Jobless Filipinos hit 15M — study

The true unemployment gap in the Philippines is about 15 million able-bodied Filipinos that include the totally jobless, those who are holding part-time jobs during some periods of the year and overseas Filipino workers (OFWs) whose work contract have expired, Dr. Fernando Aldaba, former dean of the Ateneo School of Economics, said.

Aldaba made an eight-month study which he used as basis for the formulation of an industrial policy for the country by the National Competitiveness Council (NCC).

Aldaba presented his findings to leaders of key industries in the country, including officers of foreign chambers of commerce who were called to join a Thought Leaders Forum Thursday to draw a roadmap to bridge the unemployment gap for the country in the next five years.

Setting the tone of the forum, NCC private sector chairman Cesar Bautista said, “As we chart the way forward for improving competitiveness and governance even after the May 2010 elections, we have to prepare plans for continuing the projects that have gained champions from the various business groups in both competitiveness and governance. It is predicated on the assumption that the private sector leaders will be able to present these proposals to the top leadership of the new government as this administration bows out in June.”

The NCC was created through an executive order in 2006 to help government avert the continued decline of the country’s competitiveness rating which has continued to skid to the lowest ranks of the most uncompetitive economies in the world in recent years.

In dissecting the unemployment situation in the country, Aldaba noted that Filipinos that are out looking for jobs number 2.82 million. The underemployed, mostly in low-paying jobs in the services sector number another 7.3 million.

Returning OFWs every year whose contracts have ended number about 5 million. In all, he said, quality jobs are needed by 15.16 million Filipinos.

The economy must be able to create an average of three million quality jobs a year for the next five years, Aldaba asserted, to be able to bridge the real unemployment gap and bring down unemployment rate at two percent by the end of the fifth year.

Consulted were leaders of the mining industry, the tourism sector and manufacturing, particularly those in the automotive and electronics industry on how many jobs they can commit to create for that planned period.

Benjamin Romualdez, president of the Chamber of Mines of the Philippines, said that the mining industry is one bright area where thousands of jobs can be created yearly. The biggest hurdle, however, are local government units that have come to declare moratoriums in the development of mining prospects in their territories.

He urged government for consistent policy as the geological prospects for various metals are very high in the country.

Another big job generator that was identified is the tourism sector which is said to be able to create three jobs for every foreign tourist that arrives in the country. The industry which was the envy of the rest of Asia in the 1970s, has lagged behind its neighbors in terms of investments.

In the export sector, Ernesto Santiago, president of the Semiconductors Electronics Industries of the Philippines Inc., said that investments have been the main driver for job creation. He revealed that in the electronics sector, a P1 million investment creates one quality job. In the garments sector, P50,000 of investment creates one job while P30,000 is needed by a furniture maker to create one job.

A consensus was arrived at by participating business leaders that the manufacturing sector must lead in job creation as they are the ones that create decent, good-paying jobs.

There are also bright prospects for agri-business and tourism as the big job creators in the immediate future.

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