Economic growth ‘not inclusive’

DESPITE a strong economic performance, one sector of society that has not benefitted from the country’s growth is the poor.

And contrary to what is perceived, most of the poor are employed but remain poor because the income is not enough to support an entire family.

According to the Department of Labor and Employment, inclusive growth has eluded the poor due to a high unemployment among the youth, high underemployment rates in poor regions, high incidence of working poor, high incidence of vulnerable employment and a gender gap in wage employment and labor force participation.

Chita Celindro, who represented labor Secretary Rosalinda Baldoz at the Pathways to High and Inclusive Growth policy forum in Makati City Friday, said the Philippine Labor and Employment Plan (LEP), a medium-term strategy, seeks to achieve inclusive growth by providing decent and productive work.

Framework

The LEP strategic framework, she said, seeks to increase employment levels, improve the quality of employment, expand access to employment opportunities and advance social dialogues toward mutual gains.

Dole identified 10 key areas that can generate more employment opportunities. These are in tourism, business process outsourcing, electronics, mining, agribusiness and forest-based industries, logistics, shipbuilding, infrastructure, housing and potential industries such as homestyle products, wearables and garments.

The department lists fishermen, farmers, children, women, youth, senior citizens, migrant and formal sector workers and the urban poor as the “most vulnerable” sectors that needed the most attention.

Celindro said that the LEP complements the Philippine Development Plan, which is the country’s medium-term strategy for high economic growth.

She said that for growth to be inclusive, growth should include “decent work” for those who need it.

The forum noted that inclusive growth needs a combination of social protection, pro-poor employment and good governance.

Asian Institute of Management (AIM) president Dr. Edilberto de Jesus said the poor becomes the most affected by economic problems.

He noted that while the Philippines posted a strong economic performance since 2000, poverty persisted.

“A robust economic growth alone does not alleviate poverty,” he told forum participants.

Professor Solita Monsod, professor emeritus of the University of the Philippines School of Economics, said social protection, pro-poor employment and good governance are all connected.

Myth

She also said that the perception the poor are unemployed is a myth. “They cannot afford to be unemployed. The problem is the quality and productivity of employment.”

Monsod said the level of education, the number of children in a family and the state of agriculture in the country are all factors that keep families in poverty.

Dr. Natalie Chun of the Asian Development Bank said that their studies in developing Asia show that is it not unemployment that is high, but informal employment.

UP School of Economics associate professor Dr. Emmanuel Esguerra shared Monsod and Chun’s views, saying the lack of skills force the poor to resort to low wage jobs.

To promote pro-poor employment, Esguerra said policies should ensure the movement of labor from low to high productivity and that potential bottlenecks that could prevent these from happening should be addressed. –Mia A. Aznar, Sun Star