Industries’ earnings slow, but jobs, compensation continue rise
Major industries posted a slower revenue increase of 6.5 percent in the second quarter, no thanks to delays in the budget approval that led to government underspending and stumped economic growth.
The growth in the gross revenue index between April and June was below the 9.6-percent expansion a year ago, the Philippine Statistics Authority (PSA) said in a report Thursday.
The finance and trade sectors posted the fastest increases in gross revenues during the second quarter, at 12.6 percent and 12.5 percent, respectively.
Revenues of electricity, gas and water supply firms rose 10.1 percent; real estate, up 9.1 percent; other services, 6.2 percent; transportation, storage and communication, 5.8 percent; mining and quarrying, 4.2 percent; and manufacturing, 2.4 percent.
To recall, second-quarter gross domestic product (GDP) growth slowed to 5.5 percent, an over four-year low, as the government underspent P1 billion a day on public goods and services due to the late implementation of this year’s P3.7-trillion national budget after legislators squabbled over alleged “pork” funds.
While industries’ revenue growth slowed, they hired more people and increased workers’ pay in the second quarter, PSA data showed.
The employment index inched up 1.9 percent during the April to June period, faster than 1.3 percent a year ago.
Manufacturing jobs grew 5.4 percent; real estate, up 5 percent; transportation, storage and communication, 4.4 percent; mining and quarrying, 4.1 percent; trade, 2.2 percent; electricity, gas and water supply, 1.3 percent; and finance, 0.7 percent.
However, other services and construction companies shed jobs by 0.1 percent and 2 percent, respectively, as public construction projects screeched to a halt due to the ban ahead of the May 13 midterm polls and the lack of budget to roll out government infrastructure projects.
Meanwhile, the compensation index climbed 4.7 percent in the second quarter, also faster than the 3.7 percent recorded last year.
Compensation in the electricity, gas and water supply sector jumped 10.9 percent; mining and quarrying, 8.1 percent; manufacturing, 7.1 percent; trade, 5.8 percent; transportation, storage and communication, 4.8 percent; real estate, 4.4 percent; other services, 3.8 percent; and finance, 1.9 percent.
On the other hand, salaries in the construction sector registered a 0.1-percent contraction during the April to June period.
Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.