Escudero seeks urgent support for MSMEs amid rising unemployment

Senator Francis "Chiz" Escudero called for the urgent support for micro, small, and medium enterprises (MSMEs), widely regarded as the backbone of the country’s economy, amid the surge to 2.96 million unemployed Filipinos in January 2026. MSMEs employ about two‑thirds of the nation's workforce.

Citing the latest Labor Force Survey by the Philippine Statistics Authority (PSA), Escudero said the figures reflect both seasonal job losses and long-standing structural weaknesses that require immediate legislative attention.

Escudero urged the Senate to expedite deliberation on two complementary measures he authored: Senate Bill No. 231, which simplifies tax requirements and reduces compliance costs for MSMEs; and Senate Bill No. 233, which reinstates mandatory credit allocation for small enterprises by requiring banks and lending institutions to dedicate a portion of their loan portfolios to MSMEs.

Escudero noted that both bills have been pending in their respective committees since August 2025.

“Access to credit remains the lifeblood of our small businesses. Without financing, MSMEs cannot restock, modernize, or hire, and without lower compliance costs, they cannot stay afloat long enough to recover,” he said.

He explained that the two bills form a coordinated strategy for MSME recovery: one reduces operational burdens, while the other ensures capital reaches enterprises that need it most.

“If we want to reverse rising unemployment, we must strengthen the enterprises that employ most of our people. These are practical, fiscally responsible reforms that go straight to the root of the problem,” he said.

Escudero also emphasized that supporting MSMEs is one of the most cost-effective ways to generate employment without massive new government spending. He warned that delays could result in more closures and job losses.

“Every month of delay means more small businesses closing and more Filipinos losing work. If we want more families to find dignified, stable livelihoods, we must empower the backbone of our economy,” he said.

According to the latest PSA report, the unemployment rate rose to 5.8% in January 2026, up from 4.4% in December 2025 and 4.3% in January 2025, meaning 58 out of every 1,000 workers had no job or livelihood. Employment also fell to 47.94 million, from 48.49 million in January 2025 and 49.43 million in December 2025.

The report showed the steepest year-on-year declines in agriculture and forestry (1.42 million jobs), wholesale and retail trade (729,000 jobs), and fishing and aquaculture (140,000 jobs)—all sectors heavily dominated by MSMEs.

“Our MSMEs remain the most exposed to economic shocks and the slowest to recover. They are hurting,” Escudero concluded.