(Screengrab from RTVM)
Malacañang on Friday outlined government measures to address rising unemployment, including workforce development, skills training, advanced manufacturing and investments aimed at creating more jobs for Filipinos.
Palace Press Officer Claire Castro said the administration is strengthening programs to equip workers with skills that meet evolving industry requirements, particularly in digital technology and artificial intelligence (AI).
The assurance came after the Philippine Statistics Authority (PSA) reported that the country’s unemployment rate climbed to 5.4 percent in September 2026, equivalent to 2.86 million jobless Filipinos.
The number of unemployed individuals increased by 909,000 compared with September last year and by 95,000 from August 2026.
Castro acknowledged that skills mismatches remain a challenge, particularly for young Filipinos entering the workforce after graduation.
“Most probably, ang kanilang mga natutunan ay hindi angkop or wala pang ganoon karaming negosyo na maaaring tumanggap sa kanila. Kaya nandiyan po ang panukala ng Pangulo at isinasagawa ngayon. Iyong tinatawag nating pag-develop sa workforce,” Castro said during a Palace briefing.
She said the government is implementing upskilling and reskilling initiatives alongside improved job-matching programs to help workers qualify for available employment opportunities.
The administration is also pursuing investments in advanced manufacturing and supporting micro, small and medium enterprises (MSMEs) to expand employment opportunities.
Among the initiatives Castro cited was the Philippine Semiconductor and Electronics Industry Roadmap, which aims to strengthen the country’s manufacturing capabilities and generate additional jobs.
She also highlighted the Luzon Economic Corridor, a development initiative intended to establish major hubs for logistics, manufacturing and innovation.
Castro said the government has approved 46 special economic zones expected to attract Php 141.2 billion in investments and potentially generate approximately 189,000 jobs.
According to the Palace, 43 of these economic zones are located outside Metro Manila, reflecting efforts to expand economic opportunities beyond the capital.
Castro also addressed concerns that the growing adoption of artificial intelligence could displace workers.
While acknowledging that AI may affect certain occupations, she said technological advancements could also create new employment opportunities, including higher-paying positions.
She emphasized the importance of continuous learning to help Filipino workers adapt to changing workplace requirements.
“Hindi tayo maaari na manatiling kapos sa kaalaman. Kaya nga lagi pino-promote ang Pangulo na dapat tayo matuto kasi AI era na tayo,” Castro said.
Beyond employment initiatives, the Palace said the administration supports proposals intended to ease the financial burden on workers and encourage business expansion.
These include raising the annual personal income tax exemption threshold to Php 350,000, which Castro said could increase workers’ disposable income.
The government is also backing a proposal to exempt micro enterprises from the 2-percent minimum corporate income tax, potentially allowing small businesses to retain more capital for expansion and hiring.
Castro added that the executive branch is coordinating with Congress to secure the timely passage of the national budget, which would fund government projects and programs expected to support employment generation.
The Palace maintained that workforce development, investment promotion and support for small businesses remain central to the administration’s efforts to address unemployment and strengthen economic opportunities.
