Separation outpaces hiring, survey of large firms shows

EMPLOYMENT IN large Metro Manila enterprises declined in the second quarter from the previous year, reflecting the economy’s sluggish growth, according to the Bureau of Labor and Employment Statistics (BLES).

Employment fell by 2.05%, the difference between the 8.6% hiring rate and the 10.65% separation rate in the second quarter. In other words, the number of workers who resigned or were terminated from their jobs was higher than the number of those who got hired.

The figures suggest a reduction of 21 workers per 1,000 employed persons, the BLES said in a report. This was a reversal of the 2.86% employment expansion in the second quarter of 2010.

“This occurred as the domestic economy — measured in terms of gross domestic product or GDP — slowed down considerably to 3.4% in the second quarter from the robust 8.9% growth in 2010,” the BLES added.

Vicente R. Leogardo, Jr. director-general of the Employers Confederation of the Philippines, said that when employment in large enterprises falls, the quality of available jobs deteriorates, as a bulk of quality jobs offered to the labor force comes from these companies.

The BLES reported that there were more workers who resigned in the second quarter (6.67%) than those who were terminated by their employers (3.98%).

Mr. Leogardo said employers wanted to retain their skilled manpower.

Real estate, renting and business activities had the highest rate of resignation at 9.43%, resulting in an employment rate of -6.4%.

Employment also shrank in private education (-2.1%); fishing (-1.79%); and other community, social and personal service activities (-1%).

Meanwhile, employment grew in mining and quarrying by 5.92% and in the hotel and restaurant industry by 4.5%.

Other sectors recording higher employment were manufacturing (2.59%); financial intermediation (2.56%); wholesale and retail trade (2.08%); construction (1.76%); agriculture, hunting and forestry (1.25%); health and social work (0.86%); electricity, gas and water (0.63%); and transport, storage and communications (0.37%).

According to the report, more employers hired to expand their work force rather than to replace workers.

Data came from a survey of 700 large enterprises in Metro Manila. — Mariae Francesca C. Ramos, Businessworld