Manila: The country's robust labor market signals stronger domestic demand ahead and will help shield the Philippines from global uncertainties, Finance Secretary Ralph Recto said on Tuesday.

According to Philippines News Agency, Recto made the statement following the release of the results of the Latest Labor Force survey which showed a decline in unemployment and underemployment rate in February this year. The unemployment rate improved to 3.8 percent from 4.3 percent in January 2025, while the underemployment rate likewise declined to 10.1 percent from 13.3 percent in January 2025 as more workers were engaged in full-time employment and middle- and high-skilled occupations.

Recto expressed optimism about this development, noting that a strong and growing workforce means rising incomes, greater spending power, and sustained job creation. He emphasized that this growth fuels consumer demand and propels the economy forward. In light of brewing trade wars and other uncertainties, Recto stressed the importance of boosting domestic demand, describing a strong and resilient domestic market as the best defense.

To further improve the labor market situation, Recto outlined the government's strategic interventions aimed at securing job-generating investments, fostering an innovative business environment, and diversifying economic growth drivers. This includes the accelerated implementation of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act, which aims to attract foreign investors responding to shifting global trade policies.

Recto highlighted that these measures are intended to generate more quality jobs for Filipinos. He also mentioned plans to strengthen partnerships with the private sector to ensure training programs are aligned with industry needs, thereby boosting workers' skills and productivity through the Enterprise-Based Education and Training (EBET) Framework.