Biteng, Glaiza Adelley P.
BSED 11-C (SS)
SS ED 111
Activity: Economic Issues in the Philippines
Issues
1. According to the Philippines Statistics Authority,
annual inflation in the Philippines rose to 8.0% in
November, the country's fastest inflation in 14 years
since November 2008, owing to higher food prices.
Source:
Shan, L. (2022). Philippines’ inflation soars to 14-year
high, fueling expectations of more rate hikes. Retrieved
from: https://www.cnbc.com/2022/12/06/philippines-
inflation-soars-to-fastest-in-14-years-more-hikes-to-
come.html
2. The number of unemployed Filipinos fell in
November 2022 as mobility restrictions were eased
further, but the quality of available jobs worsened as the
underemployment rate increased.
Source:
Yraola, A. (2022). Unemployment rate falls in
November, but job quality worsens. Retrieved from:
https://www.bworldonline.com/top-stories/2022/01/07/4
22306/unemployment-rate-falls-in-november-but-job-
quality-worsens/
Suggested Solutions
Inflationary pressures can be managed from two
distinct policy perspectives: (1) fiscal and (2)
monetary. A proper (3) coordination of fiscal and
monetary actions that supports anti-inflationary
policy objectives, on the other hand, often works
best. Fiscal operations are actions taken by the
government's budgetary spending that have opposing
effects on the economy. Spending boosts demand
because it adds purchasing power to the economy.
However, taxes reduce the amount of income that
individuals and businesses can budget for their own
use. In monetary policy, the central bank, or Bangko
Sentral, has all the tools to influence the level of
interest rates, which is the principal tool to control
inflation.
The way to reduce the underemployment rate is to
generate better-quality jobs. They should first
strengthen growth and encourage more job creation,
and then address structural labor market barriers that
prevent individuals from finding productive and
rewarding jobs that match their skills and
capacities. There should also be increased
government spending, especially on infrastructure, to
pump-prime the economy, which would also generate
more employment and job opportunities for the
various infrastructure projects. Structural reforms are
also needed to make labor markets more adaptable,
resilient, and inclusive by increasing access to
rewarding and productive jobs and providing the
skills required for these jobs. Additionally, by better
anticipating emerging skill needs, providing accurate
and up-to-date labor market information, and being
more responsive in the provision of education and
training, individuals will be able to obtain and
maintain the skills required by the labor market.