Loss of 1.4-M jobs highlights need for stronger local agri, industry — think tank
MANILA, Philippines — The IBON Foundation research group expresses concern over the decline in employed individuals and labor force participants over the past 12 months — a phenomenon which they see as indicative of a discouraged Filipino working class.
The observation stemmed from the Philippine Statistics Authority's latest Labor Force Survey, showing a 1.41 million decrease of employed individuals from 47.35 million (January 2023) to only 45.94 million (January 2024).
Along this was the contraction of the labor force by 1.6 million in the same time period, from last year's 49.73 million to this year's 48.09 million. Those classified as "not in the labor force" also increased by a whopping 3.2 million to around 30.6 million.
"[T]o arrest the jobs crisis and for the economy to create gainful jobs, government should focus on the development of domestic agriculture and Filipino industries, instead of enticing the narrow profit-seeking interests of foreign investors," said the economic think tank on Saturday.
"IBON also observed that a significant number of job losses were mainly in informal work. Self-employed persons fell by one million to 11.8 million, while unpaid family workers fell by 1.7 million to 2.1 million."
While the number of unemployed decreased by 228,000 to 2.2 million from 2.4 million, the researchers noted that this is likely due to unemployed Filipinos leaving the labor force and no longer being counted among the officially unemployed.
Underemployed individuals decreased by 260,000 to 6.4 million. The labor force, according to the PSA, only accounts for those who are employed or unemployed.
However, both the unemployed individuals and unemployment rate increased if the December 2023 data is to be compared with the January 2024 data: from 1.6 million (3.1%) to 2.16 million (4.5%).
The same could be said about the December to January underemployment: from 6.01 million (11.9%) to 6.39 million (13.9%).
IBON also noted that employment in the manufacturing sector decreased by 151,000 to 3.5 million. Taken together with the job losses in agriculture, the researchers said that "poor job creation in these production sectors shows how weak the Philippine economy is."
"To generate sustainable and decent employment, government should direct resources and support into boosting domestic agriculture and industries that serve and produce the Filipino people’s needs, instead of simply relying on imports and foreign investments," they continued.
"[D]ecades of government obsession with foreign investment liberalization have not delivered on the promised benefits for the poor and vulnerable Filipinos. Such obsession is actually stunting national development."
The rise in December to January unemployment and underemployment comes as increases in prices of goods quickened its pace to 3.4%, mainly due to food and non-alcoholic beverages.
Alongside this came a 15-year high in rice inflation amid President Ferdinand Marcos Jr.'s election promise of lowering its cost to P20/kilo.
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