The Philippine government still faces challenges in job creation in the coming years despite a recent drop in the unemployment rate, the president of the Employers Confederation of the Philippines (ECOP) said on Sunday.
The country's unemployment rate in October fell to 6 percent from 6.4 percent recorded in the same period a year ago, statistics from the Philippine Statistics Authority (PSA) showed.
The confederation is concerned that not enough jobs are created due to a slowdown of the country's economy, said Edgardo Lacson, president of ECOP. Philippines' gross domestic product grew 5.3 percent year-on-year in the third quarter of 2014, slower than 6.4 percent in the second quarter of 2014 and 7.0 percent in the third quarter of 2013.
High electricity cost and higher income tax rate are among the factors that deter job-generating investments in the country, Lacson added.
"What we need is (investment in) manufacturing and agribusiness which are biggest generators of jobs. Tourism helps as well," he said.
In the 12 months to October, the economy has created around 1. 05 million jobs, while the labor force increased by 1.072 million during the same period, according to the PSA.