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BUSINESS

2.5 million Filipinos unemployed; jobless rate at 4.8%

Mico Virata·8 July 2026, 9:46 am·1 MIN READ

Jeepney drivers line up to receive a P5,000 fuel subsidy at Heroes Park in Manila on Wednesday, 25 March 2026, as part of government efforts to assist transport workers affected by surging oil prices caused by conflict in the Middle East.

Courtesy of John Carlo Magallon

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    The number of unemployed Filipinos rose to 2.50 million in May as the country’s jobless rate climbed to 4.8 percent, with a sharp decline in agricultural employment highlighting the impact of adverse weather conditions on the labor market.

    Data from the Philippine Statistics Authority (PSA) showed the unemployment rate edged up from 4.7 percent in April and was also higher than the 3.9 percent recorded in May last year. 

    Despite the increase in unemployment, total employment reached 49.63 million in May, higher than the 48.89 million recorded in April but lower than the 50.29 million employed a year earlier.

    National Statistician Claire Dennis S. Mapa said agriculture and forestry posted the largest year-on-year decline in employment, with 905,000 fewer workers compared with May 2025.

    “We saw in the Labor Force Survey that there was a substantial year-on-year decline in the number of employed persons in agriculture and forestry. We believe this was basically the impact of the weather conditions in May 2026. As we know, the country was already experiencing the effects of El Niño,” Mapa said.

    The services sector remained the country’s largest employer, accounting for 61.8 percent of total employment, followed by agriculture at 19.9 percent and industry at 18.3 percent.

    Among industries, administrative and support service activities posted the biggest annual employment gain at 329,000 workers, followed by mining and quarrying with 184,000, human health and social work with 173,000, fishing and aquaculture with 170,000, and construction with 168,000.

    Meanwhile, aside from agriculture and forestry, the biggest annual employment declines were recorded in other service activities, public administration and defense, wholesale and retail trade, and professional, scientific and technical activities.

    The labor force participation rate stood at 63.8 percent, equivalent to 52.13 million Filipinos aged 15 years and above who were either employed or actively seeking work.

    The PSA also reported an improvement in job quality as the underemployment rate fell to 12.2 percent from 15.2 percent in April and 13.1 percent a year earlier. Around 6.04 million employed Filipinos said they wanted additional working hours or better-paying jobs.

    Average weekly hours worked also increased to 41.1 hours from 40.2 hours in April, indicating longer working hours for those with jobs.

    Youth employment remained under pressure. The employment rate among Filipinos aged 15 to 24 stood at 87.6 percent, lower than the 91.5 percent posted a year earlier, while around 787,000 employed youth were classified as underemployed.

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