Observation (CEACR) - adopted 2005, published 95th ILC session (2006)

Employment Policy Convention, 1964 (No. 122) - Philippines (Ratification: 1976)

1. Coordination of employment policy with poverty reduction. The Committee takes note of the Government’s report received in September 2004 and observes that one of the main achievements accomplished in recent years has been an overall reduction in the incidence of poverty, from 45.4 per cent in 1991 to 30.4 per cent in 2003. Also, overall employment increased by 3.6 per cent between 2003 and 2004, both in the service and industrial sectors. However, such growth in employment was outpaced by a greater increase in the size of the labour force, which resulted in a higher estimated unemployment rate of 13.7 per cent in 2004. The statistics provided by the Government also show that there was a slump in agricultural employment and an increase in the underemployment rate, despite a higher estimated real GDP growth rate in 2004. Furthermore, there is a high rate of youth unemployment, as well as notable unemployment amongst the better educated, and a significant share of unemployed persons who did not look for work because they believed that no work was available. In this regard, the Committee would appreciate receiving further information about the extent to which economic growth translates into better labour market outcomes and poverty reduction, and what may constitute the underlying structural factors that determine labour market outcomes in different regions and sectors. In this respect, the Committee asks the Government to continue to provide detailed information on the measures taken to ensure that employment, as a key element of poverty reduction, is at the heart of macroeconomic and social policies. It would also appreciate receiving information on how measures taken to promote employment operate within a "framework of a coordinated economic and social policy" (Article 2(a) of the Convention).

2. Participation of the social partners in the formulation and application of policies (Article 3). Regarding consultations with representatives of employers, workers and other groups, such as rural and informal sector workers, the Government indicates that, while it is true that representation in tripartite bodies comes from the formal sector, there exist national councils which cover the needs of the majority of the labour force, i.e. young workers, small and medium-sized enterprise workers and informal sector workers. One such body giving representation to informal sector workers in tripartite bodies is the National Anti-Poverty Commission (NAPC). The Government indicates that during the NAPC’s meeting of July 2004, several directives putting forth the interests of informal sector workers were issued. The Committee takes note of this information and asks the Government to keep providing information on the manner in which consultations are held with representatives of employers, workers and other groups, such as those in the rural sector and in the informal economy, and on the outcome of these consultations.

3. ILO technical assistance (Part V of the report form). The Government indicates that the Department of Labor and Employment, in cooperation with the ILO’s Subregional Office in Manila and the sectoral representatives from the workers and employers, are currently working on the Second Country Programme on Decent Work. The Committee requests the Government to provide details, as well as results achieved, following the implementation of this Programme, and to continue to submit information on the technical cooperation or advisory activities of the ILO concerning employment promotion and actions taken as a result thereof.