Unemployment among Filipinos rose in January 2026 as labor demand declined following the holiday season, according to the latest Labor Force Survey released by the Philippine Statistics Authority (PSA). At a press briefing, Deputy National Statistician Divinia Gracia del Prado said the number of unemployed Filipinos aged 15 and above increased to 2.96 million in January 2026. This was the highest unemployment rate since June 2022, when it reached 6.0%. She added that around 306,000 individuals were actively seeking employment but failed to secure jobs, while 196,000 were waiting for the results of their job applications. Del Prado explained that employment typically declines in January after businesses scale down hiring following increased labor demand during the holiday season. "That's the common trend after the Christmas season, there is a decline in employment," she said. Meanwhile, the number of employed Filipinos fell to 47.94 million in January 2026, down from 48.49 million in January 2025 and 49.43 million in December 2025. The country's employment rate stood at 94.2%, lower than 95.7% in January 2025 and 95.6% in December 2025. PSA data showed that the services sector remained the largest employer, accounting for 63.6% of total employment. This was higher than 2.26 million in December 2025 and 2.17 million in January 2025. Out of the country's 50.89 million labor force participants, the figure translated to an unemployment rate of 5.8%, up from 4.4% in December 2025 and 4.3% in January 2025. Among wage and salary workers, 78.5% were employed in private establishments, accounting for 54% of the total employed population, while 14.3% worked in government or government-controlled corporations. Regionally, SOCCSKSARGEN recorded the highest employment rate at 96%, while the Bicol Region posted the lowest employment rate at 91.8%. Eight regions recorded unemployment rates higher than the national average of 5.8%, including the Bicol Region (8.2%), Eastern Visayas (7.7%), Zamboanga Peninsula (6.7%), Caraga (6.53%), the Negros Island Region (6.50%), CALABARZON (6.4%), Northern Mindanao (6.1%), and the National Capital Region (6.0%). Meanwhile, underemployment—workers seeking additional hours or another job—reached 6.35 million, translating to an underemployment rate of 13.2%, slightly lower than 13.3% in January 2025. Of the total underemployed workers, 51.6% worked less than 40 hours per week, considered visibly underemployed, while 48.4% worked 40 hours or more but still sought additional work. In a statement, Arsenio Balisacan, Secretary of the Department of Economy, Planning and Development, said the government is strengthening support programs for workers amid global uncertainties. "Given elevated geopolitical tensions and global uncertainties, strategic policies are needed to bolster labor market resilience," Balisacan said. He noted that the government is expanding safety nets, including fuel subsidies for transport operators, farmers, and fisherfolk, as well as emergency employment programs such as the Tulong Panghanapbuhay sa Ating Disadvantaged/Displaced Workers Program. The government is also promoting digital tools such as the Skills Passport recently launched by the Technical Education and Skills Development Authority to improve job-skills matching and help jobseekers, including returning overseas Filipino workers, find higher-value employment opportunities. This was followed by industry at 18.3% and agriculture at 18.1%. Among subsectors, the largest shares of employment were recorded in wholesale and retail trade (19.3%), agriculture and forestry (15.7%), and construction (9.6%). However, the biggest year-on-year declines in employment were seen in: • Agriculture and forestry: 1.42 million • Wholesale and retail trade: 729,000 • Fishing and aquaculture: 140,000 • Financial and insurance activities: 15,000 • Real estate activities: 7,000 Meanwhile, employment increased in several subsectors, including: • Administrative and support service activities: 403,000 • Public administration and defense; compulsory social security: 342,000 • Manufacturing: 326,000 • Transportation and storage: 160,000 • Human health and social work activities: 87,000 The PSA reported that wage and salary workers made up the majority of the workforce at 68.8%.
