On Labor Day, the Makati Business Club (MBC) sounded the alarm on mounting pressures confronting both Filipino workers and employers, as surging fuel and food prices continue to erode real wages and squeeze business margins amid a volatile global backdrop.
The group pointed to an ongoing oil shock that is rippling through the economy, lifting energy, transport, and food costs. For companies, the result is a steady compression of margins and more difficult decisions on pricing, investment, and hiring.
For workers, persistent inflation is steadily chipping away at purchasing power. MBC said these parallel strains underscore the need for tighter coordination among government, business, and labor to deliver targeted relief, ensure fair fuel pricing, and strengthen energy security—measures seen as critical to stabilizing both livelihoods and enterprise viability.
At the same time, the rapid advance of artificial intelligence is beginning to reshape industries and redefine the nature of work.
Citing a joint policy brief with the Konrad Adenauer Stiftung, MBC noted that while many Philippine jobs face varying levels of exposure to AI, most can be augmented rather than displaced—provided workers are equipped with the right mix of digital and cognitive skills. This, the group said, heightens the urgency of scaling up reskilling and upskilling programs that are closely aligned with industry demand.
MBC is pushing a dual-track response: immediate support for sectors hardest hit by rising costs—including farmers, fisherfolk, and transport workers—paired with sustained investments in human capital, deeper public-private partnerships, and broader, more inclusive access to emerging technologies.
Underlying all of these priorities, the group stressed, is the need for good governance.
Strengthening transparency, upholding the rule of law, and reinforcing institutional integrity are essential to rebuilding investor confidence, attracting high-value investments, and securing a more inclusive, future-ready Philippine economy.
