Philippine Unemployment Rate Ticks Up in June Amid Rising Labor Force

MANILA, Philippines — Unemployment in the Philippines edged up to 4.9 percent in June, as more Filipinos entered the labor force but job creation failed to keep pace, according to data from the Philippine Statistics Authority (PSA). National Statistician Dennis Mapa stated that the PSA’s Labor Force Survey revealed the unemployment rate rose slightly from 4.8 percent in May and 3.7 percent in June of the previous year. This translated to 2.59 million jobless Filipinos in June, an increase from 2.50 million in May and 1.95 million in June 2025. Mapa attributed the rise in unemployment to a higher labor force participation rate. The participation rate stood at 65.1 percent in June, up from 63.8 percent in May but lower than the 65.7 percent recorded in June 2025. This means 53.25 million Filipinos aged 15 and over were in the labor force in June, an increase from 52.13 million in May and 52.42 million in June 2025. "Many of them, unfortunately, were unemployed," Mapa said. Chinabank Research suggested that rising living costs likely encouraged more Filipinos to seek work. However, job creation has not kept pace, particularly among those aged 15 to 24, leading to a higher unemployment rate. The employment rate declined to 95.1 percent in June from 95.2 percent in May and 96.3 percent in June last year. An estimated 50.66 million Filipinos were employed in June, up from 49.63 million in May and 50.47 million in June 2025. The underemployment rate rose to 12.1 percent in June from 11.4 percent in June 2025, but was lower than the 12.2 percent rate in May. There were 6.11 million underemployed Filipinos in June, higher than the 6.04 million in May and 5.76 million in June last year. Sectors that saw the largest month-on-month increase in employment in June included agriculture and forestry (453,000), other service activities (437,000), public administration and defense (393,000), wholesale and retail trade (213,000), and education (150,000). Conversely, fishing and aquaculture, manufacturing, mining and quarrying, human health and social work activities, and accommodation and food service activities experienced the biggest job cuts. Chinabank Research noted that employment growth remains concentrated in hotels and restaurants, the public sector, and the business process outsourcing (BPO) industry. The agriculture and construction sectors, meanwhile, continue to face headwinds from El Niño and potentially higher minimum wages.