UNEMPLOYMENT hit an over three-year high in January and job quality also worsened, Philippine Statistics Authority (PSA) data showed on Friday.
The jobless rate rose to 5.8 percent from 4.4 percent in December and 4.3 percent a year earlier, and was the highest since the 6.0 percent seen in June 2022.
Underemployment — a measure of workers wanting more work or an additional job — surged to 13.2 percent from 8.0 percent a month earlier.
It was, however, slightly better than the 13.3 percent recorded in January 2025.
The number of Filipinos without jobs rose to 2.95 million from December’s 2.26 million and those looking for more work increased to 6.35 million from 3.93 million.
The labor force participation rate, or the percentage of individuals aged 15 and above with jobs or actively looking for work, slid to 62.3 percent from 64.4 percent.
The Department of Economy, Planning and Development (DEPDev) said schooling was cited by the youth as the main reason for not joining the labor force. Women of prime working age, meanwhile, tagged family responsibilities while older individuals blamed age or mobility limitations.
The services sector remained the top sector in terms of employment, accounting for 63.6 percent of those with jobs in January. Industry’s share was 18.3 percent and agriculture was slightly lower at 18.1 percent.
Agriculture shed the most number of jobs — 1.76 million — from December while manufacturing posted the largest increase of 546,000.
Wage and salary workers comprised 68.8 percent of the employed. Of this, the private sector accounted for 78.5 percent while the government, including state-owned firms, took a share of 14.3 percent.
The DEPDev said the government was stepping up support for workers amid heightened global uncertainties, particularly the war in the Middle East.
This includes skills development, reintegration for displaced overseas Filipino workers (OFWs) and fuel subsidies for vulnerable sectors such as farmers and transport workers.
“Our priority is clear: create more and better jobs at home, strengthen industries, equip our workers with the skills needed for higher-value employment, and ensure that those affected by global disruptions, including OFWs, can transition smoothly into productive opportunities here in the Philippines,” Socioeconomic Planning Secretary Arsenio Balisacan said in a statement.
“Given elevated geopolitical tensions and global uncertainties, strategic policies are needed to bolster labor market resilience,” he also said.
“The government continues to pursue a comprehensive response to support affected workers in the short term while fostering a dynamic and robust labor market in the medium and long term.”