The influential Makati Business Club (MBC) is calling on the Marcos administration to prepare for the potential impact of tariffs levied by the United States (US) on Philippine goods, warning of the threat they pose to Filipino workers.

In its Labor Day message on Thursday, May 1, the group of the country’s leading business executives said the 17-percent tariffs—albeit temporarily suspended—could upend the job security of skilled workers in export sectors.

MBC added that domestic policies of the US government under President Donald Trump could also impact the livelihood of overseas Filipino workers (OFWs) in America.

“Hence, the government must also look into ensuring that skills training and jobs may be provided for them during these uncertain times,” it said.

With the looming threat of job losses driven by economic uncertainties, MBC said the government must step in to raise the standards of Filipino workers to maintain their competitiveness on the global stage.

Citing a December 2024 report by the Washington-based multilateral lender International Monetary Fund (IMF), MBC noted that around 14 percent of jobs in the Philippines are “low-complementarity jobs,” or jobs at risk of being replaced by artificial intelligence (AI).

More than 50 percent are considered “highly complementary,” meaning AI can assist in certain tasks instead of serving as a full replacement.

Further, a 2024 report by the state think tank Philippine Institute of Development Studies (PIDS) showed that around 29 percent of workers lack the necessary skills for in-demand jobs.

With this, MBC said last year’s passage of the Enterprise-Based Education and Training (EBET) Framework Act could be vital in reskilling and upskilling the workforce.

The law seeks to address job-skills mismatch, unemployment, underemployment, and other labor challenges through competency-based and industry-driven programs designed to meet the demands of an evolving job market.

“However, the government needs to continue its efforts in ensuring that no Filipino worker gets left behind [by] the increasing growth of AI adaptation,” MBC said.

To further strengthen the workforce, the business group is pushing for the passage of the proposed Lifelong Learning Development Framework Act in the upcoming 20th Congress.

The measure, which has been filed in the House of Representatives and the Senate, seeks to institutionalize lifelong learning opportunities for Filipinos.

It introduces the concept of “Learning Cities” and “Learning Municipalities,” which would empower local governments to create tailored learning opportunities for their constituents.

It likewise aims to enhance micro-credentialing initiatives and strengthen the Philippine Credit Transfer System (PCTS) to ensure that diverse learning pathways are recognized and valued.

“We believe this reform will contribute to creating a more skilled and competitive Filipino workforce,” MBC said.