Introduction

For purpose of the record,  this paper was written upon the invitation of the Institute of Labor Studies (ILS), Department of Labor and Employment, for presentation in the Conference it has organized in cooperation with Friedrich-Ebert Stiftung on the theme The Philippine Labor Code: 30 Years and Beyond.  As suggested by the ILS, the paper focuses on the subject of The Employers Role in Employment Generation. 

A.     Employment Generation Transcends the Labor Code

1.  While the subject of this paper must necessarily be correlated with the main theme of the Conference, which dwells on the Labor Code, employment generation is affected not only by labor market policies emanating from the Labor Code and other labor laws, but also by macro-economic policies that transcend the coverage of the Labor Code.

2.  Of course, it cannot be gainsaid that the Labor Code plays a critical role in providing the regulatory environment that is determinative of the flexibility of the labor market.  But it is the mix of labor market as well as macro-economic policies operating in the context of the political environment that determines the ability of the economy to generate employment.

B.  The Creation of Wealth and Jobs are a Function of Investment

1.  In a market economy like the Philippines, the creation of wealth as well as the generation of jobs is primarily the function of investments by private enterprises.  But the ability and motivation of enterprises to invest and operate depend on the economic and political environment provided by governance which either enhances or impairs their viability and competitiveness.

2.  What therefore are the critical issues that need to be addressed in enhancing the ability of the economy to generate employment on a sustained basis?  In order to put these issues in proper perspective and make them more meaningful a review of the employment situation is called for.