Earnings and employment will depend on the rate, quality, and distributional aspects of economic growth. The rate of economic growth determines the extent of employment opportunities. Inclusive growth, in particular, must mean a higher and broad-based demand for labor and therefore more employment opportunities. This is important, considering the persistent unemployment and underemployment levels in the country. The sheer volume of workers working temporarily overseas2 indicates the lack of employment opportunities and suggests that domestic investments and entrepreneurship are being held back. These constraints need to be addressed along with strategies formulated to ensure that the working poor and the unemployed can participate and benefit from the development process.
A lack of gainful and quality employment opportunities is an important reason why poverty incidence in 2006 went up to 32.9 percent from 30 percent in 2003 (Table 2.2) and essentially stagnated between 2006 and 2009.
Disaggregated data also shows that across the different regions of the country, poverty incidence among families generally increased, with Regions 3, 4-B, 7, 8, and ARMM posting more than 3 percentage points increases in poverty. The Regions ARMM (55.3%), CARAGA (45.5%), MIMAROPA (43.7%), Bicol (41.8%), Eastern Visayas (40.7%), and Central Visayas (40.2%) also registered more than 40 percent poverty incidence while NCR had the lowest estimated poverty incidence of 7.1 percent. For the period 2003-2009, the geographical distribution of poverty remained unchanged, with the locus of high poverty incidence being consistent in MIMAROPA, Bicol, Eastern Visayas, and in Mindanao (Figure 2.9).
The regional distribution of poverty also highlights the large disparities in family income across the country. Most of the regions in Luzon had relatively lower shares of families living below the poverty threshold than in MIMAROPA, Bicol, Visayas and the Mindanao regions. The lower poverty incidence in NCR and Regions 1, 2, 3 and 4-A can be attributed to higher access to employment opportunities and basic social services, while armed conflict and peace and order problems resulted in higher poverty in Mindanao.
_________________________________________________________________________________________
2 About one million OFWs are deployed per year, with their remittances accounting for at least 9.5 percent of GNP in 2009.