Unemployment in the Philippines By: Francis Roa

Facts and Background Information:

The Philippines has one of the fastest growing economy in Asia. With a GDP (Gross domestic product) growth rate of 6.1%, the countries economy is certainly going on the right path. However, even with a high GDP rate, the unemployment rate in the Philippines is one of the worst in the world.

Economic Analysis:

As I mentioned, the GDP growth in the Philippines doesn't exactly correspond positively to it's unemployment rate. In 2015, the labor force in the Philippines was composed of 40.11 million people. Out of the 40.11 million, 2.65 million were unemployed. According to an article from the Business Inquirer, "the unemployment rate in the country was set at 5.8 percent in January 2016, higher than slower-growing economies like China (4 percent), Vietnam (2.3 percent), Indonesia (5.5 percent), Malaysia (3.5 percent), and Thailand (1 percent)." As of 2017, the latest unemployment rate in the Philippines rose up to 6.6% from 4.7% in 2016.

This high unemployment rate is one of the main reasons why Filipinos seek a better economic opportunity in other countries. This is also the reason why me and my family migrated here in the United States. As of today, more than 10 million Filipinos are currently living abroad and remittances from overseas worker are at an all-time high.

The high unemployment rate also leads to a very high poverty percentage in the Philippines. According to an article from the Philippine Statistic Authority, "In 2015, the average incomes of poor families were short by 24.6 percent of the poverty line.

Possible Solutions:

A possible solution for the unemployment problem in the Philippines is employment subsidization from the government. This means that the price for the resource labor will be decreased therefor giving a firm owner an incentive to hire more unemployed people.

Another possible solution could be to create more jobs through prioritizing education. Education allows people to have skills and knowledge that are required in the work industry. By focusing on education and creating schools for places who don't have access to education, this will help more people have a higher chance in being employed in the future. Building new schools will also create more jobs in the education industry.

Works Cited:

Solutions. (n.d.). Retrieved March 25, 2017, from http://econsilp2014.weebly.com/solutions.html

Philippines Unemployment Rate | 1994-2017 | Data | Chart | Calendar. (n.d.). Retrieved March 25, 2017, from http://www.tradingeconomics.com/philippines/unemployment-rate

(2016, October 27). Retrieved March 25, 2017, from https://psa.gov.ph/poverty-press-releases

Borade, G. (2016, August 14). All About the Economic Problems of the Philippines. Retrieved March 25, 2017, from http://www.buzzle.com/articles/economic-problems-of-the-philippines.html

http://business.inquirer.net/210532/ph-has-worst-unemployment-rate-despite-high-gdp-growth-research

Credits:

Created with images by Public_Domain_Photography - "philippines peace hand" • leoglenn_g - "Pilipinas" • Feed My Starving Children (FMSC) - "FMSC Distribution Partner - Philippines"

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