FINAL ANSWERS TO ASSIGNMENT

Narvadez, Karla Krisanta D. March 21, 2015

IR 299 Prof. Tolentino

ON EMPLOYMENT TRENDS

1.

The Arroyo Administration created and implemented the following policies during her term, that according to the labor groups like TUCP, in a DOLE interview in 2010, recognized the indispensable role of the labor force in the growth of the Philippine economy. These policies, have contributed to the significant increase of the services. According to Oscar R. Sanez, former CEO of the IT and Business Processing Association of the Philippines (IBPAP) from 2007 to 2011, saidit was Arroyo who “laid the successful model that led to the growth of the BPO industry” in the country. This is due to the successful model of real public-private partnership The industry grew on the average by a significant 65 percent per annum over the decade. Also, the Arroyo administration also provided investor support through the Board of Investment (BOI) and Philippine Econimic Zone Authority (PEZA), which included accrediting buildings used by the industry; driving regional initiatives under CICT (Cyber Corridor) and the Department of Trade and Industry’s Regional Operations and Development Group; completing infrastructure programs such as airports; and investing in training vouchers from TESDA worth over P800 Million from 2007-09 alone.



Other labor and economic policies that the Arroyo administration implemented during her term are:

Workers Income Augmentation Program (WINAP) Salary Standardization law for public sector workers, Special program for Employment

of Students, Comprehensive Livelihood and Emergency Employment Program (CLEEP), and other employment generation programs.

NARS or Nurses Assigned in Rural Services program early last year to equip unemployed registered nurses in the country with training and work experience necessary for them to land a job in the same profession here and possibly abroad. Under this program, about 10,378 inexperienced registered nurses have been deployed in 1,000 poorest municipalities nationwide.

Tax Relief Package Law of 2008 exempting minimum wage earners from paying withholding tax and increasing tax exemptions for heads of families;

Magna Carta of Women that hopes to ensure gender equality and equity; Thus, the high employment rate among women as compared to men.

RA 9231 aims to eliminate the worst forms of child labor; RA 9481 which strengthens workers right to self organization; RA 10022 (Migrant Workers Act)which increases protection and services for overseas

Filipino workers; RA 9208 (Anti-trafficking of women and children).



1.

2002 2003 2004 2005 2006 2007 2008 20090

2000

4000

6000

8000

10000

12000

Employed Persons by Major Industry Group

Agriculture, Hunting & ForestryFishingManufacturingWholesale & Retail, Repair of Mo-tor Vehicles, Motorcycles & Per-sonal Household Goods

Axis Title

As seen in the graph, the employment trend is high for the agricultural sector, from 2002 to 2009. However, in Table 1, it can be noted that the productivity (GDP) of the agricultural sector continues to decline as the time progresses.



Source: BLES-DOLE

In the table illustration below, it can be noted that the poverty incidence is highest among the fishermen and farmers.

Table 2. Poverty Incidence for Basic Sectors

Given the low labor productivity and wage rates, it is not surprising that across basic sectors, poverty incidence is highest among fishermen and farmers at 41.4 percent and 36.7 percent in 2009, way above the poverty incidence for the whole country at 26.5 percent in 2009.Among regions, Zamboanga Peninsula has the highest poverty incidence of farmers (at 54.0 percent), while CARAGA has the highest poverty incidence (of 59.2 percent) among fisherfolk.

Also, in a paper, written by V. Bruce J. Tolentino, it reflected that a landscape of governance that is characterized by monopoly elements and regulatory constraints that induce



monopolistic behavior and situations in agricultural production,services and food supplies. These market-constraining factors, combined with others,causes the stagnation of the agricultural sector and inhibit sustainable food security in the Philippines.

2.

For much of the last century, industrialization in the Philippines consisted of import substitution and exports of agricultural and forestry products having limited value-added (e.g. coconut oil, copper metal, and plywood). Most factories set up by domestic and foreign investors in the Philippines made products primarily sold in the domestic market. Government protected their production with high tariffs, as well as quotas on imports. Elsewhere in Asia, beginning half a century ago, Japan, Korea, and Taiwan became manufacturing powerhouses with indigenous firms successfully exploiting global markets. Strong exports usually create quality jobs at home in the manufacturing sector and increase direct revenue for the public sector, which overseas jobs do not. (Proceedings of the 14th Diliman Governance Forum 15 Trade on Human Terms: Makatao Pa Ba?)



4.

Corporate Execu-tives. Managers,

Proprietors & Supervisors

15%Service Workers, Shop and Market

Workers12%

Farmers, Forestry Workers & Fish-

ermen19%Traders & Related Workers

9%

Plant Machine Operators & Assemblers

7%

Laborers & Un-skilled Workers

37%

Employed Persons by Occupation, 2009

Source: NSO

In comparison with the figure below, the distribution of unskilled laborers and that of the percentage of the informal sector, is significantly high as compared to other occupations.

The figure below shows that 43% of the workforce in 2009 is in the informal sector, where most work in low-paying or unpaid labor activities.



As the number of workers in the informal sector grows, as shown in table 1, the enrollment in TESDA increased exponentially over the years. This can be an effect of the informal workers’ efforts to find alternative measures to augment their skills, and hopefully, their employment situation.





ON UNEMPLOYMENT TRENDS

1.

2002 2003 2004 2005 2006 2007 2008 20090

500

1,000

1,500

2,000

2,500

3,000

Unemployed Persons by Sex 2002 to 2009

men

women

Source: NSO

While unemployment is higher among men than among women, according to an ILO official, “men are slightly higher in terms of wage and salary employment, while women are higher in vulnerable employment.” Wage and salary workers,are those protected by the Labor Code and who have access to health insurance and social security benefits. Those in vulnerable employment, he said, are sari-sari store owners and street vendors — low productivity jobs — who are not protected by the Labor code and are not covered by insurance or social security.



In the Labor Force Participation Rates, from 2005-2013, The rising rates were driven by women (data up to 4th quarter 2009), as well as by the very young 15-19 years old and much older workers, 55-64 years old, and those with less than secondary education. In economic downturns when main breadwinners (often men) lose their jobs, families mobilize additional income-earners, most often women and very young members (perhaps pulled out of school) to compensate for the loss and to maintain living standards. This is called the “added-worker” effect.

2.



Beginning with the 2nd round of the LFS in 2005, a new definition of unemployment was adopted which included the “availability criterion”. Published labour force participation and unemployment rates from this period onwards are not comparable with previous data. The survey focused mainly on the 2005 data. Though the Philippines has a young population, the problem of underemployment remains to be a great problem for the young work force, though many graduates in college levels, there are not enough jobs to cater them. Either the graduates take jobs which is not “in line” with what their degrees are, or they are forced to wait for the right employment opportunity, causing them to take on intermittent jobs.

3.





It is seen that the drop out rates from elementary to secondary decreased significantly from 2004 to 2011. These students are forced to work, to help augment the income of their families, thus, the high employment rate in the age range 15-24. The effect of the drop out rate in relation to the growing number of labourers/unskilled workers, is strongly linked. Since there’s a low level of educational attainment the availability of jobs for these drop outs to take, are limited.

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FINAL ANSWERS TO ASSIGNMENT