PH firms expected to keep hiring in Q4

Companies are expected to continue hiring employees in the fourth quarter, as the employment outlook remains steady, results of Bangko Sentral ng Pilipinas’ business expectations survey show.

The employment outlook index for the next quarter was broadly steady at 23.6 percent from 23.8 percent in the previous quarter’s survey.

“The positive reading indicates that more firms will continue to hire new employees than those that said otherwise,” Bangko Sentral said.

The percentage of businesses with expansion plans in the industry sector, however, decreased to 28.1 percent in the fourth quarter from 30.3 percent a quarter ago.

The survey also showed that firms were expecting better financial conditions and easy access to credit in the third quarter. The financial conditions index remained steady at 1.5 percent from 1.3 percent in the previous quarter.

Bangko Sentral said this showed that firms  expecting better financial conditions continued to outnumber those that said otherwise during the quarter.

“Firms were also of the view that their financing requirements could be met through available credit as respondents who reported easy access to credit exceeded those that said otherwise. However, the number that said so decreased compared to that a quarter ago,” it said.

Meanwhile, respondents who expected inflation to go up continued to outnumber those that held the opposite view for the current and next quarters, but the number that said so declined relative to the previous quarter.

“Businesses expected the rate of increase in commodity prices to remain low at 1.5 percent for the third quarter and 1.6 percent for the fourth quarter,” the survey said.

Inflation in the first seven months averaged 1.4 percent, below the government’s official target range of 2 percent to 4 percent this year. Also, the 1.9-percent turnout in July was within the Bangko Sentral’s forecast range of 1.5 percent to 2.4 percent for the month.

Survey respondents also anticipated the peso to depreciate in the third quarter but to gain strength in the fourth quarter. Also, firms expected that interest rates would be higher for the third quarter and fourth quarter.

Topics: employment outlook , Bangko Sentral ng Pilipinas
COMMENT DISCLAIMER: Reader comments posted on this Web site are not in any way endorsed by Manila Standard. Comments are views by readers who exercise their right to free expression and they do not necessarily represent or reflect the position or viewpoint of While reserving this publication’s right to delete comments that are deemed offensive, indecent or inconsistent with Manila Standard editorial standards, Manila Standard may not be held liable for any false information posted by readers in this comments section.