Pinoys suffer from cyclical unemployment – group

MANILA, Philippines —  Despite improvements in the country’s employment situation, the Trade Union Congress of the Philippines (TUCP) has called on the government to address the problem of “cyclical unemployment.”

Results of the latest Labor Force Survey showed the Philippines continues to suffer from cyclical unemployment characterized by seasonality of jobs, the group said.

“Beyond the jobs data that paint progress, we must be hard-nosed and face up to the disconnect between official statistics and public sentiment as reflected in a recent Pulse Asia survey, which revealed that only 23 percent of Filipinos approve of the government’s efforts to create more jobs,” said TUCP vice president Luis Corral.

The labor survey, he said, should serve as a wake-up call for economic managers to implement the Trabaho para sa Bayan Plan, a 10-year employment roadmap that would supposedly generate jobs.

With the Marcos administration halfway through its term of office, Corral said realizing its promise of more and better jobs has become extremely urgent.

The Trabaho para sa Bayan inter-agency council should work harder amid the potential impact of US president-elect Donald Trump’s tariff and protectionist policies, he said.

Labor Secretary Bienvenido Laguesma said they see continuing economic growth and job creation this year.

The November labor survey reaffirmed the government’s commitment to generate quality employment opportunities for all Filipinos, he said.

Meanwhile, increasing the national minimum wage and suspending the contribution rate hike of the Social Security System (SSS) should be prioritized by Malacañang, Akbayan party-list Rep. Perci Cendaña said yesterday.

Member contribution rates will increase this year by one percentage point to 15 percent.

The Social Security Act of 2018 mandates scheduled contribution rate hikes every two years, with the last one-percent premium increase taking effect on Jan. 1 this year.

Baguio Rep. Mark Go is urging the Social Security Commission to defer the implementation of the rate hike “to ease Filipinos’ burden amid rising costs due to inflation.”

Meanwhile, Sen. Bong Go has expressed support for the proposed temporary suspension of the scheduled SSS contribution rate hike.

“I urge the government’s finance managers to thoroughly assess and consider this proposal to unburden the poor while not compromising the benefits they can expect from SSS,” the senator said.

Go underscored the impact of the contribution hike on minimum wage earners and impoverished workers, pointing out how even a slight reduction in their net take-home pay could mean less money for essential needs.

Go also appealed to the SSS board to evaluate the feasibility of suspending the contribution hike without compromising the fund’s longevity.

Contributions are set to reach 15 percent this year, with employers covering 10 percent and employees contributing the remaining five percent.

The scheduled rate hikes were mandated to enhance the pension fund’s financial stability.

Former SSS chief Rolando Macasaet also expressed support for the rate hike’s suspension. –  Jose Rodel Clapano, Artemio Dumlao