Southeast Asia is seeing growing strain on jobs and tourism, as the Philippines reports a sharp rise in unemployment alongside widening regional fallout from the ongoing Middle East conflict, according to Khaleej Times.
The crisis has disrupted labour markets across the region, with thousands of overseas workers returning home and fewer opportunities opening up abroad. At the same time, rising fuel costs and flight prices are discouraging travel, hitting tourism-dependent economies.
The knock-on effects are significant. Repatriated workers are struggling to find local employment, while reduced remittances are weighing on household incomes. Businesses in manufacturing, retail, and logistics are also slowing due to higher costs and supply chain disruptions.
In the Philippines, unemployment climbed to 5.1 per cent from 3.8 per cent a year ago, with underemployment at 11.8 per cent. More than 8,500 overseas Filipino workers have been repatriated from the Middle East since the conflict began. Across Southeast Asia, tourism arrivals have dropped by 48 per cent, with some travel firms reporting booking declines of up to 50 per cent and widespread cancellations. Thailand alone could see 3 million fewer tourists this year.
“I could not handle those emergency alerts. That was why I asked to be repatriated last March. But I still need a job and I could not find one in the Philippines,” Becky, a former domestic worker, Dubai said.
Looking ahead, the outlook remains uncertain. Analysts warn that if tensions continue into the next quarter, tourism losses could deepen further and employment conditions may worsen, making 2026 a challenging year for Southeast Asia’s economic recovery.