FEBRUARY 28, 2024 – Two key factors are seen to significantly boost the Philippine economy’s growth prospects for the medium and long term: the country’s demographic transition and the government’s housing build up.  

According to the National Economic and Development Authority (NEDA), the government must invest massively in the country’s human capital to maximize the benefits from the demographic transition. At the same time, the acceleration of the Pambansang Pabahay Para sa Pilipino or 4PH Program will drive the growth of the housing sector and supporting industries. 

These were some of the key points emphasized by NEDA Secretary Arsenio M. Balisacan during his presentation at the Philippine Economic Briefing for members of the Institute of Corporate Directors on Tuesday, February 27.  

“We must ensure that our people are healthy, educated, and skilled to harness the demographic dividend. We will work to recover COVID-19-associated learning losses and invest in human capital as a foundation for a globally competitive workforce,” Balisacan said. 

While the Philippines recorded a 3.1 percent unemployment rate in December 2023, the lowest in two decades, the government is also focusing its interventions toward reducing underemployment by enabling investments that generate higher-quality jobs. The December 2023 underemployment rate eased to 11.9 percent, while the share of wage and salaried workers in private establishments averaged 49.7% for the periods of January, April, July, and October 2023. Both statistics serve as indicators of job quality. 

[Related: Unemployment Lowest in Almost Two Decades, Generating High-Quality Jobs Crucial] 

To sustain positive gains in the labor market and reap the demographic dividend in the next two to three decades, Balisacan explained that the private sector, civil society, and local government units need to collaborate to address challenges in the education and health sectors. The government must upskill workers through training programs that are responsive to industry standards and demands. 

Recognizing the potential gains from spillovers and inter-sectoral linkages, the country’s chief economic planner also added that the government will train its efforts to enable the accelerated roll out of the 4PH Program. 

“The government’s support for the program will include ensuring the availability and affordability of construction materials, strengthening skills training for workers, fast-tracking the identification of potential beneficiaries and land, and streamlining the process for securing necessary permits,” he said. 

 “Our macroeconomic fundamentals remain sound and are expected to improve further. A growing labor force and the accompanying demographic dividend bode well for future growth. As we roll out the transformation agenda, we are learning from the challenges we confronted in the past year. We remain committed to realizing the Marcos Administration’s intended transformation toward a Bagong Pilipinas,” Balisacan concluded. 

Access the Philippine Development Report 2023 to read about how the Marcos Administration is operationalizing its transformation agenda toward realizing the country’s desired socioeconomic outcomes. 

 

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