A chilling concern is gripping Philippine business leaders: a looming job shortage. This isn't a distant threat, but a rapidly approaching reality that could stifle economic growth over the next two years, leaving millions struggling to find work.
Beyond the immediate fear of unemployment, executives are deeply worried about the state of essential public services. Deficiencies in education, crumbling infrastructure, and a strained pension system are seen as critical weaknesses holding the nation back.
The spread of misinformation and the unpredictable consequences of artificial intelligence add further layers of complexity to the economic outlook. Coupled with persistent inflation, these factors create a volatile and uncertain environment for businesses.
Economist Leonardo Lanzona points to a recent economic slowdown as the root of the problem. Reduced government spending is directly impacting demand, creating a ripple effect throughout the economy.
This downturn is proving particularly devastating for micro, small, and medium enterprises, forcing many to close their doors. The result is a stark increase in unemployment, threatening the livelihoods of countless Filipinos.
Recent data paints a grim picture. The unemployment rate averaged 4.19% in the first eleven months of 2025, translating to 2.25 million jobless Filipinos – a significant jump from the 3.9% rate and 1.66 million unemployed in the same period last year.
The situation is exacerbated by a heavy debt burden, limiting resources for vital social programs. Political instability and the rise of labor-saving technologies like AI further compound the challenges, potentially shrinking the demand for human workers.
Globally, the World Economic Forum identifies geoeconomic confrontation as the most pressing risk over the next two years. This overarching threat casts a long shadow over the entire world economy.
The WEF’s survey, gathering insights from over 1,300 experts, reveals a widespread anxiety about misinformation, societal division, and the increasing frequency of extreme weather events.
Saadia Zahidi, WEF Managing Director, emphasizes the sharp rise in economic risks. Rising inflation and concerns about asset bubbles are fueled by high debt levels and unpredictable markets, signaling a potential global downturn.
Nearly one in five surveyed participants (18%) believe geoeconomic confrontation poses the greatest risk of triggering a global crisis in 2026. Armed conflict, extreme weather, and societal polarization follow closely behind.
Looking further ahead, over the next decade, experts anticipate that extreme weather events will become even more severe, demanding urgent and comprehensive action to mitigate their impact and build resilience.
