A significant shift is coming in 2026, as the government prepares to proactively address potential job losses in vulnerable sectors. This isn’t a reactive measure, but a strategic pivot designed to safeguard the employment gains the Philippines has carefully cultivated.
The Department of Labor and Employment (DoLE) is focusing its efforts on targeted support. Construction workers will be prioritized for job matching and opportunities linked to infrastructure projects. Simultaneously, emergency assistance and livelihood programs will expand for those displaced in agriculture and fisheries – sectors acutely sensitive to the whims of weather and seasonal changes.
Beyond immediate relief, a core component of this strategy involves future-proofing the workforce. DoLE will collaborate with other agencies to deliver enhanced skill upgrading and reskilling initiatives, specifically geared towards climate-resilient jobs and opportunities offering year-round stability.
This proactive stance follows a year where the Philippine labor market largely met expectations outlined in the national development plan. However, beneath the surface of those figures, a concerning trend emerged: a rise in unemployment to 4.2% in 2025, alongside a consistent underemployment rate of 11.9%.
These numbers reveal a hidden fragility. While the overall market showed resilience, key sectors like construction, agriculture, and fisheries proved particularly susceptible to disruptions – from unpredictable weather patterns to project delays and the natural ebb and flow of seasons.
Analysts point to a significant slowdown in job creation, masked by December’s data. The jobless rate climbed to 4.4% that month, a stark contrast to the previous year. More alarmingly, the total number of employed Filipinos decreased by 758,000, falling to 49.4 million.
The decline wasn’t isolated to a single industry. Beyond the well-publicized issues in construction – impacted by a corruption scandal and a loss of 550,000 jobs – agriculture, manufacturing, and transportation also experienced substantial job losses. The year saw a meager addition of only 172,000 jobs, a fraction of the historical average.
The construction industry felt the impact acutely, with widespread layoffs beginning as early as August 2025, triggered by stalled projects linked to questionable flood control contracts. Union leaders are urging swift action: a resumption of projects, expanded free training programs, and a commitment to prioritize local hiring when work restarts.
A bright spot remains the services sector, particularly business process outsourcing (BPO) and tourism. This sector continues to act as a crucial buffer, absorbing economic shocks and providing a degree of stability to the overall labor market. Continued growth in these areas is seen as vital.
Several factors contributed to the employment challenges of the past year, including government underspending on infrastructure, the departure of Philippine offshore gaming operators, and a general weakening of investor confidence. Increased government spending, particularly on infrastructure projects, is viewed as a potential catalyst for future job growth.
The focus now is on building a more resilient and adaptable workforce, prepared to navigate the challenges ahead and capitalize on emerging opportunities. This strategic shift represents a commitment to not just maintaining employment levels, but to fostering sustainable and inclusive growth for all Filipinos.
