Tuesday, June 11, 2013

Joblessness soars despite economic growth

The National Statistics Office revealed that unemployment went up to 7.5% this year, the highest in three years. This despite the economy peaking up to 7.8%, even higher than China's.

Some might say that this does not add up. If the economy is improving, surely there must be additional jobs being generated right? In the Philippine case, this is entirely expected.

The lack of jobs reflects how investors see the economic boom here in the Philippines---this is just a 6 year thing and might as well reap the economic benefits now and think very hard if these gains will still be re-invested.

I do not believe the yarn being peddled by government that this unemployment is caused by job mismatches. This "phenomenon" if you will is the effects of companies not investing in the future of this country, period. Businessmen are keeping their gains very close to their chests. They are not plurking these monies back into the economy in terms of jobs, infrastructure etc. And since most of those gaining billions of pesos from the economy are multinational companies, these funds go out of this country and into the hands of greedy foreign investors.

I don't blame businessmen for thinking this way. Credit that to the way we manage our affairs--there is no continuity in governmental policies. This economy performs well now because the government wants to. This economy is not as strong as we think it is because its fate is inextricably linked with politics.

A greedy government means an uneven playing field. An honest government sees a very healthy and robust economy.

Really now, we need consistency in our economic policies and leave the economy alone. Problems arise when politicians go to extreme lengths being businessmen and businessmen entering politics. These kinds of arrangements affect the economic future of this country and has a direct effect on the lives of ordinary folks.