The Philippines’ unemployment rate climbed to 4.8 percent in May, the highest in a year, as fewer Filipinos found work despite a modest month-on-month increase in employment, underscoring persistent cracks in the labor market.
Data released by the Philippine Statistics Authority (PSA) showed the jobless rate inched up from 4.7 percent in April and was markedly higher than 3.9 percent in May 2025, pushing the number of unemployed Filipinos to 2.50 million from 2.41 million a month earlier and 2.03 million a year ago.
The higher unemployment rate came as labor force participation slipped to 63.8 percent from 65.8 percent a year earlier, indicating fewer Filipinos either had jobs or were actively looking for work. The labor force totaled 52.13 million, slightly below the year-earlier level but higher than in April.
Employment conditions also softened. The employment rate eased to 95.2 percent from 96.1 percent a year ago, although it was broadly steady from April’s 95.3 percent. The number of employed Filipinos reached 49.63 million, up from 48.89 million in April but still below the 50.29 million recorded a year earlier.
The underemployment rate fell to 12.2 percent from 15.2 percent in April and 13.1 percent a year earlier, but the figures still point to lingering weaknesses in job quality. Around 6.04 million employed Filipinos continued to seek additional work, longer hours, or better-paying jobs, highlighting a persistent mismatch between available employment and workers’ income and livelihood needs.
The PSA said employment gains came from administrative and support services, mining, health services, fishing, and construction, while agriculture and forestry suffered the largest annual job losses, shedding 905,000 positions. Other significant declines were recorded in other service activities, public administration, wholesale and retail trade, and professional services.
Taken together, the latest figures suggest the labor market remains under pressure, with rising unemployment and softer employment offsetting improvements in underemployment, as the economy continues to struggle to generate enough quality jobs for a growing workforce.
