PHILIPPINES STRUGGLES WITH UNEMPLOYMENT

DESPITE ECONOMIC GROWTH:

(By Felipe Salvosa)

A REACTION PAPER

A Reaction Paper Submitted to:

Prof. Gladys Florangel I. Ortiz
In Compliance with the Requirement for
GM 205
Development Perspective

Submitted by:
Amelia C. Bibera
MSERM
November 28, 2015

PHILIPPINES STRUGGLES WITH UNEMPLOYMENT

DESPITE ECONOMIC GROWTH
(by Felipe Salvosa)

A REACTION PAPER

Motoo Konishi, World Bank Country Director for the Philippines opined that
The Philippines is no longer the sick man of Asia, but a rising tiger. 1 The statement
refers to the fast growing economy of the Philippines. The truth of our rising
economy is echoed in the article of Mr. Felipe Salvosa in the Emerging Markets

dated September 1, 2015 which is the subject of this Reaction Paper.

In fact Mr. Salvosa described the growth not just a mere growth but a rapid
economic growth. Mr. Salvosa, a Philippine Researcher at Financial Times
Confidential Research with eleven (11) years and eight (8) months as reporter, editor
and reaserach head of BusinessWorld Publishing Corporation, has a lot of
experience and exposure to back up his statement. Yet, worthy to note is the fact
that he juxtaposed a rapid economic growth with the highest rate of unemployment
in the Asean Region.
Mr. Salvosa points out that one reason for the disparity is that job creation has
struggled to keep pace with an ever-expanding population. Another factor is that
participation in the labor force remains relatively low because of the high values set
on further education in the Philippines as well as the low quality of jobs available.
In my opinion, there is indeed a painful truth in the article, that is, there is a
wide chasm between the rising economy and the corresponding rising rates of
unemployment.
1 Will the Philippines Finally Become an Asian Tiger Economy?, Philnews.com
Uniting the Global Filipino. http://www.philnews.com/2013/02a.htm
2 http://www.ft.com/cms/s/3/a381f48c-4bf9-11e5-b5588a9722977189.html#axzz3sleFsvn7

The Philippine population as of July 27, 2014 had reached more than 100
million3 and it is continuing to rise. Despite the continued pouring in of investment in
the country, such as Atlanta-based The Coca Cola Co. Which is investing $ 1.2
billion up to 2020 to expand its facilities and beef up distribution and operations 4;
independent oil player

PTT Philippines is pouring in P 450-million worth of

investment this year5, the Japanese, the Dutch and other investors investing in the
Philippines, the rate of unemployment is still at 6.4% making us the highest in Asia
because these investors would only generate a few jobs.
From my point of view, realistically speaking, it would really be next to impossibility
to create millions of jobs to cater to the million populace. Take into account the
number of graduates we have every year. Last year alone, data from CHED shows
that 553,706 college students graduated 6. There can never be a one to one matching
of graduates and job opportunities. If every year, half a million students graduate,
then every year, half a million jobs must be generated. No such scenario happens or
is about to happen.
Because of the scarcity of jobs, the competition, nowadays, has become tougher,
thus

more

and

more

graduates

take

further

studies

such

as

Masters

Degree/Doctorate Degree or a second course. This is one of the reasons why there
3 100 hundred million". ALFREDOPALCONIT. Retrieved 25 October 2014
4 PhilStar, August 20, 2015, Coca-Cola Pouring in Addtional $ 1.2 B in the
Philippines by Richmond S. Mercurio,
http://www.philstar.com/business/2015/08/20/1489923/coca-cola-pouringadditional-1.2-b-philippines
5 The Manila Times, May 27, 2015, PTT Philippines Pouring in P 450 Millio for
Expansion by Ritchie A. Horario, http://www.manilatimes.net/ptt-philippinespouring-in-p450m-for-expansion/186963/
6 PhilStar, March 26, 2014, 553,706 College Students to Graduate by Helen
Flores http://www.philstar.com:8080/headlines/2014/03/26/1305213/553706college-students-graduate

is a low participation rate in the labour market. Flipinos tend to spend more time in
the university to have a better prospect of landing a good paying job.
However, there are still those, who despite being equiped with all the
necessary credentials, still have not landed a job. Hence, because of the necessity
of earning money to support the family, they would settle for underemployment or
accept jobs with lesser qualification standards with lesser renumeration. Some also
have opted to seek their fate in other countries disregarding loneliness,
homesickness and the possibility of meeting harsh employers or even death.
One solution mentioned in the article is ramping up employment in the
manufacturing but this is also hindered by issues such as demand for higher wages,
limited infrastructure and red tape. Manufacturing industry, although it generates a lot
of jobs, would mostly cater to the Class D and E with meager number catering to the
A, B and C.
In sum, yes, we are growing economy wise but so is our population and the
end result is a higher rate of unemployment.
CONCLUSION
Basic is the fact that Filipinos are known for being industrious and
hardworking. This innate nature of ours are stunted because we are not given the
opportunity to shine.
If only all Filipinos will have the mentality of the Chinese, who send their
children to school not to be gainfully employed but to manage the family business. If
only those working overseas would save more so that they can put up a business
thereby employing other Filipinos. If only one out of ten Filipinos would put up a
business that can employ at least 5 Filipinos, hence leaving only 4 Filipinos seeking
jobs in the market. If only industries such as mining would be allowed to fully operate
without being a source of grease money for some corrupt officials. All this would
lessen the unemployment and even further increase the economic growth of the
Philippines. But as I have stated.... IF ONLY.....