The Philippine labor market showed modest signs of expansion in March 2026, as more Filipinos entered the workforce, according to the latest data released by the Philippine Statistics Authority (PSA).
Data released on Wednesday, May 6, 2026, showed the country's labor force participation rate (LFPR) in March 2026 increasing to 63.3 percent, slightly higher than the 62.9 percent logged in the same month last year. This translates to approximately 51.65 million Filipinos aged 15 and above who were either employed or actively seeking work, an increase of 1.7 million compared to March 2025. However, the March LFPR is also slightly lower than February 2026's 63.8 percent.
Despite the increase in labor participation, employment indicators presented a mixed picture. The unemployment rate eased slightly to 5.0 percent in March 2026 from 5.1 percent in February, equivalent to 2.58 million jobless Filipinos. Still, this remains significantly higher than the 3.9 percent unemployment rate recorded a year earlier.
Employment levels rose annually, with 49.07 million Filipinos reported employed -- about one million more than in March 2025. On a monthly basis, however, employment declined from 49.43 million in February. The employment rate stood at 95.0 percent, slightly lower than last year's 96.1 percent but marginally higher than February's 94.9 percent.
The services sector continued to be the backbone of the Philippine labor market, accounting for 63.0 percent of total employment. Agriculture and industry followed with shares of 19.1 percent and 17.9 percent, respectively.
While more Filipinos are working, job quality remains an issue. The underemployment rate, those seeking more hours or additional jobs, stood at 12.3 percent, affecting around 6.03 million workers. Although this is an improvement from 13.4 percent a year ago, it rose from 11.8 percent in February. The average workweek also slightly declined to 40.7 hours, indicating potential softness in job intensity or availability of full-time work.
Wage and salary workers made up the majority of the workforce at 63.7 percent, with most employed in private establishments. Self-employed individuals accounted for 27.8 percent, highlighting the continued prevalence of informal or independent work arrangements.
In a statement, Department of Economy, Planning, and Development (DEPDev) Secretary Arsenio Balisacan reiterated the government's commitment to pursue measures to preserve jobs and provide social protection, job-skills matching, and reskilling for workers, particularly those displaced by the Middle East conflict. He said the government will ensure business and service continuity by accelerating strategic interventions, as prolonged conflict in the Middle East raised the prices of fuel and other inputs, adversely affecting production and employment.
“We commit to tightening the delivery of targeted assistance, such as fuel subsidies and service contracting for transport workers, farmers, and fisherfolk to improve alignment and expedite implementation. We will leverage technologies such as e-wallets and other digital platforms, where applicable, to ensure efficient delivery channels,” he said.
Balisacan also noted the implementation of regulatory relief such as a temporary grace period of up to six months for loan payments and a one-year deferral for agricultural loans to alleviate conditions for farm operators and other small businesses. He said financing programs, including DOLE's Adjustment Measures Program, Landbank's Real Energy+ Lending Program, and the DTI-Small Business Corporation, were also rolled out to provide further financial assistance.
“We remain committed to ensuring the safe return and recovery of OFWs affected by the Middle East crisis through coordinated support across relevant agencies. They continue to receive assistance through reintegration programs, including livelihood assistance, skills training, and financial aid,” Balisacan added.
