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JULY BUSINESS SURVEY POINTS TO WEAKER CONFIDENCE AND YEAR-AHEAD HIRING PLANS
Businesses surveyed by the Bangko Sentral ng Pilipinas became pessimistic about economic conditions in July. Results released on September 4 put the confidence index at minus 20.3, down from zero in June. A negative reading means pessimistic responses outnumbered optimistic ones.
The July 7 to 31 survey had a sample of 506 firms and a 48.8-percent response rate. Firms were drawn from a database of the country's top 7,000 corporations. The results should not be read as the experience of every Philippine employer, including every small business. These are July assessments, preceding September's developments.
The BSP linked the weaker outlook to Middle East tensions, higher oil prices and continuing inflation concerns. Firms remained optimistic about the next 12 months, though confidence had weakened. Over that same 12-month horizon, fewer firms planned to hire additional workers. The three-month hiring outlook improved, however, and some industrial firms still intended to expand over the next year.
For jobseekers, that suggests a possible slowdown in recruitment. Hiring intentions can change, and the survey does not count actual jobs lost or vacancies cancelled. It helps explain why a business facing uncertain sales and costs might postpone adding staff.
WHAT TO WATCH
Watch subsequent employment figures and the next business survey. They will help establish whether cautious hiring plans become fewer opportunities for jobseekers or improve as business conditions change.