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Labor Reform Body Pushed As Jobless Filipinos Rise To 2.5M

  • Joseph Tan
  • Business & Finance
  • July 10, 2026

Senate Minority Leader Alan Peter Cayetano has renewed his call for the creation of a long-term labor reform body after the number of unemployed Filipinos rose to 2.5 million in May.

Data from the Philippine Statistics Authority showed that the unemployment rate increased slightly to 4.8 percent in May from 4.7 percent in April. This pushed the number of jobless Filipinos up from 2.41 million to 2.5 million.

The underemployment rate, however, improved to 12.2 percent from 15.2 percent in April, indicating fewer employed Filipinos were looking for additional work hours or better jobs.

The latest labor figures came as Cayetano continued to push for the creation of the Executive-Legislative Labor Commission, or LabCom, a priority measure he filed in July 2025.

The proposed commission seeks to develop long-term labor policies on wages, employment, worker protection, labor justice, and other concerns affecting Filipino workers.

Cayetano said the body would bring together representatives from Congress, the executive branch, micro, small and medium enterprises, trade and industry groups, labor organizations, and the migrant and informal sectors.

“This body will convene representatives from Congress, the Executive branch, Micro-, Small and Medium-sized Enterprises, trade and industry, and the labor sector, including the migrant and informal sectors, to collectively pursue a sustainable solution to the living wage issue,” Cayetano said when he filed the measure.

Cayetano said improving employment numbers would not be enough if Filipino workers continue to face low wages, wide income gaps, and slow access to labor justice.

During Senate deliberations on the proposed 2026 budget of the Department of Labor and Employment, Cayetano said many workers are discouraged from pursuing labor cases because proceedings take too long and they lose income while waiting for resolution.

“Marami talagang nawawalan ng gana na maghabol kasi walang kinikita habang umaandar ang kaso,” he said.

The proposed LabCom aims to address these structural problems through coordinated, evidence-based reforms, including industry-specific wage policies instead of a one-size-fits-all approach.

“The LabCom will not talk in generalities. It will come out industry specific,” Cayetano said.

He said the commission’s broader goal is to restore dignity to work, improve labor conditions, and create opportunities that would allow more Filipinos to build stable lives in the country.

“Not only will this bring us closer to realizing the just and humane society envisioned by our Constitution, it will also help end the endless stream of Filipinos who are forced to leave their homes and families for what they hope would be greener economic pastures,” Cayetano said.

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