For Asia’s second best performing economy, jobless growth continues to be a challenge. A survey conducted in mid-December last year by pollster Social Weather Stations Inc. showed that the ranks of the nation’s unemployed rose to 27.5 percent in the last three months of 2013 from 21.7 percent in the third quarter. That translates into an increase of about 2.5 million in the number of unemployed Filipinos, according to SWS.
Labor officials usually question the accuracy of surveys when it comes to measuring certain factors such as the number of unemployed and underemployed or the poverty rate. But survey figures on the job situation, based on self-assessments by respondents, often turn out to be close to the results of official studies conducted by the National Statistics Office.
The results also reflect what even government officials have acknowledged, that economic growth has not translated into meaningful jobs and has not been inclusive. The lack of jobs is also indicated in the continuing exodus of Filipino talent for better employment opportunities abroad. In recent years, the country has lost not only doctors, nurses and skilled workers to countries where the pay is much higher, but also experienced weather forecasters, engineers and aerobridge operators.
Joblessness is linked to the low level of foreign direct investment, which in turn is largely due to the difficulty of doing business in this country and overall weak competitiveness. In the past decades, the Philippines has been left behind by many of its neighbors as an investment destination.
There are many other developing countries vying for job-generating investments. In numerous studies, several of them updated regularly, business groups have pointed out the disincentives in this country. These include red tape and complex regulations, weak rule of law and regulatory environment, poor infrastructure, corruption, ownership restrictions, the existence of monopolies and oligopolies, and the highest power cost in Asia.
The Philippines has its strengths, starting with its human resources, but has been slow in addressing its weaknesses. On the other hand, more competitive economies have identified their problem areas and moved decisively to correct the defects. They have reaped the rewards of doing their homework.
Today the Philippines continues to lose even its most precious resource, its workers. If the government is concerned about rising unemployment, it must create a better environment for job-generating investments.