The Philippine labor market recorded a weaker performance in July, with the unemployment rate reaching 6.0 percent, according to data from the Philippine Statistics Authority released Tuesday. The latest figure represents an increase from 4.9 percent in June and is also above the 5.3 percent recorded in July 2025.
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Joblessness Rises as Employment Rate Falls
The number of Filipinos without work reached about 3.14 million in July. This was higher than the 2.59 million unemployed individuals recorded during the same month last year, pointing to a notable increase in the number of people unable to secure employment.
At the same time, the share of employed Filipinos declined to 94.0 percent from 95.1 percent a month earlier. The movement came alongside a lower labor force participation rate, which fell to 63.6 percent in July from 65.1 percent in June.
Despite the month-on-month decline, July's labor force participation rate remained above the 60.7 percent recorded in July 2025. The figures indicate that changes in both employment and participation contributed to the overall deterioration in the labor market during the month.
Underemployment Also Moves Higher
Conditions among those who remained employed also showed mixed results. Underemployment increased to 12.9 percent in July from 12.1 percent in June, meaning a larger share of employed Filipinos were looking for additional work or more hours.
The July underemployment figure, however, remained below the 14.8 percent recorded in July 2025. Taken together with the rise in unemployment, the data highlight continuing challenges not only in securing jobs but also in ensuring that existing employment provides sufficient work opportunities.
The latest labor figures carry broader implications for household income and economic activity. With 3.14 million Filipinos recorded as jobless and the employment rate declining to 94.0 percent, weaker labor conditions can place added pressure on household finances, spending, and the broader economy. Sustaining job creation and improving the quality and availability of work remain critical as the country responds to changes in the labor market.
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