The Philippine labor market took a sharper turn in July as unemployment climbed to 6.0 percent, even as more Filipinos entered the workforce, pointing to a widening gap between the number of people seeking jobs and available opportunities.
The Philippine Statistics Authority said Tuesday that the unemployment rate rose from 5.3 percent in July 2025 and 4.7 percent in April. The number of unemployed Filipinos reached 3.14 million, up from 2.59 million a year earlier and 2.41 million in April.
At the same time, the labor force participation rate increased to 63.6 percent from 60.7 percent a year earlier and 62.7 percent in April. That translated to 52.36 million Filipinos aged 15 and over in the labor force.
Employment also increased in absolute terms, reaching 49.21 million from 46.05 million a year earlier. But because the labor force grew faster, the employment rate slipped to 94.0 percent from 94.7 percent in July 2025 and 95.3 percent in April.
The data show a labor market absorbing more workers but not fast enough to keep unemployment from rising. The picture is less bleak on job quality, however, with the underemployment rate falling to 12.9 percent from 14.8 percent a year earlier and 15.2 percent in April.
Services remained the biggest source of jobs, accounting for 62.8 percent of employment. Agriculture and forestry added the most workers year-on-year, with employment increasing by 1.03 million, followed by accommodation and food services at 729,000.
Average weekly hours worked also declined to 40.6 hours from 42 hours a year earlier, suggesting that stronger labor-force participation did not necessarily translate into more working time for those already employed.
The July figures underline a mixed labor-market picture, with more Filipinos looking for work while job creation struggles to keep pace.
