The Philippine government is leveraging employment generation as a key strategy to boost economic growth, with recent data showing promising results.
President Ferdinand Marcos Jr. reported a 6.3% economic growth in the second quarter, placing the Philippines among the top performers in Asia and ASEAN. The unemployment rate dropped to 3.1%, one of the lowest levels recorded in two decades. Over 50.3 million Filipinos are now employed, with 63.8% in the formal sector, according to the President’s statement.
This focus on job creation aligns with World Bank findings that indicate a 1% increase in employment correlates with a 0.6% rise in GDP growth. The strategy follows Keynesian multiplier theory, which posits that employed individuals stimulate economic activity through increased consumer spending.
The Philippine Economic Zone Authority (PEZA) plays a crucial role in this job-centric approach. From January to August 2024, PEZA approved 144 projects, creating 29,524 new jobs—a 60.4% increase compared to the same period in 2023. PEZA currently oversees 423 operating economic zones nationwide, hosting 4,380 primarily export-oriented projects and directly employing over 1.8 million Filipinos.
The National Economic and Development Authority (NEDA) estimates that each direct job in these economic zones generates five indirect employment opportunities, underscoring the multiplier effect of PEZA’s initiatives.
PEZA Director General Tereso Panga emphasized the agency’s commitment to collaborating with the Department of Trade and Industry, other government agencies, and the private sector to generate more jobs, particularly in rural areas. The goal is to support the administration’s target of achieving upper-middle-income status within President Marcos’s term.
As the Philippines continues to attract foreign direct investment, the government aims to capitalize on this momentum to further reduce unemployment and expand the middle class. However, challenges remain in ensuring that job growth is sustainable and aligned with the skills required in an evolving global economy.