Malacañang has vowed to step up job generation programs after the International Labor Organization (ILO) reportedly expressed concern about the country’s unemployment situation despite economic growth.
“The government places a very high priority on employment creation. This is one of the salient aspects of our economic program that seeks to attain inclusive growth,” Presidential Communications Operations Offices Secretary Herminio Coloma Jr. said in a Palace press briefing.
Coloma said the government aims to generate at least one million jobs a year under the Philippine Development Plan.
He said the Department of Labor and Employment (DOLE) has already laid down several programs to create jobs but admitted that “challenges remain.” “There are structural adjustments to be made, such as for example, the need to match available skills in the market with requirements of industry,” he said.
In a recent Global Employment Trends, the ILO reported that unemployment in the Philippines has remained around 7 percent in 2012 and 2013 despite the strong economic growth. It also noted that job growth has been “subdued” even though the local economy continued to grow.
ILO Director-General Guy Ryder said, “Despite robust economic growth in excess of 6.8 percent in the last two years, job growth has been subdued and the unemployment rate has remained at around 7 percent throughout 2012 and 2013.”
The ILO official also noted the declining quality of employment in developing countries, including the Philippines last year.
“In 2013, the number of workers in extreme poverty—living on less than $1.25 a day decline by only 2.7 percent globally, one of the lowest rates over the past decade, with the exception of the immediate crisis years,” Ryder said.
Ryder urged these concerned countries to implement reforms, which will generate more jobs, particularly for the youth sector, which comprise most of the world’s unemployed workers.
An estimated 74.5 million workers under the age of 25 are now unemployed.
Ryder attributed this to the restrictive policies in said countries such as reductions in public spending and hikes in income and consumption taxes continue to hinder job creation.
“What is urgently needed is policy re-think. Stronger efforts are needed to accelerate employment creation and to support enterprises that create jobs,” Ryder said.
“A switch to more employment-friendly policies and rising labor incomes would boost economic growth and job creation…it is crucial to strengthen social protection floors and promote transitions to formal employment,” he added.
Coloma recognized that unless sufficient jobs are created, it would be “more difficult” to attain the country’s economic growth targets. “That’s why government remains determined to pursue all possible avenues for maximizing job creation,” he said.
Coloma noted that the shortage in some occupations in the country should serve as a signal to Filipino professionals abroad to return to the country to fill the gap.
The labor department is currently studying the proposal of the industry to open 15 categories of highly-skilled occupations to possible foreign employment on account of shortages in local supply.

Source: Manila Bulletin - January 22, 2014