More jobs needed in formal sector -Paderanga

MANILA, Philippines – Socioeconomic Planning Secretary Cayetano W. Paderanga, Jr. said more jobs are needed in the formal sector in spite of improved labor figures last year, a statement released Thursday by the National Economic and Development Authority (NEDA) noted.

“In the Philippines, there are many jobs that ordinarily in developed countries would not be thought of as work. Our problem, however, is that many of the employed are working in the informal sector, where the income levels are really quite low. We would like to produce more work in the formal sector,” the Cabinet secretary said.

He said the quality of employment remained positive last year, with a 4.6% growth in wage and salary employment, 1.5% growth in full-time employment and a slight drop in the unemployment rate from 7.3% in 2010 to 7.0% in 2011. Employment level rose by 3.2% or 1.156 million, largely on the strength of the continued growth in services and the recovery in agriculture, although there was a slowdown in the industry sector. The improvement in the figures came despite the increase in the labor force participation rate from 64.1% to 64.6%, he said.

However, he said the country’s underemployment rate increased from 18.8% in 2010 to 19.3% in 2011.

“In the Philippines, many of those already employed are finding themselves in jobs that they probably are not satisfied with. Many are fully employed but wages are low,” Paderanga said, adding that a high underemployment rate is an indicator that per capita income is low.

The unemployed is internationally defined as individuals 15 years old and over without work, seeking work and available for work. On the other hand, the underemployed are those of the same age bracket who are already employed but want to have additional hours of work in their present job or an additional job, or to have a new job with longer working hours, NEDA said.

Paderanga, who is also the NEDA Director General, said that the figures were taken from the results of the quarterly Labor Force Survey, which complies with international standards and guidelines prescribed by the United Nation’s International Labor Office. –Jovan Cerda (philstar.com)