Job shortage tops worries of Philippine business leaders — WEF

A shortage of jobs is emerging as the biggest worry for Philippine business leaders, according to the World Economic Forum (WEF), a sign that economic growth risks falling short of what’s needed to absorb workers over the next two years.

Philippine executives ranked weak public services and social protection as their second concern in the WEF’s 2026 Global Risks Report, with respondents pointing to shortcomings in education, infrastructure and pension systems.

Business leaders also flagged the spread of misinformation and disinformation, unintended effects of artificial intelligence, and inflation as key threats to the economy.

Leonardo A. Lanzona, an economics professor at the Ateneo de Manila University, said the Philippine executives’ concern over jobs reflects the recent economic slowdown.

“As the economy screeches to a slowdown as a result of the decrease in government expenditures, aggregate demand decreases,” he said in a Messenger chat.

The lack of additional opportunities is also causing a number of businesses, particularly micro, small, and medium enterprises, to fail, Mr. Lanzona said.

“Consequently, this economic slowdown brings about significant unemployment,” he added.

In the first 11 months of 2025, the unemployment rate averaged 4.19% or equivalent to 2.25 million jobless Filipinos. This is higher than the 3.9% jobless rate, which is equivalent to 1.66 million in the same period in 2024.

“As most of the budget is eaten by debt, the situation is aggravated by lower social protection, political infighting, and a labor-saving technology such as AI (artificial intelligence) that can further reduce labor demand,” Mr. Lanzona said.

Meanwhile, the WEF report showed globally, the biggest risk over the next two years remained geoeconomic confrontation.

The WEF’s Global Risks Perception Survey captured insights from over 1,300 experts worldwide.

Other top risks cited by global business leaders included misinformation and disinformation, societal polarization, extreme weather events, and state-based armed conflict.

“Geoeconomic confrontation has emerged as the most severe risk over the next two years, while economic risks have experienced the sharpest rises among all risk categories over the two-year timeframe,” WEF Managing Director Saadia Zahidi said.

Rising inflation and potential asset worries rose as countries face high debt burdens and volatile markets amid growing concerns over an economic downturn, she said.

The WEF noted that 18% of surveyed participants identified geoeconomic confrontation as the top risk likely to trigger a material global crisis in 2026.

This was followed by state-based armed conflict (14%), extreme weather events (8%), societal polarization (7%), misinformation and disinformation (7%), and economic downturn (5%).

Meanwhile, over the next 10 years, survey participants expect extreme weather events to become even more severe. — Aubrey Rose A. Inosante