TUCP: Underground economy workers living below poverty line reaches 27.1 million

​Informal food vendors pitch their improvised stalls and receive inadequate assistance from the government. Photographed by Tricia Aquino, InterAksyon.com.


MANILA - The number of Filipino workers in the informal economy and who cannot afford the cost of living standard of P19.50 per meal a day have reached 27.1 million since January this year, the Trade Union Congress of the Philippines-Nagkaisa (TUCP-Nagkaisa) disclosed Monday, citing statistics from the Labor Force Survey of the Philippine Statistics Authority (PSA) released in March this year 

According to that PSA survey, there are 27.1 million workers working in the informal sector economy out of the 67.153 million total work force beginning this year.

Informal sector workers include jeepney and tricycle drivers, wet and dry goods vendors, bus and truck drivers and conductors, truck assistants, salesladies, barbers, beauticians and port workers.

In October 2015, there were 26.853 million workers in the informal economy, PSA data further showed.

Some 40 million of the 67.153 million work force are employed, while 2.466 million are unemployed and 7.879 million are described as underemployed.

TUCP-Nagkaisa spokesperson Alan Tanjusay said the informal economy or so-called "underground economy" sector are comprised in great part by individuals who operate businesses that are very small in scale and not registered with any national of formal government agency.

Workers in the informal economy typically sell their goods or services in exchange for subsistence wages or other forms of compensation.

The National Economic Development Authority (NEDA) and the Philippine Statistics Authority (PSA) estimated that a family of five needs P8,778 a month which is equivalent to P292.60 a day or P19.50 per person for three meals a day in 2012.

The two agencies also indicated that workers in the informal sector economy earn an average income of just P5,750 a month or P221.15 a day.

Based on this correspondence of data, Tanjusay said, workers need to earn a minimum of P3,028 a month more, or P100.93 more a day, in order to survive.

He observed that informal sector workers are the working people most vulnerable to risks, and often engage in variety of schemes just to cope.

"Despite their significant contribution to the growing economy, government intervention for them to survive, or to cope, is very small. They have no choice, but try to cope on their own and meet both ends day by day, not by weeks or by months.

"Most of them borrow money from loan operators despite exorbitant 6 to 10 percent interest rates. Some bet in daily, small-time illegal gambling. Some are engaged in supplemental sideline work," Tanjusay said. - InterAksyon.com

Poor workers’ ranks swelling

The number of poor Filipino workers who are working in the informal economy and cannot afford the cost of living standard of P19.50 per meal a day has reached 27.1 million since January this year, the Trade Union Congress of the Philippines-Nagkaisa (TUCP-Nagkaisa) said on Monday.

TUCP-Nagkaisa spokesperson Alan Tanjusay said the informal economy or "underground economy" sector  refers to poor individuals who operate business that are very small in scale and not registered with any national government agency.

"Workers in the informal economy sell their services in exchange for subsistence wages or other forms of compensation," he said.

The National Economic Development Authority  and the Philippine Statistics Authority said a family of five needs P8,778 a month which is equivalent to P292.60 a day or P19.50 per person for three meals a day in 2012.

The two agencies   said workers in the informal sector economy, for the same year, earn  an average income of P5,750 a month or P221.15 a day.  Both agencies are expected to release government poverty standard in July this year.

Using this equation, Tanjusay said poor workers need a minimum of P3,028 more a month or P100.93 more a day in order to survive. He said informal sector workers are working people most vulnerable to risks and engage in variety of schemes for them to cope.

"Despite of their significant contribution to the growing economy, government intervention for them to survive or to cope is very small. They have no choice but they rather on their own try to cope and meet both ends by the day not by weeks or by months. Most of them borrow money from loan operators despite exorbitant 6 to 10-percent interest rates. Some bet in daily, small-time illegal gambling. Some are engaged in sideline," Tanjusay said.

Informal sector workers includes jeepney and tricycle drivers, wet and dry vendors, bus and truck drivers and conductors, truck assistants, salesladies, barbers, beauticians and port workers.

According to PSA's Labor Force Survey released in March this year, there are 27.1 million workers  in the informal sector economy out of the 67.153 million total work force beginning this year.

Forty million of which are employed while 2.466 million are unemployed and 7.879 million are underemployed. In October 2015, there were 26.853 million workers in the informal economy, PSA data showed - Vito Barcelo / The Standard

1 M new grads may have no jobs – TUCP

The Trade Union Congress of the Philippines (TUCP) over the weekend said fresh graduates would have difficulty finding immediate employment due to additional hiring requirements. Most employers are demanding additional qualifications that would require more training for job applicants.

Manila , Philippines – More than one million college students will likely end up jobless after their graduation a few weeks from now, the country’s largest labor group said.

The Trade Union Congress of the Philippines (TUCP) over the weekend said fresh graduates would have difficulty finding immediate employment due to additional hiring requirements.

Most employers are demanding additional qualifications that would require more training for job applicants.

“This additional layer in the procedure could mean additional training which entails further cost and perseverance for the applicant. While those who fall through the cracks will become unemployed or underemployed,” said TUCP spokesman Alan Tanjusay.

Tanjusay also noted that the worsening job-skills mismatch can also derail fresh graduates’ chance to find employment after graduation.

Citing data from the Department of Labor and Employment (DOLE), Tanjusay said very few applicants were hired on the spot in government-initiated job fairs for the past two years.

“Out of the 4,239,392 domestic and international job vacancies offered in 3,686 year-round job fairs activities held in 2014 and 2015 nationwide, only 391,088 were hired on the spot out of the 1,286,073 applicants,” he said.

“This job-skills mismatch crisis in the country has been going on and it continues to grow. Competition is getting higher, so employers are putting additional qualifications into the job descriptions,” he added.

Tanjusay also warned that heightened competitiveness at the job market, with little or no adjustment on the part of the learning institutions, make job hunting in the country worse than ever.

Records from the Commission on Higher Education showed there were 656,284 college graduates in March 2015 while records from the Technical Education and Skills Development Authority showed there were 1.6 million individuals certified as of October 2015.

The DOLE identified 275 key occupations and 102 hard-to-fill occupations as part of the ongoing efforts to address the country’s high unemployment rate, particularly among the youth. - By Mayen Jaymalin (The Philippine Star)

TUCP: 'Job-skill mismatch' faces 2016 graduates

Photo by Philippine Star

College graduates this year may find it difficult to land jobs because their skills may not match the employers' requirements, a labor group said Sunday.

"This job-skills mismatch crisis in the country has been on going and it continues to grow. Competition is getting higher so employers are putting additional qualifications into the job descriptions for them to compete. Heightened competitiveness at the job market without or little adjustment at the learning institutions is what makes this crisis thrive," Trade Union congress of the Philippines spokesperson Alan Tanjusay said in a statement.

The TUCP cited data from the Department of Labor and Employment (DOLE) that shows only 391,088 out of the 1,286.073 applicants were hired on the spot in 3,686 job fairs held in 2014 and 2015.

Data from the Commission on Higher Education, meanwhile, showed that there were 656,284 college graduates in March 2015 and nearly 1.6 million individuals finished their training courses from the Technical Education and Skills Development Authority.

"With employers adding more qualifications, graduates' credentials will be scrutinized longer," Tanjunsay said, "This additional layer in the procedure could mean additional training which entails further cost and perseverance for the applicant."

Tanjunsay said the increased standards being implemented by employers will eventually lead to graduates facing underemployment or worse, unemployment.

The DOLE has identified 102 occupations that are "hard-to-fill" or job vacancies which employers are having difficulty to fill because applicants do not meet the skills' requirements.

Hard-to-fill jobs include 2D digital animator, agricultural designer, bioinformatics analyst, cosmetic dentist and surgeon, cuisine chef, multi-lingual tour guide, and mechatronics engineer among others.

The department has also listed 275 jobs in-demand. These jobs, according to DOLE, have high turnover and replacement rate.

Such occupations include abaca pulp processor, bangus driver, bamboo materials craftsman, fish cage caretaker, mussel grower and reefman. —Kiersnerr Gerwin Tacadena/ALG, GMA News