The Philippine government is stepping up its support for the country’s workforce amid rising global uncertainties, according to the Department of Economy, Planning, and Development (DEPDev).
The latest Labor Force Survey (LFS) from the Philippine Statistics Authority (PSA) released today (March 13) reported that the country’s unemployment rate rose to 5.8 percent in January 2026. This is higher than the 4.3 percent recorded in January 2025. On the other hand, the underemployment rate slightly improved to 13.2 percent from 13.3 percent during the same period.
Meanwhile, the country’s labor force participation rate (LFPR) eased to 62.3 percent in January 2026, compared to 63.9 percent in the same month last year.
“Given elevated geopolitical tensions and global uncertainties, strategic policies are needed to bolster labor market resilience. The government continues to pursue a comprehensive response to support affected workers in the short term while fostering a dynamic and robust labor market in the medium and long term,” DEPDev Secretary Arsenio M. Balisacan said.
Moreover, the government is strengthening safety nets to provide immediate relief to affected workers amid the ongoing conflict in the Middle East. This includes targeted fuel subsidies for transport operators, farmers, and fisherfolk, as well as measures to ease commuting costs and maximize existing emergency employment assistance programs such as the Tulong Panghanapbuhay sa Ating Disadvantaged/Displaced Workers and other livelihood programs.
The government is also leveraging digital technologies to enhance labor market programs, as seen in the Technical Education and Skills Development Authority’s (TESDA) recently launched Skills Passport, which facilitates job-skills matching. Moreover, this initiative can inform the design of skill training programs to equip jobseekers, including repatriated Overseas Filipino Workers (OFWs), with capabilities for higher-value jobs. In addition, the government is strengthening its reintegration programs for OFWs to help affected workers find gainful employment or entrepreneurial opportunities.
Strategies to promote labor market resilience include diversifying the economy’s growth drivers, attracting investment in high-productivity sectors, addressing constraints such as high
energy costs and low technology adoption, and facilitating the transition to renewable energy to reduce dependence on imported fuels.
“Our priority is clear: create more and better jobs at home, strengthen industries, equip our workers with the skills needed for higher-value employment, and ensure that those affected by global disruptions, including OFWs, can transition smoothly into productive opportunities here in the Philippines,” the country’s chief economist said.
Meanwhile, the Philippine government is also seeking to expand high-quality job opportunities for women, whose participation in the labor market remains low due to barriers such as domestic responsibilities and limited access to flexible work arrangements.
Based on the January 2026 LFS, decreased participation was observed across all age groups, with the youth cohort citing schooling (+886,000) as the primary reason for not entering the labor force. Women of prime working age cited family responsibilities (+599,000), while the older cohort mentioned age- or mobility-related limitations (+279,000) as reasons for not participating.
In partnership with the Australian government through Investing in Women, DEPDev recently launched the “Juana Trabaho” initiative, a strategic framework and action plan aligned with the Philippine Development Plan 2023-2028 to increase women’s participation in the workforce.
