A labor group is demanding a better public employment program (PEP) under the proposed 2021 budget, as the Department of Labor and Employment’s (DOLE) emergency work program has failed to address unemployment during the pandemic.

In a statement, Nagkaisa Labor Coalition believed that a better PEP is effective in addressing unemployment and poverty, citing countries like India and South Africa.

According to the latest labor force survey, unemployment eased to 10% in July, as the country opened up the economy under the general community quarantine. Still, the figure is almost twice the 5.3% unemployment rate last January.

“A more aggressive PEP and support for struggling firms – especially MSMEs (micro, small, and medium enterprises) – we believe, is the bold and necessary action the government must undertake to address massive job displacement, recover lost jobs, and create new employment opportunities based on defined social needs,” the coalition of labor groups and unions said.

Nagkaisa said that Tupad did not significantly address unemployment during the pandemic.

In India, the 2005 Mahatma Gandhi National Rural Employment Guarantee law mandates state governments to hire workers for at least 100 days of minimum wage work. New Delhi is eyeing to expand this scheme to cover urban areas.

Meanwhile, DOLE’s TUPAD or Tulong Panghanapbuhay sa Ating Disadvantaged/Displaced Workers was activated as part of the government’s response for temporary employment during the lockdown. DOLE provided minimum wage jobs, such as disinfection in barangays, for 10 days.

In general, TUPAD can provide minimum wage jobs up to 30 days.

“We demand that a more elaborate TUPAD, or a new adequately funded PEP that is attuned to new social tasks or imperatives be rolled out under the 2021 budget and the process in making this happen be made participatory,” Nagkaisa said.

DOLE’s proposed 2021 budget amounted to P15.58 billion, bulk of which has been earmarked for the livelihood and emergency employment program at P11.14 billion. In 2020, the program has appropriations worth P7.93 billion.

Under the special provision on DOLE’s 2021 budget, at least P9.94 billion should go to TUPAD and the government internship program. The proposed amount can still be changed during congressional budget deliberations.

For businesses, the government is eyeing to provide loan facilities through capital infusion to government financial institutions under the pending Bayanihan 2 bill, instead of providing financial aid. There are no funds for the Social Security System’s Small Business Wage Subsidy program in the proposed 2021 budget.

The Philippines is in recession, following one of the strictest and longest lockdowns in the world. – Rappler.com

Coleen Ruth Abiog is a Rappler intern. She studies journalism at the University of Santo Tomas.