Philippine Unemployment Hit 6.0% in July 2026

The Philippine unemployment rate reached 6.0 percent in July 2026. A year earlier it was 5.3 percent, and in April it was 4.7 percent. The Philippine Statistics Authority (PSA) said 1.33 million Filipinos aged 15 to 24 entered the labor market in July.

More people are searching than jobs are opening

The rise came as more people joined the labor force. In June, the PSA tied higher unemployment mainly to fresh graduates entering the market. About half of the 639,000 new entrants were still looking for work that month.

Jobs were still being created, but not fast enough. The employment rate fell to 94.0 percent in July from 94.7 percent a year earlier. Youth unemployment was 18.6 percent, up from 18.1 percent a year earlier and from 13.5 percent in June.

Underemployment is part of the picture. The PSA counted 6.33 million employed Filipinos who wanted more hours or another job. The underemployment rate eased to 12.9 percent from 14.8 percent a year earlier.

The International Labour Organization (ILO) sees a similar pattern across the region. South-Eastern Asia and the Pacific was among the subregions where both the youth unemployment rate and the share of young people not in work, school or training rose between 2023 and 2025. The ILO cautions that a low unemployment rate can hide weaker job quality or rising inactivity. It also reads high unemployment among people aged 20 to 24 as a sign that first-time job entrants face a harder market.

Entry-level hiring is shrinking

LinkedIn data released in April put entry-level hiring down 6 percent year over year. Midlevel hiring fell 10 percent. The accompanying LinkedIn survey sampled workers in the United States.

Employers cite AI as one reason. In a US survey of hiring managers at companies with more than 100 employees, 55 percent said they had moved some entry-level hiring budget to AI. Thirty percent said AI had reduced their need for graduate hires. Forty-five percent said one senior worker plus AI now does the work of several entry-level graduates.

The numbers do not all point down. The same survey found 65 percent of hiring managers planned to hire as many 2026 graduates as last year, or more. A US forecast built on small-business payroll data expects 974,000 graduates to be hired between April and September 2026, up from 962,000 last year. The mix of roles is changing, though. Software engineer, recruiter, financial analyst and sales development representative were among the biggest entry-level titles of 2022, and all of them are shrinking as a share of graduate hiring.

Young workers are building their own routes

A LinkedIn survey of 1,000 US workers aged 18 to 29 found that 21 percent had started a business or side hustle to kickstart their careers. Twenty-two percent were building apps, websites or other projects to show their skills. Thirty-two percent had taken roles outside their field to build in-demand skills. Seventy-two percent were considering skilled trades, and 12 percent had already switched.

A survey of 1,111 working Filipinos points the same way. Those who had considered changing careers named their next move. Starting a business drew 28.78 percent. A completely different industry drew 21.56 percent. Self-employment or freelancing drew 16.51 percent. The survey covered working Filipinos in general, not only those in their 20s.

The government is adding entry points too. The Department of Labor and Employment said it will continue the Government Internship Programme and the Special Programme for Employment of Students. From September, it will also hold monthly Trabaho Agad job fairs nationwide.