THE Philippine government’s budget under Bayanihans 1 and 2 to help the labor sector was insufficient given the millions of jobs lost due to the pandemic, according to the World Bank.
In a briefing on Thursday, World Bank Senior Economist for Social Protection and Jobs Yoonyoung Cho said the country’s budget, its scope, and targeting were limited when it came to the labor market needs during the pandemic.
Cho said the total employment and labor market interventions of the country under the two laws amounted to P69.96 billion. The bulk of the amount went to businesses (P47.48 billion) while interventions for workers amounted to P22.48 billion.
“Although the policy direction was right, the budget and scope of labor market specific programs were small for the sheer magnitude and duration of the pandemic shock,” Cho said.
Cho said the pandemic caused millions to lose their jobs and look for additional sources of income. Many jobs in the formal sector were also lost, prompting Filipinos to become self-employed.
She added that managerial jobs were hard to come by while there was a notable increase in elementary occupations—jobs that did not pay very well.
Many women, she also said, were hit hard by the pandemic. Many of them were looking for opportunities to contribute to the household income.
This became evident in the latest Labor Force Survey results which showed that over 2 million women rejoined the labor force in October. (Story here: https://businessmirror.com.ph/2021/12/07/2-million-women-rejoined-phl-labor-force-but/).
Even jobs overseas were lost. Cho said many Filipinos were repatriated, increasing labor market pressures. However, against all odds, remittances from overseas Filipino workers (OFWs) were sustained during this time.
“Covid-19 has shaken the labor market and many jobs were lost,” Cho said in her presentation on Thursday. “More people, especially women, are looking for jobs.”
Bring jobs back
Meanwhile, efforts to help create jobs require addressing demand and supply side as well as addressing competitiveness and productivity issues and strengthening human capital investments.
Cho said in the short-term, the government should focus on bringing jobs back. This can be done by enhancing business confidence such as easing restrictions while policy measures are undertaken for Covid-19 management.
She also said there is a need to strengthen existing support for job creation and workers by customizing services, streamlined processes, clear messaging and creating digital tools.
The World Bank economist also said the government needs to implement clear targeting mechanisms to help disadvantaged groups, linkage with social assistance and active labor market programs, and digital payments.
In the medium-term, Cho said cited a need to address structural challenges. This can be done by enhancing a firm’s competitiveness and productivity, and exploring new or global markets and economic activities.
The economist also pointed to a need to strengthen worker’s employability and skills, as well as revisit labor regulations and social protection in order to be more responsive to the changes in the world of work.
In the long-term, strengthening human capital investments will lead to stronger fundamentals for the Philippines. This means investing in education and even in technical and vocational courses.