Dole hopeful of more jobs, but labor groups uncertain

Labor Secretary Silvestre Bello III is optimistic about the economy generating more jobs, noting a decline in unemployment and underemployment rates.

Workers’ groups, however, find the employment landscape in the country — one year into the Duterte presidency — precarious.

“We now have higher employment rate, more rational and responsive wage levels. And while labor is more protected in terms of benefits and occupational safety, management and employers are given favorable business flexibility and investment recovery,” Bello said.

The latest survey by the Philippine Statistics Authority showed an unemployment rate of 5.7 percent in April, down from last year’s 6.1 percent.

Youth unemployment

Though the unemployment rate declined, it remained high for young people, or those between 15 and 24 years old. This age group comprises half of the unemployed.

Bello said the Department of Labor and Employment (Dole) was optimistic that youth unemployment would be strongly addressed, considering that several programs had already been enacted into law to increase the employability of the sector.

Another positive indicator in the labor force survey was the decline in the underemployment rate from 18.3 percent to 16.1 percent.

“This means improvement in the quality of employment as the number of underemployed [people] has decreased from 7.431 million in April 2016 to 6.468 million in April 2017,” Bello said.

He noted that the President’s Development Plan aimed to lower the unemployment rate between 3 and 5 percent by 2022.

But labor groups do not share Bello’s optimism.

“The employment situation remains very unstable because there are no new decent job-creating investments [due to] expensive cost and unreliable power, aging transport and logistic infrastructure, worsening traffic congestion, and high cost and bureaucratic system of doing business,” said Associated Labor Unions spokesperson Alan Tanjusay.

Julius Cainglet, Federation of Free Workers’ vice president for research, advocacy and partnerships, said decent work remained a challenge.

“Temporary, precarious work remains the norm as manufacturing continues to lag behind service and agriculture has not gotten the needed push to modernize,” he said.

Cainglet said only a significant increase in regular, decent jobs in the manufacturing sector could ease unemployment and underemployment in the country.

While the surge in infrastructure projects has been creating employment opportunities in construction and allied industries, the challenge was in keeping workers healthy and safe.

“That’s why it’s important to raise our occupational safety and health (OSH) standards and improve the labor inspection system,” Cainglet said.

“A new legislation on OSH and labor inspection is much needed. It could also serve as leverage to address child labor,” he added.

Living wages a dream

Cainglet said achieving living wage levels for workers remained a dream.

“Wage inequality is so rampant. It is even legal, no thanks to the regional wage setting mechanism. It is a clear case of workers not getting equal pay for work of equivalent value as wages are not determined by what you do, but where you do it,” he said.