Philippines employment rises, but unemployment climbs to 6% in July

The Philippines’ Department of Labor and Employment (DOLE) is intensifying employment interventions in areas experiencing significant job contractions following the release of the July 2026 Labor Force Survey by the Philippine Statistics Authority (PSA).

Labor Secretary Francis N. Tolentino has directed DOLE regional offices to work more closely with local government units and Public Employment Service Offices (PESOs) to strengthen employment facilitation and youth employability programmes, while helping affected workers and jobseekers access available opportunities.

The latest labour data showed that 49.21 million Filipinos were employed in July, up by 3.16 million from 46.05 million a year earlier. The increase indicates continued employment growth across several major sectors of the economy.

However, the larger labour force has also brought pressure on employment indicators. The labour force expanded by 3.71 million year-on-year to 52.36 million, lifting the labour force participation rate to 63.6% from 60.7%. At the same time, the employment rate declined to 94.0% from 94.7%, while the unemployment rate rose to 6.0% from 5.3%.

Underemployment, meanwhile, improved. The underemployment rate fell to 12.9% from 14.8% a year earlier, while the number of underemployed workers declined by 473,000 to 6.33 million.

“Employment remains significantly higher than a year ago, but the increase in unemployment reminds us that there are Filipinos who continue to seek work,” Tolentino said, adding that DOLE would continue strengthening employment facilitation and connecting jobseekers with available opportunities.

Sector-level data showed mixed employment trends. Agriculture and Forestry recorded the largest year-on-year employment gain, adding 1.03 million jobs, followed by Accommodation and Food Service Activities, which added 729,000. Manufacturing recorded the largest employment decline, down by 134,000, followed by Information and Communication, which fell by 41,000.

On a monthly basis, Transportation and Storage posted the biggest employment increase, adding 270,000 workers, followed by Fishing and Aquaculture with 127,000. Wholesale and Retail Trade recorded the largest monthly decline, with employment falling by 710,000, while Agriculture and Forestry declined by 561,000.

Tolentino said monitoring these shifts would be important to ensure that employment programmes respond to where opportunities are emerging and where gaps remain.

“We need to closely monitor where employment opportunities are growing and where gaps remain so that our employment programmes and services can respond to the needs of workers and jobseekers,” he said.

“The goal is not only to bring the unemployment rate down, but to put more Filipinos in decent, more productive work,” he added.

Youth employment has emerged as another area requiring targeted intervention. Youth labour force participation increased to 33.7% in July from 29.5% a year earlier, while the proportion of young people not in employment, education or training declined to 15.2% from 15.9%.

However, youth unemployment rose to 18.6% from 18.1% year-on-year and increased sharply from 13.5% in June.

DOLE said it would continue youth employability initiatives, including the Government Internship Programme and the Special Programme for Employment of Students, to help young Filipinos gain work experience and access employment opportunities.

From September, the department will also conduct monthly Trabaho Agad job fairs nationwide. PESOs will help accelerate placements, particularly for “near-hires” who have already progressed through recruitment but still need to complete documentary requirements.

DOLE is also expanding assistance for workers and communities affected by flooding and monsoon rains through the Tulong Panghanapbuhay sa Ating Disadvantaged (TUPAD) Workers Programme. The programme provides temporary employment and immediate income support to help affected families recover from disasters.

The department said it is working to strengthen the transition from short-term assistance to sustainable livelihoods through community-based enterprises, skills training and capital support in partnership with the Technical Education and Skills Development Authority (TESDA).

Livelihood assistance under the DOLE Integrated Livelihood Programme will also continue for workers rebuilding their sources of income, including those affected by flooding linked to the Southwest Monsoon, or habagat.

DOLE is further strengthening its skills-to-work partnerships with TESDA and the Department of Migrant Workers to connect training, starter kits and capital assistance with actual employment opportunities and viable livelihood enterprises, including for returning overseas workers seeking to rebuild their livelihoods.

Meanwhile, the Adjustment Measures Programme will remain available to micro, small and medium enterprises facing economic pressures. The programme is intended to help businesses sustain operations, protect jobs and improve productivity.

The July labour market developments come amid external and weather-related pressures. Tropical cyclones that enhanced the Southwest Monsoon have caused reported agricultural production losses, while continuing conflict in the Middle East has added to economic uncertainty and could affect business activity and employment conditions.

DOLE said it would continue to strengthen employment facilitation and workforce development programmes as the government seeks to translate economic growth into more productive, inclusive, resilient and future-ready employment opportunities for Filipino workers.