A nice kind of problem

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BY MANNY VILLAR
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Wednesday, February 28, 2018
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FOR MANY years, and under different administrations, lack of jobs has been one of the country’s primary problems and a root cause of poverty that affects a fourth of the population.

In fact, the lack of employment opportunities gave birth to what was initially described as a phenomenon – the exodus of Filipino workers to different countries – but which is now an important source of jobs for professionals, skilled and unskilled workers. The overseas Filipino workers (OFWs) have been the choice of many foreign employers because of their skills, work ethics and English proficiency, making the Philippines a major source of migrant workers.

In a report published online in December 2015, the Migrant Policy Institute said that 1.8 million OFWS left to work in more than 190 countries.

The report titled “Shortage Amid Surplus: Emigration and Human Capital Development in the Philippines” cited an estimate by the Commission on Filipinos Overseas that, as of end-2013, migrant Filipino workers totaled about 10.2 million.

In the past few years, however, the growing domestic economy has increased job opportunities here, as new industries and businesses like business process outsourcing (BPO) emerged, and existing investors expand their operations.

For example, the results of the 2015-2016 Integrated Survey on Labor and Employment (ISLE) module entitled “Occupational Shortages and Surpluses” show that of the 12,926 establishments surveyed, 51.6 percent reported as wanting additional workers. Of the total vacancies reported, 460,069 or 65.8 percent were regular positions and the remaining 238,614 were non-regular positions.

With the Philippines being hailed as one of the fastest-growing economies in Asia, the worker shortage has become more apparent. The Duterte administration’s flagship “Build Build Build” program alone will require millions of additional workers – from professionals like engineers to skilled workers like heavy equipment operators to ordinary workers.

The Department of Trade and Industry has estimated that the administration’s flagship infrastructure program will need 2.5 million more workers.

Aside from the program, which is being implemented mainly by the Department of Public Works and Highways (DPWH), the department is also undertaking other road construction projects in the provinces. One only has to go on a tour in the provinces, including Mindanao, to see so many roads being built outside Metro Manila.

The robust growth of the economy continues to attract investments in many industries and, with the increasing purchasing power of consumers, even the economies of many provinces are booming.

The projects being undertaken by the private sector, such as mall development, office buildings for the BPO industry and residential communities add to the increasing demand for workers.

The condominiums undergoing construction now are already committed because these have been sold three to four years ago, so new projects are being lined up and placed on the market.

My businesses under Vista Land & Lifescapes alone are in need of as many as 18,000 workers for its new and expansion projects. In the retail business, Vista Land intends to increase its portfolio to 60 malls by the end of 2020 from the current 22 malls.

The company is also focused on the development of “communicities,” which are integrated urban development projects that combine lifestyle retail, prime office space, university town, healthcare, themed residential developments and leisure components.

Other players in the property industry are pursuing their own expansion projects in Metro Manila and urbanizing areas in the provinces. With the big demand from the government and the increasing demand from the private sector, contractors are now facing difficulty in hiring workers.

According to news reports, the Department of Labor and Employment (DOLE) plans to hold job fairs overseas to encourage OFWs in the Middle East who have been displaced to return home and take advantage of the job opportunities here. Labor Secretary Silvestre Bello III was quoted as saying hundreds of OFWs in Qatar and Saudi Arabia have lost their jobs because of the diplomatic crisis in the region and the drop in oil prices.

Local employers also have to compete with foreign companies in countries other than those in the Middle East, contributing to the demand for workers.

This is a nice kind of problem, and it would be good for the government to improve and expand its training programs to train the unskilled workers to fill the demand of employers.

We cannot stop Filipinos from seeking employment abroad, but with adequate training programs and our large population, we should be able to turn out enough workers to support the booming economy.

Eventually, Filipinos will realize that it is better to have decent jobs here than leave their families to try their luck abroad.

***

This piece first came out in Business Mirror on Feb. 19, 2018 under the column “The Entrepreneur.” For comments/feedback e-mail to: mbv.secretariat@gmail.com or visitwww.mannyvillar.com.ph./PN
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