HOW RESILIENT IS THE PHILIPPINE LABOR MARKET COMPARED WITH THOSE OF OTHER ECONOMIES?
The Global Labor Resilience Index, prepared by global strategy and public policy advisory firm Whiteshield Partners, looks at the readiness of labor markets in withstanding shocks such as geopolitical tensions, policy changes, and technological innovations. Specifically, the index looks at longer-term “structural factors” (demographics, level of economic development, country capabilities, economic diversification, and inequality) as well as shorter-term “policy factors” (education and skills, labor policy, innovation, technology, entrepreneurship, and statistics) in gauging labor market resilience. This year’s index placed the Philippines as the 62nd most resilient labor market out of 145 countries, climbing three spots over the past five years from 65th in 2015. The report noted the country’s decreasing unemployment and increasing income equality through export-driven growth, as well as lowering the time for businesses in dealing with government regulation. On the other hand, it pointed out that much of the country’s economic growth is predominantly driven by low-skilled jobs in the services sector.