Senator Francis Escudero called for immediate action to support micro, small, and medium enterprises (MSMEs) as unemployment in the Philippines rose to 2.96 million in January 2026.
He cited the Philippine Statistics Authority’s (PSA) Labor Force Survey, which showed seasonal job losses and structural weaknesses that require urgent legislative intervention.
Escudero is pushing for expedited Senate deliberation on two bills he authored—one simplifying tax compliance and reducing costs for MSMEs, and another mandating banks to allocate a portion of their loans to small enterprises.
“Access to credit remains the lifeblood of our small businesses. Without financing, MSMEs cannot restock, modernize, or hire, and without lower compliance costs, they cannot stay afloat long enough to recover,” he said.
The two measures, pending in their respective committees since August 2025, present a coordinated strategy to reduce operational burdens and ensure capital reaches enterprises that need it most.
For Escudero, strengthening MSMEs is key to reversing rising unemployment without significant new government spending.
“These are practical, fiscally responsible reforms that go straight to the root of the problem. Every month of delay means more small businesses closing and more Filipinos losing work,” he said.
“If we want more families to find dignified, stable livelihoods, we must empower the backbone of our economy,” Escudero added.
The PSA report showed the unemployment rate climbed to 5.8 percent in January 2026, up from 4.4 percent in December 2025 and 4.3 percent a year earlier, leaving 58 out of every 1,000 workers without jobs.
Total employment fell to 47.94 million in January 2026 from 48.49 million in January 2025 and 49.43 million in December 2025.
The steepest year-on-year employment declines occurred in agriculture and forestry, wholesale and retail trade, and fishing and aquaculture—sectors largely dominated by MSMEs.
Editor’s Note: This is an updated article. Originally posted with the headline: “Escudero urges deliberation on twin bills addressing rising unemployment”
