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The Philippines is doubling its efforts to find the operator for the North-South Commuter Railway (NSCR), the Department of Transportation (DoTr) said, as it hopes to issue bidding documents later this month or early October.

This came after the DoTr concluded the final leg of its roadshow for the NSCR project which gained the interest of foreign companies, mainly from Japan.

“We’re very happy to see the attendance in this fourth leg for our O&M (operations and maintenance) roadshow. It only goes to show that we are in the right direction in terms of structuring and developing this O&M concession,” Transportation Undersecretary Timothy John R. Batan said in a statement on Thursday.

He said there was a high turnout of participants during the final leg of the NSCR market sounding event in Japan.

Mr. Batan said around 28 Japanese companies including Mitsubishi Corp., Hitachi Ltd., Tokyo Metro, Sumitomo Corp.; and Alstom Japan have signified their interest in the O&M for NSCR.

The DoTr has been ramping up its roadshows to promote the PHP 229.32-billion O&M contract for the NSCR project. It had conducted similar events in Singapore and Paris, France.

The agency will now consolidate comments from roadshow participants which will be included in the bidding document and concession agreement to be issued within this month or next month, Mr. Batan said.

Asian Development Bank (ADB) Director for Office of Markets Development and Public-Private Partnership (PPP) Siddhartha Bhaskar Shah said the ADB and the DoTr expect to award the concession by March or April 2026.

“The immediate next step to look forward to is the launching of the bid documents which we intend to do by the end of this month and will kick off the formal bidding process which will continue over the next six months with the idea that the bid will be awarded sometime in the March-April time frame,” he said.

The ADB is the technical advisory services provider of the DoTr for the NSCR project.

“We will reflect those in our bidding documents, our concession agreement, so by the end of September of the first week of October we will be able to officially launch and publish the tender for this O&M concession,” Mr. Batan said.

Nigel Paul C. Villarete, a senior adviser on public-private partnerships at the technical advisory group Libra Konsult, Inc., said public-private partnerships for O&M projects are more attractive compared to build-operate-transfer (BOT) types of projects.

“I am not particularly sure if roadshows can help a lot, but these are more advertising efforts. Even without those (roadshows), we’ll get the full array of prospective PPP operators from all over,” Mr. Villarete said in a Viber message.

“The more important thing is that the agency properly drafts the proposed PPP contracts that strikes a balance between sufficient protection for the country’s economic interests and high expected returns to draw the interests of private sector capital,” he added.

The 147-kilometer NSCR will connect Malolos, Bulacan with Clark International Airport, and Tutuban, Manila with Calamba, Laguna. The PHP 873-billion project is co-financed by the Japan International Cooperation Agency (JICA) and the Asian Development Bank. It will have 35 stations and three depots.

According to the DoTr, the NSCR can partially operate its Valenzuela to Malolos line by 2027; while the Malolos to Clark segment can start operations by 2028. — Ashley Erika O. Jose

The Philippines’ unemployment rate rose to a three-year high of 5.3% in July as a series of typhoons and monsoon rains dented hiring activity, the statistics agency said on Wednesday.

The number of jobless Filipinos increased to 2.59 million in July from 2.38 million a year prior and 1.95 million in June, preliminary data from the Philippine Statistics Authority’s (PSA) labor force survey showed.

The 5.3% unemployment rate was the highest in three years or since the 6% in June 2022, which had reflected the impact of the pandemic lockdowns. It also matched the jobless rate seen in August 2022.

The July rate was also higher than the 4.7% recorded in the same month in 2024 and the 3.7% in June 2025.

On average, the jobless rate for 2025 thus far is at 4.1%, a tad higher compared to the 4% in the comparable year-ago period.

National Statistician Claire Dennis S. Mapa said the jobless rate went up in July due to the impact of four typhoons and the southwest monsoon on the agricultural sector.

The Philippines experiences more tropical cyclones than any other region in the world, averaging about 20 each year. Typhoon activity is most intense from July to October, when nearly 70% of all cyclones develop, according to the country’s official weather bureau.

The agricultural sector (skilled agricultural, forestry, and fishery workers) lost 974,000 jobs year on year. In terms of major industries, the agriculture and forestry sectors lost 1.38 million.

“The agriculture sector is the contributor to the spike in unemployment due to the adverse weather conditions and multiple tropical depressions last July. I cannot predict if this is just a one-time occurrence as there are still projections of weather disturbances this year,” Labor Secretary Bienvenido E. Laguesma told BusinessWorld via Viber.

The agriculture subsectors that mainly contributed to the year-on-year decline in jobs were the cultivation of paddy rice (-750,000) and corn (-456,000), Mr. Mapa said.

“We’ve already seen this since January — that there has really been a decline in employment in rice. So, maybe there are several factors affecting this [like] the weather, and some are saying it’s also because of the low farmgate price of palay,” he said in Filipino during a press briefing. “For corn growing, there was also a decrease of 456,000. In hog farming, there was a decrease of 133,000, again because some provinces were affected by the ASF (African Swine Fever).”

“We are seeing that there are subsectors that are significantly affected by the weather. In the month of July, we were hit by four typhoons, which affected a substantial number of provinces and had an impact on our labor market,” Mr. Mapa added.

In a separate statement, the Department of Economy, Planning, and Development (DEPDev) urged stronger efforts to boost climate resilience and workforce agility.

DEPDev Secretary Arsenio M. Balisacan called for modernized agricultural practices, climate-smart strategies, rural infrastructure, and digital connectivity to help cushion the impact of extreme weather events on jobs.

“The latest employment figures underscore the urgency of modernizing our economic sectors to withstand disruptions, whether from climate change or technological shifts. We are also fully committed to enhancing employability, expanding labor market programs, and collaborating with key stakeholders to future-proof the Filipino workforce,” Mr. Balisacan said.

University of the Philippines School of Labor and Industrial Relations Assistant Professor Benjamin B. Velasco said job losses in the agriculture sector due to climate hazards could continue in the coming months.

“Definitely, the job hemorrhage in agriculture was a climate change effect, which unfortunately will not be a one-off phenomenon, but [will] even worsen until the end of [the] rainy season, which now extends to November,” he said via Facebook Messenger.

“The long-run trend is for agriculture employment to decrease and waged jobs in rural areas to increase due to [the] impact of trade liberalization as well as commercialization and industrialization, though limited and erratic,” he added.

Meanwhile, the wholesale and retail trade, repair of motor vehicles and motorcycles sector shed 897,000 workers in July from the same month last year, while fishing and aquaculture lost 173,000.

Mr. Mapa said agricultural workers who lost jobs due to bad weather transferred to the construction industry.

Despite the increase in the jobless rate in July, he expressed optimism that employment will increase as the holiday season approaches, as seen in historical trends.

Mr. Laguesma likewise said, “the coming holiday season will result in [a] higher employment rate.”

Underemployment rate up

Meanwhile, PSA data also showed that the underemployment rate rose to 14.8% in July from 12.1% in the same month a year ago and 11.4% in June.

The ranks of underemployed Filipinos — those who want longer work hours or an additional job — reached 6.8 million in July, higher than the 5.77 million a year ago.

For the first seven months, the average underemployment rate stood at 12.9%, higher than 12.2% in the same period last year.

The labor force participation rate also fell to 60.7% in July from 63.5% a year prior. Mr. Mapa likewise attributed this to the bad weather during the month, identifying the agriculture, construction and manufacturing sectors as the areas with the largest drops.

Some 94.7% or 46.05 million Filipinos had jobs in July, lower than the 95.3% or 47.68 million recorded a year prior.

For the seven months ended July, the employment rate stood averaged 95.9%, lower than 96% last year.

Meanwhile, by worker classification, wage and salary earners made up the majority of employed persons at 68.7% in July. They were followed by the self-employed without paid employees at 24.7%, unpaid family workers at 3.9%, and employers in their own family-run farms or businesses at 2.6%.

Within the group of wage and salary workers, those in private establishments continued to represent the largest share at 78.5%, equivalent to 53.9% of the total employed population. Those working in government or government-controlled corporations accounted for 14.4% of wage and salary workers, or 9.9% of the overall employed persons.

By region, the Cordillera Administrative Region posted the highest employment rate in July at 96.6%, while the Bicol Region (Region V) recorded the lowest at 92.3%.

Eight regions registered unemployment rates above the national average of 5.3%, led by the Bicol Region at 7.7%, followed by Region IV-A (Calabarzon) with 6.6% and Region VII (Central Visayas) with 6.1%.

Labor groups said the rise in unemployment highlights the need for a legislated wage hike to strengthen the purchasing power of workers.

“The spike in unemployment is alarming, and the rise in underemployment tells us that even those who have jobs are not earning enough to live decently,” Federation of Free Workers President Jose Sonny G. Matula told BusinessWorld via Viber.

He said the latest figures mirror the worsening jobs and wages crisis in the country, aggravated by inflation, the persistence of precarious work, and the lack of sustainable and quality employment opportunities.

The Sentro ng Mga Nagkakaisa at Progresibong Manggagawa said in a separate statement that the data show that the government’s job creation efforts are lacking.

“The truth is out: millions of Filipinos remain stuck in insecure, low-quality, and low-paying work,” it said.

“While other countries are advancing in manufacturing, industry, and innovation, the Philippines is trapped in informality and precarity — a failure in part of our administration… Every month these employment figures stay the same means another month when millions of Filipinos are condemned to poverty and indignity.” — Chloe Mari A. Hufana, Reporter

Net inflows of foreign direct investments (FDI) sank to a six-month low in June, with the first-half tally also posting a double-digit drop, as global trade risks continued to weigh on market sentiment, resulting in a net outflow of equity capital.

FDI net inflows decreased by 17.8% to USD 376 million in June from USD 457 million in the same month last year, preliminary data from the Bangko Sentral ng Pilipinas (BSP) released on Wednesday showed.

This was the lowest net inflow in six months or since the USD 356 million recorded in December.

Month on month, FDIs plunged by 37.1% from the USD 598-million inflow in May.

“Net foreign direct investments into the Philippines remained positive in June, with inflows from Japan and into manufacturing taking the lead,” the BSP said.

“The slowdown in FDI net inflows during the month reflected the shift in nonresidents’ net investments in equity capital (other than reinvestment of earnings), from USD 85 million inflows to USD 57-million outflows,” it said.

June marked the first time that the country saw a net outflow in equity capital excluding reinvestments in one-and-a-half years or since the USD 11-million outflow in January 2024.

This came as equity placements rose by 31.3% year on year to USD 130 million in the month from USD 99 million, while withdrawals ballooned to USD 187 million from USD 15 million.

Equity capital placements in June mostly came from Japan (62%), the United States (16%), and South Korea (9%). Most of these flowed into the manufacturing sector (64%), followed by real estate activities (14%), and wholesale and retail trade and repair of motor vehicles and motorcycles (10%).

Meanwhile, reinvestment of earnings jumped by 36.7% to USD 128 million from USD 94 million.

Nonresidents’ net investments in debt instruments also went up by 9.3% to USD 305 million in June from USD 279 million in the same month a year ago.

“June’s FDI slowdown reflects a mix of global and domestic headwinds,” Union Bank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said in a Viber message. “Heightened global uncertainty, trade tensions, and cautious investor sentiment weighed on cross-border investments, while structural challenges at home — such as infrastructure gaps and policy unpredictability — added to the drag.”

“The US tariffs hurt — especially our manufacturing sector — but it’s also about weak global trade and our own policy gaps,” Jonathan L. Ravelas, senior adviser at Reyes Tacandong & Co., said in a Viber message.

In June, global markets were hit by volatility as the sudden escalation of the conflict between Iran and Israel due to an exchange of attacks drove up oil prices. The two countries eventually reached a ceasefire.

Investors were also awaiting the finalization of trade deals between the United States and its trading partners ahead of an initial July deadline, which was eventually extended.

The US is now imposing a 19% import tariff on Philippine goods under the deal secured by the government.

However, US President Donald J. Trump has also threatened to impose additional duties on semiconductors as well as countries with digital taxes, which could affect the country.

First six months

For the first half of the year, net FDI inflows into the Philippines dropped by 23.8% to USD 3.418 billion from USD 4.486 billion.

Investments in equity capital, other than the reinvestment of earnings, plummeted by 74.6% to USD 307 million in the period from USD 1.207 billion a year ago.

Broken down, gross equity placements plunged by 49.3% year on year to USD 746 million, while withdrawals jumped 67.2% to USD 439 million.

Japan accounted for the bulk of the equity investments in the period at 43%, followed by the US (20%), Singapore (12%), and South Korea (8%). Half (50%) went to manufacturing, while 19% went to real estate activities and 10% went to financial and insurance activities.

Meanwhile, foreigners’ reinvestment of earnings climbed by 11.6% to USD 573 million from USD 514 million.

Net investment in debt instruments decreased by 8.2% to USD 2.538 billion in the six-month period from USD 2.765 billion a year ago.

The BSP expects net FDI inflows to reach USD 7.5 billion this year.

Mr. Asuncion said reaching this could be “challenging” as the six-month tally remains low.

“A significant rebound in the second half is needed, supported by stronger project implementation and improved investor confidence. Without these, inflows could fall short of the forecast,” he said.

“We expect FDI inflows to remain subdued in the near term as global risks persist and competition for capital intensifies across the region. Any upside will hinge on accelerated infrastructure rollout and policy clarity to boost investor confidence. While opportunities remain in manufacturing and real estate, downside risks dominate the outlook.”

Mr. Ravelas said the sharp drop in FDIs is a “wake-up call.”

“Investors are watching how we respond. If we don’t fix logistics, clarify rules, and build confidence, this could turn into a trend. But there’s still time to turn things around.” — Katherine K. Chan

The Philippines fell to near bottom in an annual global ranking of countries’ ability to attract and retain a skilled workforce, amid a decline in the quality of life, the Institute for Management Development (IMD) World Competitiveness Center said.

In the IMD’s World Talent Ranking (WTR) 2025, the Philippines slipped a spot to 64^th out of 69 countries. Last year, it ranked 63^rd out of 67 economies.

This was the Philippines’ worst showing in 20 years or since 2005.

The Philippines’ talent competitiveness also continued to lag behind Asia-Pacific neighbors. It ranked 13^th out of 14 Asia-Pacific countries, better only than Mongolia (69^th overall).

Hong Kong (4^th) was the highest-ranking economy in the Asia-Pacific. It was followed by Singapore (7^th), Taiwan (17^th), Australia (19^th), Malaysia (25^th), New Zealand (33^rd), South Korea (37^th), China (38^th), Japan (40^th), Thailand (43^rd), Indonesia (53rd), and India (63^rd).

The global talent index was again dominated by European economies led by Switzerland (1^st overall), Luxembourg (2^nd), and Iceland (3^rd).

The WTR rankings are based on three factors: “appeal,” or the ability of the economy to attract foreign talent and retain local talent; “investment and development,” which refers to the measurement of resources allotted to develop a homegrown workforce; and “readiness,” or the quality of the skills in a country’s talent pool.

The Philippines saw a decline in all factors, dropping two places to 66^th in investment and development. It slipped two spots to 56^th in appeal and fell six places to 58^th in readiness.

“Generally speaking, the Philippines is a net exporter of talent. And it means that it will always find it difficult to retain the homegrown talent in the country,” Arturo Bris, director of the World Competitiveness Center and professor of finance at IMD, said at a hybrid press briefing on Monday.

“At the same time, interestingly, if you look at our indicators, the Philippines ranks 13^th in the availability of skilled labor in the country. So, it seems that executives and leaders in the country do not feel that they don’t find the talent that they would need,” he added.

Low quality life

Mr. Bris noted the country has steadily declined in the rankings over the last few years and lagged in competitiveness mainly due to low quality of life in the Philippines versus its regional peers.

“I think the main driver is a declining quality of life. And again, remember that quality of life encompasses many different factors,” Mr. Bris said.

“The quality of life in the country, especially compared to other neighbors, like Thailand, Singapore, or Indonesia, is lower,” he added.

In particular, he said that the quality of life in the Philippines ranked 60^th out of 69 economies. It ranked 49^th in exposure to pollution, and 31^st in management remuneration.

Philippine Institute for Development Studies Senior Research Fellow John Paolo R. Rivera said that the country’s low ranking in the talent index “reflects chronic underinvestment in education, weak training systems, and poor talent retention.”

“Compared with Asia-Pacific peers like Malaysia or Singapore, we lag behind in both talent readiness and quality of life. To catch up, we must improve public spending on education, build industry-relevant skills, and make our economy more attractive to high-value talent,” he said in a Viber message.

Misiek Piskorski, dean of executive education and professor of digital strategy, analytics, and innovation at IMD, said that much of the Philippines’ success is mainly due to its cheap labor.

While many multinational companies set up back-office operations in the Philippines, this is now under threat due to increasing adoption of artificial intelligence (AI) in the business process outsourcing sector.

“One of the big worries that I have for Manila… is to what extent, again, AI will substitute many of these jobs,” Mr. Piskorski said.

“Will the Philippines be ready with enough workforce and enough skilled workforce to provide the next generation of services? That is my big concern,” he added.

To address these concerns, he said that there is a need for more focused investments.

“To me, the Philippines is always Manila, and the rest of the country is very, very different. And so, we also have to start thinking about what we do in Manila and what we do across other islands that might be far away from Manila and upskill people there to get things going,” he said.

Management Association of the Philippines (MAP) President Alfredo S. Panlilio said the quality of the workforce can be addressed by improving curricula across schools.

“I think an important aspect is how do you fix the curricula of the schools, from public to private, to make it relevant to the demands of the current workforce,” he told reporters on the sidelines of the 23^rd MAP International CEO Conference on Tuesday.

“Because although there are a lot of available positions, the companies cannot hire or don’t hire because they can’t find the talent that they’re looking for. So, it’s really about human capital,” he added.

During his stint with the Private Sector Advisory Council, Mr. Panlilio said he recommended focusing more on science, technology, engineering, and mathematics programs.

“Because AI is technology, we have to have the skill sets for our youth to develop those kinds of skills,” he said, adding that it is still uncertain what jobs will be created in the future,” he said.

He said the MAP taps academics to join committees within the organization, especially when doing research and in understanding data.

“So, we’re trying to bridge that, making sure that there’s a link or alignment between the educational system and what the corporates, and even the public sector, need down the road,” he added. — Justine Irish D. Tabile, Reporter

Manufacturing output fell to a five-month low in July amid uncertainty over US tariff policies and bad weather, analysts said.

Preliminary results of the Philippine Statistics Authority’s (PSA) latest Monthly Integrated Survey of Selected Industries showed that factory output, as measured by the volume of production index (VoPI), shrank by 1.1% year on year in July.

This was a reversal of the 7% growth a year ago and 1.6% expansion in June.

It was also the lowest in five months since the 1.9% decline in February.

On a monthly basis, July’s output picked up by 3.4%, a reversal from the 4.3% decline in June. Stripping out seasonality factors, it inched up by 2.6%.

In the seven months to July, manufacturing output growth averaged 0.4%, significantly slower than the 2.7% a year ago.

The PSA attributed the contraction in July factory output to the slowdown in production of food (16.5% in July from 22.4% in June); computer, electronic, and optical products (5% from 7.3%); and transportation equipment (9.3% from 13%).

Ten other divisions saw a slowdown, while nine posted annual increments.

PSA data showed the three largest contributors to the year-on-year decline in the VoPI were the faster contraction seen in the divisions of basic metals (-25.4% from -24.9%), coke and refined petroleum products (-15.7% from -15.2%), and chemicals and chemical products (-22.2% from -14.9%).

Nicholas Antonio T. Mapa, chief economist at Metropolitan Bank & Trust Co., said in a Viber message the annual contraction in July may be due to weather disturbances that may have slowed factory activity across sectors.

Data from the Philippine Atmospheric, Geophysical Astronomical Services Administration’s (PAGASA) Climate Impact Assessment for July showed that several weather systems caused excessive rainfall that month.

University of Asia and the Pacific economist Cid L. Terosa said the demand for computer products in July was affected by external headwinds.

“The slowdown in computer products reflected the slowdown and fragile conditions faced by the global electronics and computer industry due to US reciprocal tariffs,” Mr. Terosa said in an e-mail.

US President Donald J. Trump’s seesaw tariff policies caused confusion and market instability since April. The US initially slapped a 17% reciprocal tariff on goods from the Philippines, then raised it to 20%, before eventually setting a 19% tariff rate that was implemented in August.

Sergio R. Ortiz-Luis, Jr., president of Philippine Exporters Confederation, Inc., said the flip-flopping US trade policy dampened overall demand for computer and electronic products.

Separate data from the PSA showed electronic products had the highest share of exported goods by value in July, accounting for 53.5% or USD 3.92 billion of the USD 7.34-billion total.

“Weaker demand in major global economies also contributed to the slowdown in electronics and computer production,” Mr. Terosa said.

July’s capacity utilization averaged 77.1%, higher than the 76.6% logged in June and 75.8% a year earlier.

All industry divisions reported capacity utilization rates of more than 60% during the month.

The top three industry divisions with the highest capacity utilization rates were tobacco products (85.1%), other manufacturing and repair and installation of machinery and equipment (83.4%), and leather and related products, including footwear (83%).

For the rest of the year, Mr. Terosa said manufacturing production may get a lift from “improving market conditions, reinvigorated domestic demand, a low inflation environment, and positive business sentiment.”

However, the implementation of higher US tariffs, which began in August, will likely hurt demand for Philippine exports.

Mr. Ortiz-Luis said output may remain sluggish due to weak export demand. “Lower exports mean lower production,” he added.

“Tariff projections may impact demand for Philippine exports and eventually volume of production but so far exports have managed to grow. We expect moderate expansion across sectors possibly on better weather and as the Philippines seeks to find other markets outside the US for exports,” Mr. Mapa said.

Mr. Terosa said the impact of US tariffs on the electronics and semiconductor sectors should be monitored.

“US reciprocal tariffs, however, can disrupt the groundwork for gradual and sustainable recovery in the manufacturing sector… Overall, however, I think the impact of US reciprocal tariffs on manufacturing will be subdued,” he said. — Matthew Miguel L. Castillo, Researcher