‘Employment woes show economy still struggling’

MANILA, Philippines — Despite restrictions gradually relaxed, the Philippine economy has yet to gain momentum in its recovery as the number of jobless Filipinos continue to grow.

Research and advocacy group IBON Foundation said the economy is still struggling despite the removal of mobility curbs and increasing COVID-19 vaccination coverage.

It cited the worsening labor market situation in the country, with the unemployment rate jumping to 8.9 percent in September, the highest level for the year.

This means that 4.25 million Filipinos are jobless as of September.

IBON executive director Sonny Africa said the labor data is a clear sign that the economy is not gaining any momentum despite the easing of quarantine restrictions and the hyped pace of vaccinations.

“Combined with likely low earnings even among those with work, this means that consumption is severely repressed,” he said.

And with the Philippines being a largely consumption-driven economy, bleak consumption is making a huge dent in the overall output.

As such, IBON reiterated its call for the government to provide substantial financial stimulus, such as cash aid for vulnerable Filipinos and support for production sectors and small businesses.

“Recovery and especially easing of economic distress will be very slow with the government’s continued refusal to give significant cash assistance to some 19 million poor and vulnerable households,” Africa said.

He added that the government should shell out resources to help jobless and cash-strapped Filipinos cope and recover.

Boosting production sectors, particularly agriculture and small businesses, will also generate jobs and spur economic recovery.

The biggest driver of the net job loss in September was agriculture as typhoons affected some 30,000 hectares of agricultural lands and contributed to around 900,000 employment loss in the sector.

IBON slammed the government’s reasoning for the close of harvest season and bad weather that led to job losses in the sector.

“Because these are normal and predictable events, this just raises the question of why the government still pays so little attention to making agriculture more resilient to poor weather and to ensuring stable rural livelihoods,” Africa said.