Unemployment falls below 5 percent in April
MANILA, Philippines — The country’s labor market held up better than expected in April as unemployment fell below 5 percent for the first time this year, although a surge in underemployment pointed to mounting pressure on workers amid the oil price shock.
Preliminary data from the Philippine Statistics Authority (PSA) showed the number of jobless Filipinos fell to 2.41 million in April from 2.58 million in March. This translated to an unemployment rate of 4.7 percent, down from 5 percent previously and marking the third straight month of improvement.
On a year-on-year basis, however, labor market conditions remained weaker.
The number of unemployed Filipinos was higher than the 2.06 million recorded in April 2025, when the unemployment rate stood at 4.1 percent. The latest reading was also the highest April unemployment rate since 2022, when it reached 5.7 percent.
READ: Unemployment rate eased to 5% in March
But economists said a more telling indicator of labor market conditions now lies in underemployment, or the number of Filipinos seeking additional work or longer working hours to boost their income.
The number of underemployed workers jumped to 7.41 million (15.2 percent) in April from 6.03 million (12.3) percent in March. This was the highest underemployment rate since July 2023, when it stood at 15.9 percent.
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“The Philippines’ labor market, as measured by the unemployment rate, remained robust despite the impact of the Middle East conflict and sluggish growth brought by slower government spending in infrastructure,” economists at Chinabank Research said.
Iran war effect
“However, underemployment showed signs of weakness as Filipino workers deem income insufficient to cover rising commodity prices,” they added, noting that underemployment may stay elevated amid high inflation.
State statisticians said the increase in underemployment was primarily driven by workers in the transportation and storage sector, particularly passenger land transport operators such as jeepney, taxi and motorcycle ride-hailing drivers.
Chinabank economists pointed out that the spike in fuel prices likely forced some transport workers to shorten operating hours, prompting them to seek supplementary sources of income. Manufacturing, accommodation and food service activities, and construction also contributed to the rise in underemployment.
On the other hand, the number of employed Filipinos slightly fell to 48.89 million in April from 49.07 million in March, although the employment rate improved to 95.3 percent from 95 percent. The labor force participation rate dipped to 62.7 percent, equivalent to 51.3 million Filipinos in the labor force, from 63.3 percent or 51.65 million in March. /cb
