{"id":19686,"date":"2024-07-10T03:01:09","date_gmt":"2024-07-10T03:01:09","guid":{"rendered":"https:\/\/energybuzz.ph\/staging\/6915\/ncr-wage-hike-unlikely-to-hurt-economy-neda\/"},"modified":"2024-07-10T03:01:09","modified_gmt":"2024-07-10T03:01:09","slug":"ncr-wage-hike-unlikely-to-hurt-economy-neda","status":"publish","type":"post","link":"https:\/\/energybuzz.ph\/staging\/6915\/ncr-wage-hike-unlikely-to-hurt-economy-neda\/","title":{"rendered":"NCR wage hike unlikely to hurt economy \u2014 NEDA"},"content":{"rendered":"
\n

By Kyle Aristophere T. Atienza, <\/b><\/span>Reporter<\/i><\/p>\n

THE NATIONAL Economic and Development Authority (NEDA) on Tuesday said the wage hike in Metro Manila would have little-to-no impact on growth targets, adding that it could be of<\/span>fset by an investment-driven expansion of the economy.<\/p>\n

The P35 increase in the daily minimum wage of workers in the National Capital Region (NCR) would affect only about \u201cone-tenth of 1%\u201d of the Philippines\u2019 gross domestic product, NEDA Secretary Arsenio M. Balisacan said at a Palace brief<\/span>ing.<\/p>\n

\u201cOur estimates so far suggest that the national output or gross domestic product would be impacted negatively, but it\u2019s a very small impact,\u201d he said.<\/p>\n

The NCR wage board approved the hike, which will take e<\/span>f<\/span>fect on <\/span>July 17, days before President Ferdinand R. Marcos, Jr.\u2019s third <\/span>State of the Nation Address. This was made against the backdrop of labor groups\u2019 calls for a legislated wage <\/span>hike ranging from P100 to P750.<\/span><\/p>\n

The wage hike could affect 40,000 to 140,000 workers if small businesses end up closing shop or reducing their personnel Mr. Balisacan said, but added the number is \u201cnegligible.\u201d<\/p>\n

\u201cAs long as the economy is expanding because of other things like investments coming in, then the offsets would be there,\u201d he said. \u201cThe economy can still grow.\u201d<\/span><\/p>\n

The Philippines\u2019 GDP expanded by 5.7% in the first quarter, from 6.4% a year ago and 5.5% in the fourth quarter.<\/p>\n

But economists said it does not necessarily ref<\/span>lect the state of the Philippine economy, with Fitch Solutions\u2019 unit BMI citing the 4.6% drop in household spending, which was the slowest since the 4.8% drop in the f<\/span>irst quarter of 2021.<\/p>\n

\u201cWe do agree that the NCR wage hike will not impact on economic growth because the amount given is negligible at just 0.9% of Metro Manila establishments\u2019 profits and because the wage hike is barely adding to the purchasing power of worker families,\u201d said Jose Enrique \u201cSonny\u201d A. Africa, executive director of think tank IBON Foundation.<\/p>\n

\u201cGreater aggregate demand from wage hikes driving greater consumption spending is a more sustainable and reliable incentive for investments than a cheap labor regime,\u201d he said in a Facebook Messenger chat.<\/p>\n

Mr. Africa noted that only six regions issued wage orders this year. The last wage orders in 11 other regions were issued in September to December 2023.<\/p>\n

Mr. Balisacan said the growing economy would be able to provide alternative jobs for people who may be af<\/span>fected by any wage increase.<\/p>\n

\u201cNew jobs open up in the economy and our economy continues to grow at 6 to 7% this year so that we\u2019ll be accompanied by quite a lot of jobs,\u201d he noted.<\/p>\n

The jobless rate hit a four-month high of 4.1% in May from 4% in April as the size of the labor force expanded.<\/p>\n

Mr. Balisacan said the recent employment data should not be compared with April 2024 due to seasonality factors.<\/p>\n

Many of the 600,000 new jobs created in May were in manufacturing, industry, and services sectors, he noted.<\/p>\n

\u201cThe indicators of the quality of jobs also are encouraging,\u201d he added, noting that the underemployment rate or the number of people seeking additional jobs dropped to 9.9% in May from 11.7% a year ago. \u201cThat\u2019s very encouraging.\u201d<\/p>\n

But Mr. Africa said a number of new jobs created in May involve construction work, which is among the worst paying sectors with P540 average daily wage.<\/p>\n

\u201cThe majority of wage and salary work pays so poorly that simply being classified as wage and salary work is an unreliable indicator of the quality of work,\u201d he said.<\/p>\n

\u201cUnderemployment has traditionally been used as an indirect indicator of the quality of work but these days any decline may just mean that Filipinos have stopped looking for additional work rather than that they are already earning enough from the work they have,\u201d he added<\/span><\/p>\n

Labor Secretary Bienvenido E. Laguesma said at the same briefing that the agency conducted about 2,000 job fairs last year.<\/p>\n

He said DoLE will link workers affected by the wage hike to job opportunities. It will conduct reskilling and upskilling programs for them, he added.<\/p>\n

Meanwhie, Mr. Laguesma said that \u201cjob generation and job creation is actually the domain of the private sector.\u201d<\/p>\n

\u201cGovernment\u2019s responsibility is to be able to create an enabling environment conducive to business.\u201d<\/p>\n

Calls for wage hikes across the country have been renewed amid elevated inflation which averaged 3.5% in the first six months of the year.<\/p>\n

Inflation-adjusted wages were 17.5% to 24.6% lower than the current daily minimum wages across the country, according to a BusinessWorld<\/i> research. After accounting for inf<\/span>lation, the real wage in Metro Manila is now at P503.51.<\/p>\n

Mr. Balisacan said NEDA is \u201coptimistic\u201d that inflation will ease further since the El Ni\u00f1o weather pattern, which was marked by extreme droughts in the Philippines, is \u201cnow over.\u201d<\/p>\n

But he did note continuing disruptions to the global rice markets amid export curbs by India and Vietnam.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

THE NATIONAL Economic and Development Authority (NEDA) on Tuesday said the wage hike in Metro Manila would have little-to-no impact on growth targets, adding that it could be offset by an investment-driven expansion of the economy.<\/div>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","footnotes":""},"categories":[1],"tags":[14644,9853,1844,2212,3897,4891,6789,3546,11],"class_list":["post-19686","post","type-post","status-publish","format-standard","hentry","category-uncategorized","tag-bworldonline","tag-economy","tag-hike","tag-hurt","tag-ncr","tag-neda","tag-unlikely","tag-wage","tag-years"],"yoast_head":"\nNCR wage hike unlikely to hurt economy \u2014 NEDA - Energy Buzz<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/energybuzz.ph\/ncr-wage-hike-unlikely-to-hurt-economy-neda\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"NCR wage hike unlikely to hurt economy \u2014 NEDA - 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