The government will strengthen support for workers and businesses and sustain efforts to create quality jobs, the Department of Economy, Planning, and Development (DEPDev) said Tuesday.
DEPDev made the statement following mixed results of the July 2026 Labor Force Survey (LFS), showing that the labor force participation rate (LFPR) was estimated at 63.6 percent, equivalent to 52.36 million Filipinos aged 15 years and above who are in the labor force.
The LFPR in July was higher than 60.7 percent recorded in the same month last year.
The number of employed Filipinos rose to 49.21 million from 46.05 million in July last year.
The employment rate was at 94 percent, with the services sector continuing to account for the highest share of employed workers at 62.8 percent.
Labor market quality indicators improved, with underemployment declining to 12.9 percent from 14.8 percent a year earlier, and the share of youth not in education, employment, or training (NEET) falling to 15.2 percent from 15.9 percent.
The unemployment rate, however, went up to 6 percent in July from 5.3 percent in July 2025.
“These figures show both progress and challenge. More Filipinos are participating in the labor market, which means that we need to intensify efforts to attract investments, especially those that create quality jobs,” DEPDev Secretary Arsenio Balisacan said.
“The key is to continuously improve the ease of doing business in the country,” he added.
Balisacan cited the need to ensure that workers and businesses can adapt to changing labor market needs as well as economic, technological and climate-related challenges.
Priority interventions include providing targeted support to micro, small and medium enterprises, strengthening climate risk management in vulnerable sectors, attracting investments in high-growth industries, and expanding upskilling opportunities and pathways to formal employment.
This includes scaling up the AI-enabled eTrabaho platform and the Technical Education and Skills Development Authority (TESDA) Skills Passport, strengthening referral pathways from social assistance to skills training and employment, and supporting MSMEs in adopting advanced technologies that will boost productivity and financing.
The government will also advance reforms under the National Education and Workforce Development Plan 2026–2035, including ASEAN mutual recognition arrangements for qualifications and skills certifications.
“Long-term employment resilience depends on our ability to prepare for change rather than react to it. By investing in skills, innovation, and business competitiveness today, we can create a workforce that is ready for the opportunities and challenges of tomorrow,” Balisacan said. (PNA)
