Developed countries like the USA, Japan, and Singapore suffer from a labor crunch. Is the Philippines, a developing country with a large population of unemployed and underemployed and a low-labor-cost country, immune from this problem? We are not; we also have labor crunch issues.
The Philippines, along with developing countries such as Vietnam and Indonesia, need a larger workforce in critical industries. Where, then, are the much-needed workers?
The missing worker problem, often explained as a delayed gratification issue, is a crucial aspect that needs to be understood and addressed. In their works on understanding the economics of poverty, Nobel Prize economists Banerjee Abhijit and Esther Duflo observe this phenomenon. What are the reasons behind this delay in employment?
First, the young generation is selective with jobs because they have been conditioned that their parents worked hard to educate them, so they must get better jobs. Second, more middle-class parents are willing to support their children while looking for jobs, so for these kids, there is no urgent need to find a job right now. Lastly, how about people with low incomes? They have limited options because they may need more skills or education to tackle the available jobs or are willing to wait it out like their more affluent counterparts.
Suppose humans cannot work on dull, dirty, and dangerous jobs. In that case, we need robots to interview for vacant job positions. Because otherwise, who else will do the work?
/ This article first appeared on www.acauso.com based on a talk I delivered at the 10th Balik Scientist Program Annual Convention at the PICC.
