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Unemployment
In 2012, 10 million Filipinos were either unemployed (three million) or
underemployed (seven million). In October 2013, unemployment rate was 6.5% in
comparison to 6.8% in 2012. According to the Labor Force Survey, the unemployment rate
was 6% and 6.6% in October 2014 and January 2015, respectively.
Only one-fourth of the Filipinos that enter the labor force are able to find good jobs
in the country, and the rest of them find jobs overseas, leave the labor force, or end up
becoming unemployed/underemployed. Thus, three-fourth of the workers are unemployed
or informally employed, with lack of opportunities to find good jobs. Though jobs are being
generated, there's a need to generate jobs at a much faster rate, to be able to bring down
the unemployment rate. Many of the unemployed individuals are college graduates. Many
wait for job opportunities abroad, and many families depend on remittances from family
members who are staying abroad.
Poverty
Despite the talk about economic growth, the poverty rates have not changed
significantly since 2006. As per the National Statistical Coordination Board (NSCB), poverty
incidence of the population improved from 26.3 percent in 2009 to 25.2 percent in 2012.
Poor Infrastructure
Infrastructure is one of the biggest challenges. In the Global Competitiveness Report
2014-2015 of the World Economic Forum, Philippines didn't fare well in terms of the
quality of the overall infrastructure. It ranked at number 91 among 144 countries. This can
be attributed to underinvestment in infrastructure.
In order to host global companies, Philippines will have to pay more attention to
enhancing the infrastructure. A well-developed transportation (roads, railroads, ports, and
air transport) and communication system is extremely essential for economic activities. As
per the World Bank's Ease of Doing Business 2015 report, Philippines ranked 95 out of 189
economies. It needs to improve its ranking in certain categories. It ranked 161 in the
category of starting a business, 124 in dealing with construction permits, 108 in registering
property, 104 in getting credit, 154 in protecting minority investors, 127 in paying taxes,
and 124 in enforcing contracts. Thus, the policy makers should take steps to attract global
companies or investors.