Of Jobs, Togas and the Future

Picture this: you, in your toga, walking along the long aisle, waiting for your name to be called, excited to get hold of that diploma, or medal (if you are an honor student), until that final moment came when you could release a sigh of relief because you’re done with college.

So you’ve graduated. But that only means one thing. You’re old enough to work for your own money, and fend for your own needs and wants.

But after the wild whopping has subsided, will the government be able to produce jobs for the graduating batch of 2009 when in fact unemployment has become a regular face in Philippine society?

What the numbers show

According to figures from the Commission on Higher Education, there are approximately 520,000 graduates this year. Their future is not yet crystal clear as there is still no figure on the jobs the government expects to generate. Last year the government was able to produce 480,000 wage and salary jobs, not enough to absorb all the graduates that year. The dilemma for the government now is, how could all the graduates this be absorbed especially since the issue of unemployment is one of the government’s most obvious weaknesses.

Based on the latest figures released by the National Statistics Office (NSO), unemployment rose to 7.7 percent during the fourth quarter of 2008, an increase from the unemployment rate of 7.3 percent during the same period last year. More and more Filipinos are unemployed – without a job and looking for one, if we go by the government’s definition of unemployment. Such figure may not even include the migrants who have sought employment abroad. This translates into difficult times ahead for graduates hoping to land a job that would fit their degrees.

IBON Foundation, a research group tackling socioeconomic issues, released statistics that paint a worse unemployment situation. According to figures from IBON, there are approximately 4.3 million unemployed, constituting 11.2 percent of the labor force. This figure does not yet include the 6.2 million underemployed Filipinos.

With all these statistics, what is in store for the hopeful graduates of 2009?

Survival of the fittest

In a society where names either make or break a person, it is quite unusual that a graduate from a very prestigious learning institute will have a hard time finding the perfect job. But as they say, in this game of life, only the fit survives. Now, what does it really mean to be ‘fit’?

Paula Pulido, a graduating Comparative Literature student from the University of the Philippines (UP), believes that the school you came from counts a lot.

“Iba pa rin y’ung pag sinabi mo na taga-UP ka, may impact, eh. Parang, wow, taga UP ka? Edge yun sa iba eh,” (It makes a difference when you say you are from UP. It’s like, wow, you’re from UP? It’s an edge over the others), Pulido said. “At saka yung title, kapag MA or Doctoral, parang iba yung dating” (And when you have a title, like an MA or a doctorate, it makes a difference.)

An AB Legal Management graduating student from San Beda College, Kristel Joy Masangkay thinks the same way. She believes that coming from an “eligible” law school paves the way for a better job than that of the others.

“School is the next thing employers look at after the name in the application form,” Masangkay said. “Parang kapag galing ka sa kilalang school, mas madaling makahanap ng trabaho” (Apparently if you come from a reputable school, it’s easier to find a job), adds Masangkay.

But the optimism of students falters when asked if the government would be able to generate jobs for them after graduating.

“Kung y’ung mga graduates nga last year, until now, unemployed pa din, pa’no pa kami?” (If last year’s graduates are still unemployed, how will we fare?) quipped Jovy Agarma, a graduating BS Economics student from UP.

Agarma believes that the government is way too weak to produce jobs for them, most especially now that the government is still in debt for billions of dollars from foreign countries.

Job-Skill mismatch

IBON’s Media Department Head, Ms. Rhea Padilla, believes the name of the school doesn’t really matter, for in some cases, it produces a job-skill mismatch.

“The question is not what school you came from but whether you fit the job. But most importantly, we have to ask, what are the jobs available?” adds Padilla.

She also said that there is a trend in which graduates with good credentials end up as welders or domestic helpers, for instance, leading to underemployment. For example, a Business Administration magna cum laude could end up as a call center agent.

Not-so-absorbent

One question leaves us baffled, and searching for answers: why does it seem that the government is having a hard time providing graduates good, quality jobs?

According to Padilla, there are reasons why the government would not be able to provide jobs for new graduates. First, she said, the number of jobs produced by the government is less than the number of job seekers.

Second, the increasing number of migrants manifests the lack of job opportunities in the country, Padilla said, “If there’s work at home, hindi na lalabas ng bansa (there’s no need to go abroad).” Filipinos working abroad demonstrates the dreadful state of the economy in the Philippines.

Lastly, there is a lack of job security. Some companies hire based on contracts, which leaves the workers with not-so-stable jobs, since most contractual jobs are for six months only. Even call centers are no longer the same lifesavers they used to be, as they are now laying off employees. Even big call centers cut cost, relocate and hire on a contractual basis. Emerging establishments are very much in danger, especially BPOs (Business Process Outsourcing) affected by the recession in the United States.

These leave the graduates in a state of uncertainty, more so now that there are indications that the economy is sliding.

A rainbow that’s not so bright

Dubbed as the lifesaver, the once rainbow industry is now losing its glow. Call center companies are currently laying off their workers – an effect of the economic crisis occurring in the United States. Because the Philippine call center industry is directly connected to America’s industry, it is not anymore surprising that the effects of the crisis are carried over. As the famous saying goes, “When America sneezes, the Philippines catches cold.”

The United States, being the “center” or heart of this industry is going through recession and is shedding off jobs. One would think that Advanced Contact Solutions Inc., as one of the leading call center companies in the country, can handle all the pressures from the recession, but as fate would have it, the company laid off 900 of its employees, giving cause for fear to those who are currently in its employ and to those who are aspiring to be among its employees. The retrenchments, according to reliable reports, were caused by the bankruptcy of its major US-based clients.

According to IBON Foundation, contact call center operators may opt to protect their profits by cutting down on employees’ salaries and benefits. They may also opt for contractualization or hiring their workers on short-term contract basis to reduce operation costs.

Another action that companies might take is relocation. Call center companies transfer from Manila to the regions, searching for a cheaper pool of employees who can give Manileños a run for their money.

Although the government is in denial, they won’t be able to hide the painful truth: there are less job opportunities for Filipinos even in the very industry, which it once considered as a lifesaver.

Are THEY doing their job?

With all the pressures on graduates seeking jobs for their survival, the spotlight is focused on the government. Part of the government’s responsibility to its citizens is providing support for job-seekers.

Labor Secretary Marianito D. Roque assured that they would assist new entrants to the labor force, primarily fresh graduates of colleges and universities, in finding good job opportunities through the job fairs it would hold in different universities and other locations nationwide.

This, according to Roque, would help in diminishing unemployment and winning the battle against the global economic crisis. According to reports from the Manila Bulletin, Labor Undersecretary Rosalinda Baldoz admitted that there is a problem in matching available jobs with the skills of new graduates. Such problem would be a big challenge to the government.

The government stresses that it is giving full support to job seekers, which it claims was made evident when President Gloria Macapagal-Arroyo signed Executive Order No. 782 on Feb. 10. This EO makes available temporary jobs in different government agencies to help Filipinos cope with the crisis occurring throughout the world.

Still, the government remains optimistic regarding the prospects of the call center industry as well as hotels and restaurants which are, based on reports, in need of 3,000 workers. The government believes these two industries would provide the biggest number of jobs to new applicants, especially the new graduates.

Overseas jobs are accommodating the flux of graduates as well. Based on reports from Manila Bulletin, there are 500,000 vacancies abroad primarily in the Middle East for construction, oil and gas, and maintenance services; and Canada which opened its gates to Filipinos for two-year renewable contracts.

We speak, THEY listen

The biggest burden lies not on the graduates but on the government whose main purpose is to serve its people. Arroyo has promised to cater to the needs of the unemployed and to continue producing jobs for those who most need it. Padilla said, “The graduates are the wealth of the Philippines, as what was taught to us in first grade. And as what was taught to us further is the need to take care of them.”

Thus, she said, the labor export policy of the government is flawed. Even as the dollar remittances of migrant workers are being used as a crutch by the ailing Philippine economy – mitigating the unemployment situation, propping up the foreign exchange reserves of the country, and fuelling consumption - migrants contribute more to other countries’ economies. Their productive labor and wealth-creating potential is not being maximized in the country. That is a reality the government has to face if it continues pushing its workers to seek jobs outside of the country.

The government has been putting forward recommendations to improve the employment situation in the country. Citing the fact that competition for available jobs here and abroad are getting increasingly stiffer, one solution being proposed by the government is to add one more year in college to strengthen and enhance the skills of graduates.

However, there are those who disagree with this solution. Padilla said, “Hindi kulang sa pag-aaral ang mga Pilipino. Kailangan lang ang suporta ng gobyerno” (Filipinos are not lacking in education. They just need support from the government.)(Bulatlat.com)