11 million Pinoys to lose their jobs in 1st Quarter 2009

Estimates made by the Ibon Foundation show that eleven million Filipino workers will probably lose their jobs this year. Add this to the 10.7million Filipinos walking like ghosts and have lost their shirts last year. That's a whooping 23 million jobless Pinoys needing government assistance.

Labor groups are now worried that this figure might probably increase due to reports that export companies are closing shop one after the other. Some banks have also reported quarter losses. Manufacturing firms, particularly garments factories have cut down on production. Many service establishments have also intimated a desire to temporarily decrease the number of their workers due to the tremendous financial stresses they are experiencing.

Question---is the economy able and strong enough to absorb this? A higher unemployment rate will simply decrease the attraction of the Philippines as an investment site since it shows how weak economic performance is. Likewise, how will these multitudes survive the onslaught of a full global recession? Singapore, for example, has already entered the worst recession in decades and they are really clueless as to how to support their citizens. Japan, China and Korea are now on the verge of economic collapse and are expected to declare recessions.

Question number 2---how strong or weak is the economy? Latest figures from the National Economic Development Authority (NEDA) shows that first quarter economic figures in 2009 could reach a negative or at best, one percent growth. So, contrary to government pronouncements, the Philippine economy is actually in worse shape. Arroyo has been bragging that we can survive this global recession but in truth, and in fact, we are now losing the game and at an early stage at that!

A stimulus package is being prepared but many sectors worry that this plan is just a pre-election budget meant to buttress local government and grassroots support for the administration bet come 2010. The economy really needs a stimulus plan. But the problem right now is even this stimulus plan is being politicized by the very same people we repose trust on and we elected as our government administrators.

These political maneuverings in the midst of a devastating economic crisis could really create a solid groundswell of dissent that could explode before the faces of Mrs. Arroyo and her gang of thieves this year.