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There is a pressing need for a road map towards improving the lag in
agriculture and manufacturing to address a stubbornly high unemployment
rate.
Analysts interviewed by GMA News Online said a strong output alone
which grew by 7.4 percent in the first three quarters of 2013, the fastest phase
in Southeast Asia cannot address Philippine unemployment, especailly by
relying heavily on the services sector.
The United Nations (UN) and the International Monetary Fund (IMF) have
this to say about the Philippine economy: it will continue growing faster than
peer economies in Southeast Asia.
Despite the rosy predictions, and the latest performance of the economy, the
Philippines has the highest unemployment rate in the region.
Translating economic growth into employment opportunities remains a
significant challenge in the Philippines, according to the UN World
Economic Situation and Prospects 2014 report released earlier this week.
The National Statistics Office (NSO) has noted the population of working age
Filipinos or those over 15 years old are more than 63.1 million. But
employment in the services sectors sunshine industry business process
outsourcing account for less than a million jobs.
Not enough
Jobs are being generated, but not fast enough to make a dent in
unemployment rate of 6.5 percent as of end-October 2013, said Emilio Neri
Jr., Bank of the Philippine Islands lead economist.
Jobs growth is commendable, but it is not enough, he said.
The latest unemployment number actually dipped from 6.8 percent in
October 2012, but a labor expert said this could be because more Filipinos
have given up looking for jobs.
The high unemployment rate despite the high GDP growth may have
contributed to the pessimistic outlook of Filipinos last December.
A survey by another polling outfit, Pulse Asia, found that 55 percent of
Filipinos felt the national quality of life deteriorated in the past 12 months.
They also expected the situation to remain the same for the whole of 2014.
Understandable
Malacaang on Monday described as understandable the findings of the
SWS survey.
Presidential spokesman Edwin Lacierda pointed to calamities that hit the
country last year to help explain why unemployment rate increased to 27.5
percent at the end of 2013.
Lacierda cited Super Typhoon Yolanda (international name: Haiyan), which
devastated central Philippines last November, and the 7.2-magnitude
earthquake that hit Bohol and Cebu provinces a month earlier.
According to the Geneva-based International Organization for Migration,
some 6 million workers saw their livelihood destroyed or disrupted as a result
of Yolanda.
Lacierda said the siege of Zamboanga City by Nur Misuaris followers also
disrupted economic activity in the area.
Certainly, its very unfortunate that these things happened, but we have to
rise up. That is the role of government: to provide for its people, he said.
Bloodied but unbowed
We were bloodied but unbowed, Lacierda added, borrowing the words of
William Ernest Henleys poem, Invictus.
Despite the increase in the unemployment rate, Lacierda said the government
would continue to ensure that our people find employment.
The latest jobless rate, however, was below the 34.4 percent posted in March
2012.
The unemployment rate has mostly remained over 20 percent since May
2005, according to SWS. It was under 15 percent from 1993 to March 2004,
and was within 16.5 percent to 19 percent from August 2004 to March 2005.
Different definitions
The SWS definition of unemployment covers respondents aged 18 and above
who are without a job at present and looking for a job. This excludes those
not looking for work such as housewives, students and retired or disabled
persons.
This is different from the official definition in the Labor Force Survey (LFS),
which covers persons 15 years and over who are reported not working,
looking for work and available for work.
The governments latest LFS put the official unemployment rate at 6.5
percent (about 2.6 million Filipinos) as of October 2013.
The SWS survey also found that 40 percent of respondents believed there
would be more jobs in the next 12 months, 31 percent claimed the number of
available jobs would remain the same, while 21 percent expected fewer jobs.
Unemployment picked up sharply among men (from 13.4 percent to 21.2
percent) but remained higher among women (from 32.4 percent to 35.9
percent).
Highest among 18-24
Across age groups, joblessness remained highest among those 18-24 years
old (52.3 percent). It was 33.1 percent in the 25-34 age bracket, 25 percent in
the 35-44 age bracket and 17.7 percent among those 45 years old and older.
The nationwide unemployment included those who were retrenched (10.4
percent), resigned from their jobs (13.5 percent), and first-time job seekers
(3.5 percent).
Endo
Of those retrenched, 6.8 percent did not have their contracts renewed (also
called endo or end of contract, usually after six months so that the workers
wont be regularized and the employer wont pay benefits), 1.6 percent had
employers whose businesses ceased operations and 2 percent were laid off.
The survey, which used face-to-face interviews with 1,550 Filipinos, had a
margin of error of plus-or-minus 2.5 percentage points.Reports from
Rafael L. Antonio and Kathleen de Villa, Inquirer Research; and Christian
V. Esguerra
Rising unemployment and poverty in the Philippines
By Dante Pastrana
6 April 2009
The Philippine economy is reeling under the impact of the global recession,
with growth rates slowing from 7.3 percent in 2007 to 4.6 percent in 2008
and a further steep decline expected this year. While the country is not as
heavily reliant on exports as Singapore or Thailand, exports nevertheless
averaged nearly 45 percent of GDP between 2003 and 2008.
Last year exports fell sharply. Merchandise exports contracted by 1.7 percent,
electronics by 24.3 percent, garments by 6.5 percent and other manufactured
products by 32.9 percent. Exports of mineral products slid 2.92 percent, down
from a growth of more than 20 percent in 2007. Agricultural exports
measured by value rose 28 percent but only because of rising prices. By
volume, this sector also declined by 2 percent.
The Philippines other major exportcheap labourrose sharply by 28
percent, up from 1.4 percent growth in 2007. More than 1.376 million
workers left the country looking for work. Compared to 2007, remittances
rose last year by 15 percent to $17 billion, according to the World Bank.
Three months into 2009, eight of the countrys top ten export destinations
including the US, its main trading partnerare in recession. As a result, the
Philippine government has been forced to revise its forecast for 2009
downward from a range of 3.7-4.7 percent to 3.7-4.4 percent. Other
predictions are worseranging from 3.8 percent by the Development Bank
of Singapore to 1.8 percent by the Union Bank of Switzerland.
New year-on-year data for January 2009 underscored the dimming economic
prospects. Exports dropped by 41 percent after falling sharply in December
by 40 percent. Exports of manufactured goods, which comprise 84.8 percent
of the total, decreased year-on-year by 39.9 percent. Agricultural
commodities dropped by 38.5 percent and mineral products by 43 percent.
Recently released Labor Department figures for 2008 attempted to paint a
picture of a resilient labour market, highlighting the departments claim that
over 530,000 jobs were generated in 2008. The figure was well below the
924,000 jobs created in 2007 and far less than the governments annual target
of 1.6 million jobs. Nearly half262,000were in agriculture, forestry and
hunting, with average pay of $US2.7 a day, barely above the UN poverty
threshold of $2 a day. The governments minimum cost-of-living for a family
of six is over $18 a day.
The Labor Department report acknowledged that losses of better-paid jobs in
other areas had been high. In manufacturing, 135,000 jobs with an average
basic daily pay of $6 were axed. The electricity sector lost 5,000 jobs with an
average daily pay of $9. In transport, 9,000 jobs with an average daily pay of
$7 were destroyed.
Intel Corporation shut down an assembly test facility on Luzon Island and
terminated 1,800 workers, more than half its 3,000 workforce. By the
midyear, it expected to halt production altogether. Panasonic announced
plans to close a battery factory, with 60 employees to be terminated. The
business processing and outsourcing company, Accenture, announced a 50
percent cut in its 1,000-strong workforce. Another electronics company,
Amkor Technology, retrenched 1,500 workers, 20 percent of its workforce.
More recently, Fujitsu announced 2,000 job cuts last month, to take effect on
April 18.
The official estimate for unemployment in 2008 was 7.4 percent or 2.7
millionan increase of 0.1 percent from 2007. These figures, however, are a
gross understatement. The government defines the unemployed as those who
are simultaneously without work, looking for work and immediately
available for work.
Moreover, working is broadly defined to include unpaid work for family
businesses (a small farm or a small variety store) and working for oneself
(street vendors, jeepney drivers). If the 4.1 million unpaid workers in family
for unpaid overtime and a compressed work week. Nearly half the workforce
is employed in the so-called informal sector where workers are not even
protected by the countrys weak labor code and regulations and receive less
than the minimum legal wage.
As the economy sinks further and unemployment continues to grow, a social
explosion is building up as working people find it increasingly impossible to
make ends meet.
nemployment means being out of job or a situation where the individual is
wiling to work but has none.
This article brings and discusses the main issues/effects of the unemployment
on our society and economy.
How does unemployment affect the economy?
Some of the well-known effects of unemployment on the economy are:
Unemployment financial costs
The government and the nation suffer. In many countries the government has
to pay the unemployed some benefits. The greater the number of the
unemployed or the longer they are without work the more money the
government has to shell out.
Therefore, the nation not only has to deal with the lost income and decreased
production but also with additional cost.
Spending power
The spending power of an unemployed person and his/her family decreases
drastically and they would rather save than spend their money, which in turn
affects the economy adversely.
Reduced spending power of the employed
Increased taxes and the insecurity about their own work may affect the
spending power of the working people as well and they too may start to
spend less than before thus affecting the economy and also the society in a
negative manner.
Recession
With the increase rates of unemployment other economy factors are
significantly affected, such as: the income per person, health costs, quality of
health-care, standard of leaving and poverty.
All these affect not just the economy but the entire systems and the society in
general. Here are some aspects of the impact of unemployment on our
society:
The effect of unemployment on our society
Unemployment affects not just the person himself but also his/her family and
in the long run the society where he lives.
Unemployment brings with it despair, unhappiness and anguish. It forces
people to live their lives in a way they do not wish to The life expectancy is
negatively affected.
Life expectancy is the ease by which people living in a time/place are able to
satisfy their needs/wants. Here are the main aspects:
1. Mental health: Mental health problems like: Law self-confidence,
feeling unworthy, depression and hopelessness. With the lost income
and the frustration involved in it, the recently unemployed may develop
negative attitudes toward common things in life and may feel that all
sense of purpose is lost. Frequent emotions could be low self-esteem,
inadequateness and feeling dejected and hopeless.
2. Health diseases: The unemployment overall tension can increase
dramatically general health issues of individuals.
3. Tension at home: Quarrels and arguments at home front which may
lead to tension and increased numbers of divorces etc.
4. Political issues: Loss of trust in administration and the government
which may lead to political instability
5. Tension over taxes rise: Unemployment also brings up discontent and
frustration amongst the tax paying citizens. In order to meet the
demands of the unemployment fund the government many a times may
have to increase the taxes thus giving way to restlessness amongst the
tax paying citizens.
6. Insecurity amongst employees: The prevailing unemployment and the
plight of the unemployed people and their families may create fear and
insecurity even in the currently employed people.
The main thrust of this activity is the need for the integrated development of
the rural sector, the spread of small-scale industries throughout the
countryside, and the reorientation of economic activity and social
investments toward the rural areas.
Full development of small-scale, labor-intensive industries
The expansion of these mostly small-scale and labor-intensive industries in
both urban and rural areas can be accomplished in two ways: directly,
through government intervention and indirectly through investment
incentives for the private sector. This is because the consumption activities of
barrio folk demand less import-intensive and more labor-intensive than that
of the rich (there are less import-oriented shopping malls in the provinces!)
Choosing appropriate labor -intensive technologies of production
One of the principal factors inhibiting the success of any long-run program of
employment creation both in urban industry and rural agriculture is the
almost complete technological dependence of Third World nations on
imported (typically labor saving) machinery and equipment from the
developed countries. Both domestic and international efforts must be made
reduce this dependence by developing technological research and adaptation
capacities in the developing countries themselves. Such efforts might first be
linked to the development of small-scale, labor-intensive rural and urban
enterprises. They could also focus on the development of low-cost, laborintensive methods of meeting rural infrastructure needs, including roads,
irrigation and drainage system, and essential health and educational services.
This is an area where scientific and technological assistance from the
developed countries could prove extremely fruitful.
Creating a more direct link between education and employment
The phenomenon of the educated unemployed calls into question the
appropriateness and relevance of the educational system, especially at the
higher levels in this country.
The creation of attractive economic opportunities in rural areas would make it
easier to redirect educational system toward the needs of rural development.
Annie says:
March 6, 2014 at 12:56 am
One reason left out in the above article As to why so many Filipinos are
unemployed, and thus poor, is the unsustainable rapid population
growth in our country. The number of Filipinos of working ages
entering the job market every year far out-strips the number of jobs our
economy could produce resulting therefore in high unemployment.
We have to slow down our birth rate to reduce unemployment and
poverty.
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Tinoy says: