Even when the government acts with moral clarity, ordinary Filipinos often end up holding the short end of the stick.
President Ferdinand Marcos Jr. was clearly on the right when he ordered the closure of Philippine Overseas Gaming Operations in 2024 and launched investigations into corruption in massive flood-control projects last year. Both moves were widely praised for their emphasis on transparency, accountability, and ethics. For a government often accused of tolerating expedience, these actions signaled a rare willingness to prioritize principle over short-term economic gain.
Yet the economic reality is less forgiving.
Gross domestic product expanded by a modest 3 percent in the fourth quarter, extending the sluggish pace of the previous quarter, and tempered full-year growth to 4.4 percent. Economic Planning Secretary Arsenio Balisacan had attributed the slowdown to a sharp cutback in government infrastructure spending and a decline in private construction in the wake of the flood-control controversy. Even reforms that look good on paper ripple unpredictably through the economy, hitting sectors and communities far removed from the halls of power.
Job creation is equally disappointing, dimming the holiday cheer. December unemployment rose to 2.26 million, up from 2.25 million in November and 1.63 million in December 2024. Construction alone shed 550,000 jobs, underscoring the vulnerability of workers in industries highly sensitive to policy shifts and investor confidence.
The Philippine Statistics Authority reported just 172,000 new jobs were added by the economy in December, a steep drop from 664,000 in 2024 and 1.29 million in 2023. Clearly, the labor market is struggling to keep pace with a growing workforce.
For many households, these numbers translate into months of uncertainty and tighter budgets. Macro-level virtue does not always translate into micro-level relief.
The real estate market adds another wrinkle. Colliers projects residential condominium vacancy rates in Metro Manila to hover at 25 percent due to oversupply from existing units and new developments initially aimed at POGO demand. The consultancy estimates that unsold ready-for-occupancy units represent nearly eight years of inventory, still problematic albeit down from 13 years in 2025, forcing developers to rethink pricing, marketing, and investment timelines.
The paradox is unavoidable. Policies that are ethically and politically correct can produce painfully visible economic consequences. Citizens face slower growth, lost jobs, and underperforming investments. Doing the right thing can come at a high cost.
Policymakers now face the delicate task of turning ethical victories into tangible economic benefits that shield ordinary Filipinos from the fallout.
