Cheyenne Suarez

ILO warns PH job market under strain amid AI disruption, war, falling overseas employment

Filipino IT-BPM workers. Photo courtesy of  IT and Business Process Association of the Philippines/Handout

Article (news)

<div> </div>MANILA — The Philippines is now facing a rare triple pressure point on jobs — global conflict, slowing overseas employment, and the rapid rise of artificial intelligence — forcing labor experts to warn that traditional safety nets may no longer be enough.The International Labour Organization is calling for a more aggressive and highly targeted “job protection system” for workers most exposed to shocks, especially informal laborers, transport workers, small businesses, and overseas Filipino workers affected by instability in key regions like the Middle East.In an interview on ANC’s Business Outlook, ILO labor economist Christian Viegelahn said governments can no longer rely on broad, slow-moving interventions when shocks are becoming faster and more interconnected.“We do need to recognize that there are some fiscal constraints there… but it is absolutely crucial that those that are most affected really receive support first,” Viegelahn said. At the core of the ILO’s recommendation is a shift away from generalized aid toward precision support systems for workers, built around four pillars: faster job matching, skills upgrading, income protection, and direct enterprise support for vulnerable businesses.<div>JOB MATCHING BEFORE JOB LOSS DEEPENS</div>The ILO is pushing for stronger public employment services that can rapidly match displaced workers with available jobs — especially returning overseas Filipino workers who may be forced home by geopolitical risks or labor disruptions abroad.It also stressed the need for faster reintegration systems, including real-time labor market information and placement support.As AI adoption accelerates across industries, Viegelahn warned that job displacement will not be limited to overseas workers.He said governments must expand skills recognition and retraining programs, particularly in digital skills and emerging technologies, to help workers shift across industries instead of falling out of the labor market entirely.The ILO also called for stronger income protection systems for workers in informal sectors — those least likely to have stable contracts or unemployment insurance.This includes targeted cash support for displaced workers and expanded social protection coverage for low-income households hit by inflation and global shocks.<div><iframe width="640" height="360" src="https://www.youtube.com/embed/hW0QJNWQ1Pk?&amp;wmode=opaque&amp;rel=0" frameBorder="0" allowfullscreen="" class="fr-draggable"></iframe> </div><div>SMALL BUSINESSES UNDER PRESSURE</div>Small enterprises, particularly those in transport, services, and micro-retail, were flagged as highly exposed to demand shocks and rising costs.The ILO said governments must design emergency support measures that keep these businesses afloat, as they remain a major source of employment in the Philippines.Viegelahn emphasized that timing is critical — because labor shocks often build quietly before becoming visible crises.“The earlier support reaches those workers and enterprises that are in need, the better the chances that this… does not become a longer-term labor market setback,” he said. The warning comes as the Philippines contends with multiple economic vulnerabilities at once: potential disruptions in Middle East labor deployment, inflationary pressure, and the increasing impact of automation on services and manufacturing jobs.Despite these risks, the ILO cautioned against fragmented or reactive policy responses, saying coordination between government, employers, and workers — known as social dialogue — will be essential to designing effective solutions.The Philippines already has reintegration programs for returning overseas workers, but the ILO said scaling them quickly will be key if global conditions worsen.Ultimately, Viegelahn said the long-term goal should be structural: reducing dependence on overseas labor by strengthening domestic job creation.“It is very important that the domestic labor market in the Philippines is thriving… so that labor migration is not a matter of necessity, but a matter of choice,” he said.

The Philippines is now facing a rare triple pressure point on jobs — global conflict, slowing overseas employment, and the rapid rise of artificial intelligence — forcing labor experts to warn that traditional safety nets may no longer be enough.

The Philippines is now facing a rare triple pressure point on jobs — global conflict, slowing overseas employment, and the rapid rise of artificial intelligence — forcing labor experts to warn that traditional safety nets may no longer be enough.

ILO warns PH job market under strain amid AI disruption, war, falling overseas employment

News

Entertainment

Lifestyle

Sports

Metro.Style

More

Sudoku

Word of the Day

Lotto

Horoscope

Business

ILO warns PH job market under strain amid AI disruption, war, falling overseas employment

Raine Musñgi,

ABS-CBN News Channel

Published May 28, 2026 02:01 PM PHT

Read More:

ILO

International Labor Organization

job market

ABS-CBN is the leading media and entertainment company in the Philippines, offering quality content across TV, radio, digital, and film. Committed to public service and promoting Filipino values, ABS-CBN continues to inspire and connect audiences worldwide.

Corporate

Investors

Governance

International Distribution

Corporate

Governance

Investors

International Distribution

NPC Seal of Registration

Privacy Policy

AI Policy

Terms of Service

Advertise with Us

© 2026 ABS-CBN Corporation. All Rights Reserved.

NPC Seal of Registration

Privacy Policy

Terms of Service

AI Policy

Advertise with Us

© 2026 ABS-CBN Corporation. All Rights Reserved.

NPC Seal of Registration

Privacy Policy

Terms of Service

AI Policy

Advertise with Us

© 2026 ABS-CBN Corporation. All Rights Reserved.