The Philippines' unemployment rate climbed to 4.8 percent in May 2026, with an estimated 2.50 million jobless Filipinos, according to the latest Labor Force Survey released by the Philippine Statistics Authority (PSA) on Wednesday, July 8, 2026.
The number of Filipinos without work increased even as the number of employed persons rose from the previous month. The May unemployment rate was slightly higher than the 4.7 percent (2.41 million) recorded in April 2026 and markedly above the 3.9 percent (2.03 million) logged in May 2025.
Employment and Labor Force Participation
Despite the rise in unemployment, the country posted 49.63 million employed persons in May, higher than the 48.89 million recorded in April, as more Filipinos entered the labor force. The PSA reported that the labor force participation rate (LFPR) reached 63.8 percent, equivalent to 52.13 million Filipinos aged 15 years and above who were either employed or actively looking for work. This was higher than April's 62.7 percent but lower than the 65.8 percent recorded in May 2025.
Among Filipinos aged 15 to 24, the labor force participation rate stood at 32.3 percent, lower than 33.6 percent in May 2025 but slightly higher than 31.8 percent in April. The PSA said 6.10 million young Filipinos were employed in May, with around 787,000 classified as underemployed, translating to a 12.9-percent youth underemployment rate.
Sectoral Employment Breakdown
The services sector continued to account for the largest share of employment at 61.8 percent, followed by agriculture at 19.9 percent and industry at 18.3 percent. Among industries, Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles remained the largest employer, accounting for 19.6 percent of total employment. This was followed by Agriculture and Forestry with 17.2 percent and construction with 10.0 percent.
The largest year-on-year job losses were seen in agriculture and forestry (-905,000); other service activities (-442,000); public administration and defense; compulsory social security (-213,000); wholesale and retail trade; repair of motor vehicles and motorcycles (-141,000); and professional, scientific and technical activities (-75,000). Compared with April, employment increased the most in agriculture and forestry (+308,000), accommodation and food service activities (+266,000), administrative and support service activities (+152,000), construction (+147,000), and human health and social work activities (+131,000).
Worker Classification and Underemployment
Wage and salary workers continued to make up the largest share of employed Filipinos at 64.3 percent, followed by self-employed workers without paid employees (27.2 percent), unpaid family workers (6.8 percent), and employers in family-operated businesses or farms (1.8 percent). Among wage and salary workers, 79.4 percent were employed by private establishments, while 14.2 percent worked for the government or government-controlled corporations.
The PSA reported an improvement in underemployment, with the rate declining to 12.2 percent from 15.2 percent in April and 13.1 percent in May 2025. About 6.04 million employed Filipinos said they wanted additional working hours, another job, or a job with longer hours. More than half, or 53.7 percent, of the underemployed worked fewer than 40 hours a week, while 46.3 percent worked 40 hours or more but still sought additional employment or longer working hours. Workers also spent more time on the job, with average weekly hours increasing to 41.1 hours, compared with 40.2 hours in April and 39.8 hours a year earlier.
