SOCIOECONOMIC PROBLEM:

HIGH RATE OF UNEMPLOYMENT

State Institution: The Department of Labor and Employment (DOLE) is the national government agency mandated to
formulate policies, implement programs, and serve as the policy-coordinating arm of the Executive Branch in the field of labor
and employment.

History based background:

The unemployment rate in the Philippines fell sharply to 4.5% in October of 2022, the lowest since records began at 1986 and
from 7.4% in the same month a year earlier. The number of unemployed was 2.24 million, down sharply from 3.50 million
unemployed reported in October of 2021 while the number of employed came in at 47.11 million, up from 43.82 million in the
same period last year.

Meanwhile, the labor force participation rate went up to 64.2% from 62.6% in October of 2021. Among employed persons,
workers in service sectors made up 59.2% of the total, followed by agriculture sector (22.5%) and industry sector (18.3%).
source: Philippine Statistics Authority

In comparison to other nations in the region, the Philippines' unemployment rate is still high. Prior to the start of the Asian
crisis, unemployment reached a cyclical low of 8% in 1996. However, between 2000 and 2001, it increased to more than 11%,
which is more than twice the rate of some of the country's neighbors. Given the significant population growth and an increase
in labor force participation, even while employment growth has been faster than in many other nations in the area, it has not
been enough to cut the unemployment rate.

 Labor Market Performance in the Past Twenty Years

Over the previous 20 years, the unemployment rate has varied between 7 and 14 percent. Before the economic activity
slowed down due to the Asian crisis in 1996, the rate reached a cyclical low of around 8%. The Asian crisis did not result in a
sharp increase in unemployment, but it did cause it to increase to over 11 percent in 2000 as a result of a sharp decline in
agricultural employment.

However, due to some improvement in agricultural employment, the seasonally adjusted unemployment rate fell to 1012
percent by October 2001.The underemployment rate, which was more than twice the unemployment rate in the late 1990s,
decreased to 17¼ percent in 2001.

Nearly twice as many people live in urban areas as in rural ones. In 2001, the unemployment rate in urban regions was 14%,
whereas it was just 8¼% in rural areas (the labor force is about evenly split between rural and urban areas).

However, rural employees are more prone than urban workers to demand more hours of work, as evidenced by the fact that
the underemployment rate in rural areas has been greater than in urban areas. The agricultural industry, where part-time and
seasonal labor are more common than in metropolitan areas, employs the majority of rural employees.

The service sector has seen the fastest expansion in employment. In the 1990s, employment in services increased by about
50%, outpacing growth in the industries sector (30%) and agriculture (8 percent). At around 47% of the total in 2001, the
service sector had the biggest employment share.

Over the past 20 years, there has been a 6 percentage point increase in labor force participation, primarily due to a significant
rise in the participation of women. The participation percentage for men, at 82 percent in 2001, is still significantly higher than
the rate for women, at 52 percent.

The substantial number of Filipinos working abroad is a key aspect of the labor market. By 1999, there were 2.9 million
employees formally deployed abroad, or around 9% of the labor force, in part as a result of the dearth of employment
possibilities at home. Worker remittances increased from less than US$1.2 billion in 1990 to US$6.8 billion in 1999 (or around
812 percent of GNP).

Despite relatively rapid employment growth over the past ten years, unemployment in the Philippines has remained high, over
twice the rate of neighboring nations. Due to strong population growth and higher labor force participation, employment
growth was insufficient to alleviate unemployment.
According to a study, demonstrating real GDP growth and, to a lesser extent, the real minimum wage were positively
connected with employment growth and unemployment declines in the Philippines.

The main policy ramifications are that in order to lower unemployment, faster economic growth and moderate real minimum
wage increases are needed.

 Why is it a problem?

There are numerous causes for the Philippines' high unemployment rate, which is a serious issue. Due to a variety of reasons,
including education level, geographic location, technological advancements, and more specialized labor market problems like
labor market frictions or seasonal considerations, job-seeking Filipinos may find themselves out of a job.

The effects of unemployment can spread throughout the economy as well as among the workforce.

Workers who are unemployed experience financial hardship, which has an effect on their families, relationships, and
communities. When it does, consumer spending, one of an economy's main drivers of growth, declines, which, if left ignored,
can result in a recession.

Reduced demand, consumption, and purchasing power as a result of unemployment decreased firm earnings, budget cuts,
and staff reductions are all consequences. Without some kind of intervention, it starts a vicious cycle that is hard to break.

Loss of income is typically the result of unemployment. This should be rather evident considering that if one does not work, he
will naturally be unable to obtain an income. On a personal level, this is not a big issue, but on a wider scale, it can cause
significant issues. People might experience the negative effects of a loss in income, such as debt, and collectively bigger
problems, such as increased poverty rates and lower standards of living because of lower purchasing power, such as a
decreased willingness and ability to purchase goods and services and a tendency to buy what they initially perceive as inferior
goods.

 Negative Multiplier Effects

When particular factories or businesses shut down, there is an increase in unemployment. This is especially problematic when
there is a financial crisis and unemployment is at an all-time high. Many employment are lost when a business shuts down.
When one is unemployed, their purchasing power is reduced since they can only spend what they earn, and they would also
want to save more money because they are more likely to be uncertain about the future. When many people are without jobs,
as a group, their spending would be significantly less.

 Loss of National Output

Unemployment causes the scarce resource labour to be underemployed since part of the workforce is not being used. Hence
production is not at its maximum and thus underemployment of resources would lead to a loss in potential national output. If
the situation does not improve in the long run, aggregate supply would drop and hence results in a continuous loss of
potential national output and hinders the potential of the country’s growth.

Although it has a significant impact on everything, unemployment is a critical social and economic problem that is frequently
ignored. To identify its causes and improve responses to it, a more robust method of assessing unemployment needs to be
implemented.
Root cause/s:

1. Job vacancy and skill mismatch among Filipino graduates

The country’s education system continues to produce college graduates whose skills don’t necessarily fit with what is in
demand in the job market. When Filipino nurses were in demand abroad in the earlier part of the new millennium, more
schools mushroomed to accommodate the growing demand for nursing education. This effectively left out other medical fields
such as respiratory therapists, cardio technicians, and CT-scan operators that are also in demand abroad.

2. Outdated school curriculum

Emerging technologies have created a new set of careers — from artificial intelligence to nanotechnology. However, the
Philippine education system is slow to adopt and continues to include subjects that are close to being obsolete, depriving
students to be at par with the industry trends. Although there are universities that manage to innovate, there is a big
challenge among many others to do so. Lack of qualified teachers, facilities, and academic resources remains the biggest
roadblock for them to advance forward.

3. Lack of skills and experience

Due to a lack of related skills and experience, jobless workers or fresh graduates are unable to take on careers that are
available in the job market. Some would think it’s unimaginable to take a job that’s too unrelated to the course he/she
finished in college. Some job postings require a substantial amount of experience, and fresh graduates, therefore, are left out
of contention. With little or no entrepreneurial skills, many job hunters are unable or unwilling to establish their own business
as an alternative to being employed.

4. Lack of understanding about job application

It’s hard, if not impossible, to land a job if an applicant doesn’t even know where to start. Even if they’re looking at a job
description, some of them are unable to figure out how to fill up a form, how to use e-mail service, or find the address of the
recruitment agency. A few would leave comments in a news article expressing their interest. (Does anyone want to see more
proof? Have a look at the comments of a past article about gas station attendant jobs in Dubai.)

5. Discrimination and unreasonable job requirements

In the Philippines, a simple job vacancy gets way too many applicants. As a way to pre-qualify applicants (or discourage those
that are not fit), employers have set requirements that are otherwise discriminatory and unreasonable. Take a look at a typical
job posting for a cashier job vacancy in Manila. To become a cashier, one has to have height and age requirements, and as a
hygiene-conscious country, such requirement is also disclosed upfront. Instead of relying on experience and skills, many
Filipino employers rely on looks, age, and other unnecessary requirements (at least for a cashier job). Customers need to pay
you even if you don’t look very pretty; is the cashier chair too high that a certain height must be reached? Maybe these
companies can’t pay that much, so they only take fresh graduates who may accept lower than minimum salary rates.

6. Poverty cycle

In 2015, the poverty rate in the Philippines stood at 21%. Poverty can be a direct or indirect contributor to unemployment.
Families under this category cannot send their children to school and ask them to contribute to the family by entering the job
market early. Such jobs — construction assistants, household helpers, and other lowly-paid employment — can be detrimental
to their future career development. Without an educational background, their prospects for decent jobs are low. The
government provides programs for education among the lower-income members of the community. However, these are
limited and many are left out to fend for themselves. The cycle continues soon as they start their own family, as their children
are at risk of following their footsteps of poverty.

7. Rapid population growth

As of 2017, the Philippines is home to 104.9 million Filipinos, a number that is forecast to increase to 145 million in 2045.
Growth is expected even with the projected slowing down in average annual population growth rate, from 1.73 percent during
2010-2015 to 0.65 percent during 2040-2045. The pace at which jobs are created simply cannot cope up with the steady
supply of graduates, many of whom will find themselves unemployed.
 SOLUTIONS:

Government-led

1. The Public Employment Service Office (PESO) is a non-fee charging multi-dimensional employment service facility or entity
established in all Local Government Units (LGUs) in coordination with the Department of Labor and Employment (DOLE)
pursuant to R.A. No. 8759 or the PESO Act of 1999 as amended by R.A. No. 10691.

The PESO aims to ensure prompt and efficient delivery of employment facilitation services as well as to provide timely
information on labor market and DOLE Programs.

 Core Services:

1. Labor Market Information

Labor Market Information is all the quantitative data, like numbers and statistics, and qualitative information, or the personal
stories to support the data, related to employment and the workforce.

2. Referral and Placement

The reintegration assistance is tailored to meet individual needs, and typically consists of one or more of the following:
vocational training courses, formal education for adults and/or children, language courses, access to job placements,
assistance in providing necessary tools for self- employment initiatives, information on job placements, and advice and referral
to services available locally

3. Employment Coaching and Career Counseling

A self-help guide intended to assist young jobseekers, especially new graduates, school leavers, and out-of-school and
unemployed youth in their job search.

 Programs Implemented:

1. Special Program for the Employment of Students (SPES)

The Special Program for Employment of Students is DOLE’s youth employment-bridging program which aims to provide
temporary employment to poor but deserving students, out-of-school youth, and dependents of displaced or would-be
displaced workers during summer and/or Christmas vacation or any time of the year to augment the family’s income to help
ensure that beneficiaries are able to pursue their education.

2. Job Fairs

Jobs Fair is an employment facilitation strategy aimed to fast-track the meeting of jobseekers and employers/overseas
recruitment agencies in one venue at a specific date to reduce cost, time and effort particularly on the part of the applicants.
This is open to all unemployed, skilled and unskilled workers, fresh college graduates, graduates of training institutions,
displaced workers and employees seeking advancement. During the Jobs Fair, applicants select vacancies suited to their
qualifications and employers could interview and hire on the spot qualified workers. Several agencies are invited to provide
self-employed and training assistance.

3. PhilJobnet / PESO Employment Information System (PEIS)

PhilJobNet promotes partnership with the private sector and helps employers meet their manpower needs. It also provides a
facility for the Public Employment Service Office (PESO) and their LGU's partners in the business sector to have access to the
Department of Labor's skills registry under the DOLE's National Skills Registration Program (NSRP).

4. National Skills Registry Program (NSRP)

The National Skills Registration Program (NSRP) is a Program initiated by the Department of Labor and Employment (DOLE)
with the main objective of maintaining a continuing nationwide skills registry through its Skills Registry System (SRS) database.
It is an employment facilitation machinery of DOLE which aims to cover all the cities/municipalities with operating Public
Employment Service Offices (PESO’s).

The PESO Employment Information System (PEIS) is the enhanced version of the Skills Registry System. It is a database of
active manpower supply containing the profiles of all persons and employers registered under the NSRP. It shows information
on the qualifications and skills of the applicants as well as the job vacancies posted by the employers. This registry is
maintained and updated by all participating PESO’s nationwide.
5. DOLE Government Internship Program (DOLE-GIP)

The DOLE-Government Internship Program provides three to six (3-6) month’s internship opportunity for high school,
technical-vocational, or college graduates who wants to pursue a career in public service in either local or national
government

6. Tulong Pangkabuhayan para sa Ating Disadvantaged Workers (TUPAD)

TUPAD or Tulong Panghanapbuhay sa Ating Disadvantaged/Displaced Workers is a community-based package of assistance

that provides emergency employment for displaced workers, underemployed and seasonal workers, for a minimum period of
10 days, but not to exceed a maximum of 30 days, depending on the nature of work to be performed

7. DOLE Integrated Livelihood and Emergency Employment Program (DILEEP)

One with the government's agenda of poverty reduction and inclusive development, the Department of Labor and
Employment (DOLE), through the Bureau of Workers with Special Concerns (BWSC) implements the DOLE Integrated
Livelihood and Emergency Employment Programs (DILEEP).

The Program seeks to contribute to poverty reduction and reduce the vulnerability to risks of the working poor, vulnerable and
marginalized workers either through emergency employment, and promotion of entrepreneurship and community
enterprises.

8. JOBSTART

JobStart enhances employability of youth by reducing their job-search period and increasing their employability through
training (life skills and technical skills required by industries), paid internship and full-cycle employment facilitation services.
The program is also designed to increase the capacity of the Public Employment Service Office (PESOs) in providing full cycle
employment facilitation services.

The JobStart trainees shall receive an allowance for the duration of life skills training and technical skills training and shall
undertake internship with establishments for a maximum of three months with stipend not less than 75% of the prevailing
minimum wage in the locality.

 Who does the PESO cater to?

Jobseekers, Employers, Students, Out-of-School Youth (OSY), Migrant Workers, Persons with Disabilities (PWDs), Returning
OFWs, Displaced Workers, Researchers and Planners, Senior Citizens, Other PESOs and Government Entities

2. The Department of Public Works and Highways (DPWH) is set to launch on December 7, 2021 a new program that will
provide assistance to individuals who lost their employment due to Covid-19 pandemic.

DPWH Acting Secretary Roger G. Mercado announced the new DPWH initiative dubbed as Assistance to Youth and
Unemployed for Development and Advancement or AYUDA Program aims to address the alarming unemployment rate in the
country.

“Through this program, we hope to support Filipino families by employing at least one member per household as well as
empower the youth by making them productive members of the society,” said Secretary Mercado 

More than a year of Covid-19 led to the closing of many industries and businesses, which rendered many Filipinos jobless.

These activities complement the DPWH’s comprehensive project cycle which does not end upon the completion of
infrastructure projects but also covers their upkeep and maintenance.

“AYUDA was launched so that we can maximize our Build, Build, Build Program by hiring unemployed youth and those who lost
their jobs, allowing our kababayans to recover from COVID-19 and at the same time contribute to our public infrastructure
development nationwide,” said DPWH Secretary Roger G. Mercado during the program launching at the Rizal Park, Manila.

Beneficiaries will render work on roadside maintenance such as street sweeping, cleaning of street signs, hauling waste
materials, and painting of concrete barriers.
3. Task Force Group on Economic Recovery-National Employment Recovery Strategy (TGER-NERS) was created to address job
shedding across different industries due to adverse impact of Covid-19. From January to November 2021, the TGER-NERS
contributed approximately 913,498 in job creation.

Under EO 140, the NERS is to precipitate the recovery of the labor market through (1) the creation of a policy environment
that encourages generation of and improved access to employment, livelihood, and training opportunities; (2) the
improvement of employability, wellness, and productivity of workers; and (3) the provision of support to existing and
emerging businesses, ensuring the preservation of employment.

The government of the Philippines announced that it aims to bring down the unemployment rate close to pre-pandemic level
of around 5% to 5.5% this year.

Department of Trade and Industry Secretary Ramon Lopez said the unemployment rate slowed down to 6.5% last November
from a peak of 17.6% in April 2020.

“Our goal in 2022 is to further increase our job generation efforts to close down the unemployment rate nearer to pre-
pandemic levels,” Ramon M. Lopez said.

Lopez said the employment condition is sensitive to the restriction of mobility, so the government now focuses its policy
towards targeted rather than blanket protocols, such as doing away with wide-area lockdowns and shifting to home isolation.
Lopez added the key to keeping the economy open and avoiding job losses is to boost vaccination efforts to protect every
Filipino from Covid-19 and provide better healthcare services.
Private Initiative

1. “TrabaHOPE”

Vice President Leni Robredo disclosed that her office’s TrabaHOPE, a project that drives apprenticeship programs for out-of-
school youth, is part of the third component of OVP’s Bayanihanapbuhay initiative. On October 14,2020 at 2:45 pm ,VP leni
Robredo Published her program.

TrabaHOPE is a P17-million platform where private partners, the United States Agency for International Development (USAID)
and Philippine Business for Education (PBEd) will train, mentor, provide on-the-job training (OJT) and apprenticeship
opportunities for out-of-school youth. She explained that OVP has contributed over P6.6 million for the project which will be
used to fund scholarships of 1,000 out-of-school youth in the greater Metro Manila area.

OVER 1,000 unemployed and out-of-school Filipino youth are expected to benefit from free technical, vocational skills and
employability training with the launch of the United States Agency for International Development (USAID), the Philippine
Business for Education (PBEd), and the Office of the Vice President of the Philippines (OVP) partnership.

The OVP, through its TrabaHOPE program, will co-sponsor the training needs of youth aged 18-30 years old who qualify for
YouthWorks PH, USAID’s private sector-driven employability initiative with PBEd. YouthWorks PH is a free technical-vocational
training program for youth who are currently not studying, in training or employed.

A combined P17-million ($340,000) commitment from OVP, USAID, and PBEd will cover the training costs for YouthWorks PH
participants until the end of 2020. This is in addition to the support of the project’s private sector partners, from the food and
beverage services, construction, manufacturing, and information technology sectors, who will provide daily training
allowances and opportunities for eventual employment for the trainees.

The OVP’s support, which will cover the daily allowance for participants, along with a welcome kit, hands-on materials,
mobile/internet allowance and pre-employment support, complements the learning devices, online mentoring,
online/blended tech-voc training, in-company training, and Technical Education and Skills Development Authority (TESDA)
national certification provided by YouthWorks.

2. “Angat Buhay”

Vice President Leni Robredo Office's Angat Buhay program, which implements anti-poverty initiatives with support from the
private sector, impacted around 622,000 Filipino families since 2016.

The Office of the Vice President (OVP) said in a Monday statement that the families that benefited from Angat Buhay
initiatives were from 223 cities and municipalities.

The program was supported by 372 organizations and, as of December 2021, received P520 million in funding from various
sources though mostly from private sector donations.

 Angat Buhay assistance covered the following:

- Sikap.Ph which provided access to jobs for those who lost employment amid the pandemic
- provision of scholarships and skills training to more than 120 Filipino youth as well as 138 women entrepreneurs who were
given access to livelihood opportunities, including startup capital and mentoring from experts, through the Angat Buhay
Workshop for Aspiring Women Entrepreneurs.
- P15.39 million worth of livelihood assistance turned over to 156 fisherfolk, famers, seamstresses, small businessmen, and
riders in partnership with 33 accredited civil society organizations, including members of PANGISDA Parañaque who
received fish cages, boats, and other equipment along with training in financial and business management, leadership,
organizational building, and cooperative building
- rural development projects included the Omasenso sa Kabuhayan program where small farmers from Camarines Sur
became agri-preneurs and directly connected to bigger markets for their produce, which now benefit 11 farmer
organizations

“Angat Buhay” program is an anti-poverty program which was Launched in October 2016, The program aims to bring together
the public and the private sectors—organizations and individuals alike—to address the needs of families in the farthest and
the poorest communities in the country. As to there is no way to solve poverty in our community. The OVP(office of the Vice
president) capacitates key sectors, including disaster-affected families, grassroot stakeholders, urban poor, women and the
youth by empowering them through various modes of engagement.