Philippine underemployment hits near 3-year high in April

By Erika Mae P. Sinaking, Reporter

THE PHILIPPINES’ underemployment rate climbed to a near three-year high in April, even as the joblessness fell to its lowest level in four months, according to the Philippine Statistics Authority (PSA).

The latest Labor Force Survey by the PSA showed that the underemployment rate surged to 15.2% in April 2026, up from 14.6% in the same month a year ago and the 12.3% in March 2026.

National Statistician Claire Dennis S. Mapa said the underemployment rate of 15.2% was the highest since July 2023.

The ranks of underemployed Filipinos — those who want longer work hours or an additional job — increased to 7.41 million in April from 7.081 million in the same month a year ago and from 6.031 million in March.

Mr. Mapa said underemployment was evident in the transportation and storage sector, particularly among drivers of jeepneys, taxis, buses, and ride-hailing services. Drivers may have been forced to cut their work hours due to soaring pump prices since the start of the US-Iran war in late February.

The underemployment rate averaged 13.12% in the first four months, up from 12.85% in the same period year ago.

The average 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 cope with the rising cost of living. Some jobseekers may have also accepted part-time or lower-paying roles to secure income. At the same time, firms may have reduced working hours to manage higher operating costs, prompting workers to look 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 same month last year but easing from the 5% in March. This was the lowest jobless rate in four months or since the 4.4% in December 2025.

The number of unemployed Filipinos was estimated at 2.41 million in April, 351,000 higher than the 2.06 million recorded a year ago.

PSA data showed wholesale and retail trade; repair of motor vehicles and motorcycles posted the biggest 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 in the 15-24 and 25-34 age groups.

“The reason for the year-on-year increase in the unemployed is that they were truly looking for work but could not find any,” Mr. Mapa told a news briefing in Filipino, adding that many were also waiting for results from job applications.

For the first four months of the year, the jobless rate averaged 5.15%, higher than the 4.02% a year ago.

The labor force participation rate (LFPR) fell to 62.7% in April from 63.7% a year ago and 63.3% in March. This was equivalent to 51.3 million Filipinos aged 15 years and over who were part of the labor force, slightly higher than the 50.74 million a year ago.

For youth aged 15 to 24, the LFPR stood at 31.8% in April, unchanged from last year.

The number 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 year ago.

CHALLENGES
In a statement, Department of Economy, Planning, and Development Secretary Arsenio M. Balisacan said that the government is working to broaden market access and attract investments in emerging industries.

“The latest labor market indicators reflect both the challenges confronting the economy and the resilience of Filipino workers and businesses,” he said

Mr. Balisacan said the 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 workers 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 total number of employed Filipinos increased to 48.89 million in April from 48.67 million a year earlier. However, this number is lower than the 49.07 million employed in March. 

The average employment rate in the first four months fell to 94.85% from 95.97% a year ago.

Industries with the largest 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 highest employment rate at 97.5% in April, while the Bicol Region had the lowest 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 continue to remain high.

“Looking ahead, underemployment may stay elevated in the near term as households and businesses continue to contend with high inflation,” it said, adding that underemployment rates usually increase during periods of high inflation.

Aside 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 many of the jobs generated in April may offer insufficient or unstable income. The construction sector also saw an increase in underemployed workers, possibly reflecting delays in public infrastructure projects,” it said.

Chinabank Research also noted that jobs in the wholesale and retail trade sector dropped for a 10^th 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 may 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 cannot adjust to the economic headwinds.

“Our economy is not 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 cheap and jobs are insecure,” Mr. Velasco told BusinessWorld in a Facebook chat.

He noted the underemployment rate in the Philippines is around three times that of the jobless rate, since many Filipinos are unable to find steady jobs and settle for part-time work.

IBON Foundation Executive Director Jose Enrique “Sonny” A. Africa said job insecurity is worsening amid the impact of severe oil shocks.