Philippines unemployment drops to 5.3% in August as agriculture adds jobs
The unemployment rate fell to 5.3% in August 2026, with the biggest job gains coming from agriculture and forestry.
According to the Philippine Statistics Authority, the unemployment rate eased to 5.3% in August 2026, a drop from July's 6% level. The number of unemployed fell to about 2.77 million, while new entrants to the labor force declined to roughly 897,000, half of July's influx. Agriculture and forestry recorded the largest monthly increase, creating around 847,000 positions, driven largely by rice and sugarcane production.
Construction added about 390,000 jobs and wholesale and retail trade contributed another 227,000. In contrast, manufacturing employment fell to 3.16 million, with the electronics sector hit by global market challenges and seasonal factors. Underemployment improved to 11.9%, though average weekly hours slipped to 39.2 due to bad weather.
Why it matters
The decline signals a modest recovery in the Philippine labor market, especially in agriculture, but highlights ongoing manufacturing weakness.
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