Pinoys to lose more jobs amid US economic woes – Diokno

MANILA, Philippines – The ongoing US financial downturn may cause more unemployment in the Philippines, an economist and former Budget secretary said Monday. In an interview with Mike Enriquez over dzBB, University of the Philippines economist and former Budget secretary Benjamin Diokno said that more Filipinos have started losing jobs since the US financial crisis made headway about 14 months ago. "Matagal na tayong apektado. Itong krisis na ito nag-umpisa 14 months ago. Ang unang epekto nito ay kawalan ng trabaho. (We have long been affected by this crisis which started 14 months ago. The instant effect of this is loss of jobs)," Diokno said. "Kapag mahina ang ekonomiya ay ibig sabihin dadami ang nawawalan ng trabaho. At pag wala ka namang trabaho ay tataas ang presyo ng mga bilihin. (When the economy is weak, more people will lose jobs. Unemployment then drives up the prices of basic commodities)," he added. Diokno said that the export industry will be directly affected as most developed countries are likewise experiencing economic recessions. "Ang unang-unang epekto niyan sa atin ay ang exports natin. Pag humina yung ekonomiya ng kalahati ng mundo lalo na yung developed countries (na) nangangailangan ng exports natin. Ang ibig saibhin pag humina yun, magsasara yung mga factories, ibig sabihn nun kawalan ng trabaho (Our export industry will be hit first. When the economies of countries we are exporting to weaken, our factories will close. That means workers will lose their jobs)," Diokno said. Given the looming job insecurity, Diokno suggested that the government focus on the needs on the most vulnerable instead of multi-billion agreements overseas. "Ang dapat pagbibgyan nila ng pansin yung poorest of the poor. Mag-concentrate tayo sa mga road maintenance, (pagtayo ng) school buildings, magtanim tayo, job creation (The government should give more attention on the poorest of the poor. We should concentrate on road maintenance projects, constructing school buildings, and enhancing our agriculture and labor sectors)," Diokno said. The economist, however, warned that the US Senate’s approval of the $700 billion bailout package may only provide short-term solutions. "Patuloy yan sa pangkasalukuyan. Walang nakakaalam kung gaano kalalim o gaano kahaba yung paghina ng ekonomiya ng buong mundo (The economic crisis is still ongoing. No one knows its gravity or how long it will go on)," Diokno said. On October 4, the US Congress made a final approval on an unprecedented $700 billion government bailout of the battered financial industry. The final vote, 263-171 in the House, capped two weeks of tumult in Congress and on Wall Street, punctuated by daily warnings that the country confronted the gravest economic crisis since the Great Depression if lawmakers failed to act. By allowing the purchase of mortgage-backed securities, the newly-approved law is seen to avert an economic depression in the US and preclude a worldwide slowdown. Called the Emergency Economic Stabilization Act of 2008, the law would provide an infusion of as much as $700 billion to the financial sector of the world’s largest economy. - GMANews.TV