JOB AVAILABILITY INDEX: Slow recovery tempers growth in postings

GROWTH in online job postings slowed to a three-month low in May amid sluggish global recovery that has dampened the service sector’s prospects.

The Job Availability Index — a statistical measure using the total monthly job placements at Jobstreet.com with January 2007 as base year — rose by 24.3%, or 47.3 index points to 241.6 in May, from 194.3 the previous year.

The May number was lower than April’s 56% and February’s 32.2% growth, suggesting easing labor demand.

The weak results came despite a recovery in manufacturing jobs, which climbed by 38.3%, reversing last year’s 38.4% loss.

Manufacturing, which accounted for just 8.1% of total jobs available posted online, drove the industrial sector’s growth to 30.5% last month, faster than April’s 29.1% and a turnaround from last year’s 30.6% loss.

But growth in available jobs in the service sector, which accounted for the largest share in total job postings at 88.4% or about 15,000, thinned to just 24.7%, from 62% in April and 50.9% in May last year.

In particular, private service firms, which cover media, hospitality, education, medical services, and business process outsourcing (BPO), saw a 20.1% growth in jobs available in May, a marked slowdown from April’s 68.2% and last year’s 113.7%.

Raul V. Fabella, professor at the University of the Philippines School of Economics, said the sector, largely dollar-based, remains reliant on how clients will fare against a backdrop of seemingly snail-paced global recovery.

“It (service sector) is not growing but its share of new jobs is very large. The dollar-based industries haven’t recovered because their clients haven’t recovered either,” Mr. Fabella said.

There were 16,978 positions announced vacant via the Internet in May, up from 15,275 last April, according to Jobstreet data.

Job growth in real estate firms eased to 51.8% from 92% in April, though a turnaround from last year’s -55.6%.

Financial companies needed 26% more jobs in May, recovering from last year’s 17.3% slump.

Trade as well as transportation and communication firms saved the sector, with jobs up by 42% and 81.5%, respectively.

Apart from gaining help from manufacturing, the industry sector was supported by job openings in electricity, gas and water companies with growth at 360%. Annual declines in mining and quarrying moderated.

Still, manufacturing’s feat was modest, an industry official said.

“We’re just recovering,” Donald G. Dee, vice-chairman and treasurer of the Philippine Chamber of Commerce and Industries (PCCI), said in a phone interview.

“Because of the financial crisis the growth is high, but we have to note that the base is low.”

The agriculture sector, meanwhile, saw a gain of 4.5%, clawing back from last year’s 4.3% fall.

Mr. Fabella said job growth in the agriculture sector was sluggish because of the drought. — ASOA