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Turnover rate of jobs in M. Manila barely even

In Q1, slump in services sector led to employment slowdown


The turnover rate of jobs in Metro Manila’s top enterprises registered “an essentially flat” growth in the first quarter of 2013 at -0.02 percent year-on-year.

The Bureau of Labor and Employment Statistics (BLES) said in a report that the turnover rate—or the difference between jobs gained and jobs lost—went negative for the first time since the second quarter of 2011.

BLES data showed that, for every 1,000 enterprise workers in the National Capital Region, not one person was added during the three months to March.

For every such group, 75 new hires joined but an equal number had quit or were fired.

The hiring rate was recorded at 7.49 percent while the separation rate came in at 7.51 percent.

“The employment slowdown this period was due primarily to the slump in the services sector—whose employment comprises the bulk of the total in the  region. [That development] canceled out the gains in agriculture and industry,” the BLES said.

Among the 18 industries covered, businesses engaged in construction posted the best labor turnover rate in the first quarter at 7.46 percent. Mining and quarrying came in next at 7.09 percent), while water supply, sewerage and waste management registered a turnover rate of 4.68 percent.

On the other hand, the arts, entertainment and recreation sector registered the worst turnover rate at 3.77 percent. Wholesale and retail trade came in next with 1.75 percent, while accommodation and food posteds a rate of 1.69 percent.

“This can be attributed to the seasonal slack or slowdown in retail trade and tourism during the first quarter of the year that is often associated with less hiring and more separation or termination of workers—particularly during the month of January,” the BLES said in its report.

Other sectors covered by the study were human health and social work activities; manufacturing; agriculture, forestry and fishing; electricity, gas, steam and air conditioning supply; information and communication; real estate activities; finance and insurance activities; transportation and storage; professional, scientific and technical activities; “other service activities;” education; and administrative and support services.

In the first quarter, the BLES observed that the people who were fired outnumbered those who had quit.

Termination was most pronounced in the subsectors of arts, entertainment and recreation; mining and quarrying; and wholesale and retail trade.

Quitting was most prevalent in real estate, “other service activities,” and transportation and storage.

Based on the survey, large enterprises in 11 of 18 sub-sectors took in more new employees because of the need to replace those who were let go rather than due to business expansion.

The data is part of the BLES survey of 700 large corporations in NCR, which were drawn from the 2011 edition of the Securities and Exchange Commission’s list of “top 25,000 corporations.”

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Tags: Business , job turnover rate , Metro Manila

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