Employment growth remained weaker than expected in 2025 as foreign investment and tourism continued to decline, due to lingering corruption issues that have dampened investor confidence, the Employers Confederation of the Philippines (ECOP) said.
In an interview on DZRH’s Special on Saturday, ECOP President Sergio Ortiz-Luis Jr. said around 800,000 to one million Filipinos enter the labor market each year, including new graduates and those reaching working age, but job creation has not kept pace.
Ortiz-Luis said while employment figures have increased, the number of available jobs remains insufficient to absorb all employable workers, leaving many behind despite joint efforts by the government and private sector to generate jobs.
He noted that foreign direct investment began weakening as early as 2023 after a period of strong inflows, with the decline accelerating due to multiple factors, including widely publicized corruption issues.
“Sa ating regime ngayon, kulang na tayo sa investment, kulang na tayo sa tourism. Dapat sana ma-solve natin itong problema nating issue sa confidence, para mas mabilis, para itong 2026 ay gumaganda naman ating economic outlook,” Ortiz-Luis said, adding that corruption concerns have become known globally and have affected the country’s investment and tourism prospects.
According to Ortiz-Luis, business groups also previously entertained several potential foreign investor delegations weekly, but such visits have now become rare.
He said policy instability, long cited as an investment barrier, had seen improvements in recent years, including measures under the Anti-Red Tape Authority (ARTA). However, he stressed that unresolved corruption controversies, particularly those linked to the 2025 national budget, continue to overshadow these gains.
“Noong pumasok itong issue ng corruption, masyadong maingay. Buong mundo alam na alam. So kailangan masolve natin ito. Put closure in this as soon as possible. Unfortunately, parang hindi maganda ang dating nitong closure. Nagmamadali ang tao, naghihintay pero parang bitin.”
Ortiz-Luis called for swift and credible investigations, saying investor confidence could only be restored if the public sees decisive action against those responsible, including alleged masterminds, not just minor offenders.
He said closure of corruption cases must be clear and timely, warning that prolonged and expanded controversies could further weaken confidence in the government’s ability to resolve the issue in the short to medium term.
Despite the challenges, Ortiz-Luis said Filipino business leaders continue to join official state visits and trade missions when invited, but the pool of investors being persuaded to enter the country has significantly shrunk.
Looking ahead to 2026, he said restoring trust remains critical to improving the country’s economic outlook.
Ortiz-Luis also cited ECOP’s ongoing collaboration with the Technical Education and Skills Development Authority (TESDA), saying partnerships with the private sector help address skills mismatches and support employment generation, even as broader investment conditions remain weak.
