The Philippines provides the groundwork to address employment issues, which can worsen if left unresolved.

The National Employment Summit (NES) brought together partners and stakeholders to tackle labor market challenges and find solutions.

The summit inked an employment covenant and forged commitments for the 10-year Trabaho Para sa Bayan (TPB) or the Jobs for the Nation Plan to boost national and local economic growth, decent work and green jobs.

“Let us lay the groundwork to ensure a decade of meaningful employment and economic growth. The covenant and the TPB Plan will ensure the interagency and multipartite approach to achieving our objectives for productive, remunerative, and decent employment generation,” said President Ferdinand Marcos Jr.

The summit, led by the Department of Labor and Employment (DoLE) in collaboration with the National Economic and Development Authority (NEDA), the Department of Trade and Industry (DTI) and the International Labor Organization (ILO) was held on 26 to 27 June 2024 in Manila.

President Marcos assured Filipinos that the administration is working double time to address employment challenges.

Sangheon Lee, director of the ILO Employment Policy, Job Creation and Livelihoods Department, provided a comprehensive global overview of trends and policies impacting the labor market.

According to Lee, the unemployment rate is the most often used labor market indicator. However, lessons from the COVID-19 pandemic showed that often, it gives only a partial, sometimes misleading picture of reality. During the pandemic, there was a massive exit from the labor force, especially among women and youth.

“Jobs gaps are broader than unemployment, covering those people who are inactive for various reasons. The numbers are sobering as expected. On average, jobs gaps are often twice larger than unemployment,” said Lee.

The jobs gap, an ILO developed indicator, is relevant to assess difficulties that people face, mostly women and youth in finding a job. It also highlights job creation challenges. The jobs gap, which is not represented in unemployment data, reveals real differences as Lee pointed out.

Lower than global averages

In the Philippines, the overall jobs gap is lower than the global average, but it is quite high among female workers. The Philippines continues to confront the issue of young people who are Not in Education, Employment, or Training (NEET). It makes it complex for youth to move between work, training and education.

At the summit, Lee stressed not to forget informal employment. “Clearly and quite often, informal employment could be a trap: once you get in there, it is hard to get out without effective policy support,” he added.

These challenges and insights will help rethink strategies and policies. However, Lee noted that the current trends and challenges highlight the strong need for social dialogue among government, workers and employers.

“Data, evidence, and assessments are all crucial, but they always give you options, not a single, unique answer. They can help, but they cannot decide. It points to the critical importance of social dialogue, which brings together different and complementary perspectives from workers and employers to find agreeable — and most realistic and reliable — solutions. Social dialogue is quite often the best science,” Lee emphasized.

Overall, the summit provided a venue to understand the impact of global trends and how to address them to establish guiding principles for the 10-year TPB Plan. It also forged commitments and pushed for an enabling environment to strengthen industries and create quality jobs.

Aim for opportunities

“We must deliberately aim for the creation of employment opportunities of better quality, that are sustainable and more remunerative, and that provide decent working conditions for all workers,” said DoLE Secretary Bienvenido Laguesma.

“We must also deliberately aim for work opportunities that fully respect the fundamental principles and rights at work and provide adequate and inclusive social protection including facilitating just transitions,” the Secretary added.

Governments, employers, workers and sectoral representatives, regional tripartite industrial councils, civil society, and development partners joined the summit.

Gustavo González, the United Nations Resident Coordinator to the Philippines; Atty. Jose Sonny Matula and Sergio Ortiz-Luis Jr., representing workers and employers, respectively; and Senator Joel Villanueva, also expressed their commitment to support decent work and sustainable development.

The summit also reviewed key employment growth sectors, challenges in labor supply and demand, harmonized strategies, and emerging industries in the green, digital and care economy.

“We will continue to support the country in addressing employment challenges. The world of work is rapidly evolving, and it is crucial that we stay ahead of the curve through strong collaboration and social dialogue,” said Khalid Hassan, director of the ILO Country Office for the Philippines.

The Philippines also joined the Global Coalition for Social Justice and the Global Accelerator on Jobs and Social Protection for Just Transitions. In the coming months, regional consultations will be held to finalize the TPB Plan and turn commitments into actions.