Gig economy presents risks

Gig economy presents risks | Daily Tribune

Glowing figures were released in February, indicating that the unemployment rate is on a downtrend to settle at 3.8 percent, the lowest since December. According to the government, this indicates a robust jobs market as investments grow.

An independent research firm, however, showed otherwise, revealing a more troubling reality.

While the official data suggest progress, a deeper analysis exposes persistent issues of poor jobs quality and informality to undermine the sustainability of employment gains.

According to the government, the number of employed persons rose by 204,000 to 49.2 million in February. Coupled with a significant decline in underemployment by over one million, the figures suggest more Filipinos are finding work and fewer are seeking side hustles.

An analysis by the independent think tank IBON exposed critical flaws in the employment figures, highlighting a surge in informal and precarious work that the apparent gains mask.

The research showed that of the 49.2 million employed, 42 percent or 20.6 million are informal workers, including 13.9 million self-employed, 4.4 million in family-operated farms or businesses (including 3.3 million unpaid family workers), and 2.3 million domestic workers.

It cited a 326,000 increase in informal workers from a year ago, suggesting that employment is driven mainly by low quality, unstable jobs.

These jobs often lack benefits, security, and decent work conditions, indicating that Filipinos are accepting whatever jobs are available to survive.

The decline in underemployment, while seemingly positive, is also misleading as it does not reflect improved jobs quality but rather the government’s redefinition of full-time work under flexible arrangements.

Freelance and gig workers, for instance, may be counted as fully employed despite the irregular hours, inadequate pay and lack of protection.

This statistical shortcut obscures the reality that many Filipinos are trapped in precarious employment, unable to access stable, gainful work.

The reliance on informal work and flexible arrangements points to deeper structural problems.

The government’s failure to address the lack of decent and sustainable jobs is evident in its neglect of agriculture and Filipino industries, which are critical for long-term jobs creation.

Agriculture lags in terms of development despite the sector providing employment to most Filipinos.

Instead, the economy is driven by low value and informal industries that do not prioritize the workers’ welfare. For want of a decent job, individuals are forced into survival-driven employment rather than opportunities that foster economic security.

Government’s focus on headline figures like unemployment rates ignores qualitative aspects. Thus, policymakers make false assumptions about the labor market’s health and apply superficial solutions.

For instance, promoting flexible work arrangements without ensuring labor protections or benefits exacerbates jobs insecurity rather than alleviates it.

With the rise of the gig economy, which is driven by temporary work arrangements, labor policies must adapt to ensure workers are not deprived of security.

The transparent reporting of employment data, including a breakdown of jobs quality and informality, will help to avoid misleading data.

The perspective of the leadership must also shift from short-term statistical gains to long-term economic resilience and inclusive growth.

The government’s failure to address structural weaknesses and its reliance on flexible work arrangements without safeguards undermine the sustainability of economic development.

To build a genuinely robust jobs market, policymakers must prioritize decent work, strengthen domestic industries, and adopt transparent, worker-centered policies.

The focus on impressive narratives will be the shortcoming of the journey towards progress, underpinned by the supposed demographic advantage.