JOBS OUTCOMES STORY POLICIES FOR THE CHALLENGE PROSPERITY While the Philippines has been one of the most dynamic economies in the EAP region, with GNI per Supporting Jobs Growth capita more than tripling, and poverty declining sharply from 33.5 percent in 2000 to 18.1 percent and Climate Resilience in in 2021, it still faces a complex range of structural Philippines challenges. These include limited market compe- tition in several key sectors; underinvestment in infrastructure; regulatory restrictions that impede AT A GLANCE foreign direct investment; and low growth in the REGION/COUNTRY East Asia and Pacific | agriculture sector, heightened by vulnerability to Philippines natural disasters and institutional weaknesses. Three World Bank Group engagements – a jobs re- PROGRAM/PROJECT Philippine Jobs Report; port, a development policy loan (DPL), and a rural Philippines Second Sustainable Recovery De- development project – highlight the importance of velopment Policy Operation; Philippine Rural transformational economic reforms to promote Development Project (PRDP) employment in middle-income countries. FUNDING PDRP IBRD loan $833.21 million; Trust Funds 27.14 million RESULTS Philippines Second Sustainable Recovery DPO will result in the cre- ation of an estimated 314,000 more or better-paid jobs through 2025 Estimated to boost GDP growth by 0.8% over 3 years Philippine Rural Development Project creates 11,510 infrastructure jobs in three years Over 136,000 people benefit from new or better jobs in agriculture or fisheries 46 percent increase in the income of beneficiaries involved in enterprise development 1.3 million farmers with agricultural assets or services, of whom 39 percent were women WBG APPROACH Launched in February 2025, the new Philippines Growth and Jobs Report identifies essential reforms to boost growth, job creation, and labor productivity and wage increases. These reforms could create an estimated 1.6 million jobs by 2035, increase real wages by 9 percent, and boost GDP growth by 1.5 percent annually over a decade. The report aims to inform policy discussions and reform efforts, offering robust analytics and detailed policy recommendations that can inform Development Policy Operations (DPOs) By encouraging private investment in infrastructure services, the Philippines Second Sustainable Recovery DPO will result in the creation of an estimated 314,000 more or better-paid jobs through 2025, and will boost GDP growth by 0.8 percent over 3 years. Other policy actions under the DPO include the mobilization of sustainable finance, establishing incentives framework for private-public partnerships, and support for green job creation. Launched in 2014 and scaled up in 2023 the Philippine Rural Development Project (PRDP) aims to establish a modern, value-chain oriented, and climate-resilient agriculture and fisheries sector. Its rural infrastructure and market linkage component generated a total of 11,510 jobs within three years, including over 4000 jobs for skilled workers. By mid-2024, 2110 km of roads had been built of the 2552 funded under the program. Over 136,000 people benefitted directly through new or better jobs in sustainable enterprises in agriculture or fish- eries. The project also improved the technical capacity of 81 Provincial Local Government Units (PLGUs) to plan and manage subprojects in the agriculture sector. It achieved a 26 percent increase in real household income of beneficiaries, a 46 percent increase in the income of beneficiaries involved in enterprise development, and a 118 percent increase in the value of annual output. It reached over 1.3 million farmers with agricultural assets or services; 39 percent of these beneficiaries were women farmers. LESSONS LEARNED The Philippine Rural Development Project has yielded several valuable lessons. Notably, more in-depth data collection and analysis are needed in establishing and applying appropriate measures for productivity, and this data needs to be disaggregated to refine the types of interventions most beneficial to different target groups. It’s also important to determine the extent to which the project has mobilized private sector financing, and what aspects in particular attracted those investment. NEXT STEPS The World Bank Group’s new Country Partnership Framework for the Philippines, for 2025–28, includes support for inclusive growth and jobs; the transition to a greener, climate-resilient economy; and accelerated digital transformation. At the sectoral level, the $600 million PRDP Scale-Up will expand on the implementation of the project, stimulating further growth in the agriculture and fisheries sectors, and strengthening the rural economy of the Philippines. The new road has made our travel and transport of produce faster and safer. Before, we used to ride a boat just to go to the town center, making us vulner- able to pirates. We spend half an hour on the fishing boat, but with the new road, we reach town in just 15 minutes. — Percineflesa Perez: Seaweed farmer in Barangay Talusan, Zamboanga Sibugay, a beneficiary of the upgrading of a farm-to-market road funded by PRDP