March 19, 2026
MANILA – The Philippines’ labor market started 2026 on a troubling note, with nearly 3 million Filipinos out of work and millions more stuck in unstable jobs, prompting labor groups to call for an urgent shift in the government’s employment strategy.
In a joint statement released Sunday, labor coalition Sentro ng mga Nagkakaisa at Progresibong Manggagawa (Sentro) and think tank Labor Education and Research Network (LEARN) warned that the latest labor force data “paints a bleak picture of the Philippine labor market.”
Their statement came days after the Philippine Statistics Authority (PSA) released the results of the January 2026 Labor Force Survey (LFS), which showed unemployment rising sharply at the start of the year.
Jobless rate climbs again
The PSA reported that the country’s unemployment rate rose to 5.8% in January 2026, a significant increase from 4.3% in January 2025 and 5.0% in October 2025.
In actual numbers, the jobless population climbed to 2.96 million Filipinos ages 15 and older, up from 2.17 million a year earlier.
At the same time, the number of employed Filipinos fell to 47.94 million, down from 48.49 million in January 2025, according to the PSA report.
Labor force participation also declined. The labor force participation rate slipped to 62.3%, representing about 50.89 million Filipinos who were either working or actively looking for work.
For labor groups, the numbers reflect deeper structural problems in the economy.
“Unemployment is rising again, with the jobless rate climbing compared to both last year and the previous quarter,” Sentro and LEARN said.
Millions still underemployed
Even among those who have jobs, many Filipinos continue to struggle with insufficient work.
The PSA estimated that 6.35 million employed Filipinos were underemployed in January, meaning they wanted more hours of work or additional jobs.
This translates to an underemployment rate of 13.2%, slightly lower than the 13.3% recorded in January 2025, but higher than the 12.0% recorded in October 2025.
“Underemployment remains stubbornly high, meaning millions of Filipinos who have jobs are still desperate for more work,” the labor groups said.
The survey also showed that Filipinos are spending more time at work. On average, employed people worked 42 hours a week, up from 40.4 hours in January 2025.
For labor advocates, this suggests workers are stretching their hours simply to cope with rising living costs.
“At the same time, workers who do have jobs are being forced to work longer hours just to cope with rising living costs,” Sentro and LEARN said.
Youth and women lagging behind
The latest data also highlighted growing challenges among younger Filipinos entering the workforce.
The labor force participation rate for youth ages 15 to 24 fell to 30.7%, down from 31.8% a year earlier, while their employment rate dropped to 82.7% from 88%.
Meanwhile, the proportion of young people not in education, employment or training (NEET) rose to 14%, from 11.7% in January 2025.
Labor groups warned that these trends show a generation increasingly being left behind.
“Youth employment continues to deteriorate, with more young people either unemployed or stuck in the ranks of those not in employment, education, or training,” the groups said.
They also pointed to persistent gender gaps in the workforce.
“Women’s participation in the labor force continues to decline, with the gap between men and women still hovering at around 20 percent,” the statement said.
Agriculture jobs plunge
Sectoral employment data from the PSA further revealed sharp losses in agriculture, which historically absorbs a large share of workers in rural areas.
The survey showed that about 1.42 million agricultural workers lost their jobs over the past year, making agriculture and forestry the sector with the largest decline in employment.
At the same time, the services sector now accounts for the majority of jobs in the country, employing 63.6% of workers, compared with 18.3% in industry and 18.1% in agriculture.
“The services sector now accounts for about two-thirds of total employment, while national industries remain weak and agriculture is collapsing,” Sentro and LEARN said.
“The loss of around 1.42 million agricultural workers in just one year is a stark warning sign — especially as rising fuel costs make food imports more expensive and threaten food security.”
Call for a new jobs strategy
The labor groups criticized the government’s current employment strategy, saying it relies too heavily on market-driven growth and service-sector expansion.
“Yet despite these alarming trends, the government continues to cling to a failed jobs strategy,” the groups said.
They also questioned the government’s repeated pledge to create better domestic jobs.
“Claims by the Department of Economy, Planning, and Development that it will ‘create more and better jobs at home’ ring hollow without a clear industrial policy backed by public financing,” the statement said.
“The country cannot rely on offshore services and temporary market-driven growth alone to absorb millions of workers,” it added.
Instead, Sentro and LEARN urged the government to adopt a more aggressive approach to job creation.
“What the situation demands is decisive public action,” they said.
The groups proposed a public employment program guaranteeing at least 100 days of work, linked to climate jobs and community resilience projects, alongside income subsidies for distressed small and medium enterprises and paid training programs for the unemployed.
Risks ahead
Labor groups warned that the employment situation could worsen further if economic pressures intensify.
“Without such bold reforms, the situation could deteriorate rapidly,” they said. “As the crisis in the Middle East deepens and fuel prices threaten to reach P100 a liter, the job market could shrink even further unless the government adopts a comprehensive response beyond the temporary removal of excise taxes.”
For Sentro and LEARN, the message from the latest labor data is clear.
“The data is clear: Filipinos are working longer, earning less, and facing fewer opportunities,” they said.
“The government must abandon its complacency and adopt a real jobs strategy before the current crisis deepens into a full-blown employment emergency.” /dm