The Filipino worker has and will always be a force in local and international labor markets. With professionals, skilled labors and experts braving our shores and abroad, there’s no doubt that Filipinos never run out of ways to battle unemployment.
A December 2023 data by the Philippine Statistics Authority (PSA) showed that the Philippines exhibited a record-low 3.1% in unemployment rate in the past 20 years. The underemployment rate decreased from 12.6% to 11.9% as more individuals earned sufficient working hours.
Ernesto M. Pernia: “Stable Employment for the Poor”
In one of his statements during the World Bank Report launch in 2018, Socioeconomic Planning Secretary and Director General of the National Economic and Development Authority (NEDA) Ernesto M. Pernia primarily emphasized that employment serves as a catalyst for economic growth for the underprivileged and believes that opportunities should be more available for the marginalized labor force.
Pernia wasn’t preferential about his visions, but he pointed out that training and re-training should be available for both skilled and unskilled individuals, provided that they are capable of working.
He also highlighted financial literacy as one of the critical paths to alleviate poverty and that the government should be looser in job promotions.
Arsenio Balisacan: Potential unemployment following wage hikes
“Quite reasonable, not constraining” was how NEDA Secretary Arsenio Balisacan described the recent P35.00 wage hike in Metro Manila.
However, despite the monetary advantages of this salary increase, Balisacan thinks this may not entirely indicate an absolute progression.
The NEDA head outlines three aspects that might suffer negligible impacts following the rate increase: GDP, investments, and unemployment. While focusing on the latter, Balisacan said that about 40,000 to 140,000 Filipinos might be jobless after the wage hike.
Although these numbers indicate a setback, he added that it may not be as significant as if the hike were more than the proposed. Additionally, workers displaced for whatever reason after the increase can still have more opportunities as the economy continually grows with more enterprises rising.
Like Pernia, Balisacan believes the nation should capitalize on its labor force, encouraging the need to enhance job quality, another catalyst for increased wages.
Lowering unemployment in the Philippines
The nation might have seen a significant and consistent decline in unemployment rates for quite some time. However, specific areas might still need attention, as experts unanimously believe:
Structural reforms – Economists believe labor laws need reform to accommodate job creation, enhancement and sufficiency.
Regional development – Dissimilarities in opportunities in urban areas and offshore provinces create migration pressure in the metro. Experts think this should get off the picture by developing regional establishments and generating employment.
Inclusive growth – Opportunities should be equal for everyone. The lone disparity should only rest on skills, which sufficient training can erase.
