Understanding the Rising Unemployment Challenges in the Philippines

Hashada Tomas
5 min readSep 16, 2023

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The Philippines, a vibrant and diversified Southeast Asian island, has long been praised for its rich cultural legacy, attractive scenery, and resilient people. However, beneath the surface of this tropical splendor lurks a serious problem that requires our immediate attention: the issue of high unemployment. The Philippines’ high unemployment rate remains a key issue for the country. It causes widespread poverty and economic suffering, especially for individuals unable to find jobs. The Philippines’ economic progress has been complicated by colonization, political shifts, and global economic trends. This historical setting has influenced the job environment of the country. The Philippine economy has shifted from being predominantly agricultural to having a more diverse structure, with services and industries playing important roles. This transformation, however, has not been consistent, resulting in discrepancies in job prospects across industries. This issue has serious repercussions for the country’s economy, society, and people’s well-being. Poverty, criminality, and inequality can all be exacerbated by high unemployment rates. It also puts a strain on social safety nets and government services. It also has an impact on the country’s potential to achieve long-term economic progress. According to the study, one of the causes of unemployment is overpopulation, overproduction of labor force, and inability to take on available work. The Philippines has witnessed a robust population growth rate of 1.7% on average in recent years. This is greater than the average global population growth rate of 1.2%. The Philippines’ unemployment rate fell to 4.8% in July 2023, down from 5.2% the previous year, and the number of unemployed people fell to 2.27 million, down from 2.6 million in July 2022. The high unemployment rate is due to several causes, including the country’s vast population and a shortage of accessible jobs.

Argument 1: Economic Factors

Reason: Various economic factors contribute to high unemployment in the Philippines.

Evidence:

  1. Disparity in Growth: Economic growth in the Philippines has been uneven, favoring urban areas over rural ones, which directly contributes to unemployment in less developed regions.
  2. Informal Sector Dominance: A substantial portion of the Philippine workforce operates in the informal sector, characterized by a lack of job security and benefits, making these jobs susceptible to economic shocks.

Argument 2: Education and Skills Gap

Reason: There exists a mismatch between the skills possessed by the workforce and the demands of the job market.

Evidence:

  1. Quality of Education: The quality of education in the Philippines, especially in public schools, often fails to equip students with the necessary skills for modern industries.
  2. Skills Mismatch: Many graduates lack the skills required by employers, resulting in high levels of underemployment and unemployment.

Argument 3: Impact on Society

Reason: High unemployment has adverse social consequences.

Evidence:

  1. Poverty: Elevated unemployment levels contribute to poverty, negatively affecting the well-being of millions of Filipinos.

2. Social Unrest: Unemployment can lead to social unrest and political instability, exemplified by protests and demonstrations.

Counterargument 1: Global Economic Factors

Critics may argue that the Philippines’ high unemployment rate is primarily attributed to global economic factors, such as economic downturns, trade imbalances, or external shocks, over which the country has limited control. However, it is essential to stress that while global economic factors do indeed impact unemployment, domestic economic policies and structural issues also play a substantial role. Therefore, the Philippines should prioritize implementing measures to bolster resilience to global economic fluctuations and stimulate domestic job creation through targeted policies.

Counterargument 2: Lack of Government Resources

Critics may assert that the Philippine government lacks the resources to comprehensively address unemployment, given competing priorities like infrastructure development and public health. Nevertheless, it is vital to highlight the interconnected nature of these issues. High unemployment rates can exacerbate other challenges like poverty and social unrest, underscoring the government’s imperative to prioritize job creation and workforce development as integral components of a holistic approach to tackling multiple challenges.

Counterargument 3: Economic Growth in Urban Areas

Critics may contend that the emphasis on economic growth in urban areas is a natural consequence of globalization and should not be viewed negatively. Nonetheless, while urban growth can yield positive outcomes, it is crucial to acknowledge that uneven development may leave rural areas marginalized, intensifying rural unemployment. Therefore, policymakers should strive for more equitable regional development to ensure that economic opportunities are accessible to people throughout the country.

Addressing the high unemployment rate in the Philippines requires a multi-faceted approach that combines economic, educational, and social strategies. Here are some key solutions and recommendations according to some research. First is Implement family planning and reproductive health programs to empower families to make informed decisions and reduce the strain on the job market. Furthermore Reducing occupational immobility is one possible solution that can be applied to the Philippines. There is an oversupply of workers and a good amount of graduates every year who fall into unemployment. By enlisting them in retraining courses, they can gain new skills that are necessary to garner them a place in the workforce.

In conclusion, the issue of high unemployment in the Philippines is a complex challenge with deep-seated economic, educational, and societal roots. It not only threatens the well-being of millions of Filipinos but also hampers the country’s ability to achieve sustainable economic growth and social stability. The multifaceted nature of this problem requires a comprehensive and coordinated approach. The economic factors, including growth disparities and the prevalence of informal employment, contribute significantly to the high unemployment rate. Educational deficiencies and skills gaps further exacerbate the issue, leading to high underemployment and unemployment rates. The societal impacts, such as poverty and social unrest, are alarming and underscore the urgency of addressing this problem. There are various reasons why the unemployment rate is so high in the Philippines. One of the main reasons is that there is a large population and not enough jobs to accommodate everyone. Additionally, many of the programs that have been implemented by the government to try and address this issue have not been effective. This is often due to poor design or implementation. For example, many programs do not target vulnerable groups such as women or young people. It is evident that something needs to be done in order to resolve this issue. The government needs to focus on targeting its most vulnerable citizens and improve program implementation. Taking these steps will help reduce poverty levels and improve economic stability throughout the country.

Reference List:

Trading Economics. (2023, July 15). Philippines Unemployment Rate. Retrieved from https://tradingeconomics.com/philippines/unemployment-rate

Ennis S. Mapa, Ph.D. Philippines Statistics Authority. (n.d.). Unemployment Rate, January 2023 (Estimated 4.8 Percent) [Webpage]. PSA. Retrieved March 09, 2023, from https://psa.gov.ph/content/unemployment-rate-january-2023-estimated-48-percent

J D Urrutia et al 2017 J. Phys.: Conf. Ser. 820 012008

https://iopscience.iop.org/article/10.1088/1742-6596/820/1/012008

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