Corruption steals jobs, too
The run-up to the Christmas holidays is usually characterized by the hiring of additional workers to cope with a seasonal jump in demand for goods and services. Surprisingly, the Philippine Statistics Authority reported last week that the unemployment rate in October worsened to 5 percent from 3.8 percent the previous month. In terms of magnitude, 2.54 million Filipinos were out of work that month compared with 1.96 million in September. This is unexpected. As Labor Secretary Bienvenido Laguesma had noted, “if we consider historical trends when the ‘ber’ months would set in, the unemployment rate should be down, underemployment will see an increase due to the onset of seasonal and part-time jobs.”
While Laguesma blamed the jump in the unemployment rate on the typhoons and earthquakes that were experienced in some parts of the country, this does not tell the whole story. Leonardo Lanzona, a labor economist at Ateneo de Manila University, noted that the widespread corruption scandal in government infrastructure projects actually overshadowed any impact of those natural disasters. “In effect, the data this year, in some way, create some experimental measure of how corruption affects the labor market. This seems to be the only factor that differentiates the employment picture this year from that in other years,” Lanzona said.
Lowest in four years
The widening investigation into the flood control corruption mess has been blamed for the 4-percent expansion in the third quarter of the gross domestic product, a measure of the economy, which was the lowest in four years. “Obviously, this can be attributed to the brewing flood control scandal and reflected in the economic slowdown. The decline in both public and private investments due to the corruption scandal has led to layoffs,” Lanzona noted.
The labor figures for the month of October support this as well. National Statistician Claire Dennis Mapa said the construction sector added 23,000 jobs in October this year compared to the year-ago level. But when compared to September, it actually lost 261,000 jobs.
Secretary Arsenio Balisacan of the Department of Economy, Planning, and Development (DepDev) also agrees that the recent infrastructure scandal curbed public spending. According to him, services and industry posted weaker growths in the third quarter as these sectors were dragged by the sharp contraction in public construction amid delayed infrastructure spending, as probes into the anomalous flood control projects continue.
Key challenges
Expressing alarm over the higher unemployment rate, labor group Sentro ng mga Nagkakaisa at Progresibong Manggagawa (Sentro) agrees that it is clearly linked to the ongoing corruption scandal involving flood control projects, which stalled public infrastructure and dampened domestic consumption.
The government needs a lot of work to do to truly address the labor sector, where tens of thousands are dependent on seasonal and contractual work. For instance, Secretary Vince Dizon of the Department of Public Works and Highways, the epicenter of the corruption scandal, should speed up his housecleaning activities so that government infrastructure projects can resume and generate jobs. Public works create construction jobs and stimulate economic activities that similarly generate employment.
The Marcos administration should also put more effort into what Balisacan says is the urgent need to address key challenges and strengthen the foundations for rapid, sustained and inclusive economic growth. Foremost of these are programs that Balisacan noted will “boost workforce competitiveness by accelerating learning pathways and expanding lifelong learning opportunities, equipping workers with in-demand skills such as digital literacy, green technology capabilities, and expertise in higher-value services.”
Fast-changing market
It should focus on improving education and skills that are aligned with what the industries need. One way is to promote vocational training. It must also focus on labor-intensive sectors such as manufacturing and modernize agriculture to attract more Filipinos to farming. The government must also help small and medium enterprises, which are significant job creators, through support programs that actually work.
The government must indeed stop relying solely on the private sector to provide jobs, which Sentro said is an approach that has repeatedly failed, especially in periods of economic downturns. “When the private sector pulls back, the government must step in. Only the State can guarantee stable, dignified employment at scale,” Sentro pointed out.
President Marcos noted at a job fair in Pasay City last Dec. 11 that the Filipino labor force can adapt to the fast-changing market if given the proper opportunities and training. It is therefore of utmost urgency that the government starts providing them with the right support and the right opportunities.
