Unemployment eases to 5%, but underemployment rises to 12.3% in March 2026

MANILA, Philippines – Unemployment slightly improved to 5% in March 2026 despite the impact of the Middle East crisis, the Philippine Statistics Authority (PSA) reported on Wednesday, May 6. Underemployment, however, worsened.

The latest jobless rate is equivalent to 2.58 million Filipinos, slightly lower than the 5.1% or the 2.66 million Filipinos recorded in February 2026 but higher than the 3.9% or 1.93 million unemployed Filipinos logged in March 2025.

Meanwhile, the underemployment rate grew to 12.3%, equivalent to 6.03 million Filipinos. This is higher than the 11.8% or 5.84 million underemployed Filipinos logged last February but lower than the 13.4% or 6.44 million Filipinos recorded in March 2025.

Underemployed individuals refer to those who are employed but want “additional hours of work in their present job or to have [an] additional job, or to have a new job with longer hours of work.”

National Statistician Dennis Mapa said the transportation and storage sector, which includes inland passenger transport and warehousing, grew the most in March, adding 507,000 jobs year-on-year. It was followed by administrative and support service activities (458,000), such as call centers and temporary employment agency activities.

In contrast, the fishing and aquaculture sector shed 189,000 jobs year-on-year, especially those in marine fishing and the operation of freshwater fish ponds.

Mapa said this could be attributed to the oil crisis brought by the Middle East conflict since most fisherfolk use diesel.

“Nakita natin itong fisheries production ay bumaba sa first quarter 2026 versus 2025 first quarter, at ang malaking bawas ay sa municipal marine fishing, and it seems that it coincided with the labor force market,” he explained.

(We saw that fisheries production dropped in the first quarter of 2026 versus the first quarter of 2025, and bulk of the reduction came from municipal marine fishing, and it seems that it coincided with the labor force market.)

The manufacturing sector also shed 149,000 jobs in March amid losses in the production of semiconductors and other electronic components. Electronic products are the Philippines’ largest export, accounting for around 59% of total export earnings in March.

According to Standard & Poor’s (S&P) Purchasing Managers Index, factory activity in the Philippines fell in March amid a sharp drop in new orders.

“Filipino manufacturers are exposed to shocks in oil and fuel prices rippling through global markets, as signaled via notable hikes in costs and charges, and softer demand conditions,” S&P Global Market Intelligence economist Maryam Baluch said.

In a statement, the Department of Economy, Planning, and Development (DEPDev) said the government will step up measures to preserve jobs and provide social protection for workers displaced by the Middle East crisis.

“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,” said DEPDev Secretary Arsenio Balisacan.

The socioeconomic planning department also noted the introduction 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. – Rappler.com