Philippine jobs ‘exposed’ to AI risks estimated at 35-37%

Between 35% and 37% of Philippine jobs are at risk of displacement to artificial intelligence (AI), the World Bank said.

“About 35% to 37% are exposed” to AI risks, World Bank Group Lead Economist and Program Leader for the Prosperity Unit for Brunei, Malaysia and the Philippines, Gonzalo Varela told a panel.

He also noted the high adoption of generative AI in the operations of the Information Technology Business Process Management industry.

The IT and Business Process Association of the Philippines in December reported that 67% of its surveyed members are already using AI in customer service, data entry, and quality assurance, though challenges persist.

However, 8% of its members surveyed reduced their workforce because of AI.

In a separate report in August, the bank said the Philippines ranked fourth in ChatGPT traffic as of March 2024.

The World Bank noted that five middle-income countries — Brazil, India, Indonesia, Mexico and the Philippines — showed “generative AI traffic levels significantly higher relative to the US than their other metrics would suggest.”

Bilal Khan Muhammad, social sector economist at the Asian Development Bank, noted that AI advancements are now impacting white-collar jobs, with many tasks being performed by AI tools.

“But then with the recent advancements in AI, we also see white-collar jobs have also been replaced by these AI tools where we are seeing a lot of tasks now can be performed by the AI itself.

You just ask the AI to help you with the representation or format a document or help you prepare a draft,” he said.

Mr. Varela said AI could be a “productivity shock” and provide opportunities for workers in the Philippines.

The government’s Trabaho Para Sa Bayan plan needs to explore how “to take advantage of the technological changes that are going to affect job creation,” he added.

At the same event, the departments of Economy, Planning, and Development (DEPDev), Trade and Industry and Labor and Employment, launched the Trabaho Para sa Bayan Plan 2025-2034.

The 10-year plan aims to strengthen and future-proof the workforce.

The plan includes a research agenda to gauge the impact of AI on labor demand across various industries, job roles, and skill levels, and identify vulnerable occupations.

Labor Secretary Bienvenido E. Laguesma said the government has yet to firm up a national policy on AI.

“We believe that AI can supplement, can complement, but cannot replace,” he told reporters. 

Mr. Laguesma noted that the National Innovation Council, chaired by President Ferdinand R. Marcos, Jr., approved the creation of a think tank which will create a roadmap for AI use.

The think tank, whose lead agency will be the Department of Science and Technology, will guide the drafting of AI policy.

“Protection does not mean retention. It could mean upgrading, looking for another job, facilitating their employment, and the provision of social safety nets. That’s where we are,” Mr. Laguesma said.

Meanwhile, DEPDev Undersecretary Rosemarie G. Edillon noted that the low exposure of AI stems from the overall low level of technology adoption in the Philippines.

“Underlying all this, especially on the part of data and then creating models, this is really where you will need this policy on ethics, on the use of AI,” she added.

Source: Business World

Government unveils 10-yr. jobs masterplan

The Philippines government on Monday launched a 10-year employment masterplan, which is targeting to increase the labor force participation rate (LFPR) to 68.2% by 2034.

“This is a very ambitious plan. If you look at the targets, it’s simple, we want to raise our LFPR from 64% to 68%,” Department of Economy, Planning, and Development (DEPDev) Undersecretary Rosemarie G. Edillon told reporters.

“So, this is actually a big ask, especially since by 2035, the majority of the workforce will be coming from Gen Z and Gen Alpha. So, we actually need a big policy reform,” she added.

Launched by the DEPDev, the Department of Trade and Industry (DTI), and the Department of Labor and Employment, the Trabaho Para sa Bayan (TPB) Plan aims to strengthen and future-proof the country’s workforce.

Under the plan, the government set near-term and long-term initiatives aimed at addressing challenges faced by the local labor market, such as rapid digitalization, geopolitical tensions, climate change, and demographic shifts.

Ms. Edillon said that the country’s LFPR is the lowest among the Association of Southeast Asian Nation (ASEAN) countries.

“Taking out the COVID-19 (coronavirus disease 2019) years, our LFPR is about less than 65%, but for the other countries, it is actually in the high 60s. You have Vietnam over there with an LFPR in the high 70s,” she added.

Preliminary data from the Philippine Statistics Authority showed that LFPR in February was estimated at 64.5%. For the first two months, the average LFPR stood at 64.2%.

However, the new jobs masterplan did not indicate any targets on how many jobs will be created until 2034.

“The problem with having a target with respect to jobs is that it’s very difficult, especially since we are moving towards a framework for flexible work arrangements where it would be possible for you to hold more than one job,” said Ms. Edillon.

“We’re also moving towards having a framework for part-time jobs. So, it’s difficult [to see] how it will translate into the number of jobs,” she added.

Labor Secretary Bienvenido E. Laguesma said that there have been previous targets to create a million jobs.

“But this does not ensure there will be enough jobs created for the new entrants (to the labor market),” he said.

“It’s not that simple to say that we want to create one or two million jobs by a certain year. What we want to see is that every Filipino family will have a job,” he added.

The TPB Plan also set a target of decreasing the unemployment rate to 3% by 2034 from 3.8% in 2024 and the underemployment rate to 7-9% from 13.3% last year.

In addition, the masterplan also aims to increase the female LFPR to 59% by 2034, which Ms. Edillon said is the lowest in the ASEAN region.

“Ours is about 48.8%, while in Vietnam it is actually 72.5%. So can you just imagine how much more human capital we could add if we could actually increase the LFPR for women?” she added.

The TPB Plan is also targeting to improve the country’s domestic industry diversification and production, as well as export complexity.

Citing the Global Innovation Index, Ms. Edillon said that the two factors measure the level of sophistication of the economy.

“That is actually the goal, that we will be a more competitive country before 2034. So that is actually the goal of the National Innovation Agenda and Strategy Document,” she added.

The TPB Plan outlines priority strategies that aim to address labor demand, supply, and governance, as well as how to future-proof labor demand, supply, and governance.

Strategies to ensure labor demand include expansion of market access, encouraging investments in priority sectors, ensuring ease of doing business, establishment of a dynamic innovation ecosystem, and promotion of technology adoption and enterprise-based education and training.

To improve labor supply, the TPB Plan recognized the need to expand lifelong learning opportunities, upgrade the design of skills training programs, enhance overseas Filipino reintegration programs, and increase program take-up among disadvantaged sectors.

Meanwhile, the TPB also cited 18 policy recommendations, which are seen to create an “inclusive and dynamic labor market environment.”

These policies include the Konektadong Pinoy bill, the Lifelong Learning Development Bill, tax incentives for employees on a work-from-home program, the Freelancers’ Protection Act, and the Amendment of the Maternity Leave Law, among others.

Source: Business World

Jobless rate drops to 3.8% in February

The country's jobs situation improved in February, the Philippine Statistics Authority (PSA) reported on Tuesday, with unemployment falling to 3.8 percent from 4.3 percent at the start of the year.

The result — the lowest since December's 3.1 percent but higher than the year-earlier 3.5 percent — was equivalent to 1.94 million Filipinos without jobs, 228,000 lower than January's 2.16 million but 141,000 higher than the year-ago 1.8 million.

National Statistician and PSA chief Claire Dennis Mapa said the accommodation and food service sector provided the biggest boost by adding around 377,000 jobs ahead of the summer season, and that preparations for the midterm elections also helped create more job opportunities for Filipinos.

"In February, about 41,000 people were employed by political organizations. This will likely continue until May and is part of seasonal trends," Mapa said.

Job quality up

Underemployment — which counts those looking for more work or an extra job — also improved in February by dropping to 10.1 percent, or 4.96 million individuals, down from 13.3 percent and 12.4 percent a month and year earlier, respectively.

With employment rising to 96.2 percent from January's 95.7 percent — but slightly lower than the 96.5 percent in February last year — the number of those with jobs increased to 49.15 million from 48.49 million.

The services sector continued to account for the bulk of jobs with a share of 61.6 percent, while agriculture and industry respectively had 20.1 percent and 18.3 percent of the total.

The labor force participation rate — an estimate of the number of people actively engaged in the workforce — registered at 64.5, higher than the 63.9 percent recorded in the previous month but again lower than February 2024's 64.8 percent.

Improvements still needed

Despite the February improvement, the National Economic and Development Authority (NEDA) said that unemployment in the country remained higher compared to neighbors such as Malaysia (3.1 percent) and Vietnam (2.2 percent), but was lower than China (5.4 percent) and India (6.4 percent).

Socioeconomic Planning Secretary Arsenio Balisacan said the government remained focused on generating strategic and high-quality employment opportunities by attracting investments, accelerating infrastructure projects, and promoting innovation.

"We will build on our momentum and intensify our efforts to secure strategic job-generating investments, promote a dynamic and innovative business environment, and diversify growth drivers," the NEDA chief said.

"The continued rollout and implementation of high-impact infrastructure flagship projects, particularly in energy, transport, and digital connectivity, will boost domestic employment and business activity," he added.

To better equip Filipino workers for an evolving labor market, Balisacan said the government was prioritizing upskilling and lifelong learning.

The NEDA said it was developing a Lifelong Learning Development Framework that would support continuous learning and help workers acquire micro-credentials or pursue higher education while employed.

It also plans to expand partnerships with the private sector to ensure that training programs align with industry needs.

This will be implemented under the Enterprise-Based Education and Training Framework, whose implementing rules were finalized in February by the Technical Education and Skills Development Authority and the Department of Labor and Employment.

Source: Manila Times