By Erika Mae P. Sinaking, Reporter
THE PHILIPPINES’ underemployment rate climbed to a near three-year high in April, whilst the joblessness fell to its lowest level in 4 months, based on the Philippine Statistics Authority (PSA).
The newest Labor Force Survey by the PSA showed that the underemployment rate surged to fifteen.2% in April 2026, up from 14.6% in the identical month a 12 months ago and the 12.3% in March 2026.
National Statistician Claire Dennis S. Mapa said the underemployment rate of 15.2% was the best since July 2023.
The ranks of underemployed Filipinos — those that want longer work hours or an extra job — increased to 7.41 million in April from 7.081 million in the identical month a 12 months ago and from 6.031 million in March.
Mr. Mapa said underemployment was evident within the transportation and storage sector, particularly amongst drivers of jeepneys, taxis, buses, and ride-hailing services. Drivers could have been forced to chop their work hours resulting from soaring pump prices for the reason that start of the US-Iran war in late February.
The underemployment rate averaged 13.12% in the primary 4 months, up from 12.85% in the identical period 12 months ago.
The typical weekly hours worked by an employed person rose to 40.2 hours in April from 39.9 hours in April 2025 but fell from 40.7 in March.
“Filipinos sought additional work to deal with the rising cost of living. Some jobseekers could have also accepted part-time or lower-paying roles to secure income. At the identical time, firms could have reduced working hours to administer higher operating costs, prompting employees to search for supplementary employment to offset lost earnings,” Chinabank Research said in a separate report.
Meanwhile, the jobless rate rose to 4.7% in April from the 4.1% in the identical month last 12 months but easing from the 5% in March. This was the bottom jobless rate in 4 months or for the reason that 4.4% in December 2025.
The variety of unemployed Filipinos was estimated at 2.41 million in April, 351,000 higher than the two.06 million recorded a 12 months ago.
PSA data showed wholesale and retail trade; repair of motorcars and motorcycles posted the most important annual decline in jobs in April with 450,000, followed by agriculture and forestry with 392,000.
Mr. Mapa noted that the year-on-year rise in unemployment was driven largely by job seekers within the 15-24 and 25-34 age groups.
“The explanation for the year-on-year increase within the unemployed is that they were truly in search of work but couldn’t find any,” Mr. Mapa told a news briefing in Filipino, adding that many were also waiting for results from job applications.
For the primary 4 months of the 12 months, the jobless rate averaged 5.15%, higher than the 4.02% a 12 months ago.
The labor force participation rate (LFPR) fell to 62.7% in April from 63.7% a 12 months ago and 63.3% in March. This was reminiscent of 51.3 million Filipinos aged 15 years and over who were a part of the labor force, barely higher than the 50.74 million a 12 months ago.
For youth aged 15 to 24, the LFPR stood at 31.8% in April, unchanged from last 12 months.
The variety of youths not in education, employment, or training rose to 2.64 million in April, making up 12.2% of the youth population compared with 10.6% a 12 months ago.
CHALLENGES
In an announcement, Department of Economy, Planning, and Development Secretary Arsenio M. Balisacan said that the federal government is working to broaden market access and attract investments in emerging industries.
“The newest labor market indicators reflect each the challenges confronting the economy and the resilience of Filipino employees and businesses,” he said
Mr. Balisacan said the federal government is monitoring the employment impact of the Middle East crisis, the El Niño weather phenomenon, and the recent 7.8-magnitude earthquake in Mindanao.
“We remain committed to providing timely support to affected employees and households,” he said.
The employment rate in April stood at 95.3%, lower than the 95.9% posted in April 2025 but higher than the 95% in March.
The full variety of employed Filipinos increased to 48.89 million in April from 48.67 million a 12 months earlier. Nevertheless, this number is lower than the 49.07 million employed in March.
The typical employment rate in the primary 4 months fell to 94.85% from 95.97% a 12 months ago.
Industries with the most important year-on-year increase in jobs were accommodation and food service activities with 510,000, manufacturing with 259,000, transportation and storage with 189,000, mining and quarrying with 158,000, and education with 107,000.
Regional data also showed that the Davao Region posted the best employment rate at 97.5% in April, while the Bicol Region had the bottom at 93.2%.
Chinabank Research said the Philippines’ labor market remained resilient despite the impact of the Middle East war and slow government infrastructure spending but added that underemployment may proceed to stay high.
“Looking ahead, underemployment may stay elevated within the near term as households and businesses proceed to contend with high inflation,” it said, adding that underemployment rates normally increase in periods of high inflation.
Apart from the transportation sector, Chinabank Research said underemployment also rose in manufacturing and accommodation and food services.
“Notably, these sectors were key drivers of overall employment growth, suggesting that lots of the jobs generated in April may offer insufficient or unstable income. The development sector also saw a rise in underemployed employees, possibly reflecting delays in public infrastructure projects,” it said.
Chinabank Research also noted that jobs within the wholesale and retail trade sector dropped for a tenth straight month, reflecting sluggish consumer confidence.
It said the agriculture sector saw a sixth straight month of jobs decline in April, amid limited fertilizer supply and elevated fuel costs, and will face challenges from El Niño.
University of the Philippines Diliman School of Labor and Industrial Relations Assistant Professor Benjamin B. Velasco said high unemployment rate reflects a labor market that can’t adjust to the economic headwinds.
“Our economy shouldn’t be being resilient as shown by big job losses in wholesale and retail trade, which easily absorbs surplus labor since this sector requires low skills and education and thus wages are low cost and jobs are insecure,” Mr. Velasco told BusinessWorld in a Facebook chat.
He noted the underemployment rate within the Philippines is around 3 times that of the jobless rate, since many Filipinos are unable to search out regular jobs and accept part-time work.
IBON Foundation Executive Director Jose Enrique “Sonny” A. Africa said job insecurity is worsening amid the impact of severe oil shocks.