Gov’t expects lower jobless rate this year

The National Government has expressed confidence that the unemployment rate will decline in 2006.

Socioeconomic Planning Secretary and National Economic and Development Authority (NEDA) director general Augusto B. Santos said the optimism is hinged on the bullish outlook for the agriculture sector.

"This year will not be an El Niño year, so farm output should be back to normal," Santos said.

The unemployment rate was recorded at 10.3 percent in 2005.

Meanwhile, call center jobs are expected to grow by 60 percent this year. The property sector is also experiencing a "boom" fueled by strong inflow from overseas Filipino workers and call centers demanding more office space.

"For the first three quarters of last year, the average growth in real estate was 13.4 percent. That spending should stir private construction," Santos said.

Santos emphasized that tourism, on the other hand, is surging and is expected to generate more jobs due to its very nature as a service-oriented sector.

Tourist arrivals are at an all-time high, and we project three million visitors in 2006," he said. Mining is on the rise as well. Investments in mining equipment rose by 177 percent in the second quarter of 2005.

Santos, said stressed that the government has embarked on vital fiscal reforms to generate the resources needed to fuel job growth over the medium term.

"This year, fully 30 percent of the incremental revenue from expanded value-added tax (E-VAT) will be used for capital spending. We have also scheduled massive infrastructure projects in 2006, promoting growth in north and south of Metro Manila," the NEDA chief said.

He added that this would provide employment in the construction sector, while the government channels much funding support to small and medium enterprises (SMEs).

"These SMEs are normally labor-intensive, thus adding to the job total," said Santos. The drop in exports last year, he explained, was due to the downturn in the global demand for electronics.