WHEN the Philippine Statistics Authority (PSA) was created by virtue of law, its mandate is to collect, compile, analyze, and publish statistical information on economic, social, demographic, political affairs, and general affairs of the people.
Beyond numbers, PSA does the civil registration functions in the country.
Part of its mandate is to collate data on employment status in the country, but from how it looks, the data it’s been releasing doesn’t seem to reflect the real score.
In its January 2026 figures, the PSA pegged the number of unemployed to 2.96 million, for which an independent research institution cried foul — if not fake.
According to thinktank IBON Foundation, unemployment stands at 7.2 million as of December last year.
IBON FOUNDATION
Formed in 1978, IBON Foundation, a non-profit organization, has been providing socio-economic research and analysis on issues affecting the country. It also contributes to people’s empowerment through education and advocacy support.
Part of its advocacy is to come up with data-driven information on various issues — including unemployment in the country.
IBON, which emphasizes on people’s issues and support for the capacity building of people’s organizations in research, education, information and advocacy work, uses participatory methodology through community-based people’s action research.
It also runs its own The Databank and Research Center that has been managing quarterly surveys, in which it gathers data on people’s economic conditions and opinions on multiple concerns — including unemployment.
COMPELLING FACTORS
With an untarnished reputation, the people have every reason to believe the data coming from the IBON Foundation rather than what the PSA has released. There are factors that PSA may have missed in its most recent data depicting minimal dent on the country’s unemployment.
●The ongoing armed conflict in the Middle East that affect supply chains, prices of bunker fuel and other basic imported goods
●The growing adoption of artificial intelligence that is displacing tens of thousands of BPO workers
●Inadequate manufacturing facilities compared with the unemployed and the fresh job seekers
●An economy that for all intents and purposes is suffering the brunt of high inflation and less income opportunities
●Possible displacement of OFWs that got repatriated from war-torn places in the Middle East.
AFTER THE HOLIDAY
The Philippine unemployment rate climbed to its highest level in more than a year in January, as temporary holiday jobs disappeared and economic uncertainty weighed on hiring.
PSA data showed that the jobless rate rose to 5.8% in January, equivalent to 2.96 million unemployed Filipinos. That was a sharp increase from 4.4% or 2.26 million unemployed in December, Bilyonaryo reported.
In terms of the number of unemployed individuals, the 2.96 million recorded in January was also the highest since June 2022’s 2.99 million.
PSA assistant secretary Divina Gracia L. Del Prado told reporters that around 306,000 additional Filipinos in the labor force were actively looking for work but unable to find jobs.
Historically, the number of available jobs falls by January after the Christmas season,” Del Prado said, referring to the end of temporary positions created to meet heightened holiday demand.
EXTERNAL PRESSURES
Economists say the rise in unemployment comes at a time when external pressures are also threatening to strain the Philippine economy.
Global tensions and conflict have triggered economic shockwaves, leaving oil supply uncertain and pushing up energy prices. Higher fuel costs could intensify inflationary pressures, eroding household purchasing power.
But IBON Foundation argued that the official Philippine unemployment figures mask a “labor market in crisis,” characterized by 7.2 million effectively jobless Filipinos as of late 2025 (including 1.5– 2 million discouraged workers).
The group argued that 71% of jobs are informal, and that declining unemployment rates hide a trend of Filipinos leaving the labor force due to lack of opportunities.
THE REAL NUMBERS
The think tank estimates the true jobless number is closer to 7.2 million (December 2025), far higher than the official 2 million, when including 3.3 million unpaid family workers and 1.5 — 2 million discouraged workers.
It characterized the economic situation as “job-losing growth” or “jobless growth,” where economic expansion does not result in quality employment.
Approximately 35 million, or 71% of the 49 million employed, are in informal work with low pay and no security.
A decline in the labor force, observed in late 2023 and 2024, indicates that many have given up looking for work. Significant job losses have been recorded in manufacturing, mining, and construction.
There has been very little serious effort on the government to fund and push manufacturing in the country, opting instead for more imports as an easy way out of supply shortages, especially in agriculture.
IGNORING REALITY
The thrust in mining and other extractive industries is to increase raw material production and export, rather than more value adding through local processing, which generate stable and sustainable jobs and economic growth.
Property rules are being tweaked to encourage foreign investments through long-term use that deprive locals from owning properties and drive away local creativity in land use and agricultural production.
IBON contends that the government’s narrative of a “strong” labor market ignores the reality of widespread, low-quality, and precarious employment.