MANILA — The government is preparing a series of policy measures aimed at accelerating the creation of quality jobs and strengthening the Philippine labor market following signs of a slowdown in employment growth, the Department of Economy, Planning, and Development (DEPDev) said.
Data released by the Philippine Statistics Authority (PSA) showed that the unemployment rate rose to 4.4 percent in December 2025, up from 3.1 percent in the same month a year earlier, reflecting softer labor market momentum amid global and domestic headwinds.
The PSA also reported a decline in the labor force participation rate to 64.4 percent from 65.1 percent in December 2024, alongside lower overall employment, which stood at 49.4 million during the period. Youth unemployment increased to 12.2 percent from 9.1 percent, while the share of discouraged workers climbed to 7.7 percent from 6.3 percent year-on-year.
DEPDev Undersecretary Rosemarie Edillon, who is currently serving as officer-in-charge while Secretary Arsenio Balisacan is on official travel, said the government would prioritize job creation as it moves to reinvigorate the implementation of the Philippine Development Plan (PDP) in 2026.
“As we make 2026 a rally point to revitalize PDP implementation, we will prioritize employment creation by restoring consumer and business confidence, reducing the cost of doing business, encouraging innovation, and expanding training and reskilling opportunities,” Edillon said.
She added that the government would resume and fast-track delayed infrastructure projects and prioritize high-impact programs in key sectors to support employment growth.
Despite the rise in unemployment, the PSA reported an improvement in underemployment, which fell to 8.0 percent in December 2025 from 10.9 percent a year earlier. This marks the lowest underemployment rate recorded since April 2005, when the current labor statistics time series began.
The figure translates to about 3.93 million employed Filipinos seeking additional hours of work, a second job, or employment with longer working hours.
Edillon said the decline in underemployment would allow more workers to participate in government-led upskilling and reskilling initiatives, helping them remain competitive in a rapidly changing labor market.
The government also plans to accelerate the adoption of digital technologies to strengthen high-productivity sectors such as information technology–business process management (IT-BPM) and advanced manufacturing, with the goal of generating higher-value jobs.
“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 added that supply-side reforms would remain a priority, including the implementation of the Enterprise-Based Education and Training Framework Act and other skills development initiatives under the Trabaho Para sa Bayan Plan 2025–2034 and the National Education and Workforce Development Plan 2026–2035.