THE coronavirus disease pandemic could result in the possible unemployment of at least 30 million Filipinos—half the labor force—without the necessary economic stimulus interventions, the chairman of the House Committee on Economic Affairs said on Tuesday.
At the hearing of the House Defeat Covid-19 Committee economic cluster, AAMBIS-OWA Rep. Sharon Garin said: “The effect of Covid-19 is possible unemployment of at least 30 million Filipinos,” as she cited the overall assessment of the panel. This umployment will affect workers with daily wage and informal workers.
According to Garin, other sectors that could be affected are overseas Filipino workers, those from micro, small and medium enterprises, from production and sale of goods, food preparation and delivery services, banks and financial services and utilities services involving power, energy, water and telecommunications.
Garin, an economist, said the House seeks to address this possible unemployment by passing the proposed P485-billion Philippine Economic Stimulus Act (PESA).
The proposed economic stimulus package is under deliberations of the Defeat Covid-19 special committee.
“With all the inputs from members, agencies and private sector, the interventions are grouped in four parts, all with the same purpose: maintain employment level and targeted assistance to industries so that they retain employment levels. Primarily, the interventions are not direct amelioration or doleouts, otherwise it won’t be sustainable and affordable,” said Garin, also the cochairman of the House Defeat Covid-19 Committee economic cluster.
The P485-billion economic stimulus package will include: P20 billion for test kits to build up consumer and business confidence; P130-billion loans under Land Bank of the Philippines, Development Bank of the Philippines, Small Business Corp., and Philippine Guarantee Corp.; P25-billion capitalization for National Development Corp.; P150 billion for individual subsidies under Department of Labor and Employment; and P160 billion for sectoral assistance of Department of Trade and Industry, Department of Tourism, Board of Investments, and Department of Transportation.
Earlier, Marikina Rep. Stella Luz Quimbo, also a co-chairperson of House Defeat Covid-19 Committee economic cluster, said the country loses around P18 billion for each day of lockdown, as coronavirus fears could hinder an effective reopening of the economy.
She also pushed passage of an economic stimulus plan, citing the two main obstacles in reopening the economy—first, the liquidity concerns of firms, especially those that did not have revenues during the lockdown yet continued to pay overhead costs, including payroll and interest expenses; and two, that so-called “fear factor” especially among workers, because the country has no mass testing.
“[Of the P18 billion] P12.5 billion [are] in unearned wages—meaning value of output of daily wage and piece rate earners—and payroll costs shouldered by non-essential businesses during lockdown plus about P5.5 billion in unearned corporate income,” added Quimbo in a separate text message to the BusinessMirror.
Image credits: Nonie Reyes
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