EDITORIAL – Preserving jobs in a crisis

Labor Day is marked today as the International Monetary Fund is warning of a possible global recession due to the Middle East crisis.

In the most vulnerable countries including the Philippines, which are heavily dependent on imported crude oil and petroleum products, economists are warning of stagflation.

The impact of the crisis is felt by employers and workers alike. Soaring fuel, logistics and energy costs are threatening the viability of businesses. In several sectors, the weakening of the peso to all-time lows is compounding business woes.

An economic slowdown can mean downsizing or even business shutdowns. Consumption-driven economies such as the Philippines are especially vulnerable to the ruinous impact of stagflation.

US President Donald Trump faces the prospect of his own “forever war,” and the world is burdened by the consequences of his mess.

Dealing with the economic tsunami rolling across the globe calls for sober responses whose principal objectives must be keeping businesses viable and preserving jobs. This is important particularly in this country where many politicians have a propensity to push for populist measures to promote themselves when crisis hits.

Already, the crisis has forced thousands of overseas Filipino workers to leave their jobs in the Middle East and return to the Philippines. Many of these returning OFWs are unlikely to find jobs in their own country with the same pay levels they have enjoyed abroad. More tragic are the OFWs who have been caught in the crossfire of the war and lost their lives.

If job creation is on hold due to what the government describes as a national energy emergency, job preservation at least can be pursued along with assistance to the most vulnerable workers, the daily wage earners.

Even before the Middle East crisis, jobs in the Philippines were already being heavily impacted by the suspension of government construction projects due to the still unresolved flood control scandal. Employers, workers and the government must work together to minimize the adverse impact of the ongoing energy emergency, and lay the groundwork for a speedy recovery.