2016年-世界发展银行全球_Republic_of_the_Philippines_Labor_Market_Review___Employment_and_Poverty_96页_3mb

Summary of the Philippines Labor Market Review

Core Content

This report provides an analysis of the labor market in the Philippines, focusing on the relationship between employment and poverty. It highlights the challenges faced by workers, particularly the poor, in accessing quality jobs and how labor policies can be improved to address these issues.

Main Concepts

• "Bad" Jobs: Jobs that are low-paid, informal, or involuntarily part-time, temporary, or casual. These are associated with a higher risk of poverty.
• "Good" Jobs: Jobs that pay above the low-pay threshold or are formal, unless they have characteristics that make them "bad".
• Earning Capacity: Proxied by the household's labor income per earner.
• Informal Employment: Workers who do not meet at least two of the following criteria: written employment contract, employer-provided social insurance, or protection from arbitrary dismissal.
• Low-Paid Jobs: Jobs that pay less than two-thirds of the median wage. Very low-paid jobs pay less than 50 percent of the median wage.
• Underemployment: Workers who would like to work more hours but are unable to do so. This includes those working less than full-time.
• Poverty: The report focuses on the bottom 20 percent of income distribution. It emphasizes the risk of poverty rather than the headcount.

Main Findings

• In-Work Poverty: In-work poverty is widespread in the Philippines. It is driven by low productivity and limited access to productive jobs.
• Economic Growth: While economic growth has created enough jobs to absorb the increasing labor force, it has not significantly improved job quality or real wages.
• Job Quality: Most jobs are low-skilled and informal, which do not provide adequate income or protection for workers.
• Education and Skills: The low educational attainment of the workforce, especially among the poor and youth, contributes to the persistence of low-paid and "bad" jobs.
• Wage Inequality: Wage inequality is high, with the top decile earning about seven times more than the bottom decile. The informal sector is heavily associated with low wages.
• Underemployment: A significant portion of the workforce is underemployed, with close to 60 percent working less than full-time.
• Unemployment: The unemployment rate is relatively low, but the broad definition includes those available for work but not actively seeking it.
• Youth Employment: Young workers are better educated than older ones, but many still lack the skills to access better-paying jobs. The NEET (Not in Education, Employment or Training) rate is high, especially among the poor.

Policy Implications

• Education and Skills Development: Improving access to quality education and vocational training is essential for reducing in-work poverty.
• Labor Market Reforms: Labor regulations need to be simplified and made more flexible to support the reallocation of labor from less to more productive activities.
• Formal Sector Growth: Encouraging the growth of the formal and higher value-added sectors can create better jobs and improve wages.
• Minimum Wage Policy: While minimum wage policy may not be effective in reducing in-work poverty due to weak bargaining power of low-skilled workers, it remains an important tool.
• Targeted Training Programs: These programs can help address the skills gap among poor workers, especially the youth.
• Structural Transformation: The process of structural transformation should be supported by effective labor policies to ensure that productivity gains translate into wage increases.

Key Statistics

• Employment Rate: 59.5% (2013), which is average by international standards but lower than most ASEAN countries.
• Unemployment Rate: 7.1% (2013) using a broad definition.
• Underemployment Rate: 21.0% (2013), with a higher incidence in rural areas.
• Low-Paid Employment: 30% of all wage workers earn less than two-thirds of the median wage.
• Informal Employment: Around 75% of all jobs and 66% of urban jobs are informal.
• NEET Rate: 25% of persons aged 15 to 24 are NEET, with the highest proportion in the lowest income quintiles.
• Wage Differentials: Formal workers earn more than twice as much as informal workers, and urban workers earn 50% more than their rural counterparts.

Conclusion

The Philippines faces significant challenges in reducing in-work poverty, which is driven by low education and limited access to productive jobs. Structural changes and labor market reforms are necessary to improve job quality and ensure that economic growth translates into better wages and working conditions. The report underscores the importance of education, skills development, and the growth of the formal sector in achieving shared prosperity.