Labor turnover rate improves in MManila

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Employment in Metro Manila’s large enterprises improved during the third quarter of 2015, the government reported on Friday, with services sector posting the highest growth.

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The Philippine Statistics Authority said its latest Labor Turnover Survey (LTS) found the turnover rate at 3.20 percent from 2.35 percent a year earlier and 1.15 in the previous quarter.

The quarterly survey, the PSE said, “aims to capture ‘job creations’ and ‘job displacements’ in large business enterprises based in Metro Manila by collecting quarterly data on accessions and separations of workers.”

The latest turnover rate came as the accession rate of 11.07 percent surpassed the separation rate of 7.87 percent. Put another way, 32 workers per 1,000 employed were added to the enterprise workforce during the period, it said.

New hires or accessions refer to permanent or temporary additions to employment in the enterprise due to the expansion of business activity and replacement of separated workers, and employment resulting from changes in methods/technology of production or service.

Separations, meanwhile, refer to resignations or terminations initiated by employees and layoffs or terminations initiated by employers due to economic reasons (lack of market, financial losses, redundancy, end of contract, etc.) and non-economic reasons (gross negligence and absence without official leave, etc.).

“This implies that 111 workers per 1,000 employed were added to the enterprise workforce due to either expansion or replacement, while 79 workers per 1,000 employed were laid off or quit their jobs,” the PSA said of the latest results.

Services posts highest turnover rate

Among the major sectors, the PSA said services posted the highest employment growth at 3.54 percent.

“It is significant to note that labor turnover was highest in administrative and support service activities (8.49 percent),” it added.

Other service activities, transportation and storage, and accommodation and food service activities posted turnover rates of 3.19 percent, 2.83 percent and 2.72 percent, respectively.

Employment in the industry sector increased by 1.54 percent, which was attributed to positive growth in construction (3.45 percent); mining and quarrying (2.63 percent); and water supply, sewerage, waste management and remediation activities (2.21 percent).

The survey also found out that the accession rate of 11.07 percent during the quarter was primarily contributed by replacement of workers at 6.35 percent.

Accession due to the expansion of business activities was at 4.72 percent.

The PSA said eleven industry groups recorded higher accession rates due to replacement, led by service activities; wholesale and retail trade, repair of motor vehicles and motorcycles; mining and quarrying; accommodation and food service activities; human health and social work activities; and real estate activities.

Seven industry groups registered higher accession rates due to the expansion of business activities: construction; other service activities; transportation and storage; information and communication; water supply, sewerage, waste management and remediation activities; professional, scientific and technical activities; and agriculture, forestry and fishing.

Separation rate highest in construction

The construction industry posted the highest separation rate among industries at 16.04 percent, comprised mostly of employer-initiated separations or layoffs at 12.65 percent.
This was followed by wholesale and retail trade, repair of motor vehicles and motorcycles, which posted the second highest separation rate at 11.18 percent, and administrative and support service activities with 10.39 percent.

The PSA said a total of 921 enterprises served as respondents for the third quarter 2015 LTS.

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