Mga Isyung Pang-Ekonomiya:

Globalisasyon, Paggawa, at Migrasyon

Rodger M. Valientes
Assistant Professor
Department of Economics

Orientation of Chief Trainers and Mass Training of Teachers (MTOT) of

Grade 10 Araling Panlipunan Contemporary Issues

Tagaytay International Convention Center

April 19, 2017

University of the Philippines Los Baos

College, Los Baos, Laguna 4031 Philippines
 Paano nakaapekto ang mga
isyung pang-ekonomiya sa
pamumuhay ng mga Pilipino?

University of the Philippines Los Baos

College, Los Baos, Laguna 4031 Philippines
 Globalization
Integration of national economies into the
international economy through:
trade in goods and services (e.g. OFWs, outsourcing)
direct foreign investment (e.g. MNCs, TNCs)
short term capital flows
international movement of people
flows of technology

University of the Philippines Los Baos

College, Los Baos, Laguna 4031 Philippines
 Globalization
Important non-economic aspect:
cultural
communications, and
political integration (ASEAN Community)

University of the Philippines Los Baos

College, Los Baos, Laguna 4031 Philippines
 Globalization
Global trade and investment has grown rapidly
with sharp falling transportation and
communication costs;
global scale production networks and value chains.
Integration into global economy led to rapid
financial liberalization
Financial development (but exposed to deep
financial crises especially when local financial
institutions were weak and foreign capital was
quickly withdrawn).

University of the Philippines Los Baos

College, Los Baos, Laguna 4031 Philippines
 Globalization
There will be both winners and losers
More protection or more liberalization?
Free trade or fair trade?

University of the Philippines Los Baos

College, Los Baos, Laguna 4031 Philippines
 Labor Issue
Globalization: increased trade of goods and
services, local and foreign investments
With larger market, higher demand for
goods and services
More factors of production needed (labor, capital)
Demand for factors of production as derived demand

University of the Philippines Los Baos

College, Los Baos, Laguna 4031 Philippines
 Labor Issue
Demand for labor depends on the demand
for the product or service labor is helping to
produce or provide.
Demand for labor is dependent on the demand for the
outputs where labor is used to produce.
Labor is demanded by a firm if and only if, households
(or other firms) demand the good or service they
produce or offer
Labor demand is flexible

University of the Philippines Los Baos

College, Los Baos, Laguna 4031 Philippines
 Labor Issue
Demand for labor depends on product
standards and skills/competencies
required/desired by employers
Highly variable
Decent job regulation

University of the Philippines Los Baos

College, Los Baos, Laguna 4031 Philippines
 Philippine labor force participation rate and
employment status of workers by sex
2006 2007 2008 2009 2010 2011 2012 2013 2014
Labor Force (in million)
Both 35,464 36,213 36,805 37,892 38,893 40,006 40,426 41,022 41,379
Men 21,811 22,217 22,673 23,173 23,729 24,345 24,616 24,968 25,093
Women 13,653 13,995 14,132 14,719 15,164 15,660 15,810 16,055 16,286

Labor Force Participation Rate (%)

Both 64.2 64.0 63.6 64.0 64.1 64.6 64.2 63.9 64.6
Men 79.3 78.8 78.8 78.6 78.5 79.0 78.5 78.1 78.6
Women 49.3 49.3 48.6 49.4 49.7 50.4 50.0 49.9 50.7

Employment Rate (%)

Both 92.0 92.7 92.6 92.5 92.7 93.0 93.0 92.9 93.4
Men 91.8 92.5 92.4 92.4 92.4 92.7 92.8 92.7 93.1
Women 92.4 93.0 92.9 92.8 93.1 93.4 93.3 93.2 93.9

Unemployment Rate (%)

Both 8.0 7.3 7.4 7.5 7.3 7.0 7.0 7.1 6.6
Men 8.2 7.5 7.6 7.6 7.6 7.3 7.2 7.3 6.9
Women 7.6 7.0 7.1 7.2 6.9 6.6 6.7 6.8 6.1

University of the Philippines Los Baos

College, Los Baos, Laguna 4031 Philippines
 Philippine employment by class of worker

Class of Worker April 2016

Philippines
40,664
(number in thousands)
Total 100.0
Wage and Salary Workers 61.6
Worked for Private Household 5.0
Worked for Private Establishment 48.4
Worked with Pay in Family Business 0.4
Worked for Government 7.9
Self-employed without Any Paid Employee 26.8
Employer 3.3
Unpaid Family Workers 8.3

University of the Philippines Los Baos

College, Los Baos, Laguna 4031 Philippines
 Average share of women to total employment,
by major occupation2001 - 2016
Teaching Professionals
Life Science and Health Associate Professionals
Teaching Associate Professionals
Life Science and Health Professionals
Sales and Services Elementary Occupations
Office Clerks
General Managers or Managing-Proprietors
Customer Services Clerks
Models, Salespersons and Demonstrators
Other Craft and Related Trades Workers
Animal Producers
Other Professionals
Related Associate Professionals
Corporate Executives and Specialized Managers
Machine Operators and Assemblers
Personal and Protective Service Workers
Agricultural, Forestry, Fishery and Related Laborers
Supervisors
Officials of Government and Special-Interest Organizations
Precision, Handicraft, Printing and Related Trades Workers
Other Occupations Not Classifiable
Physical Science and Engineering Associate Professionals
Physical, Mathematical and Engineering Science Professionals
Forestry and Related Workers
Laborers in Mining, Construction, Manufacturing and Transport
Farmers and Other Plant Growers
Stationary Plant and Related Operators
Fishermen Average share of women to total employment, by major occupation
Metal, Machinery and Related Trades Workers 2001 - 2016
Armed Forces
Mining, Construction and Related Trade Workers
Drivers and Mobile Plant Operators

0 10 20 30 40 50 60 70 80 90 100
In percent
12

University of the Philippines Los Baos

College, Los Baos, Laguna 4031 Philippines
 Average share of women to total employment,
by major sector, 2001 - 2016

Wholesale and Retail

Agriculture, Hunting, and Forestry
Private Houehold with Employed Workers
Manufacturing
Education
Public Administration
Hotels
Other Community Services
Health and Social Work
Real Estate
Financial Intermediation
Transportation
Fishing
Construction
Electricity, Gas, and Water
Mining and Quarying
Extra Territorial Occupation

0.0 5.0 10.0 15.0 20.0 25.0 30.0

In percent 13

University of the Philippines Los Baos

College, Los Baos, Laguna 4031 Philippines
 Labor Issue
Cheap labor: Advantage or disadvantage?
Contractualization
Flexible labor
Stop endo policy vs. contractualization
More sub-contracting of labor?
Firm closure due to high cost? loose
competitiveness?

University of the Philippines Los Baos

College, Los Baos, Laguna 4031 Philippines
 Migration Issue
Migration will flow from areas of relatively
poor earnings to places where opportunities
are better
People are attracted to areas where the real
earnings of full-time workers are highest

University of the Philippines Los Baos

College, Los Baos, Laguna 4031 Philippines
 Migration Issue
Quality Assurance
Bologna Accord, Washington Accord

Forced labor, human trafficking and slavery

Brain-drain

University of the Philippines Los Baos

College, Los Baos, Laguna 4031 Philippines