Manufacturing indices remain positive

According to the Institute for Development and Econometric Analysis, Inc. (IDEA), March data of the Monthly Integrated Survey of Selected Industries show that the performance of the manufacturing sector maintains progress, albeit slower than the first two months of the year. The Value of Production Index and the Volume of Production Index both recorded two?digit growths at 21.5 percent and 23.1 percent, respectively, from the same month last year.

Furthermore, accounting for the said increases was the robust production expansion of petroleum products, which was likewise reflected in the National Income Accounts for the first quarter of 2010. According to data from the National Statistical Coordination Board, manufacturing of petroleum and coal products contributed about 6.9 percent to the gross domestic product, a reversal from last year’s negative contribution of 3.98 percent. The other major contributors were food manufactures (5.48%) and electrical machinery (5.2%).

Likewise, the continued positive performance of the manufacturing sector goes hand-in-hand with the upbeat export sector, which grew by 43.7 percent in March. This is believed to be brought by the improving health of the global economy, which has strengthened external demand, despite setbacks such as the Euro zone debt crisis, as well as base effects. Prospects, however, remain cheerful but trouble in the Euro zone and power supply problems might pose some risks to a recovering manufacturing-export sector.

Accordingly, data from the Department of Finance showed that in the first four months of 2010, government subsidies to state firms increased by 8.34% to P4.437 billion from the P4.092 billion from the same period in 2009. The top five recipients of the subsidies were the National Housing Authority, National Telecommunications Commission, National Livelihood Development Corporation, Philippine Coconut Authority and National Kidney Transplant Institute.

Also, per same published report, to strengthen efforts in ensuring that workers are provided with Pag-IBIG Fund and PhilHealth coverage, the Department of Labor and Employment (DoLE) has entered into an agreement of cooperation and understanding providing for closer partnership and collaboration with Pag-IBIG and PhilHealth. DoLE will incorporate the requirements of Pag-IBIG Fund and PhilHealth in its inspection and monitoring of establishments. Moreover, the Labor Force Survey of National Statistics Office showed that the present unemployment rate is at 7.3% with the National Capital Region registering a 10.8% unemployment rate. Newly graduates of 2010 might face narrow chances of getting a job as they compete with an estimated 2.8 million other jobless Filipinos as of January. Fortunately, the leading online job portal, Jobstreet.com, is offering available jobs for the projected 542,000 graduates of 2010 as it services more than 15,000 companies from different locations and industries, according to IDEA.

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