PH remains the worst job market in emerging Asia, month-on-month recovery at par

The Philippines remains the worst job market in emerging Asia, according to the National Economic and Development Authority (NEDA).

While the 7.1% jobless rate posted in March was the lowest since April last year, the reversion of the National Capital Region (NCR) Plus to enhanced community quarantine (ECQ) for two weeks and then to modified ECQ (MECQ) in April would temporarily reverse employment gains.

“The impact is expected to be less severe compared to April 2020 given the more risk-managed approach to the present quarantines,” said the NEDA.

In NCR Plus, (or Metro Manila and the provinces of Bulacan, Cavite, Laguna, and Rizal which altogether account for half of the economy) essential establishments have been allowed to operate, unlike last year’s ECQ.

When 75% of the economy was completely closed last year from mid-March to May, the unemployment rate hit a record 17.6%, or approximately 7.2 million jobless Filipinos.

As quarantine restrictions gradually eased, the country’s jobless rate declined to 7.1% in March, even as 3.4 million Filipinos remained without a livelihood.

Among seven emerging Asian countries, the Philippines’ latest unemployment rate was the highest, according to the NEDA.

India’s unemployment rate was 6.7% from January to February 2021, Malaysia’s was 4.8% in February, and Vietnam’s was 2.4% in March. China’s was 4.2% in December 2020, Thailand’s was 1.9% from October to December 2020, and Indonesia’s was 7.1% in August 2020.

“Compared to the latest unemployment rates of select Asian economies, the country’s unemployment rate remains relatively high. However, the month-on-month improvement in the unemployment rate remains at par with the observed global trend of gradual labor market recovery.

Nonetheless, returning to the pre-pandemic unemployment rate of 5.3% in January 2020 continues to be a challenge.

Managing the current health risks and economic shocks while accelerating the recovery package and vaccination program remains crucial in reopening the economy and sustaining recent employment gains.

Accelerating the rollout of vaccination in the succeeding months is necessary to achieve herd immunity and allow for the gradual reopening of the economy. Likewise, there is a need to further ramp up vaccine deployment especially in high-risk populations and among critical economic front-liners once vaccine supply stabilizes. The effective rollout of these vaccine doses, complemented by the safe and gradual reopening of low-risk areas, will build confidence and allow the economy to further restore jobs and incomes,” said the NEDA.

SOURCE: Inquirer