FEATURE
Working towards the ‘ New Normal ’ By : Catherine Nanta
In the opening of 2020 , the Philippine Statistics Authority ( PSA ) reported that the country ’ s employment rate is 94.7 % in January of the same year , prior to the onset of the pandemic in the country . In April 2020 though , as the country was placed in an Enhanced Community Quarantine ( ECQ ), the unemployment rate soared to an all-time high of 17.7 % or equivalent to 7.3 million Filipinos in the labor force without work .
As many businesses closed — either temporarily or permanently , due to the imposed quarantines and low consumer appetite ; many Filipinos also found themselves either laid off from work or receiving lower pay as businesses struggled to make ends meet at the face of the biggest health and economic challenge in the recent history .
The effect of the pandemic to the Ph labor force
After the highest unemployment rate in April , the country managed to somehow rise from the labor slump , as businesses slowly opened up in June when quarantine in Metro Manila and many areas around the country was relaxed .
As malls reopened and many other business activities resumed including retail stores , the labor situation slightly improved by half of 2020 , recording an unemployment rate of 8.8 % in October .
The country ’ s socio-economic planning agency , on other hand , has noted that the pandemic and restrictions have resulted to a total of income loss of about P1.04 trillion in 2020 , which is equal to a daily average of P2.8 billion .
As a consumer-driven economy , these job losses , together with consumers ’ shift or restraint in buying due to uncertainties have also resulted in economic downturn .
The future of labor force
In an online press briefing , the Department of Labor and Employment ( DOLE ), said that it may take two to three more years before the employment sector can fully recover . To help boost employment , the government has launched the National Employment Recovery Strategy ( NERS ). Through NERS , the government expects to spur 2.4 to 2.8 million job opportunities .
According to an article from Philippine News Agency , the program is meant to help create a policy environment that encourages the generation of more employment and entrepreneurship opportunities .
It is also expected to improve the employability and productivity of workers as it provides support to existing and emerging businesses . DOLE sees sectors such as health and wellness , wholesale and retail — particularly in the line of e-commerce , construction , and government will be the key employment-generating sectors during this pandemic period .
Work in a changing landscape
Even before the pandemic , there were already factors that have been affecting and disrupting the labor force , including technology . However , with the virus closing in physical businesses , McKinsey & Company noted three trends in the work sector including remote work , digitization , and automation , which are likely to stay even after the pandemic fades away .
In the local context , the first few weeks of the ECQ have led Filipino businesses to find ways to operate remotely , foreseeing that the quarantine may linger a bit longer . Office group chats like Microsoft Teams and Viber became active , as well as various video conferencing tools . Zoom for instance has recorded a 169 % growth in April last year compared to its 2019 sales .
Our local retailers have also learned to grasp the importance of transforming digitally at the midst of the pandemic due to restrictions of going out , social distancing limits , and scarce transportation availability ; driving more consumers to be incessantly online .
Still , Filipino retailers find that omnichannel is the way to go traversing through and rising out from this pandemic . With the shift to digitization , upskilling and retooling of the labor force is essential to help employees adopt to the new health requirements and digital tools .
Automation on the other hand had been a hot topic prior to the pandemic , With the Covid-19 disruption , this is seen as an opportunity to reduce physical contact and support remote working set up .
Strategies that work
McKinsey also noted the importance of business leaders and policy makers working together to create an environment that supports workers including better digital infrastructure and innovative worker benefits and support mechanisms . With program such as the NERS , rolled out fast and efficiently , businesses and employees may be able to obtain support from the government , not only in creating job opportunities , but helping entrepreneurs and employees get the training and retooling they need , as some who lost their jobs may need to find new opportunities in another sector or industry .
Other proposed acts such as the CREATE Act which was recently signed by President Rodrigo Duterte , are also seen to induce confidence among businesses with the lowered corporate tax of 20 % and 25 % for MSMEs and large corporations , respectively .
The challenge is still upon us , and while health is the number one priority for country , along the way , everyone should be thinking of safe and innovative ways to continue working and create jobs to help spur the economy .
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