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Philippine labor market participation drops in January
MANILA, Philippines — A local research group has expressed concern over the drop in labor force participation in January, made worse by fuel price hikes and the measly assistance given by the government.
Citing data from the Philippine Statistics Authority (PSA), IBON Foundation said the number of labor force participants fell by 3.6 million to 45.9 million in January.
This was reflected in the decline in the number of employed persons by 3.3 million to around 43 million.
“This is even more so [concerning] in light of oil price hikes negatively affecting incomes and livelihoods and the Duterte administration’s stinginess with giving ayuda and support to distressed Filipinos, production sectors, and small businesses,”IBON Foundation said.
The National Economic and Development Authority (NEDA) said the Omicron surge pulled the labor force participation rate down to 60.5 percent of the total working age population in January from 65.1 percent in December
IBON said the figures indicate that the economy has not yet recovered from the pandemic and is unable to generate regular or permanent work for millions of jobless Filipinos.
“Even those in irregular or informal work are losing their jobs and joining the millions of discouraged workers discounted from the labor force,”the group said.
IBON said most if not all of the employment losses are in part-time work, citing PSA data that the number of those working less than 40 hours fell by 3.8 million from 16.8 million in December last year to 13 million last January.
It said full-time workers only grew by 766,000 and those “with a job, not at work” declined by 214,000.
By class of worker, the number of self-employed without any paid employee fell by 1.5 million from to 11.4 million.
Employers in their own family-operated farms or businesses increased by just 35,000, while unpaid family workers decreased significantly by 1.8 million.
The group noted that many employed Filipinos are in irregular or informal work, estimating that 16.8 million or 39 percent of jobs are now informal work made up of the self-employed, those working in small family farms or businesses, domestic help, or unpaid family workers. This does not even take into consideration irregular workers in private establishments, IBON said.
The group pointed out that the sectors worse hit by declines in employment during this period are those that also tend to have seasonal or temporary and irregular work, particularly agriculture, and wholesale and retail trade.
Data from the Department of Energy (DOE) showed that year-to-date adjustments stand at a net increase of P20.35 per liter for gasoline, P30.65 per liter for diesel, and P24.90 per liter for kerosene as of March 15.
IBON said that the impact of the price increases on incomes and livelihoods is significant, citing estimates from transport group PISTON, that jeepney drivers are losing up to P363 per day from the fuel price hikes.
It said farmers have also added P2,000 per hectare to their expenses to cover higher fuel costs, while fuel costs are taking up nearly 80 percent of municipal and small fisherfolks’ production cost.
“To make matters worse, the Duterte administration continues its stinginess with ayuda and subsidies,” the group said, citing the government’s plans to give P200 per month or P2,400 for a year to the poorest 50 percent of Filipino households.
It said the P3 billion in fuel subsidies is also limited, going only to 377,443 qualified beneficiaries in the transport sector and 158,730 corn farmers and fishermen.
Source: https://www.philstar.com/business/2022/03/22/2168921/philippine-labor-market-participation-drops-january