The National Economic and Development Authority (NEDA) has underscored the need for creating more jobs that requires a multi-pronged multi-stakeholder approach to reduce unemployment.
Socio-economic Planning Secretary Arsenio Balisacan explained that the unemployment problem is due to the slow rate of increase of employment opportunities, low employability of new job entrants, and slow recovery of firms and businesses that have been affected by calamities.
Addressing the first problem, the slow rate of increase of employment opportunities, requires nothing less than rapid, sustained investment growth, both from the public and private sectors, said Balisacan.
"We aim to anchor public investment to areas and programs that would improve the investment climate for private investors. Our strategic framework envisions the public sector as provider of enabling conditions for the private sector to invest in productive sectors, thereby creating decent and remunerative employment opportunities for the rapidly growing labor force."
High and sustained investment growth will mean rapid and sustained economic growth. Macroeconomic stability will still be the major strategy to fuel positive expectations, said Balisacan.
He pointed out that the government will continue to exercise fiscal prudence. "We will strive to maintain, if not improve, our credit ratings so that business and employers could enjoy a lower cost of capital."
"To boost the competitiveness of our productive sectors, we are investing heavily in infrastructure, human capital and governance. In infrastructure development, especially those involving public-private partnerships, the pace of implementation has been slower than desired."
Balisacan expects faster implementation of the key infrastructure programs in the remaining years of this administration. The Aquino Administration is strongly committed to building a strong foundation for a competitive economy.
NEDA is also proposing measures to encourage innovations to sustain growth. A major part of the research and development work would still be initiated by government.
Investments in human capital will also address the problem of low employability among new job entrants. "We are also increasing investments in technical education while encouraging higher education institutions to partner with business and employers to ensure relevance of their program offerings. A strategy that can be rolled out immediately is to enhance the government internship program, whereby interns are taught skills and work values."
Balisacan said linking agricultural workers to the supply chain will increase effective demand for agricultural output. "However, we are aware that the agriculture sector will need to improve the quality and increase the quantity of its output. Government can facilitate the linkage but we are hoping that the business sector can take on a huge role in this, perhaps through technology, additional training, and equipment.
He stressed that good governance will continue to be the platform to implement the strategies.

Source: Manila Bulletin - May 28, 2013