Seasonal hiring seen masking job market flaws

By Chloe Mari A. Hufana, Reporter

THE UPTICK in employment towards the end of the year reflects seasonal hiring for the holidays, masking the problems of precarious employment and poor job quality.

The increase in underemployment in September to 5.94 million from 5.11 million a year earlier indicates dissatisfaction with wages or, Bukluran ng Manggagawang Pilipino National President Renecio S. Espiritu said.

The September underemployment rate — a measure of workers seeking longer hours or extra jobs — rose to 11.9% from 10.7% a year earlier and 11.2% in August, according to preliminary data from the Philippine Statistics Authority (PSA), which issued its Labor Force Survey report Wednesday.

“In other words, one out of 10 Filipino workers cannot meet their needs,” Mr. Espiritu told BusinessWorld via Messenger chat.

The “Christmas rush” driving hiring points to a “very backward economy” because production and economic activity “are not strategically planned but are determined by religious traditions.”

“Instead of promoting meaningful, regular employment, what is being offered are seasonal, temporary jobs based on tradition-determined demand. Such an economic arrangement is very primitive and it does not improve our economy and quality of life in the long term,” he added.

Mr. Espiritu noted the growing gig economy’s role pushing up underemployment in September, particularly food delivery platforms, transport network vehicle services, and online sellers.

Gig economy jobs undermine security of tenure with workers not having an employer-worker relationship with companies, he said.

“It’s not surprising that employment numbers have increased. However, let’s be clear — this does not mean that the lives of ordinary Filipinos have improved,” he added.

University of the Philippines Baguio economics instructor Edgar Antonio C. Suguitan said relying on the boost from holiday hiring is “unsustainable” and a “band-aid solution.”

“There is room for policy to better generate or match jobseekers to decent jobs. But policy takes time and need to start early,” he said via Messenger chat.

In its notes accompanying the September data release, the PSA said many workers entering the labor force were not absorbed as regular workers.

Mr. Suguitan said this meant “a lot of temporary engagements expired within the year” and “many people are still looking for better work conditions.”

He said some reasons for this include cost-cutting by companies and the mismatch between available jobs and worker qualifications.

The unemployment rate fell to 3.7% in September, driven in part by the growing number of female workers joining the workforce ahead of the holidays.

The PSA reported that the jobless rate dropped to 3.7% in September from 4% in August and 4.5% in September 2023.

This was equivalent to 1.89 million unemployed in September, down by 177,000 from August and by 370,000 from a year earlier.

The employment rate rose to 96.3% in September from 95.5% a year earlier. This is equivalent to 49.87 million holding down joba, up 2.2 million from September 2023.