A renowned business group in the Philippines is urging the national government to step up its efforts in safeguarding local and overseas jobs from the twin threats of US trade and immigration policies and the accelerating adoption of artificial intelligence.

In a pointed call to action, the Makati Business Club (MBC) stressed the need to shield the country’s workforce, particularly those in export-driven sectors and overseas Filipino workers (OFWs), from potential upheavals that could leave many workers out in the cold.

Tariffs and immigration reforms raise job security concerns

The warning comes on the heels of recent US policy shifts that could cause ripple effects across the Philippine economy. Chief among them is a 17% tariff now being imposed on Philippine exports, second only to Singapore’s 10% among Southeast Asian nations. The MBC said this is likely to hit skilled workers employed in export-heavy industries, such as electronics manufacturing, a key pillar of the country’s trade with the US.

Meanwhile, the broader context of US protectionism underpins the MBC’s concerns. Washington has ramped up tariffs on multiple trade partners and tightened its borders through executive orders aimed at curbing illegal immigration and overhauling visa screening. These developments raise red flags for the nearly 4 million Filipinos living and working in the US, many of whom send vital remittances back home.

“Other recent policies of the US government may also impact the jobs of overseas Filipino workers (OFWs); hence, the government must also look into ensuring that skills training and jobs may be provided for them during these uncertain times,” the MBC stated, as reported by Business World.

AI adoption casts a long shadow over the labour market

Beyond external pressures, the domestic labour market is also contending with the rapid rise of AI. Drawing on findings from the International Monetary Fund, the MBC noted Philippine jobs are at risk of full automation. Half of all roles are likely to be reshaped by AI, requiring new skills and ways of working.

This emerging threat adds another layer of complexity for HR leaders and policymakers alike. While AI promises gains in productivity and innovation, it also risks displacing workers whose skills may no longer align with the needs of a digital-first economy.

Skills gap continues as a widening chasm

Compounding the risk is the sobering reality that a significant portion of the workforce is not equipped to pivot into emerging roles. A 2024 study by the Philippine Institute of Development Studies found that 29% of workers lack the competencies demanded by in-demand occupations – a figure that underscores the urgency of systemic skilling interventions.

With both foreign and technological forces shaking the foundations of the labour market, the MBC pointed to the importance of timely and targeted government action. “The government needs to continue its efforts in ensuring that no Filipino worker gets left behind in the increasing growth of AI adaptation,” it said.

Policy momentum builds – but more is needed

The MBC acknowledged that some groundwork has already been laid. The recent enactment of the Enterprise-Based Education and Training Framework Act is seen as a step in the right direction, with its emphasis on practical, industry-aligned training. However, the business group believes this should be the beginning rather than the end of government response.

To sustain momentum and futureproof the workforce, the MBC has thrown its support behind the passage of the Lifelong Learning Development Framework Act. This proposed legislation aims to embed continuous learning into the fabric of the country’s talent development agenda, ensuring that workers can reskill and upskill throughout their careers.

“We believe this reform will contribute to creating a more skilled and competitive Filipino workforce,” the MBC said.

A fork in the road for workforce strategy

Taken together, the developments paint a picture of a labour market standing at a crossroads. The convergence of protectionist trade policies, restrictive immigration reforms, and disruptive AI technologies has created a perfect storm of uncertainty. For Filipino workers, it’s a race against time.

Resilience in the face of disruption will require more than lip service. It calls for a recalibration of talent strategies, deeper collaboration between public and private sectors, and a long-term commitment to inclusive workforce development.

Leaving the workforce unprepared would be like sending soldiers into battle with no armour. The future of work may be automated, globalised, and digitised – but it must also be human-centred, inclusive, and resilient.