EXPLAINER: Why are more Filipino youths facing unemployment challenges

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The unemployment rate in the Philippines climbed to 5.4% in September 2026 from 3.5% in September 2025 — the latest figure is equal to 2.86 million jobless people, according to the Philippine Statistics Authority (PSA).

With this, the labor force, or people who are qualified to work, has also increased. However, not everyone is able to find work, according to a report from GMA News Feed.

Data from the PSA showed that there were 1.12 million youths unemployed in September 2026, which rose from the 741,000 recorded in the same time last year.

A Philippine Institute for Development Studies (PIDS) study showed that the curricula is not aligned with the training programs that would address the shifting needs of the industry.

There is also no national framework to determine middle skills, so the Technical Education and Skills Development Authority (TESDA), Commission on Higher Education (CHED) have different classifications.

Job creation

According to IBON Foundation executive director Sonny Africa, however, this went beyond a matter of skill mismatch.

“Ang pinakamalaking dahilan doon sa mataas na youth unemployment ay because hindi nakakapaglikha ng sapat na trabaho ‘yung agrikultura at industriya… Alam ko mahilig ‘yung gobyerno doon sa job creation, supposedly doon sa mga jobs fair. Kinokonek lang niya ‘yung mga naghahanap ng trabaho doon sa mga handang magtrabaho. So, hindi siya nagki-create ng trabaho, kundi kinokonek lang niya ‘yung supply at demand,” Africa said.

(The biggest reason for youth unemployment is there are no jobs being created in agriculture and industry… I know the government likes job creation supposedly in job fairs. But it only connects those who are looking for workers to those ready to work. So it does not create jobs, it connects supply and demand.)

Underemployed

The PSA also recorded 5.56 million underemployed Filipinos, or workers with a job but have expressed the need for additional work hours or a second job.

Africa said it is not enough to just create jobs now either. The government needs to ensure proper wages and benefits for workers.

The PIDS said there needs to be better coordination between TESDA, CHED, PSA and industry players to have streamlined standards and training programs.

The Labor Department has earlier stated that they will work to improve youth employment by working with employers, including local government units and others.

“For the Department of Labor and Employment, employment gains reflect continued labor market activity, particularly in the Services sector. 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,” DOLE said in a statement. — BAP, GMA News