PH Secures ADB Loan For Labor Market

The Philippines has secured a fresh loan from the Asian Development Bank to fund programs that would aid the government to improve the country’s labor market.

The $500 million policy-based loan would help “create an enabling environment for existing and emerging businesses to flourish and spur more employment,” the ADB said.

Based on government data, unemployment has declined since the economy reopened but the jobs created are low quality and do not pay well at a time of high inflation.

The Philippine Statistics Authority reported that the jobless rate in the country eased to 4.2% or 2.18 million unemployed Filipinos in November 2022.

However, the proportion of underemployed Filipinos, or those seeking longer working hours to augment their monthly income, increased from 14.2% to 14.4% with 7.16 million underemployed in November.

Through the Post-COVID-19 Business and Employment Recovery Program, the ADB will assist the government to create a “more liberalized business and investment environment.”

The program aims to support government initiatives to expand labor market programs and for capacity building to cater to demands in the post-pandemic jobs market.

“With the economy slowly moving towards a sustainable growth path, it is important to ensure private enterprises are supported with policies that make it easier for them to do business and generate employment,” ADB Senior Public Management Economist Sameer Khatiwada said.

“This program is expected to help create jobs, get businesses back into action, and pave the way for displaced workers, youth, and women to return to the labor market by enhancing their skills through training and linking them to good quality jobs,” Khatiwada added.

Source: Philstar