Unemployment in May rises, underemployment declines

MANILA, July 9 ------ The Philippines’ unemployment rate climbed in May from April, while the underemployment rate declined, the Philippine Statistics Authority said.

In May, the unemployment rate was 4.8 percent, which was higher than the 4.7 percent print seen in April. This means that 2.5 million workers were jobless in May up from 2.41 million in April. The May 2026 clip was also higher than the 3.9 percent print seen in May 2025.

National Statistician Claire Dennis Mapa said the significant year-on-year rise in the jobless rate was due to job losses in the agriculture sector, numbering about 905,000. Mapa said this may be due to the onset of the El Niño phenomenon. "Mula ito bsa sector ng growing of paddy rice, 734,000; growing of corn, 428,000. So ang nakikita namin, basically, siguro impact ito ng weather condition nitong May 2026. Alam naman natin may El Niño tayo papasok, and this is also one possibility," he said.

In a positive sign for job quality, the underemployment rate—measuring those wanting more hours of work—fell to 12.2 percent from 15.2 percent in April, while average weekly working hours rose to 41.1. Most of the decreases in underemployment came from the wholesale and retail trade, repair of motor vehicles and motorcycles (240,00), agriculture and forestry (154,000), other service activities (131,000), and construction (130,000) subsectors.

The May underemployment rate was also lower than the 13.1 percent clip in May last year. The PSA defines the underemployed as workers who already have jobs but are still looking for extra jobs or work hours. Even workers who have worked just one hour in a month during the labor force survey period may be classified as underemployed. The country's total workforce shrank on an annual basis to 52.13 million, down from 52.32 million in May 2025.

The dominant services sector remained the biggest employer, accounting for 61.8 percent of the workforce, followed by agriculture at 19.9 percent and industry at 18.3 percent. Meanwhile, youth employment remained under pressure. The employment rate for Filipinos aged 15 to 24 dropped sharply to 87.6 percent compared to 91.5 percent in May last year, reflecting ongoing vulnerabilities for young jobseekers in the developing Asian economy.

OIL CRISIS ALSO BLAMED

The Department of Labor and Employment (DOLE) welcomed the latest employment numbers. "The challenge before us is no longer simply creating jobs. We must create quality jobs that provide decent incomes, encourage productivity, and prepare Filipinos for the jobs of tomorrow,” Labor Secretary Francis Tolentino said in a statement.

Malacanang, for its part, said the government will continue to support sectors hardly hit by the impact of the global oil crisis, which it blamed for the rise in the unemployment rate. Palace Press Officer Undersecretary Claire Castro said that while the recent labor force survey was not discussed during the Economy and Development (ED) Council meeting on Tuesday, July 7, measures to address the impact of the global oil crisis have long been part of their discussions. “Even before po na nagkaroon po ng kaguluhan sa Middle East ay nagiging parte na po ito ng usapan para po maibsan nga po iyong impact sa ating mga kababayan at sinisiguro po na iyong iba na hindi agad makakapagtrabaho,” Castro said. “Halimbawa po iyong mga mangingisda, dahil nga po sa taas ng krudo at that time, although nabibigyan sila ng ayuda, pero hindi naman kakayanin lahat na kumbaga araw-araw or monthly ang pagtulong sa pagbibigay ng mas mababang cost ng fuel,” she added.

Castro further noted that other agricultural workers have opted to find other means of livelihood due to the effects of high fuel costs. The Palace official assured that the Department of Economy, Planning, and Development (DEPDev) has been monitoring the issue and assured government interventions to cushion the effects of the oil crisis here back home. “Ito iyong nararamdaman because of the oil crisis, nandoon pa rin po iyong interventions ng government para po kahit papaano ay maibsan nga ang impact nitong nararanasan natin na hanggang ngayon po ay nandiyan pa rin po,” Castro said.

Source: news.abs-cbn.com