EDITORIAL - 8.7 million jobless

Approximately 8.7 million adult Filipinos or 18.9 percent of the population aged 18 years or older are jobless. This is according to the third quarter survey taken on Sept. 23-27 and released this week by Social Weather Stations Inc.

Jobless adults refer to those who voluntarily left their jobs, involuntary lost their employment, or are first-time job seekers. The 18.9 percent is the lowest adult joblessness rate since the 18.4 percent recorded in the SWS survey in September 2016. But the job situation has been better at other times in previous years. And 8.7 million jobless people is still a lot.

The start of a new year is a good time to review proposals by the business community to improve the investment climate and generate jobs. The proposals, presented every year, cannot be brushed aside, because businessmen compare the country with its neighbors when making plans for investments or expansion. And despite being one of Asia’s fastest growing economies, the Philippines trails its neighbors when it comes to levels of foreign direct investment.

Those neighbors already enjoy an edge over the Philippines due to the absence of constitutional restrictions on foreign ownership. But they also do their homework, competing with each other to improve the environment for ease of doing business. They have lower power costs, better infrastructure, faster broadband, stronger regulatory frameworks, more reasonable and flexible labor rules, and laws that are not applied arbitrarily. The most competitive can guarantee the rule of law and strict enforcement of contracts.

Peace and order problems also deter investments and job generation in the Philippines. The country is even losing its traditional edge, its skilled workforce, as its neighbors pour investments into public education and skills upgrading. The adult jobless rate, while generally steady, leaves no room for complacency. Having nearly a tenth of the national population unemployed should spur more effort to improve the environment for generating job opportunities.