MANILA, 12 November 2003 — Two business groups warned yesterday of an increase in unemployment next year partly as a result of the political infighting that has stoked fears of instability.
“The economy is not creating the jobs to support the new entrants,” said Donald Dee, president of the Employers’ Confederation of the Philippines (ECOP).
“I think come April you’re going to see a higher unemployment rate,” he added.
Dee said the recent constitutional crisis over an attempt by congressmen to impeach Supreme Court Chief Justice Hilario Davide had a negative impact on the markets.
“Many investors were holding off,”he said. “If there is no work it’s because we don’t see any investments and no expansions.”
Unemployment in the country was recorded at 12.7 percent in July, up from 12.2 percent in April.
Mike Varela of the Philippine Chamber of Commerce and Industry (PCCI) said the slowdown could affect unskilled workers most. What the government needs to do now, he said, is to focus on preserving jobs, not just in the “creation” of new ones.
Dee also blamed the endless politicking, which had diverted the government’s attention from improving infrastructure and delivery of services to the people.
