• Secretary Dar of DA;
• BOI Governor Concepcion;
• Undersecretary Beltran of DOF;
• Assistant Secretary Nikki of DOLE;
• Assistant Secretary Quazon of DAR;
• Executive Director Sy of NWPC;
• Brother Josua of SENTRO;
• Mr Ferrer of ECOP;
• Our constituents representing government, workers’ and employers’ organizations;
• Partners from UN agencies, World Bank and the ADB;
• Ladies and gentlemen, good afternoon!

On behalf of my colleagues from ILO, UNDP and UNIDO, let me welcome you to this consultation on the joint UN research on exploring opportunities for economic diversification and productive employment in the Philippines.

Thank you very much for your presence and participation today.

We value your insights, inputs, comments and suggestions to finalize the research and policy report.

We also greatly appreciate the UN Resident Coordinator’s Office for their continued support and collaboration on this research.

The COVID-19 crisis has led to a massive disruption of the economy and labour market in the Philippines. It has also revealed the vulnerabilities of sectors and firms that are dependent on foreign trade and intermediates.

The pre-existing vulnerabilities in supply chains in the Philippines have been aggravated by the disruption of COVID-19 to the economy and labour market.

A recent ILO research on the COVID-19 and global supply chains highlighted the increased job disruption due to vulnerability to imported input supply disruption.

While global value chain participation in the Philippines provided opportunities to increase trade and advance development, it also caused supply chain risks and vulnerabilities that were brought to fore during the pandemic.

A UNDP survey revealed that many MSMEs face major supply chain breakdowns due to disruptions. Close to 56 per cent responded that the input necessary for their production from international markets have no domestic alternative.

UNIDO’s assessments of the socio-economic effects of COVID-19 and containment measures on Philippine enterprises also found that respondent firms, mostly microenterprises and domestic-oriented firms from the manufacturing sector, encountered difficulties in coordinating their supply chains. This has led to shortages in raw material supply and impediments in distribution, shipping, and logistics. 

Assessments further revealed firm-level challenges toward recovery and adapting to the post-COVID-19 business environment in the areas of:

1. industrial safety and health in the workplace;
2. diversification, innovation, competitiveness, and market access;
3. supply chain resilience;
4. digital transformation and the adoption of industry 4.0 technologies and approaches;
5. SME financing; and
6. specific concerns for women-led and youth-led enterprises.

Furthermore, the ILO COVID-19 labour market impact assessment in the country provided insights on the disruptive impact on employment and economic activity at sectoral level, as well as on vulnerable groups such as informal workers. This is crucial to address challenges and to support the Philippines in implementing the Decent Work Country Programme.

In the context of increased calls for digitalization and discussions around reshoring, the ILO Future of Work study on the impact of digitalization in the Philippines also analyzed disruptions, transformations and skills implications for specific occupations and sectors.

The United Nations in the Philippines through the ILO, UNDP and UNIDO is conducting a research within this framework.
   
This research aims to contribute to the strategic areas of focus of the UN Socio-economic and Peace Framework (SEPF), which recognizes the need to create productive employment and green jobs while promoting economic diversification.

The evidence and policy recommendations generated from this study will also contribute to the ‘We Recover as One ‘ broader strategic objectives, the updated Philippine Development Plan (PDP) 2017 to 2022 and the National Employment Recovery Strategy (NERS).

The study will also advance the achievement of the Sustainable Development Goals (SDGS) in the country. For instance, through:

• SDGs 4 and 5, the study will help government programmes to effectively support MSMEs including women enterprises to bounce back through enhanced skills development;
• SDGs 1 and 2, increase income of households;
• SDGs 8 and 10, contribute to the promotion of decent work and increased economic activity and recovery; and
• lastly through SDGs 11 and 13, significantly contribute to green jobs, growth and recovery as well as sustainable production and consumption patterns.

It is our hope that this study will provide a comprehensive analysis of opportunities and challenges associated with promoting full and productive employment, as well as contribute towards developing and updating policies, strategies and sectoral policies in the country.

I wish you all a productive and successful consultation. I also look forward to a continued collaboration towards a meaningful and human-centred COVID-19 response and recovery in building back better from this pandemic.

Thank you!