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A broader look at today’s business n
Saturday, July 25, 2020 Vol. 15 No. 289
PHILIPPINE STATISTICS AUTHORITY
DATA CHAMPION
P25.00 nationwide | 12 pages | 7 DAYS A WEEK
IN AN UNPRECEDENTED CRISIS THAT HAS FORCED GOVERNMENTS TO TAKE THE HARD BALANCING ACT BETWEEN SAVING ECONOMIES WHILE CURBING THE SPREAD OF A DEADLY VIRUS, PEOPLE LOOK TO THEIR LEADERS FOR SIGNALS OF HOPE ON THE EVE OF THE STATE OF THE NATION ADDRESS.
A MAN wearing a protective mask walks past a mural of President Duterte in Manila, March 20, 2020. AP/AARON FAVILA
By Jasper Emmanuel Y. Arcalas, Samuel P. Medenilla, Bernadette A. Nicolas, Cai U. Ordinario, Tyrone Jasper C. Piad & Elijah Felice E. Rosales
‘I
T’S the economy, stupid.” These four words from nearly three decades ago—coined by American political consultant James Carville in 1992— resoundingly echo these days. The other two catchphrases Carville used to win for Bill Clinton the US presidency eerily seem relevant—“Change vs. more of the same” and “Don’t forget health care”—as the Philippines’s public health-care system and public health buckle under the weight of the coro-
navirus disease 2019 pandemic. The economy followed soon after, with the impact of government’s measures against the pandemic nearly stalling all production and business activities. The combination of a public health crisis and the extreme measures
PESO EXCHANGE RATES n US 49.4110
government applied to stem its spread wreaked havoc not only on the country’s economic gains but also on the government’s economic and social targets. The best indicator of the impact is on jobs: the Philippine Statistics Authority (PSA) has said some 5 million people lost theirs since the Duterte administration imposed a lockdown on March 17.
Steps, protocol
IBON Foundation Inc. Executive Director Jose Enrique A. Africa said if the PSA will include those who dropped out of the labor force, total unemployment would reach 14 million, or an unemployment rate of 21 percent. According to Africa, it is worth noting that 70 percent of
the unemployed are part of the informal sector. The jobs data is important as these reflect consumption and consumption demand. Inflation has remained benign; but Africa and economists, like Ateneo Center for Economic Research and Development (ACERD) Director Alvin P. Ang, said the low pace in the increase of prices is really a reflection of weak aggregate demand. Ang also said this reflected the low confidence in the economy. He said if the government can only ensure that protocols are clear and steps to manage Covid-19 from national to local are in place, “that is assurance enough that could boost confidence.” He said the country cannot
wait for a vaccine to be available in order to provide assistance or employment for the millions who have lost their jobs and those who may still lose them.
Ending contractualization
THIS year’s joblessness has also placed doubts on the Duterte administration’s vow to stamp out illegal contractualization. Labor and Employment Secretary Silvestre H. Bello III admitted the government’s focus on the pandemic has limited the movement of labor inspectors since mid-March. “We are not as confident with our expectation [on newly regularized workers] this year as in previous years because of the effect of the pandemic,” Bello told the BusinessMirror in a phone interview.
Former Partido Manggagawa Party-list Rep. Renato Magtubo chided Bello for such a tepid stance. “How can they effectively carry out a drive against illegal contractualization when [the] inspection of establishments is suspended,” Magtubo said. “Regularization of employment subject to prevailing rules and regulations can be done with or without the pandemic if only the DOLE [Department of Labor and Employment] would sustain inspection of establishments and address results of which appropriately.”
Regularization campaign
IN its last update on its regularization campaign, the DOLE said in December that it was able Continued on A2
n JAPAN 0.4626 n UK 62.9546 n HK 6.3749 n CHINA 7.0547 n SINGAPORE 35.6475 n AUSTRALIA 35.0522 n EU 57.3019 n SAUDI ARABIA 13.1780
Source: BSP (July 24, 2020)