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Rise in unemployment seasonal, DOLE says
Rise in unemployment seasonal, DOLE says
Seasonal Shifts DOLE Explains Rise in Unemployment Rate
As the new year begins, many are hoping for a fresh start and a return to normalcy in their careers. However, recent data from the Department of Labor and Employment (DOLE) may have caught some Filipinos off guard. The unemployment rate has risen to 5.4 percent, with approximately 2.96 million individuals without jobs as of January 2026.
But before jumping to conclusions, let's take a closer look at what's behind this increase in unemployment. According to DOLE, the sudden rise is largely attributed to seasonal factors, specifically the end of temporary employment arrangements that were common during the holiday season.
The Holiday Effect
During peak holiday seasons, many businesses and establishments hire temporary workers to cater to increased demand for goods and services. These short-term jobs often come with flexible hours and may involve working long hours or on weekends. As the holiday season ends, these temporary workers are no longer needed, resulting in a natural decrease in employment numbers.
In January 2026, the Labor Force Survey (LFS) of the Philippine Statistics Authority (PSA) recorded a decline of 1.489 million jobs, mainly due to reductions in wholesale and retail trade, as well as service and sales workers – sectors that are heavily reliant on short-term hiring during peak holiday seasons.
Underemployment on the Rise
While unemployment rates may be higher than expected, underemployment is also increasing. The LFS reported an underemployment rate of 13.2 percent, or approximately 6.35 million workers, in January 2026 – a significant increase from December's 8 percent.
This surge in underemployment is largely attributed to reduced working hours following the peak retail and tourism season. Some workers may return to part-time or intermittent work while seeking additional or more stable employment.
A Brighter Outlook
Despite these seasonal fluctuations, DOLE remains optimistic about the labor market's overall performance. The department points out that the number of wage and salary workers has increased significantly by 2.408 million – from 30.555 million in January 2025 to 32.963 million in January 2026.
This growth is attributed to sustained employment generation across sectors, solid macroeconomic fundamentals, and progress toward more stable and formal employment.
DOLE's Response
Labor Secretary Bienvenido Laguesma has vowed to intensify labor market programs under the Philippine Labor and Employment Plan and the Trabaho Para sa Bayan Plan. These initiatives include
1. Reskilling and Upskilling Expanded training programs to equip workers with new skills and adaptability.
2. Youth Employability Programs Targeted initiatives to enhance employability among young Filipinos.
3. Targeted Job Fairs Specialized job fairs in key sectors, such as construction, to connect job seekers with employers.
4. Livelihood and Entrepreneurship Support Strengthened support for entrepreneurs and micro-entrepreneurs.
As we move forward into 2026, it's essential to keep a balanced perspective on the labor market's performance. While seasonal fluctuations may affect employment numbers, DOLE's efforts to strengthen the workforce and create more opportunities will help mitigate any negative impacts.
By understanding the underlying factors driving these changes, we can better navigate the challenges ahead and work together toward a brighter future for all Filipinos.
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