The government is intensifying efforts to enhance workforce competitiveness and business resilience to address the impact of persistent global and domestic headwinds, as well as climate-related disruptions, according to the Department of Economy, Planning, and Development (DEPDev). This follows the release of the latest Labor Force Survey (LFS) results.
The Philippine Statistics Authority (PSA) reported today (January 7) that the country’s underemployment rate eased to 10.4 percent in November 2025, down from 10.8 percent in November 2024. Meanwhile, the unemployment rate rose to 4.4 percent from 3.2 percent in the same period last year. Both indicators remain within the government’s target ranges of 4.8-5.1 percent for unemployment and 13-14 percent for underemployment for 2025.
Job losses were high in subsectors where severe typhoons during the period disrupted economic activity (affecting 873,000 workers), including accommodation & food service activities, wholesale and retail trade, other service activities, and fishing and aquaculture.
The labor force participation rate decreased to 64.0 percent from 64.6 percent, largely due to increased time devoted to family responsibilities; meanwhile, the youth labor force participation rate also declined mainly due to schooling.
“The government is prioritizing investments in skills development, lifelong learning, and social protection systems to enable workers to transition across sectors and withstand economic shocks. Strengthening workforce competitiveness is one of the key elements to attract investments that generate quality jobs,” said DEPDev Secretary Arsenio M. Balisacan.
To minimize business disruptions and protect workers during severe weather events, the government will actively support establishments in developing and implementing Business Continuity and Resiliency Plans. DEPDev is also pushing for the full implementation of the Philippine Innovation Act (Republic Act No. 11293), which fosters an innovation ecosystem, to develop more entrepreneurs and increase labor demand.
The government is likewise prioritizing the Tatak Pinoy strategy, the country’s 10-year national industrial roadmap aimed at boosting local industries, creating jobs, and elevating Filipino products to global standards. Priority sectors include Information Technology and Business Process Management (IT-BPM) as well as Food and Agro-processing, which offer high potential for value-added production, export growth, and employment generation.
The recently enacted 2026 General Appropriations Act (GAA) supports these priorities through increased investments in quality education and programs for upskilling and reskilling.
“The 2026 National Budget serves as a strategic roadmap for safeguarding economic recovery and sustaining progress toward our long-term development goals. It prioritizes investments in education, health, agriculture, social protection, and job creation—sectors fundamental to building a more inclusive, competitive, and resilient Philippine economy,” Balisacan emphasized.
