Jobs, Poverty and Economic Growth: The Case of Region I in the Philippines

Abstract

The study supports the new Millennium Development Target on poverty eradication and the attainment of inclusive growth and development of the Philippines. It addressed major development issues indicated in the 2011-2016 Regional Development Plan (RDP) of Region 1, Philippines. Among these concerns, include: 1) unrelenting increase of unemployment and underemployment growth; 2) jobless growth and slow economic growth; and 3) persistent swelling of poverty incidence.  Further, the study looked into the current Region 1’s labor and employment situation and its policy implications to the region’s economy and poverty situation to attain the goal of decent, full and productive work to all including women and young people and the profile of the complementation of tertiary graduates and employment opportunities in the region.The characteristics of employment provided by the region were evaluated by examining the various employment indicators and categories, to wit: a) jobs sectoral details; b) jobs by type; c) jobs by sex disaggregation; and d) jobless profile. The employment rate was correlated with economic (GRDP) growth rate and with poverty incidence. Sectoral employment growth rate was also associated with GVA growth rates and with tertiary graduates by discipline in the region.While the economy was expanding, poverty reduction was slow and lagging. The prevalence of poor in the region is an indication that the efficacy of the region’s economy is not sufficient to address existing poverty issues, despite of the region’s intensified focus on socio-economic reforms. Recognizing the importance of employment creation to poverty reduction, some challenges were noted on the state of the region’s labor and employment.  The total employed persons in the region who represent 57 percent on the average (and almost constant over the years) of the productive sector were economically supporting the 43 percent non-workers in the region. Poverty then is not just the outcome of unemployment, but that poverty does not leave one with too many choices on the matter of jobs.The study concluded that employment opportunities that are full, decent, and productive have slow growth for the rapidly growing labor force of the region.  The region’s state of the labor and employment was also affected by the existing economic policies of the government.

Keywords: unemployment, employment, jobless growth, inclusive growth, Philippine Economy, jobs, poverty, economic growth of Region 1, Philippines