Jobless number is 2.9M, not 7M

This is in reaction to Neal Cruz’s column, “P-Noy has no plans to solve unemployment” (Opinion, 7/30/14).

irstly, the unemployment rate of 7 percent should not be compared to the whole Filipino population, as in 7-percent unemployment rate times the 100 million population, equals 7 million unemployed Filipinos. The 7-percent rate is that part of the labor force willing and able to work but can’t find work—be it part-time or full-time. Therefore, it is grossly wrong to say that “Our unemployment rate is 7 percent . . . [and] that means 7 million out of the 100 million Filipinos are unemployed,” as Cruz stated in his column. This overstated the unemployment figures by almost 140 percent.

The 7-percent rate was arrived at through the following process: (1) A government body conducts a survey of households picked through a statistical sampling method to know how many of the population are 15 years old and above, then it would discount students and the physically and mentally idled or handicapped (“not in the labor force,” so called); (2) Out of this, it would determine who are willing and able to work; (3) The result is your labor force—people 15 years old and above, willing and able to work; (4) From this labor force figure, the government would determine who are currently employed, and the unemployed who are actively seeking for work.

In the case of the Philippines, those 15 years old and above in its population number 63.773 million (April 2014). Taking away the “not in the labor force” (22.184 million), we would get 41.589 million—the labor force. If the unemployment rate is 7 percent, the unemployed number of Filipinos is at 2.924 million: computed as 41.589 million (the labor force) multiplied by 7-percent unemployment rate; far from Cruz’s

7 million overstatement.

Although a columnist has the right to critique, attack, assail or whatsoever, a current event, a political figure, or anything his heart wishes to, he has the duty to present at least credible facts, or in this case, carefully and diligently interpret facts. Quoting Michael Tan’s column titled “State of the 100 million” (Opinion, 7/30/14): “Statistics are like spices in cooking. Too little and you have a bland dish, too much and they are overwhelming … [and] no longer palatable.”

—ARMEL I. DE GUZMAN,

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