-potential industries, modernizing traditional sectors, and aligning workforce skills with industry requirements. This pattern emphasizes how crucial it is to give Filipino workers the necessary skills to meet changing demands in the labor market.
Economic Implications of Underemployment
Productivity and consumer spending were both affected by underemployment. It reduces economic growth. Mismatches between labor supply and demand have affected job hiring in Pampanga. As a result, job opportunities for steady, meaningful work are limited. Industries dependent on informal labor, such as agriculture and fishing, struggle to sustain competitiveness due to limited modernization and unstable employment structures.
However, addressing these challenges could unlock great economic opportunities. This is especially true in high-growth sectors like IT, manufacturing, and renewable energy. The ongoing shift toward these sectors reflects the potential for a more stable and prosperous labor market in the long term.
Effects on Employment Opportunities
A gap between workforce abilities and market demands is highlighted by the increase in underemployment. Many rural workers have jobs that waste their potential. This limits their career growth and financial stability. Certain industries rely on seasonal, informal jobs. This creates uncertainty for many Filipino families.
Opportunities for those who are ready to invest in skill development are presented by the increased demand for qualified workers in developing industries as jobs in 2025 continue to change. Sustainable jobs can result from training in sophisticated manufacturing, renewable energy, and technology. They're more stable.
Changes in Job Hiring Trends
In the Philippines, hiring procedures are changing to combat underemployment. The increasing need for people with both technical and soft skills who can perform dynamic positions is reflected in job hiring in Clark. This change highlights the need for applicants who can navigate hybrid work and new tech.
Traditional sectors, however, continue to rely heavily on informal hiring practices. Without systemic reforms, the gap between stable, high-paying jobs and seasonal or part-time roles may persist. Workers who upskill and align their skills with industry trends are better positioned to find jobs in high-demand fields.
Practical Steps for Filipino Job Seekers
Filipino job seekers should take proactive actions to overcome the issues of underemployment. Gaining certifications or training in programming, digital marketing, or renewable energy might improve one's employment. Searching for jobs in new industries, like IT and advanced manufacturing, may lead to more stable careers.
Job seekers can find more opportunities by using LinkedIn and Kalibrr. These are digital job platforms. They can also build professional networks. To thrive in the changing job market, stay informed of trends. Align your skills with market demands.
Takeaways for Job Seekers
The rise in underemployment in the Philippines calls for adaptation to a changing job market. Filipino workers can overcome challenges and find good jobs. They should focus on skills development, use online platforms, and track in-demand jobs in the Philippines and even in emerging industries. The changing job market offers growth opportunities. But, success requires prep and adaptability to navigate its shifts.
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