President Ferdinand Marcos Jr.'s administration is pushing for faster investment approvals, stronger job-matching mechanisms, and expanded skills training as it seeks to contain rising unemployment, with Malacañang saying that improving the ease of doing business is key to generating more jobs in the private sector.

In a Palace press briefing on Wednesday, Presidential Communications Office Undersecretary and Palace Press Officer Claire Castro said the Philippine Statistics Authority (PSA) reported that the unemployment rate rose to six percent in July, equivalent to about 3.14 million unemployed Filipinos.

The latest figure was higher than the 5.3 percent recorded in July 2025 and 4.7 percent in April this year. The increase came even as the economy generated more employment, underscoring the challenge of absorbing the growing number of Filipinos entering the labor market.

Castro said the government is looking at the latest figures within the broader expansion of the labor force and employment, citing data showing that the labor force reached 52.36 million, while total employment increased to 49.21 million.

“Opo, nabalitaan nga po natin iyan at mismo si Secretary Arsenio Balisacan ng DEPDev ay nagbigay ng kaniyang pahayag. May mga positibo at patungkol po dito sa nag-expand ang labor force ng 52.36 million Filipinos at ang total employment naman ay lumago sa 49.21 million,” Castro said.

The figures mean that employment increased by about 3.16 million from a year earlier, but the labor force expanded by an even larger 3.72 million, leaving the economy with a substantial number of new job seekers who were not immediately absorbed.

Castro said the development makes it important for the government to keep removing barriers to private investment, which she said could expand businesses' capacity to create jobs.

“Sabi nga po niya ay ito ay isyu ng progress and challenge. Pero ang pinaka-susi dito ay ang patuloy na magkaroon ng improvement sa ease of doing business in the country,” Castro said, referring to the assessment of Department of Economy, Planning and Development Secretary Arsenio Balisacan.

She said a faster and more efficient process for securing government requirements could encourage investors to establish or expand businesses in the country, creating additional employment opportunities.

The Palace position puts private-sector investment at the center of the administration's employment strategy, alongside government spending on infrastructure and other public programs. The objective is to increase the economy's capacity to absorb the rapidly expanding workforce.

Castro also cited continuing reforms under the National Education and Workforce Development Plan for 2026 to 2035, which seeks to align education, training and skills development with labor-market requirements and the ASEAN Mutual Recognition Arrangements on qualifications and skills certification.

On immediate employment assistance, Castro said the Department of Labor and Employment continues to conduct nationwide monthly Trabaho Agad job fairs, while the government is strengthening the network of Public Employment Service Offices (PESO) operated by local government units to connect job seekers with employers.

She cited Makati City as an example of the potential of strengthened local employment networks, noting that the city's Public Employment Service Office (PESO) had recently reported successful job placements among residents seeking employment.

The administration is also addressing employment disruptions caused by the Middle East crisis, with some overseas Filipino workers repatriated from affected countries and potentially needing help finding new employment opportunities, Castro said.

At the same time, the government continues to pursue skills upgrading through the Technical Education and Skills Development Authority's Upskilling Alliances, intended to improve workers' employability as industries' skills requirements evolve.

While unemployment increased, the PSA data also showed an improvement in the quality-related labor indicator, with the underemployment rate falling to 12.9 percent in July from 14.8 percent a year earlier. Nevertheless, some 6.33 million employed Filipinos remained underemployed, indicating continued demand for additional working hours or better employment opportunities. Presidential News Desk