Jobs picture encouraging
EMPLOYMENT LEVELS were basically unchanged in January despite the entry
of more job-seekers, government data yesterday showed, as the economy
was able to generate 1.1 million additional jobs.
As a result, the number of unemployed barely moved at 2.922 million in
the latest Labor Force Survey (LFS), from 2.917 million last year. The
rate slightly eased to 7.2% in January from 7.4% in the same month last
year although this was statistically insignificant, the National
Statistics Office (NSO) said in a report.
Economists said the jobless rate should ease in the coming months
considering a rosy economic outlook for the year.
A total of 37.4 million Filipinos had jobs in January, up from 36.3
million last year and despite the labor force growing to 40.3 million
from 39.2 million. This came with a 3.2% hike in the number of salaried
jobs and an additional 2% in the number of self-employed.
Unemployment in Metro Manila stood at 12.2% -- the highest in the
country. In Central Luzon and Calabarzon (Cavite, Laguna, Batangas,
Rizal and Quezon), the rate stood at 9.7% and 8.5%, respectively.
Cagayan Valley posted the lowest jobless rate at 2.4%, the NSO said. A
third of the unemployed were high school graduates, while nearly a fifth
were college graduates.
Peter Lee U, economist at the University of Asia and the Pacific, said
higher government spending in third and fourth quarters of last year
contributed to the jobs increase. "The economy is expanding and the
government did what the people were telling them to do, to raise
government spending to pump-prime the economy," Mr. U said.
Based on National Statistical Coordination Board data, government final
consumption expenditure grew by 7.1% and 5.8%, respectively, to P137.70
billion and P124.27 billion in third and fourth quarter of last year.
Vicente R. Leogardo, Jr. director-general of the Employers'
Confederation of the Philippines, also credited government pump-priming.
"The pump-priming program of the government translates to economic
growth and more job creation," Mr. Leogardo said. "This is the reason
why there was a [lower jobless rate] recorded in January," he added.
The labor force participation rate went up to 64.3% from 63.7% last year
as the number of Filipinos 15 years and above increased to 62.7 million
from 61.5 million.
Workers in the services sector accounted for more than half (52.7%) of
the total employed. Workers in the agriculture sector accounted for
about a third (32.6%), while 14.7% were in the industry sector.
"The growth of employment may be attributed to increased private sector
investments and intensified public spending in infrastructure and
agriculture," Malacañang said in a statement.
The underemployment rate also went down, with 18.8% or 7.03 million of
those seeking longer work hours or a new job, from 19.4% or 7.05 million
last year.
Sought for comment, DBS Bank economist Eugene Leow said the "economic
situation in the Philippines is starting to look more optimistic,
leading to more investment and job creation."
"Notably, even though the labor force participation rate rose, job
creation was large enough that the unemployment rate actually fell to
7.2% in January 2012, compared to one year ago," Mr. Leow said in an e-mail.
Ruperto P. Majuca, National Economic and Development Authority assistant
director-general, said the LFS result was expected.
"As we had mentioned before, we have been expecting that the
improvements in the labor and employment situation will continue this
year," Mr. Majuca said in a text message.
"This administration, apparently, has been hitting GDP growth in the
right places. It will be recalled that last year, the economy generated
1.2 million employment even if GDP grew only moderately," he added. --
Daniel Anne Nepomuceno-Rodriguez
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