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Manila Bulletin devider Philippines devider National devider Post-holiday slump hits workers but formal jobs rise—DOLE

Post-holiday slump hits workers but formal jobs rise—DOLE

Published Mar 16, 2026 11:32 am

At A Glance

  • 1.489 million jobs lost from December 2025 to January 2026 as temporary holiday employment ended
  • 47.94 million employed out of a 50.89 million labor force in January 2026
  • Wholesale and retail trade (-888,000) and service and sales (-772,000) recorded the largest job losses
  • Underemployment rose to 13.2% or 6.34 million workers
  • Wage and salary workers increased by 2.408 million year-on-year, indicating growth in formal employment
With only a few days before Labor Day, jobseekers troop to the job fair at the Quezon City Hall grounds, April 28, 2016, hoping to get a job that would be able to help them with their finances. (Mark Balmores)
With only a few days before Labor Day, jobseekers troop to the job fair at the Quezon City Hall grounds, April 28, 2016, hoping to get a job that would be able to help them with their finances. (Mark Balmores)
Many Filipinos experienced temporary unemployment and reduced working hours after the holiday season as seasonal jobs ended, but formal wage and salary employment continued to grow, the Department of Labor and Employment (DOLE) said.
In a statement, the department said the rise in unemployment reflected seasonal adjustments and new entrants into the workforce.
DOLE also noted that the significant increase in wage and salary workers demonstrated the steady expansion of productive and formal employment across sectors.
Data from the Philippine Statistics Authority’s January 2026 Labor Force Survey showed the labor force at 50.89 million, with 47.94 million employed.
This represented a decline of 1.489 million from December 2025 as temporary holiday jobs ended.
Wholesale and retail trade led the losses with 888,000 jobs shed, while service and sales workers dropped by 772,000, reflecting the short-term nature of these sectors.
Seasonal factors such as the agricultural off-season and weaker demand in construction and agriculture also contributed to the labor market shifts.
Underemployment rose to 6.34 million, or 13.2 percent, from 8.0 percent in December 2025, as many workers returned to part-time or intermittent roles while seeking additional or more stable income.
Despite these fluctuations, formal employment grew strongly.
Wage and salary workers increased by 2.408 million, from 30.555 million in January 2025 to 32.963 million in January 2026, signaling the continued expansion of secure jobs.
DOLE emphasized that the labor market remains supported by solid macroeconomic fundamentals and sustained employment generation programs, with positive outcomes noted under the Philippine Development Plan 2023–2028.
“Moving forward, the department will continue to strengthen its labor market programs under the Philippine Labor and Employment Plan and the Trabaho Para sa Bayan Plan through targeted reskilling, upskilling, and youth employability initiatives; enhanced job fairs in the construction and key employment sectors; livelihood and entrepreneurship opportunities; and counselling and skills development for displaced workers,” the department said.
“Expanded support for micro, small, and medium enterprises (MSMEs) will also be provided to enhance productivity across sectors,” it added.
Flexible work arrangements and MSME participation in the Adjustment Measures Program are also expected to help preserve jobs amid economic adjustments.
Region-specific employment strategies will be guided by stronger labor market data and monitoring systems to ensure timely and evidence-based policymaking, the DOLE said.
“The DOLE remains committed to working with government partners, the private sector, and workers’ organizations to ensure employment growth is sustained and translated into decent, productive, and secure jobs for all Filipinos,” it added.

Related Tags

PH labor market DOLE January 2026 PSA holiday jobs employment unemployment
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