The Philippines' unemployment rate has increased to 4.8% in May, driven by significant job losses in the agriculture sector due to adverse weather conditions. This rise in unemployment outweighed employment gains in services and other industries. The country's unemployment rate has been steadily increasing, up from 3.9% a year earlier and 4.7% in April. The number of jobless individuals has also risen to 2.5 million.
The decline in agricultural employment is attributed to a drop in the number of employed persons in agriculture and forestry. Specifically, employment in paddy rice farming decreased by 734,000 workers from the previous year, while corn cultivation lost 428,000 jobs. The employment rate has slipped to 95.2% from 96.1% a year earlier and 95.3% in April. Total employment has reached 49.63 million, up by 738,000 from the previous month but down 663,000 from May last year.
Services remain the largest employer in the country, accounting for 61.8% of total employment, followed by agriculture at 19.9% and industry at 18.3%. Administrative and support service activities have posted the biggest annual employment gain, adding 329,000 jobs, driven mainly by call centers and private security services. This growth in services has helped to offset some of the job losses in agriculture.
Despite the rise in unemployment, job quality has improved, with the underemployment rate falling to 12.2% from 13.1% a year earlier and 15.2% in April. This decline is attributed to fewer workers seeking additional hours, with average weekly hours worked increasing to 41.1 hours from 39.8 hours a year earlier and 40.2 hours in April. More people are working longer hours, with about 34.36 million workers logging more than 40 hours during the week.
The average unemployment rate for the first five months of 2026 has risen to 5.1% from 4% a year earlier. This trend is a concern, and the country will need to focus on creating more jobs and improving employment opportunities to reduce the unemployment rate. The growth in services and improvement in job quality are positive signs, but more needs to be done to address the challenges facing the agricultural sector and the overall labor market.
