The unemployment rate in the Philippines declined to 5.3% in August 2026 from a four-year high of 6.0% in July. The number of unemployed persons fell to 2.77 million from 3.14 million, while the employment rate rose to 94.7% from 94.0%, with the number of employed persons increasing to 49.79 million from 49.21 million over the same period. The underemployment rate also eased, slipping to 11.9% from 12.9%, with 5.90 million workers seeking additional hours of work or an additional job.
On a year-on-year basis, however, labor market conditions were weaker. The unemployment rate in August 2026 remained above the 3.9% recorded in August 2025, while the employment rate was below the year-earlier 96.1%, and the number of employed persons was down from 50.10 million. The underemployment rate was also higher than the 10.7% recorded a year earlier.
The services sector continued to be the largest source of jobs, accounting for 61.7% of total employment, followed by agriculture at 20.9% and industry at 17.3%. Average weekly working hours declined to 39.2 in August from 40.6 in July and 41.0 a year earlier.
