FREQUENT typhoons brought by the era of climate change could lead to more job losses in the agriculture sector and threaten the country’s food security in the process, according to local economists.
On Wednesday, the Philippine Statistics Authority (PSA) reported that while unemployment and underemployment improved, the number of employed Filipinos declined. (See: https://businessmirror.com.ph/2025/01/08/typhoons-render-farmers-fisherfolk-jobless-in-november/)
In terms of subsector, the decline in jobs was led by the Agriculture and forestry sector which saw a 1.99-million decline in jobs. The amount includes the 1.6-million jobs in elementary occupations such as farm laborers and fisherfolks.
“I think there are still typhoons expected to come in, so if that’s the case, we will continue to lose jobs in agri unless we improve on agrilogistics,” De La Salle University economist Maria Ella Oplas told BusinessMirror.
“There will definitely be a food security problem with the continuing typhoons unless we upgrade our agrologistics,” she added.
Oplas explained that agrologistics referred to planting, harvesting, sorting, grading, storage, transport, marketing, and others. In short, it is the “whole cycle” and a “comprehensive” approach to agriculture in the country.
Not surprising–Escucha
INSTITUTE for Economic Development and Economic Analysis (Idea) President Alex Escucha told BusinessMirror the job losses in the agriculture sector was no longer surprising. Apart from the typhoons, he said agriculture growth has not been robust.
Escucha said farm growth in the second and third quarters of 2024 contracted 2.3 percent and 2.8 percent, respectively. Palay growth even posted a double-digit decline at 12 percent in the third quarter.
With slow growth, Escucha said agriculture has not been able to attract job seekers and many children of farmers are also not keen on making agriculture their source of livelihood.
“Children of farmers choose not to pursue farming because of the very poor economic and financial returns,” Escucha told this newspaper on Wednesday.
The country’s economists, and even the President himself in his last State of the Nation Address (Sona), Escucha also said, have recognized that food security cannot be attained though self-sufficiency.
He said the lackluster performance of the farm sector and the growth of the population requires the country to not only improve food production but also supplement it with imports.
This is crucial, Escucha said, since the Word Bank projects that the agriculture sector for the next 5 years is expected to grow by a percent or less.
Decline in agri, increase in others?
Meanwhile, Oplas said if there is a decline in jobs in the agriculture sector, this can also mean an increase in jobs in other sectors such as manufacturing and services.
Based on the latest PSA data, manufacturing as well as accommodation and food service activities were the industries that saw the largest increases in employment with an addition of 784,000 and 528,000 jobs, respectively.
For its part, the National Economic and Development Authority (Neda) said the government has recognized the challenges posed by calamities.
Socioeconomic Planning Secretary Arsenio M. Balisacan said the Department of Social Welfare and Development (DSWD) will expand its cash-for-work and training programs to reach climate-vulnerable communities.
These programs include the Local Adaptation to Water Access (Lawa) and Breaking Insufficiency through Nutritious Harvest for the Impoverished (Binhi).
“The effective implementation of the Building on Social Protection for Anticipatory Action and Response in Emergencies and Disasters Program will help minimize the impact of flooding, typhoons, and droughts by preparing communities and implementing protective measures before disasters strike,” Balisacan added.
“The government complements these efforts by developing climate-resilient infrastructure and early warning systems to strengthen agricultural productivity and build long-term resilience.”
Moreover, the DSWD, in partnership with Neda and the Department of Labor and Employment (DOLE), is currently developing a tool to better assess beneficiaries’ eligibility for the Ayuda Para sa Kapos ang Kita Program (Akap) and minimize leakage or duplication of aid. A process monitoring and impact evaluation mechanism will also form part of the program’s implementation to help ensure its efficiency and effectiveness.
“In line with these efforts, we remain committed to achieving our employment targets under the Philippine Development Plan 2023-2028. The 2024 Philippine Development Report, which Neda will release this month, will guide our efforts with evidence-based strategies to create quality jobs and sustain economic growth,” the country’s chief economic planner said. Nonetheless, Balisacan said remains robust given the consistently high employment rates and reduced underemployment.
The latest Labor Force Survey showed a decline in the underemployment rate to 10.8 percent in November 2024 from 11.7 percent in November 2023, indicating better job quality and fewer workers seeking additional work hours or jobs.
“The next step is to expand business and employment opportunities to enable more Filipinos to actively and productively contribute to the economy,” Balisacan said.
“Moreover, we will encourage business upgrading and skills training programs to ensure that these jobs offer competitive wages as our workers raise their productivity by developing their human capital,” he added.
The labor force participation rate (LFPR) in November was 64.6 percent, lower than the estimated 65.9 percent for November 2023.
Youth LFPR declined to 32.4 percent, down from 34.4 percent in the same month last year. Many young individuals cited schooling (402,000) for not participating in the labor force.
Similarly, the female LFPR fell to 53.9 percent, down from 55.4 percent, primarily due to prime-working-age women prioritizing household responsibilities (445,000).
Neda stressed that a multifaceted approach to ensuring an efficient labor market. This approach involves enabling investments in quality job-generating sectors, enhancing skills and workforce mobility, and improving employment facilitation services.
SECRETARY’S STATEMENT
On the November 2024 Labor Force Survey
The November 2024 Labor Force Survey results reaffirm the administration’s unwavering commitment to generating quality employment opportunities and enhancing the livelihoods of all Filipinos. The employment rate has risen to 96.8% in November 2024, up from 96.4% in the same period last year. The number of employed persons increased by 1.385 million compared to October 2024. The unemployment rate has improved from 3.6% in November 2023 to 3.2% in November 2024, demonstrating positive results from ongoing efforts to create more job opportunities. The underemployment rate has also declined from 11.7% in November 2023 to 10.8% in November 2024. Despite these positive developments, challenges persist, such as technological advancements, adoption of artificial intelligence, and climate change, which have impact on youth and women labor force participation. In this regard, we note a decline year-on-year – from 6.92 million to 6.516 million, and 55.4% to 53.9%, respectively.
Key sectors such as manufacturing, accommodation and food services, health and social work, other services, and transportation have shown substantial growth, significantly contributing to job creation. This necessitates continuing efforts to enhance workforce engagement through various employment programs aimed at improving skills and job readiness.
The recently enacted Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act is expected to generate additional income opportunities and stimulate economic growth. The Enterprise based Education and Training Framework Act addresses labor sector gaps by expanding training and upskilling programs in partnership with the private sector. With the enactment of the abovementioned laws, the Department will vigorously continue to foster inclusive growth and ensure equitable access to job opportunities, prioritizing the upskilling and reskilling of the workforce to equip Filipino workers with the necessary skills for today’s dynamic job market. We have consistently updated our youth employability modules to meet industry standards to ensure the absorption of our young new entrants in the ranks of the employed.
Looking ahead to 2025, we anticipate a year of continued economic growth and job creation. DOLE will continue to enhance programs particularly for groups in vulnerable sectors and will remain steadfast towards the realization of a Bagong Pilipinas.
(sgd.)
BIENVENIDO E. LAGUESMA
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