The Philippines’ unemployment rate rose to 5.8 percent in January 2026, the highest in more than three years, with 2.96 million Filipinos jobless, while underemployment also increased as the labor market cooled after the holiday season.

The Philippine Statistics Authority (PSA) reported that the January figure was up from 4.4 percent in December 2025 and 4.3 percent in January 2025, marking the sharpest rise since June 2022 when unemployment hit 6 percent. The increase translates to nearly 800,000 more Filipinos without jobs compared to the same period last year.

PSA Assistant Secretary Divina Gracia Del Prado explained that the surge was largely due to seasonal factors, as labor demand typically slows after the holidays. “The increase in joblessness came amid a seasonal decline in labor demand following the holidays, when economic activity typically slows,” she said.

Underemployment also worsened, with more Filipinos reporting that they were working fewer hours than they wanted or were seeking additional jobs to supplement their income. This reflects the challenges of securing stable and sufficient employment despite headline gains in labor force participation.

The total labor force in January stood at 50.89 million, with an employment rate of 94.2 percent. However, the quality of jobs remains a concern, as many workers are in informal or low-paying sectors.

Economists noted that the rise in unemployment and underemployment could add pressure to household budgets already strained by rising fuel prices and inflation. The slowdown in hiring also raises questions about the resilience of the Philippine economy amid global uncertainties.

The January figures represent the highest joblessness recorded under the Marcos Jr. administration, highlighting the need for stronger measures to stimulate job creation and protect vulnerable workers.

Government officials said they are monitoring the situation closely and will continue to push for programs that expand employment opportunities, particularly in sectors such as manufacturing, agriculture, and services. However, analysts warn that structural issues, including reliance on seasonal work and informal labor, must be addressed to ensure long-term stability in the job market.

The PSA will release updated labor force data in the coming months, which will show whether the January spike was a temporary seasonal effect or the start of a more persistent trend in rising unemployment and underemployment.