The Philippines' unemployment rate jumped to 4.8% in May, the highest in two months, due to job losses in the agriculture sector driven by bad weather. This rate surpassed the 4.7% seen in April and 3.9% a year earlier.
The number of jobless Filipinos rose to 2.5 million from 2.03 million in May 2025 and 2.41 million a month earlier. The agriculture sector shed 905,000 jobs from a year ago, extending its decline for a seventh consecutive month.
A significant drop in employment was also seen in other service activities, public administration and defense, and wholesale and retail trade. The underemployment rate, however, fell to 12.2% from 13.1% a year earlier and 15.2% in April.
The improvement in job quality was attributed to fewer workers seeking additional hours, with average weekly hours worked increasing to 41.1 hours from 39.8 hours a year earlier and 40.2 hours in April.
The labor force participation rate (LFPR) stood at 63.8% in May, lower than the 65.8% seen in the same month in 2025, but slightly higher than the 62.7% participation rate in April.
The services sector remained the country's biggest employer, accounting for 61.8% of total employment, followed by agriculture at 19.9% and industry at 18.3%. Administrative and support service activities posted the biggest annual employment gain in May with 329,000 jobs.
Despite the challenges, Labor Secretary Francis N. Tolentino emphasized the need to create better jobs that provide decent incomes and prepare Filipinos for the jobs of tomorrow.
Experts noted that the labor market remained soft, but performed better-than-expected amid uncertainties and price pressures arising from the Middle East war. They also expressed concern over the continued loss of agricultural jobs and the potential impact of El Niño on the agriculture sector.
The implementation of the minimum wage hike in Metro Manila is also expected to cloud the outlook for the labor market in the coming months. Experts argue that higher wages are most sustainable when accompanied by measures that raise productivity and lower the cost of doing business.
As the country navigates these challenges, experts emphasize the need for a strategy that addresses the root causes of joblessness, including agricultural modernization and industrialization.
