Services sector generates low-productivity jobs

State-run policy think tank Philippine Institute for Development Studies (PIDS) has cautioned that while the services sector has driven much of the Philippines’ economic growth, it has primarily created jobs in low-productivity, low-wage subsectors.

- By RICARDO M. AUSTRIA

In a discussion paper titled “Increasing Labor Productivity in the Services Sector: Towards a Theory of Change and Some Design Options,” published on Dec. 23, researchers from PIDS said that raising productivity in labor-intensive services is crucial for driving economic growth and promoting equity, as the sector accounts for the largest share of the country’s gross domestic product (GDP) and employment.

The report, authored by Ramonette B. Serafica, Queen Cel A. Oren, Emmanuel F. Esguerra, and Aniceto C. Orbeta Jr., emphasized that government support should prioritize improving productivity in certain subsectors.