Senator Francis “Chiz” Escudero is seeking urgent legislative action to support micro, small, and medium enterprises (MSMEs), which employ about two‑thirds of the national workforce and is widely regarded as the backbone of the country’s economy.

Escudero said that based on the latest Labor Force Survey conducted by the Philippine Statistics Authority (PSA), the surge in unemployment figures (2.96 million Filipinos in January 2026), reflected both seasonal job losses and long‑standing structural weaknesses that demand immediate legislative attention.

To help address the situation, he is hoping the Senate will consider expediting the deliberation on the two complementary measures he authored: Senate Bill (SB) No. 231, which simplifies tax requirements and reduces compliance costs for MSMEs; and SB No. 233, which reinstates mandatory credit allocation for small enterprises by requiring banks and lending institutions to dedicate a portion of their loan portfolios to MSMEs.

Escudero noted that his bills have been pending in their respective committees since August of last year.

“Access to credit remains the lifeblood of our small businesses. Without financing, MSMEs cannot restock, modernize, or hire, and without lower compliance costs, they cannot stay afloat long enough to recover,” he said.

The Bicolano explained that the two bills form a coordinated strategy for MSME recovery; one reduces operational burdens, while the other ensures capital reaches enterprises that need it most.

“If we want to reverse rising unemployment, we must strengthen the enterprises that employ most of our people. These are practical, fiscally responsible reforms that go straight to the root of the problem,” he said.

Escudero says MSME support is one of the most cost‑effective ways to generate employment without requiring massive new government spending. He warned that delays could lead to more closures and job losses.

“Every month of delay means more small businesses closing and more Filipinos losing work. If we want more families to find dignified, stable livelihoods, we must empower the backbone of our economy,” he said.

According to the latest PSA report, the unemployment rate rose to 5.8 percent, up from 4.4 percent in December 2025 and 4.3 percent in January 2025, meaning 58 out of every 1,000 workers had no job or livelihood. Employment also fell to 47.94 million in January 2026, from 48.49 million in January 2025 and 49.43 million in December 2025.

The report said the steepest year‑on‑year declines were recorded in agriculture and forestry, 1.42 million; wholesale and retail trade, 729,000; and fishing and aquaculture, 140,000. These sectors are heavily dominated by MSMEs.

“Our MSMEs remain the most exposed to economic shocks and the slowest to recover. They are hurting,” he concluded.