The government is stepping up efforts to generate more quality jobs and strengthen worker support after the latest labor data showed a growing workforce alongside a higher unemployment rate.
The July 2026 Labor Force Survey of the Philippine Statistics Authority (PSA) showed that the country’s labor force grew to 52.36 million, while total employment reached 49.21 million.
Several indicators pointed to improvements in job quality. The underemployment rate dropped to 12.9 percent in July, down from 14.8 percent a year earlier, indicating fewer workers were seeking additional hours or better employment. The proportion of young Filipinos who were not in education, employment, or training also eased to 15.2 percent from 15.9 percent.
Still, unemployment increased to 6.0 percent, up from 5.3 percent in July 2025.
Department of Economy, Planning, and Development (DEPDev) Secretary Arsenio Balisacan said the results highlight the need to bring more investments into the country, particularly those capable of generating stable and productive employment.
“These figures show both progress and challenge,” Balisacan said, noting that the expanding labor force makes it increasingly important to attract investments that create quality jobs.
He also stressed the need to make it easier for businesses to operate and invest in the Philippines while helping workers and enterprises adjust to economic, technological and climate-related changes.
Among the government’s priorities are targeted assistance for micro, small and medium enterprises, stronger climate-risk management in vulnerable industries, investments in high-growth sectors, and wider access to skills development and formal employment.
The government plans to expand the use of the AI-enabled eTrabaho platform and the Technical Education and Skills Development Authority’s Skills Passport to help connect workers with training and job opportunities. It also aims to strengthen links between social assistance programs, skills training and employment.
MSMEs will likewise receive support in adopting advanced technologies to improve productivity and gain better access to financing.
The government is also moving forward with reforms under the National Education and Workforce Development Plan 2026–2035, including efforts to align Philippine qualifications and skills certifications with ASEAN mutual recognition arrangements.
Balisacan said preparing workers and businesses for future disruptions will be crucial to sustaining employment gains.
“Long-term employment resilience depends on our ability to prepare for change rather than react to it,” he said, emphasizing investments in skills, innovation and business competitiveness as key to building a workforce capable of meeting future opportunities and challenges.