The country’s unemployment rate rose to 6 percent in July 2026, up from 5.3 percent recorded during the same period last year, according to the latest Labor Force Survey released by the Philippine Statistics Authority (PSA).
Data from the PSA revealed that the number of unemployed Filipinos increased despite overall employment expansion and a growing labor pool.
The total labor force expanded to 52.36 million, while total employment reached 49.21 million. While the economy added jobs over the year, the uptick in the unemployment rate highlights that domestic job creation was insufficient to fully absorb the influx of new workers entering the market.
Addressing the latest figures, Department of Economy, Planning and Development (DEPDev) Secretary Arsenio Balisacan noted that the results present a dual narrative for the local economy.
“These figures show both progress and challenge,” Balisacan said. He emphasized that higher labor participation underscores the urgent need to attract more foreign and domestic investments, particularly in sectors capable of generating high-quality, long-term employment.
Balisacan added that continuously improving the ease of doing business across the country will be critical to boosting investor confidence and expanding job opportunities.
Despite the rise in headline unemployment, the government highlighted notable improvements in other labor market metrics.
The underemployment rate, which measures employed individuals seeking additional working hours or secondary jobs, fell to 12.9 percent in July 2026, down from 14.8 percent in July 2025.
Additionally, the proportion of youth not in education, employment, or training (NEET) dropped to 15.2 percent from 15.9 percent year-on-year, signaling gains in youth engagement.
To address remaining labor gaps, DEPDev announced plans to prioritize targeted assistance for micro, small, and medium enterprises (MSMEs), attract capital into high-growth industries, and enhance climate risk resilience in vulnerable sectors.
The government is also scaling up digital upskilling initiatives and formal employment pathways, including the expansion of the AI-enabled eTrabaho platform and the Technical Education and Skills Development Authority (TESDA) Skills Passport. These tools aim to connect jobseekers directly with industry training and verified employment opportunities.
Further interventions will focus on linking social welfare programs directly to technical training and job placement, alongside supporting MSMEs in adopting technology to enhance operational productivity and financing access.
Looking ahead, the government will implement reforms under the National Education and Workforce Development Plan 2026–2035, which includes aligning local skills certifications with ASEAN mutual recognition framework agreements to boost regional competitiveness.
“Long-term employment resilience depends on our ability to prepare for change rather than react to it,” Balisacan stressed, reiterating the importance of building an adaptable workforce amid evolving technological, economic and environmental shifts.