In July last year, the Philippine government implemented a strict ban on offshore gaming operators (POGO), leading to a sharp decline in the POGO industry. This not only stalled the gambling industry but also led to a series of socio-economic issues such as a sluggish rental market, unemployment among Filipino POGO workers, and rising vacancy rates in commercial real estate.
Implementation and Impact of the POGO Ban
The Philippine government officially announced a complete ban on POGO at the end of 2023, with all POGO-related operational licenses set to expire on December 31, 2024. This policy was implemented due to concerns about illegal gambling activities, financial crimes, and public safety issues.
However, the direct consequence of this ban was the massive shutdown of POGO companies, leading to widespread unemployment and also affecting related industries: the food, retail, and entertainment sectors saw significant revenue declines due to the reduction in POGO workers. Taxi drivers, cleaners, and security personnel who relied on POGO businesses were also affected.
According to the Department of Labor and Employment (DOLE) of the Philippines, as many as 79,735 POGO workers were affected, with about 40,000 directly impacted by the closures.
The real estate market driven by the POGO industry suffered a severe blow. Office buildings and apartments, previously in high demand due to POGO, now face high vacancy rates. This is especially true in areas like Manila, Pasay, and Parañaque, where the POGO industry was concentrated, causing significant economic losses for landlords and property developers.
Most importantly, Filipino POGO workers face reemployment challenges due to the sudden halt in the industry. They have had to lower their living standards and even face financial difficulties.
Unemployment Wave and Government Measures
The government recognized the impact of the POGO ban on the job market and took various measures to mitigate it, such as job fairs.
In addition to job fairs, the DOLE launched the "PROJECT DAPAT" plan, aimed at helping unemployed POGO workers transition to new career paths through skill enhancement and retraining. Eligible unemployed workers could also receive unemployment insurance and livelihood assistance from the government.
According to DOLE statistics, during October and November, the department organized four job fairs in Parañaque City, Makati City, Caloocan City, and Pasay City, hiring a total of 202 IGL workers.
Additionally, 435 workers received SSS unemployment benefits, 708 joined employment promotion programs, 118 received livelihood assistance, and two unemployed workers were referred for skill training.
The results, however, were not very promising.
For example, a job fair held in November at SM Mall of Asia in Pasay City featured 790 companies offering 12,378 positions. However, participation was low, with only 62 people hired on the first day.
Another recent job fair, Career Con 2025 in Pasay, had at least 150 participating employers offering over 8,000 job vacancies. Although initially, 18,000 unemployed POGO workers showed interest, only about 8,000 attended. In the end, only 100 were hired on the spot.
As for the vacant POGO office spaces, the government has transformed some POGO operation centers into public facilities. For example, a POGO center in Pasay City was converted into the "Walang Gutom Kitchen," aimed at providing free meals to low-income families, receiving strong support from the government and social organizations.
However, there have been reports that the "Walang Gutom Kitchen" provided the public with leftover food. The Social Technology Bureau (STB) clarified that the kitchen accepts safe, clean, and edible donated food, not the so-called "pagpag" (recycled food).
Minimal Effectiveness of Employment Recruitment, What's the Issue?
Despite various measures taken by the government, the reemployment situation for POGO workers remains bleak. Bienvenido Laguesma, the Labor Secretary, admitted in a press conference that the hiring rate at multiple job fairs organized by the government was still low.
The reason is a mismatch between job seekers' expectations and market demand. Many POGO workers previously held high-paying positions and are reluctant to accept lower-paying local jobs. Additionally, the positions offered at job fairs are mostly entry-level, which do not match the experience and skills of POGO workers.
Moreover, some workers are waiting for the POGO operations to resume, while others have already found jobs.
According to the DOLE, most workers previously worked in Metro Manila, Central Luzon, Calabarzon, and Central Visayas, earning monthly salaries between 16,000 and 22,000 pesos. The current average salary in the Philippines is significantly lower. Once you've tasted fine food, who wants to go back to coarse grains?
DOLE officials stated, "About 40,000 IGL workers were directly affected by the POGO closure."
However, the market's capacity to absorb is limited. Although the POGO ban led to a wave of unemployment, the local job market in the Philippines has limited capacity to immediately absorb a large number of unemployed workers.
Policy uncertainty also causes some job seekers to hope that the ban might be delayed or revoked, or that new policies might be enacted, leading them to wait and see rather than actively seek new employment.
Nevertheless, the labor department stated that it would provide skill enhancement programs and up to 30,000 pesos in livelihood assistance to support unemployed workers.
PS: The Philippines has long been criticized for domestic inflation and low wage levels. There have been labor group marches protesting inflation; recently, lawmakers urged wage increases, but the proposal was not well received.
According to the latest survey by the Social Weather Stations (SWS), 63% of Filipino families consider themselves poor, the highest proportion since 2003. Additionally, 51% of families report facing food shortages, the highest level since 2004.
A proposal for a daily wage increase of 150 pesos has been submitted to the House Committee on Labor and Employment, but no substantial progress has been made. Meanwhile, the Philippine Chamber of Commerce, the Employers Confederation of the Philippines, and six other business groups strongly oppose the proposal, arguing that such an increase could put excessive pressure on business costs, further affecting economic recovery.
Even the small horses express concern, "Employers worry that if the minimum wage is raised, they may have to lay off workers because their revenue has not increased."
Conclusion
The Philippine government's ban on the POGO industry has maintained social order and financial discipline to some extent, but it has also triggered a severe economic chain reaction. Although the government has taken a series of remedial measures, including organizing job fairs, providing skill training, and livelihood support, and attempting to convert POGO office areas for public use, the overall effect remains limited.
How to effectively address the aftermath of the POGO ban and help unemployed workers smoothly transition to new careers remains a pressing challenge for the Philippine government!
