Malacañang pledged to intensify state interventions to mitigate joblessness after the Philippine unemployment rate climbed to 6% in July 2026, marking its highest point since 2022.
The country’s total workforce expanded to 52.36 million individuals for the month, with 49.21 million currently employed. Despite the overall growth in employed citizens, the influx of workers pushed the national jobless rate upward.
Communications Undersecretary and Palace Press Officer Claire Castro assured that the executive branch is actively executing key policy reforms and labor programs designed to create sustainable employment opportunities.
Among these initiatives is the ongoing refinement of the National Education and Workforce Development Plan for 2026 to 2035, which aims to align domestic labor standards with ASEAN Mutual Recognition Arrangements regarding professional qualifications and skills accreditation.
”Pero sa ngayon nakikita po natin ang pagpupursige ng gobyerno kung paano maiibsan ang issue ng unemployment. Hindi po kaila sa atin na marami rin po tayong mga kababayan na dahil sa krisis sa Middle East ay na-repatriate na supposed to be sila ay mga OFWs sa mga bansa na naapektuhan ng krisis na ito sa Middle East,” Castro said.
To provide immediate labor market relief, Castro pointed to the Department of Labor and Employment’s (DOLE) nationwide monthly “Trabaho Agad” job fairs, alongside local public employment service offices (PESOs) aimed at enhancing placement rates.
DOLE is also offering career guidance and skills readiness training to students preparing to enter the job market.
The administration is similarly prioritizing the growth of micro, small, and medium enterprises (MSMEs) to boost business investment and expansion across local sectors.
”Pati po ang pagpapalago ng MSMEs para mas mabigyan pa ang mga small business investments or business investor na magkaroon po ng mas malago na industriya or negosyo para mas maka-employ pa ng ating mga kababayan,” she added.
Additionally, the government is considering target tax relief measures to ease the financial load on small enterprise owners, giving them greater leeway to scale up and hire additional labor.
”Kaya po andiyan po iyong tax breaks na pinag-iisipan para iyong mga small business ay maibsan po ang kanilang maaring i-shoulder ng mga taxes. At ‘pag maliit ang taxes o walang taxes na masyadong maipapataw mas marami silang negosyong magagawa at mas maraming empleyadong maaring ma-generate,” Castro explained.
Addressing earlier observations by Department of Economy, Planning, and Development (DEPDev) Secretary Arsenio Balisacan regarding the labor landscape, Castro reiterated that cutting bureaucratic red tape remains vital to convincing foreign investors to set up shop locally.
”[S]abi nga po niya ito ay issue ng progress and challenge pero ang pinakasusi dito ay patuloy na magkaroon ng improvement sa ease of doing business in the country dahil kapag mas mabilis makakuha ng mga requirements ang isang investor mas madaling makapasok ang investor at makakuha ng mga kababayan natin na maaaring mag-empleyo sa kanilang mga negosyo,” Castro said.