Employment growth more sluggish in third quarter of 2018

MANILA, Philippines — Employment growth in establishments nationwide grew at a slower pace in the third quarter of last year as more separations were seen in the agriculture and industry sectors, the Philippine Statistics Authority (PSA) reported.

The latest labor turnover statistics showed a labor turnover rate of 0.9 percent in the third quarter of 2018, slower than the turnover rate of 1.7 percent in the second quarter of last year.

The labor turnover rate is the difference between the accession rate (hiring rate) and separation rate.

In the third quarter, accessions still outpaced separations at 9.5 percent versus 8.6 percent.

Compared with the previous quarter, hiring grew at a more robust 11 percent compared with separations at 9.3 percent.

The third quarter turnover figures estimate that for every 1,000 employed, 95 were hired for business expansions or replacement of separated workers while 86 were either laid off or quit their jobs.

Employment growth was sustained in the services sector as seen in the positive turnover rate of 1.3 percent. Accession and separation rates in this sector was recorded at 8.9 percent and 7.5 percent, respectively.

Across industries in this sector, significant growth in hiring were seen in private education, wholesale and retail trade, repair of motor vehicles, financial and insurance activities, as well as arts, entertainment and recreation.

Negative turnover rates, meanwhile, were registered for the agriculture and industry sectors indicating declines in employment growth.

The agriculture, forestry, and fishing sector posted a turnover rate of negative 0.4 percent as separations at 4.7 percent outpaced accessions at 4.3 percent.

Employment growth in the industry sector was registered at negative 0.1 percent as separations at 12.2 percent also outpaced hirings at 12.1 percent. Employment loss in this sector was mostly seen in construction.

The quarterly Labor Turnover Survey is a measure of labor demand and is meant to help policymakers analyze the labor market situation in the country.