Jobless rate further eases to 5% in March

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May 7, 2026 | 12:00am

About 2.58 million Pinoys remain unemployed

MANILA, Philippines —  Unemployment in the country declined in March from the previous month as fewer Filipinos were part of the active workforce, according to the Philippine Statistics Authority.

Preliminary results of the PSA’s Labor Force Survey showed that the unemployment rate declined to five percent in March from 5.1 percent in February.

However, the March jobless rate was higher than the 3.9 percent recorded in the same month last year.

In terms of magnitude, the jobless count declined to 2.58 million in March from 2.66 million in February, but was higher than the 1.93 million in March last year.

For the first quarter, the unemployment rate stood at 5.3 percent, above the target range of four to five percent for 2026 to 2028.

In a press conference, National Statistician Dennis Mapa said the improvement in the unemployment rate in March compared to the previous month was due to the decline in labor force participation, or the number of people who were either employed or actively seeking work.

PSA data showed that the country’s labor force participation rate in March was at 63.3 percent, down from the previous month’s 63.8 percent, but higher than the 62.9 percent registered in March 2025.

This translates to 51.65 million Filipinos who were either working or actively looking for a job in March, lower than the previous month’s 52.09 million, but higher than the 49.95 million in March 2025.

Meanwhile, the employment rate was at 95 percent in March, nearly unchanged from the previous month’s 94.9 percent, but down from 96.1 percent in March 2025.

This is equivalent to 49.07 million employed Filipinos in March, down from 49.43 million in February, but up from 48.02 million in March 2025.

The underemployment rate rose to 12.3 percent in March   from the previous month’s 11.8 percent, but lower than the 13.4 percent estimate in March 2025.

There were 6.03 million underemployed Filipinos or those who want an additional job or work hours in March. This is up from the previous month’s 5.84 million, but down from 6.44 million in March last year.

Industries with the largest month-on-month increases in employment in March were agriculture and forestry (486,000); construction (184,000); education (142,000); information and communication (96,000) and professional, scientific and technical activities (91,000).

On the other hand, those with the biggest job cuts in March from the previous month were fishing and aquaculture (420,000), other service activities (299,000), manufacturing (217,000), human health and social work activities (154,000) and finance and insurance activities (116,000).

Commenting on the data, the Department of Economy, Planning and Development (DEPDev) said the government would continue measures to preserve jobs and efforts to support those displaced by the Middle East conflict.

As the higher prices of fuel and other inputs stemming from the Middle East conflict have affected output and employment, DEPDev Secretary Arsenio Balisacan said the government would accelerate interventions to ensure business continuity.

“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. We will leverage technologies such as e-wallets and other digital platforms, where applicable, to ensure efficient delivery channels,” he said.

Relief measures being implemented include a temporary six-month grace period for loan payments and one-year deferral for agricultural loans.

The government has also rolled out financing programs under the  Department of Labor and Employment, Land Bank of the Philippines and the Department of Trade and Industry’s Small Business Corp. to support businesses.

Under the Unified Package for Livelihoods, Industry, Food and Transport framework, the government is also providing support to overseas Filipino workers (OFWs) affected by the Middle East crisis.

“We remain committed to ensuring the safe return and recovery of OFWs affected by the Middle East crisis through coordinated support across relevant agencies. They continue to receive assistance through reintegration programs, including livelihood assistance, skills training and financial aid,” Balisacan said.