For years, recent headlines in the Philippines have proudly proclaimed falling unemployment rates, statistics showing jobless figures at historic lows, combined with average unemployment around 3.8 percent in 2024 from 10.3 percent in 2020.

Yet as an educator who has talked to students and fresh graduates, there exists a bigger truth behind these numbers: having a job no longer means earning a living, and a college diploma no longer guarantees a decent one.

In November 2025, the Philippine Statistics Authority (PSA) reported unemployment to 4.4 percent easing from 5 percent in October 2025. This meant that 2.25 million workers were jobless that month. Underemployment rate is at 10.4 percent, with 5.11 million workers already have jobs but still looking for extra jobs or extra work hours. These figures signal that the quality of jobs being created is weak and for many Filipino college graduates, the promise of stable, meaningful employment remains elusive.

National employment numbers may suggest improvement, but a deeper look reveals troubling trends. PSA surveys show that even as unemployment dips or fluctuates around 3–4 percent, underemployment remains persistently high. Millions of Filipinos are technically “employed” yet still lack sufficient income.

This nuance is critical. It underscores a labor market that offers jobs without security or livable income, a condition often invisible in broad unemployment percentages but felt keenly in households across the country.

College Graduates in Minimum-Wage Jobs or Out of Work

The disconnect between education and decent employment has grown sharper. Independent analyses citing PSA data and labor studies show that a significant share of unemployed individuals are new labor market entrants, including recent college graduates. A December 2023 SWS survey found that adult joblessness was highest among college graduates at 22.1 percent.

In June 2025, Labor Force Survey by the Department of Labor and Employment showed a 2.6-percent-point increase in the number of unemployed college graduates from 35.6 percent in December 2024. 

CHED Chairperson Shirley Agrupis said that this “troubling increase reveals that our most educated citizens — those who have invested significant time and resources into higher education — are encountering growing difficulties in finding employment.”

At national job fairs, only a small fraction of applicants’ secure positions and many of these are low-skill jobs that do not require a college degree. As a result, graduates are increasingly found in service crew, sales, clerical, and basic office roles jobs often paid at or near minimum wage.

Minimum Wage: Barely Enough to Survive

Data from the October 2022 Labor Force survey of the PSA shows that there are 47.1 million employed Filipinos, of this number 7.3 million can be categorized as minimum wage earners or those with a basic pay per day that is on or below the current regional minimum wage.

Though there are recent wage hikes in 14 regions, adjustments ranging from 20 to 100 pesos, the minimum wage in the Philippines remains far below what families realistically require surviving.

Studies by IBON Foundation and other labor researchers show that basic wages in many regions fall below the poverty threshold, leaving workers unable to cover food, housing, education, and healthcare.

Even employed graduates, many of whom have taken on debt to earn a degree struggle to build savings or invest in their future. The paradox of overeducated workers in low-wage jobs is both wasteful and socially destabilizing.

Which Programs Face the Greatest Challenge?

Certain academic programs are particularly prone to oversupply. Fields such as business administration, education, criminology, nursing, and general arts and humanities consistently produce large numbers of graduates, often exceeding available professional positions.

A 2023 survey by the Philippines Institute for Development Studies (PIDS) predicted an oversupply of information technology graduates by 2025-exceeding demand by 171,960 positions. 

However, there will be shortages of supply for STEM field positions.

Many education graduates compete for limited teaching posts. Business and management graduates frequently enter sales or clerical work. Criminology graduates face limited law enforcement openings. Nursing graduates without overseas opportunities often turn to unrelated service work. Humanities graduates commonly struggle to find specialized roles outside academe.

Education is meant to be a pathway out of poverty. When graduates are trapped in minimum-wage or unstable work, the nation loses productivity, innovation, and confidence in social mobility. Many young professionals delay families, migration decisions, and investments in skills weakening long-term development.

Reversing this trend requires coordinated action.

First, curricula must align with industry needs through stronger partnerships and internships. Second, minimum wage policies must reflect real living costs. Third, government must prioritize high-value job creation over short-term employment figures. I echo the call of CHED for prioritizing innovation and equity to make education a guarantee for sustainable employment. Finally, students must receive better career guidance before choosing degree programs.

A declining unemployment rate can make good headlines. But if it hides stagnating wages and wasted talent, then progress is illusory. A college diploma should open doors, not put young Filipinos to survival mode.

The views and opinion of the writer do not necessarily reflect those of the publication.