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SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
SENATE 
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Introduced by Senator Ferdinand R. Marcos, Jr. 
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EXPLANATORY NOTE 
The mandate of Section 9, Article II of the 1987 Philippine Constitution is 
clear: "The State shall promote a just and dynamic social order that will ensure 
the prosperity and independence of the nation and free the people from 
poverty through policies that provide adequate social services, promOte full 
employment, a rising standard of living, and an improved guality of life for 
all." (underscoring supplied). 
It is indeed the primordial task of the State to ensure the economic 
stability of the country, and free the people from the snares of poverty by 
strengthening the labor market. 
. 
. 
However, the following findings of the Department of Labor and 
Employment (DOLE) 
are worth looking into: (The Philippine Labor and 
Employment Plan 2011 - 2016 Inclusive Growth Through Decent and Productive 
Work, July 20 12, pages 3 and 4). 
"The Philippine Economy and Labor Market 
A country with a population of 92 million people, the Philippine 
economy expanded at a modest growth rate of 4.7% per annum over the 
ten-year period 2001-2010. Measured In terms of Gross Domestic Product 
(GOP), the economy grew almost uninterrupted from 2001 (1.8%) to 2004 
(6.4%). The pace of growth slowed down in 2005 (5.05%) and 2006 (5.3%) 
but was up again in 2007 (as in the global economy) recording the 
second highest growth (7.1 %) during the decade. With the onset of the 
global financial crisis, the growth figure declined sharply in 2008 (3.7%) 
and bottomed to 1.1% in 2009. 
With the global economic recovery in 
2010, the domestic economy again posted a rebound, growing by 7.3%, 
on the back of firm recovery in manufacturing, merchandise exports and 
service based industries (trade and private services), bolstered by strong 
consumption and sustained inflow of remittances.(underscoring supplied). 
Employment growth in "boom and bust pattern" and lags behind 
GDP growth 
Over the same period, employment grew but a slower pace on the 
average, at 2.9% annually. 
This trend follows the global trend of 
employment lagging behind economic growth hand productivity (lLO, 
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, , 
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Global Employment Trends Brief, January 2006). Moreover, the movement 
of employment overtime was not in sync with the steady growth in GDP 
but followed ci "boom and bust pattem". (underscoring supplied). 
Volatility in employment can be traced in large part to the effect of 
extreme weather disturbances (dry spells and destructive typhoons), 
which had a negative impact on agricultural employment (2000, 2003, 
2005, 2009 and 2010). This occurred because the agriculture sector still 
accounts for a fairly large share (33% to 37%) of the country's employment 
in the past decade. 
. 
x x x x x x 
structure of the economy not in sync with the structure of the labor 
market 
To the greater extent. the "disconnection" between growth in 
output and growth in employment can be attributed to the difference 
between GDP and employment with respect to their sectoral structures. 
In 2010, for instance, the agriculture, forestry and fishing sector accounted 
for less than one-fifth (16.8%) of GDP but this sector absorbed about one 
third (33.2%) of the country's total employed. In contrast. the industry 
sector which contributed a third (33.6%) to domestic output comprised 
only a small share (15.0%) of total employed. On the ojher hand, output 
and employment shares of the services sector were 49.7% and 51.8%, 
respectively." (underscoring supplied). 
' 
Given the above-quoted scenario, the real challenge now to the 
govemment is how to translate the country's economic gains into employment 
opportunities for all. 
This proposed measure seeks to provide the remedy to this social malady. 
• • 
Under this bill, an interagency body known as the "Inter-Agency Council 
for the Creation of Jobs" is hereby establish'ed which is administratively attached 
to the Office of the President. 
It shall serve as the overall advisory and 
coordinating mechanism that shall design policy and program directions for all 
job creation endeavors in the country. Tasked to recommend job creation 
strategies to the Executive Department and to the Local Govemment Units 
(LGUs), the Council undertakes an important duty to analyze the different 
methods in providing equal employment opportunities for all. 
Furthermore, the Council, composed of fifteen (15) members chaired by 
the Secretary of the Department of Labor and Employment (DOLE), shall submit 
to Congress an annual report which shall include, among other things, policy 
recommendations which require legislative action towards the eradication of 
hindrances in the establishment of business enterprises. 
The Council shall encourage and assist the LGUs in mapping out business 
opportunities in their respective localities and tie up them to investors. 


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The Council shall serve as the important vehicle in translating the country's 
economic progress into more concrete rewards by providing clear directions in 
creating employment to all, Job creation is a multi-faceted endeavor that 
requires the joint efforts of different government agencies to provide effective 
and holistic employment creation strategies, This will be the answer to the 
current dismal situation where around 11,2 million Filipinos are unemployed 
(Social Weather Station Survey, June 28-30, 2013), 
The economic success of this country is more meaningful when the GDP is 
capably matched by the growth in employment. 
Thus, the early passage of this bill is earnestly requested. 
• • 
R. M}RCOS, JR. 
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· . 
SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
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GCT 16 P5 :34 
SENATE 
SENATE BILL NO. 18 () 2 
I{ECEIVED 1\'\;-.(-
Introduced by Senator Ferdln.and R. Marcos, Jr. 
AN ACT ESTABLISHING THE INTER-AGENCY COUNCIL FOR THE CREATION OF 
JOBS, DEFINING ITS POWERS AND FUNCTIONS, APPROPRIATING FUNDS THEREFOR 
AND FOR OTHER PURPUSES. 
Be it enacted by the Senate and House of Representatives of the 
Philippines in Congress assembled: 
Section 1. Declaration of Policy. It is the policy of the State to give highest 
priority in ensuring prosperity and economic growth of Ihe country, and free the 
people from the snares of poverty through the formulation and adoption of 
policies that promote full employment, and attain improved quality of life. 
Sec. 2. Inter-Agency Council for the Creation of Jobs. To carry out the 
declared national policy. there is hereby established an Inter-Agency Council 
for the Creation of Jobs, hereinafter referred to as the Council, which shall be an 
inter-agency body administratively attached to the Office of the President. 
Sec. 3. Composition. The Council .snail be composed of Fifteen (15) 
members as follows: the Secretary of the Department of Labor and Employment 
(DOLE), who shall serve as its chairperson, the Director-General of the National 
Economic and Development Authority (NEDA), ,the Secretary of Department of 
Trade and Industry (DTI), the Secretary of the Department of Justice (DOJ), the 
Secretary of the Department of Finance (DOF), the Secretary of the Department 
of Agriculture (DA), the Secretary of the Department of Foreign Affairs (DFA), the 
Administrator of the Overseas Worker and Welfare Administration (OWWAL the 
Administrator of the Philippine Overseas Employment Administration (POEA), the 
Presidents of the League of Provinces of the Philippines (LPP), League of Cities of 
the Philippines (LCP). League of Municipalities of the Philippines (LMP). The 
President shall also appoint a representative from the Philippine Chamber of 
Commerce and Industry (PCCI), 'Employer's Confederation of the Philippines 
(ECOP) and from the recognized employee's union, who shall serve a term of 
three (3) years and who may be reappointed for another term. 
Sec. 4. The Secretariat. The Council shall organize a secretariat to be 
headed by a Chief of Office. The Council shall determine the secretariat's 
staffing pattem, qualifications, duties, responsibilities and functions as well as the 
compensation for the positions to be created subject to the National 
Compensation and Classification Plan and other existing civil service rules and 
regulations. 


Sec. 5. Assistance from other Agencies. The Council may, in the 
performance of its functions, request the cooperation, assistance, and support 
of appropriate government agencies and non-governmental organizations. 
Sec. 6. Council Meetings. The Council shall meet regularly once every 
three (3) months and may hold special meetings to consider urgent matters 
upon the call of the Chairman or any Five (5) Council members. 
Sec. 7. Powers and Functions of the .Council. The Council shall have the 
following powers and functions: 
(1) To act as the overall advisory and coordinating mechanism, providing 
policy and program directions for all job creation endeavors in the 
country; 
(2) To recommend job creation strategies to the Executive Department· 
and to the Local Government Units (LGUs); 
(3) To submit to Congress an annual report which shall include, among 
other things, policy recommendations which require legislative action 
towards the eradication of ·hindrances in the establishment of business 
enterprise. 
(4) To encourage and assist the LGUs to map out business opportunities in 
their respective localities and tie up them to investors; 
(5) To receive investment related complaints and refer them to 
appropriate government agencies for action. 
(6) To perform such other functions as may be necessary in furtherance of 
the purposes of this Act. 
Sec. 8. Appropriations. The sum of Ten Million Pesos (Php 10,000,000.00) is 
hereby authorized to be appropriated, out of any funds in the National Treasury 
not otherwise appropriated to carry out the functions of the Council under this 
Act. Thereafter, the sum needed for the operation and maintenance of the 
Council shall be included in the annual Budget of the Office of the President. 
Sec. 9. Repealing Clause. All laws, executive orders, presidential decrees, 
and other issuances, or parts thereof, inconsistent with the provisions of this Act 
are hereby repealed. 
Sec. 10. Separability Clause. If any section or part of this Act shall be 
declared unconstitutional, such declaration shall not invalidate other provisions 
thereof. 
Sec. 11. Effectivity Clause. This Act shall take effect fifteen (15) days after 
its publication in at least two (2) national newspapers of general circulation. 
Approved,