According to Philippine Statistics Authority (2016), Employment Rate in January 2016 is Estimated at 94.2 Percent. This sound devastating considering that the 99% of Filipinos are literate. Why are they not incorporate in the labor force?

2 decades ago, there is a popular (untested) indicator of how many people are unemployed. They say, you go out to the mall and see how many people are out there during office hours. These are as much people are unemployed (outliers are business owners/self employed). Right now, this may not hold true because of the different work schedule of the employed sector. The booming entrepreneurship sector is also an outlier in our current society. However, as much as we want to believe. This is how much people are not working and/or looking for a job.

The government is faced with the challenge of adopting a multi-pronged strategy to reduce both unemployment and underemployment, and encourage an environment that fosters improved management and labor relations with a view to increasing both labor productivity and laborer welfare. 

How do we respond?

Change in education system:

Educational pattern should be completely changed. Students who have liking for higher studies should be admitted in colleges and universities. Emphasis should be given on vocational education. Interesting enough, we just shifted to K12 system. Optimistic effects are coming as soon as the K12-ers are ready to be part of the employed force.

Expansion of Employment exchanges:

More employment exchanges should be opened. Information regarding employment opportunities should be given to people.

More assistance to self employed people:

Most people in India are self employed. They are engaged in agriculture, trade, cottage and small scale industries etc. These persons should be helped financially, providing raw materials and technical training.

Full and more productive employment:

The main objective of county’s employment policy should be to increase employment opportunities and productivity of labour. Govt. should adopt a policy that provides employment to all people.

Increase in Production:

To increase employment, it is essential to increase production in agriculture and industrial sectors. Development of small and cottage industries should be encouraged.

High rate of capital formation:

Rate of capital formation in the country should be accelerated. Capital formation should be particularly encouraged in such activities which generate greater employment opportunities. Capital output ratio should be kept low.