Higher unemployment threatens RP due to US slowdown – ILO

The worst is yet to come for Filipino workers.

The International Labor Organization (ILO) yesterday warned of higher unemployment in the Philippines and other countries due to the prevailing economic slowdown in the United States.

ILO director general Juan Somavia said economic turbulence due to credit market turmoil and rising oil prices may likely push the unemployment level in countries worldwide, including the Philippines.

“The new projection for 2008 is in contrast to 2007, a watershed year in which sound global Gross Domestic Product (GDP) growth led to the stabilization of global labor market with more people in work and fewer unemployed,” Somavia said.

The ILO called on governments in Southeast Asia and the Pacific to implement social protection schemes and social safety nets to address the looming displacement of workers.

In the ILO’s annual Global Employment Trends (GET) report, Somavia said the projection for 2008 is “one of contrast and uncertainty.”

“While global growth is annually producing millions of new jobs, unemployment remains unacceptably high and may go to levels not seen before this year,” Somavia disclosed.

“Though more people are in work than ever before, this does not mean that these jobs are decent. Too many people, if not unemployed, remain among the ranks of the working poor, the vulnerable and the discouraged,” he added.

ILO said that for the past years, the Philippines, Cambodia and Vietnam have shown promising development due to good performance of the agricultural sector.

But ILO said the development in Southeast Asia and the Pacific, including the Philippines, has been less impressive.

While the unemployment rates in the region are comparably low in recent years, ILO said the unemployment trend among women continues to rise.

ILO noted that labor productivity growth in the region in the past year was also stagnant and much lower than in other Asian regions.

The Philippines and other countries in South Asia and the Pacific still need decent jobs, the ILO said.

Strong global demand

But in terms of the global demand for Filipino workers, a labor official gave assurance that it would remain strong despite fears of a US recession.

Many foreign countries, particularly developed countries, are still approaching the Philippines wanting to recruit Filipino workers, particularly skilled laborers and professionals, said Rosalinda Baldoz, administrator of the Philippine Overseas Employment Administration (POEA).

“Foreign employers come to us because they are short of skilled workers and their nationals refuse to handle the dirty, dangerous and difficult jobs,” Baldoz told local reporters.

Even in the US, where there are fears of a looming recession, Baldoz said they see a growing demand for temporary workers in hotels as well as nurses.

Middle Eastern countries also need thousands of foreign workers due to heightened economic activity there, she added.

Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Bahrain and Oman will offer job opportunities in the construction, medical, retail, energy engineers and planners, telecommunications, hotel and restaurant and the information technology sectors, she said.

East Asia, South Korea, Taiwan, Singapore, Brunei and Malaysia will continue to hire Filipinos for the construction and ship building sectors, factory workers, IT and healthcare, managers and supervisors for the gaming industry.

Nurses, architects, entertainers, engineers and draftsmen would also be in demand, she added.

Australia and New Zealand also have a strong demand for construction workers, health, IT professionals and skilled workers in trade, hotel, restaurants as well as teachers.

Last year, a total of 1.073 million Filipinos went overseas for work compared to 1.062 million that went overseas in 2006, Baldoz said.

The government is confident that more than a million workers will go abroad this year as well.

Banking on tourism

Philippine tourism, meanwhile, would continue to boom despite the US economic downturn, Tourism Secretary Joseph Ace Durano said.

“For the past three years, the country’s tourism industry has been facing those challenges and year 2008 is no different. We have managed those challenges and the proof of that is the high international arrivals,” Durano said.

He further pointed out that US comprises only 18 percent of the total international arrivals and any slowdown would be compensated by the European and other markets.

“The worst-case scenario is zero growth for the US market but that’s still 500,000 American tourists for the Philippines,” Durano pointed out.

He said the DOT remains firm in its target of 300,000 additional foreign tourists and $1 billion more earnings for the local tourism industry in year 2008. – Mayen Jaymalin