Unemployment rate in the Cordillera Administrative Region (CAR) increase to 2.7 percent in 2025, up from the 2.5 percent recorded the previous year, according to data released by the Philippine Statistics Authority.
The percentage increase reflects a rise in the absolute number of jobless individuals in the region, growing from 21,000 in 2024 to approximately 23,000 in 2025.
Among the region’s provinces and highly urbanized cities, Baguio City reported the highest jobless rate at 4.2 percent.
In contrast, Mountain Province maintained the lowest unemployment rate at 1.5 percent while Benguet (2.3%), Ifugao and Kalinga (2.2% and Mountain Province stayed below the regional average.
The regional job market showed signs of tightening as 7,000 youth workers exited the labor force, driven largely by a downsizing retail sector.
Data from the 2024–2025 Annual Labor Force Survey showed the number of employed young adults aged 15 to 24 dropped from 78,000 to 71,000.
This net loss underscores a contracting urban economy that has forced a significant segment of the student and fresh graduate population to completely withdraw from active job hunting.
This contraction strikes a heavy blow to Baguio City and nearby urban areas serving as major university hubs, where students traditionally rely on part-time service jobs to support their education.
Wholesale and retail trade logged the sharpest employment decline in the region, losing 7,200 jobs to settle at 105,200.
Aldrin Federico Bahit Jr., chief statistical specialist of the PSA Regional Statistical Services Office – CAR, highlighted that wholesale and retail trade, along with the repair of motor vehicles and motorcycles, decreased by 7,200, followed by mining and quarrying at 3,900, and fishing and aquaculture at 2,000.
“We are looking at the top three major industries with the largest decrease in the number of employed persons from 2024 to 2025,” Bahit said.
PSA-CAR Regional Director Villafe Alibuyog explained that financial pressures are forcing some students into the workforce or into the informal economy.
Alibuyog said the survey caught instances of students dropping out because they needed to work, adding that many were considered underemployed because they desired more hours and expressed hope that the government is taking steps to address student dropouts and underemployment by generating higher-quality jobs.
“We are not encouraging na mag out of school youth yung mga bata, kaya lang nakukuha namin sa survey na ito na ang mga estudyante, 15-24 years old they are in the labor force, and there were instances na itong mga bata nag drop out and they need to have a work, at na-consider sila sa underemployed kasi gusto nila magkaroon ng trabaho,” Alibuyog said.
Finding a job remains only part of the hurdle, as the quality of available work for young people continues to be a challenge.
The youth underemployment rate in the region edged up slightly from 12.2 percent in 2024 to 12.3 percent in 2025.
Despite this, the overall estimated number of underemployed youth remained steady at 9,000 individuals for both years, though regional indicators highlight that a significant portion of the active youth labor force is still struggling to secure adequate working hours or sustainable returns. With a report from Clariz Hidalgo/UC Intern
