‘Wage hikes will fill gaps of inflation busters’

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LABOR groups are now calling on the government to step up its efforts to tame accelerating inflation and job-generation to address the worrying rise in underemployment.

In a statement on Tuesday after the government reported the latest jobs data for September, labor coalition Nagkaisa said the rise in the numbers of underemployed workers—those who started to look for additional work hours or jobs—exposed the gaps in the government measures to address inflation.

He said this prevented many workers from making ends meet with their existing salaries.

“Escalating inflation has direct correlations with rising underemployment rate as without a pay hike to recover the lost value of their wages, low-paid workers are left with only one option—punish themselves with additional jobs,” Nagkaisa chair Sonny Matula said.

The Philippine Statistics Authority (PSA) reported the number of underemployed workers in September reached 7.33 million, compared to 7.03 million in August.

Economic managers attributed the trend to the rising cost of basic goods due to inflation, which reached 6.9 percent in September, further rising to 7.7 percent in October despite existing government cash aid and fuel subsidies.

“A higher underemployment rate, in short, underlines the need for a wage hike,” Matula said.

For his part, Sentro ng mga Nagkakaisa at Progresibong Manggagawa (SENTRO) Secretary General and Nagkaisa member Josua T. Mata is pushing for a more “robust public employment program and an active agro-industrial policy.”

He noted an intiative, wherein the governnment could consider employing workers, will be to implement measures to mitigate the effects of climate change.

“Climate jobs mean jobs that actually help reduce climate emissions. This would include riverine and coastal rehabilitation, reforestation, renewable energy, etc.,” Mata said.

“Government needs to step in and create jobs as there are many things that need to be done but which the private sector won’t do,” he added.

Nagkaisa said a reinvigorated agricultural and industrial sector will also help generate more quality jobs. 

Image credits: Nonie Reyes