The Philippine unemployment rate fell sharply in August, but the improvement came with enough fine print to keep the labor market from declaring victory.
Unemployment dropped to 5.3 percent from 6.0 percent in July, bringing the number of jobless Filipinos down to 2.77 million. But that was still well above the 3.9 percent rate, or 2.03 million unemployed, recorded a year earlier.
The labor force participation rate also weakened year-on-year, slipping to 64 percent from 65.1 percent in August 2025. Some 52.56 million Filipinos aged 15 and over were in the labor force, up from 52.13 million a year earlier.
Employment showed a similar mixed picture. The number of employed Filipinos climbed to 49.79 million from 49.21 million in July, but remained below the 50.10 million recorded a year earlier.
And then there is the hours problem.
Average weekly hours worked fell to 39.2 in August from 41 hours a year earlier and 40.6 hours in July. That suggests that getting a job and getting enough work are increasingly two different things.
Underemployment underscored the point. Some 5.90 million employed Filipinos wanted more hours, another job, or a new job with longer hours. The underemployment rate eased to 11.9 percent from July’s 12.9 percent, but remained higher than the 10.7 percent recorded a year earlier.
Agriculture and forestry led annual job creation, adding 532,000 workers, followed by education with 298,000 and accommodation and food services with 195,000. Manufacturing, however, shed 350,000 jobs, while fishing and aquaculture lost 335,000.
Services remained the economy’s biggest employer at 61.7 percent of total jobs, ahead of agriculture at 20.9 percent and industry at 17.3 percent.
For young Filipinos, the picture was no brighter. Youth employment improved from July, but the employment rate of 84.3 percent remained below last year’s 88.3 percent.
August therefore delivered a labor market with a curious contradiction. Unemployment is falling, but so are working hours, while millions of Filipinos still want more work.
The jobs are there. The question is whether there are enough of them, and whether they provide enough work.
