a policy analysis on: philippine development plan for 2011-2016: the 22-point labor and employment...

8/18/2019 A Policy Analysis on: Philippine Development Plan For 2011-2016: The 22-Point Labor and Employment Agenda

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A Policy Analysis on:

Philippine Development Plan For 2011-2016:

The 22-Point Labor and Employment Aenda

A policy analysis presented to the faculty of the

Department of Political and Social Sciences

School of Humanities

Saint Louis University

In partial fulfillment of the requirements in Political Science 34

(urrent Issues! Pro"lems and #hrusts in Philippine $overnment and Politics%

!"bmitted #y:

&affour! 'eli $eaffrey U)

&andiola! *ichael An+elo P)

Di,on! -urt .eus L)

!"bmitted To:

Dr) *ary $race ) &ay/on+

'e"ruary 04! 1024



$% #A&'()*+,( *F TE P)*#LE.

*an in order to survive! to feed himself and his family! he must strive and /or to live)

&efore! ancient man /or for food throu+h huntin+ and +atherin+ to satisfy his tummy) &ut as

time +oes "y! /or "ecame complicated as /ants and needs of man increases /hich resulted to

more occupations) #herefore occupation is essential to satisfy man /ants and importantly to stay

alive) In this /orld! there is a competitive stru++le to have an occupation)

Stru++le for a livelihood! o" or occupation is a conflict /hich may affect an individual5s

/ay of livin+) 6ith some or fe/ /ho are lucy to have a o"! those unlucy may suffer poverty!

hun+er and misery) #he num"er of those /ho are unlucy to have a o" may increase! the

+overnment should "e alarm) #he unemployment pro"lem in the Philippines is a +reat pro"lem

that every"ody should "e alarm7 it is not only the state5s pro"lem! one5s pro"lem "ut every"ody5s

pro"lem)

6hat is unemployment8 Unemployment accordin+ to the International La"our

9r+ani,ation is that :o"lessness occurs /hen people are /ithout /or and actively seein+

/or;) (IL9! 2<=1%) >elatively! hi+h unemployment occurs /hen the economy of a nation is

under recession or fall?slo/do/n of economic activity) (Saylor 'oundation! 1021% #hat

slo/do/n of economic activity is caused "y /hen a++re+ate output declines or decline in

production and ependitures)

#here are four types of unemployment! these are@ 'rictional! Structural! yclical and

lassical unemployment) 'rictional unemployment is that /orers searches some period of time

to move from one o" to another main+ it temporary o"less (aplan! 1<%) Structural

unemployment occurs /hen a la"our maret cannot provide o"s "ecause there is a mismatch

"et/een the sills of the unemployed /orers and the sills needed for the availa"le o"s (Harry!

2<34%) yclical unemployment occurs /hen there is insufficient a++re+ate demand in the

economy to provide o"s for every"ody /ho /ants to /or resultin+ cuts of production and lay

off /orers to meet equili"rium level (-eynes! 100%) lassical unemployment happens /hen

/a+es for a o" are place a"ove the maretBclearin+ level! causin+ the num"er of o"Bseeers to

+o "eyond the num"er of vacancies (Haye! 2<C0%)



Unemployment in the Philippine is a hot issue and also a threat to the economy) #he /ay

of livin+ is de+radin+) Lot of ris could happen) As an individual! depression! stress! malnutrition

and more could affect you) 'amilies really are affected7 poverty could arise and cause more

domino effects such as increase in crime incident! civil unrest and more)

In order to solve unemployment! -eynesian theory recommends that +overnment

intervention isthe solution to reduce unemployment) Since unemployment is caused reduction of

a++re+ate demand for +oods resultin+ for decrease demand of productivity and /orers! -eynes

recommend that +overnment should intervene "y creatin+ o"s throu+h pu"lic funds /hich

/ould cause for demand for /orers) #herefore +overnmentBfunded employments can stimuli

increasin+ money supply and increasin+ +overnment spendin+ (-eynes! 100%)

'or the past decade! :one out of every four employed are from the poor households;

(Philippine La"or and mployment Plan! 1022%) 6hich means that some of them does not have

decent /or or they are underemployed and most especially! those /ho are youth and colle+e

educated people are the ones /ho are affected)

$$% A% A(E,DA !ETT$,(

#he Philippines is considered as EI (Ee/ly Industriali,ed ountry% from the status quo)

Philippines have suffered the pro"lem of hi+h unemployment from the "ecause of the lac of the

+overnment to produce more o"s for its citi,ens! the Philippine +overnment has chan+e

administrations throu+h the past years! yet it5s pro"lem on unemployment still not solve) 6ith

relation to -eynesian theory! the +overnment of the Philippines is not doin+ its very "est in

providin+ o" opportunities to its citi,en and "ecause of this pro"lem the poverty line in the

Philippines is increasin+) #his insufficient o" opportunity affects the country in the so called

:"rain drain;! 'ilipino professionals and silled /orers +oes a"road for "etter o" opportunities

and /a+es to support their family) Some of these professionals are en+ineers! nurses! architects!

and I# specialists) #hese professionals are essential in our countries industriali,ation! health

services and moderni,ation) #hat is one of the reasons /hy our country is left "ehind in

developin+) Unemployment has really a domino effect in the economy! and pro+ression of the

country)



Fo" *ismatch is one of the factors that affectin+ unemployment in the Philippines) #he

D9L (Department 9f La"or and mployment% commits to /hat it seems to "e neverBendin+

issue of providin+ enou+h decent o"s to its citi,ens) It may "e pleasin+ to hear that more than a

hundred thousand o"s are availa"le at the maret! "ut it cannot "e denied that num"ers are still

+ro/in+ in terms of "oth unemployment and underemployment) #his o" mismatch is cause "y

the follo/in+@ (2% 6ron+ choice of colle+e course "ecause of stron+ parental influence in

decision main+! or tain+ a course that is not in demand in the maret) (1% &ein+ too moneyB

driven) Applyin+ for o"s that offer a"oveBavera+e compensation paca+es! lie those "ased

a"road! despite not possessin+ the necessary sills) (3% &ein+ too choosy) Unreasona"le

conditions or demands set "y o"seeers /hen looin+ for or applyin+ to o"s) (4% #he

overqualified sti+ma) 6or eperiences are "eyond employer5s requirements for the o" applied

for G a situation that is not ne/ to employees /ho /ish to s/itch careers or lo/er their standards

ust to avoid unemployment) (% ostBcuttin+ measures of companies for relevant trainin+

pro+rams) Eot all employers allot the required time or "ud+et for trainin+ ne/ hires! /hich are

therefore epected to "e fastBlearners as they +o completely hands on as early as day one) (C%

Usin+ connections in the /orplace) #here are applicants and employees /ho consider their

relationship /ith a topBran person in the or+ani,ation as an assurance of securin+ o"s! /hile

those /ho are more deservin+ end up unemployed or victims of career mismatches themselves)

(American n+lish! 1023%)

Here is some statistical data of the unemployment rate in the Philippines for the past

decade (2<<=B1022%)

#a"le 2@ Unemployment rate (% (2<<=B1022%

ountry 2<<= 1000 1002 1001 1003 1004 100 100C 100 100= 100< 1020 1022

Philippines <)C 20 20 20)1 22)4 22) =) )< )3 )4 ) )3

Source@ IA 6orld 'act"oo

#his data sho/s the unemployment rate of the Philippines for the past 23 years! "ased on

the data +iven7 the unemployment rate in the Philippines has "een decreasin+ since the year of

100 on/ards! the +overnment performance has "een moderate for the years of 100C to 1022)

http://www.sunstar.com.ph/baguio/abroad-mentality-cause-job-mismatch


http://www.solarnews.ph/news/2013/05/02/dole-jobs-mismatch-furthers-unemployment#.Ucp1sDs3ArU


http://www.rappler.com/move-ph/21403-higher-education-matching-skills-with-jobs


http://www.indexmundi.com/philippines/unemployment_rate.html




http://www.indexmundi.com/philippines/unemployment_rate.html





ISSUS

Aside from these a+enda! there are issues and challen+es that the +overnment is no/

facin+) 'irst is the deficit in decent and productive employment +enerated) Despite of

unemployment rate! economic +ro/th is pro+ressin+ to+ether /ith employment rate) #he rise of

employment opportunities in other inBdemand o"s a"road leads to the deficit of professionals

and silled /orers in our country) Some of them mi+rated already and they enoy to the fullest

/hich can affect the +ro/th of our economy in the net years to come) &rain Drain is the

massive impact on the economic aspect of the country) It reflects professionals that mi+rate to

other places in order to +et etensive "enefits from it) #he effects of lo/ economic +ro/th are

"rou+ht "y economic shocs! natural disasters and etreme /eather distur"ance) #he state of the

environment is deterioratin+) Ur"an centers are polluted and /astes are improperly mana+ed)

ontinued deforestation is eacer"atin+ loss of /atersheds! /hich affects /ater supply) Land and

/ater resources are fast depletin+) onsequently! industries! /hich inevita"ly rely on natural

resources for inputs! are threatened) Julnera"le /orers are also at ris "ecause they mostly

depend on natural resources for their livelihood) (PDP hapter <@ onservation! protection and

reha"ilitation of the environment and natural resources to/ards sustaina"le development)%

Another issue the +overnment is currently facin+ is the need for +reater access to

employment opportunities) #/o out of every five employed persons! /orers in vulnera"le

employment are under relatively precarious circumstances) Kouth unemployment is also a factor

"ecause some of them are under the a+e "racet of 2B14 years old) Some of them eperienced

lac of interest in schoolin+ and they are en+a+ed in /or force at the early a+e) ducation

unemployment is also eperienced in the Philippines) As /e can see! every time /e have

+raduates! most of them are unemployed and they have stru++les in findin+ their o"s and it

means that there are lost opportunities for fresh +raduates and for the development of our

economy) #his /ill lead to o" and sills mismatch! /hich is one of the maor pro"lems of the

department) &ecause of lac of opportunities for employment! the pro"lem of hi+h levels of

unemployment of youth and the educated are si+nificantly affects la"or maret)

#% P*L$&/ F*).+LAT$*,



Accordin+ to Fohn *aynard -eynes! in order to solve or rather reduce unemployment

such as durin+ recessions! he recommends +overnment interventions in the economy) -eynes

recommend to t/o types of solutions to the pro"lem of unemployment) #hese are demand side

solution and supply side solution (-eynes! 100%)

Demand side solution advocates that the +overnment /ill necessitate pursuin+ for an

epansionary fiscal policy7 this entails cuttin+ or reducin+ taes revenues and increasin+

+overnment ependitures or spendin+) Decreasin+ taes increase disposa"le income and

therefore help to increase consumption! leadin+ to hi+her a++re+ate demand) In terms of

monetary fiscal policy! it involves reducin+ or removin+ interest rates) Decreasin+ rates /ill

lessen the cost of "orro/in+ and encoura+e people to spend and invest) #his increases a++re+ate

demand and should also help to increase $DP and reduce demand deficient unemployment) Such

measure that the +overnment can do is throu+h social /elfare pro+rams) #hese unemployment

social /elfare "enefits include unemployment insurance! compensation! and su"sidies) 6hile

temporary measures include +overnment funded proects) Althou+h not etensively advocated as

a solution to unemployment! ecept in times of economic crisis7 this is attri"uted to the pu"lic

sector o"s eistence dependin+ directly on the taes from private sectors (Pettin+er! 1022%)

Supply side solution on the other hand deals /ith microBeconomics) It doesn5t aim to

improve +enerally a++re+ate demand! "ut it sees out to overcome deficiency in the la"or maret

and decrease unemployment (Pettin+er! 1022%) Such measure includes "etter education and

trainin+ to improve sills! flei"ility! and mo"ility /hich is also called human capital

development) Spendin+ on education and trainin+ is liely to improve la"or productivity and is

an essential supplyBside policy option! and one favored "y recent U- +overnments) A

+overnment may spend money directly! or provide incentives for private suppliers to enter the

maret) $overnment may also set and monitor standards of teachin+! and force schools to

include a sills component in their curriculum (conomics 9nline! 100<%)

Durin+ the first term of President Eoynoy Aquino! he launches the Philippine

Development Plan (PDP% 1022B120C) It leads to a 11Bpoint la"or and employment a+enda /hich

is to invest in our country5s top resource! our human resource! to mae us more competitive and

employa"le /hile promotin+ industrial peace "ased on social ustice )(#he P)Eoy5s

administration 11Bpoint la"or and employment a+enda! 1020%) #he a+enda is to "e considered a



miture of demand side and supply side solution policy since it includes@ settin+ fiscal and

monetary policies7 and trainin+s! education and seminars for students! unemployed and also for

/orers) Ho/ever in further readin+s! supply side solution is mostly o"serve rather than demand

side solutions) Such part /hich is considered a supply side solution includes the :areer

Eet/or oachin+ of $uidance ounselor for Hi+h School $raduatin+ Students; /hich focuses

on education sector especially "y D9LBA> in partnership /ith DPD! HD! #SDA and

the P> to reduce o" mismatches or underemployment) Sir Henry Fohn Fal"uena! the re+ional

director of D9LBA> and *a5am Aurora Acosta! administrative officer IJ of D9LBA>

states that education is also the priority of the :Philippine Development Plan for 1022B102C@ 11B

point la"or and employment a+enda; to reduce unemployment)

#he Aquino administration launched the :Philippine Development Plan for 1022B102C@

11Bpoint la"or and employment a+enda; as a solution to reduce unemployment) Ho/ever there

are also eistin+ la/s that responds for unemployment such as@ the :La"or ode of the

Philippines quotin+ Article 1=B1=C; /hich tacles a"out employment and security of tenure7

and the :IL9 onvention 201; /hich is the "asis of the creation of the :$SIS Act of 2<< >ule

JII@ Unemployment &enefit :and such social security ratifications /hich are demand side

policies) Also! the Philippine Development Plan for 1022B102C@ 11Bpoint la"or and employment

a+enda; "ased their formulation on the la/s a"ove (6e"er! 1020%)

#he Philippine Development Plan for 1022B102C@ 11Bpoint la"or and employment a+enda

/as "ased accordin+ to the previous years (years "efore 1020% of the Philippine la"or maret

performance especially critici,in+ former President $loria *acapa+al Arroyo) #he Arroyo

administration is remem"ered for lost +round on important measures of development and

pro+ress in the face of economic +ro/th) &ut the Arroyo administration plays up the economic

+ro/th over its termG touted as the "est in over 30 yearsG as the +old standard of its

performance) In addition! the Arroyo administration launches some pro+rams such as the

:omprehensive Livelihood mer+ency mployment Pro+ram (LP%! /hich sees to create

one million o"s lie street s/eepers or Mpulis oysterM and hollo/ "locBmain+! supposedly to

cushion the impact of the +lo"al economic crisis in the country /hich is considered as a

temporary measure for a demand side policy (Lope,! 1020%)



#he plan of the present Aquino Administration is "ased on the previous years) 9fficial

reported +ro/th in +ross domestic product ($DP% durin+ the Arroyo administration (1002B100<%

avera+ed 4) annually compared to 3)< under Aquino (2<=CB2<<2%! 3)= under >amos

(2<<1B2<<% and 1)4 under strada (2<<=B1000%) #he economy epanded "y 4)1 in real

terms since 1002) #he results ho/ever spea for themselves) In terms of unemployment! the

period 1002B100< is the lon+est period of hi+h unemployment in the country5s history /ith the

factual unemployment rate avera+in+ some 22)1 (correctin+ for the +overnment5s not countin+

millions of o"less 'ilipinos as unemployed since 100%) #he num"er of o"less and

underemployed 'ilipinos +re/ to 22)4 million in Fanuary 1020 /hich is 3)2 million more than in

Fanuary 1002! /hen President Arroyo came to po/er) #he 4)3 million o"less 'ilipinos as of last

Fanuary 1020 is an increase of 30!000 from nine years (1002B1020% a+o7 the )2 million

underemployed is 1)4 million hi+her (onde! 1022%)

Since the present Aquino administration loo at the previous economic status to "ase

their future plannin+! system approach is the o"vious decision main+ model used) Seein+ that

the past data a"out the economic status of the Philippines is the "asis of ho/ /ill they decide and

formulate the 11Bpoint la"or and employment a+enda! it serves as an input for the

administration5s decision) A comparison +enerally of the $DP and unemployment rate can

determine the economic +ro/th of the country) Since a chan+e in the political leadership also

includin+ the tiredness of the pu"lic of the tyranny of the past administration! the Aquino

administration formulated a policy?pro+ram that is seen as a chan+e maer or rather as a solution

of the pro"lems durin+ the past Arroyo administration) Hence the Philippine Development Plan

for 1022B102C@ 11Bpoint la"or and employment a+enda is an output policy formulated from the

previous years)

Institutional approach can also "e a decision main+ model that is used "y the Aquino

administration) Since the Arroyo administration faces a lot of issues such as corruption and

increase in unemployment! campai+ns of Aquino focuses on chan+es /hich could "e a factor

/hy he had /on the 1020 election) Hence the policy could "e a result of the promise of President

Eoynoy Aquino to the voters to have a chan+e in terms of economic +ro/th and political

leadership)

&% $.PLE.E,TAT$*,



#hese policy actions are the priority +oals of the PE9K5s Administration! also no/n as

the 11Bpoint la"or and employment a+enda! addresses the improvements of unemployment for

the net years to come) It is classified "y its elements namely@ 9n employment! (2% Address the

la"orBmismatch pro"lem "y promotin+ "etter coordination "et/een employers! academia and

+overnment throu+h stren+thenin+ "oth pu"lic (e)+) Pu"lic mployment Service 9ffices G

PS9% and private sector la"or maret information and echan+e institutions! especially at the

local levels)(1% Invest in the formal and re+ular sills trainin+ and up+radin+ of our services

/orers /ith #SDA and utili,e returnin+ 9'6s to conduct trainin+ so that they may transfer

sills learned a"road)(3% Assist 9'6s in achievin+ financial sta"ility throu+h trainin+!

investment and savin+s pro+rams)(4% omplete a +lo"al tradin+ master plan than aims to

esta"lish /orld/ide tradin+ posts that rely on the la"or! no/led+e and entrepreneurial spirit of

9verseas 'ilipino 6orers (9'6s%)(% 'acilitate the reBinte+ration of returnin+ 9'6s "y

favora"le terms of investment! ta incentives! access to +overnment financial institutions and

other "enefits that are offered to forei+n investors) 9n /orers5 ri+hts! (2% Promote not only the

constitutionally protected ri+hts of /orers "ut also their ri+ht to participate in the policymain+

process) (1% Ali+n our country5s la"or policies /ith international treaties and IL9 conventions in

a sound and realistic manner) 9n social protection! (2% 6or /ith relevant +overnment a+encies

in enhancin+ social protection pro+rams such as social security! /ormen5s compensation! health

insurance and housin+ for laid off /orers /hile stren+thenin+ the mer+ency ommunity

mployment Pro+ram (P% to create o"s immediately so people cans still have income to

spend for their "asic needs) (1% >evie/ the continued deployment of /orers to countries! /hich

are hi+hBand mediumBris areas! as /ell the continued deployment of /orers in hi+hBris

occupations) (3% Audit the 9verseas 6orers 6elfare Administration to rationali,e the

mana+ement of its funds! in terms of the "enefits provided as /ell as ho/ the funds are invested)

(4% 6or /ith the D'A to transform Philippine em"assies! consular offices andPhilippine

9verseas La"or 9ffices (P9L9s% into centers of care and service for overseas /orers "y

assi+nin+ more 'orei+n Service officers to post /here there are many 9'6s and train them in

the needs of the communities they serve) (% 'ully implement the AntiB#rafficin+ in Persons Act

of 1003) Pursue and prosecute those en+a+in+ in ille+al and predatory activities! includin+ fiers!

scammers and especially trafficers that tar+et /omen and children) (C% Address the social costs

of mi+ration "y /orin+ closely /ith communities and families of 9'6s to provide effective



social /elfare services such as counselin+ and preBdeparture orientation seminars) Support the

creation or stren+thenin+ of communityB"ased support +roups for families of 9'6s) (%

Improve the seafarer5s up+radin+ pro+ram7 credit?loanin+ pro+ram! selfBinsurance covera+e

pro+ram! /hich includes life insurance! "urial! disa"ility and dismem"erment "enefits! and

reinte+ration pro+ram) 9n social dialo+ue! (2% >evie/ and evaluate the Department of La"or and

mployment rulin+ allo/in+ the Philippine Airlines *ana+ement to outsource its critical

operations! resultin+ in the possi"le mass layoff of some 3!000 employees) (1% 6or /ith the

private and la"or sector to stren+then tripartite cooperation and promote industrial peace) (3%

>eform la"or ar"itration and adudication systems "y streamlinin+ procedures! removin+ red

tape! and at the same time! restore inte+rity and fairness in the system) nsure that <= of all

pendin+ la"or cases are disposed of /ith quality decisions "y April of 1022) (4% reate an

efficient :oneBstop shop; for processin+ applications for overseas /or and seein+ redress for

+rievances) 9n sustainin+ outcomes and improvin+ internal +overnance ! (2% >evie/ eistin+

plans and pro+rams in accordance /ith the principles of a :,ero"ased; "ud+etin+ system /here

"ud+et allocations are shaped "y their performance and their compliance /ith 9A reports) (1%

>e+ularly paca+e and disseminate information on a+ency "ud+ets! "iddin+ and procurement

documents and SALEs of senior +overnment officials! to ensure transparency and accounta"ility)

(3% nsure that the D9L and its attached a+encies are streamlined and rationali,ed to have

clearBcut and distinct mandates and that qualification standard! especially on eli+i"ility! /ill "e

strictly follo/ed) (4% 6or /ith the S to ensure that performances of +overnment a+encies

and civil servants /ill "e evaluated rationally and systematically throu+h an effective and

measura"le performance mana+ement system to "e approved "y the S such as directly linin+

the S Performance *ana+ement SystemB9ffice Performance valuation System (P*SB

9PS% /ith the D&* 9r+ani,ational Performance Indicator 'rame/or (9PI'% to ensure the

accounta"ility of +overnment a+encies and officials (D9L! 1022%)

9ther attempts that the +overnment tries to act upon unemployment are PhilippineDevelopment Plan for the year 1022B102C! /here it aims for inclusive +ro/th! create

employment opportunities and reduce poverty) Another! it also attains a hi+h and sustaina"le

economic development! equali,e access to development opportunities nation/ide and formulate

and implement effective and responsive social safety nets for the economic processes) Decent

6or ommon A+enda Strate+ic 9"ective is also implemented to create opportunities for "oth



/omen and men to have decent employment and incomes) Lastly! the *illennium Development

$oals to achieve full and productive employment and appropriate /or for all)

D% EAL+AT$*,

Unemployment is "asically a pro"lem that cannot "e totally solved "ecause every year!

there are a num"er of +raduates /ho merely see o"s and some of them are not employed

immediately) Ho/ever! there are opportunities that the +overnment tries to implement and these

opportunities are seen as time +oes "y! from one administration to another) In this case! the

efforts of the current administration! /hich is administered "y President EoyEoy Aquino! is a

stron+ manifestation that unemployment has its lon+Bterm solutions that is cited in the 11Bpoint

la"or and employment a+enda for the year 1022B102C)

#a"le 1@ Unemployment >ate in the Philippines (1001B1023%

ountry 1001 1003 1004 100 100C 100 100= 100< 1020 1022 1021 1023

Philippines 20)1 22)4 22) =) )< )3 )4 ) )3 )1 )3

Sources@ IA 6orld 'act"oo! &ureau of La"or and mployment Statistics

Eot/ithstandin+! from the statistical data sho/n a"ove! the unemployment rate in the

Philippines is stron+ly decreasin+ every year since the administration of President $loria

*acapa+alBArroyo up to the present) Durin+ the year 1001 to 1004! there is a dou"le di+it

unemployment rate /hich "adly affects the economy that time) &ut from the year 100 to 100<!

the avera+e unemployment rate is reached at )C percent! /hich is a +ood feed"ac from the

past administration) Eevertheless! the unemployment rate from 1020B1023 is achieved as lo/ as

)1 percent in its avera+e and it is an indication that the +overnment /as a"le to accomplish their

+oals in a positive manner) 9ne of /hich is the 11Bpoint la"or and employment a+enda of the

PE9K /hich has a "i+ impact on achievin+ a :)1 $DP +ro/th rate for the year 1023 and the

economy +re/ "y C) precent in the fourth quarter of the year 1023! /hich maes the Philippines



as one of the "est performin+ economies in the Asian >e+ion in the said period) Second to hina

/ith ) percent +ro/th); (Lope,! 1024%)

$$$% &*,&L+!$*,


is the ey presented "y the Aquino administration to solve the pro"lem of unemployment offered

to the 'ilipino people) 6ith a "oostin+ +ro/th in the economy! many critics still questions

Aquino capa"ility to solve or rather reduce unemployment /hich is /orsen "y the alarmin+

risin+ of poverty) 6ith such critics! the la"or and employment a+enda is seen ineffective!

insufficient or not satisfactory) 6ell some +overnment officials such as EDA Deputy DirectorB

$eneral mmanuel s+uerra and includin+ Sir Henry Fohn Fal"uena! the re+ional head of

D9LBA> and *a5am Aurora Acosta! administrative officer IJ of D9LBA> acno/led+es

the statements of critics "ut also added in a summari,ed statement@ improvement to the actions

and am"i+uity to mae the policy?policies more effective to solve or reduce unemployment) #he

policy may "e seen ineffective or not satisfactory for some7 the +overnment "odies claim they are

doin+ their "est to solve the pro"lems of unemployment)

In solvin+ the pro"lem of unemployment here in the Philippines throu+h the :Philippine

Development Plan for 1022B102C@ 11Bpoint la"or and employment a+enda;! it is not ust the

pro"lem of unemployment that the +overnment /ants to solve! "ut it is the ey or an element for

the solution of other economic pro"lems includin+ poverty! recession! and such) Solvin+

unemployment or reducin+ unemployment is vital for the economic +ro/th of the nation)

#he effects of unemployment are not ust economic "ut also social) Eot solved! crime

rates /ill rise "ecause people are una"le to meet their daily needs to survive throu+h /or)

Divorce /ill rise "ecause couple families cannot solve their financial pro"lems) Eum"er of

"anrupt people! homeless people and such /ill rises! as do the rates for mental and physical

illness due to stress) Psycholo+ical effects also too place) Suicide of an individual! murder

incidence of a family occurs in households ust "ecause of over/helmin+ economic pressure! and

one "i+ factor is unemployment) It is all "ecause financial disaster essentially unemployment that

pushed them over the ed+e) In addition the unemployed person also suffers from lose of self

respect and di+nity in the society)



#here is still some hope to solve or reduce unemployment in our country) #he "est no/n

solution is throu+h education) Some says reformin+ our education is the "est /ay such as the B

21 pro+ram) Some /ould su++est even more detailed actions) #hat our educational system must

"e focused "y the +overnment since education is the +ate for employment "ut also the steppin+

line for career orientation) ducation is a ey to chan+e and pro+ress7 "oth chan+e and pro+ress

+o hand in hand) #herefore educational system should "e sta"ili,ed and chan+ed to prepare the

youths accordin+ to true values of life and especially to the maret demands) All the youths

should "e prepared in colle+es and universities) In some instances! solvin+ the pro"lems of our

educational system! or reformin+ our educational system could also solve other pro"lems! in

such the pro"lem of unemployment)

$%P*L$&/ )E&*..E,DAT$*,


of the current administration of President Eoynoy :PBnoy; Aquino Fr) can "e considered as an

effective policy to reduce the pro"lems of unemployment /hich is a threat to the economic

+ro/th of the Philippines) It is effective since it remains a sta"le rate7 there is a decreasin+

percenta+e rate althou+h not that profound) #he a+enda plan of the Aquino administration could

"e seen seemly effective! "ut not satisfactory) Hence! the loopholes of the policy should "e focus)

Also in addition! some plans of the policy its elements! +oals or parts of the policy are not

implementin+ effectively and even some are not really eecuted! practiced! or put into

application) Some of these elements or parts included in the 11Bpoint plan a+enda /hich seemly

is not eecuted or put into application are! or not presently effective@ addressin+ la"or mismatch

(e)+@ the presence of +uidance counselin+ coaches in decision main+ of careers of hi+h school

students%! participation of /orers in political participation such as in policy main+ /hich is not

satisfactory! enhancin+ of social protection such as social security! unemployed and /orers

compensation! health insurances for "oth /orers and unemployed! and housin+ laid off /orers!

and more) Plus! there are also pro"lems that the policy of the administration did not solve such as

"rain drain of professionals! youth unemployment! human career mana+ement and more)

In terms of supply side solutions such as education and trainin+ to improve?enhance

human capital development! the Philippine Development Plan for 1022B102C@ 11Bpoint la"or and

employment a+enda can "e seen or felt presently) Such pu"lic services offered "y #SDA!



966A and D9L to enhance services to offer a"road can "e seen as an effective supply side

solution) Ho/ever! demand side solutions to solve unemployment lac presences or eecution

here in the country) an you see unemployment compensations /here the +overnment houses

unemployed people for their daily needs such as food8 #he pro"lem of providin+ social services

for the unemployed is seen "y such factors such as@ the covera+e of the services!

inadequacy?limits of "enefits! lac of resources lie financial! and coherence or consistency of

delivery of services) 9ne recommendation to improve social services? protection to the

unemployed is to stren+then and mo"ili,e the civil society +roups and la"or unions) Stren+then

and mo"ili,e the civil society +roups and la"or unions can help them participate in policy

main+ lie the A"ayan Partylist to le+islate a la/ (House &ill Eo) 00303!% that /ould

+uarantee re+ular o"s to /orers! allo/in+ /orers access to security of tenure /hich eliminates

periodical unemployment) 9r pressuri,es the la/ main+ "ody to create la/s such as the $SIS

Act of 2<< >ule JII@ Unemployment &enefit /hich caters to the unemployed) ($lo"al Eet/or!

1022%

In terms of la"or mismatch and career mana+ement! the +overnment should "e "usier in

colla"oratin+ at schools especially hi+h schools to mana+e the careers that the students /ould

/ant to pursue) amples such as :areer Eet/or oachin+ of $uidance ounselor for Hi+h

School $raduatin+ Students; or the :Eational areer Assessment aminations; /hich are

desi+ned for incomin+ colle+e students is still considered insufficient in solvin+ la"or

mismatches) Some micro recommendation especially for individuals is that students must choose

their courses?de+rees carefully! "ut its effect is small yet meanin+ful in small social units

especially for the family) 9ne system /ide macro scale recommendation that the +overnment

could do or decide is throu+h quotas in terms of population of a course or vocation /hich is

currently applied /ith the colla"oration of HD and /ith the universities) Ho/ if the

+overnment could do a headcount to all the country5s industry of /hat speciali,ation it needs and

then sets the needed num"er of such o"s and strictly implement it) And also it is pleasant if notonly fe/ courses or vocation is applied /ith quotas "ut all or maority of the needed

speciali,ation of la"or)

Unemployment and "rain drain as concepts of economics and la"orBmaret are

interconnected to each other) Hi+h unemployment can result /orers such as professionals to



find o"s a"road or overseas or totally mi+rate) >eceivin+ countries can also eperience

unemployment since the demand for speciali,ation of /or decrease since it the la"or is allotted

"y the emi+rant /orers) Philippines eperience the pro"lem of unemployment and "rain drain at

the same time) Althou+h "rain drain is "eneficial such as@ the Philippines is offerin+ to the

international la"or maret human resources especially in terms of health care /hich provides

remittances! "rain drain is an economic cost loosin+ value of silled or professional /orers

therefore loosin+ capital (Sprin+ N >outled+e! 100<%) Also addin+ up the decrease of

professionals in such sectors such as in the Philippines the sector of health care! it could lead to

harm in the health services of the country) #he solutions for solvin+ "rain drain not clarified in

the Philippine Development Plan especially specified in the 11Bpoint la"or and employment

a+enda! ho/ever if there is?are eistin+ la/s or policy it is still insufficient and not satisfactorily

due to current situations) #he action that the Philippines as a system /ide macro decision can do

is to create preventive measures) Such as in India! althou+h sufferin+ stern "rain drain every year!

the Indian +overnment has not to adopt strict policies "ecause they "elieve that the overseas

talent /ill eventually contri"ute to the nation in the future) In $ermany! they esta"lished a

+overnment funded initiative called $AIE to assist $ermans /orin+ a"road to return to their

home country) 9ther countries (S/it,erland! Austria! and 'rance% have similar initiatives (Lin!

1020%)

A&',*LED(E.E,T

• Sir Henry Fohn Fal"uenaB the >e+ional Director of D9LBA>

• *a5am Aurora AcostaB the Administrative 9fficer IJ of D9LBA>

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