Thursday, January 27, 2011

Why Philippine Professionals are Unemployed

Question: Sir John, there are many professionals and college graduates in Philippines who are unemployed and underemployed for a long period or sometimes permanently. Why is this happening?

ANSWER: There are many reasons, but I will only explain two.


The organization responsible and accountable for this fiasco is the Professional Regulation Commission (PRC). In the Philippines, it is very common that consumers can easily find and get cheaper services of unlicensed professional practitioners. Just ask the tricycle drivers, most likely they know where you can find a cheaper unlicensed dentist or quack doctor. In real estate, 95% of the agents you can see in the malls are unlicensed, and they just freely expose themselves to the public. The government failed to enforce the law upon those who operate without profesional license. As a result, products and services are poor in quality, consumers are not protected, and the true professionals who follow ethics and quality standard lose in the competition with the unlicensed ones.


Most of the high-ranking government officials we have now are oligarchs. Oligarchs have businesses, or are protecting some capitalist businesses. Capitalist businesses are very cruel, they derive profit from cheaper labor. There is cheap labor only in a condition of labor surplus is maintained or growing. When these oligarch President, Senators, Congressmen, and Department Secretaries tie-up with an "interlocking interest" with the capitalist businesses, they would not do something to improve the situation of the labor market. The oligarchs may not say this in public, but let me tell you that oligarchs love the existence of a large pool of poor people because this will ensure that labor is cheap and their profit is high.