The September surge in Philippine unemployment is the worst among Southeast Asian countries and exposes how millions of Filipinos are struggling to eke out a living amid a worsening jobs crisis under Pres. Marcos Jr, said research group IBON. The administration’s longstanding overreliance on attracting foreign investments and market-driven upskilling of Filipino workers has failed to deliver substantial, quality employment.
The number of employed Filipinos increased by 721,000 year-on-year, from 49.6 million in September 2025 to 50.3 million in September 2026. However, this was offset by a much larger 909,000 surge in unemployed Filipinos, from nearly 2 million to 2.9 million. Underemployment also rose slightly by 34,000 to 5.6 million. IBON said that these figures point to a worsening jobs crisis despite reported employment gains.
The additional 909,000 unemployed has raised the Philippine unemployment rate to 5.4%, making this the highest among its Southeast Asian neighbors, based on latest available figures. This is followed by Indonesia (4.8%), Malaysia (2.9%), Vietnam (2.2%), Singapore (2%), and Thailand (0.9%). IBON noted though that the actual number of jobless Filipinos is likely much higher, considering discouraged and other workers excluded from official figures and no longer counted as part of the labor force. As it is, those not in the labor force (NILF) grew by 820,000 to 29.2 million.
IBON also observed that employment has become increasingly concentrated in part-time, insecure and temporary work. Part-time workers substantially increased by 719,000, from 15.1 million to 15.8 million, while those in full-time work decreased by 235,000, from 34.2 million to 33.9 million. Those with jobs but not at work also rose by 237,000, from 356,000 to 593,000. The group said that this reflects how many Filipinos are forced to scrape for whatever work or income they can find.
IBON estimates that visibly informal workers went up by 892,000, from 19.9 million to 20.8 million, comprising 41.4% of total employed persons. This was largely driven by increases in self-employed persons (455,000), unpaid family workers (413,000), and domestic workers (97,000). Including workers in informal private establishments increases informal jobs to as much as 37.2 million or 74% of all employed Filipinos. Meanwhile, wage and salary work in private establishments that are usually considered as relatively stable and regular employment, declined by 306,000, from 25 million to 24.7 million.
Young Filipinos are bearing the brunt of the jobs crisis, with many unable to find decent work as they enter the labor force. Unemployment among those aged 15-24 increased by 382,000, from 741,000 to 1.1 million, driving the youth unemployment rate up from 11.6% to 15.3%, or almost triple the headline 5.4% unemployment rate.
The weak growth of jobs in productive sectors further underscores the government’s failure to strengthen the foundations of the economy so that it can create enough decent work. Agricultural employment rose by just 86,000 to 10.4 million, while manufacturing employment barely grew by 19,000 to 3.5 million.
IBON said that the jobs crisis will persist as long as the Marcos administration remains fixated on attracting foreign investments and shaping Filipino workers’ skills to serve profit- and market-driven demands. These priorities have long failed to deliver the government’s promised quality and substantial employment.
Resolving the jobs crisis requires fundamentally and boldly changing the direction of the economy, and overhauling the bankrupt mindset of the economic managers. The people need a government that prioritizes developing the economy by strengthening domestic agriculture and Filipino industries to create substantial decent employment. These sectors cannot be left to the so-called free market and should be given ample protection and support. Filipinos should be able to stay in the country, find secure and adequate work, and put their talent and skills towards national development, said the group. ###
