Young workers regained jobs in only 7 of 35 sectors–ADB

BY CAI ORDINARIO, 30 Aug 2021

MAJORITY of young Filipinos who lost their jobs in 2020 were working in only seven out of 35 sectors, according to the Asian Development Bank (ADB).

In a report titled, “Tackling the Covid-19 youth employment crisis in Asia and the Pacific,” the ADB and the International Labour Organization (ILO) estimated that 76.4 percent of youth job losses in 2020 were seen in sectors such as tourism, trade and agriculture.

Data showed that of the 76.4 percent of youth job losses in these seven industries, tourism—namely, hotels and restaurants—accounted for 19.8 percent of the young job losses.

“Tourism has been hit hard by the economic crisis and this is reflected in expected employment losses in hotels and restaurants. The sector may account for 10 percent or more of employment losses in nine countries, with the highest losses in Cambodia, Mongolia and the Philippines,” the report stated.

The multilateral lender also estimated that around 1.019 million young Filipinos lost their jobs during the long lockdown. Some 687,000 lost their jobs during a short containment.

The unemployment of young Filipinos during long containment reached 19.5 percent while the rate during short containment was at 15.1 percent.

“Job losses among youth may reach 14.8 million in 2020 in the 13 countries under the 6-month containment scenario. A longer containment period will naturally result in higher job losses,” the ADB said.

“For most countries, a 6-month period would reach into September because containment started near the beginning of April. This is likely the case for the Philippines,” the report stated.

Sectors

THE ADB said the aggregate job losses will be concentrated in seven sectors. Some of these sectors have been hard hit by the pandemic and employ many young people.

These sectors “retail trade, textile manufacturing, and hotels and restaurants” will naturally experience large aggregate job losses.

Other sectors may not be especially hit hard by the pandemic but will nonetheless incur large aggregate job losses because they employ many workers.

These sectors include agriculture and other community, social and personal services. Some sectors that may be hard hit by the pandemic and likely to experience a high rate of job loss may, however, have only modest aggregate job loss because they are relatively small and do not employ many young workers.

An example is the rental and business services sector; it is listed among the high impact sectors, but is not among the seven sectors identified as having the most youth job losses.

“The seven sectors, out of 35, may account for 70 percent or more of total youth job losses in all but three countries. In manufacturing, the largest losses are expected in textiles, although they are concentrated in the major exporters,” the report stated. “Agriculture will suffer the largest losses in four of the 13 countries.”

Data showed that apart from tourism, most of the job losses among young Filipinos were seen in retail trade at 16.2 percent. The data included the repair of household goods but excluded the retail trade of motor vehicles and motorcycles.

This was followed by Agriculture which accounted for 15.2 percent of youth job losses in 2020. The ADB said the data included jobs lost in hunting, forestry and fishing.

The estimates done by the ADB using ILO data and the bank’s “Multiregional Input–Output Tables,” showed 12.9 percent of young Filipinos who lost their jobs last year were working in the construction sector.

This was followed by “Other services,” which included community, social and personal services, 8.1 percent of lost jobs; inland transportation, 3.6 percent; and, textiles and textile products, 0.6 percent.

As of June 2021, the Youth Labor Force grew by 265,000 to 7.989 million from 7.724 million in May 2021.

Those who were employed reached 6.831 million while 1.158 million were deemed unemployed. Some 919,000 were considered underemployed.

The Youth Labor Force Participation Rate reached 39.8 percent in June 2021; employment rate, 85.5 percent; unemployment rate, 14.5 percent; and, underemployment, 13.5 percent.