## Why is Unemployment High in the Philippines?

_IMF Working Papers, February 1, 2002_

## Source details

**Canonical URL:** [Why is Unemployment High in the Philippines?](https://www.imf.org/en/publications/wp/issues/2016/12/30/why-is-unemployment-high-in-the-philippines-15591)

## Other formats

- [Markdown version](/en/publications/wp/issues/2016/12/30/why-is-unemployment-high-in-the-philippines-15591/index.md)
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## Bibliographic details
- Authors: R. Brooks
- Published: February 1, 2002
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451844054.001

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### Overview
- Unemployment has remained high in the Philippines, at almost twice the level of neighboring countries, despite relatively fast employment growth in the past decade.
- Employment growth was not sufficient to reduce unemployment because of rapid population growth and increased labor force participation.

### Key findings
- Philippine employment growth and unemployment declines were positively correlated with real GDP growth.
- Employment growth and unemployment declines were, to a lesser extent, negatively correlated with the real minimum wage.
- Rapid population growth and increased labor force participation offset employment gains.

### Empirical relationships and variables examined
- Real GDP growth: positively correlated with employment growth and unemployment declines.
- Real minimum wage: negatively correlated (to a lesser extent) with employment growth and unemployment declines.
- Other variables and keywords noted: adjusted unemployment rate, employment equation, employment growth, GDP deflator, job search, minimum wage variable, Minimum wages, Philippines, Philippines labor market indicator, unemployment, Unemployment rate, WP.

### Policy implications and recommendations
- Higher economic growth is required to reduce unemployment.
- Moderation of increases in the real minimum wage is required to reduce unemployment.

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## Content in this bundle

- **Why Is Unemployment High in the Philppines? - WP/02/23**
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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/30/why-is-unemployment-high-in-the-philippines-15591_