Job growth in large Metro Manila enterprises remained positive in the second quarter of 2016 amid expansion of business activities, according to the Philippine Statistics Authority (PSA).
Results from the PSA’s latest labor turnover survey showed that the improvements were observed as gains in the agriculture and services sectors offset a decline posted in the industry sector.
PSA data showed that for the three months ending June, the labor turnover rate—or the difference between jobs gained and jobs lost—reached 2.3 percent.
Employment growth continued to be positive, rising from flat levels in previous quarters and twice as fast as a year ago. Turnover was pegged at 0.96 percent in the first quarter of 2016 and 1.15 percent in the second quarter of 2015.
Hiring, separation rate
This meant that for every 1,000 enterprise workers in the National Capital Region (NCR), 124 new hires joined but 101 quit or were fired. In total, a net of 23 people were added during the three months to June.
The hiring rate was recorded at 12.4 percent while the separation rate was 10.1 percent.
Overall, employment in the agriculture sector grew by 4.6 percent and services sector by 2.9 percent, while the industry sector deteriorated by 2.1 percent.
Employment gains in the agriculture sector were more than “quadruple of the labor turnover rate (1.02 percent) registered in the same period last year,” the PSA said.
Labor turnover rates were also high in education (6.1 percent); finance and insurance (5.1 percent); and information and communication (4.5 pecent).
On the other hand, employment losses were observed in construction (-8.4 percent); electricity, gas, steam and air conditioning (1.2 percent); and real estate activities (-0.4 percent).
Other industries that showed gains were “other” services (4.4 percent); mining and quarrying (3.4 percent); and wholesale and retail (3.1 percent).
Also showing strong gains were transportation and storage (2.9 percent); accommodation and food service (2.5 percent); administrative and support service (2.4 percent); and human health and social work (2.2 percent).
Due to expansion
Showing lesser improvement in turnover rates were manufacturing; water supply and waste water management; professional, scientific and technical activities; and arts, entertainment and recreation.
The PSA observed that large enterprises in 12 out of 18 industry groups took in new employees more because of business expansion than because of the need to replace those who were let go.
“This was most apparent in administrative and support service activities where the hiring growth rate due to expansion was 15 percent compared to 2 percent due to replacement,” the PSA said.
It also added 10 industries posted more replacements than expansion. “Among these, significant percentage point differences were registered in education; wholesale and retail trade; and accommodation and food service.”
Job losses
The PSA said employee-initiated separations accounted for most of the employment losses while the rest were due to terminations or employer-initiated.
“Construction industry registered the highest separation rate at 17.1 percent,” the PSA said. “This consisted mainly of employer-initiated separations at 9.6 percent.”
High rates in job losses were also seen in administrative and support service activities (14.7 percent) and accommodation and food service (14 percent).
The data is part of the PSA’s survey of 1,232 large corporations in NCR, which were drawn from the agency’s 2015 List of Enterprises.