Philippines Covid-19 Poverty Monitor: November 2021

November 18, 2021 CPAN

How is Covid-19 impacting people living in, or at risk of, poverty in the Philippines? What policies are needed to mitigate the impact of Covid-19 on chronic poverty? CPAN’s Covid-19 Poverty Monitor is an ongoing research project that interviews people about their experiences of the pandemic. This is the third bulletin focused on the Philippines; please see the April bulletin and August bulletin, or to find out more about the project, visit our blog about the global project. This bulletin dives into the main economic, health, social and other concerns of those interviewed, as well as policies to minimise the impacts of Covid-19 suggested by the respondents.

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Areas of concern for the poorest and potential impoverishment

There are no positive significant changes in the lives and livelihoods of the respondents since the second round of interviews carried out in June 2021, where respondents identified support for jobs, livelihoods, and financial assistance were key areas that needed attention to mitigate the impact of the pandemic. Among respondents, there was no expectation that the government or other sectors would provide assistance in the short or medium term. Respondents seem to be ambivalent about what the government can do for them in these difficult circumstances.

Income from micro-livelihoods has yet to regain pre-pandemic levels according to respondents who operate neighbourhood stores, eateries and transport services (mainly tricycles). Also complicating the situation is the long lockdown from August to September 2021 in Metro Manila that affected the transport of goods and services to and from the regions. Lockdowns at the village level in the provinces also had an economic impact on residents.

“We experienced another Enhanced Community Quarantine (ECQ) this October (2021). My tricycle service was limited to alternate days with only two passengers for every trip. It has never been like the pre-pandemic time.” Male respondent, Bicol region
“My family was struck twice by the Covid-19 virus. During the second bout of the illness, my wife’s absences from work, under the ‘no work, no pay’ policy of a Job Order from the local government, put us in debt to relatives and friends so that we could buy medicines for three of us who fell ill. To make matters worse, the practice of delayed salaries at the LGU (local government) necessitated that we borrow money again from another party to pay the first party we promised to pay on a particular date. We were doubly indebted.” Male respondent, Bicol region
“I’m lucky that I have my pension from the government to help us with our everyday needs. My son now only earns PHP100 or less a day from his tricycle service. He used to earn at least PHP300 ($1.99)3 a day before the pandemic. Our small store also helps us but not that much, maybe PHP500($9.97) as income on a good week. The last time I received money from my other children was last December 2020, where I got PHP2,000 ($39.89). I understand because they too have their families to feed. But that’s how we get by here.” Male respondent, Bicol region
“I haven’t seen my siblings and cousins in the other town. I used to go there during harvest time and trade their harvest of rice or corn with fresh or dried fish that I get here from my son who works in the fish port. That trade was a great help for us in our everyday food expenditure. Since I am no longer able to do that because of the lockdowns, I feel now how difficult it is to lose additional sources of income.” Female respondent, Soccsksargen region, Mindanao

Table 1. Philippines’ Covid-19 alert levels system

Taking relatives into one’s household was reported as a form of support to families experiencing economic difficulties amid the pandemic. This can mean migration to another location.

“My 20-year-old son lives with my sister-in-law who has a general merchandising store in another province. My son gets paid for assisting in the store. This is helpful to me because he is one mouth less to feed in our household.” Male respondent, Bicol region

Getting help from healthcare centres continues to be curtailed by fake news on Covid-19 and the fear of (i) getting the virus from the health facility, and (ii) being required to stay in the quarantine facility. Interviewees who had symptoms of the Covid-19 virus infection (flu, loss of sense of taste and smell) practised home quarantine and remedies. These cases went unreported.

“I do not believe in the Covid-19 virus. Some say the vaccination can result in fatal illnesses as a way of curbing the world population growth.” Female respondent, Bicol region

On the vaccination program, some sectors require their members to be vaccinated to be able to participate in their trade. This was the case of a Tricycle Operators and Drivers Association (TODA) in a province.

“Our vaccination is scheduled at the end of October. You will not be allowed to bring out your tricycle for service if you are not vaccinated.” Male respondent, Bicol region

Most respondents are vaccinated, and they encourage their peers, families and friends to get vaccinated. One respondent working alongside the local government’s programme on senior citizens’ welfare expressed how it has been difficult to convince senior citizens living in the uplands to get vaccinated. He shared that disinformation about the Covid-19 vaccines spread quickly in his town and that it stayed in the upland communities where government services are not easily accessible.

Since nearly all respondents have experienced reductions in household incomes at different levels, they have adhered to health protocols to avoid getting sick and which can leave them with a huge debt from hospitalisation costs. Incurring health expenses from Covid-19 is an important concern among households as further financial burdens would lead them to chronic poverty.

“I tell my sons not to meet their friends. They are still unvaccinated, plus the wife and adult kids of one of my sons. If they contract the virus, we will all surely die because there is no way that we can afford the hospital costs.” Female respondent, Soccsksargen region

Given the limited financial resources of the state health insurer Philhealth, which is mandated to implement the country’s Universal Health Care (UHC), patients confirmed with Covid-19 can be covered with PHP 43,997 ($878) for mild pneumonia; PHP 143,267 ($2,858) for moderate pneumonia; PHP 333,519 ($6,653) for severe pneumonia and PHP 786,384 ($15,685) for critical pneumonia. Beyond these amounts, patients are expected to pay the balance of their hospitalisation bills.

Issues that were raised around education in January 2021 remain a concern, particularly on the needs of high school students for gadgets to support their participation in online classes. The distribution of gadgets, such as tablets or laptops, and internet support for students has mainly been supplied by the local government and is therefore dependent on available financial resources. The national government has tried to address the digital divide by distributing laptops to teachers and school personnel.

Schools are yet to open across the country and according to UNICEF, the Philippines and Venezuela are the only countries yet to resume basic education classes since the declaration of the Covid-19 pandemic in March 2020. The only classes in tertiary education allowed to conduct face-to-face sessions on limited occasions are in the medical field. Starting 15 November 2021, 90 schools from the Visayas and Mindanao provinces will be reopened as a pilot to test the resumption of face-to-face classes in basic education. The effects of almost 20 months of modular or online classes in terms of learning outcomes and mental health have yet to be determined.

“Online classes at the college level incurs additional costs because sharing of materials for tasks previously assigned to groups in a face-to-face set-up is not possible online. For instance, each student needs to provide for all the materials required for laboratory work in electronics.” Female respondent, Bicol region
“Our children in high school need gadgets for their online education, but we cannot afford them.” Male respondent, Bicol region

Long-term impacts of Covid-19 pandemic and forecast on future threats

With the recurring lockdowns, a common issue among respondents is their inability to earn enough income and is their main concern if the pandemic lingers. Many fear food insecurity if the pandemic gets worse, as their food budgets are reduced. Respondents’ inability to socialise with their family and friends for almost 20 months has also emerged as a key concern among respondents.

“Community lockdowns and health protocols limited my mobility and opportunities for extra earnings to augment our family income. Before the Covid-19 pandemic, I used to be able to earn extra money on construction work during weekends besides my regular income as an LGU employee. Besides the limited mobility, there are also fewer opportunities in construction work because some homeowners are also anxious about the possible spread of the virus from construction workers while others have limited financial capacity for non-essentials like house repairs.” Male respondent, Bicol region
“I want to go back to my village. We can’t continue living here in the city because our incomes as store workers in this grocery are not enough. I will resume charcoal making. I don’t care if the government says it’s illegal. I still can’t do any farming since the rats are still there, and worse than before. They can’t let us die of starvation.” Male respondent, Soccsksargen region
“If the pandemic continues to linger, families and their community will surely be affected. If there’s a Covid-19 case in the area, there will be another lockdown and work will stop again.” Female Respondent, Bicol Region

Social distancing will have a lasting impact on the income of those with a transportation livelihood, such as tricycle and jeepney drivers, according to interviewees. One respondent expressed hope that with the vaccination programme, the pandemic will cease to be a threat and living conditions will get better.

Policy recommendations to mitigate the impact of Covid-19

Most of the respondents expressed the need for seed capital to enable them to start their own micro-enterprise but only a few could describe the type of enterprise they will establish. Employment was a key concern, and they hope the government can create jobs as most households in the sample have one or two members who have lost their jobs within the past 20 months. Lastly, the issue of high food prices was a prevalent and recurring concern since the first round of interviews. Respondents expressed that the government could take action to ease financial burdens, such as lowering the prices of food.

“We live in a mountainous area. Support for a livelihood in livestock will be most helpful to us - chickens, pigs, feeds. Households in lowlands will need support in other forms of livelihood.” Male respondent, Bicol region
“A loan facility with easy terms intended for livelihood capital for a community store.” Male respondent, Bicol region

Households with children in high school suggested the government should support the provision of gadgets and internet connections to help them cope with online education. One interviewee suggested there should be a public area with free Wi-Fi to enable high school students to get online for education.

Based on the response of one of the interviewees, political ‘colours’ or affiliations triggered, for instance, by the upcoming 2022 elections, can provide the basis for the distribution of government assistance depending on who wins and who loses. Therefore, integrity in the selection for government assistance such as scholarships, cash transfers and relief goods should be guarded and preserved. This perspective comes from previous experience where villages receive public resources during and after the elections if their village political leaders can deliver votes for a specific political candidate. In addition, one interviewee from the Bicol region proposed the extension of the 4Ps programme or the Conditional Cash Transfer Programme which, according to him, is already closed to new members.

One respondent reported the need to get the Covid-19 health crisis under control as overseas Filipino workers are adversely affected by the Philippines ‘red zone’ health categorisation, impacting incomes.

“My daughter’s former easy access to overseas employment has been curtailed because of restrictions on flights and entry from the Philippines to other countries.” Female respondent, Bicol region

Some respondents also emphasised the need to improve the country’s vaccination roll-out programme. The Philippines is ranked at the bottom of all countries surveyed by Bloomberg’s Covid Resilience Ranking. The vaccination rollout has been low with about 26% of the total population fully vaccinated as of October 2021. Moreover, vaccine hesitancy remains a problem in some areas. One respondent shared that she has encountered people who are wary of being vaccinated since they fear the side effects.

Read more on CPAN’s Poverty Eradication Policy Preparedness Index adapted for Covid-19.

Key external sources

To find out more about the impacts of Covid-19 on poverty in Nepal, please explore the following sources that were reviewed for this bulletin:

Covid-19 Resources

COVID-19 High-Frequency Monitoring Dashboard

World Bank

RECOVR Philippines: Tracking the Effects of the COVID-19 Pandemic

Innovation for Poverty Action (IPA)

Monitoring COVID-19 Impacts on Families and Firms in the Philippines

World Bank

Coronavirus country measures

International Social Security Association (ISSA)

Impacts of COVID-19 on Households in ASEAN countries and their implications for human capital development

Asian Development Bank

Policy Responses to Covid-19

International Monetary Fund

This project was made possible with support from Covid Collective.

Supported by the UK Foreign Commonwealth and Development Office (FCDO), the Covid Collective is based at the Institute of Development Studies (IDS). The Collective brings together the expertise of, UK and Southern-based research partner organisations and offers a rapid social science research response to inform decision-making on some of the most pressing Covid-19 related development challenges.

Philippines Covid-19 Poverty Monitor: August 2021

August 2, 2021 CPAN

Thank you for visiting our new Covid-19 Poverty Monitor. To find out more about the project, visit our blog about the project.

Download PDF version

Areas of concern for the poorest and potential impoverishment

Livelihoods remain generally dire, according to most of our respondents. New lockdowns in March 2021 had a big impact, primarily in Metro Manila and adjacent provinces due to a surge of Covid cases that drove hospitals into critical capacity. By April, other regions in Mindanao and the Visayas also had similar localised restrictions, as directed by the national government. These new lockdowns once again restricted travel, which heavily impacted the incomes of both producers and sellers in public markets and resulted in huge financial losses for some respondents and their respective communities.

These findings are consistent with a recent World Bank Study which indicated that as much as 80% of farm households interviewed reported a decrease in farm income since the beginning of the pandemic. Also, based on the enterprise survey conducted by the Asian Development Bank, in collaboration with the Philippine Department of Finance, 39.1% of those surveyed experienced severe bottlenecks due to the lockdown measures; 26.7% reported only minor bottlenecks; and 34.2% did not experience any bottlenecks.

“Our expenditures in producing the crops ran up to PHP40,000 (US$803.47), but the one-week lockdown prevented us from selling our produce. I had to throw away my atsal [bell peppers] produce because I was not able to sell them during the lockdown. Even in Manila, the demand for fresh produce has gone down. This low demand has reduced the prices of our crops significantly.” Male respondent, Soccsksargen region, Mindanao.

According to our small-scale farming respondents, there is a lower demand for agricultural produce. This has brought down the prices of crops and consequently affected the income of farmers. According to one respondent, the price of bananas has gone down from PHP15.00/kilo to PHP 8.00/kilo ($0.30/kilo to $0.16/kilo). According to their middleman, this is because the export of bananas has declined.

Buying ‘local’ creates new market opportunities: In other cases, livelihood opportunities increased as lockdowns were eased to normalise the economy. A number of respondents have expanded or started their own micro-enterprise to help supplement their household incomes. These enterprises are home-based in the villages which greatly helps those hesitant to venture into a town’s crowded central public market for fear of Covid-19 infection. Another reason points to the uptick in transport fares, which discouraged travel and directed people to buy goods from their neighbourhood vendors, even roving around to sell within the village.

“With my husband’s reduced salary, I had to find ways to augment our income since my allowance also from the city government is inadequate. I started selling rice and stewed vegetables which I am able to grow in our backyard. By selling these humble meals, we are able to earn PHP500 ($10.03) a day, good enough for us to buy our medicines, milk and oatmeal.” Female respondent, Soccsksargen region, Mindanao.
“My livelihood of selling fishball expanded to include egg sandwiches and hamburgers. The number of my customers increased because people prefer to buy from nearby stores than go to the market. They would rather use their money to buy food than to pay for transportation.” Female respondent, Bicol region.
“I can now bring out my tricycle four days/week with the lower level of community quarantine. This has improved our family income. We can now include meat in our meals.” Male respondent, Bicol region.
“My son stopped his tricycle service as income from there was doing badly. He is now employed in a small enterprise owned by his cousin, and he was also able to get a loan from an informal credit lender to put up this mini store. I never thought it would be this challenging to pay for our debt every month as most people buy on credit. I often have sleepless nights trying to figure out how to come up with our monthly payments.” Female respondent, Bicol region.

Income decline and expenditure increases still widespread: Most respondents observed that household expenditures have increased while income has decreased during the pandemic, an observation also found in Innovations for Poverty Action’s new study. There is a general perception that utility bills and food expenditures have increased as well as transportation costs, and the amount spent on mobile phones and internet access. Buying clothes, eating out and visiting relatives were on top of reduced discretionary expenses.

The statistics support this view with inflation continuing at 4.5% between March and May 2021. The food index is the largest contributor to inflation, with meat, particularly pork, reaching a record high of 57.7% inflation due to supply chain issues from the lockdowns and the continued outbreak of the African swine flu (ASF) (see table 1). Inflation at 4.5% was way above the government target of 2-4% and this time last year’s inflation rate of 2.1% (May 2020).

“Fares of tricycle service has gone up from PHP15 ($0.30) to PHP30 ($0.60) because fewer passengers can ride per trip in order to observe health protocol.” Male respondent, Soccsksargen region, Mindanao.
“All of [the supermarkets] have increased their prices since the pandemic.” Female respondent, Soccsksargen region, Mindanao.

In households living at subsistence level, a decrease in livelihood opportunities resulted in lower frequency and quality of meals served at home. Based on the Pinggang Pinoy (Filipino Plate) concept developed by the Food and Nutrition Research Institute, the recommended daily food intake includes 200g of rice, 200g of vegetables, 103g fruit, and 103g meat. Among the participants in this study with a household size of five, this daily food proportion adds up to a kilo of rice, a kilo of vegetables, half a kilo of fruit and half a kilo of meat that households living on subsistence level cannot afford.

“I am doing laundry services for just one household now. This has affected our daily food intake. Sometimes, we just eat twice a day and we can only afford to have fish two days a week. At other times, when our household budget is really tight, my children eat at relatives’ homes.” Female respondent, Bicol region.
“My wife works under a Job Order (JO) from a local government agency. A JO is a no work, no pay arrangement. When my wife experienced flu symptoms and had to be absent from work, our food budget was affected because of the number of days she did not get paid.” Male respondent, Bicol region.

Remittances: Two respondents reported that they have their lost income support from remittances provided by members of their family who are working overseas. The reasons for the current lack of job security among those working overseas include: (i) floating work status due to Covid-19 surge in foreign country destinations (e.g., Italy) until the health situation in these countries improves, and (ii) lower job opportunities. The report, Impacts of COVID-19 on Households in the Philippines (based on results of Round 1 of the Philippines COVID-19 Household Survey conducted last August 2020 by The World Bank Group, Philippine Department of Finance, Kagawaran ng., and Australian Aid.), about half of the households that usually receive remittances saw a decline in their receipts in August [2020] and 11% did not receive any remittances.

“My son who works as a seaman was sent home due to the high incidence of Covid-19 cases in Italy. Currently, he has no work. He is helping out on our farm while waiting for a call from the agency.” Male respondent, Soccsksargen region, Mindanao.

Unclear rules on claims for government assistance: The selection criteria for government support are unclear and questionable, according to some of the respondents. With the proposed third round of nationwide relief aid packages (Bayanihan 3), many respondents are hoping to be included as they attest that their conditions have continued to worsen with the pandemic. The Bayanihan 3 is the third stimulus package that would provide PHP401 billion ($8.5 billion) worth of relief aid packages and livelihood intervention programmes to help the populace recover from the pandemic.

Shame in claim-making was expressed by some respondents as a reason for failure to take up previous rounds of government assistance. This is mainly due to unclear information and direction. The targeting of beneficiaries and overall implementation of the Covid-related government assistance packages has been a perennial problem marred by capacity and information dissemination issues that were all observed even in the delivery of the first programme (Bayanahin 1) implemented in April 2020.

“I do not know if I can claim government benefits for my 21-year-old son who has special needs. I am ashamed to ask because I do not know who to approach.” Female respondent, Soccsksargen region, Mindanao

Another financial support mechanism mentioned by respondents is the PHP500 ($10.04) monthly pension given by the LGU to its senior constituents (60 years old and above) which is appreciated by the respondents across the participating sites.

Most respondents reported no changes in the frequency of meals per day since the last interview. Protein intake is still limited, often from the cheapest fish available or canned sardines. Some respondents reported buying on credit from neighbourhood stores while others borrowed from neighbours to maintain food intake. Rice remains an important food expense for all respondents. One respondent who now has additional income from cooking for a household still maintains the same lessened food expenditure or meal size since the start of the pandemic as she fears that “the worst has yet to come”. Similar observations were also found in a new study by Innovations for Poverty Action and the report Impacts of COVID-19 on Households in the Philippines (August 2020) found that about 70% of households reporting lower or no income ate less than usual; about 30% of these households experienced hunger, and about 15% have experienced not eating the whole day.

“We continue to buy on credit from our neighbor [store]…” Male respondent, Soccsksargen region, Mindanao.

Moreover, many respondents reported increased food prices on staple food. Four respondents supplemented their food expenses through kitchen gardening, which usually consists of root crops and vegetables.

“We budget our food expenses just so we can buy rice… We don’t feel full when we eat a dish with no rice.” Female respondent, Soccsksargen region, Mindanao General Santos.
“We eat fish. Pork meat is expensive.” Female respondent, Soccsksargen region, Mindanao

Access to health and health-seeking behaviours: Four respondents and/or other family members reportedly experienced flu symptoms in the last two to four months. These symptoms included cough, high temperature, temporary loss of sense of taste and loss of appetite. In most cases, the flu symptoms were treated with traditional homoeopathic remedies (such as herbal infusions of ginger and banaba), hilot (traditional healing massage) and self-medication. The reasons for not seeking medical advice included a fear of getting Covid-19 in clinics and hospitals and lack of money for medical consultations.

In another case of suspected Covid-19 symptoms, a respondent and her husband decided not to go to the hospital or report their condition for fear that they will be placed in the city’s quarantine facilities. As seniors, they reasoned that their conditions would get worse if placed in an unfamiliar environment. On the whole, many respondents reported avoiding consultations and routine check-ups for fear that their condition would be diagnosed as Covid-19.

“We suspected it was Covid-19 and so self-quarantined, took paracetamol and prayed. We thank God that we survived it... We didn’t report our condition to the authorities - we will get stressed if they will bring us to the quarantine facilities.” Female respondent, Soccsksargen region, Mindanao.

A respondent who reported flu symptoms during the first round of interviews was experiencing the same flu symptoms during the second interview. He continued going to work for as long as the flu symptoms were not noticed in the workplace, but he had already been absent from work for three days by the time of the second interview. His wife and two children caught the virus too and were unable to report for work or to accomplish their school worksheets. His eldest daughter, at 16 years old, was the one who went to the market and drugstore to buy their food and medicines. When his daughter was asked about her age by the guard at the entrance to the marketplace, she said she was 19 years old. This is because minors are still not allowed in public and commercial places (key informant, Daraga).

Lockdown prevented some respondents from taking trips to the health centre.

“The health centre was a sikad [tricycle] ride away, but there was no transportation available and my mother cannot walk anymore due to arthritis.” Female respondent, Soccsksargen region, Mindanao.

The case of four respondents shows the interrelatedness of health and income. An elderly couple with health problems have been unable to work and are reliant on financial help from their children, who are likewise hard-up on covering their basic needs, including food. One respondent with a lump in her neck, said the growth of the lump led her to give up her laundry services due to the discomfort and attention her condition drew from others.

“When my wife fell ill with flu symptoms, I was not able to offer tricycle services because I had to care for her. She was ill for around 10 days. This affected our family income.” Male respondent, Bicol region.

Vaccine uptake: One respondent expressed hesitancy in getting the Covid-19 vaccination. Among married couples, the wife is usually the one who is unwilling to get the vaccination while the husband is willing.

“I was never ill ever since I can remember; the vaccination might even make me ill.” Female respondent.

One older male respondent from the Soccsksargen region, Mindanao was not willing to have the vaccination because of news going around about the vaccine’s side effects. He was also unwilling to take the trip and join the long queue for a vaccination.

Among those who are willing to get the vaccination, their decision is based on the following: (i) information from a health worker on the health benefits of getting vaccinated, (ii) the vaccination will be a requirement for travel, and (iii) the vaccination will be part of work regulations. One respondent also suggested that the local government should hold meetings in the barangay [villages] so that people will be educated on the importance of the Covid-19 vaccines.

“We are encouraged to get a vaccination once it becomes available so that we can continue to join the queue of tricycle drivers at the terminal.” Male respondent, Bicol region

Problematic access to secondary education: In all households living at subsistence level, children were never asked to stop their schooling in order to work and supplement the family income. There is a general consensus that education is important as it could provide their children with better opportunities in life.

According to one respondent, the distribution of learning materials every week to elementary students is consistently provided because of the presence of schools in every barangay [village]. Even during periods of lockdown, the school is accessible to teachers and parents for pick-up and return of the weekly modules and activity sheets. However, because secondary schools cater to a bigger community and can be far from teachers’ and students’ homes, the materials cannot be provided during periods of strict lockdown and necessitate shifting to the online mode of learning delivery. However, the need for internet connectivity and for online gadgets disrupts the secondary education of those who do not have access to these requirements. According to the respondent, these requirements are not provided by the education department. Hence, consistency in the delivery of online education from secondary schools is mainly dependent on internet access and the ability to pay for the service; and the ability of households to secure online gadgets such as smartphones, laptops or tablets.

Restrictions in Soccsksargen and Bicol regions where informants were interviewed. See full outline of measures.

Coping strategies

Community support: Three respondents expressed that support from relatives has helped them cope with the negative impacts of the pandemic. Access to credit from CARD, a microfinance and lending organisation, is mentioned by many respondents as invaluable institutional support for coping with financial difficulties due to the pandemic.

Some respondents have also developed kitchen gardens mainly for daily household consumption purposes. One respondent shared that she and her household have an informal arrangement with their neighbour’s kitchen garden. She provides them with vegetable stems and seeds and helps them take care of the garden. In turn, the neighbours give them a portion of the harvested vegetables.

“Help from relatives is the only assured form of help in difficult times.” Female respondent, Soccsksargen region, Mindanao
“I am now unable to offer laundry services because the lump in my neck has grown from the size of an egg to the size of a child’s fist and I do not have the money for an ultrasound. So, one of my siblings with a good job as a saleslady provides us with food every day even though she has her own family.” Female respondent, Soccsksargen region, Mindanao

Green spaces: According to one respondent, the clean and green program of their province in the Bicol region diverted their attention away from unfavourable circumstances brought by the pandemic. The cleanliness and beauty in their surroundings brought renewed hope for the future especially in their community for having won the province’s barangay-level beautification program.

Casual work: The demand for day labour has also been mixed, with some respondents able to find new employment opportunities while some are still not able to find work. But overall, the labour shock experienced by unskilled manual workers is still prevalent, particularly in construction and service sector workers.

“Government gave a warning to our area on cutting trees for charcoal. So, I had to look for work somewhere else or I and my family would starve. I got this job in the city as a helper in a grocery store. I can’t say that our lives have improved since I left our village two months ago. I could have made more in farming, but the rat pestilence will not be over until after a year.” Male respondent Soccsksargen region, Mindanao.
“Since April this year, a family has asked me to cook for them 2-3 times a week. I get paid PHP200 ($4) every time I do this. And just last week (June 21), I was asked by a household to do their laundry every weekend which pays PHP200 ($4) per day. I’m happy for this turn of events, which helps me a lot for our expenses at home.” Female respondent, Bicol region.

Key external sources

To find out more about the impacts of Covid-19 on poverty in Nepal, please explore the following sources that were reviewed for this bulletin:

Covid-19 Resources

COVID-19 High-Frequency Monitoring Dashboard

World Bank

RECOVR Philippines: Tracking the Effects of the COVID-19 Pandemic

Innovation for Poverty Action (IPA)

Monitoring COVID-19 Impacts on Families and Firms in the Philippines

World Bank

Coronavirus country measures

International Social Security Association (ISSA)

Impacts of COVID-19 on Households in ASEAN countries and their implications for human capital development

Asian Development Bank

Policy Responses to Covid-19

International Monetary Fund

This project was made possible with support from Covid Collective.

Philippines Covid-19 Poverty Monitor: April 2021

April 16, 2021 CPAN

Thank you for visiting our new Covid-19 Poverty Monitor. To find out more about the project, visit our blog about the project.

Download PDF version

Areas of concern for the poorest and potential impoverishment

Lost income from micro-businesses: Most micro-businesses such as neighbourhood stores and tricycle transport service have seen as much as a 60% drop in income due to a nationwide lockdown from 15 March to 1 June 2020. Purchases from neighbourhood stores have declined significantly, including reduced use of transport services. Only three respondents were able to start a micro-business as a result of the lockdown. As the lockdown was eased, the financial situation of many micro-businesses improved but not to pre-pandemic levels. A study by the Asian Development Bank (ADB) from rapid surveys of micro-, small- and medium-sized enterprises indicated that 70.6% of shops in the Philippines were closed between March to April 2020 (from a sample of 1,804 enterprises). This number was the highest among other countries surveyed such as Indonesia, Thailand and Lao PDR.

“The pandemic brought tricycle services to a halt in March [2020]. Tricycle rides started to normalise in September, but a coding scheme limited tricycle service to alternate days.”

— Female respondent, Bicol region

“We used to have a store in front of a school. It was doing well until the lockdown when we lost all our customers. We had to close the store, but we are still paying the loan we took to set up this store.”

— Female respondent, Bicol region.

“I did not have work for three months from March [2020]. When work resumed under the general community quarantine, there was much less work available. I am earning only half of what I used to earn.”

— Female respondent, Bicol region

Unemployment: For daily wage earners, the resumption of work under different levels of community quarantine has not brought back the same volume of work or amount of earnings as before the pandemic. Most respondents who lost their jobs as daily-wage earners, such as construction workers and those doing neighbourhood laundry service, have yet to find work a year after lockdown.

“During the lockdown, I was no longer asked to wash clothes in their homes.”

— Female respondent, Soccsksargen region, Mindanao

Reduced discretionary spending: All but three respondents reported significant changes in their food expenditures and are eating less as a consequence of their loss of income as daily-wage earners or from disruptions with their micro livelihoods. Inflation reached 4.2% in February 2021, the highest since 2019. Reductions in expenditure on transportation and medicine were also noted. In the Bicol region, the impact of three strong typhoons also directed a portion of food expenditure for home repairs.

“My budget is not the same as it was before the pandemic. In addition to my salary, I had some profit from my business. But now, I have no business and have loans to pay.”

— Female respondent, Bicol region

Natural hazards and risks: The impact of regular natural hazards added to the financial challenges faced during the pandemic. Five household heads from the Bicol region said that typhoons Rolly and Ulysses destroyed their houses. In the Mindanao area, several interviewees stated that drought and rat infestations damaged their crops. These households grappled with both the impacts of the Covid-19 virus and the destruction caused by natural disasters on their physical assets and agricultural produce at the same time.

“The strong typhoons November to December 2020 destroyed a part of our house. We had to take another loan for house repairs.”

— Female respondent, Bicol region

Loss of remittances from domestic and foreign sources: Several households reported loss or reduction in remittances from children whose jobs were affected by the pandemic. This finding is supported by an evaluation of the labour market impacts of Covid-19 carried out by the International Labour Organization. Remittances made up around 10% of GDP in the Philippines in 2019, the fourth largest destination for international remittances in the world and are a critical component of many households’ livelihoods. One respondent’s eldest son had to return to his family in the province when he lost his job during the pandemic. In another case, a daughter on vacation in the Philippines from her overseas work was caught in the global lockdown in March 2020 and was unable to go back to work in the Middle East.

“The remittance that we receive from our son who works as a seaman was reduced as an effect of the lockdowns due to the pandemic. We used to be able to go to the market every day to buy rice and fish. We cannot afford to go to the market every day anymore.”

— Male respondent, Bicol region

Access to health services: Many respondents are avoiding public health services due to the misconception that common flu symptoms will be diagnosed as Covid-19 and require quarantine in a facility. Testing is also prohibitively expensive and not covered by the country’s universal health insurance. There is also a stigma associated with contracting the virus. Two households revealed that they did not consult a doctor for possible Covid-19 symptoms and one interviewee continued going to work despite symptoms.

“My wife, two children, and I experienced flu symptoms – fever, cough and colds – including loss of smell and taste one after the other. We were afraid of going to the doctor because people say that even high blood pressure is diagnosed as Covid-19. We just took paracetamol and ate chilli. I even continued going to work. Workers in the workplaces I inspected reported experiencing the same symptoms. ”

— Male respondent, Bicol region

“We are scared of getting Covid-19 because once you get to the doctor, they will diagnose you with it at once.”

— Female Respondent, Bicol region

Mental health: Some respondents expressed they are experiencing anxiety because of the pandemic. They described bouts of sleeplessness, irritability in the home, hopelessness and suicidal thoughts.

“Sometimes we ask ourselves, ‘Is this going to be our life from now on?’ But we realise that if we don’t take safety precautions, we might get the virus. If that happens, our friends and our neighbours will stay away from us. That causes anxiety.”

— Female respondent, Bicol region

“When my husband died, everything changed for us. And to get through those difficult times, I would visit my neighbours and spend time with them chitchatting. But with the lockdown, I couldn’t go anywhere but just inside the house and had no one to talk to. And this with the loss of income was just so overwhelming… I had thought of committing suicide… at a number of instances.”

— Female respondent, Bicol region

Inferior food intake: Many respondents stated that they have reduced their food expenditure. Though most respondents still eat three meals a day, protein intake has been limited, often with the cheapest fish available or from canned sardines. Some respondents reported borrowing money from family members and neighbours to maintain food security.

“Feeding my three children on my own with a reduced income has become a challenge. I buy less rice from the market and harvest vegetables from our backyard garden. I can only afford to buy fish every now and then.”

— Female respondent, Soccsksargen region, Mindanao

Increased costs of staple goods: Many respondents in the typhoon-affected areas of the Bicol region faced increased food prices and less availability of farm produce in public markets. There was an attempt by two respondents to plant corn in the uplands in Mindanao but this was ruined by a rat infestation beginning February 2021. Soaring food prices have prompted the government to introduce a price ceiling on meat and to increase food imports.

“Our salary didn’t increase, but prices increased.”

— Female respondent, Bicol region

“This is a new housing project, there are few stores to choose from and the available ones are expensive. We are unable to travel to the city centre, and there is no food delivery.”

— Female respondent, Soccsksargen region, Mindanao

Social interactions: Respondents reported a lack of social interactions due to Covid-19 restrictions prohibiting social gatherings and family reunions, as well as a preoccupation with the search for income-earning activities.

“We used to have a place in the neighbourhood where people can hang out. Now, people go on their own. And most of the time, they are busy looking for ways to earn a living.”

— Male respondent, Bicol region

“My grandchildren have not seen their parents who are working in Manila for a year now. I have also not seen my children for a year now.”

— Female respondent, Soccsksargen region, Mindanao

See full outline of measures: https://www.officialgazette.gov.ph/downloads/2020/10oct/OMNIBUS-Guidelines-with-Amendments-as-of-October-22-2020.pdf

Sectors most affected by containment measures

Casual work: The 2020 Labor Force Survey by the Philippine Statistical Authority reported unemployment to be at 10.4%, the highest rate reported in 15 years. Many respondents searched for day labour but lockdowns restricted their movements, particularly those in the rural areas hoping to get jobs in the cities. A few were able to resume their former casual work such as construction jobs by September 2020.

“It was difficult because I didn’t have construction projects with the pandemic. From March until September I had no construction projects. It was only in October that my good friend, who owns a construction firm, asked me to help with a project.” Male respondent, Soccsksargen region, Mindanao
“After losing work, I now have gone back into the forest to cut small trees to make charcoal and sell these to our village market. That’s how we survive now.” Male respondent, Soccsksargen region, Mindanao
“I started a neighbourhood sundry shop during the pandemic so I can have some income.” Female respondent, Soccksargen region, Mindanao.

Loans and credit: Most respondents have taken out loans from money lenders and relatives, primarily for food expenditure. Some respondents are for the first time buying on credit from their local store.

“I buy on credit from the neighbourhood store. I use my tricycle as collateral to borrow money from other people. I borrowed money from my brother. Payment for these loans has become part of my monthly expenses.” Male respondent, Bicol region
“Sometimes, we don’t have enough money to buy rice, so we buy on credit from stores or borrow money from our relatives.” Female respondent, Bicol region

Combined coping strategies: Coping strategies in sampled areas typically involve communing with other members of the village but because socialising was restricted, these had to be made in small groups. The majority of the respondents focused on finding casual work, such as laundry or construction jobs. A few respondents were able to raise livestock or venture into backyard gardening for additional income or to supplement food intake. These respondents grew malabar spinach/basella, okra, moringa and sweet potato leaves primarily for consumption as available land was limited.

Programmes in place to mitigate impoverishment due to Covid-19

In response to Covid-19, the national government provided two grants between PHP 5000–8000 through the Social Amelioration Program (SAP) to poor or families in distress all over the country. Respondents who received the SAP were able to mitigate the impacts of income loss, particularly the daily wage earners. The government introduced the Balik Probinsya (Back to the Province) programme in May 2020 to assist those who have lost their jobs in cities, particularly Metro Manila, and be voluntarily repatriated to their home provinces with possible livelihood support. The media reported this caused a lot of controversy and confusion as it was seen as ‘exporting’ the virus to areas with fragile health systems. There has yet to be a report evaluating the programme’s impact.

Local government units (LGUs) distributed food packages consisting of rice, canned goods, milk, coffee and other essential items. Depending on the income of the local government unit, these food packs were distributed on several occasions within the strict lockdown period from March to September 2020. Among respondents, one household from urban Mindanao received as many as five of these packages, while rural counterparts of the same region received two at most. LGUs with fewer financial resources are unable to provide food assistance at more intervals. The Department of Agriculture also provided PHP 5000 cash assistance to 600,000 rice farmers during the strict lockdown and the enhanced community quarantine (ECQ).

Ongoing programmes that continue to support households at risk of impoverishment are:

The conditional cash transfer (CCT) programme or 4Ps (Pantawid Pamilyang Pilipino Program), which provides support for the poorest of the poor in both the rural and urban areas. These families also received SAP assistance on top of their monthly CCT allocation. There are ongoing discussions and policy proposals to expand the coverage given the impact of Covid-19.
Senior citizens (aged 60 and above) without a government pension are provided financial assistance by their LGU, which on average is PHP 1500 quarterly. Implementation of this scheme may be on a best-efforts basis, depending on the available resources of the LGU.