MANILA (January 18) — Unemployment has emerged as the biggest risk facing the Philippines over the next two years, with potential spillovers on social stability, household welfare and public services, according to the World Economic Forum (WEF).
In its Global Risks Report 2026, the WEF said the lack of economic opportunity or unemployment was cited as the top short-term risk for the country, reflecting concerns that job insecurity could widen inequality, depress consumer spending and intensify social tensions, especially among low-income and informal-sector workers.
Latest data from the Philippine Statistics Authority (PSA) showed the unemployment rate stood at 4.4 percent in November 2025, lower than the previous month’s five percent but higher than the 3.2 percent recorded a year earlier. In absolute terms, about 2.25 million Filipinos were unemployed, highlighting the human cost behind the improving headline figures.
Economists warn that sustained joblessness can translate into delayed education and healthcare spending, rising household debt and greater vulnerability to economic shocks — pressures that may ultimately strain communities and local governments.
The WEF ranked insufficient public services and social protection — including education, infrastructure and pensions — as the second biggest risk for the Philippines, raising concerns that weak safety nets could amplify the social impact of unemployment during periods of economic slowdown.
Other major risks identified for the country include misinformation and disinformation, adverse outcomes of artificial intelligence (AI) technologies and inflation.
Globally, geoeconomic confrontation was identified as the top risk for 2026, followed by state-based armed conflict and extreme weather events, which the WEF said could disrupt supply chains and undermine global economic stability.
WEF Managing Director Saadia Zahidi said the convergence of economic, technological and geopolitical risks underscores the importance of cooperation.
“The future is not a single, fixed path but a range of possible trajectories, each dependent on the decisions we make today as a global community,” Zahidi said, noting that job insecurity and social fragmentation remain among the most immediate challenges facing countries worldwide.
