PIDS study: COVID-19 alters PH labor market

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The COVID-19 pandemic significantly disrupted working hours and brought about notable changes in employment patterns across the labor market. The reduction in working hours nationwide, amounting to about two months of full-time work, primarily resulted from adjustments in existing work schedules rather than widespread job losses.

These findings were presented by Dr. Ma. Christina Epetia, former research fellow at the Philippine Institute for Development Studies (PIDS), at a recent PIDS public webinar.

Her study titled “Where Have the Workers Gone since the COVID-19 Pandemic?”, co-authored with research specialist John Joseph Ocbina and senior research specialist Kimberly Librero, explored shifts in annual work hours and workforce reallocations triggered by the pandemic.

Epetia said the Philippines experienced significant shifts, with varying effects across sectors, occupations and demographic groups.

“In countries like the Philippines, initial working hour reductions were primarily intensive adjustments,” Epetia said. This means that workers’ hours were reduced rather than losing their jobs entirely, noting a temporary reversal of the gender gap in work hours as men initially experienced larger declines. By 2021, men’s work hours began recovering faster, narrowing the gender gap anew.

The study also illuminated significant labor market reallocations, with a historic decline in labor force participation as reported by the Philippine Statistics Authority (PSA). While some workers shifted to growing sectors, informal employment surged, eroding pre-pandemic gains in formal job sectors. This coincided with rising unemployment and underemployment rates, underscoring substantial losses in jobs and working hours.

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