Policy measures are being put in place to improve labor market conditions in the country and address the impacts of domestic and global developments, the Department of Economy, Planning, and Development (DEPDev) said Friday.

The department made the statement after the Philippines Statistics Authority (PSA) earlier reported a rise in the unemployment rate to 4.4 percent in December 2025 from 3.1 percent in the same month in 2024.

Lower figures were also reported over the same period for the labor force participation rate from 65.1 percent to 64.4 percent, and the employment rate from 96.9 percent to 95.6 percent.

However, the underemployment rate improved from 10.9 percent to 8 percent, the lowest since April 2005.

DEPDev Officer in Charge, Undersecretary Rosemarie Edillon, in a statement, said that “as we make 2026 a rally point to revitalize PDP (Philippine Development Plan) implementation, we will prioritize employment creation by restoring consumer and business confidence, reduce the cost of doing business, encourage innovation, and expand training and reskilling opportunities.”

National Statistician Claire Dennis Mapa, during the briefing for the December 2025 labor force participation survey, attributed the decline in the number of Filipinos working last December partly to the lower contribution of the construction sector because of the flood control mess.

Edillon said the government thus “would resume and accelerate the completion of delayed infrastructure projects and prioritize the implementation of high-impact programs, activities, and projects in crucial sectors.”

She said programs to utilize digital technologies to improve the capacity of high-productivity sectors, such as the information technology-business process management and manufacturing, will be done.

“If we can expand global capability centers and develop specialized digital services, we can generate high-value jobs and enhance the country’s competitive position in the global market,” she added. (PNA)