While May’s employment figures are a positive development, an economist-lawmaker on Thursday cautioned the government that many jobs still remain “fragile” and contingent on recovery support.
House Economic Recover Cluster co-chairman and Albay Rep. Joey Sarte Salceda said the improving vaccination rate and a passage of true stimulus measure will strengthen job creation amid the Covid-19 pandemic.
“As of today, almost 7 percent of the population has received their first dose of Covid-19 vaccines. I am also convinced that as vaccination rates further improve, it will be strategic to embark on a true stimulus program,” he said.
“When people are able to go out of their homes and to more activities, the impact of economic stimulus will be more effective. The first two Bayanihan packages were not stimulus. They were merely rescue packages,” he added.
While a third Bayanihan package remains in order, Salceda said, this must be paired with an aggressive credit stimulus plan for business recovery and new business development.
“I have already asked the government financial institutions to have action plans and facilities in place. More, better, and more durable jobs will come from the creation and expansion of new businesses, and the recovery in aggregate demand,” he added.
Earlier, Salceda said Congress can now approve the proposed Bayanihan to Arise as One Act or the Bayanihan 3 into law as the Department of Finance (DOF) already found P173 billion to fund the first phase of the proposal.
Meanwhile, Salceda said May’s figures are good employment numbers, “but the quality and resilience of these jobs is what will determine the durability of our signs of recovery.”
The unemployment rate decreased from 8.7 percent in April 2021 to 7.7 percent in May 2021. The underemployment rate also fell from 17.2 percent in April to 12.3 percent in May. Meanwhile, the labor force participation rate increased from 63.2 percent in April to 64.6 percent in May.
“This suggests the creation of 1.5 million jobs between April and May 2021. Total employment continues to exceed pre- Covid-19 levels with a net job creation of 2.2 million since January 2020,” Salceda added.