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
Global unemployment and unemployment rate (%) 200 8.0 190 7.5 Total Number of Unemployed (millions) 180 170 160 150 140 130 120 110 7.0 6.5 6.0 5.5 5.0 4.5 Total Share of Unemployed in Labour Force (%) 100 2000 2005 2006 2007 2008 2009 2010 2011 2012* 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.
Philippines - Unemployment and unemployment rate (%) 2,900 8.0 Total Number of Unemployed (thousands) 2,850 2,800 2,750 2,700 2,650 7.5 7.0 6.5 6.0 5.5 5.0 Total Share of Unemployed in Labor Force (%) 2,600 4.5 2,550 2006 2007 2008 2009 2010 2011 2012 Total Unemployed (thousands) Unemployment Rate (%) 4.0 Source: NSO s Labor Force Survey (LFS)
Annual real GDP growth rate (%) 12 9 Annual real GDP rate (%) 6 3 0 2001 2003 2005 2007 2009 2011 World Southeast Asia and the Pacific Philippines -3 Source: International Monetary Fund, World Economic Outlook Database, October 2012
Growth rate of Labour Productivity Productivity Level (constant 2005 PPP US$) 120,000 100,000 80,000 60,000 40,000 0.6 4.8 Output per Worker 2011 (constant 2005 PPP adjusted international $) Productivity growth rate, 2011 5.3 4.2 2.6 1.0 2.4 3.8 3.5 6.0 5.0 4.0 3.0 2.0 1.0 0.0 Productivity Growth Rate (%) 20,000-1.2-1.0 0 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.
NCR - Average Daily Basic Pay (July 2011) 900 Total Number of Employed (thousands) 800 700 600 500 400 300 200 100 Minimum Wage as of July 2011: Php 389.00 Below minimum wage: 32 per cent receive less than Php 389.00 a day 0 0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 Average Basic Pay per Day (in Php) Source: NSO s Labor Force Survey (LFS)
Region 5 - Average Daily Basic Pay (July 2011) 250 Total Number of Employed (thousands) 200 150 100 50 Minimum Wage as of July 2011: Php 210.00 Below minimum wage: 60 per cent receive less than Php 210.00 a day 0 0 200 400 600 800 1000 Average Basic Pay per Day (Php) Source: NSO s Labor Force Survey (LFS)
Philippines - vulnerable employment and rate (%) 16000 60.0 Vulnerably Employed ( 000s) 14000 12000 10000 8000 6000 4000 2000 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 50.0 40.0 30.0 Total Share of Vulnerably Employed in Total Employed (%) Vulnerable Employment ('000s) Vulnerable Employment Rate (%) Source: NSO s Labor Force Survey (LFS)
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
Philippines Share of employment by Sector (%) 100 80 Share of employment by Sector (%) 60 40 20 0 2007 2008 2009 2010 2011 2012 Service Industry Agriculture Source: NSO s Labor Force Survey (LFS)
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
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
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 2011-2016 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.
Thank you For more information, please contact: ILO Country Office for the Philippines Tel: 63 2 580 9900 Fax: 63 2 856 7597 E-mail: manila@ilo.org www.ilo.org/manila