By Erika Mae P. Sinaking, Reporter
THE Philippine unemployment rate in March rose to five%, because the variety of jobless Filipinos jumped to 2.58 million amid the oil crisis, the Philippine Statistics Authority (PSA) said.
Preliminary results from the March 2026 Labor Force Survey released on Wednesday showed the jobless rate stood at 5% in March, much higher than the three.9% in the identical month a 12 months ago but barely higher than the 5.1% in February.
“The unemployment rate stood at 5% which suggests 50 out of 1,000 individuals within the labor force didn’t have jobs or any business in March 2026,” National Statistician Claire Dennis S. Mapa said in a briefing.
PSA data showed the variety of unemployed Filipinos stood at 2.58 million in March, up by 645,000 from 1.93 million a 12 months earlier, but fell by 84,000 from the two.66 million recorded in February.
Mr. Mapa said the oil crisis has put pressure on the labor market, particularly in some sectors equivalent to fishing and aquaculture. He said they’re closely monitoring whether the oil price shocks will spill over to other sectors.
“We would like to ascertain whether the external shock on fuel and energy will spread to the opposite sub-sectors… It will not be yet conclusive if the consequences will spread. We now have to attend for the April round to see if it would spread,” he said.
For the primary three months, the unemployment rate averaged 5.3%, higher than the 4% average a 12 months ago.
“In comparison with its Asian peers, the Philippines’ unemployment rate is lower than that of China (5.4%) and India (5.1%), but higher than Malaysia’s (2.9%) and Vietnam’s (2.2%),” the Department of Economy, Planning, and Development said in an announcement.
JOB QUALITY
Meanwhile, job quality improved because the underemployment rate fell to 12.3% in March, from 13.4% in the identical month last 12 months. Nonetheless, it was higher than the 11.8% in February.
The ranks of underemployed Filipinos — those that want longer work hours or an extra job — rose by 192,000 12 months on 12 months to six.03 million in March.
12 months thus far, the common underemployment stood at 12.4%.
The country’s employment rate stood at 95%, lower than the 96.1% in March 2025, but barely higher than the 94.9% posted in February.
This translated to 49.07 million employed individuals in March, up by 1.05 million from the 48.02 million a 12 months ago.
Month on month, the variety of employed individuals fell by 357,000 from the 49.43 million in February.
“In March, there was a spike in fuel prices, so the variety of employed fell month on month to 357,000… The decline got here from fishing and aquaculture which were affected by high diesel costs,” Mr. Mapa said.
The employment rate averaged 94.7% within the January to March period.
Data from the PSA showed the labor force participation rate (LFPR) — the proportion of the working-age population (15 years old and over) that is an element of the whole labor force — inched as much as 63.3% in March. This translated to a labor force of 51.65 million Filipinos through the month.
This was higher than the LFPR of 62.9%, akin to a labor force of 49.95 million a 12 months ago. Nonetheless, this was lower than the LFPR of 63.8%, akin to 52.09 million, in February.
12 months thus far, the LFPR averaged 63.1%.
Mr. Mapa said the month-on-month decline within the participation rate was primarily as a result of some individuals selecting to give attention to education (394,000) and household family duties (142,000) moderately than looking for work. He said others also felt there is no such thing as a work available (34,000).
Data showed fishing and aquaculture had the most important year-on-year decline in jobs in March, because it shed 189,000 jobs.
Mr. Mapa said manufacturing jobs fell by 149,000, mainly within the semiconductor and electronics industry, and fruits and vegetable processing.
Arts, entertainment and recreation jobs declined by 147,000, reflecting job losses in gambling and betting activities, amusement parks and other sports activities.
Month on month, industries that saw the most important drop in employment include fishing and aquaculture (-420,000); other office activities (-299,000); manufacturing (-217,000); human health and social work activities (-154,000); and financial and insurance activities (-116,000).
Alternatively, the most important year-on-year increase in jobs was in transportation and storage, which added 507,000 jobs.
“Administrative and support service activities also added 458,000 jobs to three.02 million. The variety of employed increased in call center activities, voice, back office operation activities, non voice and temporary employment agency activities,” Mr. Mapa said.
Month on month, jobs in agriculture and fisheries increased by 486,000 to eight.38 million, followed by construction (184,000) and education (142,000).
In March, the services sector continued to carry the most important share of employment at 63% followed by agriculture at 19.1% and industry at 17.9%.
OUTLOOK
In an announcement, Economy Secretary Arsenio M. Balisacan said that the federal government is moving to fast-track support for the labor market to counter the negative effects of worldwide shocks on the fee of essential goods.
“We commit to tightening the delivery of targeted assistance, equivalent to fuel subsidies and repair contracting for transport employees, farmers, and fisherfolk to enhance alignment and expedite implementation,” Mr. Balisacan said.
In a note, Chinabank Research said employment data indicates that the labor market generally remained “stable” in March despite the Middle East conflict and “heightened domestic fragilities.”
“This provides some optimism that the conflict has not led to a considerable deterioration of economic activity. Nonetheless, weakening business sentiment — as reflected within the BSP’s latest survey — and the choices of some firms to temper expansion plans remain risks, potentially resulting in a slowdown in hiring and eventually job losses,” Chinabank said.
Chinabank said it expects more job losses within the manufacturing sector in April as “higher input costs led manufacturing firms to reduce their staffing levels.”
University of the Philippines Diliman School of Labor and Industrial Relations Assistant Professor Benjamin B. Velasco said employees are coping with high inflation and a shortage in quality jobs.
“Fishing and manufacturing are shedding jobs whether month on month or 12 months on 12 months. With El Niño on the horizon and the worldwide economy stagnant, the climate- and provide chain-dependent sectors are very vulnerable,” he told BusinessWorld.
“The continued US-Israel war on Iran continues to disrupt the labor market with land-based OFWs being repatriated and Filipino seafarers caught within the crossfire. Furthermore, double-digit underemployment accompanies higher unemployment, signaling the dearth of quality employment opportunities,” Mr. Velasco added.
Federation of Free Employees President Jose Sonny G. Matula said in a Viber message that the federal government should consider a “Latest Deal”-style approach, expanding public works, housing, and infrastructure programs to create jobs in periods of weak private-sector demand.
Mr. Matula said wage increases and large-scale infrastructure projects not only provide employment but additionally boost household spending, helping stimulate broader economic activity and strengthen the domestic economy.