Manila: The government is actively pursuing reforms aimed at improving the ease of doing business, expanding skills training, and strengthening micro, small, and medium enterprises (MSMEs) to address the country's rising unemployment, as stated by Malaca±ang on Wednesday. Palace Press Officer Claire Castro emphasized the importance of creating an investor-friendly environment to facilitate the establishment and growth of businesses in the country, thereby generating more employment opportunities for Filipinos.
According to Philippines News Agency, Castro highlighted in a Palace press briefing that the key to tackling unemployment lies in continuous improvements in the ease of doing business within the country. She noted that by enabling investors to secure necessary requirements more quickly, it becomes easier for them to enter the market and hire local workers. This statement follows the recent report from the Philippine Statistics Authority, which revealed a rise in the unemployment rate to six percent in July, alongside an expanding labor force of 52.36 million and total employment reaching 49.21 million.
Castro further detailed the efforts of the Department of Labor and Employment in organizing nationwide monthly Trabaho Agad job fairs and enhancing placement networks through Public Employment Service Offices, which are spearheaded by local government units. She also pointed to initiatives aimed at boosting MSMEs, noting that the growth of small businesses has the potential to create additional jobs for Filipinos. Tax breaks are being considered to alleviate the tax burden on small businesses, enabling them to expand and hire more employees.
In addition to business reforms, Castro underscored the significance of ongoing skills training and upskilling programs facilitated through the Technical Education and Skills Development Authority (TESDA). These initiatives are designed to prepare students and workers for employment opportunities. The government is also committed to reforms under the National Education and Workforce Development Plan for 2026 to 2035, in alignment with the ASEAN Mutual Recognition Arrangements on qualifications and skills certification.
Addressing the challenges faced by overseas Filipino workers repatriated amid the Middle East crisis, Castro assured that efforts would be intensified to streamline business operations while equipping workers and jobseekers with the necessary skills for available employment opportunities. Despite the current challenges, Castro expressed confidence in the government's persistence in addressing unemployment.
The rise in the unemployment rate to six percent in July 2026 marks the highest level since 2022, translating to approximately 3.14 million jobless Filipinos, up from 2.59 million in June 2026. This surge is largely attributed to a significant influx of new entrants to the workforce, particularly young individuals aged 15 to 24, who form a substantial portion of the new job seekers.
