ACCORDING to the latest labor force survey by the Philippines Statistics Authority (PSA) conducted from May 8 to May 28, the number of jobless individuals in the country has surged to 2.11 million.
This is higher than the 2.04 million recorded in April.
Employers Confederation of the Philippines (ECOP) attributes the rise in unemployment to declining job creation and the closure of several companies in the country.
ECOP President Sergio Ortiz-Luis pointed out that geopolitical issues in the Philippines affect investment and tourism, which are crucial sources of employment in the country.
Investors have started to withdraw due to the perceived looming conflict between the Philippines and China over disputes in the West Philippine Sea.
‘’Some Chinese companies have also halted operations due to our issues. Many are likely affected by inflation, especially small companies, which instead of expanding, are reducing jobs. That’s what I see as the reason. Investors are somewhat hesitant here because of rumors of impending conflict. Many industries that were planning to invest here didn’t push through. Actually, based on a survey I saw, in 2023, Chinese investment in the Philippines was almost zero. Even tourism declined as a service. There was a significant drop because their tourists went to Thailand, went to Indonesia,’’ according to Sergio Ortiz-Luis-Jr. President, Employers Confederation of the Philippines.
Since taking office, President Marcos has embarked on numerous foreign trips to encourage investors— visiting more than 20 countries during his two years in Malacañang.
However, according to ECOP, the Philippines still lags behind in terms of investment.
‘’The problem here in Asia, with all the efforts of the government of the president, we are at the bottom, really at the bottom, we are at the bottom of the investment. Until now, we are at the very bottom,’’ he said.
The ECOP President mentioned that the wage increase for workers in NCR is hardly felt due to the relentless rise in the prices of goods.
He further pointed out that the Philippines is lagging behind in terms of providing subsidies compared to other neighboring countries.
‘’The problem there is a misconception among our fellow countrymen that our minimum wage is very low. The truth is, our minimum wage here in the ASEAN region, last year we were somewhat overtaken by Indonesia because they increased theirs, but when the latest figures came out, the P40 and P35 now made us number one again in terms of being the highest,’’ he added.
‘’Why there is a problem, in spite of that the prices of our commodities are high. We do not have subsidies like our neighbors. They have subsidies for fuel. Their power cost is low. Their agricultural products are more competitive. Ours are very uncompetitive, that’s why the prices of the goods here are very high,’’ he said.
