The Philippine unemployment rate jumped to 7.7% this January, up from 6.8% in October. That's substantial. More than 40,000 people lost their jobs at the start of the year, mainly from the manufacturing sector.
Government's official line is---job mismatch.
Government is blaming the education sector for not producing enough graduates to fill in current manpower or pooling requirements of companies. So, government has now found a very convenient excuse to put or redirect the blame for its inability to create a nice job environment.
Blame it to the schools. And, in all honesty, government might be right.
Majority of courses being offered right now are in the health sector. Thousands apply to become nurses or medical therapists instead of practical skills courses. For example, many companies need plummers, miners and welders. There's a scarcity of these people because everyone's either jumping to the mariner's job or trying to become nurses.
Yet, government must at least admit one thing---our economic performance is turning dismal. Our business environment is losing its bullishness. Many foreign companies are thinking twice of investing here due to bureaucratic red tape and graft and corruption. Imagine, you're a foreign investor and one Cabinet secretary approaches you and tells you straight in your face that you can't do business here without giving him 2 million pesos?! Philippine star Jarius Bondoc just wrote about it a few days ago.
Showing posts with label philippine unemployment rate. Show all posts
Showing posts with label philippine unemployment rate. Show all posts
Tuesday, March 17, 2009
Wednesday, March 11, 2009
Social disruptions
Mrs. Arroyo just rejected the proposal of the Trade Union Congress of the Philippines (TUCP) for the State to extend assistance to more than 40,000 workers displaced by the global financial crisis. The TUCP said that government just needs 2 billion pesos for this to work. However, at the same time as TUCP, one of Arroyo's allies in the business sector, Donald Dee, proposed that why not just allot the money as loan to small and medium sized companies. That way, companies will manage to stay afloat and weather the financial storm.
All are good suggestions. Yet, what Arroyo probably did not take into account is the potentialities of this growing unemployed mass of people turning into a noisy mob.
We all know how hard it is right now to survive this raging scourge. A thousand (in this case, 40,000) additional unemployed people means thousands more families are going hungry or even homeless due to this. They need immediate assistance to survive.
These people are what the TUCP are most concerned about since the unemployment numbers will definitely rise as the economy goes on the second quarter. The lackluster economic performance this first quarter shows with a dismal drop in exports, as reported by government.
As people lose their jobs, this increases the possibility of social disruptions breaking out left and right. The United Nations already warned us about this. If the Arroyo administration dismisses this scenario as a trifle, we may yet find ourselves in further dilemma prior to 2010.
All are good suggestions. Yet, what Arroyo probably did not take into account is the potentialities of this growing unemployed mass of people turning into a noisy mob.
We all know how hard it is right now to survive this raging scourge. A thousand (in this case, 40,000) additional unemployed people means thousands more families are going hungry or even homeless due to this. They need immediate assistance to survive.
These people are what the TUCP are most concerned about since the unemployment numbers will definitely rise as the economy goes on the second quarter. The lackluster economic performance this first quarter shows with a dismal drop in exports, as reported by government.
As people lose their jobs, this increases the possibility of social disruptions breaking out left and right. The United Nations already warned us about this. If the Arroyo administration dismisses this scenario as a trifle, we may yet find ourselves in further dilemma prior to 2010.
Thursday, January 29, 2009
May Day in February?
Hundreds of Filipino workers and laborers trooped to the Department of Labor and Employment to protest the rising job cuts being done by both private and public companies nationwide. Panasonic Philippines is purportedly the latest of a string of multinational companies closing shop in the Philippines. Labor groups estimate that more than 11 million Filipinos will either be laid off or will lose their shirts before the second quarter of this year. This is alarming considering that the unemployment rate is slipping faster than expected.
Labor groups are threatening to continue their strikes and demonstrations. Government employees subjected to the "rationalization" plan is also threatening to demonstrate against the current administration. The purported "surgical strike" against employees occupying so-called "redundant" positions smacks of what labor leaders call "union busting" since 50 of these employees are top union leaders. All throughout the country, thousands are being made to cut their working times by half or advised to report longer hours of work without additional pay. Some companies are encouraging part-time work. Some firms, particularly those in the garments sector are closing shop and "resurrecting" in other places with new employees signed as contractuals.
With more and more Pinoys joining the jobless sector, this causes an extreme threat to the stability of the state. As early as now, labor groups are expecting a jack knife rise in the unemployment rate. If this happens, that will surely affect consumer confidence leading to a slump or a slowdown in consumption. A slowdown in consumption will mean lesser production, ergo, more companies to close shop.
The slide of the Philippines to a deep recession is surely inevitable. In fact, compared with other countries, the Philippine bastion is sure to fall in a steeper altitude since the country will be the last one to give up the economic ghost in the region. Singapore, Japan, Korea, China and Hongkong have all declared their economies to be technically under recession. The Philippines is the last to call it quits.
Any stimulus package should address the labor issue more than any other since these displaced workers and sectors will need bigger financial assistance than other sectors. Mrs. Arroyo and her team of economic advisers should ensure that government is more responsive to this than ever since people are quite jittery over the bigger prospects of being made victims of this deepening global recession.
The state is also being held hostage by bigger interest groups seeking amelioration from their financial ruts. Pre-need companies are joining the fray, salivating with the prospect of taking a slice in the stimulus pie. While construction firms are just waiting for the finalization of their SOAs so that they could take their commissions from those juicy low-cost housing projects worth an estimated 82 billion pesos.
What is frightening is the stark prospect of a worker's revolt. The possibility of workers storming the bastille similar to the May 1, 2002 incident is not far-fetched. The eventual slip of the Philippines into a revolutionary situation is not a joke. Trouble could strike this perfumed conjugal dictatorship sooner than expected.
Labor groups are threatening to continue their strikes and demonstrations. Government employees subjected to the "rationalization" plan is also threatening to demonstrate against the current administration. The purported "surgical strike" against employees occupying so-called "redundant" positions smacks of what labor leaders call "union busting" since 50 of these employees are top union leaders. All throughout the country, thousands are being made to cut their working times by half or advised to report longer hours of work without additional pay. Some companies are encouraging part-time work. Some firms, particularly those in the garments sector are closing shop and "resurrecting" in other places with new employees signed as contractuals.
With more and more Pinoys joining the jobless sector, this causes an extreme threat to the stability of the state. As early as now, labor groups are expecting a jack knife rise in the unemployment rate. If this happens, that will surely affect consumer confidence leading to a slump or a slowdown in consumption. A slowdown in consumption will mean lesser production, ergo, more companies to close shop.
The slide of the Philippines to a deep recession is surely inevitable. In fact, compared with other countries, the Philippine bastion is sure to fall in a steeper altitude since the country will be the last one to give up the economic ghost in the region. Singapore, Japan, Korea, China and Hongkong have all declared their economies to be technically under recession. The Philippines is the last to call it quits.
Any stimulus package should address the labor issue more than any other since these displaced workers and sectors will need bigger financial assistance than other sectors. Mrs. Arroyo and her team of economic advisers should ensure that government is more responsive to this than ever since people are quite jittery over the bigger prospects of being made victims of this deepening global recession.
The state is also being held hostage by bigger interest groups seeking amelioration from their financial ruts. Pre-need companies are joining the fray, salivating with the prospect of taking a slice in the stimulus pie. While construction firms are just waiting for the finalization of their SOAs so that they could take their commissions from those juicy low-cost housing projects worth an estimated 82 billion pesos.
What is frightening is the stark prospect of a worker's revolt. The possibility of workers storming the bastille similar to the May 1, 2002 incident is not far-fetched. The eventual slip of the Philippines into a revolutionary situation is not a joke. Trouble could strike this perfumed conjugal dictatorship sooner than expected.
Wednesday, January 28, 2009
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.
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.
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