The latest employment figures from the Philippine Statistics Authority (PSA) bring encouraging news. The employment rate rose to 96.8 percent in November 2024 from 96.4 percent in November 2023 and 96.1 percent in October 2024. Meanwhile, underemployment dropped to 10.8 percent, down from 11.7 percent the previous year. These gains, according to the National Economic and Development Authority (NEDA), reflect improved job quality, with fewer workers seeking additional hours or alternative employment. While these strides are commendable, the challenge remains to sustain and accelerate progress, particularly as the global labor market evolves rapidly.
As these rosier results emerged, the World Economic Forum’s (WEF) Future of Jobs Report 2025 bears watching as it highlights significant shifts in job demand by 2030, with some industries set to flourish while others decline.
The WEF report identifies emerging fields such as artificial intelligence (AI), data science, green energy, and health services as high-growth areas. Conversely, traditional roles in administration, manufacturing, and repetitive tasks are projected to decline due to automation and digitalization. The Philippines must prepare its workforce to embrace these trends by fostering skills development, enhancing education, and promoting innovation.
Domestically, the persistent issue of underemployment, despite its recent decline, suggests that many Filipinos are either mismatched with their jobs or working in precarious conditions. Tackling this requires a multi-faceted approach that not only creates jobs but ensures these positions meet the aspirations and qualifications of Filipino workers.
Three focal points for action have emerged to address these twin developments.
First: Enhance workforce skills through education and training.
The government must recalibrate the education system and technical-vocational programs to focus on future-ready skills. This includes integrating digital literacy, AI, data analytics, renewable energy, and advanced healthcare technologies into curricula. Partnerships with private sector leaders and international organizations can ensure that training aligns with global standards and industry demands. Expanding government-led upskilling initiatives like TESDA programs and incentivizing companies to invest in workforce training will also be crucial. The Department of Education and the Commission on Higher Education must continually endeavor to assure that basic and higher education curricula are refreshed and aligned with dynamic changes in the knowledge milieu.
Second: Promote innovation and entrepreneurship.
Supporting startups and SMEs in high-growth sectors is vital for job creation. The government can establish innovation hubs and offer incentives for businesses investing in AI, green technologies, and creative industries. Encouraging entrepreneurship, particularly among the youth, will diversify income opportunities and drive economic dynamism.
At the same time, policies must support workers displaced from declining industries. For instance, transitioning traditional manufacturing workers into green energy or tech-related roles can mitigate job losses while strengthening the workforce’s adaptability.
Third: Strengthen social protection and labor market policies.
Improving employability also means ensuring fair wages, job security, and worker protection. Expanding access to affordable healthcare, housing, and financial services can reduce economic vulnerability. Meanwhile, labor market policies must foster flexibility while protecting workers’ rights, enabling smoother transitions for those moving between jobs or industries.
In conclusion, the Philippines is well-positioned to capitalize on emerging opportunities, but this requires a proactive and collaborative approach. The decreasing underemployment rate suggests better job matching, but further efforts are needed to reduce income inequality and ensure economic resilience. By equipping the workforce with future-ready skills, fostering innovation, and protecting workers’ rights, the country can reduce unemployment and joblessness to the barest minimum, ensuring every Filipino has access to meaningful and rewarding work.