Philippines unemployment hits 4.8%; Cayetano calls for new labor commission

PoliticsBusiness & Finance
11 Jul 2026 • 12:00 AM MYT
The Manila Times
The Manila Times

One of the longest-running English broadsheets in the Philippines

Philippines unemployment hits 4.8%; Cayetano calls for new labor commission

​SENATE Minority Leader Alan Peter Cayetano renewed his call for the creation of an Executive-Legislative Labor Commission (LabCom), saying the country needs long-term labor reforms that go beyond improving employment statistics.

​He said latest data from the Philippine Statistics Authority showed that the unemployment rate rose to 4.8 percent in May from 4.7 percent in April, translating to an increase in the number of unemployed Filipinos from 2.41 million to 2.5 million. The underemployment rate, however, declined to 12.2 percent from 15.2 percent during the same period, indicating fewer employed workers were seeking additional jobs or longer working hours.

​Cayetano said the figures were indicative of the need for structural reforms that address not only job generation but also the quality, security, and fairness of employment in the country.

​He said that LabCom, a priority measure he filed in July 2025, aims to develop coordinated, evidence-based policies on wages, employment generation, worker protection, and labor justice.

​"This body will convene representatives from Congress, the Executive branch, Micro-, Small and Medium-sized Enterprises (MSMEs), trade and industry, and the labor sector, including the migrant and informal sectors, to collectively pursue a sustainable solution to the living wage issue," Cayetano said in the bill's explanatory note.

​He added that the proposed commission would institutionalize regular consultations among government agencies, employers, workers, and other stakeholders to formulate long-term labor policies that respond to the evolving needs of the economy.

​Cayetano stressed that improving employment figures alone is insufficient if workers continue to face stagnant wages, uneven compensation across industries, and lengthy labor disputes.

​"Many people really lose the will to sue because they don't earn anything while the case is ongoing," he said.

​Cayetano said the proposed LabCom recommends industry-specific wage policies rather than a uniform approach across sectors, recognizing that labor conditions and business capacities vary across industries.

​"The LabCom will not talk in generalities. It will come out industry-specific," Cayetano said.

​"Not only will this bring us closer to realizing the just and humane society envisioned by our Constitution, but it will also help end the endless stream of Filipinos who are forced to leave their homes and families for what they hope would be greener economic pastures," he added.

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