The Philippines' unemployment rate dropped to 3.9% in August from 5.3% the previous month, as industries recovered from typhoons in July.

The latest figure was also lower than the unemployment rate of 4.0% in August 2024, according to data from the Philippine Statistics Authority (PSA).

In terms of magnitude, the number of unemployed individuals last month was 2.0 million, down from 2.6 million in July and 2.1 million in August 2024.

The improvement in unemployment was due to the recovery of industries affected by a series of typhoons in July, which particularly weighed on agriculture as well as retail trade and construction, Manila Bulletin cited Dennis Mapa, chief of the PSA, as saying.

"In a way, the job losses in July were only temporary, as many of those who lost their jobs that month were from the same industries that have now returned," Mapa added.

The agriculture and forestry sector, which previously saw job losses due to flooding and typhoons, added 1.4 million jobs in August.

Department of Labor and Employment (DOLE) Secretary Bienvenido Laguesma said the decline in unemployment reflects the economy's "aggressive and successful recovery" amid a strong drive to create more jobs across the country, The Philippine Daily Inquirer reported.

Also, the DOLE said more workers transitioned from "insufficient and inadequate part-time work to substantially more permanent employment."

The underemployment rate fell to 10.7% in August, compared with 14.8% the previous month and 11.2% last year.

Underemployed persons are those with jobs who express the desire to have additional work hours, an additional job or a new job with longer work hours.

The employment rate in August was estimated at 96.1%, higher than 94.7% in July and 96.0% in August 2024.