The State of Job Growth 2026: Smarter Planning for HR Teams in the New World of Work

Artificial intelligence, shifting employee expectations, and post-pandemic recovery have transformed how organizations manage talent. HR teams today face tough questions:

• Which jobs are growing and which are shrinking?
• How will salary trends affect retention and hiring?
• What strategies will build a future-ready workforce in the Philippines?

These are exactly the issues we explored in Sprout’s State of Job Growth 2026 report, created in partnership with the University of Asia and the Pacific (UA&P) and shared during our recent webinar with HR experts and business leaders.

The webinar featured industry leaders who presented the key trends and shared expertise and insights on the future of work:

• Gregorio Mabbagu – Program Coordinator for Entrepreneurial Management at the University of Asia and the Pacific
• Atty. Lester Ople – HR Evangelist at Sprout Solutions
• Winston Malapad – Talent Acquisition and HR Director for Process Excellence Reporting and Data Analytics at Foundever

The Philippine labor market is showing signs of maturity. The average monthly salary now sits at ₱40,268, though it ranges from entry-level pay around ₱15,000 to executive-level salaries hitting ₱412,000.

Growth is steady but slower than before: salaries rose by 5.36% over the past three years, with a 5.5% increase forecast for 2026. That’s good news for retention, but it also means HR leaders need to be sharper about how they structure pay.

Certain roles are pulling ahead. Sales and customer-facing jobs, especially in SMEs, are seeing salary boosts, while automation is putting downward pressure on mid-level roles like project managers and finance managers.

What this means for HR: You can’t just copy-paste last year’s pay scales. This is the moment to review your compensation framework and ensure it reflects both market realities and employee expectations.

Planned leave tells us a lot about employee engagement. In 2024, we saw leave days drop, partly because more employees are back onsite and working in customer-facing roles. Interestingly, higher-paid employees are taking less leave overall: for every additional ₱1,000 earned, workers took about five fewer leave days.

But the story isn’t all positive. Educators, product managers, and customer service teams are burning out, taking more time off to recover. Meanwhile, tech and accounting professionals are powering through with fewer leave days, a trend likely linked to heavier workloads and stricter compliance demands.

What this means for HR: The numbers may suggest productivity gains, but look deeper. Burnout, especially in high-demand sectors like education, can quietly erode performance and morale. Well-being needs to stay on your 2026 agenda.

Not all roles are moving in the same direction. The data shows:

• Rising demand: Data management, sales, education, and property management.
• Declining demand: Project management, supply chain, community services, and product management.

The pattern is clear: as automation takes over routine tasks, jobs that blend human connection with digital fluency are thriving.

What this means for HR: Recruitment strategies should follow the curve: invest in pipelining for high-growth roles while reskilling teams in areas where technology is consolidating work.

A Closer Look at Pay Structures

In his session “From Insight to Action: Using Data to Guide Workforce Strategy,” Atty. Lester Ople broke down the compensation frameworks that many Philippine organizations are using today:

• Individualized pay — salaries are negotiated case by case, often in family-run or smaller companies.
• Narrow-banded pay — fixed salary grades with clear steps, similar to government pay scales.
• Job family bands — salaries grouped by role families, with pay reflecting seniority and experience.
• Broad-graded structures — overlapping salary grades that create more flexibility and growth pathways.

These structures give HR leaders a lens for evaluating how competitive, equitable, and growth-oriented their pay systems really are.

With these key trends shaping the Philippine job market, how can HR teams respond effectively? Here are the essential strategies to help guide decisions, plan for growth, and stay ahead:

Atty. Lester Ople introduced the Lead-Lag-Match framework — deciding whether your organization should match the market, lead above it, or lag below it. Each approach has trade-offs, but the key is intentionality.

The fastest way to get this right? Benchmark in real time. Tools like Sprout Benchmark let HR teams access market data in minutes instead of waiting weeks for traditional surveys.

Tip: Explore our Pay Practice Playbook to learn best compensation practices that attract, retain, and motivate employees.

Burnout is real, and employees are vocal about wanting work-life balance. Supporting mental health programs, flexible arrangements, and open communication can reduce attrition while boosting engagement. 

Tip: Check out our State of Wellness 2026 report to discover top wellness initiatives that help you boost employee satisfaction and productivity.

Roles in cybersecurity, data management, and software development are not only growing: they’re paying more. That’s a signal to both employers and employees: invest in tech-driven skills and adopt smarter HR tools like Sprout Payroll to simplify processes.

As Sir Winston Malapad put it, HR data isn’t just numbers; it’s the story of your organization. When collected properly, it helps HR leaders make decisions rooted in evidence, not guesswork.

For James Reed, CEO of Likha Careers, working with Sprout made all the difference:

“From my perspective as a CEO, the way that the implementation was handled, that’s a level of service that I don’t think you find everywhere.”

Likha’s team also shared how Sprout made everyday work smoother:

“Employees say it’s really quite easy to file sick leaves and vacation leaves within Sprout.” – Michelle Santillan, Director of Accounting

Check out Likha Career’s full success story here.

If there’s one lesson from the State of Job Growth 2026, it’s this: HR leaders need to balance the science of data with the art of people leadership.

By rethinking pay strategies, prioritizing well-being, and embracing digital tools, HR teams can:

• Stay competitive in the talent market.
• Support employees through change.
• Build organizations that are resilient, engaged, and future-ready.

Download the full State of Job Growth report or watch the webinar recording for deeper analysis and actionable insights. 

You may also want to consider trying Sprout’s Benchmark to see real-time salary data. For more info, book a consultation to design smarter HR strategies and compensation frameworks for 2026 and beyond.