Aquino, Paolo Angelo P.

UNEMPLOYMENT
The official unemployment figures for the Philippines in 2013 are among the worst in Asia, higher than its South-East Asian neighbors and according to the International Labor Organization the country is among the worst onefourth in the world in terms of unemployment rates. Without a strong manufacturing industry or real Filipino industry, the economy will be unable to create enough decent paying jobs. Until then manufacturing or services will remain substandard, or of low value-addition. According to employment figures, jobs in the Philippines manufacturing sector increased by just 8% of the total employment. Nearly three out of every ten people in the labor force are looking for work or are jobless. The mining sub-sector said to be one of the fastest growing industry in 2012 failed to generate new jobs (just 0.6 % of total employment). Steadily rising inflation has contributed to the erosion of the value of the minimum wage. Though the Aquino administration increased the minimum wage and announced cash dole-outs but lack of quality decent paying jobs and higher real wages continue to be a problem. The government's policy to encourage foreign capital, even if in just low value-added assembly operations will continue to hinder real growth and development of the manufacturing sector. The Aquino administration needs to plan over the longterm, and prepare an industrialization program that encourages value-addition manufacturing or services and builds Filipino-owned industries. The more probable cause of unemployment in the Philippines is the unavailability of jobs provided. With a growing population of about a 8 million, millions needed jobs and only few can sure provide one. The lack of investors and businesses that could provide good jobs for the Filipino people is one key factor in the growing unemployment in the Philippines. But probably, one cause of unemployment in the Philippines may be lack of education. With the increasing demands of the fast developing world, it is really hard to find jobs when you are not a graduate of a particular skill or course. Though the Philippines is a literate country, its not enough to be able to reach the qualifications of most in-demand jobs because even mere sales ladies nowadays are required to have at least 1-2 years in college. We are facing a competitive world and its a must to reach the norms of development. Thus, a high educational attainment, which most Filipinos lack, is one way to uplift the unemployment rate of the country. Arroyos Plan President Gloria Arroyos administration has responded by shifting the burden onto working people. Labour regulations are set to be relaxed to allow for unpaid overtime and a compressed work week. Nearly half the workforce

is employed in the so-called informal sector where workers are not even protected by the countrys weak labour code and regulations and receive less than the minimum legal wage. As the economy sinks further and unemployment continues to grow, a social explosion is building up as working people find it increasingly impossible to make ends meet. Aquinos Plan President Benigno Aquino has promised to cut unemployment to 6 percent at most by the end of his term in 2016. Proposals include easing curbs on foreign investment, boosting tourism and infrastructure to provide more work outside the capital, and expanding farming and fishing, said Economic Planning Secretary Arsenio Balisacan, whos in charge of the plan . Jobs are now the biggest priority of the government, Balisacan said in an April 29 interview. We are using all resources to create jobs as fast as we can. The Philippines attracts the least foreign direct investment in Southeast Asia, according to the World Bank. Thats in part because contract disputes and regulatory reversals in the past led companies, including Frankfurt, Germany-based Fraport AG, to leave the country. Fraport stopped work on an almost-completed airport terminal building in 2002 and later sought compensation after having its contract nullified by the Supreme Court. The low investment share is because past economic growth has depended more on services that are less capital intensive than industry, said Norio Usui, senior country economist for the Philippines at the Asian Development Bank in Manila. The Philippines biggest need is to generate productive job opportunities for the growing working-age population.