According to the Philippines Statistics Authority (PSA), the current employment rate is around 96.1%. In contrast, the current unemployment rate stands at 3.8%. This looks good on the surface. However, employment gaps relating to poverty exist in the Philippines.

Within the Philippines, there are wage/salaried workers in private companies or the army. There are the self-employed/family businesses, retail stores or drivers with low-paid employees. Then there are farming towns and family members who technically do not have jobs but still receive allowances.

Workplace Quality

While hospitality and food service jobs are on an employment rise of 377,000, careers in administration and agriculture have largely decreased by almost a million. In STEM, they’ve had a shorter decrease of -68,000. These facts are distressing because they reflect the lack of skill or education that the people of the Philippines have access to or have completed, which directly reflects the unemployment and poverty in the Philippines.

The reasoning behind these statistics could be the unmanageable population rate, or it could be the lack of sufficient education. Asian Development Bank (ADB) lists that the major factors of poverty in this nation revolve around weak employment generation, increasing populations, recurring trauma of natural disasters, income inequalities, etc.

ADB research found that poverty is directly related to the accessibility of education. Families with many children tend to be the first affected by poverty and unemployment in the Philippines. It also found that the government still has a hand in the reason why chronic poverty levels have not improved, with little action on poverty reduction programs.

“Self-Rated” Poverty and The Employment Gap

In his recent article, entrepreneur and President of the National Economic Protectionism Association (NEPA) Brian James Lu explores the highest rates of what he calls “self-rated” poverty. Theoretically, the job market holds plenty of opportunities, but the people qualified for these roles are few. This is where the employment gap and issues of poverty intersect. Last December, SWS reported that 63% of Filipinos claimed themselves as unemployed.

“The characteristic of Philippine employment is that while more Filipinos are technically employed, many are underemployed, working jobs that offer meagre wages, lack security, or provide limited hours,” according to Lu.

There is an average of 20 typhoons annually, with limited financial success, especially with families who are involved in agriculture, and only 5% of lower-income households use health services. The findings break down the gap between primary and secondary education with a difference of 96% over 73%. In turn, Filipinos who live in poverty face discrimination when applying for jobs.

A New Future

A 2024 Labour Force survey found that almost 50 million people have a job in the Philippines, lowering unemployment rates by 13.9%. Jobs providing a stable life for most include jobs in services and agriculture. Their Department of Finance have taken measures by creating a program dubbed Growth-Enhancing Actions and Resolutions (GEARS) that has aided their economy and, in turn, has invested in more valuable employment options for all citizens.

Another recent initiative, the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, has brought in further investments to the country. A notable mention includes President Bongbong Marco’s Build Better More program focusing on employment prosperity.

Active Solutions

Skill development programs like the Philippines Skill Framework (PSF) focuses on quality education and organizations such as The Department of Labor and Employment (DOLE) have provided training programs, especially in STEM/Medical careers and “Trabaho Para sa Bayan” (TPB) planning on the technology field have started to make a positive impact on the livelihood of many Filipino families. The need for “multi-skilled” individuals is a desired outcome for rising market demand.

– Melody Aminian

Melody is based in Irvine, CA, USA and focuses on Global Health for The Borgen Project.

Photo: Flickr