Today I Learned: Why Good Jobs Are Hard to Find in the Philippines

Hearing the gripes of our kababayans struggling to land a quality job has been a familiar narrative. It's a persistent problem even as reports indicate that the number of unemployed Filipinos continue to decline.

The Philippine Statistics Authority (PSA)'s July 2024 report shows a drop in the number of jobless Filipinos—from 4.9 percent in July of last year (equivalent to 2.38 million) to 4.7 percent this year.

Pero bakit ang hirap pa ring makahanap ng trabaho?

This was the topic in a recent PumaPodcast discussion where journalist Tatiana Maligro interviewed Sonny Africa, the executive director of IBON Foundation. This non-profit research institution focuses on providing educational and informational resources to enhance awareness and understanding of socio-economic issues.

According to Africa, the lack of quality jobs in the Philippines stems from the structural decline in our agriculture sector, which has reached its smallest share of the economy in the country's history. Similarly, our manufacturing sector is at its lowest point across 75 years.

"So, kung maghahanap ka ng pinaka-quality, pinaka-regular, at pinaka-formal jobs, or kung maghanap ka ng economic dynamism na lumilikha ng isang talagang vibrant job market, ang hahanapin mo diyan ay kung gaano kalakas ang iyong industrial base," he pointed out.

"But the thing is, if you're diminishing your Filipino industrialists, if you're replacing them with foreign manufacturers na nasa export zones, which import 80 to 90 percent of their products, tapos ang mga Filipino ay nasa assembly testing lang, this doesn't equate to quality jobs in terms of economic value," he explained.

ALSO READ

Up to 80 Percent of Filipino Workers Seek Jobs Abroad, Says Survey

These Are the Highest-Paying Jobs in the Philippines Right Now

What Defines a Quality Job?

Africa says a high-quality job is characterized by three things. First, it should be stable enough, with consistent income month-to-month. Second, it should provide a decent pay that will allow a worker and his or her family to enjoy a decent quality of life. "Hindi lang poverty level or subsistence level. Kailangan may quality of life na naaabot," he clarified.

Third, a high-quality job can safeguard a worker against economic fluctuations, such as those caused by pandemics or global crises. "Kailangan may protection ang workers from the economy na kahit magkaroon ng kaunting disruption, tuloy pa din ang kanilang kita at ang standard of living ng kanilang pamilya." 

The Philippines continues to struggle in achieving these standards, said Africa. "[Firstly], ang layo-layo natin from an economy that's creating stable jobs. Secondly, ang layo din natin from an economy creating decent incomes," he said, noting that out of the country's 17 regions, 16 have minimum wages lower than those from 35 years ago.

During the pandemic, there were ayudas provided, but the overall social protection system remains inadequate, noted Africa. The health benefits are likewise limited.

Are Foreign Investors Really Boosting Philippine Manufacturing?

The administration of President Bongbong Marcos Jr. fosters a favorable business environment for foreign investors. But Africa emphasized a crucial point: foreign investments are primarily profit-driven and not necessarily intended to create jobs and develop our economy. Foreign investors will only create as many jobs as are profitable for them. Therefore, relying solely on them to establish a Filipino manufacturing base is not sustainable.

When Intel, a leading tech giant, established operations in the Philippines, the government anticipated not just job creation but also the enhancement of Filipino workers' skills to position them as competitive chip makers on the global stage. But the company's three-decade presence didn't significantly transfer skills to local semiconductor producers, said Africa.

Fifteen years after Intel moved to China for cheaper labor, the U.S. government now promises to help grow the Philippine semiconductor industry. U.S. Commerce Secretary Gina Raimondo visited in March, aiming to double the current semiconductor facilities.

"That's exactly what Intel did and promised over the 35 years that they're here," said Africa. "We're giving away everything—subsidies, support to industrial sites, all the tax breaks, fiscal incentives, just to make [the foreign companies] come here. But when they come here, what do they leave behind? Nothing."

Without the Philippine government implementing specific policies on foreign companies—such as mandating technology transfer agreements and eliminating restrictive contracts for Filipino employees—the country risks missing out on substantial long-term benefits from these investments.

Invest in Local

To strike a balance, Africa said the government should welcome foreign investors while also supporting the growth of our local industries. This approach will lead to the creation of more high-quality jobs for Filipinos.

"Higher pay comes from increased productivity. Greater productivity is achieved through advanced science and technology, which cannot come from overseas work or agriculture due to their limitations. This advancement will come from developing the Filipino industries," Africa said.

Furthermore, a strong local economy can boost government revenue, allowing for better funding of social protection programs to safeguard Filipinos from economic disruptions.

Rather than blaming job-seekers for not having the right skills or for job mismatches, Africa said the government should focus on creating more opportunities by developing local industries and modernizing agriculture. Without these efforts, we'll stay in the same predicament, repeatedly facing the same challenges.