Neda pushes investments in human capital B C U. O @caiordinario
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ILIPINOS and their “American dream” of owning a home can be a growth driver for the Philippine economy in the medium- and long-term, according to the National Economic and Development Authority (Neda). Socioeconomic Planning Secretary Arsenio M. Balisacan said the country’s demographic transition can be harnessed to invest in the country’s human capital. Balisacan also said the Pambansang Pabahay Para sa Pilipino or 4PH Program will drive the growth of the housing sector and support-
ing industries. “We must ensure that our people are healthy, educated, and skilled to harness the demographic dividend. We will work to recover Covid-19-associated learning losses and invest in human capital as a foundation for a globally competitive workforce,” Balisacan said. However, to sustain positive gains in the labor market and reap the demographic dividend in the next two to three decades, Balisacan said the private sector, civil society, and local government units need to collaborate. Together, they must address challenges in the education and health sectors. The government
must also upskill workers through training programs that are responsive to industry standards and demands. Recognizing the potential gains from spillovers and intersectoral linkages, Balisacan added that government will train its efforts on the accelerated rollout of the 4PH Program. “The government’s support for the program will include ensuring the availability and affordability of construction materials, strengthening skills training for workers, fast-tracking the identification of potential beneficiaries and land, and streamlining the process for securing necessary permits,” he
said. While the Philippines recorded a 3.1- percent unemployment rate in December 2023, the lowest in two decades, the government is also focusing its interventions on reducing underemployment by enabling investments that generate higher-quality jobs. The December 2023 underemployment rate eased to 11.9 percent, while the share of wage and salaried workers in private establishments averaged 49.7 percent for January, April, July, and October 2023. Both statistics serve as indicators of job quality.
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Thursday, February 29, 2024 Vol. 19 No. 137
WAGE HIKE TO PROMPT ‘INFORMAL’ JOB SETUPS ■
P. | | 7 DAYS A WEEK
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USINESS groups said a wage hike could leave businesses with no choice but to resort to informal employment arrangements, leading to lack of job security and exploitation of workers. In a letter addressed to the House Committee on Labor and Employment dated February 26, 2024, the Employers Confederation of the Philippines (Ecop), Alliance of Workers in the Informal Economy/Sector (ALLWIES), Philippine Chamber of Commerce and Industry (PCCI) and the Philippine Exporters Confederation, Inc. (Philexport) expressed concern about the proposed P100 national wage hike for workers in the private sector. This, after the Senate recently approved on third and final reading Senate Bill No. 2534 or “An Act Providing for 100 Pesos Daily Minimum Wage Increase for EmS “W,” A
COINING CHANGE The BSP Coin Deposit Machine at Robinsons Metro East, Pasig, aids Bangko Sentral ng Pilipinas campaign to circulate coins, converting 1.45 million in coins into cashless transactions. Robina Gokongwei, head of Robinsons mall operations, advocates wise spending as customers embrace the shift to cashless transactions. BERNARD TESTA
PINOYS’ ‘BONDING’ ADDICTION Labor pushes subsidies for MAY BE DRIVING GROWTH–UBS MSME as wage hike looms
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HE Filipinos’ penchant for family and barkada bonding, as seen through the steady employment growth in sectors such as accommodation and food services, will help drive the Philippine economy and make the country attractive to investors. In an online briefing on Wednesday, UBS Investment Bank Global Research Senior ASEAN and Asia Economist Grace Lim traced the recovery of the labor market in the Philippines last year to these sectors. Apart from accommodation and food services, Lim said jobs growth was also observed in the
administration and support services as well as entertainment and recreation sectors. “The strength of the Philippines’ domestic economy amid a global slowdown serves as the country’s main draw,” Lim said. “When global growth slows and commodity prices fall, generally, that’s when investors come to appreciate the domestic resilience of the Philippines,” she added. Lim noted that spending in hotels and restaurants consumption has risen above 16 percent year-on-year. “And that was S “P,” A
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INIMUM wage earners from micro and small establishments and distressed establishments will need government subsidies so they can cope with the proposed legislated wage hike. Labor groups made the proposal at a hearing on Wednesday of the House of Representatives Committee on Labor and Employment on the proposed bills implementing a P150 to P750 across-the-board wage increase. “To address concerns from employers Sentro ng mga Nagkakaisa at Progresibong Manggagawa (Sentro) believes that it is necessary to
provide subsidies to firms that are struggling or would struggle to compensate workers fairly as a result of these legislative measures. Existing laws and policies exist for this purpose,” Sentro chief policy officer Benjamin Alvero said during the hearing. “These can be expanded and refined as needed through consultation among the social partners," he added. Sentro together with other labor groups made the recommendation amid the concerns raised by private sector organizations that the proposed wage increase can cause mass displacement for micro, small and medium establishments S “L,” A
PESO EXCHANGE RATES US 56.1110 ■ JAPAN 0.3729 ■ UK 71.1936 ■ HK 7.1715 ■ SINGAPORE 41.7554 ■ AUSTRALIA 36.7134 ■ SAUDI ARABIA 14.9617 ■ EU 60.8692 ■ KOREA 0.0421 ■ CHINA 7.7953 Source: BSP (February 28, 2024)