Local firms to hire more workers

MANILA, Philippines - Local firms will continue hiring more workers in the second quarter as economic conditions remain favorable, according to a Bangko Sentral ng Pilipinas (BSP) survey.

“The employment outlook index for the next quarter remained steady at 23.3 percent from 23.6 percent last year, indicating sustained favorable economic conditions,” the central bank said.

Teresita B. Deveza, Deputy Director at the BSP’s Department of Economic Statistics, explained that despite a slight moderation, a positive index indicates businesses will continue to hire more.

“It just means that employment generation will increase,” she continued.

The latest Business Expectations Survey showed the employment outlook of firms in the services and construction sectors improved, while those in the industry sector was steady.

The outlook of businesses in the wholesale and retail trade sector, meanwhile, declined for the next quarter.

“Another indicator providing support to expectations of sustained growth in the current quarter is the percentage of businesses with expansion plans in the industry sector,” the central bank said.

This went up to 32.9 percent for the second quarter from 30.5 percent in the previous quarter.

“Across  sub-sectors, firms in mining and quarrying recorded the strongest expansion plans, followed by those in the electricity, gas and water, agriculture, fishery and forestry and manufacturing sub-sectors,” the BSP said.

Deveza noted expansion plans pertain to infusion of additional capital, bigger offices or factories, and so on.

The business confidence index dropped to 37.8 percent in the first quarter from 52.4 percent in the last quarter of 2013, the lowest level seen in two and a half years.