Hiring intentions less favorable—survey says

LESS OPTIMISTIC. Businesses name higher inflation (i.e., faster rise in prices of consumer goods, services, raw materials and production costs); rising fuel prices; decline in sales and demand; peso depreciation; the continuing public health threat of Covid-19 as among the reasons business sentiment weakened for the third quarter affecting hiring intentions of business owners. (SunStar file)
LESS OPTIMISTIC. Businesses name higher inflation (i.e., faster rise in prices of consumer goods, services, raw materials and production costs); rising fuel prices; decline in sales and demand; peso depreciation; the continuing public health threat of Covid-19 as among the reasons business sentiment weakened for the third quarter affecting hiring intentions of business owners. (SunStar file)

FIRMS that look forward to hiring more people declined for the fourth quarter of the year, but the percentage of firms with expansion plans increases, according to the latest Business Expectation Survey (BES) released by the central bank.

The employment outlook index declined to 22.7 percent for the fourth quarter from 25.4 percent in the second quarter 2022 survey results and was steady at 30 percent from 30.7 percent for the next 12 months.

The lower reading in the third quarter suggests that hiring intentions may turn less favorable for the next quarter, while employment prospects for the next 12 months remain optimistic, the BSP said.

On one hand, the percentage of businesses in the industry sector with expansion plans for the fourth quarter increased to 23.4 percent from 17.9 percent in the second quarter survey results.

On the other hand, the percentage of industry firms with expansion plans for the next 12 months decreased to 23.2 percent from 24.4 percent.

Results of the third quarter BES showed that business confidence has dipped further.

Businesses cited higher inflation (i.e., faster rise in prices of consumer goods, services, raw materials and production costs); rising fuel prices; decline in sales and demand; peso depreciation; the continuing public health threat of Covid-19 as among the reasons business sentiment weakened for the quarter, affecting the hiring intentions of business owners.

Overall confidence index (CI) declined to 26.1 percent from 35.4 percent in the second quarter this year.

For the next quarter, the business sentiment further weakened for the second consecutive quarter as the overall CI decreased to 43.9 percent from 46.4 percent a quarter ago.

Moreover, firms also expect a weak peso, and higher borrowing and inflation rates in the third quarter and in the near term.

Survey results showed that businesses expected the peso may continue to depreciate against the US dollar and the peso borrowing and inflation rates may rise in third and fourth quarters this year, and the next 12 months.

The Philippines peso closed at P58.50 Friday against the US dollar.

Further, businesses expected that inflation may breach the upper end of the government’s two to four percent inflation target range for 2022-2023. In particular, firms were expecting that inflation might settle at 5.6 percent in third the quarter and fourth quarter and at 5.4 percent for the next 12 months.

Trending

No stories found.

Just in

No stories found.

Branded Content

No stories found.
SunStar Publishing Inc.
www.sunstar.com.ph