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MANILA – A survey conducted by the World Bank, the National Economic Development Authority and the Department of Finance shows that 48 percent of companies in the Philippines have reduced the number of their employees amid the Covid-19 pandemic.
The survey was conducted among 74,031 companies from July 7 to 14 to assess the impact of the health crisis on companies.
“Job losses are most significant in the education, food service and construction sectors, and more than 60 percent of companies in these sectors have laid off their employees,” the survey said.
Dismissal of workers is lower in the financial services and health sectors, and two out of five companies in these sectors reported that they have reduced the number of their workers.
On the other hand, only 1 percent of companies hired new employees.
Of the total number of companies surveyed, 40 percent said they temporarily suspended their operations, 20 percent by mandate of the government and 20 percent voluntarily.
The survey added that about 15 percent reported having closed their businesses permanently.
“Although community quarantine measures were relaxed to some extent during the survey time, companies still reported a high degree of uncertainty. Uncertainty is an important additional channel affecting businesses during the pandemic and, as the economy reopens, this could result in less willingness to take additional risks and investments, ”the survey said.
He added that about 45 percent of companies are not sure when they can resume operations.
Among operating companies, 20 percent said they expect their businesses to close between one and three months, 13 percent expect to close their operations between three and six months and 12 percent think they will stop operating after six months.
The level of uncertainty in terms of employment activities and income between July and September of this year is also high, 33 percent and 28 percent, respectively.
Government support
According to the survey, only one in five companies has received any support from the national and local government, such as cash transfers to their employees through the Pantawid Pamilyang Pilipino Program (4P) and the social improvement program, deferment of loan payments. , wage subsidies, rent relief and deferral, mortgage and utilities.
Reasons for not receiving government support include difficulty applying for support, not being aware of programs, not receiving support after applying, and not being eligible for the support program.
“This suggests the need for greater awareness and clarity on current program guidelines and requirements, as well as timely program implementation. This is particularly necessary for new government loan programs offering subsidized interest rates that are in high demand, ”the survey added. (PNA)
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