The July unemployment rate was higher than the 5.3 percent recorded a year earlier and 4.7 percent in April 2026. The number of unemployed Filipinos likewise increased from 2.59 million in July 2025 and 2.41 million in April.
The labor force participation rate rose to 63.6 percent from 60.7 percent a year earlier and 62.7 percent in April. This translated to 52.36 million Filipinos aged 15 and older who were either employed or looking for work, up from 48.64 million in July 2025.
Despite the higher unemployment rate, the number of employed Filipinos increased to 49.21 million from 46.05 million a year earlier. The employment rate, however, slipped to 94 percent from 94.7 percent.
Highlights of the July labor market report:
Services still dominate employment. The services sector accounted for 62.8 percent of employed Filipinos, followed by agriculture at 19.7 percent and industry at 17.5 percent. Wholesale and retail trade and repair of motor vehicles and motorcycles had the largest share among subsectors at 18.7 percent, followed by agriculture and forestry at 17.1 percent and construction at 9.6 percent.
Agriculture led job gains. Agriculture and forestry added 1.03 million workers from a year earlier, the biggest increase among subsectors.
Accommodation and food service activities gained 729,000 workers, wholesale and retail trade added 424,000, administrative and support services gained 201,000, and transportation and storage added 197,000.
Manufacturing shed the most jobs. Manufacturing employment fell by 134,000 year on year. Information and communication lost 41,000 jobs, while professional, scientific and technical activities shed 28,000. Water supply, sewerage and waste management lost 9,000 jobs, while financial and insurance activities shed 7,000.
Retail employment posted the biggest drop from April. Compared with April 2026, wholesale and retail trade and repair of motor vehicles and motorcycles lost 430,000 workers. Manufacturing shed 162,000, construction lost 85,000, mining and quarrying declined by 57,000, and financial and insurance activities lost 36,000.
Underemployment improved. The underemployment rate fell to 12.9 percent from 14.8 percent a year earlier and 15.2 percent in April. About 6.33 million employed Filipinos wanted additional working hours, another job or a new job with longer hours.
Metro Manila had the highest unemployment rate. The National Capital Region posted an unemployment rate of 8.2 percent, followed by the Bicol Region at 8 percent, Ilocos Region at 7 percent and Central Visayas at 6.3 percent. Caraga at 6.15 percent and Calabarzon at 6.07 percent were also above the 6 percent national average. The Davao Region, meanwhile, had the highest employment rate at 96.1 percent. —Ed: Corrie S. Narisma
