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Philippine unemployment rises to 5.4% in September as new job seekers outpace hiring

Published Data as of PhilippinesMacro & households
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Key points

Implications for lenders

With unemployment at 5.4% and a year-on-year change of −271,000 in construction employment, lenders may see more applications from people without steady pay. Verifying current employment and income at origination, and monitoring early arrears among recent borrowers, can help limit losses.

Implications

ExecutivesRising unemployment among new entrants and construction workers may lower approval rates for first-time borrowers; underwriting may need more weight on employment stability.
InvestorsA jobless rate of 5.4% alongside fast consumer-loan growth is a reason to watch arrears in salary-based and small-ticket books over the next two quarters.
OperatorsShifts from construction into food and accommodation work can mean less regular income; repayment schedules and collection timing may need to fit irregular pay.

Facts

The Philippine Statistics Authority (PSA) reported on 6 November that the unemployment rate was 5.4% in September 2026, up from 5.3% in August 2026 and 3.8% in September 2025. 1 The number of unemployed was 2.86 million, up from 2.77 million in August 2026 and 1.96 million in September 2025. 2 Employment was 50.32 million, up from 49.79 million in August 2026 and 49.60 million in September 2025. 3 Labour force participation was 64.5%, unchanged from September 2025. 4

The labour force grew by 1.63 million in a year (labour force of 53.19 million in September 2026 vs 51.56 million a year earlier). 5 National Statistician Claire Dennis Mapa said 721,000 of them found jobs and 909,000 did not. 6

By industry, construction employment changed −271,000 year on year, to 4.70 million workers. 7 Accommodation and food services added +834,000. 8 The underemployment rate was 11.0%, down from 11.9% in August 2026 and 11.1% in September 2025. 9 Wage and salary workers made up 63.0% of the employed. 10

Analysis

Time series: the unemployment rate was 6.0% in July, 5.3% in August and 5.4% in September. Employment is still rising, so the higher jobless rate reflects more people looking for work than jobs being created, not a fall in total jobs.

Cross-country: Malaysia's unemployment rate was 2.9% in August. In the Philippines the job losses are concentrated in construction, which matches the fall in public construction in the national accounts, while gains are in lower-paid services such as accommodation and food.

Counterpoints and uncertainties

Monthly Labor Force Survey figures are volatile and can swing with seasonal work and survey timing; one month does not make a trend. Employment still grew year on year, and the drop in underemployment to 11.0% points the other way. Figures for new labour-force entrants come from the statistician's remarks as reported, and the PSA release gives the detail.

Key figures

  1. Unemployment rate (PSA): 5.4% (up from 5.3% in August 2026 and 3.8% in September 2025). Unemployed persons as % of the labour force, Labor Force Survey. Philippines, persons aged 15 and over. Basis date: 30 Sep 2026. Source: GMA News: PH unemployment climbs to 5.4% in September 2026 (2026-11-06)
  2. Unemployed persons: 2.86 million (up from 2.77 million in August 2026 and 1.96 million in September 2025). Number of unemployed persons, Labor Force Survey. Philippines. Basis date: 30 Sep 2026. Source: GMA News: PH unemployment climbs to 5.4% in September 2026 (2026-11-06)
  3. Employed persons: 50.32 million (up from 49.79 million in August 2026 and 49.60 million in September 2025). Number of employed persons, Labor Force Survey. Philippines. Basis date: 30 Sep 2026. Source: Philstar: Jobless Pinoys climb to 2.86 million (2026-11-07)
  4. Labour force participation rate: 64.5% (unchanged from September 2025). Labour force as % of population aged 15 and over, Labor Force Survey. Philippines. Basis date: 30 Sep 2026. Source: GMA News: PH unemployment climbs to 5.4% in September 2026 (2026-11-06)
  5. Increase in the labour force, year on year: 1.63 million (labour force of 53.19 million in September 2026 vs 51.56 million a year earlier). Year-on-year increase in the labour force, Labor Force Survey. Philippines. Basis date: 30 Sep 2026. Source: Philstar: Jobless Pinoys climb to 2.86 million (2026-11-07)
  6. Labour-force additions without jobs: 909,000. Part of the year-on-year labour-force increase that was unemployed, per the National Statistician. Philippines. Basis date: 30 Sep 2026. Source: Philstar: Jobless Pinoys climb to 2.86 million (2026-11-07)
  7. Change in construction employment, year on year: −271,000 (to 4.70 million workers). Year-on-year change in persons employed in construction, Labor Force Survey. Philippines. Basis date: 30 Sep 2026. Source: GMA News: PH unemployment climbs to 5.4% in September 2026 (2026-11-06)
  8. Change in accommodation and food services employment, year on year: +834,000. Year-on-year change in persons employed in accommodation and food service activities, Labor Force Survey. Philippines. Basis date: 30 Sep 2026. Source: Daily Tribune: Unemployment rate rises to 5.4% — PSA (2026-11-06)
  9. Underemployment rate: 11.0% (down from 11.9% in August 2026 and 11.1% in September 2025). Underemployed persons (wanting more hours or work) as % of employed persons. Philippines. Basis date: 30 Sep 2026. Source: GMA News: PH unemployment climbs to 5.4% in September 2026 (2026-11-06)
  10. Wage and salary workers, share of employed: 63.0%. Wage and salary workers as % of employed persons, Labor Force Survey. Philippines. Basis date: 30 Sep 2026. Source: GMA News: PH unemployment climbs to 5.4% in September 2026 (2026-11-06)

Sources

  1. GMA News: PH unemployment climbs to 5.4% in September 2026 (2026-11-06)
  2. Philstar: Jobless Pinoys climb to 2.86 million (2026-11-07)
  3. Daily Tribune: Unemployment rate rises to 5.4% — PSA (2026-11-06)
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A Japanese version of this article is available: 日本語版

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