Basic economic conditions Philippine economic policies have consistently failed to develop the economy and even caused this to deteriorate. Among the clearest signs of economic fbilure in the country is the backwardness and even decline in its agricultural and industrial sectors. The last tlrree decades have seen the share of dornestic manufacturing in the economy falling to as srnallas in the 1950s and that of agriculture fallirg to its sn-rallest in the country's history. These are the basic reasons why the economy is rinable to create enough jobs for the people and is increasingly an economy not of producers but of traders, odd-jobbers and overseas workers. 'Free market'policies of 'globalization'since the l9B0s have also resulted in international trade, investment and migration policy regimes anchored on fbreign use of the country's human and natural resources The deterioration of the economy has caused record unemployment, worsened the quality of jobs and increased poverty. The Philippines is facing historic joblessness and the average annualtrue unemployment rate of 11 .2o/o over the period 200 l-2008 correcting for a change in the definition of unemployment in April 2005 is already the worst S-year stretch in the country's history. Economic growth was reported in 2007 as the tastest in three decades yet average annual job creation inthe last eight years, fiom 2001-2008, has barely even kept pace with labor force growth. This has resulted in 621,000 more jobless Filipinos and 1.9 million more underemployed in the second quartcr o1'2009 compared to the start of 2001, or an additional2.5 million Filipinos either jobless or otherwise still looking for added work and income. The widespread joblessness in turn fbeds already chronically low wages, salaries and incomes. Family incomes have not been able to keep up with inflation and the latest 2006 FIES noted realaverage family income dropping between 2000 and 2006. In particulaq the poorest lbur-fifths of Filipino families or some 13.9 million fbmilies saw their incomes fall between five (5) and almost l3 percent. As it is, around 59 million Filipinos, or two-thirds of the population, struggle to survive on Pl00 (around US$2.30 at current exchange rates) or even much less a day. -+* q3 :r- tflgF- IT - _ ,;\, .-# 14 : I .-l k