Press Release
June 29, 2008

Expanded student jobs plan to check rising youth unemployment

Sen. Loren Legarda has expressed confidence that the Senate-approved expanded Special Program for the Employment of Students (SPES) would go a long way in checking rising youth joblessness, which hit a record high in April.

Legarda was referring to Senate Bill 2116, which seeks to allow a greater number of firms to employ more students under the SPES. The measure is a unified version of five bills introduced separately by Legarda and four other senators -- Jinggoy Estrada, Ramon Revilla Jr., Edgardo Angara and Manuel Lapid.

"We are absolutely hopeful that the enlarged SPES, once finally established, will address in a big way mounting youth unemployment," said Legarda, Senate economic affairs committee chairperson.

Legarda lamented that out of every 10 Filipinos joining the ranks of the unemployed every year, at least six belong to the age group of 15 to 24 years old.

Citing the results of the latest Labor Force Survey, she noted that of the 2.9 million unemployed Filipinos in April, more than half of around 1.5 million belonged to the 15-24 age group.

Mandated by Republic Act 7323, the SPES enables students 15 to 25 years old to support themselves in school through their gainful employment in private firms and public offices during the summer and Christmas breaks.

Students employed under the SPES get a salary not lower than the lawful minimum wage. Employers pay 60 percent of the wage in cash. The government covers the rest in education vouchers that may be used to pay for tuition and books.

Under the expanded program, students in tertiary, vocational or technological schools may be employed at any time of the year, not just during the summer and Christmas breaks.

Also under the broadened SPES, firms with at least 15 regular workers may hire qualified students. At present, only firms with a minimum of 50 regular employees may engage youths under the program.

Legarda said the Senate bill also mandates an automatic 20 percent annual increase in the SPES budget, and bans the impoundment of funds to insulate the program from foul partisan politics.

"We are building up the SPES in view of the growing number of youths desperately looking for productive work so that they will have enough money for their schooling," Legarda said.

The senator said the bill also eases the annual family income ceiling for aspirants to qualify for jobs under the SPES, and penalizes schools and bookstores that refuse to honor the government-issued education vouchers.

Since 1993, the SPES has benefited an average of 80,000 students every year. The beneficiaries are expected to increase substantially once the bill is enacted.

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