Higher unemployment in November 2025 was led by weakened investor confidence following a corruption scandal linked to flood control projects, according to the Employers Confederation of the Philippines (ECOP).
While unemployment eased to 4.4 percent in November from 5 percent in October, it rose from 3.2 percent in November 2024, data from the Philippine Statistics Authority showed.
ECOP said employment growth failed to keep pace with the entry of 800,000 to 1 million new graduates and jobseekers into the labor force last year.
The employers’ group cited severe weather, geopolitical tensions, higher US tariffs and weaker seasonal hiring as contributing factors, but it maintained the corruption scandal had the primary impact.
Investors have adopted a wait-and-see approach amid the allegations and disappointment over the 2026 national budget deliberations.
ECOP president Sergio Ortiz-Luis Jr. warned that failure to resolve the issue this year could further strain the labor market.
The group said that while the services sector continues to drive job growth, investment-intensive industries such as manufacturing, construction and mining have lagged due to their sensitivity to investor sentiment.
The business community continues to work with the government to generate employment through job fairs and partnerships with the Technical Education and Skills Development Authority to address skills gaps, it said.
The group, however, cautioned that sustained job creation remains difficult unless investment activity resumes.
Regarding labor costs, the confederation reiterated its opposition against proposals for another minimum wage hike, noting that Philippine wage levels are already among the highest in ASEAN.
ECOP said the core challenge remains the high cost of goods and utilities, particularly as economic growth slowed to 4 percent in the third quarter of 2025.
