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A Policy Analysis on:

Philippine Development Plan For 2011-2016:


The 22-Point Labor and Employment Agenda
A policy analysis presented to the faculty of the
Department of Political and Social Sciences
School of Humanities
Saint Louis University

In partial fulfillment of the requirements in Political Science 34


(Current Issues, Problems and Thrusts in Philippine Government and Politics)

Submitted By:
Baffour, Felix Geaffrey U.
Bandiola, Michael Angelo P.
Dizon, Kurt Zeus L.

Submitted To:
Dr. Mary Grace C. Baywong
February 04, 2014

I.

BACKGROUNG OF THE PROBLEM


Man in order to survive, to feed himself and his family, he must strive and work to live.

Before, ancient man work for food through hunting and gathering to satisfy his tummy. But as
time goes by, work became complicated as wants and needs of man increases which resulted to
more occupations. Therefore occupation is essential to satisfy man wants and importantly to stay
alive. In this world, there is a competitive struggle to have an occupation.
Struggle for a livelihood, job or occupation is a conflict which may affect an individuals
way of living. With some or few who are lucky to have a job, those unlucky may suffer poverty,
hunger and misery. The number of those who are unlucky to have a job may increase, the
government should be alarm. The unemployment problem in the Philippines is a great problem
that everybody should be alarm; it is not only the states problem, ones problem but everybodys
problem.
What is unemployment? Unemployment according to the International Labour
Organization is that joblessness occurs when people are without work and actively seeking
work. (ILO, 1982). Relatively, high unemployment occurs when the economy of a nation is
under recession or fall/slowdown of economic activity. (Saylor Foundation, 2012) That
slowdown of economic activity is caused by when aggregate output declines or decline in
production and expenditures.
There are four types of unemployment, these are: Frictional, Structural, Cyclical and
Classical unemployment. Frictional unemployment is that workers searches some period of time
to move from one job to another making it temporary jobless (Caplan, 29). Structural
unemployment occurs when a labour market cannot provide jobs because there is a mismatch
between the skills of the unemployed workers and the skills needed for the available jobs (Harry,
1934). Cyclical unemployment occurs when there is insufficient aggregate demand in the
economy to provide jobs for everybody who wants to work resulting cuts of production and lay
off workers to meet equilibrium level (Keynes, 2007). Classical unemployment happens when
wages for a job are place above the market-clearing level, causing the number of job-seekers to
go beyond the number of vacancies (Hayek, 1960).

Unemployment in the Philippine is a hot issue and also a threat to the economy. The way
of living is degrading. Lot of risk could happen. As an individual, depression, stress, malnutrition
and more could affect you. Families really are affected; poverty could arise and cause more
domino effects such as increase in crime incident, civil unrest and more.
In order to solve unemployment, Keynesian theory recommends that government
intervention isthe solution to reduce unemployment. Since unemployment is caused reduction of
aggregate demand for goods resulting for decrease demand of productivity and workers, Keynes
recommend that government should intervene by creating jobs through public funds which
would cause for demand for workers. Therefore government-funded employments can stimuli
increasing money supply and increasing government spending (Keynes, 2007).
For the past decade, one out of every four employed are from the poor households
(Philippine Labor and Employment Plan, 2011). Which means that some of them does not have
decent work or they are underemployed and most especially, those who are youth and college
educated people are the ones who are affected.
II.

A. AGENDA SETTING
The Philippines is considered as NIC (Newly Industrialized Country) from the status quo.

Philippines have suffered the problem of high unemployment from the because of the lack of the
government to produce more jobs for its citizens, the Philippine government has change
administrations through the past years, yet its problem on unemployment still not solve. With
relation to Keynesian theory, the government of the Philippines is not doing its very best in
providing job opportunities to its citizen and because of this problem the poverty line in the
Philippines is increasing. This insufficient job opportunity affects the country in the so called
brain drain, Filipino professionals and skilled workers goes abroad for better job opportunities
and wages to support their family. Some of these professionals are engineers, nurses, architects,
and IT specialists. These professionals are essential in our countries industrialization, health
services and modernization. That is one of the reasons why our country is left behind in
developing. Unemployment has really a domino effect in the economy, and progression of the
country.

Job Mismatch is one of the factors that affecting unemployment in the Philippines. The
DOLE (Department Of Labor and Employment) commits to what it seems to be never-ending
issue of providing enough decent jobs to its citizens. It may be pleasing to hear that more than a
hundred thousand jobs are available at the market, but it cannot be denied that numbers are still
growing in terms of both unemployment and underemployment. This job mismatch is cause by
the following: (1) Wrong choice of college course because of strong parental influence in
decision making, or taking a course that is not in demand in the market. (2) Being too moneydriven. Applying for jobs that offer above-average compensation packages, like those based
abroad, despite not possessing the necessary skills. (3) Being too choosy. Unreasonable
conditions or demands set by jobseekers when looking for or applying to jobs. (4) The
overqualified stigma. Work experiences are beyond employers requirements for the job applied
for a situation that is not new to employees who wish to switch careers or lower their standards
just to avoid unemployment. (5) Cost-cutting measures of companies for relevant training
programs. Not all employers allot the required time or budget for training new hires, which are
therefore expected to be fast-learners as they go completely hands on as early as day one. (6)
Using connections in the workplace. There are applicants and employees who consider their
relationship with a top-rank person in the organization as an assurance of securing jobs, while
those who are more deserving end up unemployed or victims of career mismatches themselves.
(American English, 2013).
Here is some statistical data of the unemployment rate in the Philippines for the past
decade (1998-2011).
Table 1: Unemployment rate (%) (1998-2011)
Country
Philippines

1998 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
9.6

10

10

10.2

11.4

11.7

8.7

7.9

7.3

7.4

7.5

7.3

2011
7

Source: CIA World Factbook


This data shows the unemployment rate of the Philippines for the past 13 years, based on
the data given; the unemployment rate in the Philippines has been decreasing since the year of
2005 onwards, the government performance has been moderate for the years of 2006 to 2011.

ISSUES
Aside from these agenda, there are issues and challenges that the government is now
facing. First is the deficit in decent and productive employment generated. Despite of
unemployment rate, economic growth is progressing together with employment rate. The rise of
employment opportunities in other in-demand jobs abroad leads to the deficit of professionals
and skilled workers in our country. Some of them migrated already and they enjoy to the fullest
which can affect the growth of our economy in the next years to come. Brain Drain is the
massive impact on the economic aspect of the country. It reflects professionals that migrate to
other places in order to get extensive benefits from it. The effects of low economic growth are
brought by economic shocks, natural disasters and extreme weather disturbance. The state of the
environment is deteriorating. Urban centers are polluted and wastes are improperly managed.
Continued deforestation is exacerbating loss of watersheds, which affects water supply. Land and
water resources are fast depleting. Consequently, industries, which inevitably rely on natural
resources for inputs, are threatened. Vulnerable workers are also at risk because they mostly
depend on natural resources for their livelihood. (PDP Chapter 9: Conservation, protection and
rehabilitation of the environment and natural resources towards sustainable development.)
Another issue the government is currently facing is the need for greater access to
employment opportunities. Two out of every five employed persons, workers in vulnerable
employment are under relatively precarious circumstances. Youth unemployment is also a factor
because some of them are under the age bracket of 15-24 years old. Some of them experienced
lack of interest in schooling and they are engaged in work force at the early age. Education
unemployment is also experienced in the Philippines. As we can see, every time we have
graduates, most of them are unemployed and they have struggles in finding their jobs and it
means that there are lost opportunities for fresh graduates and for the development of our
economy. This will lead to job and skills mismatch, which is one of the major problems of the
department. Because of lack of opportunities for employment, the problem of high levels of
unemployment of youth and the educated are significantly affects labor market.
B. POLICY FORMULATION

According to John Maynard Keynes, in order to solve or rather reduce unemployment


such as during recessions, he recommends government interventions in the economy. Keynes
recommend to two types of solutions to the problem of unemployment. These are demand side
solution and supply side solution (Keynes, 2007).
Demand side solution advocates that the government will necessitate pursuing for an
expansionary fiscal policy; this entails cutting or reducing taxes revenues and increasing
government expenditures or spending. Decreasing taxes increase disposable income and
therefore help to increase consumption, leading to higher aggregate demand. In terms of
monetary fiscal policy, it involves reducing or removing interest rates. Decreasing rates will
lessen the cost of borrowing and encourage people to spend and invest. This increases aggregate
demand and should also help to increase GDP and reduce demand deficient unemployment. Such
measure that the government can do is through social welfare programs. These unemployment
social welfare benefits include unemployment insurance, compensation, and subsidies. While
temporary measures include government funded projects. Although not extensively advocated as
a solution to unemployment, except in times of economic crisis; this is attributed to the public
sector jobs' existence depending directly on the taxes from private sectors (Pettinger, 2011).
Supply side solution on the other hand deals with micro-economics. It doesnt aim to
improve generally aggregate demand, but it seeks out to overcome deficiency in the labor market
and decrease unemployment (Pettinger, 2011). Such measure includes better education and
training to improve skills, flexibility, and mobility which is also called human capital
development. Spending on education and training is likely to improve labor productivity and is
an essential supply-side policy option, and one favored by recent UK governments. A
government may spend money directly, or provide incentives for private suppliers to enter the
market. Government may also set and monitor standards of teaching, and force schools to
include a skills component in their curriculum (Economics Online, 2009).
During the first term of President Noynoy Aquino, he launches the Philippine
Development Plan (PDP) 2011-2106. It leads to a 22-point labor and employment agenda which
is to invest in our countrys top resource, our human resource, to make us more competitive and
employable while promoting industrial peace based on social justice .(The P.Noys
administration 22-point labor and employment agenda, 2010). The agenda is to be considered a

mixture of demand side and supply side solution policy since it includes: setting fiscal and
monetary policies; and trainings, education and seminars for students, unemployed and also for
workers. However in further readings, supply side solution is mostly observe rather than demand
side solutions. Such part which is considered a supply side solution includes the Career
Network Coaching of Guidance Counselor for High School Graduating Students which focuses
on education sector especially by DOLE-CAR in partnership with DEPED, CHED, TESDA and
the PRC to reduce job mismatches or underemployment. Sir Henry John Jalbuena, the regional
director of DOLE-CAR and Maam Aurora Acosta, administrative officer IV of DOLE-CAR
states that education is also the priority of the Philippine Development Plan for 2011-2016: 22point labor and employment agenda to reduce unemployment.
The Aquino administration launched the Philippine Development Plan for 2011-2016:
22-point labor and employment agenda as a solution to reduce unemployment. However there
are also existing laws that responds for unemployment such as: the Labor Code of the
Philippines quoting Article 278-286 which tackles about employment and security of tenure;
and the ILO Convention 102 which is the basis of the creation of the GSIS Act of 1997 Rule
VII: Unemployment Benefit and such social security ratifications which are demand side
policies. Also, the Philippine Development Plan for 2011-2016: 22-point labor and employment
agenda based their formulation on the laws above (Weber, 2010).
The Philippine Development Plan for 2011-2016: 22-point labor and employment agenda
was based according to the previous years (years before 2010) of the Philippine labor market
performance especially criticizing former President Gloria Macapagal Arroyo. The Arroyo
administration is remembered for lost ground on important measures of development and
progress in the face of economic growth. But the Arroyo administration plays up the economic
growth over its term touted as the best in over 30 years as the gold standard of its
performance. In addition, the Arroyo administration launches some programs such as the
Comprehensive Livelihood Emergency Employment Program (CLEEP), which seeks to create
one million jobs like street sweepers or "pulis oyster" and hollow block-making, supposedly to
cushion the impact of the global economic crisis in the country which is considered as a
temporary measure for a demand side policy (Lopez, 2010).

The plan of the present Aquino Administration is based on the previous years. Official
reported growth in gross domestic product (GDP) during the Arroyo administration (2001-2009)
averaged 4.5% annually compared to 3.9% under Aquino (1986-1991), 3.8% under Ramos
(1992-1997) and 2.4% under Estrada (1998-2000). The economy expanded by 47.2% in real
terms since 2001. The results however speak for themselves. In terms of unemployment, the
period 2001-2009 is the longest period of high unemployment in the countrys history with the
factual unemployment rate averaging some 11.2% (correcting for the governments not counting
millions of jobless Filipinos as unemployed since 2005). The number of jobless and
underemployed Filipinos grew to 11.4 million in January 2010 which is 3.1 million more than in
January 2001, when President Arroyo came to power. The 4.3 million jobless Filipinos as of last
January 2010 is an increase of 730,000 from nine years (2001-2010) ago; the 7.1 million
underemployed is 2.4 million higher (Conde, 2011).
Since the present Aquino administration look at the previous economic status to base
their future planning, system approach is the obvious decision making model used. Seeing that
the past data about the economic status of the Philippines is the basis of how will they decide and
formulate the 22-point labor and employment agenda, it serves as an input for the
administrations decision. A comparison generally of the GDP and unemployment rate can
determine the economic growth of the country. Since a change in the political leadership also
including the tiredness of the public of the tyranny of the past administration, the Aquino
administration formulated a policy/program that is seen as a change maker or rather as a solution
of the problems during the past Arroyo administration. Hence the Philippine Development Plan
for 2011-2016: 22-point labor and employment agenda is an output policy formulated from the
previous years.
Institutional approach can also be a decision making model that is used by the Aquino
administration. Since the Arroyo administration faces a lot of issues such as corruption and
increase in unemployment, campaigns of Aquino focuses on changes which could be a factor
why he had won the 2010 election. Hence the policy could be a result of the promise of President
Noynoy Aquino to the voters to have a change in terms of economic growth and political
leadership.
C. IMPLEMENTATION

These policy actions are the priority goals of the PNOYs Administration, also known as
the 22-point labor and employment agenda, addresses the improvements of unemployment for
the next years to come. It is classified by its elements namely: On employment, (1) Address the
labor-mismatch problem by promoting better coordination between employers, academia and
government through strengthening both public (e.g. Public Employment Service Offices
PESO) and private sector labor market information and exchange institutions, especially at the
local levels.(2) Invest in the formal and regular skills training and upgrading of our services
workers with TESDA and utilize returning OFWs to conduct training so that they may transfer
skills learned abroad.(3) Assist OFWs in achieving financial stability through training,
investment and savings programs.(4) Complete a global trading master plan than aims to
establish worldwide trading posts that rely on the labor, knowledge and entrepreneurial spirit of
Overseas Filipino Workers (OFWs).(5) Facilitate the re-integration of returning OFWs by
favorable terms of investment, tax incentives, access to government financial institutions and
other benefits that are offered to foreign investors. On workers rights, (1) Promote not only the
constitutionally protected rights of workers but also their right to participate in the policymaking
process. (2) Align our countrys labor policies with international treaties and ILO conventions in
a sound and realistic manner. On social protection, (1) Work with relevant government agencies
in enhancing social protection programs such as social security, workmens compensation, health
insurance and housing for laid off workers while strengthening the Emergency Community
Employment Program (ECEP) to create jobs immediately so people cans still have income to
spend for their basic needs. (2) Review the continued deployment of workers to countries, which
are high-and medium-risk areas, as well the continued deployment of workers in high-risk
occupations. (3)

Audit the Overseas Workers Welfare Administration to rationalize the

management of its funds, in terms of the benefits provided as well as how the funds are invested.
(4) Work with the DFA to transform Philippine embassies, consular offices andPhilippine
Overseas Labor Offices (POLOs) into centers of care and service for overseas workers by
assigning more Foreign Service officers to post where there are many OFWs and train them in
the needs of the communities they serve. (5) Fully implement the Anti-Trafficking in Persons Act
of 2003. Pursue and prosecute those engaging in illegal and predatory activities, including fixers,
scammers and especially traffickers that target women and children. (6) Address the social costs
of migration by working closely with communities and families of OFWs to provide effective

social welfare services such as counseling and pre-departure orientation seminars. Support the
creation or strengthening of community-based support groups for families of OFWs. (7)
Improve the seafarers upgrading program; credit/loaning program, self-insurance coverage
program, which includes life insurance, burial, disability and dismemberment benefits, and
reintegration program. On social dialogue, (1) Review and evaluate the Department of Labor and
Employment ruling allowing the Philippine Airlines Management to outsource its critical
operations, resulting in the possible mass layoff of some 3,000 employees. (2) Work with the
private and labor sector to strengthen tripartite cooperation and promote industrial peace. (3)
Reform labor arbitration and adjudication systems by streamlining procedures, removing red
tape, and at the same time, restore integrity and fairness in the system. Ensure that 98% of all
pending labor cases are disposed of with quality decisions by April of 2011. (4) Create an
efficient one-stop shop for processing applications for overseas work and seeking redress for
grievances. On sustaining outcomes and improving internal governance , (1) Review existing
plans and programs in accordance with the principles of a zerobased budgeting system where
budget allocations are shaped by their performance and their compliance with COA reports. (2)
Regularly package and disseminate information on agency budgets, bidding and procurement
documents and SALNs of senior government officials, to ensure transparency and accountability.
(3) Ensure that the DOLE and its attached agencies are streamlined and rationalized to have
clear-cut and distinct mandates and that qualification standard, especially on eligibility, will be
strictly followed. (4) Work with the CSC to ensure that performances of government agencies
and civil servants will be evaluated rationally and systematically through an effective and
measurable performance management system to be approved by the CSC such as directly linking
the CSC Performance Management System-Office Performance Evaluation System (PMSOPES) with the DBM Organizational Performance Indicator Framework (OPIF) to ensure the
accountability of government agencies and officials (DOLE, 2011).
Other attempts that the government tries to act upon unemployment are Philippine
Development Plan for the year 2011-2016, where it aims for inclusive growth, create
employment opportunities and reduce poverty. Another, it also attains a high and sustainable
economic development, equalize access to development opportunities nationwide and formulate
and implement effective and responsive social safety nets for the economic processes. Decent
Work Common Agenda Strategic Objective is also implemented to create opportunities for both

women and men to have decent employment and incomes. Lastly, the Millennium Development
Goals to achieve full and productive employment and appropriate work for all.
D. EVALUATION
Unemployment is basically a problem that cannot be totally solved because every year,
there are a number of graduates who merely seek jobs and some of them are not employed
immediately. However, there are opportunities that the government tries to implement and these
opportunities are seen as time goes by, from one administration to another. In this case, the
efforts of the current administration, which is administered by President NoyNoy Aquino, is a
strong manifestation that unemployment has its long-term solutions that is cited in the 22-point
labor and employment agenda for the year 2011-2016.

Table 2: Unemployment Rate in the Philippines (2002-2013)


Country

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Philippines

10.2

11.4

11.7

8.7

7.9

7.3

7.4

7.5

7.3

7.2

7.3

Sources: CIA World Factbook, Bureau of Labor and Employment Statistics


Notwithstanding, from the statistical data shown above, the unemployment rate in the
Philippines is strongly decreasing every year since the administration of President Gloria
Macapagal-Arroyo up to the present. During the year 2002 to 2004, there is a double digit
unemployment rate which badly affects the economy that time. But from the year 2005 to 2009,
the average unemployment rate is reached at 7.76 percent, which is a good feedback from the
past administration. Nevertheless, the unemployment rate from 2010-2013 is achieved as low as
7.2 percent in its average and it is an indication that the government was able to accomplish their
goals in a positive manner. One of which is the 22-point labor and employment agenda of the
PNOY which has a big impact on achieving a 7.2 GDP growth rate for the year 2013 and the
economy grew by 6.5 precent in the fourth quarter of the year 2013, which makes the Philippines

as one of the best performing economies in the Asian Region in the said period. Second to China
with 7.7 percent growth. (Lopez, 2014).
III.

CONCLUSION
The Philippine Development Plan for 2011-2016: 22-point labor and employment agenda

is the key presented by the Aquino administration to solve the problem of unemployment offered
to the Filipino people. With a boosting growth in the economy, many critics still questions
Aquino capability to solve or rather reduce unemployment which is worsen by the alarming
rising of poverty. With such critics, the labor and employment agenda is seen ineffective,
insufficient or not satisfactory. Well some government officials such as NEDA Deputy DirectorGeneral Emmanuel Esguerra and including Sir Henry John Jalbuena, the regional head of
DOLE-CAR and Maam Aurora Acosta, administrative officer IV of DOLE-CAR acknowledges
the statements of critics but also added in a summarized statement: improvement to the actions
and ambiguity to make the policy/policies more effective to solve or reduce unemployment. The
policy may be seen ineffective or not satisfactory for some; the government bodies claim they are
doing their best to solve the problems of unemployment.
In solving the problem of unemployment here in the Philippines through the Philippine
Development Plan for 2011-2016: 22-point labor and employment agenda, it is not just the
problem of unemployment that the government wants to solve, but it is the key or an element for
the solution of other economic problems including poverty, recession, and such. Solving
unemployment or reducing unemployment is vital for the economic growth of the nation.
The effects of unemployment are not just economic but also social. Not solved, crime
rates will rise because people are unable to meet their daily needs to survive through work.
Divorce will rise because couple families cannot solve their financial problems. Number of
bankrupt people, homeless people and such will rises, as do the rates for mental and physical
illness due to stress. Psychological effects also took place. Suicide of an individual, murder
incidence of a family occurs in households just because of overwhelming economic pressure, and
one big factor is unemployment. It is all because financial disaster essentially unemployment that
pushed them over the edge. In addition the unemployed person also suffers from lose of self
respect and dignity in the society.

There is still some hope to solve or reduce unemployment in our country. The best known
solution is through education. Some says reforming our education is the best way such as the k12 program. Some would suggest even more detailed actions. That our educational system must
be focused by the government since education is the gate for employment but also the stepping
line for career orientation. Education is a key to change and progress; both change and progress
go hand in hand. Therefore educational system should be stabilized and changed to prepare the
youths according to true values of life and especially to the market demands. All the youths
should be prepared in colleges and universities. In some instances, solving the problems of our
educational system, or reforming our educational system could also solve other problems, in
such the problem of unemployment.
IV.POLICY RECOMMENDATION
The Philippine Development Plan for 2011-2016: 22-point labor and employment agenda
of the current administration of President Noynoy P-noy Aquino Jr. can be considered as an
effective policy to reduce the problems of unemployment which is a threat to the economic
growth of the Philippines. It is effective since it remains a stable rate; there is a decreasing
percentage rate although not that profound. The agenda plan of the Aquino administration could
be seen seemly effective, but not satisfactory. Hence, the loopholes of the policy should be focus.
Also in addition, some plans of the policy its elements, goals or parts of the policy are not
implementing effectively and even some are not really executed, practiced, or put into
application. Some of these elements or parts included in the 22-point plan agenda which seemly
is not executed or put into application are, or not presently effective: addressing labor mismatch
(e.g: the presence of guidance counseling coaches in decision making of careers of high school
students), participation of workers in political participation such as in policy making which is not
satisfactory, enhancing of social protection such as social security, unemployed and workers
compensation, health insurances for both workers and unemployed, and housing laid off workers,
and more. Plus, there are also problems that the policy of the administration did not solve such as
brain drain of professionals, youth unemployment, human career management and more.
In terms of supply side solutions such as education and training to improve/enhance
human capital development, the Philippine Development Plan for 2011-2016: 22-point labor and
employment agenda can be seen or felt presently. Such public services offered by TESDA,

OWWA and DOLE to enhance services to offer abroad can be seen as an effective supply side
solution. However, demand side solutions to solve unemployment lack presences or execution
here in the country. Can you see unemployment compensations where the government houses
unemployed people for their daily needs such as food? The problem of providing social services
for the unemployed is seen by such factors such as: the coverage of the services,
inadequacy/limits of benefits, lack of resources like financial, and coherence or consistency of
delivery of services.

One recommendation to improve social services/ protection to the

unemployed is to strengthen and mobilize the civil society groups and labor unions. Strengthen
and mobilize the civil society groups and labor unions can help them participate in policy
making like the Akbayan Partylist to legislate a law (House Bill No. 00303,) that would
guarantee regular jobs to workers, allowing workers access to security of tenure which eliminates
periodical unemployment. Or pressurizes the law making body to create laws such as the GSIS
Act of 1997 Rule VII: Unemployment Benefit which caters to the unemployed. (Global Network,
2011)
In terms of labor mismatch and career management, the government should be busier in
collaborating at schools especially high schools to manage the careers that the students would
want to pursue. Examples such as Career Network Coaching of Guidance Counselor for High
School Graduating Students or the National Career Assessment Examinations which are
designed for incoming college students is still considered insufficient in solving labor
mismatches. Some micro recommendation especially for individuals is that students must choose
their courses/degrees carefully, but its effect is small yet meaningful in small social units
especially for the family. One system wide macro scale recommendation that the government
could do or decide is through quotas in terms of population of a course or vocation which is
currently applied with the collaboration of CHED and with the universities. How if the
government could do a headcount to all the countrys industry of what specialization it needs and
then sets the needed number of such jobs and strictly implement it. And also it is pleasant if not
only few courses or vocation is applied with quotas but all or majority of the needed
specialization of labor.
Unemployment and brain drain as concepts of economics and labor-market are
interconnected to each other. High unemployment can result workers such as professionals to

find jobs abroad or overseas or totally migrate. Receiving countries can also experience
unemployment since the demand for specialization of work decrease since it the labor is allotted
by the emigrant workers. Philippines experience the problem of unemployment and brain drain at
the same time. Although brain drain is beneficial such as: the Philippines is offering to the
international labor market human resources especially in terms of health care which provides
remittances, brain drain is an economic cost loosing value of skilled or professional workers
therefore loosing capital (Spring & Routledge, 2009). Also adding up the decrease of
professionals in such sectors such as in the Philippines the sector of health care, it could lead to
harm in the health services of the country. The solutions for solving brain drain not clarified in
the Philippine Development Plan especially specified in the 22-point labor and employment
agenda, however if there is/are existing laws or policy it is still insufficient and not satisfactorily
due to current situations. The action that the Philippines as a system wide macro decision can do
is to create preventive measures. Such as in India, although suffering stern brain drain every year,
the Indian government has not to adopt strict policies because they believe that the overseas
talent will eventually contribute to the nation in the future. In Germany, they established a
government funded initiative called GAIN to assist Germans working abroad to return to their
home country. Other countries (Switzerland, Austria, and France) have similar initiatives (Lin,
2010).
ACKNOWLEDGEMENT

Sir Henry John Jalbuena- the Regional Director of DOLE-CAR


Maam Aurora Acosta- the Administrative Officer IV of DOLE-CAR

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