MANILA, Philippines — The national government is ramping up workforce development through digital upskilling, artificial intelligence (AI) reskilling, and enhanced job-matching initiatives to tackle the country’s climbing unemployment rate, according to Communications Undersecretary and Palace Press Officer Claire Castro.
Speaking during a press conference on Friday, November 6, Castro highlighted an ongoing mismatch between labor market demands and the qualifications of job seekers. She noted that fresh graduates frequently struggle to find employment because their acquired skill sets do not match industry requirements, compounded by a limited number of businesses capable of absorbing new entrants.
To expand job creation, Castro stressed the importance of strengthening the manufacturing sector and backing micro, small, and medium enterprises (MSMEs).
“Sa ngayon po ay naglunsad ang Philippine Semiconductor and Electronics Industry Roadmap para mas mapalago, mas mapalaki ang country’s manufacturing base at makapag-create ng mas maraming trabaho,” Castro explained.
She also pointed to the Luzon Economic Corridor as a major catalyst for establishing primary logistics and manufacturing hubs.
Expanding Economic Zones and Financial Relief
To bring employment closer to communities, the government is pushing for the establishment of Special Economic Zones. Castro reported that 46 special economic zones have already been approved, projected to draw approximately ₱141.2 billion in investments and generate around 189,000 jobs.
“Of this, sinasabi na atin na makaka-create na special economic zones, 43 ay nasa labas ng Metro Manila. At sa island group naman po, 29 ay nasa Luzon, 12 sa Visayas at 5 sa Mindanao,” Castro said.
Alongside job generation, the administration continues to support legislative proposals raising the annual personal income tax exemption threshold to ₱350,000, allowing citizens to retain more disposable income for personal needs.
Additionally, the government proposed tax relief for micro-enterprises through exemptions from the two percent Minimum Corporate Income Tax (MCIT).
To stimulate broader economic activity, Castro assured the public that the Executive branch is coordinating closely with Congress to ensure the timely passage of the national budget and improve government spending efficiency.
The push comes amid economic updates showing the country’s unemployment rate ticking up to 5.4% in September 2026, compared to 5.3% in August 2026.