Malacañang has attributed the rise in the country's unemployment rate in May to the global oil crisis stemming from the conflict in the Middle East, saying the government had anticipated the impact and continues to roll out interventions to help affected workers.

Presidential Communications Office (PCO) Undersecretary Claire Castro said this after the Philippine Statistics Authority (PSA) reported that the unemployment rate rose to 4.8 percent in May from 3.9 percent in the same month last year, translating to 2.5 million unemployed Filipinos, up from 2.03 million a year earlier.

In a press briefing on Wednesday, July 8, Castro said the latest labor force figures reflected the effects of external economic shocks, particularly on the agriculture sector.

"Ito po naman ay talagang inaasahan dahil nga po naging reason ang global oil crisis (We expected this as a result of the global oil crisis)," she said.

"Kahit po sa parte ng agrikultura... tinitingnan din po ito ni Secretary Kiko Laurel anong sektor dahil talaga pong malaki rin po ang naging epekto ng naging kaguluhan sa Middle East sa ating mga kababayan (Even in agriculture... Agriculture Secretary Francisco Tiu Laurel Jr. is looking into which sectors were affected because the conflict in the Middle East has indeed had a significant impact on our people),” she added.

National Statistician Claire Dennis Mapa said the labor market lost around 660,000 jobs year-on-year, with total employment declining to 49.63 million from 50.29 million in May 2025.

The PSA said agriculture and forestry recorded the largest employment decline, shedding 905,000 workers from a year earlier.

Mapa attributed the losses largely to weather-related disruptions, including the effects of El Niño, which affected crop production, particularly rice, corn, and other agricultural commodities.

Castro, however, said the sector also felt the impact of higher fuel prices brought about by the Middle East conflict.

She noted that many fishermen were unable to operate because of soaring fuel costs despite receiving government assistance.

“Halimbawa po iyong mga mangingisda, dahil nga po sa taas ng krudo... may mga mangingisda tayong apektado (For example, our fisherfolk were affected because of the high cost of fuel),” she said.

She added that some workers in agriculture and fisheries had been forced to seek other sources of livelihood after temporarily leaving their traditional occupations.

"Since hindi naman sila makapangisda... iyong iba nating mga miyembro ng agrikultura, instead na sila ay manatili na farmer or mangingisda, minsan... lumilipat sila ng ibang maaaring pagkakitaan (Since they could not fish... some members of the agriculture sector, instead of remaining farmers or fisherfolk, transferred to other jobs where they could earn an income),” Castro said.

Aside from agriculture, the PSA reported significant employment losses in other service activities, particularly among household workers, drivers, and gardeners, as well as in public administration and wholesale and retail trade.

Castro said President Marcos and his economic managers have long been discussing measures to soften the impact of the oil crisis on workers and vulnerable sectors, even before the latest labor figures were released.

"Hindi po siya napag-usapan in particular, dahil even before po na nagkaroon po ng kaguluhan sa Middle East ay nagiging parte na po ito ng usapan para po maibsan nga po iyong impact sa ating mga kababayan (It was not discussed specifically because even before the conflict in the Middle East, this had already been part of government discussions on how to lessen its impact on our people),” she said.

The Palace Press Officer said the government recognizes that financial assistance alone cannot fully offset the effects of prolonged increases in fuel prices but stressed that aid programs remain in place.

Castro said the administration continues to closely monitor labor market conditions and is prepared to respond as necessary.

"Hindi naman po ito pinapabayaan, lagi po itong mino-monitor ng ahensiya ng gobyerno at marami pong ginagawa (This is not being neglected. Government agencies are constantly monitoring the situation and are undertaking many measures),” she said.

"Nandoon pa rin po iyong interventions ng government para po kahit papaano ay maibsan nga ang impact nitong nararanasan natin (Government interventions remain in place to somehow lessen the impact of what we are experiencing),” she added.

Despite the increase in unemployment, the PSA reported an improvement in underemployment, which fell to 12.2 percent in May from 13.1 percent a year earlier and 15.2 percent in April.