Wednesday, January 22, 2025
HomeTop StoriesNational NewsPoverty in the Philippines: An Overview

Poverty in the Philippines: An Overview

Poverty is one of the harsh realities that most Filipinos have to face for the longest time. It is a fact that not everyone was born to a wealthy family, while others greeted the world with a golden spoon in their mouths. Some belong to families that are living from paycheck to paycheck.

Data showed that in 2023, the Philippines suffered a 10.9% poverty rate. These numbers were behind the projected rate of the Federal World Bank which stood at 13.7% in the same year and 17.8% in 2021.

Source: Philippine Statistics Authority – Poverty Incidence

The most known factor for the non-achievement of these targets is inflation. There have been economic developments since 1985, evidenced by infrastructures and the elevation of education. However, these improvements weren’t enough since these changes were focused mainly on urban areas, making it inaccessible communities in remote areas.

As a result, income inequality worsened the poverty rate in the Philippines.

Other Factors Triggering Poverty in the Philippines

Here are more aspects that contribute to the worsening poverty in the Philippines.

Meager job opportunities

Uncontrolled population growth

Lack of focus on the growth potential of agriculture

Counter-productive poverty reduction measures such as persistent asset inequality and low growth elasticity

Income and Poverty

Income inequality is one of the most prominent contributors to poverty among Filipinos. Like the economic developments, quality education became more distant for far-flung communities, rendering their children at a disadvantage when it comes to professional opportunities. What’s more challenging is companies require training and higher education from prospective candidates for organizational positions.

Taking into consideration these factors, Filipinos with limited access to these privileges will be less likely to land a decent job. Eventually, their income earned from less competitive roles will not be enough.

Can Salary Levels in the Philippines Compensate?

Latest statistics show that the Philippines’ minimum wage for employees has increased by 8.2%. But are these numbers enough? Given the increase in the prices of commodities mainly brought by inflation Filipinos need to spend more for their basic needs.

This comes as a heavy blow since prices of primary necessities of regular citizens have also ballooned to 8.9% early in 2024. Hence, the increase in minimum wage cannot and will not break even with the rising commodity prices in the country.

Is there hope?

Amidst long-running global crises that have heavily affected the Philippines over the years, the government remains optimistic about pulling the poverty rate in the country down. By 2028, they aim to drop the nation’s poverty percentage to a single digit.

Some of the measures the government hopes to implement include economic growth through accelerating Gross Domestic Product (GDP) expansion; combat inflation by stabilizing commodity prices and performing social initiatives to reduce poverty.

These will structure other goals such as strengthening the education system; relaxing tariff barriers and improving the agriculture sector.

While these may be a long shot, Filipinos remain hopeful and continue to struggle to survive. 

References:

https://outreach-international.org/…/poverty-in-the…

https://savemytaxes.org/poverty-in-the-philippines

https://www.adb.org/…/poverty-philippines-causes…

https://hrmasia.com/minimum-wage-in-the-philippines-not…

https://www.pna.gov.ph/articles/1217258

Read More

Recent News

- Advertisment -
Google search engine