Middle East Tensions Spark Economic Concerns, PSAC Calls for Job Protection Measures
Escalating tensions in the Middle East are projected to drive up fuel costs, disrupt global supply chains, and jeopardize employment opportunities, prompting the Private Sector Advisory Council (PSAC) to advocate for coordinated government interventions to safeguard jobs and maintain economic stability.
Government and Private Sector Align on Mitigation Strategies
During the 4th Meeting of the PSAC Education and Jobs Sector Group held at Malacañang on April 8, 2026, business leaders and policymakers convened to outline proactive measures aimed at shielding Filipino workers and enterprises from the adverse effects of geopolitical volatility. In a statement, President Ferdinand Marcos Jr. highlighted the strong alignment between the government and the private sector, emphasizing that both entities are "on the same page" in pursuing immediate and long-term solutions to mitigate these impacts.
PSAC Proposals Focus on Job Preservation and Workforce Transformation
The council's recommendations center on rapid job matching, workforce redeployment, and accelerated project implementation to absorb displaced workers. Key proposals include:
- Expanding nationwide job fairs to connect job seekers with opportunities more efficiently.
- Expediting hiring processes across both public and private sectors to reduce unemployment.
- Immediately rolling out infrastructure and school construction projects to create new employment avenues.
For overseas Filipino workers (OFWs) potentially affected by the crisis, PSAC suggested streamlined redeployment procedures, micro-credential training in critical industries, and enhanced support for entrepreneurship and micro, small, and medium enterprises (MSMEs). Sabin Aboitiz, PSAC lead convener, stated, "Our focus is twofold: immediate job preservation and long-term workforce transformation," underscoring that investments in skills development, job matching, and enterprise assistance will help Filipinos remain competitive amid global challenges.
Addressing Cost Pressures and Mobility Issues
With mounting cost pressures driven by rising fuel prices, PSAC proposed targeted subsidies delivered through digital platforms and the potential extension of tax incentives for export-oriented firms. To ensure continued mobility, the council recommended financial aid for public utility vehicle operators and accelerated deployment of digital infrastructure to facilitate remote work opportunities.
AIUDA Initiative: A Rapid Re-skilling Program for Digital Jobs
A cornerstone of the strategy is the "AIUDA" (AI Upskilling para sa Digital Asenso) initiative, a rapid re-skilling program designed to transition workers into digital and remote roles within weeks. This program outlines clear pathways from basic AI-assisted tasks to higher-value positions such as:
- Data annotation and management.
- Virtual assistance and customer support.
- Data analytics and interpretation.
- Online entrepreneurship and e-commerce ventures.
PSAC emphasized that its recommendations embody a whole-of-nation approach, integrating public policy, private sector innovation, and digital transformation to address immediate disruptions while bolstering long-term workforce resilience. This collaborative effort aims to navigate the economic uncertainties posed by Middle East tensions effectively.
