PHILIPPINES — The Philippines recorded a significant improvement in its labor market in August 2026, with more Filipinos finding work and fewer remaining unemployed or underemployed. The positive data offers encouraging signs of economic recovery as the country approaches the holiday season.
Employment Rises, Unemployment Falls
The number of employed Filipinos climbed to 49.79 million in August from 49.21 million in July, according to the Philippine Statistics Authority. Unemployment fell to 5.3 percent from 6 percent, while underemployment declined to 11.9 percent from 12.9 percent. These figures represent meaningful gains for workers and their families.
The improvement was partly driven by fewer new entrants joining the labor force after July's surge of fresh graduates. Around 897,000 Filipinos joined the labor force in August, down from 1.5 million in July. Of these, approximately 470,000 found employment, a testament to the economy's ability to absorb new workers.
Government Welcomes Positive Labor Data
Department of Labor and Employment Secretary Francis Tolentino described the August results as encouraging. He emphasized that the increase in employment and decline in unemployment reflect continued activity in the labor market. His statement signaled optimism for the months ahead.
Tolentino vowed to sustain and enhance job facilitation efforts nationwide. He assured the public that DOLE will continue conducting job fairs and strengthening pathways for employment assistance. "We cannot be complacent," he said, stressing the need to connect jobseekers with sustainable work opportunities.
Key Sectors Drive Employment Growth
Agriculture and forestry posted the largest month-on-month increase, adding around 847,000 workers. This growth came largely from rice and sugarcane production, highlighting the sector's vital role in rural livelihoods. Construction contributed another 390,000 jobs, while wholesale and retail trade gained 227,000 positions.
These gains demonstrate the broad-based nature of the employment expansion. From farms to construction sites to retail stores, Filipinos are finding opportunities across diverse industries. The growth in agriculture is particularly encouraging for rural communities that depend on farming for their income.
Underemployment Improves as More Workers Find Full-Time Roles
Underemployment, which measures employed persons still seeking more work, fell to 11.9 percent in August. This means around 5.9 million workers still wanted additional hours or another job, but the number improved from July's 12.9 percent. The decline suggests that more Filipinos are securing adequate working hours.
The PSA noted that average working hours fell to 39.2 hours per week from 40.6 hours in July, partly due to bad weather. However, the overall trend remains positive, with the government expecting employment to pick up further as businesses hire seasonal workers for Christmas.
Looking Ahead With Optimism
Labor coalition Sentro welcomed the improvement but called for continued efforts to ensure decent wages and quality jobs. Their concerns about purchasing power and inflation are valid, and the government has acknowledged these challenges. The push for a national wage increase and stronger industrial policy reflects a shared desire for inclusive growth.
As the year progresses, the focus remains on sustaining the momentum. With seasonal hiring expected to rise, the coming months hold promise for even more Filipinos to find meaningful work. The August labor data provides a solid foundation for a brighter economic future.
