Labor Dept. Budget Cut May Weaken Programs, Analyst Warns

The proposed budget for the Department of Labor and Employment (DoLE) and its attached agencies for next year is set to be cut by P14.1 billion, from P61.2 billion to P47.057 billion, according to a House of Representatives plenary deliberation. This significant reduction could diminish the government’s capacity to provide labor and employment programs, particularly worker training and labor inspection, stated Benjamin B. Velasco, an assistant professor at the University of the Philippines Diliman School of Labor and Industrial Relations. Mr. Velasco noted that the cut is mainly in maintenance and operating expenses and capital outlay, with a substantial portion also coming from the budget of the Technical Education and Skills Development Authority (TESDA). This comes at a time when the labor force is growing faster than jobs are being created, and employment remains concentrated in low-skilled and precarious work. Interventions to upskill workers through vocational-technical programs like those offered by TESDA are crucial for addressing the jobs crisis. The latest Philippine Statistics Authority Labor Force Survey showed the unemployment rate reached 6% in July, the highest in four years. The labor force expanded by 3.7 million from a year earlier, while employment increased by 3.16 million, indicating more job seekers than the economy can absorb. During the House deliberations, the need to increase labor inspectors, strengthen occupational safety and health compliance, and expand upskilling initiatives were discussed, especially in light of potential job displacement in the business process outsourcing sector due to artificial intelligence. Mr. Velasco suggested that funding for the Tulong Panghanapbuhay sa Ating Disadvantaged/Displaced Workers (TUPAD) program, which creates low-quality public employment, could have been reallocated to TESDA and labor inspections. He also indicated that legislators might maintain TUPAD for local patronage. Lawmakers acknowledged that the reduction could affect the delivery of employment, skills development, and worker protection services. Discussions also touched upon DoLE’s request for an additional P75 million for initiatives to strengthen legal assistance for workers. Meanwhile, DoLE, along with the Office of the Solicitor General (OSG), is defending Wage Order No. 27 in court, stating compliance with judicial decisions. Wage Order No. 28 aims to provide immediate economic relief during the ongoing judicial process. Mr. Velasco commented that DoLE might have lost the support of labor groups due to its handling of Wage Order 27. The proposed budget will now proceed to the Senate for further deliberations. Source: BusinessWorld Nation