More and more companies have expressed intention to expand their workforce as these companies recover from the global financial crisis. This is the result of the recent Business Expectancy Survey conducted by the Bangko Sentral ng Pilipinas http://www.bsp.gov.ph/ for the first quarter of 2010.
Based on the BES conducted from January 5 to February 12, 2010, business confidence index rose to 39.1 percent compared to 22.0 percent in Q4 2009 and -23.9 percent in Q1 2009. This is the highest level the BCI reached in two years. Meanwhile the next quarter index for 2010 stood at 52.6 percent, the second highest level reached since the survey started in 2001.
Moderate inflation, the steady stream of overseas Filipinos remittances, and election-related spending are some of the factors that encouraged the respondents to expect higher spending that will spur business activity. Furthermore, firms expected that continued foreign investment inflows would help provide funds for economic expansion.
The survey also stated that business optimism is present in all sectors, with the construction and service sectors expressing heightened optimism.
As for hiring new workers, employment outlook index for the next quarter reached an all-time high of 22.0 percent. The employment outlook was particularly favorable for the construction and services sectors, (e.g., the financial intermediation, renting and business activities, real estate and hotel and restaurant sub-sectors) as these companies gear up for heightened demand during the summer season and the May political exercise.
However, competition, weak demand, which leads to low sales volume, and financial problems are the key challenges that businesses will face this year.
Based on the BES conducted from January 5 to February 12, 2010, business confidence index rose to 39.1 percent compared to 22.0 percent in Q4 2009 and -23.9 percent in Q1 2009. This is the highest level the BCI reached in two years. Meanwhile the next quarter index for 2010 stood at 52.6 percent, the second highest level reached since the survey started in 2001.
Moderate inflation, the steady stream of overseas Filipinos remittances, and election-related spending are some of the factors that encouraged the respondents to expect higher spending that will spur business activity. Furthermore, firms expected that continued foreign investment inflows would help provide funds for economic expansion.
The survey also stated that business optimism is present in all sectors, with the construction and service sectors expressing heightened optimism.
As for hiring new workers, employment outlook index for the next quarter reached an all-time high of 22.0 percent. The employment outlook was particularly favorable for the construction and services sectors, (e.g., the financial intermediation, renting and business activities, real estate and hotel and restaurant sub-sectors) as these companies gear up for heightened demand during the summer season and the May political exercise.
However, competition, weak demand, which leads to low sales volume, and financial problems are the key challenges that businesses will face this year.
Trabaho.com thanks its following sources:
Bangko Sentral ng Pilipinas Media Release. Businesses are more Confident in Q1 2010 (Posted February 25, 2010) Retrieved March 1, 2010 from
http://www.bsp.gov.ph/publications/media.asp?id=2271
Agcaoili, Lawrence, The Philippine Star. Local firms in hiring mode – survey (Posted March 1, 2010). Retrieved March 1, 2010 from
http://www.philstar.com/Article.aspx?articleId=553769
Gomez, Lailany, The Manila Times. Job prospects brighter in 2nd quarter. (Posted March 1, 2010) Retrieved March 1, 2010 from
http://www.manilatimes.net/index.php/business-columns/12407-job-prospects-brighter-in-2nd-quarter
Gomez, Lailany, The Manila Times. RP businesses turn more optimistic (Posted February 26, 2010) Retrieved March 1, 2010 from
http://www.manilatimes.net/index.php/business-columns/12247-rp-businesses-turn-more-optimistic
Remo, Michelle, Philippine Daily Inquirer. BSP’s employment outlook index hits all-time high (Posted February 28, 2010) Retrieved March 1, 2010 from
http://business.inquirer.net/money/topstories/view/20100228-255923/BSPs-employment-outlook-index-hits-all-time-high
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