Joblessness improves but optimism worsens

JOBLESSNESS dipped in the first quarter, the Social Weather Stations (SWS) said in a new report, but optimism on the availability of work worsened slightly.

Results of a March 27-30 survey set the joblessness rate at 25.7%, equivalent to an estimated 11.5 million adult Filipinos. This was down 1.8 points from the 27.5% (est. 12.1 million) recorded three months earlier.

The rate, the SWS said, has been above 20% — except in three instances — since May 2005. The record low is 5.4%, recorded in February 1998, while the record high of 34.4% was hit in February 2009.

The same survey found 36% of respondents saying that the number of openings would increase in the next 12 months, while 32% replied the situation would not change and 23% said fewer jobs would be available.

These resulted in a “fair” net optimism score of +13 (% more jobs minus % fewer jobs), down six points from the also “fair” +19 recorded three months earlier.

A Palace official admitted that more needed to be done in terms of job creation.

Those without work as of March, the SWS said, either resigned (11.4% or and estimated 5.1 million adults), were retrenched (10.7% or 4.8 million) or were first-time job-seekers (3.3% or 1.5 million).

Broken down further, the retrenched consisted of 6.4% whose contracts were not renewed, 2.2% whose employers closed operations and 2% who were laid off.

“Adult joblessness has traditionally been dominated by those who voluntarily left their old jobs and who lost their jobs due to economic circumstances beyond their control,” the SWS said.

Compared to December, the number of those who quit fell by 2.1 points from 13%, while those who were retrenched marginally rose from 10.4%.

First-time job seekers hardly changed from 3.5%.

Joblessness fell everywhere except among women and those aged 35-44, the SWS said.

By sex, joblessness among women rose by 1.9 points to 37.8%, while among men it fell by 4.7 points to 16.5%.

By age group, joblessness fell by 8.9 points among the youth or those 18-24 years old to 43.4%. It also fell among those aged 25-34 to 30.5% from 33.1% and among those aged 45 and above to 16.5% from 17.7%.

It rose by 0.5 points to 25.5% among those aged 35-44.

Asked to comment, Sec. Herminio B. Coloma Jr., of the Presidential Communication Operations Office said “much more needs to be done to create even more meaningful job opportunities for large numbers of Filipinos.”

“The government is earnestly pursuing intensified job creation in industries where the Filipinos native industry and talent will sharpen the country’s competitive edge in the global economy,” he added.

The SWS’ definition of joblessness differs from that used by the government. Its respondents are at least 18 years old compared to the lower official boundary of 15. Persons with jobs are those currently working, including unpaid family members.

Joblessness figures, the SWS added, are based on two traditional definitions: having no job at present and also looking for one. Those not working but are also not looking for a job — housewives, students, etc. — are excluded from the labor force.

The government’s official Labor Force Survey, meanwhile, defines the unemployed as those not working, are looking for work and are available for work. Those not available for work, even though looking, are excluded, and those available for work but are not seeking it (for reasons such as illness or waiting for results of a job interview, etc.) are included.

Applying the government’s definition, the SWS said adult joblessness as of March would be 17.1%, equivalent to an estimated 6.9 million Filipinos.

The March 27-30 survey used face-to-face interviews of 1,200 adults nationwide. The sampling error margins were ±3% for national, ±6% for regional percentages.