At first glance, the term “jobless growth” of a national economy appears to be a contradiction or something that won’t happen. How can economic growth happen without creating jobs?

In this situation, the economy seems to be improving based on macroeconomic indicators such as Gross Domestic Product, but the unemployment situation may even be deteriorating.

In Eastern Visayas, for example, the 3rd quarter 2004 unemployment rate was 7.7 percent while for 2005 it rose to 9.5 percent.

An increase in the unemployment rate may be the result of more efficient ways of production (that is, less labor is required) due to new technologies and mechanization. In this instance, expanding markets are important so that there is an increased demand for our products.
   
A complicating factor is that even those who may have jobs are earning low wages.

It is, therefore, important that employment generation strategies be put in place by the government for the private sector to respond positively. Such strategies should also enable workers to earn decent wages.

This should go hand in hand with expanding markets particularly abroad (my column last week was on export promotion).

If people have to feel the growth, they must experience it. The best way is to get them productively employed and contributing to growth.

Obviously, this would take an effort from many sides. Getting everybody involved is a difficult task, particularly when the national government is still operating on a deficit.