PHL paradox: Economic growth coupled with increasing joblessness

It appears to be a paradox. The Philippine economy is growing, but so are the unemployed.

Social Weather Stations (SWS) data shows an increase in the number of unemployed in the country by 1 million between December 2012 to March 2013, a mere four months.

The Palace says the increase in the number of jobless in that period is normal because many of the jobs offered last December were seasonal, such as the extra workers hired to serve holiday customers.

Government planners, however, have acknowledged that unemployment is a major weakness of the economy and vow to make it a priority.

The growth of the economy has been spurred by renewed confidence in the Philippines and the way it is being governed. But critics have pointed out that the cash flowing into the country has not been moving into sectors, such as agriculture and manufacturing, that can generate the volume of jobs necessary to make a dent in the high joblessness.

A comparison between December 2012 and March 2013 data showed that:
10.1 million Filipinos were unemployed in December last year; unemployment rate was at 24.6 percent; 11.11 million Filipinos were unemployed in March this year and the unemployment rate was 25.4 percent.

However, optimism even among the jobless seems to be growing. SWS survey results show that the number of people who believe they will land a job in the next 12 months increased from 32 to 34 percent in the same period.

Presidential Spokesman Edwin Lacierda said the administration is focusing on long-term jobs to resolve this issue.

“We are in fact creating jobs in the three areas which we have emphasized: tourism, agriculture and infrastracture,” Lacierda said. “We want to make sure that we have more jobs to create more employment for our people. That’s a thrust and commitment from this government,” he added.

Call center agents still wanted

Among the top job vacancies in the Philippines are those for salesmen, service crews, factory workers, cashiers, domestic helpers, production machine coordinators, waiters, janitors, and security guards.

However, the most in-demand job is for call center agents, according to the Department of Labor and Employment (DOLE).

There are currently over half a million Filipinos working in the call center industry and projections show that this number may double in two years.

“It’s a dictate of the market. It’s what they want. Supply and demand kasi sa labor market,” DOLE spokesman Nicon Fameronag explained.

However, the demand in the call center industry is not easy to fill since only one of 10 applicants passes the screening tests.

Meanwhile, the senior executive director of Business Process Association of the Philippines (BPAP) said the hospitality of Filipinos plays a major role in the growth of the BPO industry in the country.

“Malaking demand from overseas because globally our call center agents are the best in the world. The Filipino is very adaptable, is very respectful [and] very patient,” Gillian Joyce Virata said. “[Also] many of our students are graduates, qualified but lack practice in business communication.”

This is why the P350 million training program fund for “near hires” provided to the Technical Education and Skills Development Authority will be a big help to Filipinos trying to secure jobs.

Seven years in the industry

In a TV news report, GMA News reporter Claire Delfin spoke to two call center agents who have been working in the BPO industry for seven years.

Billy Buenaventura said that he decided not to seek greener pastures abroad upon entering the industry since promotions were fast.

“You can just settle down here in the Philippines without considering going abroad, so mabilis ang promotion,” Buenaventura said.

Carlo Saracho, on the other hand, explained that there are a lot of perks to being a call center agent.

“Conversation wise, you’ll grow. Plus yung confidence mo in presenting yourself [will be better],” Saracho said.

The average salary of an entry level call center agent ranges from P15,000 to P18,000 with quick promotions and bonuses not easily found in other industries.

However, the Ibon Foundation has said that even with the best growth projections, the BPO industry cannot create the number of jobs needed to absorb the vast unemployed, especially in rural areas and small towns. – Andrei Medina, KDM/VVP/HS, GMA News