THE national government aims to bring down unemployment to below 5 percent starting in 2024, according to the recently released Philippine Development Plan (PDP).
The administration is looking to bring down unemployment to 4.4 to 4.7 percent in 2024; 4.8 to 5.1 percent in 2025; and 4 to 5 percent between 2026 and 2028.
This year, the government aims to bring down unemployment to 5.3 to 6.4 percent. In the January to October 2022 period, unemployment averaged 5.4 percent.
“Although unemployment is nearing prepandemic levels in 2022 at 5.7 percent, there is much room to improve the quality, productivity, and stability of employment,” the PDP stated.
“By 2028, the target unemployment rate is within 4–5 percent, and the percentage of wage and salary workers in private establishments to total employed is within 53–55 percent,” it added.
The government also aims to increase the percentage of wage and salary workers in private establishments to total employed from the average of 49.6 percent in the January to October 2022 period.
This year, the administration aims to increase wage and salary workers in private establishments to total employed to 50.3 to 50.7 percent; 50.9 to 51.5 percent in 2024; 51.4 to 52.4 percent in 2025; 51.9 to 53.3 percent in 2026; 52.5 to 54.1 percent in 2027; and 53 to 55 percent in 2028.
This will help reduce poverty to 16 to 16.4 percent this year; 12.9 to 13.2 in 2025; 10 to 10.3 percent in 2027; and between 8.8 to 9 percent. The baseline was at 18.1 in 2021.
Good jobs are expected to increase the country’s Gross national income per capita to $4,130 to $4,203 this year and to $4,454 to $4,592 in 2024, which will mark the country’s entry into Upper Middle Income Country (UMIC) status.
The GNI per capita of the Philippines was at $3,640 in 2021, placing it as a low middle income country with a GNI per capita of between $1,086 and $4,255.
Based on the World Bank’s classification, UMICs are economies with a GNI per capita of between $4,256 and $13,205.
The government intends to increase the country’s per capita income to $4,814 to $4,920 in 2025; $5,256 to $5,563 in 2026; $5,645 to $6,056 in 2027; and $6,044 to $6,571 in 2028.
“While navigating external headwinds, the country will rebuild the losses from the pandemic and invest in improving areas where deep weaknesses were apparent in the pandemic response,” the PDP stated. “This development agenda aims to get the Philippines back on track toward achieving upper middle-income country status by 2025.”
Efforts to decrease unemployment and increase incomes is to create green jobs over the medium term, according to the PDP. The government considers this as a key employment generation strategy.
The government plans to create a database of green jobs and implement the Green Jobs Human Resource Development Plan.
These efforts also include intensifying the integration and mainstreaming of green competencies in Technical and Vocational Education and Training (TVET) and education programs.
The government also plans to ensure the stability of the economy; adequate investments in green sectors; feasibility of creating green ecozones; and sustainability of human capital investments.
In terms of safety nets, the government will provide adequate levels of social protection to address the just transition of unskilled workers to green jobs.
“As economies become more involved in greening processes and structures, those who belong to brown occupations may need assistance transitioning to other occupations,” the PDP stated.
