The government should build up on better labor market programs as the pandemic would have longer scarring effects on the country’s labor force even in a post-COVID era, the Asian Development Bank said.
In its latest blog, the Manila-based multilateral lender said an improved labor market is needed to aid workers and enterprises make the transition as the economy rebounds moving forward.
ADB country director Kelly Bird and economists Cristina Lozano and Teresa Mendoza warned that the change in the employment composition is seen persisting in the medium to long term.
They said, “Workers in the Philippines will be facing a challenging next few years as the country rebounds from the pandemic.”
ADB argued that the lockdowns since last year have created a bigger drop in formal employment relative to informal employment, which means generally less stable employment activities and lower quality jobs have been created.