Phl unemployment dips 5%

The Philippine unemployment rate eased slightly in March to 5.0 percent, though government data released Wednesday suggests that job quality and long-term stability remain significant challenges for the workforce.

According to the Philippine Statistics Authority’s latest Labor Force Survey, the jobless rate dipped from 5.1 percent in February, leaving approximately 2.58 million Filipinos without work.

Despite the month-on-month improvement, the rate remains notably higher than the 3.9 percent recorded in March 2025, indicating that the labor market has yet to fully stabilize at pre-volatility levels.

The labor force participation rate reached 63.3 percent, representing 51.65 million individuals aged 15 and older. While this is an increase from the previous year, it is a slight decline from February’s participation levels.

The country’s total number of employed persons stood at 49.07 million, which, while higher than year-ago levels, fell compared to the previous month.

The employment rate of 95.0 percent continues to lag behind last year’s 96.1 percent, suggesting that job creation is struggling to keep pace with the growing number of people entering the workforce.

Meantime, the services sector continues to be the primary driver of Philippine employment, accounting for 63 percent of all jobs, followed by agriculture and industry.

Growth across these sectors remained uneven, as transportation, administrative services, and professional sectors saw the largest annual increases, reflecting growth in logistics and knowledge-based fields.

Conversely, fishing, manufacturing, and public administration recorded the steepest declines, hampered by structural and environmental issues.

Economists pointed to a rise in underemployment as a sign of continuing vulnerability in the labor market. The underemployment rate — measuring those who have jobs but seek additional hours or work — rose to 12.3 percent, affecting more than 6 million people.