Random Thoughts: economy

Thursday, March 15, 2012

9:52 PM -

The Country's Problem Part III: Unemployment rate, rising; Economy, falling

Unemployment has always been a problem in the Philippines. But it has never been a serious issue as it is right now as more and more Filipinos struggle to lose their jobs due to the lower economic growth.

According to pundits, the government is set to cut anew its economic growth target for this year, which will definitely cause more Filipinos out of their jobs.

"It's not a single case of higher growth and higher employment. Unemployment will worsen definitely because of the lower economic growth," Benjamin Diokno, an economics professor, told the Manila Times.

He said that unemployment rate will still increase eight percent to 8.5 percent in April.

NEDA Director, Dennis Arroyo said yesterday that economy is not generating enough jobs, that is why the government has again to trim the country's growth target to between 3.1 percent from the current range of 3.7 percent to 4.4 percent.

At present, 50, 380 Filipinos in the country have been laid off, while 6,485 overseas workers have been displaced. In the tourism sector alone, slowing growth has dampened job-generation in the industry, the National Statistical Coordination Board (NSCB) said.

According to Romulo Virola, NSCB Secretary General, growth in the industry began slowing the second half of last year, thus failing to sustain the momentum built up since the third quarter of 2006.

Employment industry also dropped to 1.5 percent last year from 3.7 percent last in 2007, slower than the 2.6 percent growth of overall employment.

The rising figures of unemployment rate in the country are alarming and there will be a time that even Filipinos in secured position has to surrender their post. The government has to do something to resolve the problem that has been haunting the country for over the years.

Thursday, March 01, 2012

5:34 AM -

economy,government,oil prices,people

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The Country's Problem (Part II) : Oil Price Hike

The government should address the country’s problem about oil prices before it totally ruin the economy.

Aside from Electricity prices, another thing that has been steadily increasing is the oil price. From the start of 2012, at least five oil price hikes have been implemented in the country. It was all because oil prices have also increased in the world market due to the chaos happening in the Middle East and the West. However, the threatening prices of gas and diesel have brought torment to the public.

Of course, the primary affected whenever there will be an oil price hikes were the motorists and commuters but all of us were really affected by it. How? Simple, all of us people living; breathing and moving were affected by oil price because we all go to different places. We can’t just walk, we have to ride. Aside from that, when prices of gasoline increase, definitely prices of other products will also rise. This was because products of different cities were transferred and delivered to the markets. Transportation is also included in the cost.

In the Philippines, several transport groups have condemned the oil price hikes. In an interview, Pasang Masda blames the government for not doing anything and for being powerless regarding this problem. They said that PUV drivers were caught in the middle of the situation because commuters don’t want them to impose an increase in fare and yet, oil prices have been increasing. Department of Energy on the other hand defended their side. "Napakahirap for us, kami nasisisi, para kaming PAGASA, sana huwag magalit kung ang bad news ay based on facts....we are not spokesmen ng oil companies, mas kinakatigan namin kapakanan ng consumers."

According to a study, high oil prices could endanger the shaky recovery in advanced economies and small oil-importing countries. Moreover, the manner in which oil prices affect emerging and developing economies has received surprisingly little attention compared with the large body of evidence for advanced economies. The big picture here was that, import bills go up when oil price rises just as said earlier, thus making the problem a bigger one.

So before, oil prices triple its digits, the government should be alarmed with the looming price of oil prices.

To help you get a clear view of how the cost of oil was broke down, visit this site http://www.bbc.co.uk/news/business-15462923 and let us hear from you.