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Labor Markets in Asia pp 367–502Cite as

Palgrave Macmillan

Unemployment, Labor Laws, and Economic Policies in the Philippines

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Abstract

Unemployment and underemployment are the Philippines’ most important problems and the key indicators of the weaknesses of the economy. Today, around 4 million workers (about 12% of the labor force) are unemployed and another 5 million (around 17% of those employed) are underemployed. This Reserve Army of workers is a reflection of what happens in the economy, particularly because of its incapacity to provide jobs (especially in the formal sector) to its growing labor force. The social costs of this mass unemployment range from income losses to severe social and psychological problems resulting from not having a job and feeling insecure about the future. Overall, it causes a massive social inefficiency.

The authors thank participants at the workshop, Employment Creation, Labor Markets, and Growth in the Philippines (19 May 2005, Manila) for their comments and suggestions on an earlier draft of the chapter. They also thank Rana Hasan for useful discussions on labor market issues.

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Author information

Authors and Affiliations

  1. Economics and Research Department, Asian Development Bank, Philippines

    Jesus Felipe

  2. Economics Department, Ateneo de Manila University, Philippines

    Leonardo Lanzona Jr.

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  1. Jesus Felipe
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  2. Leonardo Lanzona Jr.
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Editors and Affiliations

  1. Asian Development Bank, Philippines

    Jesus Felipe  & Rana Hasan  & 

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Felipe, J., Lanzona, L. (2006). Unemployment, Labor Laws, and Economic Policies in the Philippines. In: Felipe, J., Hasan, R. (eds) Labor Markets in Asia. Palgrave Macmillan, London. https://doi.org/10.1057/9780230627383_7

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