Jobless Filipinos reach nearly 3M
The number of jobless Filipinos has surged to 2.96 million, marking the highest level since 2022. This weakening of the Philippine labor market at the start of the year is attributed to the ongoing Middle East crisis, with unemployment reaching 5.8 percent in January.
The Philippines' unemployment rate surged to 5.8% in January 2026, marking the highest level since June 2022 and representing the worst joblessness during the Marcos Jr. administration. According to the Philippine Statistics Authority (PSA), this translates to 2.96 million unemployed Filipinos, a significant increase from 2.26 million in December 2025 and 2.17 million in January 2025. The employment rate fell to 94.2%, the lowest since June 2022, while the labor force participation rate declined to 62.3% with 50.89 million Filipinos in the labor force.
The sharp increase in joblessness reflects seasonal post-holiday cooling of the labor market, with businesses typically reducing hiring after the Christmas season. However, the situation was exacerbated by the agriculture sector shedding approximately 1.4 million jobs in January. Underemployment also rose sharply to 13.2%, affecting 6.35 million Filipinos who wanted more work hours or additional jobs.
PSA officials have expressed concern about the potential impact of the Middle East crisis on future employment data, particularly for March 2026. Rising oil prices and inflation stemming from Middle East tensions could trigger hiring freezes or layoffs among companies, with specific concern for overseas Filipino workers (OFWs) who might face repatriation due to global disruptions, placing additional pressure on the domestic labor market.
Regional disparities were evident, with SOCCSKSARGEN recording the highest employment rate at 96.0%, while the Bicol region posted the lowest at 91.8%. This deterioration contrasts sharply with 2024's performance when the Philippines achieved a record-low 3.8% unemployment rate for the full year. The services sector continues to dominate employment at 63.6% of total workers, followed by industry (18.3%) and agriculture (18.1%).
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