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Philippine unemployment spikes to 5.8% in January 2026 after holiday jobs fade

A post-holiday slump leaves thousands jobless in the Philippines. Officials call it a seasonal shift—but will the labor market recover quickly?

The image shows a December 2019 calendar with holidays marked in bold font. The calendar is divided...
The image shows a December 2019 calendar with holidays marked in bold font. The calendar is divided into weeks, with each day of the month clearly marked. The holidays are highlighted in a different color, making them stand out from the rest of the calendar. The background of the image is white, allowing the calendar to be the focus of the picture.

Philippine unemployment spikes to 5.8% in January 2026 after holiday jobs fade

Unemployment in the Philippines climbed to 5.8 percent in January 2026, according to the latest figures. This marks a sharp rise from 4.3 percent a year earlier and 4.4 percent in December 2025. Officials have linked the increase to seasonal job market shifts after the holidays.

The Department of Labor and Employment (DOLE) pointed to the end of temporary holiday jobs as the main cause. Many workers, hired for the busy retail and tourism season, found themselves without employment once demand dropped. The agency described the trend as typical for this time of year.

Underemployment also grew, with more people working fewer hours or taking on irregular jobs. Some returned to part-time roles while searching for steadier work. DOLE stressed that the figures reflected short-term adjustments rather than long-term economic weakness.

The January data shows a clear seasonal pattern in the labour market. With holiday-related positions winding down, both unemployment and underemployment rates rose. DOLE has indicated that these changes align with expected post-holiday employment trends.

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