Gov’t to accelerate quality jobs amid higher unemployment

The Philippine government will pursue policies to improve the labor market environment and generate quality jobs despite global and domestic issues, the Department of Economy, Planning, and Development (DEPDev) said.

The Philippine Statistics Authority (PSA) reported Feb. 6 that the December 2025 Labor Force Survey showed a slowdown in labor market momentum, with the unemployment rate rising to 4.4% from 3.1% in December 2024.

The PSA data also showed the labor force participation rate declining to 64.4% from 65.1% in December 2024, alongside overall employment levels of 49.4 million during the period.

Youth unemployment rose to 12.2% in December 2025 from 9.1%, while the share of discouraged workers increased to 7.7% from 6.3% in December 2024, DEPDev said, citing the PSA release.

“As we make 2026 a rally point to revitalize PDP implementation, we will prioritize employment creation by restoring consumer and business confidence, reduce the cost of doing business, encourage innovation, and expand training and reskilling opportunities,” said DEPDev Undersecretary Rosemarie G. Edillon, the agency’s officer-in-charge while Secretary Arsenio M. Balisacan is on official travel.

Edillon said the government would resume and accelerate the completion of delayed infrastructure projects and prioritize the implementation of high-impact programs, activities, and projects in crucial sectors.

DEPDev also pointed to improved work conditions within employment, noting the underemployment rate fell to 8.0% in December 2025 from 10.9% in the same month in 2024.

DEPDev said the 8.0% underemployment reading is the lowest recorded since April 2005, when the current time series measuring labor figures was adopted.

This corresponds to 3.93 million employed individuals who wanted additional hours in their current job, an additional job, or a new job with longer working hours, DEPDev said.

“The decline in underemployment allows workers to participate in the upskilling and reskilling initiatives to be rolled out by government. This will help Filipino workers to remain competitive in today’s dynamic business environment. We will continue to work closely with Congress to institute reforms to make our labor market environment (firms, workforce, future jobseekers, training institutions, regulators) dynamic and responsive to the evolving world of work,” Edillon said.

Edillon said the government will facilitate wider adoption of digital technologies to strengthen high-productivity sectors, including IT-BPM and advanced manufacturing, to support sustainable job growth.

“If we can expand global capability centers and develop specialized digital services, we can generate high-value jobs and enhance the country’s competitive position in the global market,” Edillon said.

She said supply-side measures will remain a priority to support an inclusive, efficient, and dynamic labor market environment.

DEPDev said these measures include implementing the Enterprise-Based Education and Training Framework Act and other skills development initiatives identified in the Trabaho Para sa Bayan Plan 2025-2034 and the recently launched National Education and Workforce Development Plan 2026–2035.