CONSTRUCTION activity rebounded in Davao City in the second quarter of 2026, while labor-market indicators also improved, pointing to continued business activity despite elevated inflation, according to the Philippine Statistics Authority's Quickstat released on September 25, 2026.
Construction activity picked up sharply in Davao City in the second quarter, with a surge in approved building permits signaling renewed activity in the city’s property and construction sectors.
The city recorded 610 approved building permits from April to June, nearly doubling from 339 in the first quarter and rising from 366 in the fourth quarter of 2025, according to the Philippine Statistics Authority.
The permits covered 182,499 square meters of floor area valued at P2.15 billion. The higher number of permits, however, did not translate into a higher total construction value, which fell from P4.27 billion in the first quarter.
Of the reported permits, 466 were residential projects valued at P1.13 billion, while 142 were nonresidential projects worth P1.01 billion.
The construction pickup came as Davao City’s labor market also strengthened in 2025.
More people joined the workforce, pushing the labor force participation rate to 64.4 percent from 63.8 percent in 2024. The employment rate likewise increased to 96.2 percent from 95.7 percent, while unemployment declined to 3.8 percent from 4.3 percent.
The city had an estimated 894,000 people in the labor force, including 860,000 employed workers.
But the improvement did not mean all workers had enough work. The underemployment rate rose to 4.1 percent from 3.3 percent, with the number of underemployed workers increasing to 35,000 from 28,000.
Households also reported higher incomes. Average annual family income climbed to P466,070 in 2025, up from P412,910 in 2023. But families were spending more, too, with average annual expenditures rising to P319,060 from P238,470 over the same period.
That pressure was reflected in the city's latest inflation figures.
Davao City’s inflation rate stood at 6.7 percent in August, easing slightly from 6.8 percent in July but remaining above the 6.2 percent recorded in June. The consumer price index rose to 140.1 from 139.7 over the same period.
The purchasing power of the peso stood at 0.71 in August, compared with 0.72 in July, the PSA reported. MLSA
