The Philippine Statistics Authority (PSA) reported Wednesday that the Labor Force Survey showed that the unemployment rate stood at 5 percent in March, higher than 3.9 percent in the same month last year but lower than the 5.2 percent in February 2026. This brings the year-to-date unemployment rate to 5.3 percent, which is above the target range of 4-5 percent for 2026-2028.

Compared to its Asian peers, the Philippines’ unemployment rate is lower than that of China (5.4 percent) and India (5.1 percent), but higher than Malaysia’s (2.9 percent) and Vietnam's (2.2 percent).

Underemployment decreased to 12.3 percent in March of this year from the 13.4 percent recorded in March 2025. An additional 1.7 million individuals entered the labor force, increasing the labor force participation rate (LFPR) to 63.3 percent from 62.9 percent a year earlier.

Economy, Planning and Development Secretary Arsenio Balisacan said that the government will ensure business and service continuity by accelerating strategic interventions, as prolonged conflict in the Middle East raised the prices of fuel and other inputs, adversely affecting production and employment.

“We commit to tightening the delivery of targeted assistance, such as fuel subsidies and service contracting for transport workers, farmers, and fisherfolk to improve alignment and expedite implementation. We will leverage technologies such as e-wallets and other digital platforms, where applicable, to ensure efficient delivery channels,” he said.

The government also introduced regulatory relief such as a temporary grace period of up to 6 months for loan payments and a one-year deferral for agricultural loans to alleviate conditions for farm operators and other small businesses. Financing programs, including DOLE’s Adjustment Measures Program, Landbank’s REAL Energy+ Lending Program, and the DTI-Small Business Corporation, were also rolled out to provide further financial assistance. DEPDev Public Relations