Jobless rate hits 4-year high in July

MANILA, Philippines — The country’s unemployment rate in July rose to its highest level in over four years as more Filipinos joined the workforce, but not enough jobs were available in the market. Preliminary results of the Philippine Statistics Authority’s Labor Force Survey showed that the unemployment rate rose to six percent in July from the previous month’s 4.9 percent and 5.3 percent in the same month last year.

In a press briefing, National Statistician Dennis Mapa said the latest unemployment rate was the highest since January and February 2022, when the rate was at 6.4 percent.

He said the latest unemployment rate was also at the same level recorded in May and June 2022.

In terms of magnitude, there were 3.14 million jobless Filipinos in July, up from 2.59 million in the previous month and in the same month last year.

Mapa said the unemployment level was the highest since December 2021 when there were 3.28 million jobless Filipinos during the COVID-19 pandemic.

“Those who joined the labor market increased and not all were absorbed,” he said.

Employers Confederation of the Philippines president Sergio Ortiz-Luis Jr. said in a telephone interview yesterday that businesses are on a wait-and-see mode and not hiring additional workers amid ongoing uncertainty.

“There is so much uncertainty. There’s (United States President Donald) Trump’s policies, labor laws like wage hikes and flood control. That is still an issue,” he said.

He said that inflation is also a concern for businesses and is affecting hiring activity.

While overall inflation eased to 6.1 percent in August from the previous month’s 6.2 percent, it remains elevated.

Average inflation from January to August stood at 5.2 percent, above the government’s two to four percent target band.

“Micro enterprises are not sure if their business will remain open tomorrow so they’re not hiring now,” he said.

He said that large enterprises are also on a wait-and-see and are holding back on investments.

The country’s labor force participation rate was at 63.6 percent in July, slightly lower than the previous month’s 65.1 percent, but higher than the 60.7 percent rate in July last year.

This translated to 52.36 million Filipinos in the labor force in July, down slightly from 53.25 million in the previous month, but up from 48.64 million in July 2025.

The employment rate declined to 94 percent in July from the previous month’s 95.1 percent and 94.7 percent in the same month a year ago.

This means 49.21 million Filipinos were employed in July, lower than the previous month’s 50.66 million, but higher than the 46.05 million in July last year.

Underemployment was estimated at 12.9 percent in July, higher than the previous month’s 12.1 percent, but lower than the 14.8 percent in July 2025.

An estimated 6.33 million were underemployed or wanted to have an additional job or work hours in July. This is up from the previous month’s 6.11 million, but lower than the 6.80 million in July 2025.

Given the latest labor market results, the Department of Economy, Planning and Development (DEPDev) said the government would strengthen support for both workers and businesses.

“These figures show both progress and challenge. More Filipinos are participating in the labor market, which means that we need to intensify efforts to attract investments, especially those that create quality jobs,” DEPDev Secretary Arsenio Balisacan said.

 “The key is to continuously improve the ease of doing business in the country,” he added.

Apart from attracting investments, the government is also looking at interventions to help workers and businesses adapt to evolving labor market needs. These include support for micro, small, and medium enterprises in technology adoption and more upskilling opportunities for workers.

The government will also advance reforms under the National Education and Workforce Development Plan 2026 to 2035, including the Association of Southeast Asian Nations mutual recognition arrangements for qualifications and skills certifications.

“Long-term employment resilience depends on our ability to prepare for change rather than react to it. By investing in skills, innovation and business competitiveness today, we can create a workforce that is ready for the opportunities and challenges of tomorrow,” Balisacan said.