Manufacturing, PPP to cure high unemployment


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by Bernie Magkilat
January 5, 2014


The Philippines’ creeping unemployment rate, which is the highest in the region, has been ironic and flagrantly discounting the country’s sterling GDP growth, which is also the fastest in the region. In a services-led economy, growth heavily favors the more educated and makes opportunities for the unskilled impossible. Growth goal has become more exclusive.

Thus, the call to revive the manufacturing sector cannot be underestimated otherwise the economy will continue to stay on its course for a jobless growth.

Edgardo B. Lacson, president of the Employers Confederation of the Philippines (ECOP), has bewailed what he called a “jobless growth” economy.

“Ironically, the country’s sterling GDP growth rate has not been reflected in its unemployment rate, which is the highest in southeast Asia. We are very proud of our GDP which is sterling 7 percent and yet it is jobless. The unemployment figure remains the same, the poverty level is increasing and yet we are saying there is growth,” Lacson noted.

The unemployment rate of over 7 percent translates to around 3 million Filipinos without jobs. Including underemployed of 7 million Filipinos, the country has a staggering total of unemployed Filipinos of around 11 million.


The quickest way, Lacson said is for government to fast track the implementation of the huge infrastructure projects under the Public Private Partnership (PPP) program stressing these are going to spur manufacturing growth in the country.

PPP will spur manufacturing of nails, roofing materials, cement, allied industries. These sectors will produce more and will hire more people,” Lacson stressed.


Lacson noted that while the private sector is also expanding, it cannot match the machinery of the government resources. In the first place, the private sector only follows the government expenditures.

Thr alarming unemployment and the race towards achieving the administration’s goal towards inclusive growth has sent the Board of Investments (BOI) and the Philippine Economic Zone Authority, among other agencies, to scramble for more investments in the manufacturing sector.
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