Rising unemployment, lower LFPR bug jobs market By Justine Xyrah Garcia
B
ENEATH May’s employment figures, economists see signs of a labor market that is gradually losing steam as the economy struggles to generate enough jobs. The Philippine Statistics Authority (PSA) on Wednesday reported that around 2.5 million individuals were unemployed in May, pushing the unemployment rate to 4.8 percent, higher than the 3.9 percent recorded in the same month last year. From January to May, the unemployment rate averaged 5.1 percent, up from 4 percent in the same period in 2025. The labor force participation rate (LFPR) also declined to 63.8 percent in May from 65.8 percent a year earlier. For Ateneo de Manila University economist Ser K. Peña-Reyes, the combination of higher unemployment and lower labor force participation
FRESH LEGAL SALVO Erwin Tulfo files a complaint before the Mandaluyong City Prosecutor’s
Office on Wednesday, July 8, 2026, charging lawyer Levito Baligod, former congressman Mike Defensor, Jeron Valderama, Bernard Gumban, Ranulfo Ludovica, and lawyer Virgilio Garcia with grave oral defamation in relation to the Cybercrime Prevention Act of 2012. The complaint arose from statements made during a June 16 event at the Double Gem EDSA Garden Events Place in Mandaluyong City, which Tulfo’s camp described as an unauthorized Senate Blue Ribbon Committee hearing that later turned into a press conference. Story in B8 News. ROY DOMINGO
ROTARY CLUB OF MANILA JOURNALISM AWARDS
2006 National Newspaper of the Year 2011 National Newspaper of the Year 2013 Business Newspaper of the Year 2017 Business Newspaper of the Year 2019 Business Newspaper of the Year 2021 Pro Patria Award PHILIPPINE STATISTICS AUTHORITY 2018 Data Champion
suggests that the economy is struggling to absorb workers already in the labor force. “The simultaneous rise in unemployment and drop in LFPR shows that the economy is struggling to absorb even the existing labor force. Job losses are actively displacing workers faster than they can find new employment,” Peña-Reyes told the BusinessMirror. He added that the lower participation rate may also indicate that some Filipinos have stopped looking for work because they see limited employment opportunities. Philippine Institute for Development Studies (PIDS) Senior Research Fellow John Paolo R. Rivera likewise said the figures indicate that the labor market remains under pressure, with employment opportunities unable to keep pace with labor demand. “The lower participation rate also indicates that some individuals may have become discouraged or delayed entering the labor mar-
ket,” he told this newspaper. Data obtained by the BusinessMirror from the PSA showed that the number of unemployed Filipinos actively looking for work but could not find jobs increased to 1.57 million in May from 1.27 million a year earlier, an increase of 296,000. Meanwhile, the number of discouraged workers, or those who stopped looking for work because they believed no jobs were available but said they were willing to work if given an opportunity, increased to 185,000 in May from 136,000 a year earlier, or by nearly 50,000.
Job quality
DESPITE the weaker labor market, the PSA reported that the underemployment rate eased to 12.2 percent in May from 15.2 percent in April and 13.1 percent a year earlier. But IBON Foundation Executive Director Jose Enrique A. Africa cautioned against in-
terpreting the improvement as a sign that job quality has improved. He said the decline in underemployment may instead reflect the same discouragement seen among unemployed workers, with some employed Filipinos no longer seeking additional work because they see few opportunities. “To conclude that job quality is improving, it would be good to see if wages and benefits are rising from sustained regular full-time employment,” Africa said. Africa added that the country’s recent elevation to upper middle-income status has yet to translate into enough decent and productive jobs, pointing instead to deeper structural weaknesses in the economy.
Beyond weather conditions
THE PSA attributed the increase in unemployment partly to adverse weather conditions, See “LFPR,” A2
BusinessMirror A broader look at today’s business
EJAP JOURNALISM AWARDS
BUSINESS NEWS SOURCE OF THE YEAR
(2017, 2018, 2019, 2020, 2021) DEPARTMENT OF SCIENCE AND TECHNOLOGY
2018 BANTOG MEDIA AWARDS
AFTER 3 MOS’ OIL SHOCK PRESSURE, GIR REBOUNDS www.businessmirror.com.ph
T
n
Thursday, July 9, 2026 Vol. 21 No. 268
P25.00 nationwide | 2 sections 24 pages | 7 DAYS A WEEK
By Andrea E. San Juan
HE country’s foreign reserves, its buffer against external shocks, recovered after three months of facing pressure from high oil prices and market volatility amid the conflict in the Middle East. Preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed gross international reserves (GIR) reached $104.8 billion as of end-June 2026, the highest in three months or since March 2026. The latest figure is 0.78 percent higher than the $103.987 billion recorded in end-May 2026. Year-onyear, however, the foreign reserves dipped by 1.13 percent from the $105.998 billion in end-June 2025. According to the central bank, the increase in reserves was mainly driven by the national government’s (NG) net foreign currency deposits with the BSP and the central bank’s net income from its investments abroad. These were partly offset, however, by the downward valuation adjustments, primarily driven by changes in prices of the BSP’s gold holdings and foreign currencydenominated reserve assets and NG’s drawdowns on its foreign currency deposits with the BSP for external debt service.
Analysts’ take
JONATHAN L. RAVELAS, senior adviser at Reyes Tacandong & Co.,
explained that the month-onmonth rebound after three consecutive declines suggests that “external conditions have become more favorable, helped by improved foreign exchange inflows and a more stable market environment.” “While I wouldn’t say volatility has completely disappeared, the recovery in reserves indicates that pressures seen in previous months have eased and investor sentiment has become more constructive,” Ravelas said. On the breakdown of the foreign reserves, Michael L. Ricafort explained that “other reserve assets” posted the biggest monthon-month increase of $2.321 billion or by 37.1 percent to $8.583 billion as of end-June 2026. This, he said, is consistent with the Philippine government’s latest $2.5-billion global bond issuance in June 2026. Foreign currency reserves in currency and deposits also posted significant growth of 176.3 percent to $2.298 billion as of end-June 2026 from the $831.7 million as of end-May 2026. See “GIR,” A2
CAPS OFF, EYES ON JOBS New graduates pose for souvenir photos outside the Philippine International Convention Center in Pasay City, looking ahead to careers as they enter the labor market. Their milestone comes as the Philippine Statistics Authority reported that the country’s unemployment rate edged up to 4.8 percent in May 2026 from 4.7 percent in April, leaving an estimated 2.5 million Filipinos without jobs. The report also showed an improvement in job quality, with the underemployment rate declining to 12.2 percent from 15.2 percent, while 52.13 million Filipinos were in the labor force, including 49.63 million employed. NONIE REYES
CTA rules for Petron in ₧727-M case By Joel R. San Juan
T
HE Court of Tax Appeals (CA) has directed the Bureau of Internal Revenue (BIR) to refund Petron Corporation, the country’s largest oil company, the amount of P727.33 million representing erroneously paid excise taxes for its locally-produced unleaded gasoline duel and diesel fuel oil sold to Micro Dragon Petroleum Inc. from January to September 2018. In a 13-page decision, the CTA en
banc denied the petitions for review filed by the BIR assailing the August 15, 2024 decision and March 11, 2025 resolution promulgated by the CTA’s First Division which ordered the bureau to refund or issue tax credit certificate in favor of Petron. The BIR argued that Petron is liable to pay excise tax on locallyproduced unleaded gasoline fuel and diesel fuel oil subsequently sold and delivered to MDPI. The tax liability, according to the BIR, arises due to MDPI’s failure to
meet the conditions prescribed in its Certificate of Registration and Tax Exemption (CRTE) issued by the Subic Bay Metropolitan Authority (SBMA), considering that its sales within the customs territory exceeded the 30 percent threshold. The BIR also argued that Petron cannot invoke Section 135 of the Tax Code in seeking the refund of the excise tax paid being the seller. It stressed that Section 135 of the Tax Code does not grant exemption See “Petron,” A2
PBBM BACKS AMAZON PLAN TO INVEST $5B IN 15 YRS By Samuel P. Medenilla
P
WEATHERING INDAY Fishing boats are secured at the Navotas Fish Port Complex in
Navotas City on Wednesday, July 8, 2026, as Super typhoon Bavi, locally named Inday, entered the Philippine Area of Responsibility (PAR). While the typhoon is not forecast to make landfall in the Philippines, the Philippine Atmospheric, Geophysical and Astronomical Services Administration warned that it is strengthening the southwest monsoon (Habagat), bringing the threat of heavy rainfall, flooding and rain-induced landslides across parts of Luzon and the Visayas. PAGASA also advised fishermen and operators of small seacraft to remain vigilant as rough seas are expected in several coastal areas due to the enhanced monsoon. NONOY LACZA
RESIDENT Ferdinand Marcos Jr. has committed to back the plan of Amazon Web Services (AWS) Inc. to invest US$5 billion or over P300 billion in the country to build digital infrastructure in the next 15 years, which are expected to generate more jobs, according to Malacañang. “The President committed to support the plan of Amazon during
the meeting,” Palace Press Officer Claire Castro told reporters. The meeting between the chief executive and officials of the cloud computing platform subsidiary of the e-commerce firm, Amazon, was held in Malacañang on Wednesday. During their discussions, AWS presented its Digital Infrastructure Investment, which is expected to boost the country’s digital transformation initiatives. “This investment will create
many jobs for Filipinos. The President welcomes this and has pledged support for the said investment,” Castro said in Filipino in a press briefing.
Expected trend
THE Presidential Communications Office (PCO) undersecretary made the announcement after the Philippine Statistics Authority (PSA) reported that the unemployment rate See “Amazon,” A2
ALLIANCE GLOBAL CHIEF KEVIN TAN REPRESENTS PH AT APEC BUSINESS ADVISORY COUNCIL MEETING IN BANGKOK Alliance Global Group, Inc.
(AGI) President and CEO Kevin Tan meets with Prime Minister Anutin Charnvirakul of Thailand during the Third Meeting of the APEC Business Advisory Council (ABAC) in Bangkok. Following his appointment as the Philippines's ABAC member, Tan is representing the country at the four-day meeting, which brings together private sector leaders appointed by the heads of government of the 21 member economies of the Asia-Pacific Economic Cooperation. Hosted by ABAC Thailand under the 2026 theme, “Openness. Connectivity. Synergy.,” the meeting will formulate business policy recommendations for presentation to APEC Economic Leaders during their annual dialogue in China this November.
PESO EXCHANGE RATES n US 61.4230 n JAPAN 0.3788 n UK 82.0611 n HK 7.8327 n CHINA 9.0405 n SINGAPORE 47.5337 n AUSTRALIA 42.5231 n EU 70.0775 n KOREA 0.0406 n SAUDI ARABIA 16.3611 Source: BSP (July 8, 2026)