Bank predicts Unemployment rate worsening

The number of Filipinos without jobs is likely to worsen until 2010 as the domestic economy is seen to grow at a slower pace because of declining demand for export products, the World Bank warned on Tuesday.

Meanwhile, the President announced another job-creation program to help blunt the impact of the global crisis on the Philippines. And the Metro Manila Development Authority announced it is looking to hire 1,800 people.

The Washington-based lender said the economic slowdown is taking its toll on the labor market, albeit the impact would be felt with a lag.

The bank’s downgraded further the country’s economic growth to 1.9 percent this year from a 3 percent it earlier forecast in December. (See related front-page story)

“We see labor market weakening until the end of 2010,” Eric Le Borgne, World Bank senior country economist told reporters.

He said that a deterioration of labor market could lower domestic consumption, which is the largest component of the economy.

Le Borgne said with a comparatively high population growth rate, the Philippines has in the past relied on high domestic economic growth and labor export to absorb its work force.

“Both sources of labor absorption are now under pressure and are expected to worsen further, probably well into 2010. Measures undertaken by the government to assist workers made redundant [especially in the export sectors] and returning OFWs are welcome in this regard,” he added.

The National Statistics Office (NSO) earlier reported that the unemployment rate increased to 7.7 percent in January from 7.4 percent a year ago, with employment of less skilled workers being disproportionately affected.

Massive job cuts

Along with the slump in exports, the manufacturing sector continued to shed jobs, posting about 120,000 job losses through January.

At-end March, the government reported that there were about 45,000 job losses from OFWs and electronic industry workers, while more than 30,000 workers were affected by forced leave, reduced work-hours and other cost-cutting measures implemented by companies.

Le Borgne said the export-oriented firms, especially semi-conductor manufacturers, have reported large losses in revenues because of the collapse in global demand.

“Other export industries reporting a sharp downturn in activity include the labor-intensive garments, furniture, footwear and handicraft industries,” he added. He also said that the agribusiness and mining sectors have also been affected with the fall in commodity prices, while the property sector is exhibiting early signs of impending localized stress.

Despite these difficulties, Le Borgne said that to date companies listed on the stock market, as well as banks, have weathered the global economic and financial shocks well. He stressed that “the financial sector remains financially sound with capital adequacy ratio higher than required.”

Jim Adams, World Bank’s vice president for East Asia and Pacific region said the measures the authorities have taken to counteract the crisis across the region are helping to cushion the impacts on the most vulnerable people.

“With unemployment likely to increase—especially as jobs in manufacturing and construction disappear—social protection efforts will have to expand to meet very real human needs,” Adams said.

Jobs for youths

President Gloria Arroyo announced another temporary employment program for the youth as the country grapples with the economic crisis and massive job losses.

In a speech during the observance of the 67th “Araw ng Kagitingan” in Pilar, Bataan province, the President said she launched last week the Youth National Service that targets 18 to 24 years olds.

“The National Service Corps shall like a domestic ‘Peace Corps’ of the United States. It shall be geared to the unemployed or underemployed skilled youth or college graduates,” the President explained.

Mrs. Arroyo said the government now recruits youth related to the World War II veterans to undertake two-year national service commitment with a modest stipend.

“I would like to instruct [Defense] Undersecretary [Ernesto] Carolina to help us identify grandchildren of Filipino World War II veterans that can be recruited to the National Service Corps,” Mrs. Arroyo said. Carolina is also head of the Philippine Veterans Affairs Office.

As a start up, the President said the Department of Social Welfare and Development (DSWD) has opened 10,000 short-term jobs in the government’s P1-billion poverty mapping project.

The poverty map will serve as the government’s global positioning system (GPS) locator in funneling out funds, such as conditional cash transfer and subsidized rice to poor families around the country.

“This way, we’re helping veterans’ relatives find jobs and at the same time locate their poor family members so that government aid could be given to them,” President Arroyo said.

The government will continue to help war veterans and their families as a way of paying its debt of gratitude to the heroism that they manifested during the war.

MMDA hiring also

Chairman Bayani Fernando of the Metro Manila Development Authority (MMDA) announced also on Tuesday that his agency needs about 1,800 new employees for office jobs and field operations. Experience is not necessary, he added in a statement.

Fernando said a job at the agency was a good steppingstone for those who wish to land a higher-paying job abroad or in private companies in the future. “We do not discriminate,” he said. “With or without [work experience], we will accept everyone who is willing to work with us. We will even train you.”

For manual labor, the authority needs laborers, foreman, painters, carpenters, masons, and drivers, who will be assigned to work in the agency’s Landscape Management Office, Road Clearing Group, Traffic Engineering Center, and Construction and Equipment Maintenance Office.

Two hundred twenty-six traffic enforcers are also needed to augment the ranks of the Traffic Operations Center, the authority’s traffic management arm.

As of April 2, a total of 1,048 slots are available for immediate hiring, Fernando said. For enforcement and administrative work, the agency also needs to fill up 732 positions—from security officers, legislative staff assistants, clerks, computer programmers, accountants and engineers.
Fernando added there are also vacant positions for architects, electricians, lawyers, storekeepers, planning and records officers, and public information officers.

To facilitate the hiring of workers, the agency has been dispatching mobile recruitment teams all over Metro Manila, especially in depressed areas in Tondo, communities along Commonwealth Avenue in Quezon City, C5/Taguig and Camanava area.
— Darwin G. Amojelar And Angenlo S. Samonte, Manila Times