In photo from left, Acting Special Coordinator for the Partnership for Global Infrastructure and Investment (PGI) Helaina Matza, Philippine Senior Advisor to the President for Investment and Economic Affairs Frederick Go, US Senior Advisor to the President for Energy and Investment Amos Hochstein. and Japan Ministry of Foreign Affairs Director-General for International Cooperation Bureau Ishizuki Hideo. (Photo from THEPHILBIZNEWS)
METRO MANILA, Philippines – Finance Secretary Ralph G. Recto has emphasized that the Luzon Economic Corridor, a major government infrastructure initiative, is poised to attract substantial investments and bolster the Philippines’ dynamic labor market by fostering job creation in the manufacturing and construction sectors.
“The massive transport projects that will be undertaken along the corridor, along with investment opportunities in key economic hubs, will create high demand for both skilled and unskilled jobs in the construction and manufacturing sectors. This will be an engine of growth that will further spread the fruits of inclusive development for Filipinos,” Recto stated.
The Luzon Economic Corridor is the inaugural Partnership for Global Infrastructure and Investment (PGI) economic corridor in the Indo-Pacific region, established following the first Trilateral United States-Japan-Philippines Leaders Meeting. This corridor will connect Subic Bay in Zambales, Clark in Pampanga, Manila, and Batangas, facilitating investments in high-impact infrastructure projects. These projects encompass railways, port modernization, clean energy, semiconductor supply chains, and agribusiness, all aimed at driving economic growth across these hubs.
“This corridor is envisioned to become a prime location for export-manufacturing firms, positioning the Philippines as Asia’s top destination for cutting-edge production and innovation,” emphasized Secretary Recto.
The economic corridor is expected to further enhance the country’s already vibrant labor market. The unemployment rate has declined to 4.0% in April 2024 from 4.5% in April 2023, translating to 215,000 fewer unemployed individuals compared to the previous year. The total number of employed individuals reached 48.36 million in April 2024, up from 48.06 million in April 2023.
The services sector remains the largest provider of jobs, accounting for 61.4% (29.7 million) of the employed population, followed by agriculture at 20.3% (9.8 million) and industry at 18.3% (8.8 million). Wage and salary workers make up the largest share of the employed population at 63.6% (30.75 million) in April 2024, with private establishments employing 78.7% (24.2 million) of these workers, while the public sector accounts for 14.0% (4.3 million).
Recognizing the high multiplier effect on the economy, particularly in creating quality jobs, President Ferdinand R. Marcos, Jr. signed Executive Order No. 59 on April 30, 2024. This order aims to expedite the implementation of 185 Infrastructure Flagship Projects (IFPs) under the Build Better More Program and improve the ease of doing business in the country.
The National Economic and Development Authority (NEDA) is also preparing the medium- and long-term Foreign Investment Promotion and Marketing Plan (FIPMP). This strategic plan, set for completion by the end of the month, leverages the Philippines’ competitive advantages, natural resources, skill and educational development, traditional linkages, and international market potential to attract foreign investments that will generate high-quality employment opportunities.
To support Filipino workers in the digital age and enhance productivity, the government is reviewing the existing policy on alternative work modes, such as the Telecommuting Act. Additionally, the government is advocating for the passage of human capital development measures, including the Apprenticeship Bill, Lifelong Learning Bill, and Enterprise Productivity Act, to equip Filipino workers with essential soft and hard skills for employment.
Moreover, the Trabaho Para sa Bayan (TPB) Act, the country’s master plan for employment generation and recovery, is being formulated by NEDA. This plan focuses on enhancing the employability and competitiveness of Filipino workers through upskilling and reskilling initiatives, along with support for micro, small, and medium enterprises and industry stakeholders.
Department of Finance Secretary Ralph Recto
“These new measures will generate more jobs in other higher value-added sectors like BPO, IT, accounting, and healthcare,” Secretary Recto said. “Our primary goal here is to sustain labor market gains by improving the country’s investment environment to attract more high-quality jobs while increasing government investments in human capital development, such as better healthcare and education. All these will prepare our young and dynamic workforce for lucrative and high-income opportunities,” he added.
Read the Official Press Release of DOF here: https://www.dof.gov.ph/recto-luzon-economic-corridor-to-draw-in-more-investments-and-support-phs-vibrant-labor-market-boosting-job-creation-in-manufacturing-and-construction/