The country’s young labor force should be tapped in order to sustain the country’s economic growth in the country said a senior bank economist.
Speaking at the Cebu Business Month Economic Forum yesterday, Patrick Ella, a senior manager and economist of Security Bank said the country’s young labor force could be the country’s strategic advantage if it wants to sustain the 7.8 Gross Domestic Production (GDP) growth in the first quarter of 2013.
In Manila, the National Statistics Office (NSO) announced that jobless figures in April 2013, just a month after the country registered the highest aggregate economic growth in Asia, is the highest in three years at 7.5 percent.
Ella said that Filipinos in the working age of 25 to 50 are outnumbering those aged 15 and below and will comprise more than half of the population in 2015.
“For the next decades up to 2050, our demographics will pay a huge dividend due to our rapid young labor force growth,” he said.
According to Ella, Cebu will benefit from the demographic shift since it will continue to fuel future demands in infrastructure and consumer goods and services sector.
Ella described the country’s economy as “very resilient because of its sound fundamentals,” with buffers in place due to the rise of business processes and outsourcing (BPO) companies.
He credited the country’s GDP growth to the solid public and private infrastructure spending, the largest ever in years.
He said the May elections also contributed to the sound economy and added that the GDP surge always follows in years where a national vote happens.
“Our OFW remittances remain buoyant despite the global economic slowdown felt all around the world, said Ella.
In his opening speech at the forum entitled “Impact of Investment Grade in the Local Economy, former CCCI president Prudencio Gesta said investors now feel confident in investing in the country.
He said the challenge now is for businessmen and the government to work together to address the other areas in the economy for sustainable growth.
The Philippines real GDP famously outpaced all the larger economies in Asia, including China in the first quarter of 2013.
Jobless growth
The Philippines’ jobless rate soared to a three-year high in April even though the nation has the fastest-growing economy in Asia, official data released yesterday showed.
“The high unemployment rate casts doubts on the robustness and inclusiveness of recent growth statistics,” University of the Philippines economics professor Benjamin Diokno, a former budget secretary said.
The unemployment rate in April was up from 7.1 percent in January. Another 19.2 percent were listed as “underemployed”, or part-timers who work for less than 40 hours a week.
To speed up job creation, the government must address issues that deter businesses from investing in the manufacturing and industrial sectors, such as high electricity rates, said Astro del Castillo of the securities firm First Grade Finance.
Diokno also cautioned that official data underestimated the true jobless picture, since it only included those actively looking for work but not those who had stopped trying./Peter L. Romanillos and Inquirer