CEDAW/C/PHI/5-6
5 percent of GDP during the period under review: rising from 6.2 percent of gross national
income in 1997 to 8.1 percent in 2000 (BLES 2002 and WB 2003).
Impact of Labor Migration
69. While labor migration contributes to the Philippine economy, it exacts a heavy toll on society.
More than ever, it is eroding certain Filipino values, such as the paramount importance given to
family unity and the role of parents in shaping the character of their children. The migrants
continue to face various problems in their countries of destination: nonpayment of salaries, and
contract violations, to illegal detention and physical and sexual abuse, and the consequent
psychological and emotional distress caused by separation from their families. They are also
vulnerable to politics that can result to their expulsion, as experienced by Filipino migrants in
Sabah, Malaysia in 2002.
70. The government has expended considerable efforts and resources to address these problems. It
has set up welfare centers, undertaken bilateral negotiations with receiving countries, and
lobbied for policy reform and programs for migrant workers at international forums. The
Philippines has figured prominently in international and regional discussions (as in the UN,
ASEAN, APEC) involving migration and trafficking in persons. It has likewise led in advocating
programs and projects to heighten awareness on gender and development issues through training
and capacity building for pertinent personnel in ASEAN and APEC.
71. Labor migration remains an attractive option to many workers, as the employment situation
deteriorated during the period. Between 1999 and 2000 alone, the labor force participation rate
dropped from 66.4 to 64.9 percent, due to perceived lack of job opportunities that discouraged
people from looking for jobs.
Employment in Agriculture, Industry and Service Sectors
72. About one million jobs were lost in agriculture between 1996 and 2000, although 80 percent of
these were recovered in 2001 (NSO 2002). Despite the resurgence recorded in the agricultural
sector, the Philippines continues to move away from agriculture. From being a traditional net
foreign exchange earner, agriculture had ceased to be a net earner by the 1990s. Natural disasters
and low world prices for agricultural products combined to erode the potentials for growth of
Philippine agriculture. Further, it continuously absorbed a continuously declining share of
employment. In contrast, services remained the most important sector that contributes
significantly to the Philippine economy and where women outnumbered men in terms of
employment. Industry accounted for at least a third of the GDP, but its share of employment was
a far third from services and agriculture. Reports of the labor department on employment in
industry indicated that prior to the crisis, 889 establishments, involving 39,263 workers, resorted
to closure and retrenchment. This almost tripled to 2,258 in 2000 affecting 67,624 employees.
Small establishments (with less than 50 workers) were hardest hit, as they comprised half of
those that retrenched workers or shut down (BLES 2002). Unemployment rate rose from 7.4
percent in 1996 to 9.6 percent in 1998, 10.1 percent in 2001 and 2002. Except in one or two
years, female unemployment rate has been consistently higher than that of the male (NSO
2003c).
73. To address the persistent economic problems, the government convened in December 2001 the
National Socio-Economic Summit, which forged an executive and legislative pact focusing on
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