Research group IBON said that the recently reported job\ngeneration is mostly in poor quality work and confirms volatile labor market\nconditions rather than a strengthening economy. The group made the statement after\nthe recent release of seemingly favorable employment figures and warned against\ncomplacency.<\/p>\n\n\n\n
The Philippine Statistics Authority (PSA) reported an\nincrease in the number of employed by 2.3 million and an increase in the number\nof unemployed by 103,000 in July 2019 from the previous year. The employment\nand unemployment rates stayed the same as last year at 94.6% and 5.4%,\nrespectively. <\/p>\n\n\n\n
IBON however said that the extreme volatility in the labor\nmarket since 2016, for instance, should temper overenthusiasm that the economy\nand the labor force situation is improving. Millions of Filipinos are making do\nwith poor quality work and hundreds of thousands more are in and out of work.<\/p>\n\n\n\n
The group recalled that the reported 2.3 million additional\nemployment in 2016 reversed to 664,000 net job losses in 2017. In 2018, 2.4\nmillion new jobs were reported generated in the January labor force survey\nround, measured year on year, but this reversed to 218,000 net job losses in\nthe October round. The situation remains as volatile so far this year, ranging\nfrom 387,000 net job losses in January 2019 to the recently reported 2.3\nmillion job creation in July 2019.<\/p>\n\n\n\n
This volatility indicates Filipinos struggling to find work\nwhere they can on a day-to-day basis rather than a strengthening economy\ncreating steady jobs paying decent incomes, IBON stressed. Looking at employed\npersons in terms of hours worked, 2.2 million or an overwhelming part of the net\n2.3 million additional employed in July 2019 was actually just in part-time\nwork of less than 40 hours. This caused the share of part-time work in\nemployment to markedly rise from 28.2% to 31.8 percent.<\/p>\n\n\n\n
Looking at employed persons by class of worker, IBON pointed\nout that the biggest employment increases were actually in low-earning,\ninsecure, and informal work, as well as in unpaid family work. The number of\nself-employed without paid employees grew by 1.1 million and the number of\nunpaid family workers grew by 854,000.<\/p>\n\n\n\n
Finally, IBON said that looking at the three biggest\njob-creating sectors also does not give confidence. The sectors creating the\nmost jobs included wholesale and retail trade which grew by 820,000, and\naccommodation and food service by 292,000. These subsectors are notorious for\nhigh informality and uncertainty, the group said. IBON noted the 716,000\nincrease in agricultural employment but pointed out that this is likely only\nmomentary because agricultural employment is in long-term decline especially\nfrom lack of government support for the sector.<\/p>\n\n\n\n
IBON also commented on the underemployment rate falling significantly\nfrom 17.2% in July 2018 to 13.9% in July 2019. This is equivalent to the 7\nmillion underemployed last year falling to just 6 million this year. The group said\nthat while falling underemployment is commonly used as a proxy for improving\nquality of work, the latter is not necessarily what is happening. <\/p>\n\n\n\n
Underemployment refers to employed persons wanting\nadditional hours of work in their present job, an additional job, or a new job\nwith longer working hours. IBON explained that the large drop in the\nunderemployed is possibly only because workers are already working such long\nhours that they do not want additional hours in their present job, cannot take\non an additional job, or cannot imagine a new job with even longer hours. <\/p>\n\n\n\n
The breakdown of reported underemployed persons is not inconsistent\nwith this, the group said. The number of those working 40 hours and over in a\nweek, or the invisibly underemployed, fell by a huge 1.5 million from 3.7\nmillion in July 2018 to 2.2 million in July 2019. Those who worked less than 40\nhours, or the, visibly underemployed, meanwhile, increased by 352,000, hence\nthe net decrease of some 1.1 million total underemployed.<\/p>\n\n\n\n
IBON said that while more employment is always desirable,\ngovernment should ensure that jobs are decent and sustainable. But as long as\ngovernment neglects the development of domestic agriculture and industries to generate\nstable and quality work, the jobs crisis will continue to worsen, and Filipinos\nwill keep grappling with poor job prospects. ###<\/p>\n\n\n\n
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