Jobless rate rises to 4.9% in June

MANILA, Philippines —  Unemployment went up in June as more Filipinos entered the workforce, but not enough jobs were available to absorb them, according to data from the Philippine Statistics Authority (PSA). In a press conference, National Statistician Dennis Mapa said results of the PSA’s Labor Force Survey showed the unemployment rate rose slightly to 4.9 percent in June from the previous month’s 4.8 percent and 3.7 percent in the same month last year.

This translated to 2.59 million jobless Filipinos in June, up from 2.50 million in May   and 1.95 million in June 2025.

He attributed the increase in unemployment to higher labor force participation.

The labor force participation rate was at 65.1 percent in June, up from 63.8 percent in the previous month, but lower than the 65.7 percent posted in June 2025.

This translates to 53.25 million Filipinos aged 15 years and over who were in the labor force in June, up from 52.13 million in the previous month and 52.42 million in June 2025.

While the number of Filipinos in the labor force increased, Mapa said “many of them, unfortunately, were unemployed.”

Chinabank Research said the increase in labor force participation was likely driven by rising costs.

“Higher living costs likely encouraged more Filipinos to seek work. However, job creation has not kept pace, particularly among those aged 15 to 24, resulting in a higher unemployment rate,” it said.

The employment rate declined to 95.1 percent in June  from the previous month’s 95.2 percent and 96.3 percent in June last year.

In terms of magnitude, an estimated 50.66 million Filipinos were employed in June, up from the previous month’s 49.63 million and the 50.47 million employed in June 2025.

The underemployment rate rose to 12.1 percent in June from 11.4 percent in June 2025, but lower than the 12.2 percent rate last May.

There were 6.11 million underemployed, or those who want additional work hours or an additional job, in June. This is higher than the previous month’s 6.04 million and 5.76 million in June last year.

Sectors with the largest month-on-month increase in employment in June were 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).

Meanwhile, those which saw the biggest month-on-month job cuts were fishing and aquaculture, manufacturing, mining and quarrying, human health and social work activities and accommodation and food service activities.

Chinabank Research said that employment growth remains concentrated in hotels and restaurants, the public sector and the business process outsourcing industry.

“Meanwhile, agriculture and construction continue to face headwinds from El Niño and possibly higher minimum wages,” it said.