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Philippines: Highest Turnover Rate at Metro Manila in the Last 5 Years

March 9, 2017

Even though the number of Filipino workers hired at Metro Manila, is more than those terminated in Q3 2016, the labour stats report released by the Philippine Statistics Authority (PSA) tell a different story.

According to findings in the Lab Stat report, the turnover rate of jobs in Metro Manila enterprises registered the highest labour turnover rate in Q3 2016 at 3.67 percent since 2011. This means that employment in large enterprises in Metro Manila continuously grew in the third quarter of 2016 at 3.67 percent. However, the turnover rate in the same period was higher than 3.20 percent and 2.30 percent recorded in the same quarter of 2015 and in the second quarter of 2016, respectively.

The PSA data also showed that the expansion rate is about three times than that of the replacement rate. The rate of accession or hiring of new employees at 14.10 percent surpassed separation rate of 10.43 percent resulting to the 3.67 percent difference.

This means that for every 1,000 employed, 37 workers were added in the enterprise workforce. Specifically, for every 1,000 employed, 141 workers were added due to either expansion or replacement, while 104 workers were laid off or quit their jobs.

The 14.10 percent accession rate was mostly contributed by the expansion of business activities for the period at 10.88 percent, which was 7.7 percentage points higher than the accession due to replacement of workers at 3.22 percent.

Most of the industries reported positive labour turnover rates ranging from 0.05 percent (water supply, sewerage waste management and remediation activities) to 20.79 percent (transportation and storage).

Among the major sectors, services posted the highest employment growth at 4.03 percent. This was mainly contributed by transportation and storage at 20.79 percent; accommodation and food service activities at 6.02 percent; administrative and support service activities at 5.10 percent; and other service activities at 4.87 percent. On the other hand, only education (-0.44 percent) saw a negative labour turnover rate.

See: DOLE Philippines Rules Out Age Discrimination During Employment

During the period of the study, it was observed that the people who quit their jobs at 7.94 percent outnumbered those who were terminated by their employers at 2.94 percent.

The highest separation rate was posted in the administrative and support services at 16.59 percent, wherein 14.05 percent was employee-initiated. This was followed by accommodation and food service activities at 11.49 percent, of which 9.47 percent was employee-initiated.

Generally, employer-initiated separations were higher in the industry sector. However, most of the industries in the services sector, recorded higher separations initiated by the workers themselves except for three industries namely – trade, education and health.

The Labour Turnover Survey (LTS) is a quarterly sample survey of enterprises conducted by the Philippine Statistics Authority (PSA) since the third quarter of 2002. The survey aims to capture “job creations” and “job displacements” in business enterprises based in Metro Manila by collecting quarterly data on accessions and separations of workers.

A total of 1,232 enterprises served as respondents to the Q3 2016 Labour Turnover Survey. The sample enterprises were drawn from the 2015 List of Enterprises. The retrieval rate for this quarter was placed at 98.4 percent.

Also read: Positive Hiring Outlook for Philippines in 2017, Strengthened by Effective Local Policies

Image credit: Youtube

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