Tag: unemployment

Philippines 2026 3rd Quarter GDP Growth Lands at 2.1% (Year-on-Year)

Philippines 2026 3rd Quarter GDP Growth Lands at 2.1% (Year-on-Year)

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As the Philippines prepares to host the ASEAN Summit, the gross domestic product (GDP) of the nation slowed down to 2.1% year-on-year in the 3rd quarter of this year, according to a news report by BusinessWorld. This new development makes the Philippines the economic weakling of the Association of Southeast Asian Nations (ASEAN) for 2026.

To put things in perspective, posted below is an excerpt from the news report of the Manila Bulletin. Some parts in boldface…

The Philippine economy expanded by 2.1% year on year in the third quarter, unexpectedly slowing from a year ago as agricultural output declined amid El Niño, the Philippine Statistics Authority (PSA) reported on Monday.

Gross domestic product (GDP) growth sharply slowed from the 4% expansion in the same period last year and the revised 2.4% recorded in the second quarter. The third-quarter growth was well-below the 2.7% median forecast in a BusinessWorld poll last week.

This also marked the economy’s weakest performance since the 3.8% contraction in the first quarter of 2021, during the coronavirus pandemic. Excluding the pandemic years, this was the slowest growth in over 16 years, or since the 1.8% expansion in the fourth quarter of 2009.

Agricultural production contracted by 4.8% in the third quarter, from 2.9% growth a year ago, amid bad weather. Industry slipped by 0.003% (from 0.7%), while services growth slowed to 3.7% (from 5.5%).

In the first nine months, the economy expanded by 2.5%, slower than the 4.9% growth recorded in the same period last year.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the Philippines will eventual fall into an economic recession in 2027? Do you think the current government has been too focused on the ASEAN Summit and foreign affairs while being negligent on the national economy? Do you think the government’s GDP growth target range of 3.5%-4.5% will still be achieved this year? Do you think there are many foreign investors out there who are staying away from the Philippines? Are you convinced that the Philippines is now in the state of stagflation?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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Thank you for reading. If you find this article engaging, please click the like button below, share this article to others and also please consider making a donation to support my publishing. If you are looking for a copywriter to create content for your special project or business, check out my services and my portfolio. Feel free to contact me with a private message. Also please feel free to visit my Facebook page Author Carlo Carrasco and follow me on Twitter at @CarloCarrascoPH as well as on Tumblr at https://carlocarrasco.tumblr.com/ and on Instagram at https://www.instagram.com/authorcarlocarrasco

Economist Says Philippines Has Crossed into Stagflation

Economist Says Philippines Has Crossed into Stagflation

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As far as one economist is concerned, the Philippines has crossed into stagflation pointing to factors like domestic government spending reductions, soaring costs of food, high price of oil and more, according to a news report by the Manila Bulletin.

To put things in perspective, posted below is an excerpt from the Manila Bulletin report. Some parts in boldface…

The Philippines has crossed the line from a standard cyclical slowdown into genuine stagflation, driven by global energy price shocks, domestic government spending cuts, and soaring food costs, according to a regional economist.

Speaking at “CFME Talks Macro Outlook: Global, Australia, New Zealand, and the Philippines” briefing hosted by Center for Financial and Monetary Economics (CFME) on Wednesday, Oct. 21, David G. Fernandez, senior fellow at CFME and visiting professor at Philippine Center for Economic Development (PCED), warned that consensus growth forecasts for 2026 have plummeted from more than five percent to around 3.2 percent.

When asked what markers signal the shift to genuine stagflation, Fernandez said: “Well, I think that we’ve crossed the line. The revisions indicate that that’s what markets are expecting.”

He added that near-term growth could fall below already lowered forecasts while inflation could exceed expectations, emphasizing that this outlook “has to do with—not [the] fault of the Philippines—but the oil prices and potentially significantly higher food prices.”

“Growth could even be below the lowered forecasts and that inflation could be even higher than the higher forecasts that people have,” Fernandez added. “I worry about is that the optimism or the consensus forecast that we get back to five percent growth and you see inflation come down could be too optimistic themselves.”

Stagflation is generally understood as the simultaneous occurrence of elevated inflation, stagnant economic growth, and high unemployment, although economists do not have universally accepted numerical thresholds for determining when an economy has entered such a period.

In his presentation, Fernandez said inflation projections have shifted sharply upward, from an initial 2.6 percent toward six percent, with headline consumer price index (CPI) inflation already reaching 7.2 percent.

He described the country’s near-term trajectory as an extreme stagflation story, with forecast revisions becoming increasingly severe and the Philippines remaining firmly “under the radar” for international investors.

The economic slowdown was reflected in second-quarter gross domestic product (GDP) growth, which fell to a post-pandemic low of 2.3 percent.

Fernandez cautioned that growth was cushioned by inventory stockpiling and a doubling of government fuel subsidies even as underlying domestic demand weakened.

He said public investment plunged by nearly 14 percent following public sector retrenchment linked to the flood control scandal, while private consumption growth dropped below three percent as family incomes were eroded by rising transport and food costs.

Fernandez said it remained very difficult to build a narrative for a strong recovery. While growth may have reached its floor, he projected that any subsequent rebound would remain shallow and well below the economy’s six-percent potential trend growth.

Compounding the energy crisis, he said, is a rapid acceleration of second-round effects, with businesses passing higher input costs on to consumers faster than in previous shock cycles.

Headline inflation reached 7.2 percent in both April and September, with Fernandez pointing to rice prices surging by more than 20 percent and transport costs climbing nearly 15 percent.

He also flagged the possibility of a “Godzilla El Niño” pushing food prices even higher, warning that consumers and policymakers may have to endure headline inflation hovering around seven percent for an extended period.

Meanwhile, Fernandez said the widening economic fallout has pushed the Philippines’ current account deficit forecast to more than four percent of GDP, underscoring the country’s vulnerability to imported energy shocks.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the economist is correct that the Philippines has crossed over into stagflation? Do you think there is nothing the national government can do to lower the prices of oil, fuel and other things that are essential for Filipinos? Do you think the national economy will fall into a recession by early 2028?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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Thank you for reading. If you find this article engaging, please click the like button below, share this article to others and also please consider making a donation to support my publishing. If you are looking for a copywriter to create content for your special project or business, check out my services and my portfolio. Feel free to contact me with a private message. Also please feel free to visit my Facebook page Author Carlo Carrasco and follow me on Twitter at @CarloCarrascoPH as well as on Tumblr at https://carlocarrasco.tumblr.com/ and on Instagram at https://www.instagram.com/authorcarlocarrasco

WR Advisory Group: Philippines Very Risky for Investors

WR Advisory Group: Philippines Very Risky for Investors

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Based on its research covering a wide range of economic factors, financial readings and the public’s perception of governance, the WR Advisory Group finds the Philippines very risky for investors, according to a news report by the Manila Bulletin.

To put things in perspective, posted below is an excerpt from the Manila Bulletin report. Some parts in boldface…

Investing in the Philippines is expected to be “very risky” in the coming months, driven by economic uncertainties and growing political dissatisfaction with the Marcos administration, according to professional services firm WR Advisory Group.

Based on its inaugural Philippine Political and Country Outlook Report, WR Advisory Group assigned the country a score of 10.375 out of 25, placing it at an elevated risk level with a deteriorating outlook.

WR Advisory Group President and Chief Executive Officer (CEO) Robin Michael Garcia said the score indicates that investing in the country carries heightened risk due to ongoing economic and political factors.

“You can invest, but just know that there are risks. So if you see a potential opportunity in this period, it’s going to be risky,” Garcia said in a media briefing on Thursday, Oct. 22.

Regarding the country’s economic outlook, he noted a strong possibility of stagflation, a scenario marked by simultaneous high inflation and elevated unemployment.

Garcia added that these risks are further compounded by national government debt, which reached ₱19.07 trillion at the end of July, equivalent to 66 percent of the country’s gross domestic product (GDP).

Economic growth also slowed to 2.3 percent in the second quarter, while inflows of foreign direct investment (FDI) dropped by more than 33 percent through May.

Garcia warned that stagflation is a real possibility, particularly if the government “does not pay enough attention to economic management and economic policy.”

“The more that we think about other things, the more that the attention is going everywhere, except for solving this potential scenario,” he stressed.

Much of that focus, according to Garcia, has shifted to political controversies, including the ongoing impeachment proceedings against Vice President Sara Duterte.

While clarifying that he was not questioning the validity of the impeachment, he explained that the proceedings come at a time when Congress should be prioritizing legislative reforms to address the country’s economic challenges.

“At this time, there are a lot of economic issues. Firms care more about economic legislation and economic policy rather than mere politics,” Garcia said.

He identified politically sensitive sectors, including energy, telecommunications, mining, and banking, as the most vulnerable to these heightened risks.

The report also noted that President Ferdinand Marcos Jr.’s performance ratings continue to decline, while frequent turnover in his Cabinet poses additional stability risks for businesses.

“Senate confidence also deteriorated sharply, adding institutional strain to an already weak legislative and regulatory environment,” the report stated.

These factors are accompanied by a negative assessment of national conditions, with 68 percent of Filipinos saying that the Philippines is going in the wrong direction, according to the report.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the WR Advisory Group is correct with its analysis about the Philippines being very risky for investors? Are you convinced that foreign investors are avoiding the Philippines right now? Do you think the Philippines is going towards the wrong direction now?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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Thank you for reading. If you find this article engaging, please click the like button below, share this article to others and also please consider making a donation to support my publishing. If you are looking for a copywriter to create content for your special project or business, check out my services and my portfolio. Feel free to contact me with a private message. Also please feel free to visit my Facebook page Author Carlo Carrasco and follow me on Twitter at @CarloCarrascoPH as well as on Tumblr at https://carlocarrasco.tumblr.com/ and on Instagram at https://www.instagram.com/authorcarlocarrasco

World Bank Sees Philippine Economy Growing 4.6% This Year And 5.3% In 2027

World Bank Sees Philippine Economy Growing 4.6% This Year And 5.3% In 2027

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With the ongoing war in the Middle East, the hiked prices of fuel and other problems happening already, the World Bank (WB) sees the economy of the Philippines achieving gross domestic product (GDP) growth of 4.6% this year and 5.3% next year, according to a Manila Bulletin news report.

To put things in perspective, posted below is an excerpt from the news report of the Manila Bulletin. Some parts in boldface…

Philippine economic growth would likely remain below its potential of at least six percent until the end of the Marcos Jr. administration, according to the latest forecasts by the World Bank.

Documents on the latest $800-million Philippines Growth and Jobs Development Policy Loan (DPL) 1, approved by the Washington-based multilateral lender last week, showed a projected 4.6- percent gross domestic product (GDP) growth rate for the country in 2026, inching up from the post-pandemic-low of 4.4 percent in 2025. This forecast is below the government’s downgraded five- to six-percent growth target for the year.

For 2027, the World Bank expects the Philippine economy to grow by 5.3 percent, which would also be lower than next year’s downscaled 5.5- to 6.5-percent goal.

By the time President Ferdinand R. Marcos Jr. steps down and turns over to a new administration in 2028, World Bank projections showed 5.5-percent GDP growth, still below the six- to seven-percent target.

“The growth outlook remains moderate over the near term, with activity expected to remain subdued in 2026 before gradually strengthening… The impact of the government’s anti-corruption efforts and a significantly lower infrastructure budget in 2026 is expected to weigh on public investment,” the World Bank said.

The lender added that a smaller statistical carry-over into 2026 signals weaker initial momentum, with growth projected to average 5.2 percent in 2026 to 2028, driven by recovering private domestic demand amid easing inflation and financing conditions.

“Private consumption is expected to benefit from stable labor income and improved confidence, while private investment gradually strengthens alongside improved credit conditions and a normalization of public capital spending. External demand, particularly for electronics and artificial intelligence (AI)-related exports, is projected to remain supportive, although global trade uncertainty presents downside risks,” the document said.

This World Bank report was prepared in mid-February before it was disclosed last week, which means that the impact of the war in the Middle East was not yet taken into consideration by the lender in its GDP growth forecasts.

At that time, the World Bank projected headline inflation to stay within the Bangko Sentral ng Pilipinas’ (BSP) two- to four-percent target range, averaging about 2.8 percent in 2026 to 2028.

Before the domestic price pressures wrought by the Middle East conflict that sent global oil prices soaring, the World Bank believed that the BSP would likely keep a neutral-to-supportive policy stance while balancing the still-negative output gap against risks from exchange-rate volatility and food inflation. A negative output gap refers to the economy expanding below its potential, which, for the Philippines, is estimated at about six percent annually.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the economic growth predictions of the World Bank for the Philippines will turn out to be true in the near future? Do you think there is any hope left for the economy of the Philippines to achieve annual GDP growth of 6%? Do you think more foreign investors will be convinced to invest in the Philippines this year?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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Thank you for reading. If you find this article engaging, please click the like button below, share this article to others and also please consider making a donation to support my publishing. If you are looking for a copywriter to create content for your special project or business, check out my services and my portfolio. Feel free to contact me with a private message. Also please feel free to visit my Facebook page Author Carlo Carrasco and follow me on Twitter at  @HavenorFantasy as well as on Tumblr at https://carlocarrasco.tumblr.com/ and on Instagram athttps://www.instagram.com/authorcarlocarrasco

GCash Blocks Over 3,200 Merchants Linked To Gambling And Scamming

GCash Blocks Over 3,200 Merchants Linked To Gambling And Scamming

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In a serious attempt to protect its users and restore confidence, digital wallet GCash blocked more than three thousand and two hundred merchants that were linked to illegal online gambling and scamming, according to a news report by the Manila Bulletin.

To put things in perspective, posted below is an excerpt from the news report of the Manila Bulletin. Some parts in boldface…

Digital wallet giant GCash has blocked more than 3,200 merchants found to be linked to illicit activities, including illegal online gambling platforms, as part of its effort to bolster consumer protection.

In a statement, GCash said it has been coordinating with the Cybercrime Investigation and Coordinating Center (CICC) since last year to shut down these merchants’ access to the digital wallet.

By prohibiting their access to the digital wallet, this move prevents illegal operators from misusing the QRPh payment rail, which has been used to lure users to fake GCash payment pages.

Many of these illegal merchants employ deceptive tactics to mislead customers into sending payments to unauthorized accounts. Among the most common schemes is QR masking, where seemingly legitimate QR codes redirect payments to a different account.

Scammers also create fake payment pages that imitate legitimate businesses, as well as pages designed to mimic the official GCash interface to deceive customers and collect unauthorized payments.

GCash said it does not partner with these illegal merchants and operators, noting that they are typically independent entities attempting to route transactions through legitimate digital services.

To enhance consumer protection, GCash deploys proactive monitoring to identify and disable these schemes, which are then reported to authorities and the CICC to support government enforcement efforts.

“Entities attempting to misuse the GCash payment app and QRPh without authorization or are masking QRPh leading to unauthorized transactions are flagged, suspended, and reported to the relevant authorities,” it said.

Currently, GCash has measures in place to detect unauthorized merchant activity before users are scammed, helping maintain service integrity.

Furthermore, it immediately disables links to fraudulent operations and reports suspicious transactions to the CICC and the Anti-Money Laundering Council (AMLC).

 “By proactively blocking unauthorized actors and reporting them to our regulators and authorities, we are helping protect Filipinos and maintain trust in the country’s digital financial ecosystem,” Miguel Geronilla, chief information and security officer of GCash.

As another layer of security, GCash said users should never share their mobile personal identification number (MPIN) or one-time password (OTP), as these details are not required.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think GCash has done a huge effort to protect its users and other customers? What do you think the scammers and purged merchants will do now that they have been blocked by GCash?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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Thank you for reading. If you find this article engaging, please click the like button below, share this article to others and also please consider making a donation to support my publishing. If you are looking for a copywriter to create content for your special project or business, check out my services and my portfolio. Feel free to contact me with a private message. Also please feel free to visit my Facebook page Author Carlo Carrasco and follow me on Twitter at  @HavenorFantasy as well as on Tumblr at https://carlocarrasco.tumblr.com/ and on Instagram athttps://www.instagram.com/authorcarlocarrasco

Philippines Unemployment Rate Jumps To 5.8% In January 2026

Philippines Unemployment Rate Jumps To 5.8% In January 2026

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With weaker economic growth and other problems already affecting the Philippines, the unemployment rate of the nation jumped to 5.8% this past January, according to a news report by BusinessWorld.

To put things in perspective, posted below is an excerpt from the news report of the BusinessWorld. Some parts in boldface…

The Philippines’ unemployment rate climbed to 5.8% in January 2026, marking its highest level in more than three years, as the labor market cooled after the holidays, the Philippine Statistics Authority (PSA) said on Friday.

Preliminary results from the January 2026 Labor Force Survey (LFS) showed the number of unemployed Filipinos rose to 2.96 million, from 2.17 million in the same month last year, and 2.26 million in December 2025.

PSA Assistant Secretary Divina Gracia L. Del Prado said that the January unemployment rate was the highest recorded since June 2022, when unemployment stood at 6.0%.

The January jobless rate was higher than the 4.3% in January 2025, and the 4.4% in December 2025.

“Usually in our time series, after the Christmas season, our employment rate really goes down… because there are no longer available jobs,” Ms. Del Prado told a livestreamed news briefing.

“Because in December, of course, there are lots of jobs available for our labor force. But month on month, the number of unemployed increased by 695,000. And most of the reasons for this are that people got tired — maybe they were exhausted from working in December, or believing that there are no jobs available,” she added.

The quality of employment also saw a shift, as the underemployment rate — the proportion of those with jobs but seeking more hours — stood at 13.2% in January 2026. This was a tad lower than the 13.3% underemployment rate in January 2025, but higher than the 8% in December 2025.

About 6.35 million Filipinos were considered underemployed persons in January, slightly decreased from the 6.47 million underemployed in January 2025, and 2.42 million seen in December 2025.

The country’s employment rate fell to 94.2% in January 2026, down from 95.7% in January 2025 and 95.6% in December 2025. This was also the lowest employment rate recorded since June 2022 when it stood at 94%.

The number of employed persons in January 2026 fell to 47.94 million, a decline from 48.49 million employed in the same month last year, and 49.43 million in December 2025.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you personally know anyone who has been unemployed for the past three months? Do you consider the higher unemployment rate a sign that the economy of the Philippines could fall into a recession this year?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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Thank you for reading. If you find this article engaging, please click the like button below, share this article to others and also please consider making a donation to support my publishing. If you are looking for a copywriter to create content for your special project or business, check out my services and my portfolio. Feel free to contact me with a private message. Also please feel free to visit my Facebook page Author Carlo Carrasco and follow me on Twitter at  @HavenorFantasy as well as on Tumblr at https://carlocarrasco.tumblr.com/ and on Instagram athttps://www.instagram.com/authorcarlocarrasco

2.26 Million Filipinos Jobless in December 2025, Unemployment Rate Lands At 4.4%

2.26 Million Filipinos Jobless in December 2025, Unemployment Rate Lands At 4.4%

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Over two million Filipinos were reported jobless for the month of December 2025 with the unemployment rate landing at 4.4%, according to a business news report by the Manila Bulletin.

To put things in perspective, posted below is an excerpt from the business news report of Manila Bulletin. Some parts in boldface…

The country’s unemployment rate held steady at 4.4 percent in December 2025 from the previous month, but underlying labor market data pointed to emerging softness as the number of jobless Filipinos continued to rise.

The latest preliminary data from the Philippine Statistics Authority (PSA) released Friday, Feb. 6, showed that around 2.26 million Filipinos were unemployed in December, up sharply from 1.63 million during the same month in 2024 and slightly higher than the 2.25 million recorded in November.

The increase came alongside a labor force participation rate of 64.4 percent, translating to about 51.69 million Filipinos aged 15 and above who were either employed or actively seeking work.

The employment rate settled at 95.6 percent for the month, down from 96.9 percent in December 2024, while the underemployment rate fell to a single-digit eight percent in December—the lowest on record, National Statistician Claire Dennis S. Mapa noted at a press briefing. The last time that underemployment reached a single-digit rate was in May 2024, when it stood at 9.9 percent.

For full-year 2025, the employment rate slipped to 95.8 percent from 96.2 percent in 2024, while the unemployment rate rose to 4.2 percent from 3.8 percent. Underemployment held steady at 11.9 percent, the same level recorded in 2024.

Mapa attributed the year-on-year increase in unemployment primarily to the construction sector, which reportedly shed 550,000 jobs.

He noted that weak growth in construction—particularly public construction—was the main driver of the rise in unemployment. The sector further declined in the fourth quarter of 2025 compared with the third quarter.

Reductions in employment were also observed in transportation and storage (258,000), fishing and aquaculture (258,000), and manufacturing (255,000), but Mapa emphasized that construction accounted for the largest impact.

While employment grew by around 172,000 in 2025 compared with 2024, Mapa said this was the lowest annual increase in the past three years, excluding the pandemic years.

He noted that employment had risen by 1.29 million in 2023 compared with 2022 and by 664,000 in 2024 compared with 2023, highlighting a clear downward trend.

The slowdown was largely due to the construction sector contributing fewer workers compared with previous years, as reduced public construction activity translated into lower employment.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think unemployment all over the Philippines will gradually get worse over the next twelve months? If the economic growth of the Philippines weakens further, do you think job opportunities will be reduced?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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Thank you for reading. If you find this article engaging, please click the like button below, share this article to others and also please consider making a donation to support my publishing. If you are looking for a copywriter to create content for your special project or business, check out my services and my portfolio. Feel free to contact me with a private message. Also please feel free to visit my Facebook page Author Carlo Carrasco and follow me on Twitter at  @HavenorFantasy as well as on Tumblr at https://carlocarrasco.tumblr.com/ and on Instagram athttps://www.instagram.com/authorcarlocarrasco

HSBC Says Philippines Should Focus On Strengthening Services Sector

HSBC Says Philippines Should Focus On Strengthening Services Sector

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As far as HSBC is concerned, the Philippines would be better off strengthening its services sector instead of playing catch up with manufacturing, according to a business article published by the Manila Bulletin.

To put things in perspective, posted below is an excerpt from the business article of Manila Bulletin. Some parts in boldface…

The Philippines should leverage its services sector to stand out in the global investment landscape, as competition with manufacturing-led economies is well out of reach, according to an HSBC economist.

The country has been lagging behind its peers in Southeast Asia in terms of attracting foreign investments.

Last year, the Philippines secured the sixth spot in the region, trailing behind Singapore, Indonesia, Vietnam, Malaysia, and Thailand, according to the report from the United Nations Conference on Trade and Development (UNCTAD).

This trend is expected to continue this year amid uncertainties in global trade and especially due to the country’s relatively low manufacturing activity.

HSBC Asia Economics Associate Director Ines Lam said the limited scale of the manufacturing sector in the Philippines hinders its ability to draw foreign capital.

Lam explained that attempting to be competitive in manufacturing at this late stage could ultimately be ineffective and counter to the government’s efforts to secure investments.

“Everyone wants to get a piece of the global supply chain. Everyone wants to be a supplier to Apple. But for the Philippines, I think the Philippines’ unique value proposition is its people and soft skills,” she said during the 23rd International CEO Conference hosted by the Management Association of the Philippines (MAP).

Instead of trying to catch up in manufacturing, Lam said the country could instead shift its focus to strengthening its services sector, in which it has an advantage compared to regional partners.

The economist said upskilling the country’s talented pool of workers is a critical component in boosting the sector. She noted that the educational proficiency and English expertise of Filipino workers are the top qualities sought by global employers and investors.

“I’m not saying that manufacturing is not important, but because the Philippines has already found its advantage, I think it’s important that the Philippines does not lose this,” said Lam.

“You provide something new and you improve your offerings in terms of BPO (business process outsourcing) and exports of services. Then, that will help the Philippines to stand out in this world,” she added.

Let me end this post by asking you readers: What is your reaction to the recent developments? Do you agree with HSBC’s economic opinion about the Philippines? Do you think the Philippines should focus more on strengthening the services sector instead of manufacturing? What do you think makes the Philippines not so good at manufacturing when compared with its Asian neighbors?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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Thank you for reading. If you find this article engaging, please click the like button below, share this article to others and also please consider making a donation to support my publishing. If you are looking for a copywriter to create content for your special project or business, check out my services and my portfolio. Feel free to contact me with a private message. Also please feel free to visit my Facebook page Author Carlo Carrasco and follow me on Twitter at  @HavenorFantasy as well as on Tumblr at https://carlocarrasco.tumblr.com/ and on Instagram athttps://www.instagram.com/authorcarlocarrasco

Philippines Unemployment Rate Hits 5.3% in July 2025

Philippines Unemployment Rate Hits 5.3% in July 2025

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As controversy about flood control projects continues to dominate the news cycles, more Filipinos reported themselves as unemployed this past July as the unemployment rate jumped to 5.3%, according to a GMA Network business news report.

To put things in perspective, posted below is an excerpt from the business news report of GMA. Some parts in boldface…

The number of Filipinos without jobs or livelihoods increased in July 2025 due to weather disturbances which affected various sectors of the labor market during the period, according to the results of the Philippine Statistics Authority’s latest Labor Force Survey.

At a press briefing on Wednesday, PSA chief and National Statistician Claire Dennis Mapa reported that unemployed persons, ages 15 and above, rose to 2.59 million from 1.95 million in June 2025. This was also higher than the 2.38 million jobless in July 2024.

As a percentage of 48.64 million participants in the labor force who are actively looking for labor opportunities during the period, the number of jobless persons translated to an unemployment rate of 5.3%, up from 3.7% month-on-month.

This means 53 in 1,000 individuals do not have jobs or livelihoods during the period. This was also the highest unemployment since August 2022’s 5.3%.

Labor force participation in July 2025 declined from 52.42 million in June 2025 and 50.06 million in July 2024.

Likewise, employed persons, or those with jobs and livelihoods, during the period contracted to 46.05 million from 50.47 million in June 2025 and 47.68 million in July 2024.

As a percentage of labor force participants, the employment rate stood at 94.7%, lower than the 96.3% seen in June 2025 and 95.3% in July 2024.

Mapa attributed the increase in unemployed persons and decreases in both employed and labor force participation to the series of storms which hit the country during the month.

“Una talaga ang nangyari dito sa July round is first tinamaan ang ating bansa, maraming areas ng typhoons. Ito talaga ‘yung nakita namin na main reason kung bakit bumababa ang labor force participation at employment na rin,” the PSA chief said.

(First, what we saw during the July round is that many areas of the country were hit by typhoons. This was really the main reason why the labor force participation and employment numbers declined.)

Let me end this post by asking you readers: What is your reaction to the recent developments? Do you think the unemployment rate of the Philippines will remain above 5% until the end of the year?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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Thank you for reading. If you find this article engaging, please click the like button below, share this article to others and also please consider making a donation to support my publishing. If you are looking for a copywriter to create content for your special project or business, check out my services and my portfolio. Feel free to contact me with a private message. Also please feel free to visit my Facebook page Author Carlo Carrasco and follow me on Twitter at  @HavenorFantasy as well as on Tumblr at https://carlocarrasco.tumblr.com/ and on Instagram athttps://www.instagram.com/authorcarlocarrasco

Philippines Business Process Outsourcing (BPO) Sector and Government React To Keep Call Centers in America Act of 2025

Philippines Business Process Outsourcing (BPO) Sector and Government React To Keep Call Centers in America Act of 2025

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It is not surprising that both the Business Process Outsourcing (BPO) sector of the Philippines and the Department of Trade & Industry (DTI) reacted to the filing of the Keep Call Centers in America Act of 2025 which was filed in the United States Senate, as reported separately by BusinessWorld, BusinessMirror and the Philippine News Agency (PNA).

For the newcomers reading this, the Philippines BPO sector (sometimes referred to simply as the call center industry even though many local firms have gone beyond taking calls) is now a major part of the national economy with more than 1.7 million Filipinos employed, $35 billion in annual export revenues and the United States of America (USA) alone is the single largest market with 2024 export revenues reported at $25 billion (reported by BusinessMirror).

In the Filipino perspective, call centers are very important because they offer a lot of high-paying jobs for Filipinos who badly need employment. The so-called call center effect on local society and economics includes new stores and food vendors opening up nearby, the opening of new convenience stores operating 24/7, the established restaurants nearby serving customers around-the-clock, and the opening of new branches of banks. Of course, the income Filipinos earned from their BPO jobs enabled them to acquire new things, pay their bills, subscribed to digital services, and move into better residences while helping their families make ends meet.

Having been a call center agent myself a very long time ago, I have witnessed such socio-economic developments happen whenever a call center is present and I was in Cebu province.

To put things in perspective, posted below is an excerpt from the news article of the PNA highlighting the reaction of the DTI. Some parts in boldface…

Diversification will help cushion the possible impact of the proposed “Keep Call Centers in America Act,” aimed to protect local jobs by removing federal grants to companies that have call centers outside the United States.

The business process outsourcing (BPO) industry contributes a big part to the Philippine economy, with employment of around 1.4 million in 2024 and revenues of about USD38 billion. Around 70 percent of clients are based in the US.

Department of Trade and Industry (DTI) Secretary Cristina Roque said there are no discussions yet with officials of the Information Technology and Business Process Association of the Philippines (IBPAP) but expressed openness to talk about possible measures to help the sector.

“But for us, (the) DTI, of course, we’ll continue to help the IT-BPO (and) IBPAP businesses in whatever they need from us. Of course, we’ll assist the same way we’ve assisted in the past,” she said.

“We can’t just look at the US as the only market. The world is the market. If you look at their population as compared to the world, it will show you that we should really find other avenues to explore.”

Next, the Information Technology and Business Process Association of the Philippines (IBPAP) confirmed it is still evaluating the potential impact of the Keep Call Centers in America Act of 2025. For insight, posted below is an excerpt from the BusinessWorld report. Some parts in boldface…

THE IT & Business Process Association of the Philippines (IBPAP) said it is still evaluating the potential impact of the proposed Keep Call Centers in America act.

“It talks about US call centers so I really do not know who that will affect with the way that it is worded,” IBPAP President and Chief Executive Officer Jonathan R. Madrid said on the sidelines of an ECCP AI Forum.

“We need to understand it a little bit more. I think I know what their intention is. But I don’t know the likelihood of this passing. Obviously it is something we are monitoring, and with the way that it is worded, we need to study it more,” he added.

Introduced in the US Senate last month, the bill aims to impose restrictions on US firms outsourcing their call center operations.

In particular, the bill, if signed into law, will render employers outsource call center work overseas ineligible for new federal grants or guaranteed loans.

“I am speaking to the American Chamber of Commerce; we are discussing it and we will see. But we are all aligned on how we will manage this,” he said.

“While the bill is still in the early stages of the legislative process, we remain committed to keeping our stakeholders informed, providing timely guidance, and ensuring that the Philippine IT-BPM industry is well-positioned to adapt and thrive in a changing regulatory environment,” he said.

Philippine Institute for Development Studies Senior Research Fellow John Paolo R. Rivera said that the proposed bill poses a “clear risk to the Philippine IT-BPM industry, especially in the call center segment.”

“By restricting access to US federal grants, contracts, and loans for companies that offshore customer service jobs or do not properly disclose them, the bill raises the regulatory and reputational costs for offshore operations,” he said via Viber .

He said the Philippine industry has been evolving beyond voice-based call centers, which are less exposed to call center-specific legislation.

“We now see strong growth in high-value services such as finance, healthcare information management, legal process outsourcing, software development, and data analytics,” he said.

With the US Senate’s proposal to bring back call centers to the US, he said that the Philippines must continue to move up the value chain to reduce exposure to such policies.

“While the bill underscores vulnerabilities in our call center export model, it also reinforces the importance of accelerating investment in high-value, tech-enabled services where the Philippines can maintain global competitiveness,” he added.

Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort said the bill could be “a potential drag on future growth of the industry.”

For this year, the IT-BPM industry is expected to generate $40 billion in export revenue and increase its workforce to 1.9 million.

To examine the details of the Keep Call Centers in America Act of 2025, click here and here.

Let me end this post by asking you readers: What is your reaction to the recent developments? Do you think the IT-BPM sector of the Philippines has what it takes to protect itself from whatever effects the Keep Call Centers in America Act of 2025 could create if ever it gets signed into law? Do you personally know anyone who is working in a BPO firm or a call center here in the Philippines? What kind of assistance do you think the national government will offer to the IT-BPM sector? Do you think the existing call centers should search for English-speaking clients in England, Ireland, Scotland, Israel and the like?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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