The upcoming Christmas holidays and elections in the Philippines are set to create a wave of temporary jobs for many Filipinos. However, economists warn that these gains will be fleeting. The real opportunity for sustainable employment lies ahead, particularly as inflation eases and interest rates drop, potentially leading to more quality jobs in the second half of 2025.
In this article, I’ll dive deeper into the current job market landscape in the Philippines, explore the challenges and opportunities that lie ahead, and discuss actionable strategies for enhancing employability.
Temporary Jobs: A Holiday and Election Phenomenon
The Role of Seasonal Employment
As the festive season approaches, businesses ramp up hiring to meet the increased demand for services and products. This surge is often followed by an uptick in temporary positions created for:
- Retail
- Hospitality
- Event management
These jobs can provide crucial income for many families but are often short-lived. Similarly, the election cycle tends to spur temporary roles related to campaign work, polling stations, and related activities.
Immediate Job Market Outlook
While the Philippine jobless rate has recently dropped to 4% in August from 4.7% in July, this decrease is largely seasonal. Many new graduates entering the workforce in June contribute to this fluctuation.
Economists, including Cid L. Terosa, former dean at the University of Asia and the Pacific, emphasise that these seasonal jobs will not significantly alter the long-term employment landscape. Instead, they are a stopgap measure rather than a solution to the underlying issues in the job market.
The Need for Sustainable Employment Solutions
To move beyond temporary fixes, the Philippines must focus on upskilling and reskilling the workforce.
Key Recommendations
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Enhance Employability: The government should invest in training programs that align with both domestic and global trends in the manufacturing and service sectors.
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Foster Public-Private Partnerships: Collaborating with businesses can lead to innovative job creation strategies and stimulate economic growth.
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Boost Tourism and Agriculture: Expanding these sectors could yield substantial job opportunities, especially in rural areas.
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Encourage Entrepreneurship: Promoting both traditional and non-traditional forms of entrepreneurship, particularly in the digital and gig economies, can empower many Filipinos to create their own job opportunities.
The Importance of Family Planning Policies
Addressing the country’s demographic dividend is crucial. According to Juan “Jeepy” A. Perez III, former executive director of the Commission on Population and Development, the Philippines has not maximised its demographic potential like some of its Southeast Asian neighbours.
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Budget Cuts in Family Planning: Recent budget reductions for health and family planning programs limit the ability of families to access necessary services, which could affect workforce participation.
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Learn from Neighbours: Countries like Thailand have implemented successful policies to extend their demographic dividend by supporting families through financial assistance and child support programs.
Tackling Youth Unemployment
Youth unemployment remains a significant concern, particularly as the job market struggles to absorb new entrants. The youth unemployment rate stands at 13-14% for those aged 15 to 24, far higher than the national average.
Strategies for Improvement
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Align Education with Job Market Needs: The Department of Education and the Technical Education and Skills Development Authority must ensure that vocational training meets the demands of today’s employers.
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Promote Female Employment: Structural barriers must be removed to allow more women to join the workforce, aiming for a target of at least 60% female employment.
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Implement a Living Wage Policy: Transitioning from regional wage settings to a national living wage policy can help improve the financial conditions of workers, thus enhancing overall productivity.
The Economic Outlook
The economic prospects for the Philippines appear cautiously optimistic, driven by factors such as lower inflation and reduced interest rates. However, the country must act decisively to ensure that this optimism translates into sustainable employment.
Key Takeaways
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Invest in Skills Development: To harness the benefits of its demographic dividend, the Philippines needs to upskill its workforce.
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Promote Economic Policies: Focusing on sectors like manufacturing, entrepreneurship, and digital industries can provide the necessary employment opportunities for young workers.
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Avoiding Missed Opportunities: Failing to integrate a large segment of the working-age population into productive employment risks squandering the chance for long-term economic growth.
Conclusion: Navigating Future Employment Challenges
The Philippine economy stands at a crossroads. While seasonal jobs during the holidays and elections may offer temporary relief, the focus must shift toward sustainable employment solutions.
By enhancing employability, investing in education, and fostering a dynamic business environment, the Philippines can fully realise its demographic potential and create lasting opportunities for its citizens.
