Rise of Unemployment Rate in 2022 because of K-12 graduates

Rise of Unemployment Rate in 2022 because of K-12 graduates

Manila - The influx of the k-12 program graduates might create a temporary rise in the unemployment rate in 2022, the National Economic and Development Authority said.

“In 2022, we will have graduates from the first batch of the full K-12 and also the ones finishing college because of the K-12,” said Acting NEDA Secretary Karl Kendrick Chua of the Education Department’s program’s effects. This will lead to a massive increase of graduates in the workforce.

The unemployment rate target for 2021-2022 was in the 5-7% range, based on the updated Philippine Development Plan 2017-2022. This was higher from the initial assumption of the PDP four years ago, which was to a 3-5% range.

“That explains why the unemployment would be temporarily higher not only due to the effect of the pandemic, which we expect to improve by that time, but also due to the additional temporary increase in the labor force,” Chua added.

Last October, the Philippines has a staggering 8.7% or about 3.8 million unemployed citizens, according to the Philippine Statistics Authority. A minor improvement from the 4.6 million last August 2020, which was considered the lowest since the year 2005.

According to NEDA Undersecretary Rose Edillon, the agency is planning programs on retraining and retooling with additional scholarships. Expectantly, increasing the employment rate of not just the graduates but also the country's workforce in general.

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