End of ‘endo’ to adversely affect 30 percent of Filipino labor force

Despite plans of the current administration to scrap contractualization, the Philippine labor force is still expected to keep its slot among the most desirable work forces globally.

The Philippine labor market was ranked third out of 75 countries/economies worldwide in the 2016 Contingent Workforce Index (CWI) released by ManpowerGroup Solutions.

The country’s labor force was also the top market for contingent workforce cost efficiency in the entire Asia and the Pacific region.

“While ending contractualization could make the Philippines less competitive for employers seeking a less-skilled, lower-cost work force, the overall impact on the contingent labor pool will likely be insignificant if organizations have the right mix of contracted, freelance and project-based labor,” the report stated.

Countries are ranked on their overall environment for contingent work-force engagement across four categories, namely, availability, cost efficiency, regulation and productivity. The report stated that each category can be weighted differently depending upon the strategic priorities of an organization.

In the 2016 round, the Philippines and India both benefited in the adjustment in the computation of the weights for the categories, particularly in availability, which was given a higher weight.

Availability of the work force pertains to the size of the labor market. The Philippine labor force is 41.342 million-strong as of the 2015 Annual Labor Force Survey data.

“The Philippines rose to third due in part to moderate regulatory considerations, a large work force and high-cost efficiency. While English proficiency and the availability of skilled labor remain an important metric in regard to the CWI, weighting of the availability metrics shifted to allow a higher ranking for markets where a large work force is available,” the report stated.

If the Duterte administration ends contractualization, ManpowerGroup Solutions said 30 percent of the Philippine work force, which subscribe to contract labor, will be affected by the measure.

ManpowerGroup Solutions said the most affected will be the construction sector with 71 percent of workers are considered end-of-contract workers. However, overall, ManpowerGroup Solutions said the impact will be minimal, especially if employers have the “right mix” of workers in their company.

“The Philippines remains one of the world’s largest and most cost-effective contingent labor pools, especially with regard to skilled IT and call-center workers. While [President Duterte’s] proposed new law requiring all new hires who have worked continuously for six months to be ‘regularized’ is worth monitoring, his vow to put an end to the ‘contractualization of labor’ will have a minimal effect on most industry segments,” the report stated.

In the new report, New Zealand leads for the second consecutive year, demonstrating an optimal environment for use of contingent labor.

Other countries that make up the top 5 apart from the Philippines are Singapore (2nd), Israel (4th) and India (5th) moved to the top of the leaderboard in 2016.

The United States and Canada fell from the top five global markets, dropping to sixth and seventh from second and third, respectively.

 

 

 

Infolinks leaderboard
House Manila Leaderboard
ECA 728×90 Leaderboard
Suntrust banner2
mm
A professional journalist for over a decade, Cai U. Ordinario currently writes macroeconomic and urban development stories for BusinessMirror. She has received awards for excellence in reporting on the macroeconomy and statistics. She was also cited for her contribution to statics reporting by the National Statistical Coordination Board (now the Philippine Statistics Authority). She is a recipient of journalism fellowships including the Jefferson Fellowship from the Honolulu-based East West Center. She is currently completing her Masters degree in Communication at the University of the Philippines. She graduated with a degree of Bachelor of Arts Major in Journalism from the University of Santo Tomas.

1 COMMENT

  1. .
    What else can be said about this than:
    .

    .
    The incredible stupidity of DOLE and ECOP.
    .
    All of them are Brenda’s!
    .
    As in, Brain Dead!!!
    .
    Putting a permanent stop to Endo has a Pareta efficient economic justification.
    .
    It reduce employee turnover–and, in so doing, reduce recruiting and replacement cost.
    .
    Furthermore,
    We, as employees / labor / workers live in a multi – role socity where
    we may be company’s “A” employees but then are another company’s
    customers.

    Putting a permanent stop to Endo and doubling the
    Minimum Wage will help spread our country’s wealth to more citizens and
    expand the purchasing power of the country as a whole.

    Doing this will help the overall Philippine economy.

    The
    move to stop Endo and double the Minimum Wage will also help us in
    making the Philippine middle class became the driving force in our
    economy, which will Leap Frog or Catapult our nation’s economic growth
    and development.

    The lack of spending power in the middle class cripples the Philippines overall economic growth.

    The health of any business or economy depends on the health of its consumers.

    Average
    hourly earnings in terms of the Minimum Wage when adjusted for
    inflation have not increased in the past three deades. Wages as a
    percent of the economy are at an all-time low.

    The employment-to-population ratio is low

    We
    must persiade our corporations and their owners to hire more employees
    and pay them more, thus giving these employees, as consumers, more
    spending money.

    Eventually, this will help increase corporate profits.

    Why?

    Because
    paying workers more will not just lead to a reduction in near-term
    profits. It will also lead to faster revenue growth. Because employees,
    as consumers, will have more spending money and willl also pay more
    taxes too.

    In other words, corporations don’t have to suddenly
    become good citizens when they decide to pay workers more. They can keep
    on being single minded competitive capitalist profit-seekers.

    They
    can pay employees more with the knowledge that this will eventually
    lead to faster revenue growth, which will eventually lead to higher
    profits.This they can do “Selfishly” and in their own self – centered capitalist self-interest.
    .
    https://www.youtube.com/playlist?list=PLS1p2xiMEPTIi-zSSbssHTizb_AdF-N-_

LEAVE A REPLY

Please enter your comment!
Please enter your name here