Philippine jobless rate rises to 5.4% as contact center jobs fall
- Philippine unemployment rose to 5.4% in September 2026, with 2.86 million jobless.
- The Philippines lost 289,000 contact center information clerk jobs year on year.
- Employment rose to 50.32 million from 49.6 million a year earlier.
- Underemployment eased to 11.0% from 11.9% in August.
MANILA, PHILIPPINES — The Philippines’ unemployment rate rose to 5.4% in September, with 2.86 million Filipinos out of work, as the country lost 289,000 contact center information clerk jobs from a year earlier. That job category includes the business process outsourcing (BPO) sector.
Unemployment stood at 5.3% in August and 3.8% in September 2025, when 1.96 million Filipinos were jobless.
More workers than new jobs
Employment rose to 50.32 million from 49.6 million a year earlier, but the employment rate fell to 94.6% from 96.2%, Philippine Statistics Authority (PSA) data reported by GMA News on Nov. 6 showed. The labor force, which counts Filipinos aged 15 and above, grew by 1.63 million to 53.19 million.
National Statistician Claire Dennis Mapa said more of the new labor market entrants ended up unemployed than employed. He put the rise in employed persons at 721,000 and the rise in jobless at 909,000.
Of the additions to the labor force, 988,000 were aged 15 to 24. The labor force participation rate held at 64.5%.
Construction and contact centers
Construction shed the most workers, losing 271,000 year on year to 4.70 million, which Mapa attributed to higher material costs and slower public construction. Arts, entertainment and recreation lost 163,000 jobs, and information and communication lost 105,000.
Month on month, administrative and support service activities lost 245,000 jobs. Underemployment eased to 11.0% from 11.1% a year earlier and 11.9% in August, though 5.56 million employed Filipinos still wanted more hours or another job.
“However, the need to address the increase in unemployment also emphasizes the need to ensure that more Filipinos gain access to decent and sustainable employment opportunities,” the Department of Labor and Employment (DOLE) said in a statement.
DOLE also pointed to the rise in youth unemployment, which it said highlights the need for school-to-work transition programs.
What it means for employers
The September survey shows the Philippine labor force growing faster than jobs, with contact center roles among the year’s biggest losses. The PSA figures do not say why those jobs went, so buyers should read them alongside provider hiring news.
For companies with offshore outsourcing teams in the country, a looser labor market can ease hiring. OA’s list of the top 40 call centers in the Philippines is a starting point for comparing providers.
Related news
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- Transcom opens first Quezon City site, its seventh in the Philippines · 5 Nov 2026
- TP opens 29th Philippine site in Pasay, adding 1,000+ jobs · 13 Oct 2026
Disclosure: Outsource Accelerator uses AI tools in the backend of its editorial workflow. Every article is reviewed and verified by a human editor before publication.
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