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Palace Links May Jobless Rise to Middle East, Oil Crisis

  • Jade Reyes
  • Nation
  • July 8, 2026

Malacañang on Wednesday said the rise in unemployment in May was already expected, citing the effects of the Middle East crisis and global oil pressures on local jobs and key industries.

At a Palace press briefing, Press Officer Claire Castro said the government had anticipated weaker employment figures as higher fuel costs affected several sectors, including agriculture and transport.

“Nakita po na nagkaroon po talaga ng pagbaba sa employment rate dahil ito po naman ay talagang inaasahan dahil nga po naging reason ang global oil crisis,” Castro said.

A decline in the employment rate was observed, Castro said, adding that the development had been expected because of the impact of the global oil situation.

She said unrest in the Middle East also had a significant effect on Filipino workers and households, prompting the government to continue providing assistance to vulnerable sectors.

“Talaga pong malaki rin po ang naging epekto ng naging kaguluhan sa Middle East sa ating mga kababayan kaya nga po tuluy-tuloy ang pagtulong at pagbibigay ng ayuda sa ating mga kababayan dahil inaasahan po talaga na maaapektuhan ang mga employment ng ating mga kababayan,” Castro said.

The Philippine Statistics Authority reported that around 2.5 million Filipinos were unemployed in May, higher than the 2.03 million recorded in May 2025 and the 2.41 million posted in April 2026.

The employment rate stood at 95.2 percent, equivalent to 49.63 million employed Filipinos. This was slightly lower than the 95.3 percent recorded in April and below the 96.1 percent posted in May last year.

Castro said the government was not ignoring the situation, stressing that concerned agencies were closely monitoring the labor market while implementing support measures.

“Hindi naman po ito pinapabayaan. Lagi po itong minu-monitor ng ahensiya ng gobyerno at marami pong ginagawa dahil nga po, although sinasabi natin na sa ngayon, ito ‘yung nararamdaman because of the oil crisis, nandoon pa rin po ‘yung interventions ng government,” she said.

She said assistance would continue for affected workers and families, including interventions meant to ease fuel-related burdens on the transport sector, farmers, and fisherfolk.

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