promoting gender equality in the labor market in the philippines

8/2/2019 Promoting Gender Equality in the Labor Market in the Philippines

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Leda CelisMyla Magsombol

Carolyn I. Sobritchea

The views expressed in this paper are the views of the author and do not necessarily reflect the views or policies of the Asian

Development Bank (ADB), or its Board of Governors, or the governments they represent. ADB does not guarantee the accuracyof the data included in this paper and accepts no responsibility for any consequence of their use. The countries listed in this paperdo not imply any view on ADB's part as to sovereignty or independent status or necessarily conform to ADB's terminology.


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About the Project

Asian Development Bank Strategy 2020 recognizesthat gender equity is an essential factor to bringabout inclusive economic and to enable women tobenefit from economic expansion in the Asia PacificRegion.

This Technical Assistance (TA) Project is one of ADBs responses to assist in the promotion of

inclusive growth for women in three Asian countries- the Philippines, Cambodia and Kazakhstan.


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Objective of the TA Project

To identify potential labour markets and social andlegislative reforms that will promote decent and

expanded employment opportunities for women inthe three countries.


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Coverage of the Country Reports


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Methodology gender analysis of the labor markets, policies, legislation and

legal practices;

analyzing the determinants and constraints of employment ofwomen;

identifying good employment practice examples within thecountry;

identifying and describing two case studies which havepotential to expand or improve employment opportunities for

women;

making gender inclusive legal and policy recommendationsfor promoting womens employment;

making recommendations in respect of ADB operations topromote expanded employment opportunities for women.


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Has economic growth in thePhilipines been inclusive?

Major Observations

The country has generally experiences Low growth and it has NOT beeninclusive.

Unemployment has risen, employment has not absorbed populationseeking work.

The labor force has shifted out of agriculture but the manufacturing andservices sector have not expanded fast enough to absorb labor. Exports andFDI are low, relative to other parts of Asia, and there has not been relatedemployment growth.

Two sectors appear to have had some growth, BPOs and tourism. Sincewomen are employed in both sub-sectors, there is some indication of

expanded employment for women in these two sectors. Poverty rates have not decreased and in parts of the country actually

increased Income inequality has increased


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Situation of Women

Labor force participation rate (49.3%) Unemployment rate (6.7%)

Proportion of unpaid family workers (56.0%)

Proportion of poor household by sex or householdhead (16.3 %)

Proportion of poor women (30.1 %)

Most common occupations--Laborers and unskilled

workers Major industry division where most are employed--

wholesale and retail


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The BPO Industry and Prospectsfor Promoting Inclusive Growth

The Philippines share of this market can generate some US $25billion annually, .

However, it must maintain its competitiveness and leveragegovernment support to meet the expected targets.

If these are accomplished, the IT-BPO industry can employ up to 1.3

million jobs annually and an average 2.5% yearly increase in shareof the GDP.

All of the industrys sub-sectors posted double-digit growth rateswith the Contact Center being the largest posting of revenues,contributing half (50.9 percent or US$4.2 billion) of the industrys

receipts in 2009. About half of those employed in the BPO industry is

composed of females in the Contact Center. This predictedfuture growth of the industry would be an apt sector topromote inclusive growth for future employment of women

and also provide an opportunity to ensure that it isundertaken in compliance with decent work conditions


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Gender Issues in the BPO Industry

More females in the call centers ; more males in IT-related sectors;

The gender issues in call center work include highincidence of urinary track infection (UTI), eyestrain, back aches and pains, headaches, and otherrelated muscular pains due to prolonged sitting , aswell as lack of time for rest and relaxation; increased

risk of breast cancer); Night work poses some safety and security risks;


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Policy & Legal Framework onEmployment

A. ConstitutionB. International Covenants

1. UN Convention on the Elimination on All Forms ofDiscrimination Against Women

2. Beijing Platform for Action

3. ILO Conventions

C. National Legislation


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The Constitution The State shall afford full protection to labor, local andoverseas, organized and unorganized, and promote fullemployment and equality of employment opportunities

for all.xxx (Sec.3, Art. XIII)

The State shall protect working women by providing safeand healthful working conditions, taking into account

their maternal functions, and such facilities andopportunities that will enhance their welfare andenable them to realize their full potential in the serviceof the nation (Sec.14, Art. XIII)


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National Legislation Labor Code of the Philippines

Republic Act. No. 7877 An Act Declaring SexualHarassment Unlawful in the Employment, Educationof Training Environment, and for other Purpose (14February 1995)

Republic Act No. 6725 - An Act Strengthening the

Prohibition on Discrimination Against Women withRespect to Terms and Conditions of Employment,

Amending for the Purpose Article 135 of the LaborCode, as Amended (12 May 1989)


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National Legislation Republic Act No. 7192 An Act Promoting the

Integration of Women as Full and Equal Partners ofMen in development and Nation Building and for other

Purposes ( 11 December 1991) Republic Act No. 9710 Magna Carta of Women (14

August 2009)


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Legal Issues Affecting Gender andEmployment Failure to enact a national law which would give proper

definition of discrimination in accordance with Article 1of the Convention on the Elimination of all forms ofDiscrimination Against Women

Restrictive definition of equal pay for work of equal valuein Article 135 (a) of the Labor Code and ImplementingRules of RA 6725

Lack of proper wage setting process in order to ensure thatthe work of women is appropriately analyzed, assessedand that they are properly remunerated for their work


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Legal Issues Affecting Gender andEmployment Membership requirement in Article 234 (c) of the LC poses

a deterrent to minority groups, such as women, who wishto set up or form unions with legitimate status

The right of women to engage in collective bargaining and

the right to legitimately strike are adversely affected byreason of their minority situation

Sexual harassment in the workplace still persists.


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PHILIPPINE MACRO ECONOMIC INDICATORS


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GDP GROWTH RATE (1999-2010)


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GDP BY INDUSTRIAL ORIGIN


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Economic growth of the country has been quite modest and resilient compared

to its Asian neighbors


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Foreign Direct Investments

NSCB SEXY STATISTICS


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Figure 4. PEZA approved FDI, Q1 2003 to Q4 2011 (in million pesos)


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Figure 3. Total Approved FDI by Country of Investor, First Quarter 2011

Source: BOI, CDC, PEZA, SBMA


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LOCATOR INVESTMENTS BY PRODUCT SECTOR( 1995 - 2008 )

Information TechnologyServices

Transport and Car Parts

Electrical Machineryand Apparatus

Chemical and ChemicalProductsMedical, Precision andOptical Instruments

Rubber andPlastic ProductsGarments and Textiles

Other Manufactures

7.66 %

5.80 %

6.75 %

2.41 %

2.05 %

1.56 %

0.95 %

26.44 %

46.38 %Electronics andSemiconductors


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1995

1997

1996

1998

1999

2000

20012002

2003

2004

2005

2006

121,823

152,250

183,709

219,791

247,076

91,860

278,407

289,548328,384

362,851

406,752

451,279

545,025

1994

2007 593,108

2008 608,387

ECOZONE DIRECT EMPLOYMENT

2.58 %


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BPOS CONTRIBUTIONS TO THE ECONOMY


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EMPLOYMENT SITUATION

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Union rate and CBAs registered, Phils.


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Education, Employment, and Wages


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EMPLOYMENT BY CLASS OF WORKER AND BY SEX

3

MENWOMEN



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Youth unemployment

rate2, 1995 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 201015-24 years, in % 19.8 24.2 23.3 24.2 23.2 23.9 17.2 17.8 16.8 17.4 17.6 17.6

Men 17.5 22.1 20.8 21.8 20.8 21.6 15.8 16.8 15.7 16.2 16.2 16.5

Women 24.0 27.9 27.4 28.0 27.2 27.8 19.5 19.4 18.4 19.4 19.8 19.5

Unemployment2 by

level of education, %

distribution 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0No schooling 2.0 1.9 2.0 1.9 2.0 2.4 0.7 0.7 0.7 0.5 0.5 0.5

Primary 23.3 21.8 21.3 20.6 20.9 20.7 15.2 15.2 15.1 14.0 13.3 13.1

Secondary 42.6 42.3 43.2 42.8 42.2 43.0 44.5 45.7 46.1 45.5 45.2 45.2

Tertiary 31.6 32.9 33.5 34.7 34.9 34.0 39.5 38.5 38.2 40.0 41.1 41.2

Not reported 0.4 1.1 0.0 * * 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Men 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

No schooling 1.8 1.6 1.6 1.5 1.7 2.0 0.6 0.6 0.7 0.6 0.4 0.6

Primary 24.3 23.4 22.4 22.0 22.3 22.4 17.3 17.6 17.6 16.6 16.2 15.9

Secondary 45.0 43.8 46.0 45.5 44.0 43.9 45.7 46.4 46.8 46.8 46.7 46.7

Tertiary 28.5 30.1 30.0 31.0 32.0 31.7 36.4 35.3 35.0 36.1 36.8 36.8

Not reported 0.6 1.2 0.0 * * 0.0 0.0 0.0 0.0 0.0 0.0 0.1

Women 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

No schooling 2.3 2.5 2.6 2.5 2.3 2.8 0.9 0.7 0.7 0.4 0.6 0.4

Primary 22.1 19.5 19.7 18.6 18.9 18.0 11.9 10.9 10.9 9.6 8.6 8.3

Secondary 39.4 39.9 39.2 38.9 39.5 41.5 42.7 44.4 44.7 43.5 42.8 42.6

Tertiary 36.0 37.4 38.6 40.0 39.3 37.6 44.6 43.9 43.7 46.6 48.2 48.7

Not reported 0.2 0.9 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1

Education and Unemployment (level of education and by sex)

Source: BLES Decent Work Indicators


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Virtuous Circle of Links among Growth, Employment and Poverty

Reduction (by FNV)


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Copyright CVR/IT Consulting 2004


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Education: No. of enrolment

INDICATORS OF INCLUSIVE


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INDICATORS OF INCLUSIVE

GROWTH


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Major findings and issues


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Major findings and issues

Employment has not kept up with the growth,unemployment has risen over the period despitepositive growth rates;

The structural change is reflected in the decline ofGDP by the agri sector and rise in service sector;

Foreign direct investments gets a very small share of

the GDP with largest impact on manufacturing,finance and real estate including services. With thegrowing BPO sector it is expected to generate moreemployment;

The increase in imports and none in exports meansemployment losses in import competing sectors;


Th h b d i t i id i th


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There has been no decrease in poverty incidence in thePhilippines, in fact in 2003 and 2009 poverty increased

from 20.0 to 20.9%. There are wide disparities in the poverty rate across

regions ranging from 2.6 % in NCR to 39.8 in Caraga;while most regions have increase poverty rates, someregions have decreased poverty rate from 40.5 to 36.6%;

Low labor force participation rates of women;

High gendered occupational and industrial segregation

of employment; High gendered wage gap in certain occupations

Increase in excessive working hours for women

Female headed households have higher average annualincome than male headed households;

Average weekly hours of men and women are similarand has not changed much on the average between

2005-2010.


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Lack of social protection; Higher number of young people less than 14 yearsold who will soon enter the labor market thusmaking expansion of employment more critical;

Population growth rate has declined (2000-2007); Higher poverty rates in the regions such as the

ARMM, Caraga etc. alongside with high population

growth rates; Inverse relationships between fertility and womens

employment ( small number of children with labormarket participation rates) lower opportunity costcompared to women with high number of children;

Number of men and women trainees notcompleting the technical and vocational training

courses;

Girls compared to boys have higher enrolment and


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Girls compared to boys have higher enrolment andgraduation rates of secondary school;

Higher unemployment among the college graduatesthan high school graduates;

Despite decline in gender gap, there remained low laborforce participation rates among women?

The lack of child care facilities; job discrimination; andhigh value of home production;

Considerable variations in the LFP across Philippines

from 33.1% in the ARMM to 57.7% in NorthernMindanao;

High LFPR among women with higher education , withshift to service sector with more women in public sector

; Decline of real wage in both men and women, and

decline in wage gap with the increase of percentage ofwomen earning more than 2/3 median hourly basic pay;



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Women work longer hours compared to men;

Overseas employment has played an importantemployment strategy for both men and women;

Women likely to work in low skills occupations; Male and female migrant workers are almost equal in

numbers, while new hires showed bigger figures forwomen;

Women over represented in sectors where the crisiscaused the huge job cuts ie. Export mfg., garment

industry, electronics and services. Women as responsible for family welfare are adversely

affected by cuts in public spending on safety nets andreduction in remittance income;

More women in precarious jobs with worst workingconditions either as migrant workers, or locally in thegarment industry.



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Other concerns FLEXIBILIZATION OF

LABOR

WORKERS PRODUCTIVITY

SOCIAL PROTECTION RISING OF INFORMAL

LABOR, UNDEREMPLOYMENT,

UNEMPLOYMENT ANDDISCOURAGED WORKERS ;

ACCESS TO TRAINING ANDEMPLOYMENT BY WOMEN;

INADEQUATE LEVELS OFHUMAN DEVELOPMENT.

HIGH POVERTY INCIDENCE

POOR AND DEGRADEDENVIRONMENT;

GENDER RESPONSIVEGOVERNMENT PROJECTS;

EMPLOYMENTGENERATION STRATS

LABOR MARKETMECHANISMS THATADDRESSES MISMATCH;

CONSUMPTION DRIVENRATHER THANINVESTMENT DRIVENECONOMY;

LABOR MARKET MODELTHAT PROMOTES FULLEMPLOYMENT.

RECOMMENDATIONS


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RECOMMENDATIONS

Monitoring of the development plan to measureachieved targets as against actual performance.

Increase of GDP per capita income from highercontribution of physical capital to GDP growth, as well

as target increase of productivity, increase ininvestments, human capital, more infrastructure, healthalong with improvement of governance with strongemphasis on research and development, science and

technology,; Generate employment in primary industries and

services, conduct training based on the needs of theindustries and available skills of the manpower, adopt

an iron hand in the development of manpower planningpolicies towards full employment promotion and skillsenhancement;


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Review of Labor Code

(Contractualization, LaborStandards, Magna carta forInformal workers);

Training should be tailoredto individual needs and

circumstances (womenshould not be regarded ashomogenous with identicaltraining needs), but shouldconsider the multiple burden

and restrictions due to childcare duties );

Policies to reconcile workand family responsibilitieslike access to child carefacilities fully supported withemployers;

Bridging program can help

women overcome barriers tolabor market participation(programs to make them re-enter the workforce afterprolonged absence, basic

skills required to participatein labor force like counsellingservices, life skills training,basic training in numeracyand literacy). Also training in

job search skills, interviewtechniques and otheremployment related skills);

Training linked to areas ofhigh demand and not in

areas where there aresurplus;

In deep research into thelabour market and impact offlexible work arrangements.

promoting gender equality in the labor market in the philippines

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