The country’s unemployment rate improved to 5.3 percent in August 2026, down from 6 percent recorded in July, according to preliminary official labor force data released by the Philippine Statistics Authority (PSA).
Despite the month-on-month drop, government statistics show that the August figure remained higher than the 3.9 percent unemployment rate reported in the same month last year.
Data from the PSA indicated that the absolute number of unemployed Filipinos stood at 2.77 million in August, declining from 3.14 million logged in July but exceeding the 2.03 million jobless individuals recorded in August 2025.
Concurrently, the national employment rate improved to 94.7 percent, rising from 94.0 percent in July, though falling short of the 96.1 percent employment level posted a year earlier.
In terms of overall employment volume, 49.79 million Filipinos were gainfully employed during the survey period, reflecting an increase from 49.21 million in July but down from 50.10 million reported in August 2025.
The broad services sector continued to serve as the main driver of domestic employment, absorbing 61.7 percent of the total employed workforce. The agriculture sector accounted for 20.9 percent, while the industry sector comprised 17.3 percent.
Labor force participation rate (LFPR) among citizens aged 15 and above rose to 64 percent in August, up from 63.6 percent in July, though remaining below the 65.1 percent participation rate logged in August 2025.
The August LFPR expanded the active labor force pool to 52.56 million Filipinos, higher than the 52.36 million registered in July and above the 52.13 million recorded a year ago.
Despite the reduction in overall unemployment, official indicators highlighted ongoing challenges regarding job quality and worker underutilization, with the underemployment rate recorded at 11.9 percent in August.
While underemployment improved from the 12.9 percent rate logged in July, it remained above the 10.7 percent level registered in August 2025.
In real terms, approximately 5.90 million employed Filipinos expressed a desire to work additional hours in their current positions, secure a secondary job, or transition to a new job offering longer working hours.
Statistical breakdowns revealed that of the total underemployed population, 64.5 percent worked fewer than 40 hours per week, including those temporarily without work during the reference period, while the remaining 35.5 percent worked 40 hours or more per week.