To shield the Philippine labor market from the fallout of the Middle East conflict, the Marcos Jr. administration is ramping up job protection measures—a move that could further improve the country’s employment rate following February’s gains.

Department of Economy, Planning, and Development (DEPDev) Secretary Arsenio M. Balisacan said in a statement on Wednesday, April 8, that mounting geopolitical tensions between the United States (US)/Israel and Iran are expected to continue hurting economic conditions abroad and at home and disrupt job markets.

“Recent developments highlight the urgency to strengthen the resilience of our labor market,” Balisacan said. “We must ensure that our policies and programs respond effectively to rapidly changing global conditions, especially for affected and displaced Filipino workers here and abroad.”

Jobless Filipinos dropped to 2.7 million in February, 294,000 lower than the three million recorded in the previous month—the highest since June 2022. Year-on-year, however, the number of unemployed individuals increased by 724,000 from 1.9 million in February 2025.

National Statistician and Philippine Statistics Authority (PSA) Undersecretary Claire Dennis S. Mapa told an April 8 press briefing that the country’s unemployment rate improved to 5.1 percent in February from January’s 5.8 percent—the worst level of joblessness during the current Marcos Jr. administration.

However, unemployment levels in February were worse than a year ago, when the jobless rate stood at 3.8 percent.

Before the war in the Middle East inflicted global oil price and supply shocks that pose a threat to domestic inflation and even jobs, the number of Filipinos in the labor force—those aged 15 and above who have jobs or are looking for employment—rose to 52.09 million from 50.89 million a month ago and 51.09 million a year ago, Mapa said, citing the PSA’s latest labor force survey (LFS).

Meanwhile, the employment rate stood at 94.9 percent in February, better than the 94.2 percent seen in the previous month. However, compared to a year earlier, the employment rate worsened from 96.2 percent in February 2025.

This translated to 49.43 million employed Filipinos, higher than both the previous month’s 47.94 million and February 2025’s 49.16 million.

According to the PSA, the services sector accounted for the bulk, or more than three-fifths, of total employed individuals in February. Meanwhile, the agriculture and industry sectors accounted for 18.8 percent and 17.7 percent of total, respectively.

Among subsectors, wholesale and retail trade—including the repair of motor vehicles and motorcycles—saw the largest increase, adding 658,000 jobs. Agriculture and forestry followed with 380,000, while accommodation and food service activities generated 361,000 new positions. Fishing and aquaculture contributed 233,000 jobs, and financial and insurance activities added 169,000.

On the other hand, the largest month-on-month job losses were recorded in public administration and defense, including compulsory social security, which shed 336,000 workers. Professional, scientific, and technical activities followed with a decline of 97,000, while administrative and support service activities lost 69,000 jobs. Information and communication saw 65,000 fewer workers, and arts, entertainment, and recreation posted a drop of 55,000.

While labor market conditions have improved in recent months, Mapa said external pressures, such as the ongoing war in the Middle East, will likely affect the positive momentum in local employment.

“Hopefully, our external challenges will be resolved soon so we can see further improvement in the labor market,” Mapa said. The government is ramping up efforts to protect jobs as the external shock “continues to affect the domestic labor market.”

For one, measures identified by the interagency Unified Package for Livelihoods, Industry, Food, and Transport (UPLIFT) Committee are now being implemented.

Balisacan said these measures will help cushion the public “by mitigating the impact of the conflict and ensuring the stability or continuity of essential services, sustaining economic activity, and supporting incomes amid rising fuel costs.”

DEPDev said affected workers will receive support through cash assistance, the rollout of a service contracting program, and fuel subsidies for vulnerable sectors. As such, the Department of Agriculture (DA) has mobilized its ₱1-billion quick response fund (QRF) for fuel subsidies and biofertilizer procurement.

Additionally, the government said efforts to promote the shift to renewable energy (RE) and electric vehicle (EV) ecosystems are underway.

“We expect an accelerated transition toward other sources of fuel and energy. Thus, we are building the skills, investment, and innovation ecosystem to support this move. Skills training programs on the operations and maintenance (O&M) of RE facilities and EVs, including the needed parts and components, will also be provided to displaced workers,” Balisacan said.