3 groups need to work to address jobs issue — World Bank

Cherrie Regalado

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World Bank cites the Philippines' stellar economic growth and political stability as reasons for pushing reforms needed to create jobs

BETTER JOBS. A sea of applicants submit their resumes in the hopes of getting hired. Photo by AFP

MANILA, Philippines – Citing the country’s stellar economic growth and political stability, the World Bank said implementing reforms needed to address lack of jobs in the country is now. 

READ: PH unemployment rises to 7.3% in July

“The elements working for the Philippines are now well in place: strong economic fundamentals that are yielding impressive growth rates, political stability and a popular president seen by most Filipinos as committed to good governance and eliminating poverty,” World Bank noted.

In a report released Friday, September 13, the multilateral bank recommended the creation of a tri-partite coalition composed of the government, business and labor groups.

The coalition, World Bank said, should create a reform agenda that will improve the unemployment and underemployment in the country.

A total of 14.6 million jobs are needed in the next 4 years, the multi-lateral bank noted.

READ: Philippines needs to create 14-M jobs till 2016

Of the total 10 million jobseekers, 3 million were unemployed while 7 million were underemployed  in 2012, the agency added. 

Agriculture, manufacturing revival

Among the reforms needed, the tri-partite coalition should include reforms that support the revival of the agriculture and manufacturing sectors.

The bank said development of agriculture and manufacturing should be a priority since ¾ of the poor are found in the rural areas with the agricultural sector employing most of the poor.

 “Agriculture and labor-intensive manufacturing, these are the 2 sectors and this is the experience of all countries that were poor and have grown rich. These are the 2 sectors that can provide jobs to the poor,” Senior country economist  for the Philippines Karl Chua said in a briefing.

Both sectors, the agency noted, can benefit  from the development of infrastructure in the countryside.

 “Provide workers in agriculture and informal services with better jobs in manufacturing, and increase real household income through lower consumer prices, “ World Bank noted.

More investments in countryside infrastructure will also bring investments, Chua said.

“We talked to so many business people and they’re just waiting for government to set up the enabling things to come in, “ he added.

Jobless growth to continue

By 2016, 12.4 million Filipinos will remain unemployed, underemployed or have to work in the informal sector, the World Bank said.

“You have systemic underemployment and unemployment over the years, and this has been on going in the last 40 years,” Chua noted.

The agency said accelerating inclusive growth —growth that  creates jobs which reduces poverty — has yet to be achieved.

Former Socioeconomic Planning Secretary Cayetano Paderangga said unemployment will not be addressed immediately.

“We expect employment  to improve but not as fast as our countrymen would hope, “ Paderangga told Rappler, echoing sentiments other current officials have expressed.

READ: Jobless growth? It will take time, says NEDA chief

Despite  better than expected economic growth, jobs in the country, he noted could remain insufficient for the growing labor force.

“When there is (economic) recovery the first impact would be on businesses — they start earning higher income but there is a lag before it goes into increased employment, and later on (personal) income and  wages,” Paderangga explained.

Stop gap

With government’s efforts to shift from largely being an agriculture dependent country to a more industrialized economy, he said  workers in the agriculture would eventually lose their jobs.

“When the benefits of industrialization spill over to agriculture then agriculture  becomes more productive. For food, after a while you will need less people  to produce for the economy so you will need less people there,” Paderangga explained.

Other industries like manufacturing, he said, should be able to absorb workers that will be left jobless.

Echoing the recommendations of World Bank, Paderangga noted that investments in infracture should be hastened to attract more investors in the manufacturing sector.

“Once we complete the infrastructure support, at least the basic ones like good roads some level of airports and sea airports, then our businessmen will know what manufacturing businesses they could come into, “ he added. – Rappler.com

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