ILO: Labor’s income share still declining B J X G @jxrgarcia
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ASIAN STOCKS TUMBLE AFTER WALL STREET DROPS ON WORRIES ABOUT THE ECONOMY
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ESPITE the growing contribution of workers to the global economy, a study of the International Labour Organization (ILO) revealed that laborers are still taking home a shrinking share of the economic pie. The recent World Employment and Social Outlook of ILO, published on Wednesday, showed a concerning trend: the global total income share of workers has been steadily declining over the past five years, with about $2.4 trillion less going to them annually. The labor income share, which
measures the proportion of an economy’s total income that is earned by employers, remained at 52.3 percent from 2022 to 2024. This is 0.6 percentage points below the prepandemic levels. The ILO’s data, spanning from 2019 to 2024, showed significant disparities among continents. Africa and the Americas both saw a 1.2-percent decline in labor income share, while the Middle East experienced a 0.2 percent decline. In contrast, labor productivity continues to increase at a global level, with a 58-percent jump from 2004 to 2024. “This needs to be changed because it’s increasing inequality,
which will have a disproportionate effect on working people,” ILO Deputy Director General Celeste Drake said. According to ILO, technology is one of the key drivers to the widening gap between labor and capital income. Its study suggests that recent technological improvements have opposite effects on labor income share, depending on the nature of innovation. For instance, data showed that advancements like automation push down the global labor income by 0.3 percent; while others pull it up by creating more labor-intensive tasks. However, despite the potential
boost in output and productivity, ILO’s findings still depict a growing imbalance in the distribution of economic gains. The ILO underscored the importance of equipping each nation’s workforce with necessary education, training, and skills to adapt to the ongoing technological changes. Yet, this situation remains challenging as the number of young people not in employment, education, or training has remained stagnant, even as the global youth population has been increasing since 2015. Given this concerning trend,
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Thursday, September 5, 2024 Vol. 19 No. 324
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BENEFITS UP BY YEAREND B J M N. C @joveemarie
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HE Philippine Health Insurance Corporation (PhilHealth) will increase the rates of most of its benefit packages before the year ends. During the hearing for the 2025 P304 billion budget of the Department of Health and its attached agencies, PhilHealth President and Chief Executive Officer Emmanuel Ledesma Jr. gave assurances that more enhancements are on the way before the year ends. He said the case rates are likely to increase to a maximum of 30 percent across all cases. This is expected to lower out-of-pocket expenses of patients during hospitalization and in the availment of PhilHealth benefits for outpatient care. “Last February 14, we implemented an almost across-theboard 30 percent increase for all the benefit packages of PhilHealth. Currently, we are in the process of studying another round of 30-percent increases, and I commit to this C A
RAINS AND REVENUES Amidst the stormy downpour brought by tropical storm Enteng, a calesa trudges past the Bureau of the Treasury in Intramuros, Manila. Just as the rain soaks the city, the latest report reveals a storm of its own in the nation’s finances. The Philippines’s national debt has surged to P15.69 trillion by July, marking a dramatic increase of P206.49 billion from June due to new domestic and external debt issuance. NONIE REYES
DA CHIEF FLAGS CHALLENGES 115 projects now on Green PUTTING PHL TUNA AT RISK Lane, worth P3.2T—BOI B A P
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GRICULTURE Secretary Francisco Tiu Laurel Jr. stressed the need to confront significant challenges that threaten tuna stocks such as climate change, overfishing, and illegal fishing practices. According to the agriculture chief, climate change affects stock distribution and fishing efficiency, while overfishing, resource depletion, and illegal fishing threaten the country’s tuna resources. “The success of the Philippine tuna industry is a testament to S “DA,” A
T AGRICULTURE Secretary Francisco Tiu Laurel Jr.: “The success of the Philippine tuna industry is a testament to our collective efforts and cooperation, our friendly and constructive competition.”
HERE are now 115 projects approved under the Green Lane, amounting to P3.204 trillion, according to the Board of Investments (BOI). This, the investment promotion agency attached to the Department of Trade and Industry (DTI) revealed, after 13 new projects were issued with green lane certificates in the July to August 2024 period, amounting to P210.46 billion. All these 13 new projects are under the renewable energy sector, the document sent by BOI to reporters via Viber indicated. Of these, four are solar power projects, amounting to P88.33 billion; eight are onshore wind proj-
ects worth P110.73 billion, and one is an offshore wind project worth P11.4 billion. As to the location of these RE projects, the investment promotion agency said a 650-megawatt (MW) solar power plant project will be located in Pangasinan worth P27 billion. Another solar power project (586.738 MWp/457.800 Mwac) will be located in Zambales with a P29.2-billion project cost. A solar power project (304.056 MWdc/217.184 MWac) worth P13.97 billion is also expected to rise in Tarlac. Cebu is also a recipient of a solar power project (421.968 MWdc/303.600 MWac) worth C A
PESO EXCHANGE RATES US 56.6360 ■ JAPAN 0.3894 ■ UK 74.2158 ■ HK 7.2625 ■ SINGAPORE 43.3461 ■ AUSTRALIA 38.0141 ■ SAUDI ARABIA 15.0921 ■ EU 62.5658 ■ KOREA 0.0423 ■ CHINA 7.9541 Source: BSP (September 4, 2024)