Research group IBON said that the spike in unemployment and part-time and informal work indicates a worsening jobs crisis, with millions of Filipinos unable to find work or forced to make do with insecure and insufficient livelihoods. The group stressed that the government’s market-driven policies—such as relying on foreign investments and ease of doing business—continue to fail in creating enough decent and secure jobs.

Unemployment increased by 551,000 from 2.6 million in July 2025 to 3.1 million in July 2026. The unemployment rate correspondingly increased from 5.3% to 6 percent, the highest in over four years. IBON noted that the real number of unemployed is likely higher, with at least 2 million discouraged Filipino jobseekers excluded from official figures.

Employment rose by 3.2 million, from 46.1 million in July 2025 to 49.2 million in July 2026, while underemployment fell by 473, 000 to 6.3 million. But IBON stressed that the employment increase was overwhelmingly from part-time and informal work rather than full-time jobs.

Part-time workers surged by a huge 2.7 million, from 12.4 million to 15.2 million, accounting for most of the 3.2-million increase in employment. Those with a job, not at work also increased by 192,500 to 515,000. In stark contrast, full-time work grew by just 224,000 to 33.5 million.

There are also other indicators of poor-quality work rising. The self-employed—whose livelihoods are often insecure and low-paying— grew by 2 million, from 11.4 million to 13.4 million. Unpaid family workers also increased by 518,000, from 1.8 million to 2.3 million.

IBON estimates that visibly informal workers surged by 2.4 million from 16.6 million to 19 million in July 2026, accounting for 39% of total employed. This is comprised of the 13.4 million self-employed, 2.1 million in domestic work, and the 3.5 million in own family-operated farm or business (including the 2.3 million unpaid family workers).

The group said that employment gains were concentrated in sectors notorious for low pay and precarious work. Jobs increased in agriculture, forestry and fisheries (by 1.1 million), accommodation and food service activities (by 729,000) and wholesale and retail trade (by 424,000). Yet the average daily basic pay (ADBP) in these sectors—just Php395, Php557, and Php555, respectively—remains far below the Php714 national average.

IBON said that the figures show how millions of Filipinos cannot afford to remain unemployed and are compelled to take whatever work they can find, even if it is part-time, irregular, informal or poorly paid. More people being counted as employed does not mean that Filipino families are becoming more economically secure.

The persistence of poor-quality work helps explain why poverty remains widespread despite reported economic and employment growth. IBON estimates that up to 14.4 million families or 70 million Filipinos are in families earning less than Php22,000 monthly—this means that 62% of the population is poor and low-income. Latest Social Weather Stations data also show that 13.6 million families or 49% consider themselves poor. 

IBON said that decades of market-driven policies, intensified under the Marcos Jr administration, through greater reliance on foreign investment, liberalization and ease of doing business, have failed to deliver meaningful economic development or quality jobs. The group said that a decisive shift toward strengthening domestic agriculture and Filipino industries is necessary to generate decent and sustainable employment.