Department of Trade and Industry – Negros Oriental Director Juliet Banogon, WrkPod executive director James Thompson, and Technical Education and Skills Development Authority (TESDA) – Negros Oriental Director Fletcher Gumahad (standing, left to right) observe some virtual assistants at work in Dumaguete City on Dec. 3, 2025. The virtual assistants were part of TESDA’s Tulong sa Trabaho program, a government measure to upskill workers and help improve the country’s labor sector. (PNA photo by Mary Judaline F. Partlow)
Policy measures are being rolled out to improve labor market conditions and cushion the impact of domestic and global headwinds, the Department of Economy, Planning, and Development (DEPDev) said Friday, following a year-end uptick in unemployment.
Data released earlier by the Philippine Statistics Authority (PSA) showed the unemployment rate rising to 4.4 percent in December 2025, up from 3.1 percent in the same month a year earlier.
Labor force participation also eased to 64.4 percent from 65.1 percent, while the employment rate slipped to 95.6 percent from 96.9 percent, indicating fewer Filipinos were either working or actively seeking jobs at year-end.
Despite the softer headline figures, underemployment improved sharply, falling to 8 percent from 10.9 percent, the lowest level recorded since April 2005, suggesting better job quality for those who are employed.
DEPDev Officer in Charge Undersecretary Rosemarie Edillon said the government is positioning 2026 as a turning point for reinvigorating economic programs, with job creation at the center of policy efforts.
She said authorities will focus on restoring consumer and business confidence, lowering the cost of doing business, encouraging innovation, and expanding training and reskilling initiatives to better match workers with evolving industry needs.
The PSA noted that the decline in employment in December was partly driven by weaker activity in construction, with National Statistician Claire Dennis Mapa pointing to disruptions linked to delayed and problematic flood control projects.
In response, Edillon said the government plans to resume and accelerate stalled infrastructure works and fast-track high-impact programs in priority sectors. She added that digitalization will play a key role in boosting productivity, particularly in industries such as information technology–business process management and manufacturing.
By expanding global capability centers and developing more specialized digital services, Edillon said the country can generate higher-value jobs while strengthening its competitiveness in the global market, even as it navigates a more uncertain economic environment.