Kyla Estrellan The Contemporary World (GEC103)

Zyrine A. Garcia I – BSCE/ MTH 2:30 – 4:00

Unice Eleona S. Pinili Instructor: Jayboy M. Sartorio
Justine Nicole P. Tornea

Globalization and Job Insecurity

1. Discuss the relationship of globalization and job insecurity. Discuss the severity of
the problem.

The increased global competition brought by globalization urged companies to

develop a more adaptable and flexible production system and labor markets. The reliance
on a conventional employer-employee relationship, established in a permanent and
full-time contractual engagement, has proven inadequate to meet the increasing
constraints and expectations of the global economy. These include cross-border
outsourcing of industrial processes and competitive pricing imposed by increasing
international competition. Proposals to expand labor market flexibility in Europe have
been accompanied by an increased focus on active labor market policy. Labor reform was
combined with social policy change in Latin America.

Globalization creates insecurity in the labor market through two mechanisms

(Rodrik, 1997). First, trade with emerging nations eliminates jobs for unskilled workers
since imports have replaced domestic manufacturing of low-skilled, labor-intensive
commodities. Second, because market integration makes employees more replaceable,
globalization causes pay and employment insecurity. In theory, this replacement effect
applies to all workers regardless of skill level, but less educated and trained individuals
are more vulnerable because they are simpler to replace by definition. Workers who are
having trouble obtaining secure work and whose actual incomes are dropping will seek
compensation and social protection.

Globalization, in nature, sides with economies that adapt to change. Within the
change, competitive countries, such as China and the US, expose each other's market to
expand their scope and achieve trade liberalization that frequently causes an economy's
equilibrium to alter. Some industries expand, while others contract resulting in certain
industries closing, leading to structural unemployment and job insecurity.

"The China Syndrome: Local labor market effects of import competition in the
United States' ' stood by the fact that too much exposure to the market may cost the
country to lose local workers and job loss (Autor, Dorn and Hanson, 2013). Statistics
from 1999 -2007 shows the reduction in manufacturing employment from -5% to 10% in
the commuting zones which has a large increase in Chinese import exposure from -10%
ranging to 20% with close gaps in between markets. Moreover, this trend may not only be
particular with powerful countries, but also those growing in the market, and will not be
automatically eradicated in the coming years.
2. Discuss the actions taken by the government and its people to solve job insecurity.

The government plays an important role in battling job insecurity as they establish
the policies and programs catering to workers both in government and non-government
organizations. They oversee the economic status of the country and assess what division
needs improvement or consistent flourishing. The citizens are then obliged to cooperate
with the government in the endeavor of job security and employment whilst assessing the
performance of the state in its ventures.

In the third-world country, the Philippines, unemployment and job insecurity are a
continual dilemma. Overpopulation and a deficit of job opportunities are some of the
factors that provoke job insecurities in Filipino workers. A great percentage of these
Filipino job seekers tend to accept contractualization which strips them of the privileges
that are associated with regular employees (Sicat, G. P., 2016). In the Top Companies
survey conducted by Jobstreet ( August 2017), unemployed Filipinos prioritize long-term
privileges over short-term gains in searching for employment.

In line with this, Pres. Rodrigo signed an executive order concerning the
prohibition of illegal contractualization and sub-contractualization of workers. This
includes the prohibition of endo schemes or unjust dismissal of workers as stated in the
Labor Code. The Department of Labor and Employment, DOLE, issued revised policy
guidelines on contractualization also known as Department Order 174 ( Jaymalin, M.,
2017). Department Order 174 was issued to reduce, if not eliminate, endo schemes and
other illegal contractualization practices such as repetitive hiring employment contracts in
short-term duration.

DOLE had also made it its priority to implement programs providing job security
and social position for workers both local and overseas (Patinio, F., 2021). Labor
Secretary Silvestre Bello III (2021) stated that the government had addressed the issue of
displaced workers due to the pandemic within the formal and informal sectors, and also
overseas Filipino workers through reform programs.

One of the projects established is the Tulong Panghanapbuhay sa Ating

Disadvantaged/Displaced Workers (TUPAD). TUPAD is implemented for displaced and
seasonal workers as a community-based aid in providing emergency employment. The
duration of employment depends on the course of the work with a minimum period of 10
days and a maximum of 30 days. The program offers work in social community projects,
the economic development sector, and agro-environmental community projects.

DOLE also established another program called COVID-19 Adjustment Measures

Program (CAMP) concerning employment during the pandemic. CAMP is a safety net
project that provides financial assistance to workers affected in private businesses which
underwent Flexible Work Arrangement (FWA) or closed temporarily due to the
pandemic. The affected workers are aided with the one-time financial assistance of PHP
5,000.00 disregarding their condition and employment status. They are also given career
 opportunities matching their skills and qualifications through placement and job matching
services or referrals.

Another program of DOLE concerning job security is the Abot Kamay ang
Pagtulong for OFWS (DOLE - AKAP). DOLE-AKAP is a financial assistance program
established for overseas Filipino displaced workers due to the COVID-19 pandemic. The
covered and qualified OFWs will receive one-time financial assistance of 200.00 US
dollars or worker’s local currency equivalent to the value.

3. Discuss what can be done to further strengthen the mechanisms employed by the
government to combat job insecurity.

Job insecurity affects the country's economy as a whole. Discussed in this essay
are the suggested measures to combat this issue — worker employability, employment
protection, and flexicurity.

Shoss, M. (2018) stated in an article that due to the ever-changing nature of work
and jobs, debates regarding the promotion of worker employability rather than job
security have arisen. Worker employability refers to an individual’s skills that make them
"employable", their capability of giving satisfactory results at work. By promoting or
developing a worker's skill, through investing in the worker itself, flexibility and
versatility in different kinds of jobs will be accentuated. Employability increases an
individual's chance of getting a job as well as the levels of security since there will be
talks of compatibility and adequacy in the chosen career. Acquisition of skills may be
done through training and seminars for workers to gain experience and knowledge.
Effectively, employers must extend their resources by giving their employees opportunity
to learn and master both professional (i.e. technical or linguistic) and interpersonal (i.e.
communication or resilience) skills. In this way, not only do employers improve the
employability and confidence of employees; but at the same time improve the quality of
their workforce which can be an asset during difficult periods.

Strengthening employment protection. Employment protection refers to the rules

regarding the recruitment and dismissal of a worker, as well as their rights as an
employee. This includes the right to prior notice of termination, proper provision of
severance pay, right for maternity leave, etc. An article by IZA World of Labor explains
employment protection as a policy that protects employees from the unpleasant behavior
of employers, unreasonable and dishonest dismissal, provides job opportunities to
disadvantaged groups, as well as insure a dismissed worker. Employment protection
encourages the better allocation of labor and provides safety nets and efficient
reemployment assistance for the unemployed.

Another concept suggested is flexicurity (flexible and security). This policy

approach attempts to loosen employment protection, easing the dismissal of a worker, to
 balance a business's desire for flexibility with a worker’s desire for job security (Viebrock
& Clasen, 2009). This encourages a more porous transition from one job to another, put
into action through the provision of job search assistance and training. Through such, a
worker can easily move from a job to a different one with the assurance that they’d be
able to acquire a job. Flexicurity encourages employability with multiple employers
rather than just one throughout an entire lifetime.

However, the advantages of the concept of flexicurity are arguable. Analytically

speaking, companies or businesses will have to lower their standards regarding the
credibility or the character of their employees since this approach promises a more
flexible work environment. There are possibilities of hiring an indifferent or mediocre
worker, one that is not truly excellent in the job. In addition, the increase in the number of
temporary workers could affect the security of permanent employees, which counters the
very purpose of flexicurity.

Job insecurity is a subjective view of employees and may also be difficult to

combat if there is no action on both sides: the employers and the employees. The
mechanisms mentioned above are effective in this kind of set-up, job insecurity and
financial anxiety per se, since employability is a matter of confidence and assurance to
make the workforce more responsive to economic conditions.

References:

Business & Human Rights Resource Centre. (2017, March 20). Philippines: Govt. issues
policy guidelines against use of unjust labour contracts. Retrieved June 7, 2022,
from
https://www.business-humanrights.org/en/latest-news/philippines-govt-issues-poli
cy-guidelines-against-use-of-unjust-labour-contracts-groups-say-new-order-fails-t
o-address-job-insecurity-does-not-fulfill-dutertes-campaign-promise/

David, H., Dorn, D., & Hanson, G. H. (2013). The China syndrome: Local labor market
effects of import competition in the United States. American Economic Review,
103(6), 2121-68. http://economics.mit.edu/files/7723

Department of Labor and Employment. (n.d.). About Tupad. Retrieved June 6, 2022,
from
https://www.dole.gov.ph/tupad-contents/#:~:text=TUPAD%20or%20Tulong%20P
anghanapbuhay%20sa,nature%20of%20work%20to%20be

Employment protection. (n.d.). IZA World of Labor.

https://wol.iza.org/articles/employment-protection/long

Patinio , F. (2021, July 14). Dole to focus on Job Security, workers' protection programs.
Philippine News Agency. Retrieved June 6, 2022, from
https://www.pna.gov.ph/articles/1147030
President Communications Operations Office. (2018, May 1). President Duterte signs EO
vs illegal contractualization. Pcoo.gov.ph. Retrieved June 6, 2022, from
https://pcoo.gov.ph/news_releases/president-duterte-signs-eo-vs-illegal-contractua
lization

Rodrik, Dani. (1997). Has globalization gone too far? Washington, D.C.: Institute of
International Economics.

Shoss, M. (2018). Addressing job insecurity in the 21st Century. Work Science Center
Thinking Forward Report Series. Atlanta GA: Georgia Institute of Technology.

Sicat, G. P. (2016). "endo, wages, poverty and employment-labor market issues".

Foundation for Economic Freedom. Retrieved June 6, 2022, from
https://www.fef.org.ph/gerardo-sicat/endo-wages-poverty-and-employment-labor-
market-issues/

The Filipino Times. (2017, August 31). Filipinos prefer job security over salary,
Jobstreet Survey says. Retrieved June 6, 2022, from
https://filipinotimes.net/top-stories/2017/08/31/filipinos-prefer-job-security-over-s
alary-jobstreet-survey-says/

Viebrock, E., & Clasen, J. (2009, February 26). Flexicurity and Welfare Reform: A
Review. OUP Academic. Retrieved June 6, 2022, from
https://doi.org/10.1093/ser/mwp001