The Philippines’ unemployment rate climbed to 5.8 percent in January 2026, up from 4.3 percent in the same month last year, according to the latest labor force data released by the Philippine Statistics Authority (PSA).

The January figure translates to about 2.96 million unemployed Filipinos, higher than the 2.26 million jobless recorded in December 2025. It also marked a significant increase compared with January 2025, when the unemployment rate was 4.3 percent, or roughly 2.17 million unemployed workers.

This latest reading represents the highest unemployment rate since June 2022, signaling a slowdown in labor market conditions at the start of the year. In practical terms, the 5.8 percent unemployment rate means that 58 out of every 1,000 members of the labor force were without jobs during the month.

Historical data show that the country’s unemployment rate has averaged 7.49 percent from 1986 to 2026. The rate peaked at 17.6 percent in April 2020 during the height of the COVID-19 pandemic, while the lowest recorded rate was 3.1 percent in December 2023.

Employment Declines

Meanwhile, the employment rate fell to 94.2 percent in January 2026, down from 95.7 percent in January 2025. It was also lower than the 95.0 percent recorded in October 2025.

In terms of total employment, the number of Filipinos with jobs dropped to 47.94 million in January 2026, compared with 48.49 million in January 2025.

The data suggest that around half a million workers lost their jobs compared with the same period last year, reflecting both the increase in unemployment and the decline in overall employment levels.