World Bank lauds PH progress in jobs, poverty reduction

The World Bank Group (WBG) has praised the Philippines for its significant strides in job creation and poverty reduction, recognizing the country’s ability to achieve economic growth while improving the lives of its people.

During a meeting on October 22, 2024, WBG Managing Director of Operations Anna Bjerde commended the Philippines for its achievements, highlighting the country as one of the few nations balancing robust economic growth with meaningful social progress.

Finance Secretary Ralph G. Recto reported that the country’s unemployment rate has fallen to 4% as of August 2024, with 49.2 million Filipinos employed. Of this workforce, 62.4% are engaged in formal and stable employment.

Additionally, Recto noted the government’s success in reducing the poverty incidence to 15.5% in 2023. He emphasized that the country is on track to meet President Ferdinand R. Marcos Jr.’s goal of a single-digit poverty rate of 9% by the end of his term in 2028.

The WBG’s newly launched High-Level Advisory Council on Jobs is expected to play a crucial role in further advancing the Philippines’ job market. According to Bjerde, this initiative will help formulate policies to address youth and female employment while generating large-scale job opportunities.

Recto also sought WBG assistance in attracting more private-sector investments to boost capital-intensive industries and create jobs in higher value-added sectors.

In addition to job creation, Bjerde acknowledged the Philippines’ efforts in promoting gender inclusion, improving social protection programs, and advancing digitalization. She also praised the country’s leadership in crisis and disaster response, highlighting the Philippines as the first to sign the Rapid Response Option (RRO) agreement with the WBG. This model has been replicated by 25 other countries.

Bjerde assured Recto that the Marcos administration’s priorities would be integrated into the upcoming country partnership framework that the WBG is preparing for the Philippines for 2025 to 2028.

In an earlier meeting with WBG officials, the Bank reaffirmed its commitment to supporting key sectors in the Philippines, including agriculture, infrastructure, energy, and digitalization, while encouraging more private investment.

To enhance the delivery of WBG-funded projects, Recto requested grants and technical assistance for project preparation. He also advocated for more concessional financing, a request met with a positive response from the WBG, which highlighted recent reforms aimed at reducing borrowing costs.

Present during the meeting were several key officials from both the Philippine government and the WBG, further strengthening the collaborative efforts between the two parties.

The World Bank’s continued support is expected to help the Philippines sustain its economic momentum and achieve its development goals, particularly in reducing poverty and creating jobs for its growing labor force.