By Chloe Mari A. Hufana, Reporter
A STRICTER monitoring and enforcement mechanism to ensure compliance with labor standards is needed amid a “dim” employment outlook, particularly in the country’s service and agriculture sectors, a labor leader said.
A recent International Labour Organization (ILO) report on insufficient global employment growth mirrors the situation in the Philippines, where persistent decent work deficits in the service and agriculture sectors are attributed by the Federation of Free Workers (FFW) to rampant contractualization, low wages, and unsafe working conditions.
“The outlook remains dim, particularly when considered alongside the International Monetary Fund’s (IMF) recent report. It estimates that 14% of the workforce — around 5 million Filipino workers — are at risk of displacement this year due to artificial intelligence (AI) and climate change,” FFW President Jose Sonny G. Matula told BusinessWorld in a Viber message over the weekend.
The ILO’s World Employment and Social Outlook: Trends 2025, released last week, found employment growth globally remained “too weak” to significantly impact lingering decent work deficits.
While employment growth remains steady, various factors are testing the resilience of labor markets worldwide, it added.
“The lack of faster global productivity growth is partly linked to the failure of structural change to move people out of agriculture into manufacturing and services,” it noted.
“Given the poor working conditions in much of farming outside advanced economies, this also means that working poverty and informality have not benefited from people moving out of agriculture to better-paying jobs in industry and services,” it added.
Individuals in informal employment, particularly in agriculture and other sectors like wholesale and retail trade, often face irregular income and lack access to social protection, it added.
“In this context, the vigorous exercise of the Department of Labor and Employment’s (DoLE) inspection and visitorial powers under the Labor Code is essential,” Mr. Matula said.
“Strengthened monitoring and enforcement mechanisms will ensure that employers comply with labor standards, while the Employment Plan should adapt to rapidly changing labor market dynamics, including those influenced by technology and climate change,” he added.
In 2024, global employment grew alongside the expanding labor force, maintaining the global unemployment rate at a steady 5%, consistent with the level recorded in 2023, the ILO noted.
However, this growth remains insufficient to address persistent decent work deficits as young workers continue to face high unemployment rates, around 12.6%, with little sign of improvement, it added.
Labor Secretary Bienvenido E. Laguesma said the department conducted “extensive national consultations,” culminating in the upcoming 10-year Trabaho Para sa Bayan (TPB) Plan to address weak job growth.
“Through these initiatives, we have identified several key areas of intervention that align with the goals of the TPB Plan and aim to address the challenges of regional employment disparities, particularly in rural areas,” he told BusinessWorld in a Viber message over the weekend.
“Agriculture remains a cornerstone of rural employment, and we are committed to transforming this sector to boost productivity and job creation,” he added.
He noted the Labor department aims to introduce technology-enabled farming practices, climate-resilient methods and value-added processes into agribusiness through the Agricultural Competitiveness Enhancement Fund.
“These initiatives will not only create more jobs but also enhance the sustainability and profitability of rural livelihoods,” he said.
According to the Philippine Statistics Agency’s (PSA) November 2024 Labor Force Survey, the agriculture sector experienced the highest year on year job loss, with 1.99 Filipinos leaving the sector.
The agency attributed the loss to typhoons.
RURAL WORKFORCEAccording to Mr. Laguesma, DoLE is empowering local government units (LGUs) to spearhead rural development by supporting them with investment strategies, microfinance for micro, small and medium enterprises (MSMEs) and infrastructure projects under the Build Better More program.
“These initiatives will ensure that rural areas become hubs for inclusive economic activity,” he added.
In addition, DoLE is collaborating with the Technical Education and Skills Development Authority (TESDA) and local institutions, prioritizing tailored skills training.
Programs will focus on green skills development, digital upskilling and vocational training to prepare rural workers for opportunities in sustainable agriculture, eco-tourism, and renewable energy, he noted.
“Our Public Employment Service Offices (PESOs) are key to facilitating job placement and matching in rural areas,” he added, noting that digitalization and enhancing labor market intelligence.
“We aim to make employment services more accessible and effective, enabling rural job seekers to connect with opportunities tailored to their skills and aspirations,” he noted.
The labor chief also added the department is committed to fostering sustainable job opportunities in agriculture, eco-tourism and clean energy. These green initiatives will ensure long-term job creation while protecting environmental resources.
Social safety nets for rural workers are critical, he noted, adding the ILO has been helping DoLE in achieving these initiatives.
“We will broaden coverage of social protection programs to include informal workers, addressing vulnerabilities and providing stability during economic transitions,” he added.
“By prioritizing rural job creation and addressing regional disparities, we aim to build a resilient and equitable labor market where every Filipino has access to quality employment.”
