FEWER Filipinos were without jobs in March as labor market conditions slightly improved, the Philippine Statistics Authority (PSA) reported on Wednesday.
The jobless rate eased to 5.0 percent from 5.1 percent in February but was higher than the year-earlier 3.9 percent. It was equivalent to 2.58 million unemployed Filipinos, an improvement from 2.66 million a month earlier.
Commenting on the result, Chinabank Research said: “The Philippines’ labor market remained broadly stable in March, even as the Middle East conflict drove up oil prices and heightened domestic fragilities.”
“This provides some optimism that the conflict has not led to a substantial deterioration of economic activity,” it added.
Underemployment — which counts those looking for more work or an extra job — increased to 12.3 percent from 11.8 percent in February but was lower than the 13.4 percent in March 2025. The number of underemployed individuals stood at 6.03 million.
Employment improved to 95.0 percent, slightly higher than the 94.9 percent a month earlier but lower than the year earlier’s 96.1 percent.
The labor force participation rate — the percentage of the working-age population with jobs or actively looking for work — edged down to 63.3 percent from 63.8 percent in February but was higher than March 2025’s 62.9 percent.
Transportation and storage added the most jobs (507,000) despite being the most affected by rising fuel prices, while fishing and aquaculture shed the most (189,000).
“Government support measures like the Service Contracting Program — which offers fare discounts and per-trip subsidies — likely encouraged drivers and operators to continue business despite high fuel costs,” Chinabank Research said.
Other energy-heavy sectors also posted gains, including construction (+175,000) and mining and quarrying (+147,000).
Chinabank Research said that higher fuel costs had affected small fisherfolk who rely on diesel, limiting fishing activity and cutting output by 6.1 percent in the first quarter.
The manufacturing sector also lost jobs (149,000) in line with slower factory activity in March.
“Looking ahead, further employment contraction in the sector is expected in April, as higher input costs led manufacturing firms to scale back their staffing levels,” Chinabank Research said.
Socioeconomic Planning Secretary Arsenio Balisacan said the government would pursue measures to protect jobs and support workers, including social protection, job matching and reskilling, especially for those affected by the Middle East conflict.
“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,” he said.
“We will leverage technologies such as e-wallets and other digital platforms, where applicable, to ensure efficient delivery channels.”
Balisacan said the government also provided regulatory relief, including up to a six-month grace period on loan payments and a one-year deferral for agricultural loans to ease the burden on farmers and small businesses.
“We remain committed to ensuring the safe return and recovery of OFWs (overseas Filipino workers) affected by the Middle East crisis through coordinated support across relevant agencies,” he also said.
