Jobless Rate Rises: Will Lending Companies Benefit from Unemployed Individuals?
As the jobless rate in the Philippines rises, more people are in need of some extra money and are looking for loans and credits to pay their bills. However, before they can apply for such services, there are processes that they must first pass. Will unemployed individuals meet the requirements of lending companies, for example, Juanhand ID requirements?
Jobless Rate Rises
This rise in the jobless rate within the nation has affected several key occupations. According to the Philippine Statistics Authority (PSA), these include individuals who have worked in the services and sales occupations which resulted in an estimated 209,000 drop from September 2022 to September 2023. Following this are individuals involved in agriculture, fishery, and forestry with a 98,000 decrease in the employment rate. However, the elementary occupations have been hit the hardest, having the largest decrease in employment rates within a year, resulting in a loss of 322,000.
In terms of industries as a whole, five major sectors have been affected with the biggest being the Manufacturing industry which decreased 888,000 in just one year. This is followed by the vehicle and motorcycle repair partnered with trade in retail and wholesale which lost 722,000. Followed by Agriculture and Forestry as a whole with 649,000, then public defense and administration with 160,000, and lastly, activities involved in finance and insurance with 113,000 jobs lost.
If you look at the bigger picture, the PSA determined that a whopping 2.26 million Filipino workers were considered Jobless this September 2023 which is a 500,000 increase if we compare it to August which had 2.21 million individuals. This increased the jobless rate which was 4.4 percent and increased to 4.5 percent in September.
Not only that but according to a survey conducted by the Social Weather Stations from September 28 to October 1, 48 percent of Filipino families thought of themselves as poor. This was 3 percent more than the June 2023 survey and is equal to 13.2 million and 12.5 million Filipino families respectively.
With the striking increase in both statistics, it’s clear enough that so many families have been consumed by the unforgiving cycle of poverty within the Philippines. Without any reasonable source of income to feed their families, pay bills, and survive through daily life, poor people have often resorted to getting loans.
Does December Give Hope?
Despite what seemingly is an unfortunate sign for Filipinos, December may be their saving grace. Usually, in that month, more companies and businesses are giving opportunities or are accepting extra workers because of the holiday season. Businesses such as supermarkets, retail stores, resorts, and vacation services, as well as food manufacturing, will need to increase their supply to match the public’s demands.
Jobs such as Cashiers, Clerks, Factory Workers, Transportation and Warehousing, Construction Workers, and more will be needed for businesses and companies to be able to handle the Holiday rush. In addition, most of these can easily be accessed by people who do not have any professional qualifications. The individuals that fit that category may be able to capitalize on these opportunities in the hopes of even giving their families a Christmas to look forward to.
Is it Easy for Unemployed Individuals to Get Loans?
Despite the hope that December may bring, it may not be enough. With the high inflation rate driving the prices of necessities like fuel and food higher, poor families will still most likely resort to getting loans as for them it may be a matter of survival. Some poor people even take loans just to find jobs, only for them to use their salaries to pay all the debt and loans they have undertaken. However, one question still arises: “Is it so easy to get a loan?”.
To answer this question, we will have to take a look at the requirements that an individual needs to fulfill before they can start the process. Taking Juanhand as an example, Borrowers need to be at the age of 20-60, must be a Filipino Citizen, must have 1 government-issued ID, and lastly, must have a stable income. Not only that, the Loan Parameters include a 0.49 percent interest rate per day. This makes it clear that most lending companies like Juanhand prefer to collaborate with individuals with reliable sources of income. Itputs unemployed individuals at risk as they cannot meet the requirements asked of them by legal lending companies and may suffer from high interest rates. In the end, it forces them to go to illegal companies that ask them less harsher requirements but the risk is higher. They are more prone to encountering loan sharks and scammers, and may not be able to use the law to fight against them.
Poor people are now in a situation where they have to answer a dangerous dilemma: to continue living on the edge or to take a risk and have a chance at making their lives better.
