More Filipinos adapting to ‘hustle culture’

Majority of Filipinos juggle multiple jobs to boost their income sources in what market research firm Kantar called an emergent “hustle culture” in the Philippine workforce.

“We’ve observed that this behavior has resulted [in] a ‘hustle culture’ among Filipinos, as they try to earn more but at the expense of time for chores, personal interests and other activities,” Laurice Obama, consumer and shopper insight director at Kantar Philippines, said in a statement.

Obama cited Kantar’s survey of 2,000 households from February to April showing that seven out of 10 Filipinos manage their family’s finances by moonlighting or starting a business on the side.

Apart from the majority of the surveyed households, 19 percent said they were “struggling to keep afloat” because of retrenchment or working less hours, which reduce their take-home pay.

Only around 8 percent said they were comfortable with their economic situation.

Household spending

According to recent data from the Philippine Statistics Authority (PSA), household spending dropped to 4.6 percent in the second quarter from 5.5 percent in the same period last year.

Filipino consumers, according to the study, usually buy soft drinks, coffee, water, milk, instant noodles, biscuits and crackers when they visit the grocery stores.

But those struggling with their finances remain “mindful” of their purchases, as they cut expenses by making their grocery list shorter to make ends meet.

“In their buying decision, [the study shows] that those who are managing are stretching their funds to get more value for their money,” Kantar said.

“This group does grocery shopping less often and are buying even less than what they intended to when they visit stores,” its study noted further.

These cash-strapped consumers not only trim their grocery expenses but also look for discounts.

According to PSA’s data, consumers spend less on clothing and footwear. The primary contributors to consumption are transportation, housing, water, electricity and gas, among other priorities.

Assets growing

Kantar’s survey showed that 52 percent of respondents believe this will be their status quo in the next 12 months, 7 percent expect things to get worse and 41 percent believe their situation will get better.

On the other hand, a recent study by Allianz Global said net financial assets per capita in the Philippines grew by 13.2 percent year-on-year to 1,940 euros (P121,000 based on current foreign exchange rates) in 2023, placing the country in the 49th spot out of 60 economies covered by its latest “Global Wealth Report.”

While that figure still kept the Philippines among the poorer countries in Asia, the growth of its financial assets increased by 13.2 percent, the fastest clip in six years and well ahead of China or India, Global Allianz said.

Allianz Global said the 16 percent jump in asset class securities was the “main driver” of growth.

Other financial assets like bank deposits grew “strongly” at 9.1 percent, while insurance and pensions rose 9.8 percent.

But Allianz said insurance and pensions remained “underweighted” in Filipino households’ portfolios with a share of 7 percent, way lower compared to the 57 percent share of bank deposits.

But while wealth rose, the growth in liabilities of Filipinos also continued at 12.9 percent. As a result, Allianz Global said the debt ratio climbed to 27.1 percent last year, which was “still at a rather low level.”

“2023 was marked by sharp monetary tightening. But economies proved resilient and markets even boomed,” the report said.

Overall, Allianz Global said financial assets of private households worldwide recorded strong growth of 7.6 percent last year, making up for the 3.5 percent losses in 2022. Total financial assets amounted to 239 trillion euros at the end of 2023.

By region, financial assets of Asian households increased by 7.5 percent in 2023 to 63.8 trillion euros, a quarter above the level in Europe. All asset classes contributed to this increase, with bank deposits being the main driver after rising by 9.3 percent.

Source: Inquirer

July unemployment rate hits 1-year high

Unemployment worsened in July with new graduates having failed to find jobs, the Philippine Statistics Authority reported on Friday.

The country's jobless rate spiked to 4.7 percent, the highest since the year-earlier 4.9 percent, from 3.1 percent in June.

This was equivalent to 2.38 million unemployed Filipinos, 760,000 more than June's 1.62 million and July 2023's 2.29 million, reflecting a year-on-year increase of 90,000 unemployed individuals.

National Statistician Claire Dennis Mapa said the rise came as those who graduated from college or senior high school sought work.

"We noticed in July that college and K to 12 graduates entered the labor force, but some of them couldn't find jobs," he explained.

Youth unemployment contributed 43 percent to the total jobless individuals in July, Mapa added.

Job quality, however, was stable with underemployment — which counts those looking for more work or an extra job — stayed at 12.1 percent compared to June. It was also lower than the 15.9 percent recorded in July 2023.

The number of the underemployed was estimated to have hit 5.78 million, lower than June's 6.08 million and the year-earlier 7.07 million.

The labor force participation rate — a measure of the number of working-age Filipinos who are actively engaged in the labor market — slipped to 63.5 percent from 66.0 percent in June. It was, however, higher than the 60.0 percent posted in July last year.

This was equivalent to 50.07 million Filipinos ages 15 years and over who were in the labor force.

The employment rate, meanwhile, dropped to 95.3 percent from 96.9 percent in June but was slightly higher than the 95.1 percent in the same month last year.

The number of individuals with jobs totaled 47.70 million, down from June's 50.28 million but higher than July 2023's 44.56 million.

The services sector continued to account for the bulk of employment with a share of 60.8 percent. Agriculture and industry took up 21.2 percent and 18.0 percent, respectively.

Wage and salary workers made up 63.8 percent of all the employed, followed by self-employed workers without paid employees (28.2 percent), and unpaid family workers (5.7 percent).

Employers in family-operated farms or businesses had the smallest share at 2.4 percent.

Socioeconomic Planning Secretary Arsenio Balisacan said the government was working to improve the labor situation by attracting job-creating investments, improving social and physical infrastructure, and offering reskilling and upskilling programs for better job security.

The National Economic and Development Authority which he heads was said to be finalizing the Trabaho Para sa Bayan Master Plan, a framework aimed at improving job opportunities and skills for Filipinos.

"The swift enactment and implementation of the Konektadong Pinoy Bill, and the expansion of upskilling programs are crucial for advancing the country's digital transformation and harnessing opportunities presented by cutting-edge innovation," Balisacan added.

"The Marcos administration is tirelessly working to attract high-quality investments to the country, enhancing the business climate and ensuring that all investment pledges are fulfilled," he continued.

Source: Manila Times

Where Do Remote Talents in the Philippines Want To Work?

The Philippines has improved its ranking by 11 spots since 2020 in terms of being a career destination for foreign jobseekers. It has climbed to 56th place in 2023, from 67th in 2020 and 66th in 2019.

However, talent in the Philippines still displays a strong interest in relocating abroad for work. This is according to Decoding Global Talent 2024 by Jobstreet by SEEK, Boston Consulting Group, and The Network.

How the Philippines Was Ranked as a Career Destination

Decoding Global Talent 2024 is based on a survey of 150,735 respondents in the workforce from 188 countries, with up to 91 percent of them living in their country of origin. Up to 38 percent of the global respondents also have a bachelor's degree.

According to the study, "The global perception of the Philippines as a place of employment for those seeking opportunities abroad has seen a notable uptick, with its ranking improving by 11 spots since 2020, reaching number 56 in 2023. However, it is still far compared to top global countries and ranks low within Southeast Asia (SEA)."

Global respondents gave the following reasons why they chose the Philippines for work:

• welcoming culture and inclusiveness (52%)

• perceived good quality of life (45%)

• cost of living (43%)

• quality of job opportunities (43%)

• friendly environment (43%)

• work permit processes (23%)

• stability and security (23%)

The following factors, however, ranked low: opportunities for citizenship (16%), digitalization (16%), and healthcare (15%).

Among the job seekers expressing interest in working in the Philippines are those from Malaysia, Singapore, Indonesia, and even the U.S. and Canada.

Filipinos Still Want to Work Abroad

Despite these survey results among foreigners, up to 80 percent of Filipino talents have expressed readiness to relocate abroad for work. This number is higher than the rest of Southeast Asia, which has a 68 percent readiness, and globally, which has 63 percent readiness.

Reasons for Filipinos to work abroad:

• Financial and economic reasons (80%)

• general career considerations (65%)

• better overall quality of life (64%)

• concrete job offer (60%)

• personal growth and cultural experience (53%)

• better social system and healthcare (53%)

• better educational and training opportunities (45%)

• more interesting and challenging work (42%)

These numbers are all significantly higher than the SEA and Global average.

There is also a difference when it comes to the age of candidates. Globally, younger jobseekers tend to work abroad; but in the Philippines, this willingness to go to another country for a job cuts across all ages.

About 35 percent of Filipinos also said that they prefer to work abroad long-term, without plans of returning to the Philippines. This is another significant difference as overseas workers from neighboring countries keep three-year assignments and then return home.

The expertise of Filipino employees who are looking to relocate is very diverse. Up to 94 percent are in the craft professions, manual, and physical work; 90 percent are in research and laboratory; 87 percent are in engineering and technical industries; and 86 percent are in services and hospitality. Other significant fields include digitalization, education, business management, IT, design and art, and more.

Those in marketing and media are at the lowest percentage, with only 73 percent of them willing to work abroad.

Out of 80 percent of Filipino workers showing interest in international employment, 42 percent of them are hoping to move to Canada. Other countries they want to relocate to are Australia (39%), the U.S. (27%), Japan (23%), and New Zealand (21%).

Top cities to work in globally

It should be noted that the pandemic affected these interests. Back in 2018 and 2020, readiness to work abroad was at 96 percent and 91 percent, showing a huge decline in 2024. Filipino professionals are now also more eager to work remotely for a foreign employer with an 84 percent interest, above Southeast Asia and global trends.

These statistics are based on a survey of 6,498 workforce participants in the Philippines, 76 percent of whom had a bachelor's degree.

PH Decoding Global Talent 2024.pdf

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Source: Philstar