Employment, Productivity and Poverty Reduction in the Philippines
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1 Employment, Productivity and Poverty Reduction in the Philippines Director Lawrence Jeff Johnson ILO Country Office for the Philippines 34 th National Conference of Employers 24 May 2013, Manila
2 Global unemployment and unemployment rate (%) Total Number of Unemployed (millions) Total Share of Unemployed in Labour Force (%) * Total unemployment (millions) Total unemployment rate (%) 4.0 *2012 are preliminary estimates Source: ILO - Trends Econometric Models, October 2012; World Bank, World Development Indicators 2012.
3 Philippines - Unemployment and unemployment rate (%) 2, Total Number of Unemployed (thousands) 2,850 2,800 2,750 2,700 2, Total Share of Unemployed in Labor Force (%) 2, , Total Unemployed (thousands) Unemployment Rate (%) 4.0 Source: NSO s Labor Force Survey (LFS)
4 Annual real GDP growth rate (%) 12 9 Annual real GDP rate (%) World Southeast Asia and the Pacific Philippines -3 Source: International Monetary Fund, World Economic Outlook Database, October 2012
5 Growth rate of Labour Productivity Productivity Level (constant 2005 PPP US$) 120, ,000 80,000 60,000 40, Output per Worker 2011 (constant 2005 PPP adjusted international $) Productivity growth rate, Productivity Growth Rate (%) 20, Brunei Darussalam Cambodia Indonesia Lao People's Democratic Republic Malaysia Philippines Singapore Thailand Vietnam ASEAN -2.0 Source: ILO staff calculations based on the ILO Key Indicators of the Labour Market (KILM) and on World Bank, World Development Indicators.
6 NCR - Average Daily Basic Pay (July 2011) 900 Total Number of Employed (thousands) Minimum Wage as of July 2011: Php Below minimum wage: 32 per cent receive less than Php a day Average Basic Pay per Day (in Php) Source: NSO s Labor Force Survey (LFS)
7 Region 5 - Average Daily Basic Pay (July 2011) 250 Total Number of Employed (thousands) Minimum Wage as of July 2011: Php Below minimum wage: 60 per cent receive less than Php a day Average Basic Pay per Day (Php) Source: NSO s Labor Force Survey (LFS)
8 Philippines - vulnerable employment and rate (%) Vulnerably Employed ( 000s) Total Share of Vulnerably Employed in Total Employed (%) Vulnerable Employment ('000s) Vulnerable Employment Rate (%) Source: NSO s Labor Force Survey (LFS)
9 Not just the level of growth It s not the level of growth, but how to achieve sustainable and inclusive growth. We will not see stability if growth does not lead to decent jobs, or if growth rewards the favoured few over the marginalized many. Ultimately, employment and equity are building blocks of economic stability and prosperity, of political stability and peace. - International Monetary Fund, 2011
10 Philippines Share of employment by Sector (%) Share of employment by Sector (%) Service Industry Agriculture Source: NSO s Labor Force Survey (LFS)
11 UNEMPLOYMENT is only the tip of the iceberg Without work Available for work Seeking work VULNERABLE EMPLOYMENT more than 4 out of 10 Filipino workers forced to accept or to create whatever work is available just to survive
12 The Global Jobs Pact Accelerating employment creation, job creation and sustaining enterprise Building social protection systems and protecting people Strengthening respect for International Labour Standards Social dialogue: Bargaining collectively, identifying priorities, stimulating action
13 In pursuit of inclusive growth Strategies: 22-Point Platform and Policy Pronouncements on Labor and Employment, with the overarching goal of investing in our country s top resource to make us more competitive and employable. PDP through the sectoral LEP 2011 to 2016 provides the strategic directions for labour and employment in the medium-term Decent Work Common Agenda Strategic Objective on creating greater opportunities for women and men to secure decent employment and incomes. Millennium Development Goals. Under Goal 1 for the eradication of extreme hunger and poverty, Target 1B requires the achievement of full and productive employment and decent work for all, including women and young people.
14 Thank you For more information, please contact: ILO Country Office for the Philippines Tel: Fax: manila@ilo.org
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