The government is stepping up efforts to strengthen the labor market and create quality jobs amid both domestic and global economic challenges, the Department of Economy, Planning, and Development (DEPDev) said.

According to the Philippine Statistics Authority (PSA), the December 2025 Labor Force Survey shows a slowdown in labor market activity. The unemployment rate increased to 4.4 percent, up from 3.1 percent in December 2024, while labor force participation dipped to 64.4 percent from 65.1 percent. Total employment stood at 49.4 million, with youth unemployment rising to 12.2 percent and discouraged workers making up 7.7 percent of the labor force.

DEPDev Undersecretary Rosemarie G. Edillon, acting as officer-in-charge while Secretary Arsenio M. Balisacan is on official travel, emphasized the government’s focus on employment creation.

“As we make 2026 a rally point to revitalize PDP implementation, we will prioritize employment creation by restoring consumer and business confidence, reducing the cost of doing business, encouraging innovation, and expanding training and reskilling opportunities,” she said.

Edillon noted that efforts will include accelerating delayed infrastructure projects and fast-tracking high-impact programs in key sectors.

On a positive note, the country’s underemployment rate fell to 8.0 percent in December 2025 from 10.9 percent the previous year—the lowest since the current labor survey series began in April 2005. This represents about 3.93 million workers seeking more hours, additional jobs, or longer working hours.

“The decline in underemployment allows workers to participate in the upskilling and reskilling initiatives to be rolled out by the government. This will help Filipino workers remain competitive in today’s dynamic business environment. We will continue to work closely with Congress to institute reforms to make our labor market environment—firms, workforce, future jobseekers, training institutions, regulators—dynamic and responsive to the evolving world of work,” Edillon said.

The government will also promote the adoption of digital technologies to strengthen high-productivity sectors, including IT-BPM and advanced manufacturing. “If we can expand global capability centers and develop specialized digital services, we can generate high-value jobs and enhance the country’s competitive position in the global market,” she added.

Supply-side measures will remain a priority, including skills development under the Enterprise-Based Education and Training Framework Act and programs outlined in the Trabaho Para sa Bayan Plan 2025–2034 and the National Education and Workforce Development Plan 2026–2035, to support an inclusive and dynamic labor market.