Fewer Filipinos jobless after govt hikes spending

MANILA, Philippines - Fewer Filipinos remained unemployed as of April this year, a government survey said, indicating that efforts to increase and accelerate spending – which in turn, create jobs – have reportedly taken effect. As of April this year, jobless Filipinos 15 years old and older who sought employment and were available for work were reduced by 0.5 percent year on year, the latest labor force survey undertaken by the Philippines’ National Statistics Office (NSO) said. The unemployment rate reached 7.5 percent, an improvement from last year’s eight percent, the same survey said. The size of the labor force – individuals 15 years old or above, jobless or otherwise, who contribute to economic activity – comprised of 37.8 million out of the 59.1 million population who were 15 years and older, the same survey said. Moreover, of the total population who were 15 years and older, 64 percent did their share in producing goods and services for the economy. This is slightly higher than the labor force participation rate reported in April last year which reached 63.2 percent. “By age group, around 50.6 percent were in the age group 15-24 years while thirty percent of the total unemployed were in the age group 25- 34," it added. The National Capital Region (NCR), which includes the country’s capital, recorded the lowest employment rate at 86.5 percent and the highest unemployment rate at 13.5 percent, the NSO said in a statement posted at its website. The employment rate measures the number of Filipinos 15 years old and above who have jobs compared to the total number of those who belong to the labor force. On the other hand, the Autonomous Region in Muslim Mindanao posted the highest employment rate (98.5 percent) and the lowest unemployment rate (1.5 percent) in April 2009, the NSO added. Besides Metro Manila, the other regions that registered an employment rate below the national estimate of 92.5 percent are Ilocos Region (91.7 percent), Central Luzon (91.5 percent), CALABARZON [provinces of Cavite, Laguna, Batangas, Rizal, and Quezon] (90.1 percent), and Western Visayas (92.1 percent). Services sector takes lead in creating jobs, govt says Meanwhile, employment growth was broad-based as all major industry groups posted gains, Socioeconomic Planning Secretary Ralph G. Recto said in a memorandum to the President as cited by a separate statement. The services sector, which took the lead in employment growth with a 5.8 percent increase, was able to create 964,000 additional jobs, the National Economic and Development Authority (NEDA) said in a statement. Of these new positions, 358,000 were in wholesale and retail trade; 146,000 were from private households with employed persons; and 133,000 were in public administration and defense, compulsory social security. Seventy thousand new jobs were created in real estate, renting, and business activities; 64,000 were in other community, social and personal service activities; 53,000 in hotels and restaurants; 53,000 in transport, storage and communication; 40,000 in education; 24,000 in health and social work; 23,000 in financial intermediation; and 1,000 in extra-territorial organizations and bodies (1,000). The agriculture, fishery and forestry sector, on the other hand, managed to record a 3.4-percent growth in employment, generating 408,000 new jobs. Besides demand for food and fish products, new jobs were created because of government moves to improve irrigation systems. Jobs in the industry sector rose by 1.7 percent or 86,000 growth despite the bleak environment. Although the sector reported 43,000 job losses in manufacturing, this was offset by employment generated in construction (108,000); and the relatively stable employment in mining and quarrying (15,000); and, utilities (7,000), the statement said. The total net employment generation reached about 1.46 million compared to the 169,000 net employment losses a year ago. In April this year, total employed persons increased to 34.99 million from 33.54 million in the same period last year. Moreover, the Philippines’ socioeconomic planning body called for accelerated spending “to gain back lost remunerative jobs and create more with better quality," it said in a statement. The country’s unemployment rate improved “because of the implementation of the Economic Resiliency Plan (ERP)," the National Economic and Development Authority (NEDA) said, referring to the government’s stimulus package to curb the crisis’ effects. “With the domestic economy gaining more traction and as there are early indicators of the bottoming-out of the global crisis, it is paramount for government to accelerate its spending to return lost remunerative jobs, if not create better quality ones," NEDA Director General Ralph G. Recto said. Among the recommendations Recto proposed included fast-tracking “infrastructure projects in the next three quarters of the year to absorb the displaced workers from the construction sector and its allied industries." He also moved to “intensify and improve the regular monitoring of the accomplishments of the government’s Comprehensive Livelihood and Emergency Employment Program (Cleep) and the commitments of the private sector on employment creation." “It is worth noting that the unemployment rate in April this year was almost as good as the April 2007 unemployment rate of 7.4 percent, the year when the economy had posted 7.1 percent GDP growth," Recto said. This year’s unemployment rate was also lower than the comparative period in April 2008 notwithstanding the earlier occurrence of massive lay-offs due to the global crisis and the delayed passage of budget on the ERP. - GMANews.TV