Drilon said the population and labor force growth rates "indicate growing pressures on the economy to increase its capacity for employment creation."
Drilon suggested a number of policies to generate employment and assist workers to earn more. These include public works and infrastructure development, wage subsidies, training and re-training interventions, granting of entrepreneurship loans, and the provision of employment services infrastructure.
The People Power Champions lead senatorial candidate also cited new laws that are aimed at helping the labor sector, such as the Peso act that provides a special program for employment of students and out-of-school youths.
As the demand for service oriented employment grows, Drilon said there is a need to refocus on policies in the area of human resources development.
"With employment being generated fastest in the service sector, constant industry and declining agriculture, the states HRD interventions such as those provided by TESDA and NMYC, which are currently geared towards industry, should now be balanced in a manner that will support the skills of all sectors," said the former labor secretary.
"The refocusing of the governments HRD interventions should also include programs to transform our present workforce, dominated by low educated workers, into more productive contributors to the economy," Drilon added.
Rural to urban migration is another issue that must be urgently addressed, he said. Increasing urbanization and its attendant social problems such as housing, urban congestion and peace and order, could exacerbate urban unemployment.
Drilon urged the government to focus on developing the countryside. "The new government therefore must endeavor to reinforce its rural public works and infrastructure development programs to invite more countryside investments."