LinkedIn Opportunity Index 2021

Based on the LinkedIn Opportunity Index 2021 where 1,256 of the respondents come from the Philippines, 45% of working women in the Asia Pacific region reported their domestic responsibilities to be obstacles to career development.

LinkedIn, the world’s largest professional network has launched LinkedIn Opportunity Index 2021. The annual Index is a composite measure that seeks to understand how people perceive opportunities and the gaps that stand in the way of achieving them.

This year’s research looks at the impact of the pandemic on Filipinos’ access to opportunities. More importantly, it spotlights the gender gaps that continue to exist in the workplace, and how these affect women’s opportunities for career development.

Silver linings still exist amid challenging job market with pay cuts and reduced working hours

Previous surveys have shown the Philippines as one of the most optimistic markets in the Asia Pacific. This year’s study now finds it one of the countries with below-average confidence as Filipinos see fewer opportunities and more difficult barriers.

Almost 9 in 10 Filipinos feel they have been negatively impacted by COVID-19, citing job insecurity, reduced working hours and reduced pay. This has likely led to a cautious economic outlook amongst Filipinos, with 3 in 4 believing that the economic situation in the country has worsened.

Filipinos still consider job security as their most desired opportunity in 2021 (53 percent). However, they have also started looking for new opportunities to help others within the community. For example, 51 percent looked to providing safety support items like sanitizer and masks to others within the communityand 32 percent looked to help or mentor others to gain opportunities.

In addition, Filipinos sought out learning opportunities. Learning new soft skills — effective communication, creative thinking, and leadership — were sought after by more millennials, while learning new hard skills — business analytics, sales, and marketing — was sought after by millennials and Gen Zs.

“About a year on since COVID-19 hit us, many continue to struggle from job loss and job instability. Yet it is heartening to see that people have also turned their focus towards helping the community,” said Feon Ang, Vice President, Talent and Learning Solutions, APAC, LinkedIn.

“This is also a journey that we are working towards at LinkedIn because we believe in the power of community in helping others get back on their feet. We have also stepped up efforts to initiate mentorship opportunities for job seekers facing more barriers with our LinkedIn Coaches and Network Gap Alliance.”

Women still face significant barriers in achieving job-related opportunities

As 88 percent of Filipinos have started working from home, many working women now have to face other barriers when it comes to achieving opportunities.

Women, especially working mothers, are facing more significant obstacles under the current set-up compared to men. Close to half of working mothers (47 percent) have said they are struggling to balance their work and household responsibilities, with 42 percent saying their duties at home are getting in the way of their career development.

In spite of these barriers, women are prepared to work hard, but they desire equal access to opportunities as men. In fact, women see these two as the most important aspects (88 percent and 85 percent respectively) to getting ahead in life.

51 percent of Filipinos say that gender equality has improved compared to their parents’ time, however, many still feel gender bias continues to exist in the workplace

According to the study, 22 percent of female professionals agree that they have fewer career advancement opportunities, and 14 percent claim they are paid less than men in their profession. In fact, half of working women in the Philippines have experienced that their gender played a role in missing out on opportunities, promotion, and pay.

Our research suggests that this mindset may stem from broader societal perceptions around gender. While 74 percent think that gender equality is an important value for a fair society, more than half of the respondents believe that it has already come far enough and has been achieved to a satisfactory degree. Furthermore, 31 percent think that gender equality is impossible to achieve. This potentially shows that Filipinos feel not much more can or should be done to further gender equality.

Ang said, “The Philippine workforce has taken a hit due to COVID-19 across the board, women included. The lack of time is the top barrier for women today — likely due to having to juggle remote working and family responsibilities. We also know that women are seeking to get ahead in life, and want equal access to opportunity as men. As a society, we need to start changing our societal perceptions on gender. In our organisations, too, we need to level the playing field for women. When we succeed, the economy and our organisations succeed as well.

Businesses’ have an important role to play to bridge the gender gap and ensure equitable recovery for all.

Encourage open conversations on diversity

Our data shows that only 26 percent of working professionals in the Philippines strongly agree that gender diversity is a priority in their organization. In the Philippines, LinkedIn recorded year-on-year growth of senior leaders taking the lead and initiating conversations about diversity on the platform.

In addition, content on diversity gets on average 117 percent more engagement than the average company post. This is a positive sign that people are receptive to senior leaders’ call for gender diversity, which could ultimately help address the gender gap and ensure equitable recovery for all.

Initiate group mentoring programmes in the company to help women soar in their roles

In the Philippines, 22 percent of female professionals agree that they have fewer career advancement opportunities, and 14 percent claim they are paid less than men in their profession.

Implement policies to help women balance work and personal life

As a result of lack of diversity and barriers faced by women in progressing at work, more expect organizations to provide them with maternity leaves and extended maternity leaves. Expectation for extended maternity policies is a strong sentiment among working mothers. This suggests that women are aware and more vocal about the support they need from the workplace in order to balance work and family responsibilities effectively.

“There is strength in numbers. When more organizations come together, we can do more to help bring equitable recovery for all. It always starts with one small step — from encouraging open conversations on diversity and equality, and advocating for practical initiatives from flexible working hours to mentoring programmes. We must foster the right culture and values in our organization, to ensure that everyone progresses together, and no one is left behind. When we do this, we can achieve so much more,” said Ang.

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Source: LinkedIn

GDP growth targets attainable, says BSP

The Bangko Sentral ng Pilipinas (BSP) remains optimistic the country will hit its economic growth targets this year and next, brushing off an International Monetary Fund (IMF) downgrade.

BSP Governor Benjamin Diokno said in a Bloomberg TV interview that he is confident the country would hit its gross domestic product (GDP) growth forecasts of four to five percent this year and seven to nine percent next year.

After exiting the pandemic-induced recession with an 11.8 percent GDP growth in the second quarter, Diokno said GDP expanded anew in the third quarter.

“We’re confident that the third quarter will be positive,” he said.

In response to the decision of the IMF to lower anew the Philippines’ GDP growth forecasts to 3.2 percent instead of 5.4 percent for this year and 6.3 percent instead of seven percent for next year, Diokno said the BSP is still confident the revised targets would be achieved.

“I don’t see whether there’s a lot of weight that you can give to forecasts nowadays because things are really subject to a lot of uncertainty. But we’re very confident now with our revised forecast. Why? Because we have accelerated our vaccination program, which to me is the key to recovery,” the BSP chief said.

As of Oct. 11, the Philippines has received 87.69 million COVID vaccine doses. Data showed 21 percent or 23.18 million Filipinos are fully vaccinated, while 24 percent have received their first dose.

“In Metro Manila alone we have vaccinated 80 percent of adult population and we’re going to start vaccinating the young ones aged 12 to 17,” he said, adding the government has placed orders for about 107 million doses from various suppliers.

Diokno said the recent forecast of the IMF may be based on past numbers.

According to Diokno, the central bank would continue to keep an accommodative monetary policy stance to allow the recovery that remains fragile gain more traction.

Diokno said inflation is seen decelerating back to within the BSP’s two to four percent target toward the end of the year and average 4.4 percent this year, before easing to 3.3 percent next year and 3.2 percent in 2023.

The central bank’s Monetary Board has kept interest rates at record lows for seven straight rate setting meetings since November last year as it vowed to do whatever it can to help the economy fully recover from the pandemic-induced recession.

“It’s not that we don’t want to move the rate, we just feel that the current policy rate is appropriate for the current situation, while there is a strong recovery, I would say because the economy has recovered,” the BSP chief added.

He said exports grew by 21 percent and imports jumped by 31.4 percent, while foreign direct investments increased by 14.7 percent in the first half of the year.

“So there’s a lot of progress. But on the interest rate, we feel that the growth is still nascent, you have to take care that it is sustainable. So the Monetary Board has decided that the current policy rate is appropriate, given that inflation is manageable,” Diokno said.

For his part, ING Bank Manila senior economist Nicholas Mapa said the overall growth pace still lacks momentum to close out the year as partial lockdowns were reinstated across portions of both the third and fourth quarters.

“The IMF downward revision to GDP reflects the view that growth momentum has slowed considerably after the initial reopening of the economy last year. The Q2 GDP year-on-year growth was largely base effect driven while quarter-on-quarter GDP growth actually contracted,” Mapa said.

Despite improvements in mobility and vaccination levels, Mapa pointed out the Philippines does not resemble an economy on the mend just yet as the Dutch financial giant sees the GDP expanding by 3.7 percent this year.

“By and large, the economy remains in recession and it will take a much more convincing bounce back to exit from this prolonged downturn,” Mapa said.

source: Philstar

IMF slashes 2021 PH growth forecast to 3.2%

The International Monetary Fund (IMF) has slashed its 2021 growth forecast for the Philippines to 3.2 percent—below the government’s target—as high inflation and the highest unemployment rate in the region would linger for the rest of the year.

The Washington-based multilateral lender’s World Economic Outlook (WEO) report for October 2021 released on Tuesday showed a further drop in the gross domestic product (GDP) growth estimate for this year, from 5.4 percent previously.

The updated projection was also lower than the already downgraded 4 to 5 percent goal set by President Duterte’s economic managers when the more infectious Delta strain of COVID-19 reached the country.

As of press time, IMF resident representative for the Philippines Yongzheng Yang had yet to respond to request for comment, as the report embargo was lifted during a holiday in the United States, where he’s currently based.

Back in July, Yang said that “the Delta variant of the coronavirus is a concern and we are monitoring its potential impact on the economy.”

World Economic Outlook Data - Philippines 2019 - 2026

Fiscal support

Also, Yang had said that “timely implementation of fiscal support—with flexibility to address evolving priorities—is crucial for continued recovery.”

“The fiscal deficit targeted in the 2021 budget provides significant stimulus to economic activity, but given the imperative to beat the virus and the continued difficulties faced by vulnerable families and businesses, more resources could be needed. Such resources should aim to bolster the health-care system to accelerate vaccinations, strengthen capacity for testing, tracing, isolation, and treatment, and support affected families and businesses,” Yang had said.

Budget deficit

But the economic team wanted to keep the 2021 budget deficit at an already record-high P1.86 trillion, equivalent to 9.3 percent of GDP. The government had set aside P4.74 trillion in expenditures this year to fight the health and socioeconomic crises inflicted by the prolonged pandemic.

The IMF projected the Philippines’ GDP growth in 2022 at 6.3 percent, also below the government’s 7 to 9 percent target range.

It forecasted headline inflation this year to rise to an average of 4.3 percent, above the Bangko Sentral ng Pilipinas’ 2 to 4 percent target band of a manageable rate of increase in prices of basic commodities.

In Asia, the Philippines’ inflation rate in 2021 was poised to be the second highest, next only to India, making private-sector economists worry that consumption—a prime mover of the economy—would take a hit from expensive goods and services, especially food items, amid hopes for an economic rebound starting this year.

Next year, the IMF expects inflation to ease to a within-target 3 percent.

The unemployment rate in the Philippines was expected to remain elevated in 2021 to end the year at 7.8 percent—the highest in Asia, just like last year’s 10.4 percent.

In 2022, the jobless rate would go down to 6.8 percent, but it remained the worst among the Asian countries covered by the latest IMF WEO report.

World Economic Outlook October 2021

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Source: inquirer.net and IMF