Labor market experiencing fallout from infra scandals

UNRESOLVED governance issues and slow public investments that continue to weaken the economy are now weighing on the labor market, GlobalSource Partners said.

- Katherine K. Chan

In a commentary dated Jan. 13, GlobalSource Country Analysts Diwa C. Guinigundo and Wilhelmina C. Mañalac noted that the ongoing flood control corruption scandal has led to weaker labor force participation and higher unemployment, especially in construction.

“These labor market outcomes are consistent with the broader slowdown in economic growth observed in the third quarter of 2025,” the GlobalSource analysts said. “Growth decelerated primarily due to reduced public construction activity linked to unresolved issues surrounding flood control projects.”