Labor rebound: Stronger jobs, brighter outlook

The Philippine labor market steps into 2026 on stronger footing, as unemployment eases and more Filipinos find jobs, even as concerns over job quality and stability continue to linger beneath the gains.

Latest labor data show the unemployment rate slipping to 5.1 percent in February 2026 from 5.8 percent in January, while total employment climbs to about 49.43 million Filipinos.

The uptick points to a steady recovery in hiring across key sectors, despite seasonal fluctuations and uneven conditions in parts of the labor market.

This situation has prompted the Department of Labor and Employment (DoLE) to describe this year’s Labor Day as both a celebration of gains and a reminder of remaining gaps.

Labor markert resilient, but job quality needs improvement “We see continued resilience in the labor market, but we also recognize the need to improve job quality and expand inclusive opportunities,” the agency said as it rolled out nationwide employment and livelihood programs.

Services remain the backbone of employment, accounting for 63.5 percent of jobs, driven by retail, transport, tourism and business services.

Wholesale and retail trade, agriculture and construction continue to anchor hiring, while demand stays strong in Information Technology and Business Process Management (IT-BPM), healthcare, logistics, finance and skilled trades.

Underemployment remains a concern

Despite rising employment figures, underemployment remains a concern, particularly in agriculture and lower-income service work, where many workers seek additional income to meet rising living costs.

Labor participation has also remained steady at between 62.3 percent and 65.8 percent in early 2026, reflecting a large but still unevenly absorbed workforce.

Marking Labor Day 2026 today, the DoLE is deploying a broad package of interventions aimed at both immediate relief and longer-term employment support.

Nationwide job fairs will offer more than 115,000 vacancies across 88 sites, with 1,280 employers participating in industries such as construction, Business Process Outsourcing, manufacturing, retail and food services.

TUPAD program for short-term employment

At the same time, more than 110,000 displaced and disadvantaged workers are set to receive assistance through the government’s Tulong Panghanapbuhay sa Ating Disadvantaged/Displaced Workers (TUPAD) program, which provides short-term emergency employment.

In total, over 111,000 beneficiaries are expected to receive wage support amounting to more than P797 million during the Labor Day rollout, alongside expanded livelihood assistance and food access initiatives such as Kadiwa ng Pangulo sites nationwide.

Transport workers are also among those receiving targeted support, including beneficiaries under the TUPAD Tuloy Pasada program. One driver, Willie Aranilla, said the assistance helps offset daily expenses. “It helps us even a little, especially for family needs and fuel,” he said.

Emergency work and livelihood support

The DoLE has also coordinated with other agencies to extend emergency work and livelihood support to around 10,000 farmers affected by El Niño, focusing on irrigation repair and climate-resilient projects.

While the labor market continues to expand, government and labor stakeholders alike are pushing a shift in focus from job quantity to job quality, aiming to build more stable, better-paying, and future-ready employment opportunities across the country.