By Samuel P. Medenilla
FILIPINO information and communication workers were not spared from the mass layoffs from technology firms which tried to cut down on expenses this year, according to a new report from the Department of Labor and Employment (DOLE).
In its latest Job Displacement Report (JDR) obtained by BusinessMirror, DOLE’s Bureau of Local Employment disclosed that the sector logged the highest increase in the number of permanently displaced workers in January, at 3,089.
This was 87.4 percent higher compared to the 1,684 displaced workers who lost their information and communication-related jobs in the same period last year.
Several multinational tech firms such as Google, Microsoft, Meta, and Amazon earlier announced their decision to lay off thousands of workers due to uncertain economic conditions this year.
Displacement trends
Aside from information and communication, other sectors with registered high increases in permanent labor displacement were the financial and insurance activities (44.9 percent +367) and the mining and quarrying (98.5 percent or +131).
However, the sectors which still tallied the most number of permanently displaced workers in January was the construction industry with 11,383 followed by “other service activities” with 6,148.
Meanwhile, industries which recorded the “steepest decline” in the number of labor displacement were accommodation and food service activities (-93.2 percent or -5,388), wholesale and retail trade (-78.5 percent or -5,082) and agriculture, forestry and fishing (-88.4 percent or -1,767).
Overall, the JDR reported the number of permanently displaced workers in January dropped to 34,820 compared to 53,057 in the same period in 2022.
“This can be attributed to the decrease in displacement due to retrenchment (-35.9 percent or -17,307) and permanent closure (-19.1 percent or -930),” BLE said.
Sustainable gains
The data was consistent with those from the latest Labor Force Survey (LFS) of the Philippine Statistics Authority (PSA), which showed a year-on-year decrease in the number of unemployed by 580,000 in January.
Unlike the LFS, which is based on the quarterly survey conducted by PSA in 51,000 households, the JDR relies on the regular displacement reports submitted by employers to DOLE’s regional offices.
To ensure that recent gains in the labor force will be sustainable, Labor and Employment Secretary Bienvenido E. Laguesma said they are now working to “raise the quality of human resources and ensure that the current and future workforce can adapt to the changing demands of the labor market.”
Among the measures DOLE is now pushing for is further improving the labor market information system, the passage of the Apprenticeship Bill, strengthening the capacity of the Public Employment Service Offices, and enhancement of social protection programs for workers.
“These efforts shall achieve our desired outcomes in terms of employment and mobility, and better respond to economic opportunities, which includes prioritization of upskilling and reskilling of the workforce to equip them with higher competencies by expanding lifelong learning opportunities,” Laguesma said.