MANILA, Philippines – The Philippines' labor market experienced a slight reprieve in February as the unemployment rate fell to 5.1%, according to data released by the Philippine Statistics Authority (PSA). This marks an improvement from January's 5.8%, which had been the highest level since June 2022.
In raw numbers, the count of unemployed Filipinos dropped to 2.66 million in February, down from 2.96 million the previous month. However, the situation remains challenging compared to a year earlier, when the unemployment rate stood at a lower 3.8%, representing 1.94 million jobless individuals.
"February saw a modest improvement from January, but conditions remained markedly weaker year on year. Job gains were largely broad-based, though transport and logistics workers face rising downside risks," noted economists at Chinabank Research, pointing to potential economic ripple effects from ongoing global tensions.
The improvement was partly driven by an increase in labor force participation, which rose to 63.8% in February, equating to 52.09 million Filipinos actively working or seeking employment. Consequently, the employment rate edged up to 94.9%, covering approximately 49.43 million people.
Sectoral analysis reveals that the wholesale and retail trade industry led monthly job gains, adding 658,000 workers to reach 9.9 million. Significant contributions also came from agriculture and forestry, which grew by 380,000 to 7.9 million, and accommodation and food services, which expanded by 361,000 to 3.16 million.
A positive development was the decline in the underemployment rate to 11.8%, meaning about 5.84 million employed individuals were seeking additional work or longer hours—down from 13.2% or 6.35 million in January.
Despite these gains, analysts caution that labor market conditions remain fragile. Chinabank Research warned that the energy shock triggered by geopolitical conflicts could soon spill over into the job market, particularly affecting transport and logistics workers who are directly exposed to higher fuel costs.
"The full impact of the recent oil price shock has yet to be captured in the latest labor force data. Nonetheless, we expect conditions to deteriorate more noticeably from March onward," the economists stated.
They further noted that should elevated energy prices persist, related service sectors could also face negative repercussions. The transport sector, already bearing the brunt of rising fuel costs, is seen as especially vulnerable, with reports indicating some jeepney drivers have ceased operations and are exploring alternative income sources.