The Department of Economy, Planning, and Development (DEPDev) on Friday insisted that policy measures are being rolled out to shore up the country’s weakening labor market and blunt the fallout from both domestic failures and global pressures.
The statement came after the Philippine Statistics Authority (PSA) reported a jump in the unemployment rate to 4.4 percent in December 2025, a steep increase from 3.1 percent in the same month a year earlier.
Key labor indicators also deteriorated over the period, with the labor force participation rate sliding to 64.4 percent from 65.1 percent, while the employment rate dropped sharply to 95.6 percent from 96.9 percent.
The lone bright spot was underemployment, which fell to 8 percent from 10.9 percent — its lowest level since April 2005.
DEPDev Officer in Charge Undersecretary Rosemarie Edillon said that “as we make 2026 a rally point to revitalize PDP (Philippine Development Plan) 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.”
National Statistician Claire Dennis Mapa, speaking during the December 2025 labor force participation survey briefing, pointed to the construction sector’s reduced contribution as a major factor behind the decline in employment, citing the ongoing flood control mess.
In response, 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.”
She added that programs aimed at deploying digital technologies to boost the capacity of high-productivity industries — including information technology-business process management and manufacturing — would also be pursued.
“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,” she said.
PNA PHOTO