As the country observes the Ease of Doing Business (EODB) Month this May 2026, the Department of Labor and Employment (DOLE) and the Institute for Labor Studies (ILS) highlighted the importance of maintaining a balanced labor policy that welcomes foreign talent while safeguarding opportunities for Filipino workers.

A 2025 ILS study titled “Determining the Economic Needs Criteria: Risk, Impact, and Options” examined the implementation of DOLE Department Order 248 series of 2025, which introduced the Economic Needs Test as an additional requirement in the employment of foreign nationals alongside the Labor Market Test (LMT).

The study noted that while the updated framework strengthens safeguards by ensuring that foreign workers bring added technical or economic value and support skills transfer, its implementation should remain clear, predictable, and efficient to avoid unnecessary administrative burden on employers.

It further emphasized the need for streamlined data-driven assessment supported by an updated labor market information to help government identify which jobs or sectors can be adequately filled by Filipino workers or a foreign talent.

To support more effective implementation, the study called for stronger inter-agency coordination and the development of clear and consistent guidelines for the Economic Needs Test.

DOLE and ILS underscored that a balanced approached on attracting foreign expertise while protecting Filipino workers supports innovation, competitiveness and inclusive growth.

Read the full research paper at https://ils.dole.gov.ph/2025-research-papers/determining-the-economic-needs-criteria-risk-impact-and-options.

For more information, visit the official ILS website at https://ils.dole.gov.ph.

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