Labor output, employment rate likely to drop even as more industries open – Duterte report

MANILA, Philippines — Labor productivity and employment rate will likely continue to suffer a drop despite the easing of business restrictions in areas under general community quarantine (GCQ), President Rodrigo Duterte’s report to Congress Monday said.

Citing data from the Philippine Statistics Authority, Duterte said more than half or 64.8 percent of the over a million establishments nationwide are located in areas still under GCQ.

“With more than half of the labor force working in areas still under GCQ, conservative assumptions indicate that labor productivity and employment rate will still suffer a significant decline, especially when industries are not operating at full capacity,” the report stated.

More industries, excluding those related to leisure, have resumed operations on June 1 but only at a limited capacity to observe physical distancing.

The report said the top industries in GCQ areas with the most employees affected were retail trade, excluding motor vehicles and motorcycles followed by crop and animal production.

These two were followed by hunting and related services, and construction of buildings, the report added.

From June 1 to June 15, areas under GCQ were NCR, Cagayan Valley, Central Luzon, Calabarzon, Pangasinan, Albay, Central Visayas, Davao City and Zamboanga City.

The rest of the country was placed under modified GCQ.

The remaining sectors not allowed to operate under GCQ are tourism, entertainment and cultural activities, gambling, and the like.