Cautious consumption seen weakening seasonal hiring

SLOW AND UNEVEN government aid after recent typhoons could dampen fourth-quarter growth as households curb holiday spending following the hit to their incomes and job opportunities, analysts said.

- By Chloe Mari A. Hufana Reporter

Federation of Free Workers President Jose G. Matula said delayed assistance and fewer seasonal job openings could dampen holiday consumption, a key driver of gross domestic product (GDP).

“When there are fewer seasonal hires, wallets get thin,” he said via Viber, adding that families might postpone purchases and trim nonessential spending.

The Philippines posted modest economic growth in the third quarter, weighed down by the impact of natural disasters.

Third-quarter growth slowed to 4% year on year, from 5.5% a quarter earlier and 5.2% a year earlier,

The slowdown was largely driven by faltering infrastructure spending, as a high-profile corruption probe into government construction projects — particularly flood-control works — delayed billing and disbursements.

Private consumption, which accounts for more than 70% of GDP, slowed to 4.1% in the third quarter from 5.3% in Q2, dragged down by declining consumer confidence.

The labor market in September was also negatively impacted by natural disasters, as reflected in the most recent jobs report.

The Philippine Statistics Authority reported a 3.8% jobless rate for the month, weakening from 3.7% a year earlier.

September typically marks the start of the holiday season in the Philippines, when businesses ramp up hiring to meet rising demand in the run-up to December.

Mr. Matula called on the government to fast-track emergency job programs, and front-load public works so that “people regain (working) hours now, not after the holidays.”

“Relief work programs like Tulong Panghanapbuhay sa Ating Disadvantaged/Displaced Workers (TUPAD) and cash-for-work reach some displaced workers, but the support is inadequate and too slow,” he noted.

He said payouts from emergency employment schemes remain inconsistent, and most temporary jobs last only a few days — insufficient to replace lost income.