PSA: 2.58 million Filipinos jobless in March

By Erika Mae P. Sinaking, Reporter

THE Philippine unemployment rate in March rose to 5%, as the number 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 3.9% in the same month a year ago but slightly better than the 5.1% in February.

“The unemployment rate stood at 5% which means 50 out of 1,000 individuals in the labor force did not have jobs or any business in March 2026,” National Statistician Claire Dennis S. Mapa said in a briefing.

PSA data showed the number of unemployed Filipinos stood at 2.58 million in March, up by 645,000 from 1.93 million a year earlier, but fell by 84,000 from the 2.66 million recorded in February.

Mr. Mapa said the oil crisis has put pressure on the labor market, particularly in some sectors such as fishing and aquaculture. He said they are closely monitoring whether the oil price shocks will spill over to other sectors.

“We want to check whether the external shock on fuel and energy will spread to the other sub-sectors… It is not yet conclusive if the effects will spread. We have to wait for the April round to see if it will spread,” he said.

For the first three months, the unemployment rate averaged 5.3%, higher than the 4% average a year ago.

“Compared to 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 a statement.

JOB QUALITY
Meanwhile, job quality improved as the underemployment rate fell to 12.3% in March, from 13.4% in the same month last year. However, it was higher than the 11.8% in February.

The ranks of underemployed Filipinos — those who want longer work hours or an additional job — rose by 192,000 year on year to 6.03 million in March.

Year to date, the average underemployment stood at 12.4%.

The country’s employment rate stood at 95%, lower than the 96.1% in March 2025, but slightly higher than the 94.9% posted in February.

This translated to 49.07 million employed persons in March, up by 1.05 million from the 48.02 million a year ago.

Month on month, the number 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 number of employed fell month on month to 357,000… The decline came from fishing and aquaculture which were affected by high diesel costs,” Mr. Mapa said.

The employment rate averaged 94.7% in 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 part of the total labor force — inched up to 63.3% in March. This translated to a labor force of 51.65 million Filipinos during the month.

This was higher than the LFPR of 62.9%, equivalent to a labor force of 49.95 million a year ago. However, this was lower than the LFPR of 63.8%, equivalent to 52.09 million, in February.

Year to date, the LFPR averaged 63.1%.

Mr. Mapa said the month-on-month decline in the participation rate was primarily due to some individuals choosing to focus on schooling (394,000) and household family duties (142,000) rather than seeking work. He said others also felt there is no work available (34,000).

Data showed fishing and aquaculture had the biggest year-on-year decline in jobs in March, as it shed 189,000 jobs.

Mr. Mapa said manufacturing jobs fell by 149,000, mainly in 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 biggest 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).

On the other hand, the biggest 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 3.02 million. The number 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 8.38 million, followed by construction (184,000) and education (142,000).

In March, the services sector continued to hold the largest share of employment at 63% followed by agriculture at 19.1% and industry at 17.9%.

OUTLOOK
In a statement, Economy Secretary Arsenio M. Balisacan said that the government is moving to fast-track support for the labor market to counter the negative effects of global shocks on the cost of essential goods.

“We commit to tightening the delivery of targeted assistance, such as fuel subsidies and service contracting for transport workers, farmers, and fisherfolk to improve 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 substantial deterioration of economic activity. However, weakening business sentiment — as reflected in the BSP’s latest survey — and the decisions of some firms to temper expansion plans remain risks, potentially leading to a slowdown in hiring and eventually job losses,” Chinabank said.

Chinabank said it expects more job losses in the manufacturing sector in April as “higher input costs led manufacturing firms to scale back their staffing levels.”

University of the Philippines Diliman School of Labor and Industrial Relations Assistant Professor Benjamin B. Velasco said workers are dealing with high inflation and a shortage in quality jobs.

“Fishing and manufacturing are shedding jobs whether month on month or year on year. With El Niño on the horizon and the global economy stagnant, the climate- and supply chain-dependent sectors are very vulnerable,” he told BusinessWorld.

“The ongoing US-Israel war on Iran continues to disrupt the labor market with land-based OFWs being repatriated and Filipino seafarers caught in the crossfire. Moreover, double-digit underemployment accompanies higher unemployment, signaling the dearth of quality employment opportunities,” Mr. Velasco added.

Federation of Free Workers President Jose Sonny G. Matula said in a Viber message that the government should consider a “New Deal”-style approach, expanding public works, housing, and infrastructure programs to create jobs during periods of weak private-sector demand.

Mr. Matula said wage increases and large-scale infrastructure projects not only provide employment but also boost household spending, helping stimulate broader economic activity and strengthen the domestic economy.