ECONOMIC POLICY MONITOR 2013: ADDRESSING THE JOBS CHALLENGE TOWARD INCLUSIVE GROWTH
This fourth issue of the PIDS Economic Policy Monitor (EPM) focuses on the need to pursue inclusive growth through the expansion of quality job opportunities. It revisits the jobs issue and provides recommendations on how to address it, taking into consideration the socioeconomic and political landscape and historical experience of the Philippines. The theme chapter looks into the causes of the economy`s failure to generate substantial and quality job opportunities by examining the effectiveness of minimum wage and other labor regulations to determine if they are growth and welfare enhancing. The study finds that raising the minimum wage reduces employment in smaller firms, lowers household income, and increases the probability of falling into poverty. Along with recommendations for a minimum wage reform, expansion of gainful job opportunities from the labor-intensive manufacturing sector, and greater investments in education and other human development aspects, the study proposes a 12-point agenda called "Job Expansion and Development Initiatives" or JEDI.
CLARIFYING THE JOBS CHALLENGE (PIDS PN 2014-17)
The jobs challenge is not simply the lack of job opportunities. A more nuanced view is the inability of the common person to earn a decent living through productive employment or self-employment. Viewing the issue as such reveals the other dimensions of the lack of job opportunities issue. This Policy Note clarifies the jobs challenge and its implications for policy based on Paqueo et al. (2014). Defining clearly the jobs challenge illuminates the issue much more clearly and highlights the weakness of viewing it as simply a problem of lack of job opportunities. The Note argues that the jobs challenge extends beyond those who are currently unemployed. It should include those who are currently employed but are earning below subsistence. These workers require much more than just having and keeping their jobs. Finally, there are those who are earning beyond subsistence but for whatever reason still want to work more hours.
IS GROWTH REALLY JOBLESS? (PIDS PN 2014-16)
Many people have commented that the stellar economic growth in the country since 2012 has not been subsequently accompanied by a significant reduction in poverty or by increased employment. At the 2013 Philippine Development Forum, the development community suggested that the government should focus its efforts on further accelerating structural reforms to facilitate sustained and inclusive growth and development, which will create jobs and reduce poverty. Subsequently, the World Bank (2013) re-echoed the suggestion for a more inclusive growth agenda. This Policy Note examines whether or not it is fair to characterize the country’s economy as having jobless growth, and discusses related issues.
The Labor Code contains several provisions intended primarily to protect workers. Among its objectives are (1) prohibit the termination of private employees except for just or authorized causes as prescribed by Articles 282 to 284 of the code; (2) recognize the right to form a trade union expressly, and the right of a union to insist on a closed shop; and (3)allow strikes as long as they comply with the strict requirements under the code, otherwise the workers who organize or participate in illegal strikes may be subject to dismissal. Philippine jurisprudence holds that any doubts in the interpretation of law, especially the Labor Code, will be resolved in favor of labor and against management. Due to this bias, some of these labor policies can have deleterious effects on the industry, such as increasing unemployment and eventually retarding skill formation.
1. What is the Development Policy Research Month (DPRM) about?
DPRM is an annual celebration mandated by Presidential Proclamation 247 signed on September 2, 2002. The observance of the DPRM is meant to elevate people’s awareness and appreciation of the value and importance of policy research in program planning and policymaking. Policies as well as programs and projects of the government would have more backbone and direction if they have a strong research base compared to the intuitive strategy of whimsical decisionmaking. Para hindi “suntok sa buwan” ang mga polisiya, proyekto at programa ng gobyerno.
2. What is the role of the Philippine Institute for Development Studies (PIDS) in the celebration of the DPRM?
PIDS is the lead government agency in the annual celebration of the DPRM owing to its important role as the Philippines’ leading state think tank. The DPRM Proclamation that designated PIDS as lead agency in the DPRM celebration was signed in 2002 during the Institute’s 25th founding anniversary.
How to Use the DPRM Banner Template
PIDS, as the agency designated to lead and coordinate the activities for the annual observance of the DPRM, is inviting different agencies and institutions to participate in this year’s celebration. An agency can participate in the celebration by organizing events and displaying a banner/streamer within their institution’s premises. A suggested template of the streamer is shown below:
1) The DPRM banner may be downloaded in actual size (recommended size is 350 cms x 150 cms) from this URL: http://dirp4.pids.gov.ph/webportal/CDN/HIGHLIGHTS/DPRM12_streamer.zip
2) Open the JPEG file you downloaded in Adobe Photoshop. The JPEG template looks like this:
3) Insert your agency/company’s logo and name as shown in the example below
(Example shows banner by CSC for 12th DPRM).
Seminar Forum on Addressing the Jobs Challenge Toward Inclusive Growth (23 September 2014)
Labor Policy Analysis for Jobs Expansion and Development Initiative (JEDI)
by Vicente Paqueo, Aniceto Orbeta, Leonardo Lanzona and Dean Dulay
The Effects of Minimum Wages on the Philippine Economy
by Leonardo A. Lanzona, Jr.
Regulatory Impact Statement:Employment Insurance
by Benjamin Dalumpines III, OIC Chief – Institute for Labor Studies, Department of Labor and Employment
The Manufacturing Industry Roadmap
by Ms. Ma. Corazon Dichosa, Executive Director, Investment Policy and Planning Service, Department of Trade and Industry
Review and Assessment of Programs Offered by State Universities and Colleges
by Dr. Rosario Manasan, Senior Research Fellow, PIDS
Philippine Qualifications Framework
by Marissa G. Legaspi, Executive Director, Planning Office, TESDA
DPRM Conference (28 August 2014)
Labor Policy Analysis for Expansion and Development
by Vicente Paqueo, AnicetoOrbeta, Leonardo Lanzonaand Dean Dulay
The Philippine Manufacturing Industry RoadmapAgenda for New Industrial Policy, High Productivity Jobs and Inclusive Growth
by Rafaelita M. Aldaba
Inclusive Growth through Decent and Productive Emplyment
by Director Dominique R. Tutay, DOLE-Bureau Employment of Local Employment