MANILA, Philippines—The National Economic and Development Authority has expressed confidence that the country’s employment woes, marked by job layoffs mostly in the manufacturing sector, may soon be over.
According to Dennis Arroyo, Neda director for policy and planning, there have been indications that job cuts by firms here in the country may have already reached its peak in March.
“There are signs that job displacements are already bottoming out,” Arroyo told reporters. “Official data are encouraging.” He cited data from the Department of Labor and Employment (DOLE), showing that layoffs reached 1,026 in the first half of April. This was a stark slowdown from the peak of 14,512 job losses recorded in March.
Job cuts have been blamed on the recession in advanced economies, particularly in the United States, that serve as major export markets of the Philippines.
Hardest hit are electronics exporters, which saw a drastic slide in global demand for their products. Analysts said that, in tough times, it was natural for households to focus spending only on essentials.
Because electronics is the country’s major export product, accounting for about 60 percent of total, anemic global demand for these items dragged down the country’s export revenue. Exports have been falling by double-digit figures since late last year.
But Arroyo said job cuts in the electronics sector would soon end. He cited a report by the US-based Semiconductors Industry Association that sales of semiconductors inched up a bit to $14.7 billion in March from $14.2 billion in February.
As far as overseas employment is concerned, Arroyo said, prospects were also improving. He said projections of declines in remittances—due to layoffs in advanced economies—were exaggerated given that job opportunities were opening in other offshore labor markets.
source: www.inquirer.net
