The government will continue to develop the country’s workforce through digital upskilling and reskilling programs centered on artificial intelligence (AI), as well as job and skills matching initiatives to address the rising unemployment rate, Palace Press Officer Claire Castro said.
In a press conference Friday, November 6, Castro pointed out the importance of job and skills matching for the Filipino workforce, highlighting the growing mismatch between workers’ skills and available job opportunities in the country.
An example of that is fresh graduates who struggle to find employment because their acquired skills are misaligned with the demands of the labor market. The limited number of businesses capable of absorbing new graduates also contributes to the challenge.
With this, Castro highlighted the importance of advancing the manufacturing sector and supporting micro, small, and medium enterprises (MSMEs) to generate more opportunities.
“Sa ngayon po ay naglunsad ang Philippine Semiconductor and Electronics Industry Roadmap para mas mapalago, mas mapalaki ang country's manufacturing base at makapag-create ng mas maraming trabaho,” Castro explained.
She added that the Luzon Economic Corridor is expected to support this effort by developing major hubs for logistics and manufacturing.
Employment opportunities through the Special Economic Zones
Employment opportunities would also be brought closer to Filipinos through the establishment of Special Economic Zones. According to Castro, 46 Special Economic Zones have been approved and are projected to attract approximately P141.2 billion in investments and generate around 189,000 jobs.
“Of this, sinasabi na atin na makaka-create na special economic zones, 43 ay nasa labas ng Metro Manila. At sa island group naman po, 29 ay nasa Luzon, 12 sa Visayas at 5 sa Mindanao,” Castro said.
“Sinusuportahan pa rin po ng gobyerno ang proposal na maiangat at ma-raise yung annual personal income tax exemption sa threshold na P350,000 para yung pera na matitipid ng ating mga kababayan ay magagamit nila sa pangsariling pangangailangan,” she added.
Moreover, the government is also proposing tax relief for micro-enterprises through an exemption from the two percent Minimum Corporate Income Tax (MCIT).
Castro assured that the Executive branch is working with Congress to facilitate the timely passage of the national budget to improve public spending and stimulate economic activity.
As of September 2026, the country’s unemployment rate rose to 5.4%, compared to 5.3% in August 2026.
