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Service Exportation: The Effects in the Youth Labor Market and its Implications toward Economic Growth

The dawn of the digital economy has approached the Philippines through the transformation of the service trade in the labor market. The study analyzed and observed a 30-year time series of the relationship between the country’s service exports, productivity, and youth unemployment rate towards the end goal of economic growth. The young IT-BPO industry is now the country’s most significant contributor to GDP, outpacing the manufacturing industry with more than 5% growth each year. Service exports play a big role in how the country is positioned in the future, and the study has seen a significant relationship between the GDP which proves to show that policy improvements, market openness, ICT infrastructure and capital expansion within these variables could help the country improve its unemployment rate and share on the global market.