Unemployment at 6.8%; 2.8M without jobs

THE JOBLESS RATE eased to 6.8% in October from July’s 7.0% but the ranks of the unemployed remained the same, which analysts described as a failure of economic growth to translate to more jobs.

Unemployment was higher than the 6.4% recorded a year earlier, data from the quarterly Labor Force Survey of the National Statistics Office showed. In absolute terms, the number of jobless Filipinos as of October was 2.8 million, the same as July’s but up from the 2.6 million a year ago.

The number of Filipinos seeking more work — the underemployed — stood at 7.2 million. This translated to an underemployment rate of 19.0%, almost unchanged from last year’s 19.1% and an improvement from July’s 22.7%.

“GDP (gross domestic product) was high but the pattern of growth is not job intensive. It is worrisome because we are not creating jobs,” said Rene E. Ofreneo, director of the Center for Labor Justice.

The economy grew by a hefty 7.1% in the third quarter, bringing year-to-date growth to 6.5%. The expansion was driven by the services sector and increased consumer and government spending.

“The challenge for the government is to translate the 7.1% … into job-creating growth,” Mr. Ofreneo said, adding that this should be “inclusive, balanced and sustainable.”

“It is not enough that the stock market and peso is gaining,” he said.

University of the Philippines economist Benjamin E. Diokno called the October results “a mixed bag”.

“The recently released labor statistics show the disconnect between the strong output growth and weak employment creation,” he claimed, noting that the unemployed grew by 120,000 while underemployment remained “practically constant.”

“Underemployment is highest in the agricultural sector at 44.3% and lowest in the industrial sector at 15.2%,” Mr. Diokno said.

Sergio R. Ortiz-Luis, Jr., honorary chairman of the Employers’ Confederation of the Philippines, said it would take some time for economic growth to “trickle down”. For strong economic performance to translate to growth, he said: “The government should focus on foreign direct investments rather than portfolio investments as this creates more job opportunities.”

A trade union official, meanwhile, called the lack of jobs a “failure.”

“Policy and program adjustments should be made by the government planners to translate economic growth into decent and sustainable jobs, hence, inclusive growth,” said Rafael E. Mapalo, director for education of the Trade Union Congress of the Philippines.

“The impressive GDP growth of 7.1% wouldn’t mean anything if unemployment continues to rise and poverty remains unabated. Failure to create sustainable and decent jobs, especially for the poor, despite economic growth is a failure just the same,” he added.

The employment rate went down to 93.2% in October from 93.6% the year before, equivalent to 37.7 million with jobs. Workers in the services sector accounted for the bulk at 52.6%. Agriculture sector workers accounted for 32.3%, while 15.2% worked in the industry sector.

Of the 63.3 million Filipinos aged 15 and above, 40.4 million were in the labor force. This figure translated to a labor force participation rate of 63.9%.

Cagayan Valley reported the highest employment rate of 97.6%, followed by the Zamboanga Peninsula at 96.6%. The National Capital Region, posted the lowest employment rate at 89.0%.

The government, for its part, welcomed the latest jobs data.

In a statement, Labor Secretary Rosalinda Dimapilis-Baldoz called the October result a “breakthrough in the country’s goal of decent and productive jobs.”

“It is better quality of employment, in terms of more secured jobs with more stable income,” she added. — Karen Joyce Q. Ang, Businessworld