by IBON Media
Research
group IBON said that the recently reported job generation is mostly in poor
quality work and confirms volatile labor market conditions rather than a
strengthening economy.
The group
made the statement after the recent release of seemingly favorable employment
figures and warned against complacency.
The
Philippine Statistics Authority (PSA) reported an increase in the number of
employed by 2.3 million and an increase in the number of unemployed by 103,000
in July 2019 from the previous year.
The
employment and unemployment rates stayed the same as last year at 94.6% and
5.4%, respectively.
IBON
however said that the extreme volatility in the labor market since 2016, for
instance, should temper overenthusiasm that the economy and the labor force
situation is improving.
Millions
of Filipinos are making do with poor quality work and hundreds of thousands
more are in and out of work.
The group
recalled that the reported 2.3 million additional employment in 2016 reversed
to 664,000 net job losses in 2017.
In 2018,
2.4 million new jobs were reported generated in the January labor force survey
round, measured year on year, but this reversed to 218,000 net job losses in
the October round.
The
situation remains as volatile so far this year, ranging from 387,000 net job
losses in January 2019 to the recently reported 2.3 million job creation in
July 2019.
This
volatility indicates Filipinos struggling to find work where they can on a
day-to-day basis rather than a strengthening economy creating steady jobs
paying decent incomes, IBON stressed.
Looking at
employed persons in terms of hours worked, 2.2 million or an overwhelming part
of the net 2.3 million additional employed in July 2019 was actually just in
part-time work of less than 40 hours.
This
caused the share of part-time work in employment to markedly rise from 28.2% to
31.8 percent.
Looking at
employed persons by class of worker, IBON pointed out that the biggest
employment increases were actually in low-earning, insecure, and informal work,
as well as in unpaid family work.
The number
of self-employed without paid employees grew by 1.1 million and the number of
unpaid family workers grew by 854,000.
Finally,
IBON said that looking at the three biggest job-creating sectors also does not
give confidence.
The
sectors creating the most jobs included wholesale and retail trade which grew
by 820,000, and accommodation and food service by 292,000.
These
subsectors are notorious for high informality and uncertainty, the group said.
IBON noted
the 716,000 increase in agricultural employment but pointed out that this is
likely only momentary because agricultural employment is in long-term decline
especially from lack of government support for the sector.
IBON also
commented on the underemployment rate falling significantly from 17.2% in July
2018 to 13.9% in July 2019.
This is
equivalent to the 7 million underemployed last year falling to just 6 million
this year.
The group
said that while falling underemployment is commonly used as a proxy for
improving quality of work, the latter is not necessarily what is happening.
Underemployment
refers to employed persons wanting additional hours of work in their present
job, an additional job, or a new job with longer working hours.
IBON
explained that the large drop in the underemployed is possibly only because
workers are already working such long hours that they do not want additional
hours in their present job, cannot take on an additional job, or cannot imagine
a new job with even longer hours.
The
breakdown of reported underemployed persons is not inconsistent with this, the
group said.
The number
of those working 40 hours and over in a week, or the invisibly underemployed,
fell by a huge 1.5 million from 3.7 million in July 2018 to 2.2 million in July
2019.
Those who
worked less than 40 hours, or the, visibly underemployed, meanwhile, increased
by 352,000, hence the net decrease of some 1.1 million total underemployed.
IBON said
that while more employment is always desirable, government should ensure that
jobs are decent and sustainable.
But as
long as government neglects the development of domestic agriculture and
industries to generate stable and quality work, the jobs crisis will continue
to worsen, and Filipinos will keep grappling with poor job prospects. #