‘Poor-quality jobs helped lower unemployment’ B C U. O @caiordinario
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ODAY’S hard times make it difficult for Filipino workers to “lose” or change their jobs, no matter if they are of poor quality, and this may have led to an increase in employment and a decline in unemployment in October, according to local economists. On Wednesday, the Philippine Statistics Authority (PSA) said the country’s employment situation improved, with the jobless rate reaching 4.5 percent in October, the lowest in 17 years.
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The employment situation also
improved with 47.11 million Filipinos employed. This is 3.28 million more than the 43.82 million recorded in October 2021. “In the Philippines, many of those in the labor force are desperate for any kind of job,” Action for Economic Reforms (AER) Executive Director Filomeno Sta. Ana III told the BM. “We have millions who are unemployed or underemployed and who have ‘bad’ jobs.” In an e-mail to the BM, former Dean of the University of the Philippines School of Labor and Industrial Relations (Solair) Rene Ofreneo said even if many Filipinos want to quit their jobs, offers and choices are limited. Ofreneo added that the im-
provement in the employment numbers, particularly the increase in the Labor Force, only showed that Filipinos needed to get jobs after “the long Covid layoff.” Based on PSA data, the labor force increased by 2.02 million to 49.35 million in October 2022 from 47.33 million in October 2021. The Labor Force Participation rate, however, slowed to 64.2 percent. “Incidentally, the unemployment rate has been going down from 5 to 4.5 percent. I have not seen such a figure for a long time. If we reach 3 percent, we might see full employment already,” Ofreneo said. The main problem, he explained, is that the overwhelming numbers are informal in the ever-
growing informal sector and informal in the “informalizing” formal labor market. “The explanation is dire: the necessity of surviving and earning kahit papaano, no matter how menial the available jobs are.”
Digitalization
FOR Ateneo de Manila University economist Leonardo Lanzona Jr., indeed, quality jobs remain a problem in the Philippines. This could also worsen as more jobs are taken over by “cheaper digital technologies.” Lanzona added that the situation could worsen next year with the expectation of recession in many advanced economies. The C A
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Thursday, December 8, 2022 Vol. 18 No. 57
P. | | 7 DAYS A WEEK
HITS RECORD-HIGH P13.64T
Manufacturing posts 5th mo of growth, up 5.1% in Oct
B J E Y. A @jearcalas
THE Philippines’s outstanding debt as of end-October climbed to a fresh record high of P13.64 trillion due to net availment of both local and external loans. The national government’s (NG) outstanding obligation is already 1.56 percent higher than the national government’s projected debt stock level of P13.43 trillion by the end of this year. “The NG’s total debt portfolio reflects a P123.92 billion or 0.92-percent increase from the end-September 2022 level, largely due to the net availment of both local and external loans,” the Bureau of the Treasury (BTr) said in a statement on Wednesday. “NG debt has increased by P1.91 trillion or 16.31 percent since endDecember 2021. NG domestic debt amounted to P9.36 trillion, which is P54.58 billion or 0.59 percent higher compared to the end-September 2022 level,” it added. The Treasury said about twothirds of the national government’s outstanding debt were domestic borrowings while the remaining obligations were sourced externally. The NG’s domestic debt as of end-October stood at P9.36 trillion, P54.58 billion higher than September’s P9.3 trillion. The Treasury noted that the NG’s domestic debt rose by P1.18 trillion since the beginning of the year due to “continued preference for domestic financing to mitigate foreign currency risk.” “For October, the increment to domestic debt was primarily due to the net issuance of government securities amounting to P55.83 billion while local currency appreciation against the US dollar trimmed P1.25 billion,” the Treasury said. The Treasury said the NG’s external debt, meanwhile, rose to P4.28 trillion in end-October from P4.216 trillion in September due to the P118.71 billion net availment of foreign financing. “This was partly offset by the favorable net impact of both localand third-currency fluctuations C A
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SCANNERS AT WORK As travelers enjoyed starting this week the results of not having to go through first screening when they enter the Ninoy Aquino International Airport—a move that reduced long queues of outbound passengers—a whole body scanner was installed at the final stage of check-in. The new technology will ensure the safety of all passengers traveling abroad from the premier airport, according to officials.
NONIE REYES
HE country’s manufacturing output posted its fifth consecutive month of positive growth in October, according to the latest Monthly Integrated Survey of Selected Industries (MISSI) of the Philippine Statistics Authority (PSA). The data showed the Volume of Production Index (VoPI) recorded a year-on-year increase of 5.1 percent in October 2022. This rate is faster than the annual increase of 4.1 percent in the previous month. This year, the country recorded contractions in May and April but since June, the VoPI has been posting positive growth. In October 2021, VoPI expanded at an annual growth rate of 27 percent. “Out of the 22 industry divisions, 14 reported positive annual growth, which was led by manufacture of machinery and equipment except electrical with 81.8 percent annual growth rate,” PSA said. However, eight industry divisions posted annual decreases, with manufacture of electrical equipment exhibiting the largest contraction of 56.9 percent. Meanwhile, the manufacturing sector posted its highest average capacity utilization rate for the year at 72.4 percent in October 2022. S “MFG,” A
METALLIC YIELD MAY BREACH P200B IN ’22 B J E Y. A @jearcalas
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HE Philippines’s metallic production this year may breach the P200-billion mark for the first time in history, driven by elevated world prices and improved mine output. Chamber of Mines of the Philippines (COMP) Chairman Michael T. Toledo said there is a huge possibility that the full-year value of local metallic output would hit at least P200 billion driven by favorable production factors. “There is a big possibility that will happen,” Toledo told the BM in an interview on the sidelines of a recent forum. “If mining is allowed to flourish,
it can definitely bring in increased production, increased export receipt, productivity and employment opportunities. Just allow it to flourish sustainably and responsibly,” Toledo added. Toledo explained that the drivers behind better mineral production performance this year were higher global demand for nickel and copper, depreciation of the peso and volatility in the world market. Bulk of the country’s mineral output is being exported for valueadding and processing in countries with sufficient downstream capabilities. “Mining has been demonized for allegedly being anti-environment. But now, [it is] actually [a] manna
from heaven in a sense, as far as climate change is concerned,” he said. “Most of the renewable technologies rely on the minerals that are mined. Electric vehicles need nickel and solar panels need copper,” he added. The value of the country’s mineral production from January to September rose by 29.21 percent on an annual basis to P175.61 billion driven by “bullish” metal prices and increased mine output. Historical Mines and Geosciences Bureau (MGB) data showed that the value of mineral production during the 9-month period already surpassed by P14.7 billion the P160.91-billion output recordS “M,” A
PESO EXCHANGE RATES US 56.0180 ■ JAPAN 0.4088 ■ UK 68.0059 ■ HK 7.2040 ■ SINGAPORE 41.2382 ■ AUSTRALIA 37.4872 ■ SAUDI ARABIA 14.9024 ■ EU 58.6564 ■ KOREA 0.0425 ■ CHINA 8.0083
Source: BSP (December 7, 2022)