Senate Deputy Minority Leader Joel Villanueva urged the government to place stronger support behind micro, small, and medium enterprises (MSMEs) as a key solution to the country’s persistent unemployment and underemployment concerns.
Reacting to the latest labor data, Villanueva said the 2026 General Appropriations Act should prioritize programs that enhance the competitiveness and long-term sustainability of Filipino MSMEs, which he described as critical drivers of job creation and poverty reduction.
“We must improve on our employment figures on a month-to-month and year-to-year basis for a realistic job growth figure, and one strategy to raise employment is by strengthening the lifeblood of our economy, the MSMEs, through focused government support. Where MSMEs thrive, communities prosper,” Villanueva said.
According to the Philippine Statistics Authority’s Labor Force Survey, the unemployment rate slightly eased to 4.4% in November, equivalent to 2.25 million jobless Filipinos, down from 5% or 2.59 million in October.
MSMEs continue to dominate the local economy, accounting for 99.63% of registered businesses and providing nearly 67% of total employment as of 2023.
“The budget must be used judiciously and effectively to empower MSMEs, create quality jobs and inspire inclusive growth,” the senator said.
Villanueva renewed his call for the passage of Senate Bill No. 1155, or the MSME Stimulus Act, which seeks to institutionalize government assistance for small businesses to expand operations and generate employment.
The proposed measure includes provisions for emergency support during disasters, health crises, and other disruptions that threaten business continuity.
Under the bill, qualified MSMEs may access interest-free loans from Land Bank of the Philippines and the Development Bank of the Philippines, as well as wage subsidies to help cover employee salaries.
“There’s no more question about the purpose and passion of MSMEs to survive and thrive. What the government needs to do is to match these with programs and policies that would put the so-called economy’s backbone at the center of attention,” Villanueva said.