RP unemployment rate rises to 8%, says NSO

Unemployment rose to 8.0 percent in April from 7.4 percent in January as economic growth began to slow down amid soaring food and energy prices, the National Statistics Office said in its quarterly employment report yesterday.

At Malacañang, Press Secretary Jesus Dureza dismissed the figure as normal, citing the huge number of fresh graduates scouting for jobs.

“We also have to note the positive modest employment growth in the agriculture (0.4 percent) and service (0.2 percent) sectors although the unemployment rate rose by nearly 0.6 percent,” presidential deputy spokesperson Lorelei Fajardo said.

Manila and the surrounding provinces, which combined account for more than half the country’s economic output, had double-digit jobless rates, topped by Manila’s 13.8 percent.

Of those who were employed, 35.7 percent only had part time work of less than 40 hours a week, NSO said. The number of underemployed reached 6.6 million during the period.

Economic growth eased to 5.2 percent in the three months to March amid rising oil prices, the slowing US economy and the strong peso, which impacted on exports and pushed up inflation.

The economy grew 7.2 percent for the whole of 2007. Some 49.6 percent of those employed worked in the services sector, 35.5 percent in the agriculture sector and 14.9 percent in industry.

Unskilled workers made up 32.6 percent of those employed, while farmers, forestry workers and fishermen accounted for 17.3 percent.

Based on the NSO data, 40 percent of the unemployed completed college education while five of every 10 jobless belong to the 15 to 24 years age group.

Safety nets pushed

Labor Secretary Marianito Roque ordered the creation of safety nets to stem the rise in joblessness.

Roque said he has directed the labor department’s regional offices to closely monitor the employment situation in their respective areas and undertake appropriate interventions.

“Interventions are necessary as the NSO survey showed a weakening labor market due to increasing fuel prices that weighed down the country’s economic growth early in the year,” Roque said.

Based on NSO figures, the number of unemployed increased by 222,000 to reach 2.914 million in April 2008.

However, Roque noted modest employment growth in the agriculture and service sectors as well as in the number of wage and salary workers.

Roque said DOLE programs and interventions have greatly minimized the decline in employment brought about by current economic crises.

Aside from the influx of fresh graduates, labor officials also cited the prevailing mismatch between available skills and vacancies as reason behind the high unemployment rate.

The Trade Union Congress of the Philippines, the country’s largest labor group, said that while the high jobless figure in April is normal, the government should intensify efforts to improve the employment situation in the country.

“We hope the government would undertake mitigating programs because there might be further rise in unemployment as a result of the rising power cost in the country,” TUCP spokesman Alex Aguilar said.

No ban on child workers

The labor department clarified yesterday that there is no ban on the hiring of young workers 15 to 18 years old.   

Labor Undersecretary Arturo Sodusta said an employment permit from DOLE is required to prevent abuse.

“No employer shall deny opportunity to any such youth applying for employment merely on the basis of lack of a DOLE work permit or certificate of eligibility for employment,” Sodusta said.

Sodusta issued the advisory in response to numerous queries from concerned employers and workers regarding work certificates and permits and other pertinent issues regarding employment of young workers.

He said that based on the Labor Code, a child can work eight hours a day, but no more than 40 hours a week, except in the night or the so-called graveyard shift.

“This law, however, is silent with regard to the issuance of a permit or certificate to those who are 15 but below 18 years of age, although these young persons are still considered children,” he added.

The law also states that every child should have access to formal and non-formal education, including alternative learning systems.

“Thus, where a young person 15 to below 18 years of age is employed, the employer shall provide him or her with access to at least elementary or secondary education, including alternative learning systems,” Sodusta said. – With Marvin Sy