Lack of jobs is emerging as the biggest concern Philippine business leaders, According to World Echonomic Forum (WEF), a signal There is a risk that economic growth will be lower than needed to absorb workers over the next two years.
Philippine officials ranked weak public services and social protection as their second concern in WEF's 2026 Global Risks Report, with respondents pointing to deficiencies in education, infrastructure and pension systems.
Business leaders identified the spread of misinformation and disinformation, unintended effects of artificial intelligence and inflation as major threats to the economy.
Leonardo A., Professor of Economics at the Ateneo de Manila University. Lanzona said Philippine officials' concerns about jobs reflect the recent economic downturn.
“As the economy moves into recession as a result of reduced government spending, aggregate demand decreases,” he said in a messenger chat.
Mr. Lanzona said the lack of additional opportunities is also causing many businesses, especially micro, small and medium enterprises, to fail.
“As a result, this economic downturn brings significant unemployment,” he said.
In the first 11 months of 2025, the unemployment rate averaged 4.19% or equivalent to 2.25 million unemployed Filipinos. This is higher than the 3.9% unemployment rate, which equates to 1.66 million over the same period in 2024.
“As much of the budget sinks into debt, the situation is made worse by fewer social protections, political infighting and labor-saving technologies like AI (artificial intelligence), which could further reduce labor demand,” Mr. Lanzona said.
Meanwhile, WEF report shows the biggest risks globally over the next two years Geo-economic conflict continued.
WEF's Global Risk Perception Survey drew insights from more than 1,300 experts around the world.
Other top risks cited by global business leaders include misinformation and disinformation, social polarization, extreme weather events and state-based armed conflict.
“Geo-economic conflicts have emerged as the most serious risk over the next two years, while economic risks have experienced the fastest growth among all risk categories over the two-year time frame,” said Saadia Zahidi, WEF Managing Director.
He said rising inflation and potential asset overhang concerns have increased as countries face higher debt burdens and volatile markets amid growing concerns over an economic slowdown.
The WEF noted that 18% of participants surveyed identified geo-economic conflict as the top risk causing a physical global crisis in 2026.
This was followed by state-based armed conflict (14%), extreme weather events (8%), social polarization (7%), misinformation and disinformation (7%), and economic recession (5%).
Meanwhile, over the next 10 years, survey participants expect extreme weather events to become even more severe. — Aubrey Rose A. innocente