Employers still cautious; online job growth slower

JOB AVAILABILITY INDEX

GROWTH in online job postings slowed in August from a year ago, still reflecting cautious employer sentiment.

The Job Availability Index’s statistical measure of monthly job placements at Jobstreet.com rose by 17.8% last month, slower than August 2009’s 78.6%.

A total of 21,189 job vacancies in 2,117 companies were announced online, higher than the 17,992 posted jobs during the same period last year, data from Jobstreet.com showed.

Growth in online job ads was dragged by the service sector, where job vacancies only rose by 14.1% to 18,802, a significant slowdown from last year’s 110.3%.

Companies in the service sector accounted for nearly 90% of total jobs posted on the Internet.

“I believe that the year-on-year slowdown is a consequence of the tremendous increase last year. In other words, there is a base effect,” said Cid L. Terosa, senior economist at the University of Asia and the Pacific.

Rene E. Ofreneo, professor at the University of the Philippines School of Labor and Industrial Relations, said the August results reflected the labor market’s wait-and-see attitude.

“The slowdown is an indication [that business environment] has become timid,” he said in a telephone interview.

Job opportunities in the service sector continued to be dominated by business process outsourcing (BPO) firms, which reported significantly increased vacancies at 6,812, a record.

“It (BPO postings) confirms our many surveys which say that almost all BPOs plan to expand at a faster rate this year than last [year],” said Gillian Joyce G. Virata, executive director for information and research of the Business Process Association of the Philippines (BPA/P).

Job opportunities were significant in the industry sector which, heavily influenced by electricity, gas and water, construction and manufacturing firms, needed 75.8% more workers in August.

“[There is] continued recovery in the industrial economic zones especially in eletronics and auto parts,” said Mr. Ofreneo.

Mr. Terosa meanwhile said: “The growth in the industrial and service sectors reflects the upbeat mood in these sectors as regards future economic and business prospects.”

Only agriculture was lackluster, with available jobs in this sector falling by 41.2% year on year, according to Jobstreet data.

“Agriculture posted a loss of 41.2% because of the lingering effects of the slowdown in the sector caused by El Niño,” Mr. Terosa said.

Mr. Ofreneo echoed the view, saying that “[the result] is an indication that there’s a problem in agricultural sector.”

Vicente Leogardo, director-general of Employers’ Confederation of the Philippines (ECoP), said growth in job availability was not consistent with the stronger-than-expected 7.9% economic growth in the first half.

“The number of jobs created as compared with the net increase in labor force is much lower,” Mr. Leogrado said.

“The economy is supposed to be growing,” he added.

Despite the modest annual numbers, last month’s 17.8% growth in jobs available was a turnaround from July’s 0.1% slump, which should point to favorable employment prospects, labor experts said.

“[The turnaround from July] reflects the positive outlook of businesses in the coming months,” Mr. Terosa said. — Karen Joyce Q. Ang, Businessworld