The Philippines is targeting to reduce unemployment rate to 3 percent and steady decline in underemployment to 7-9 percent over a ten-year period under the “Trabaho Para sa Bayan 2025-2034” masterplan.
Launched on May 5, 2025 by the inter agency council, the TPB Plan aims to raise labor force participation rate to 68.2 percent over a ten-year period from 64.4 percent in 2024.
Undersecretary Rosemarie Edillon of the Department of Economy, Planning and Development -(DepDev) said in her presentation at the launch that the TPB plan targets would mean higher labor force participation (LFP) rate to 68.2 percent from baseline 2024 rate pf 64.4 percent.
LFP rate is an estimate of the number of people actively engaged in the workforce. In 2024, a total of 48.8 million Filipinos were employed—the highest full-year level recorded. The quality of jobs for Filipinos has also improved, as the full-year underemployment rate dropped to 11.9 percent, its lowest level ever.
“It’s an ambitious plan, a big ask,” described Edillon of the TPB 2025-2034 noting that majority of workers by 2035 are already mostly Gen Z and Gen Alpha.
The plan, she said, will make the Philippine economy more resilient with businesses already able to adapt to market intelligence systems, with ready skills and a future ready labor supply.
Overall labor productivity is seen improving to 6.8 percent from 5 percent in 2028 and 4.5 percent in 2024.
In terms of sectors, the TPB plan has yet to set productivity rates for 2034, but it showed 2.3-5.5 in 2028 from 9.7 percent in 2024; industry to .80-.83 from 0.2 percent; and services to 5-8.5 percent from 2.2 percent in 2024.
As a result, the Philippines should rank 30th or better in terms of domestic industry diversification global ranking from 39th in 2024, and production and export complexity to 25th or better from 33rd rank in 2024.
By 2034, the proportion of employed poor should improve to 6-8 percent from 16.9 percent in 2024.
To support the ambitious jobs targets, Edillon said the PTB plan identified priority sectors for biggest job generator industries: agriculture and agribusiness, food and advance manufacturing, construction, transportation, digital economy, tourism, creative economy, health, housing, education, green economy and blue economy.
Edillon cited a report, which showed there were a total of 11.3 million Filipinos workin in the digital economy in 2024, accounting for 22-23 percent of the current size of work in the agriculture sector.
“We look at high level of digital economy,” she said as she cited the need to mov up the value chain by improving the AI ecosystems.
Senator Joel Villanueva, author of the TPB Act or Republic Act No. 11962 said accompanying legislations have already been passed to ensure the goals set under the TPB Act are achieved.
In addition, some laws and policy programs are being prepared to help boost employment.
These laws include 100 percent Service Charge Act, Enterprise-based Education and Training Framework Act, Digital Workplace Competitiveness, and Department of Migrant Workers Act.
