Infrastructure Slash = Job Massacre?
Senator Win Gatchalian has raised alarm over the potential impact of budget cuts on jobs and the economy following the flood control controversy that has rocked the Department of Public Works and Highways (DPWH).
As chair of the Senate Finance Committee, Gatchalian urged the Department of Labor and Employment to conduct an immediate employment risk assessment, warning that drastic reductions in infrastructure spending could trigger widespread job losses and weaken domestic consumption.
He said the committee is determined to protect the integrity of the 2026 national budget after the highly irregular 2025 budget exposed major lapses in project oversight. However, he cautioned that any steep cut in the DPWH’s allocation could stall vital projects and slow economic growth.
Government spending contributes roughly 15 percent to the nation’s annual economic growth, making infrastructure a key driver of employment and investment, Gatchalian noted.
He also urged labor officials to factor in external pressures, including the United States’ recent 19 percent tariff on Philippine goods and regional geopolitical tensions that could further strain the economy.
“The question now is, with these cuts, do we risk putting more Filipinos out of work?” Gatchalian said.
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