ECOP blames budget scandal for jobs losses

The Employers Confederation of the Philippines (ECOP) attributed the increase in the unemployment rate in November 2025 compared to the same month a year earlier to several unfavorable developments, foremost among them the corruption scandal that has hit the Philippines.

ECOP noted that the decline in employment last year was due to the job creation rate lagging the influx of approximately 800,000 to 1,000,000 fresh graduates and other jobseekers entering the job market each year.

Results of the latest Philippine Statistics Authority’s Labor Force Survey showed that the country’s unemployment rate dropped to 4.4 percent in November 2025 from 5 percent in October 2025, but rose from 3.2 percent in November 2024.

ECOP cited several contributing factors to the rise in unemployment year-on-year, such as severe weather disturbances and natural disasters, geopolitics, higher US tariffs, and less active seasonal hiring by malls for the holidays last year.

However, the biggest factor for the higher unemployment figure, according to ECOP, is the corruption allegations.

“What really had the biggest impact is the corruption scandal. And if we don’t solve it this year we can expect to have a harder time,” the statement noted.

Investors were said to be “holding out” in the wake of allegations of anomalies in the flood control projects as they await the outcome of the investigation.

Services still top employer

When asked which sector contributed most to job growth, ECOP indicated that it remains the services sector.

Manufacturing, construction, and mining have contributed less because these are the sectors where both local and foreign investors have taken a wait-and-see approach.

ECOP emphasized that investor confidence has dropped significantly, as capitalists have expressed disappointment in the ongoing probe into the flood control projects as well as in the outcome of the national budget deliberations for 2026.

Nevertheless, the business community continues to work with the government in creating more jobs, holding onsite job fairs as well as online job matching.