Unemployment and underemployment worsen in April

18 June 2008 – In the April 2008 Labor Force Survey released by the National Statistics Office, the unemployment rate, or the proportion of persons without a job or business and who are actively looking for work, reached 8%, higher than the 7.4% posted in the April 2007 labor survey. Meanwhile, the underemployment rate, the proportion of persons seeking additional work hours in their present job or an additional job, rose to 19.8% from the 18.9% recorded the previous year.

The services sector absorbed 49.6%, or 16,634,000, of the total 33,536,000 employed persons, while 35.5%, or 11,905,000 employed persons, were in the agriculture sector. The two sectors increased employment by a few thousands, but this was offset by the significant drop of employment in the industry sector. In the April 2007 labor survey, the industry sector employed 5,258,000 workers; this was reduced to 4,997,000, or a drop of 261,000, in the April 2008 survey.

The National Capital Region posted the lowest employment rate at 86.2%, while the Autonomous Region of Muslim Mindanao and the Zamboanga Peninsula registered the highest employment rates at 97% and 96.6%, respectively.

The last survey period where the Philippine recorded an 8% unemployment rate was in July 2006.

Workers granted tax relief

17 June 2008 – President Gloria Macapagal-Arroyo today signed Republic Act No. 9504, which provides a new tax relief package for all income earners. The highlight of the newly signed law is a provision that exempts minimum-wage earners, from both the private and public sectors, from paying income tax. It also exempts minimum-wage earners from having to file income tax returns and pay income tax for other benefits received, such as holiday, overtime, night-shift differential, and hazard pays.

In addition, RA 9504 eliminated the old bracketing system for personal exemptions, which had specified tax exemptions of P20,000, P25,000, and P32,000 for taxpayers classified as single, the head of the family, or married, respectively. Under the new law, a basic personal exemption of P50,000 is now given to individual taxpayers regardless of status. It also increases the additional exemption for dependents from P8,000 to P25,000 per dependent, up to a maximum of four dependents.

Senator Manuel Roxas, the principal author of the law, said that the tax exemptions would provide an additional take-home pay of P750 a month for minimum-wage earners.

Meanwhile, Finance Secretary Margarito Teves placed the foregone revenue from the tax exemption of minimum-wage earners at P3.16 billion and the personal exemptions of medium-income earners at P11.1 billion, for a total of P14.2 billion in forgone revenues per year. The Department of Finance hopes to recover the revenue losses from the optional standard deduction scheme, which is expected to generate P15.03 billion in revenues per year.

Overseas Filipinos’ remittances hit $5.4 billion in January–April

13 June 2008 – The Bangko Sentral ng Pilipinas has released its latest official report on remittances from overseas Filipinos coursed through banks in the first four months of the year. From January to April, total remittances reached $5.36 billion, 14.5% higher than the year-ago level. In April alone, Filipinos abroad sent back $1.41 billion, or 32.6% higher than the amount remitted in April 2007.

The BSP attributed the positive growth in overseas Filipinos’ remittances to the continued increase in the number of Filipino workers being deployed abroad every month. Preliminary data of the Philippine Overseas Employment Administration show that in January to April the number of deployed Filipino workers grew by 14% to 399,638 from 350,520 a year ago. In addition to this, domestic banks were able to facilitate financial transactions with overseas Filipinos more smoothly and quickly because of the banks’ expanded financial services and tie-ups with foreign financial institutions.

Majority of the remittances continued to come from the US, Saudi Arabia, UK, Italy, the United Arab Emirates, Canada, Japan, Singapore, and Hong Kong.

Big firms urged to grant non-wage benefits

21 April 2008 – The Department of Labor and Employment has announced that it is not possible to order an increase in wages by 1 May, Labor Day, despite workers’ growing clamor for a wage hike. The government, however, is asking private corporations to help protect their workers from the effects of rising food and fuel prices through non-wage benefits.

In a recent statement, President Gloria Macapagal-Arroyo called on big companies, such as telecommunications companies and oil firms, to consider providing their employees such non-wage benefits as rice, canned goods, and shuttle service, among others. She added that the government is working with civic groups and the church in making subsidized rice available to the poor, even as it is hunting down rice hoarders and price manipulators who are taking advantage of the situation.

Meanwhile, Labor Undersecretary Romeo Lagman said that they are preparing a package of benefits for workers to be unveiled on Labor Day to help workers cope with inflation, as a wage hike is not a possibility at present.

OFW remittances in Jan-Nov hit US$13.1B

15 January 2008 – Overseas Filipino workers' remittances coursed through banks from January to November 2007 reached US$13.1 billion, 14.1% higher than in the same period in 2006. This is just US$1 billion short of achieving the US$14.1 billion target for 2007. The Bangko Sentral ng Pilipinas is optimistic that the target will be achieved since the average monthly inflow of remittances is US$1.2 billion.

The strong remittance inflow is attributed to the continued rise of Filipino workers being deployed abroad. Preliminary data from the Philippine Overseas Employment Administration show that the deployment figure in November rose 7.7% to 81,530, the fifth consecutive month that deployment increased. Aside from this, the surge of remittances is also being attributed to the increase in the number of remittance centers abroad.

Majority of the remittance flows came from the U.S., U.K., United Arab Emirates, Saudi Arabia, Canada, Singapore, Japan, and Hong Kong.

Employment rate at 92.2% – Labor Force Survey

14 September 2007 – According to the results of the July 2007 Labor Force Survey released by the National Statistics Office, the country’s employment rate stood at 92.2% in July, which is just 0.3% higher than the rate a year ago.

Of the estimated 56.9 million Filipinos aged 15 years and older, 36.2 million (63.6%) were in the labor force in July. From this labor force, an estimated 33.3 million were employed, of which half (48.9%) were in the services sector, 34.5% in agriculture, and 15.6% in industry.

An examination of the class of workers that were employed reveals that 17.7 million (53.1%) were wage and salary workers, 11.9 million (35.6%) were earning from their own account, and 3.7 million (11.2%) were unpaid family workers. Compared to last year’s profile, there are more wage earners and self-employed workers this year, while the number of unpaid family workers dropped by about 53,082 workers.

The July survey also showed that the ranks of the unemployed reached 2.8 million, posting a 7.8% unemployment rate, down from 8.1% a year ago. There was also a drop in underemployment to 7.3 million Filipinos from 7.7 million in July last year. Most of the underemployed came from the agriculture (44.4%) and services (40.3%) sectors. According to the National Economic Development Authority, the reduction in underemployment could be attributed to the recovery of the construction, mining, and utilities industries.

NEDA also noted the large number of unemployed youth. More than half (51.1%) of the unemployed were in the 15 to 24 age bracket. The government is planning to draw up employment programs, such as the reintroduction of vocational education even in high school, to address this growing concern.

The NSO’s definition of the unemployed covers all persons aged 15 years and over who are reported as currently available for work but are without work. This includes not only those who are seeking employment but also those who are not looking for work because they are either waiting for rehire, awaiting results of a job application, tired, temporarily ill or disabled, believe no work is available, or prevented by bad weather.

OFW remittances hit US$8.1B in January-July

14 September 2007 – In January to July, overseas Filipino workers remitted back to the country US$8.1 billion, US$1.1 billion higher than the US$7.0 billion recorded in the same period last year. In July alone, remittances coursed through banks reached US$1.1 billion, 4.6% higher than a year ago.

OFWs’ easier and cheaper access to financial services, as well as banks’ strategic marketing of their remittance services in other countries, has led to the sustained growth in remittances.

The bulk of remittances in July came from the U.S., Italy, United Arab Emirates, Saudi Arabia, Canada, Japan, and Hong Kong.

Medical transcription industry unable to sustain growth

7 September 2007 – According to MxSecure Inc., a U.S.-based medical transcription services firm, the Philippine medical transcription industry failed to sustain its above-50% growth posted in 2004 due to the mediocre accuracy and productivity of local transcriptionists.

MxSecure outsources to the Philippines around 82% of its six million lines of medical-transcription documents per month. It revealed that in terms of accuracy, a Filipino transcriptionist averages only about 90% to 92%, way below the 98% minimum standard.

In India, an entry-level transcriptionist produces about 1,500 lines per day. In the Philippines, transcriptionists yield an average of only 300 to 400 lines a day. In terms of turnaround time or completion, it sometimes takes up to 72 hours in the Philippines. MxSecure normally promises its customers a 24-hour turnaround time.

With U.S. spending on medical transcription seen to double to US$4.3 billion in 2008 from the 2007 estimate of US$2.3 billion, it is critical that the local transcription industry takes steps to improve Filipino transcriptionists’ English skills and productivity.

OFW remittances reach US$7 billion
in H1

15 August 2007 – Filipino workers abroad remitted to the country a total of US$7.03 billion in the first half of 2007, as OFWs sent back US$1.2 billion in June, sustaining the level of remittances at over US$1 billion a month. The January–June figure marks an 18.05% increase from the US$5.9 billion worth of remittances in the same period last year.

Preliminary data from the Philippine Overseas Employment Administration show that total OFW deployment in the first half declined by 5.1% to 546,212 workers from 575,565 a year ago. Despite this drop in the deployment figure, there was no slowdown in the flow of remittances. The Bangko Sentral ng Pilipinas attributed this mainly to technological innovations introduced by financial institutions serving as conduits for money transfers and deliveries.

At present, the major sources of remittances are OFWs in the U.S., Canada, the U.K., United Arab Emirates, Italy, Japan, and Hong Kong.

NCR workers get P12
minimum-wage hike

6 August 2007 – The Regional Tripartite Wages and Productivity Board of the National Capital Region has approved a P12 hike in the minimum wage of private-sector workers in Metro Manila.

From P350 per day, the new minimum wage for non-agriculture workers in the capital region will be P362, which includes the existing P50 cost of living allowance.

Meanwhile, minimum-wage earners in the agriculture sector, in private hospitals with a bed capacity of 100 or less, in retail/services stores employing 15 workers or less, and in manufacturing establishments regularly employing less than 10 workers will see an increase in their daily pay to P325 from P313.

The wage order will take effect 15 days after its publication in a newspaper of general circulation.

OFW remittances hit US$3.5B in Q1

15 May 2007 – Remittances coursed through banks by overseas Filipino workers in the first quarter of the year reached US$3.5 billion. This was achieved after inflows in March reached US$1.3 billion, 26.4% higher than a year ago and marking the 11th straight month that remittances have hit the US$1 billion mark.

The Bangko Sentral ng Pilipinas attributes the sustained growth of OFW remittances to the innovative remittance schemes offered by banks and financial institutions, as well as to the enhanced partnerships and networks between local banks and their foreign counterparts.

Majority of the remittances in the first quarter came from the U.S., Canada, the U.K., Italy, Saudi Arabia, United Arab Emirates, Japan, and Hong Kong.

Production cost to increase with wage hikes – NSCB

8 May 2007 – The National Statistical Coordination Board expects the cost of production to increase in the next two years if wage hikes for government and private workers are implemented starting this year. These wage hikes include the approved 10% salary increase for government workers starting 1 July and the possible implementation of the proposed P125 across-the-board increase for private workers, starting with a P40 hike in October and another P40 increase in October 2008.

Based on a price cost analysis conducted by the NSCB, wage adjustments would lead to an increase in production cost by 5.6% in 2007 (0.6% for agriculture, fisheries, and forestry; 2.7% for industry; and 2.3% for the services sectors).

In 2008, it is projected that production cost will increase by an average of 4.3% (0.5% for agriculture, fisheries, and forestry; 2.2% for industry; and 1.6% for the services sectors).

9 million job vacancies for Filipino workers until 2010

26 April 2007 – The Department of Labor and Employment projects that some four million job vacancies in the country will have to be filled between 2006 and 2010, while about five million overseas job offers will also be available to Filipinos in the same period. In view of this, the labor department concluded that there is actually no shortage of jobs for Filipinos, but rather a mismatch between workers’ skills and the labor market’s requirements.

As of January, a total of 36.4 million workers were registered with the labor department. Of this total, 2.8 million (or 7.8%) were unemployed.

Labor Secretary Arturo Brion explains that the skills and education of the workforce are not a good fit for the types of jobs being generated. One example cited by Brion is the mining sector, where many hard-to-fill jobs are found, such as geologists, mining engineers, and metallurgical engineers.

The department is recommending an immediate re-examination of policies and standards in various course curricula to ensure the delivery of quality education and training of the country’s manpower.

OFW remittances sustain US$1B level for 10 consecutive months

16 April 2007– Remittances sent by Filipino workers abroad reached US$1.1 billion in February, expanding 25.4% from a year ago and marking the 10th consecutive month that money from OFWs has hit the US$1 billion level. This brought the year-to-date level of OFW remittances to US$2.2 billion, 22.6% higher than the previous record of US$1.8 billion.

Despite the Philippine Overseas Employment Administration’s report of a 12% decline in total employment in the first two months of 2007, remittances remained strong because of the enhanced and efficient service of banks and financial intermediaries in facilitating their delivery back to the Philippines. The changing profile of OFWs—increasingly more highly skilled and better-paid—also accounts for the increased level of remittances. Remittances coursed through banks are expected to grow 10% to US$14.0 billion this year.

Close to 50% of remittances came from the U.S. Other major sources of remittances are Canada, the U.K., Italy, Saudi Arabia, UAE, Japan, Hong Kong, and Singapore.

Only one workers strike from January to mid-March

21 March 2007 – According to the National Conciliation and Mediation Board, only one workers strike occurred from January to mid-March, an 80% decline from the five strikes reported in the same period last year. The lone reported strike occurred in the CALABARZON region in January.

Labor Secretary Arturo Brion attributes the reduction in labor unrest to the growing maturity of the labor and management sectors in settling disputes. Together with the NCMB and the labor department, the National Labor Relations Commission carries out programs to prevent plant-level disputes from escalating into strikes and lockouts.

January 2007 employment rate at 92.2%

15 March 2007 – The National Statistics Office released today the January 2007 Labor Force Survey, which shows the employment rate rising to 92.2% in January from 91.9% in January 2006. The total employed population in January this year reached 33.5 million, up 4.7% from 32.0 million a year ago.

The unemployment rate, in turn, fell to 7.8% from 8.1% in January last year. Although the ranks of the unemployed still increased to 2.85 million from 2.83 million, the total labor force also grew and by a larger degree. The NSO reported a 4.3% growth in labor force to 35.4 million in January from 34.8 million workers a year ago.

The agriculture sector remains the top absorber of workers, employing 11.6 million. However, it is also the only sector that experienced a drop in employment, with its share of the total employed population falling to 34.7% in January from 36.5% a year ago. The growing services sector absorbed 1.3 million more employees, posting an 8.1% increase in labor absorption. The industry sector employed 4.9 million as of January, a 1.7% increase from the 4.8 million employed in January 2006.

The NSO used the 2000 Census of Population and Housing as the new base population for the January 2007 survey and retabulated the January 2006 statistics to accurately determine one-year growth rates.

OFW remittances exceed US$1B
in January

15 March 2007 – Overseas Filipino workers’ remittances coursed through banks hit US$1.1 billion in January, 20% higher than the US$917 million recorded a year ago. This is the ninth consecutive month that remittances have exceeded the US$1-billion mark.

The Bangko Sentral ng Pilipinas attributes the heavy remittance flow to the aggressive marketing efforts of banks and money transfer operators that provide easy and reliable money transfer services.

The BSP expects remittances to climb to a record $14.7 billion in 2007, of which about 90% is expected to be coursed through these formal channels.

One-stop assistance center for
OFWs inaugurated

12 March 2007 – The world’s first one-stop shop for migrant workers, the National Reintegration Center, was inaugurated today. Housed at the old Overseas Workers Welfare Administration building in Intramuros, Manila, the center was set up by the government to assist overseas Filipino workers and their families.

The P7-million facility will provide OFWs with job search assistance for local and overseas employment, training programs for enterprise development and financial management, and pyscho-social services. The center also aims to introduce workers to special retirement programs and remittance packages. It will operate under the Office of the Labor Secretary.

DOLE stands firm on new policy for domestic workers’ deployment

29 January 2007 – A day after 5,000 Filipino domestic helpers in Hong Kong staged a protest march against the Philippine government’s new prequalification requirements for the overseas deployment of domestic workers, the Department of Labor and Employment reiterated its stand to implement the new policy to enhance the protection and welfare of domestic helpers abroad.

The new policy, introduced by the Philippine Overseas Employment Administration last 16 December, requires domestic workers to undergo a skills and language training course before leaving the country. It also sets a minimum age requirement of 25, a higher minimum wage of US$400 per month, and bans placement fees from agencies.

Economic managers, wage boards warn against legislated wage hike

22 January 2007 – Finance Sec. Margarito Teves said that the government’s economic managers oppose the idea of a legislated wage hike, and that they would suggest other alternatives such as wage adjustments through regional wage boards and tax exemptions to minimum-wage earners.

Five regional wage boards from regions 1, 4-B, 7, 10, and Caraga also appealed to lawmakers to allow them to do their jobs (the wage boards were created in 1989 precisely to take on the task of minimum-wage setting at the regional level). The wage board from Region 4-B pointed out that their region has not yet recovered from the destruction brought about by the recent super typhoons. It echoed the sentiment of the Region 1 wage board that a legislated wage hike would affect the economies of the different regions by displacing workers from the formal sector.

The Department of Labor and Employment reported that in the first half of 2006, 27,935 Filipinos lost their jobs, mainly due to businesses’ financial difficulties, the high cost of raw materials, and the lack of markets. The National Economic and Development Authority estimates that 1.16 million workers will lose their jobs if the legislated three-year wage hike is signed into law.

Palace says no to wage hikes not determined by wage boards

9 January 2007 – According to Press Secretary Ignacio Bunye, Malacañang will not support House Bill 345, which mandates a P125 across-the-board wage hike for all private-sector workers. Business groups are questioning the House-approved bill, pointing out that it undermines the collective bargaining agreement process and the role of regional wage boards in setting minimum-wage standards, among other reasons.

Bunye said that President Gloria Macapagal-Arroyo believes that wage increases are best decided by regional wage boards in order to strike a balance between promoting workers’ welfare and keeping enterprises viable. The Arroyo administration, he said, has been urging the tripartite wage boards of different regions to set wage increases, which, in some cases, have already been implemented.

Business groups opposed to P125 legislated wage hike

8 January 2007 – Various business organizations, including the Makati Business Club, have expressed their opposition to House Bill 345, which mandates a P125 across-the-board wage hike. Business groups have also made it known that they are also not in favor of the Senate’s alternative proposal of a P100 wage hike.

Businessmen assert that these initiatives in Congress will only lead to downsizing and the closure of establishments due to the burden of the added labor cost, resulting in the displacement of workers, increased unemployment and underemployment, and the rise of informal businesses and workers. The Department of Labor and Employment estimates that every P1.00 increase in wages translates to a P1.21 cash outlay for employers due to the add-ons that employers have to pay.

If the wage hike is implemented, business groups foresee a reduction in the country’s competitiveness as an investment site and an overall decrease in GDP growth. MBC Research estimates a 0.3% increase in the inflation rate in the first year of the wage hike implementation and additional 0.2% increases in the inflation rate in the succeeding two years.

So far, Malacañang has been a spectator watching from the sidelines, waiting for further developments before intervening in the wage hike issue. Earlier, however, the Palace expressed that it preferred that wage increases be handled and decided by the tripartite regional wage boards, given their knowledge of local economic conditions.

Strike incidence down 54% in Jan-Nov

8 December 2006 – The number of strikes from January to November fell 53.8%, with only 12 work stoppages registered in those 11 months, compared to 26 in the same period last year.

The lower strike incidence significantly brought down the work hours lost due to strikes to 46,134 from 109,579, as well as reduced the number of workers affected to 1,415 from 8,496. The Department of Labor and Employment attributed this development to the effective resolution of labor disputes at the plant level.

The 12 strikes were recorded in only three regions: Region III, Region IV-A, and NCR.

OFW remittances in January–September reach US$9.1B

15 November 2006 – Remittances of overseas Filipino workers continue to rise, reaching US$9.1 billion in the first nine months of the year and recording a year-on-year growth of 14.4%.

The Bangko Sentral in Pilipinas expects remittances to hit US$12.0 billion by yearend, 12% more than last year’s US$10.7 billion, assuming that the current volume of remittances is sustained.

The BSP credits the steady climb of money sent home by OFWs to the workers’ increasing access to efficient remittance modes and the continued deployment of Filipino workers around the world. OFW deployment from January to September climbed to 856,866 workers, or 9.6% higher than the 781,812 workers a year ago.

Nursing board exam passers take oath

30 October 2006 – Hundreds of nursing board exam passers took their oaths on 27 October, and 900 more today, after the Court of Appeals issued a ruling on 26 October allowing 17,323 passers to take their oaths before the Philippine Regulatory Commission. However, the court also ruled that 1,687 examinees who were believed to have benefited from the leakage of exam questions will have to retake Tests 3 and 5.

The decision was made after a marathon mediation and conciliation meeting between the officials of the appellate court, Labor Secretary Arturo Brion, PRC officials, and the Board of Nursing. The University of Santo Tomas College of Nursing, however, remains firm in its stand that all examinees should be made to retake the test.

Oath-taking of nursing board exam passers postponed

16 October 2006 – The Professional Regulation Commission today postponed the oath-taking of some 2,000 to 3,000 nurses who passed the nursing board exams. The oath-taking of the nurses, who today gathered at the PRC auditorium, was called off after the labor department said the decision of the Court of Appeals to allow the oath-taking is “not yet final and executory.”

On 13 October, the Court of Appeals decided for a selective retake of the June 2006 nursing licensure examinations, affecting 1,687 board passers suspected of having benefited from the leakage of test questions and answers. The PRC released the names of the individuals who need to retake tests 3 and 5 of the board exam.

The Court also ruled that most of the more than 17,000 board passers could take their oaths after their names were cleared from the cheating scandal. However, it added that any nurse’s license could be revoked if investigators are able to prove that the nurse benefited from the leakage.

OFW remittances reach the $1B level for the fourth consecutive month

13 October 2006 – The Bangko Sentral ng Pilipinas reported that overseas Filipino workers’ remittances reached US$8.10 billion in the first eight months, posting a 15.3% growth compared to the same period a year ago. The year has seen a sustained rise in remittances, which are expected to reach US$11.87 billion by yearend. In August, remittances hit US$1.09 billion, the fourth consecutive month that these reached the US$1 billion level.

The BSP attributed this high inflow of overseas worker’s funds to foreign employers’ continued preference for Filipino workers and to the enhanced efficiency in the delivery and marketing activities of commercial banks and private remittance agents.

Number of strikes drops 57% in January–August

20 September 2006 – The Department of Labor and Employment reports that the country has been strike- and lockout-free since Labor Secretary Arturo Brion assumed office two months ago.

From January to August, only nine strikes have been declared, 57% lower than the 21 strikes declared in the same period last year. The number of workers involved in strikes in the first eight months was also 88% lower than a year ago.

Unemployment worsens in July

19 September 2006 – The National Statistics Office released on 15 September the July 2006 Labor Force Survey, which revealed a 7.1% increase in the number of unemployed persons in July to an estimated 2.9 million from 2.7 million in July 2005.

On the other hand, in the same month, the number of employed persons also increased 2.3% to 33.3 million compared to 32.5 million a year ago, largely due to the high labor absorption in the services sector. Around 16.4 million persons were employed in the services sector, up 5.6% from 15.5 million last year. Meanwhile, employment in the industry sector posted a marginal increase of 0.2% only, hovering at the 5 million level, while employment in the agriculture sector actually decreased 1.24% to 11.8 million from 12 million.

The Department of Labor and Employment is still optimistic about the employment picture as it expects positive economic growth for the rest of the year. Acting DOLE Secretary Danilo Cruz identified several factors that the agency expects will boost employment in the coming months: the projected increase in agricultural output due to good weather conditions, the prevailing high demand for employees in the services sector, higher export receipts, and the expected recovery of the manufacturing sector due to the drop in petroleum prices.

OFW remittances up 15.4% to
US$6B in H1

15 August 2006 – Remittances from overseas Filipino workers rose 15.4% in the first semester of 2006 to US$6.0 billion from US$5.2 billion in the same period last year. Meanwhile, remittances in June reached US$1.1 billion, rising 18.1% year-on-year. The Bangko Sentral ng Pilipinas attributed the surge to the increasing demand for Filipino workers and the aggressive marketing efforts of commercial banks and private remittance agents.

According to the Philippine Overseas Employment Administration, total deployment in the first half grew 5.1% to 586,819 workers. Land-based deployment rose 2.4% to 447,591 workers, while sea-based deployment jumped 14.6% to 139,228 workers. The increasing demand for well-trained Filipino seafarers brought about the robust growth in deployment of sea-based workers.

BSP raises forecast for OFW remittances in 2006 to $11.7B

7 August 2006 – The higher-than-expected growth of overseas Filipino workers’ remittances in the first half of the year has prompted the Bangko Sentral ng Pilipinas to increase its forecast for total remittances for 2006 to US$11.87 billion, 11% higher than last year’s total. Originally, the BSP’s projection was a 10% increase to US$11.7 billion. In January to May, US$4.8 billion in remittances have been sent to the country, up 14.8% compared to the same period last year.

The BSP attributed the robust remittance figures to the aggressive marketing campaigns of banks, growth in sea-based deployment, and the hiring of more professionals and highly skilled workers. Apparently, these factors have been compensating for the decline in deployment brought about by stricter immigration policies.

OFW remittances in
January–May up 14.8%

17 July 2006 – Overseas Filipino workers sent home US$4.8 billion worth of remittances in the first five months of 2006, 14.8% higher than the US$4.2 billion remitted in the same period last year. Meanwhile, remittances in May was up 29.9% year-on-year at US$1.1 billion, the highest monthly total so far this year.

The growth is attributed to higher OFW deployment, which increased 1.7% to 564,920 in the first half of 2006. Of the total, 136,763 were sea-based workers, while 428,157 were land-based. Specifically, higher OFW rehiring rates in land-based industries and the increased demand for skilled Filipino seafarers were said to be responsible for the increase.

At the same time, banks’ aggressive promotional and advertising campaigns and more remittance centers and tie-ups abroad also continued to spur the increase in remittances. The recent link-up of the major automated teller machine networks Megalink, ExpressNet, and BancNet is also seen to have boosted OFW’s preference to send their remittances through commercial banks instead of informal channels.

Number of displaced workers up
60% in 2005

30 June 2006 – Based on termination reports from 2,537 employers gathered by the Department of Labor and Employment, the number of displaced employees in 2005 rose by 60% to 57,821 workers from 36,163 in 2004. In Metro Manila, retrenchments rose 66.3% to 31,852, accounting for 55.1% of the total.

By sector, the highest number of displaced workers was in manufacturing at 22,828, followed by the wholesale and retail trade industry at 8,533, and the transport, storage, and communications sector at 6,744.

The economic slowdown caused by soaring oil prices forced firms to close shop or undertake such adjustments as downsizing, reorganization, management changes, or mergers. Layoffs were also attributed to such demand-related factors as financial loss, slumping product demand, lack of capital, high production costs, lack of pricing competitiveness, currency fluctuations, tighter competition brought about by imports, lack of raw materials, and the increase in the minimum wage.

Metro Manila minimum-wage workers receive P25 wage hike

26 June 2006 – The National Capital Region wage board yesterday granted minimum-wage workers in the private sector a P25 increase in wages. Wage Order NCR-12 will take effect on 11 July.

The wage hike brings the daily nonagricultural minimum wage in Metro Manila to P350. Meanwhile, minimum-wage workers in agriculture, private hospitals with a bed capacity of 100 or less, retail/service establishments with 15 workers or less, and manufacturing establishments regularly employing less than 10 workers will also see their wages go up to P313.

The wage order will not apply to household helpers, persons in the personal service of another (including family drivers), and workers of registered Barangay Micro Business Enterprises with certificates of authority.

Growth of OFW remittances slows
to 0.3% in April

16 June 2006 – According to the Bangko Sentral ng Pilipinas, overseas Filipino workers’ remittances in April grew only 0.3% to US$898.5 million from US$895.5 million a year ago. This is the first time growth has been at single-digit levels since October 2004.

The BSP said the slowdown was a result of tighter immigration policies in Japan, the U.S., and the U.K.; tighter competition from the Indonesians, Indians, and Thais; and fewer deployed workers. According to the Philippine Overseas Employment Administration, the total number of deployed workers from January to April declined 2.7% to 359,402.

However, from January to April, remittances showed a 10.8% rise, climbing to US$3.7 billion from US$3.4 billion a year ago. The BSP attributed this to sustained aggressive marketing campaigns by local banks through client giveaways, better offered rates, increased visibility through product brochures, more efficient modes of money transfers, and increased remittance centers and tie-ups abroad.

More jobless Filipinos despite better employment rates in April

15 June 2006 – According to the National Statistics Office, the labor force grew 2.3% in April to 35.9 million from 35.1 million a year ago. Of this total, the ranks of the employed grew 2.5% to 33 million from 32.2 million last year, resulting in a slight improvement in the employment rate to 91.8% from 91.7% last year. The unemployment rate also fell to 8.2% from 8.3% last year, but in terms of headcount, the ranks of the unemployed actually rose 0.7% in April to 2.93 million from 2.91 million a year ago.

As of April, there were 803,000 new jobs created, 53.2% of which were in the agriculture, fishery, and forestry sector. This resulted in a 3.9% rise in agricultural employment to 11.4 million. The services sector also grew 2.4% to 16.4 million. On the other hand, the industry sector remained stagnant at 5.2 million.

Meanwhile, the number of wage and salary workers jumped 2.2% to 16.7 million as a result of the rise in service employment. However, the number of unpaid family workers, most of whom can be found in the agricultural sector, also increased 8.2% to 3.9 million from 3.6 million last year.

OFW remittances up 16.7% in Q1

15 May 2006 – Remittances of overseas Filipino workers for the first quarter rose by 16.7% to US$2.8 billion from US$2.4 billion last year. For March, remittances were registered at slightly above US$1 billion, 12% higher than last year’s US$892.4 million and the highest recorded since January 1998’s US$1.07 billion.

The Bangko Sentral ng Pilipinas attributed the level of remittances to enhanced banking services and the sustained deployment of overseas workers. The BSP said the strong peso in the first quarter also prompted OFWs to send more money to compensate for the weak dollar.

The Philippine Overseas Employment Administration put the total number of deployed workers for the first quarter at 267,985, 0.4% higher than last year’s 266,931. Sea-based workers increased by 10.8% to 68,320, but land-based workers declined 2.7% to 199,665. The decline in the number of land-based workers was offset, however, by the higher salaries of the highly skilled Filipino professionals working abroad, such as engineers, teachers, ship officers, pilots/aircraft officers, production-related workers, and service providers.

GMA announces
P40B non-wage benefits

2 May 2006 – President Gloria Macapagal-Arroyo marked this year’s Labor Day with a promise to deliver a P40 billion “non-wage” package of benefits for government and private workers. However, the wage increase that labor groups have been clamoring for was not included in the president’s announcement.

The promised package will include P11.6 billion to condone loan surcharges and penalties imposed by the Social Security System and Government Service and Insurance System; P20 billion to implement the Salary Standardization Law in the 2007 budget; P1 billion in savings for minimum-wage earners to be exempted from the income tax; P1.2 billion for the procurement service marts; P50 million in scholarships; P40 million for hospitalization support; P44 million for the health rehabilitation of overseas Filipino workers; P100 million to improve the services of the Philippine General Hospital; P40 million for the inclusion of the informal sector in the scope of Philhealth; P500 million for a work scholarship project for 100,000 call center, medical and legal transcription, software development, and animation workers; and P1.37 billion in loans for the procurement of shuttle buses for firms and government employees.

Meanwhile, Bangko Sentral recommended a P25 increase only in the minimum daily wage to avoid inflation and massive unemployment.

Demand for wage increase to take center stage on Labor Day

24 April 2006 – Workers will be pressing for a legislated P125 across-the-board minimum-wage increase on 1 May, as prices of basic goods and services are anticipated to rise after crude oil prices abroad recently shot up to a record-high of US$75 a barrel. Last year, regional wage boards granted increases ranging from P5 to P25 per day in either the basic minimum wage of cost-of-living allowance of workers in the private sector.

The militant labor group Kilusang Mayo Uno criticized President Gloria Macapagal-Arroyo for prioritizing the anti-terrorism bill instead of the long-delayed wage hike. It also downplayed the impact of the withholding tax exemption for minimum-wage earners.