Layoffs continue as virus guts business
DESPITE government attempts to allow more businesses to resume operations, another 9,500 workers were permanently displaced since last week as the novel coronavirus disease (Covid-19) continues to impact enterprises. As of Monday, the Department of Labor and Employment (DOLE) said the number of workers who lost their jobs is now at 121,921 from 112,414 a week ago. Of these employees, 110,934 were employed by 4,454 firms which reduced their workforce, while the remaining 10,987 are from 501 establishments which permanently shut down their operations. Industries which suffered the most from labor displacement were the administrative and support service activities industries (31,816); other service activities (18,000); and manufacturing (17,295). National Capital Region (NCR) still has the most number of displaced workers at 50,696 followed by Calabarzon (29,833) and Central Luzon (14,882).
Persistent effects
LABOR Assistant Secretary Dominique Tutay said they expect the mass displacement will persist this year because of the Covid-19 crisis. “Business is in a tight position because there are still restrictions and health protocols that need to be observed. Full potential of business is not maximized. Customers are also afraid to go out because of the threat of the pandemic,” Tutay told the Businessmirror in a Viber message. The DOLE said it is banking on its post-covid-19 recovery plan to assist the displaced workers by providing them alternative employment in the construction and medical sector. However, former dean of University of the Philippines-school of Labor and Industrial Relations (Up-solair) Rene E. Ofreneo said DOLE will face a difficult task transitioning most of the displaced workers, who come from a different sector for the available job vacancies. The former labor undersecretary said he expects the effects of Covid-19 on the economy and labor market will continue up to 2022.
Opening the economy
DURING the online press briefing on Monday, chief implementer of the government’s national policy on Covid-19 Carlito Galvez said the government is now considering implementing a “hybrid” general community quarantine (GCQ) in NCR as recommended by its mayors. Under the scheme, he said, there will still be quarantine restrictions in the region, but they will open up more economic activity. However, in exchange, Galvez noted the private sector should “take equal responsibility for containing the spread” of Covid-19. He also pointed out that localized lockdowns will play a crucial role toward realizing this policy.
See “Layoffs,” A2
Layoffs... Galvez said the proposal is subject to the approval of the Inter-agency Task Force for the Management of Emerging Infectious Diseases (IATF).
Unlikely downgrade
CITING the rising incidents of Covid-19 cases and diminishing critical care capacity in the NCR, presidential spokesman Harry Roque said it is now unlikely for Duterte to ease the existing GCQ classifications of NCR. Heath Undersecretary Leopoldo Vega agreed with Roque, saying that the critical care utilization rate in NCR is already in “danger zone.” “We are trying to prepare public hospitals, especially the government retained hospitals, so they have to adjust the number of their ICU [intensive care unit] beds because we have to be ready for this because we’re in a crisis and we are also asking the private institutions to implement the 30-percent allocation for beds, especially if there is a rise in the number of Covid cases,” Vega said. Roque said President Duterte is expected to announce the new community quarantine classifications for NCR and other areas of the country on Wednesday.