My OperaFinancial Crunch on the Phils.
Tuesday, March 3, 2009 9:25:58 AM
The expanding global financial crisis is expected to release its force in the Philippines just like a big typhoon that will pass-by, unfortunately it’s not that quick. Many are saying that the result would be very unfortunate. As of the moment the crisis is very much felt particularly not just by basic earner employees, but also by executive, professionals and business owners.
Filipinos who are working abroad, even those who are professionals are not sure if they will be retained in their jobs or not. Recently, there are numbers of workers who went back because their company is cutting on labor force or it eventually shut down its operation. The sad part is, some of these workers were in big debt just to get the needed requirements to get the job abroad. Mostly affected are their families, which are their main reason why they do the sacrifice of leaving them and work abroad and look for some good paying jobs to give their family a better future.
According to statistics, the unemployment rate went up in 2006, and 2008 is expected to be worst year. Last year, the labor force grew by 81,000 but the number of unemployed went up by 249,000. This simply means that less jobs are created while more jobs are getting abolished or more people are losing their jobs.
With this crisis, big banks locally and abroad are cutting down on loans and giving credits. Which means small business will be having a hard time getting the loan it needs if they are planning for expansion to create more jobs. Big companies may be force to cut down on their spending to sustain their operations and pay their debts. And its effect to the labor force would be less or no new jobs would be created and worse case scenario employers would cut down on their workforce.
Majority are worried and even experts are having a hard time telling how long this financial storm will last and if we can survive. I am sure that the government is taking the necessary measures to lessen the impact of the financial crisis. And working on some policies that would give at least some economic relief and some long term policy that would benefit not just a few but the majority of the people who needed support by this financial storm that is aiming to hit the country in the next few years.
Filipinos who are working abroad, even those who are professionals are not sure if they will be retained in their jobs or not. Recently, there are numbers of workers who went back because their company is cutting on labor force or it eventually shut down its operation. The sad part is, some of these workers were in big debt just to get the needed requirements to get the job abroad. Mostly affected are their families, which are their main reason why they do the sacrifice of leaving them and work abroad and look for some good paying jobs to give their family a better future.
According to statistics, the unemployment rate went up in 2006, and 2008 is expected to be worst year. Last year, the labor force grew by 81,000 but the number of unemployed went up by 249,000. This simply means that less jobs are created while more jobs are getting abolished or more people are losing their jobs.
With this crisis, big banks locally and abroad are cutting down on loans and giving credits. Which means small business will be having a hard time getting the loan it needs if they are planning for expansion to create more jobs. Big companies may be force to cut down on their spending to sustain their operations and pay their debts. And its effect to the labor force would be less or no new jobs would be created and worse case scenario employers would cut down on their workforce.
Majority are worried and even experts are having a hard time telling how long this financial storm will last and if we can survive. I am sure that the government is taking the necessary measures to lessen the impact of the financial crisis. And working on some policies that would give at least some economic relief and some long term policy that would benefit not just a few but the majority of the people who needed support by this financial storm that is aiming to hit the country in the next few years.
