The year opened with a labor market signal that many Filipinos could feel before the numbers arrived. Government data now confirms that unemployment climbed sharply at the start of 2026.
The Philippine Statistics Authority reported that the unemployment rate reached 5.8% in January, translating to about 2.96 million Filipinos without jobs. At the same time, underemployment also increased, meaning millions of workers with jobs are still seeking additional work or longer hours.
The increase reflects a shift after the holiday hiring period. Employment usually rises during the “ber” months leading to Christmas as businesses expand operations. However, after the holiday season ends, companies often reduce temporary positions and seasonal work.
“After the Christmas season, bumababa talaga ating employment rate,” Deputy National Statistician Divina Gracia del Prado, on seasonal employment patterns that often follow the holiday surge in hiring.
At the same time, several industries saw sharp changes in employment levels. Manufacturing added about 546,000 jobs, while transportation and storage gained 238,000 and fishing and aquaculture added 202,000 positions. Meanwhile, the agriculture and forestry sector recorded the largest drop, losing around 1.76 million jobs.
Weather disturbances also played a role in the decline in agricultural employment. Tropical Storm Ada affected several regions and disrupted work in farming communities. As a result, the agriculture sector experienced the largest contraction among major industries during the month.
Meanwhile, the number of underemployed workers also rose significantly. The underemployment rate climbed to 13.2%, equivalent to 6.35 million workers who are already employed but still looking for additional work or longer hours. In comparison, the figure stood at 8% in December, highlighting a sharp increase in workers seeking extra income.
Looking ahead, officials are watching global developments that could affect the labor market. Rising oil prices and tensions in the Middle East may influence business decisions in the coming months.
Companies often slow hiring or reduce staff when inflation and energy costs increase, which could further affect employment conditions.
