A GLOBAL investment banker rejected the idea that the Philippines will reap demographic dividends because of its young population, with many individuals under 30 expected to remain in the workforce for decades.
"When you're telling 20 percent of the people who come into the workforce every year to go abroad or starve, that is not a demographic dividend," Stephen CuUnjieng said at The Manila Times midyear economic briefing on Thursday.
He added that demographic dividend may apply to countries like Korea, Japan, and the Scandinavian region, where aging populations and shrinking workforces create significant retirement liabilities. "So we're saying the Philippines is in a wonderful demographic dividend spot because we have so many people under 30 who are going to have 30 more years of prime working age? I'm sorry, I just don't agree," CuUnjieng said.
He noted that this could only be possible in countries with first-world economic status. CuUnjieng urged policymakers to focus on creating sustainable employment opportunities rather than relying on demographic trends alone.
The latest report from the Philippine Statistics Authority showed that the country's jobless rate rose for a second straight month, to 4.0 percent from 3.9 percent in March.
This translated to some 2.04 million unemployed Filipinos, 40,000 more than the previous month.
The employment rate, likewise, fell to 96.0 percent from 96.1 percent in March but was higher than April 2023's 95.5 percent.
The number of individuals with jobs reached 48.36 million, lower than March's 49.15 million but up from the year-earlier 48.06 million.
The figures prompted the Philippine Chamber of Commerce and Industry (PCCI) to urge the government to incentivize Filipino talents, especially in knowledge-based industries, for them to stay in the country.
PCCI President Enunina Mangio said that despite the Philippines consistently ranking high in the number of knowledge-based jobs and workers with highly qualified managers and information technology staff and engineers, other countries fare better in developing tech talents.
Economists and government officials share their insights during The Manila Times midyear economic forum, “Inspiring optimism, stimulating growth,” at Lanson Place, Mall of Asia Complex, Pasay City on June 20, 2024. Speakers were Philippine Chamber of Commerce and Industry President Enunina 'Nina' Mangio, International Workplace Group Philippine Country Manager Lars Wittig, Investment banker and Times columnist Stephen CuUnjieng, Citi Philippines CEO Paul Favila, and Bangko Sentral ng Pilipinas Senior Assistant Governor Iluminada Sicat. PHOTO BY J. GERARD SEGUIA Economists and government officials share their insights during The Manila Times midyear economic forum, “Inspiring optimism, stimulating growth,” at Lanson Place, Mall of Asia Complex, Pasay City on June 20, 2024. Speakers were Philippine Chamber of Commerce and Industry President Enunina 'Nina' Mangio, International Workplace Group Philippine Country Manager Lars Wittig, Investment banker and Times columnist Stephen CuUnjieng, Citi Philippines CEO Paul Favila, and Bangko Sentral ng Pilipinas Senior Assistant Governor Iluminada Sicat. PHOTO BY J. GERARD SEGUIA Economists and government officials share their insights during The Manila Times midyear economic forum, “Inspiring optimism, stimulating growth,” at Lanson Place, Mall of Asia Complex, Pasay City on June 20, 2024. Speakers were Philippine Chamber of Commerce and Industry President Enunina 'Nina' Mangio, International Workplace Group Philippine Country Manager Lars Wittig, Investment banker and Times columnist Stephen CuUnjieng, Citi Philippines CEO Paul Favila, and Bangko Sentral ng Pilipinas Senior Assistant Governor Iluminada Sicat. PHOTO BY J. GERARD SEGUIA Economists and government officials share their insights during The Manila Times midyear economic forum, “Inspiring optimism, stimulating growth,” at Lanson Place, Mall of Asia Complex, Pasay City on June 20, 2024. Speakers were Philippine Chamber of Commerce and Industry President Enunina 'Nina' Mangio, International Workplace Group Philippine Country Manager Lars Wittig, Investment banker and Times columnist Stephen CuUnjieng, Citi Philippines CEO Paul Favila, and Bangko Sentral ng Pilipinas Senior Assistant Governor Iluminada Sicat. PHOTO BY J. GERARD SEGUIA Economists and government officials share their insights during The Manila Times midyear economic forum, “Inspiring optimism, stimulating growth,” at Lanson Place, Mall of Asia Complex, Pasay City on June 20, 2024. Speakers were Philippine Chamber of Commerce and Industry President Enunina 'Nina' Mangio, International Workplace Group Philippine Country Manager Lars Wittig, Investment banker and Times columnist Stephen CuUnjieng, Citi Philippines CEO Paul Favila, and Bangko Sentral ng Pilipinas Senior Assistant Governor Iluminada Sicat. PHOTO BY J. GERARD SEGUIA Economists and government officials share their insights during The Manila Times midyear economic forum, “Inspiring optimism, stimulating growth,” at Lanson Place, Mall of Asia Complex, Pasay City on June 20, 2024. Speakers were Philippine Chamber of Commerce and Industry President Enunina 'Nina' Mangio, International Workplace Group Philippine Country Manager Lars Wittig, Investment banker and Times columnist Stephen CuUnjieng, Citi Philippines CEO Paul Favila, and Bangko Sentral ng Pilipinas Senior Assistant Governor Iluminada Sicat. PHOTO BY J. GERARD SEGUIA Economists and government officials share their insights during The Manila Times midyear economic forum, “Inspiring optimism, stimulating growth,” at Lanson Place, Mall of Asia Complex, Pasay City on June 20, 2024. Speakers were Philippine Chamber of Commerce and Industry President Enunina 'Nina' Mangio, International Workplace Group Philippine Country Manager Lars Wittig, Investment banker and Times columnist Stephen CuUnjieng, Citi Philippines CEO Paul Favila, and Bangko Sentral ng Pilipinas Senior Assistant Governor Iluminada Sicat. PHOTO BY J. GERARD SEGUIA Economists and government officials share their insights during The Manila Times midyear economic forum, “Inspiring optimism, stimulating growth,” at Lanson Place, Mall of Asia Complex, Pasay City on June 20, 2024. Speakers were Philippine Chamber of Commerce and Industry President Enunina 'Nina' Mangio, International Workplace Group Philippine Country Manager Lars Wittig, Investment banker and Times columnist Stephen CuUnjieng, Citi Philippines CEO Paul Favila, and Bangko Sentral ng Pilipinas Senior Assistant Governor Iluminada Sicat. PHOTO BY J. GERARD SEGUIA Economists and government officials share their insights during The Manila Times midyear economic forum, “Inspiring optimism, stimulating growth,” at Lanson Place, Mall of Asia Complex, Pasay City on June 20, 2024. Speakers were Philippine Chamber of Commerce and Industry President Enunina 'Nina' Mangio, International Workplace Group Philippine Country Manager Lars Wittig, Investment banker and Times columnist Stephen CuUnjieng, Citi Philippines CEO Paul Favila, and Bangko Sentral ng Pilipinas Senior Assistant Governor Iluminada Sicat. PHOTO BY J. GERARD SEGUIA Economists and government officials share their insights during The Manila Times midyear economic forum, “Inspiring optimism, stimulating growth,” at Lanson Place, Mall of Asia Complex, Pasay City on June 20, 2024. Speakers were Philippine Chamber of Commerce and Industry President Enunina 'Nina' Mangio, International Workplace Group Philippine Country Manager Lars Wittig, Investment banker and Times columnist Stephen CuUnjieng, Citi Philippines CEO Paul Favila, and Bangko Sentral ng Pilipinas Senior Assistant Governor Iluminada Sicat. PHOTO BY J. GERARD SEGUIA Economists and government officials share their insights during The Manila Times midyear economic forum, “Inspiring optimism, stimulating growth,” at Lanson Place, Mall of Asia Complex, Pasay City on June 20, 2024. Speakers were Philippine Chamber of Commerce and Industry President Enunina 'Nina' Mangio, International Workplace Group Philippine Country Manager Lars Wittig, Investment banker and Times columnist Stephen CuUnjieng, Citi Philippines CEO Paul Favila, and Bangko Sentral ng Pilipinas Senior Assistant Governor Iluminada Sicat. PHOTO BY J. GERARD SEGUIA
"Ninety-three percent of our population are capable of being trained for essential skills and competencies.... We should be able to incentivize them to stay in our country," Mangio said at the same forum.
While rapid access and the services industry are helping the country withstand current economic challenges, the Philippines should be able to develop a resource-based sector to drive economic transformation, she said. "We have to prepare our most abundant resource, our young and capable workforce, to take advantage of the revolution that is now happening in key industries," Mangio said.
On the other hand, the PCCI chief also noted that the group is stepping up its cooperation with the government in providing a business environment that will not only make companies survive, but also make the Philippines a destination of choice for foreign investors. To achieve this, Mangio said that the government should revisit business permitting and licensing systems and procedures.
She added that streamlining and automation could impact all other priority areas like agriculture, industry and services, infrastructure, electricity, and shipping and logistics.
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