A PIDS policy note by Senior Research Fellow Jose Ramon G. Albert disaggregated employment data and gross domestic product (GDP) growth rates and showed that high economic growth rates in recent years were accompanied by increases in full-time employment. Part-time employment, meanwhile, went down with economic growth.
“Thus, the economy is not really having jobless growth!” the report noted. “In recent times, the small net changes in the unemployment rates are the result of full-time jobs being created in the industry and services sectors, and part-time jobs lost in the agriculture sector,” it added.
In recent years, the country has seen a resurgence in economic growth, posting a 6.6% full-year growth rate in 2012 and 7.2% in 2013. The government is targeting a economic growth of 6.5-7.5% this year.
The economy expanded by 5.6% in the first quarter and 6.4% in the second quarter, bringing the first-half average to 6%. Although this is lower than the 7.2% growth in the same period in 2013, Socioeconomic Planning chief Arsenio M. Balisacan is optimistic that the country will meet its growth target.
In his study, Mr. Albert likewise noted that for net unemployment rates to drop significantly in the short term, employment growth must occur in the agriculture sector.
“In the long run, employment should start shifting from agriculture to industry, the same path taken by many neighboring economies that are in better development conditions,” he added.
The report also noted that poverty incidence among the unemployed in the country is lower than the poverty incidence among the employed. “Unemployment is more of a middle-class issue. Many of the poor are not unemployed because they cannot afford not to engage in economic activities.”
“The majority of the unemployed in 2012 (81%) are not poor. They may be unemployed by choice or they may just be choosy in finding jobs,” the report said.
The report likewise showed that educational attainments of the unemployed are quite high.
It recommends that the government focus its efforts on further accelerating reforms to achieve inclusive and sustained growth. It adds, however, that the private sector is the main driver of the economy.
“Our taipans should practice employment policies that favor the hiring of more permanent workers rather than temporary ones,” it said.
“Wealthy businessmen should put their money into long-term productive investments... as the world starts crafting a post-2015 agenda that will ensure that no one -- poor or non-poor, male or female, Christian or Muslim, employed or unemployed -- is left behind in development.” -- B.C.P. Balaoing
source: Businessworld
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