The Philippines recorded a five-percent unemployment rate in March 2026, slightly lower than the previous month but higher than a year earlier, prompting government agencies to step up measures aimed at protecting jobs and supporting displaced workers, particularly overseas Filipinos affected by unrest in the Middle East.
Data from the Philippine Statistics Authority showed that the March figure rose from 3.9 percent in the same period last year, but eased from 5.2 percent in February. The year-to-date unemployment rate now stands at 5.3 percent, which is above the government’s target range of 4 to 5 percent for 2026 to 2028.
Despite the uptick, the country’s jobless rate remains lower than some regional peers such as China at 5.4 percent and India at 5.1 percent, but higher than Malaysia’s 2.9 percent and Vietnam’s 2.2 percent.
The labor force participation rate also improved to 63.3 percent from 62.9 percent a year earlier, with about 1.7 million additional individuals entering the workforce. Underemployment, meanwhile, declined to 12.3 percent from 13.4 percent in March 2025.
In response to the latest labor figures and external pressures, the Department of Economy, Planning, and Development (DEPDev) said it is intensifying efforts to preserve employment and expand social protection programs, particularly for sectors affected by global disruptions, including the conflict in the Middle East.
DEPDev Secretary Arsenio Balisacan said the government is working to ensure continuity in business operations and employment by accelerating targeted interventions such as fuel subsidies and service contracting programs for transport workers, farmers, and fisherfolk.
He also said digital tools, including e-wallet systems and online platforms, will be used to speed up and improve the delivery of assistance.
To ease financial pressures, the government has introduced temporary relief measures such as loan repayment grace periods of up to six months and a one-year deferral for agricultural loans. Financing support has also been expanded through programs like the Department of Labor and Employment’s Adjustment Measures Program, Land Bank’s energy-focused lending facility, and small business assistance from government financing institutions.
For overseas Filipino workers (OFWs) affected by instability in the Middle East, the government has rolled out the Unified Package for Livelihoods, Industry, Food, and Transport (UPLIFT), which provides welfare assistance, legal aid, and coordination services through the Department of Foreign Affairs’ Assistance-to-Nationals program.
The Overseas Workers Welfare Administration has also facilitated the repatriation of displaced workers, with more than 8,000 OFWs returned to the country as of late April. Authorities said tens of thousands of job opportunities are available locally and abroad to support reintegration and re-employment efforts.
Balisacan said the government remains focused on ensuring that affected workers receive sustained assistance, including livelihood programs, skills training, and financial support as they transition back into employment.