Behind every thriving industry and growing economy is a network of resilient, driven SMEs. In the Philippines, SMEs are the backbone of our economy, making up 99.63% of all enterprises and employing 66.97% of the country’s workforce.
More than just generating revenue, they create jobs, sustain industries, and ensure that economic success is shared across regions.
But as employment trends shift, how can SMEs like you stay ahead, adapt, and continue to thrive?
What’s changing in the job market?
The Philippine labor market is evolving. The unemployment rate dropped from 4.5% in January 2024 to 3.9% in October 2024, showing economic recovery. However, by January 2025, it climbed back to 4.3%, highlighting market fluctuations. Meanwhile, the labor force participation rate increased from 61.1% to 63.9%, meaning more Filipinos are entering or returning to the workforce.
Industries with job growth:
- Agriculture & Forestry: They will experience expansion in sustainable farming and agri-tech
- Wholesale & Retail Trade: It will be the e-commerce and brick-and-mortar stores driving demand.
- Accommodation & Food Services: Our tourism recovery will fuel hospitality and dining.
- Transportation & Storage: Businesses involved in logistics and mobility solutions are thriving.
- Admin & Support Services: Outsourcing and back-office roles are consistently growing.
Industries facing job losses:
- Manufacturing: Automation and supply chain issues slowing production
- Professional & Technical Services: The demand will be shifting toward AI-driven efficiency.
- Arts & Entertainment: There will be reduced discretionary spending impacting creative fields.
- Information & Communication: Tech consolidations will affect employment.
Where are the opportunities?
While some industries contract, others are accelerating, creating new opportunities for SMEs ready to pivot and invest.
- Agri-Tech & Farm Equipment Suppliers: Rising employment in agriculture boosts demand for irrigation, mechanization, and productivity-enhancing solutions
- Agro-Processing: Converting raw agricultural products into packaged goods, biofuels, and food exports is a booming sector
- E-Commerce & Retail: Online and physical stores benefit from increased wholesale and trade activity
- Logistics & Transport: A growing retail and e-commerce sector requires more supply chain solutions
- Tourism & Hospitality: The rise in accommodation jobs supports related industries like travel, experiences, and dining
- Business Process Outsourcing (BPO): Administrative, HR, and customer service outsourcing continues to expand
- Tech Solutions & AI: Companies that offer software and automation for SMEs will see growing demand
- Real Estate & Warehousing: Commercial space demand rises as businesses expand operations
What this means for SMEs like you
With more Filipinos re-entering the workforce, businesses like yours now have:
- Access to a wider talent pool: Skilled professionals are looking for opportunities in both established and emerging industries
- A chance to expand into high-growth sectors: Agribusiness, e-commerce, logistics, and AI-driven solutions are prime areas for SMEs to invest in
- Government-backed incentives: The Philippine Development Plan (2023-2028) supports MSME growth through funding programs and tax incentives.
For businesses that stay agile and seize opportunities, this is an ideal time to expand and capitalize on industry shifts.
How SMEs can stay resilient
The businesses that survive aren’t always the biggest—they’re the ones that adapt the fastest. Here’s how SMEs can navigate change and secure long-term success:
- Invest in Workforce Development: Employee training boosts productivity, efficiency, and innovation
- Adopt AI & Automation: Digital tools can cut costs, improve customer engagement, and streamline operations
- Expand Into New Markets: Target underserved industries with rising demand and explore regional expansion
- Build Strategic Partnerships: Collaborate with suppliers, service providers, and financial institutions to create long-term stability
- Secure the Right Financial Support: Access to capital ensures businesses can seize opportunities, expand, and adapt
The snapshot: growth is a ripple effect
Some industries may shrink, but others are expanding. The key is recognizing how growth in one sector fuels demand in another.
SMEs that embrace change, pivot toward emerging opportunities, and invest in innovation will lead the way. But making bold moves requires more than just vision—it requires capital.
At Mount Fuji Lending, we understand that SMEs aren’t just businesses—they are the heartbeat of the economy. We are committed to helping businesses access the funding they need to innovate, expand, and grow.
Let’s talk about your next move.
Contact us today to learn how we can support your business.
