DAVAO CITY – The National Economic Development Authority said 8,175 workers were retrenched in the Davao region last year due to the pandemic.
NEDA-Davao said the number of retrenched workers in 2022 was lower by 31.1 percent compared to the 11,871 in 2021.
NEDA-Davao Director Maria Lourdes Lim said that the impact of the pandemic continues to affect the financial resources of companies in the region and this is the top reason for the retrenchment of workers.
Lim said a total of 447 distressed establishments in the region downsized manpower as a result of permanent or temporary closure amid the impact of the pandemic on the local economy.
Majority of these establishments came from the services sector, she said.
Lim said the number of firms that implemented retrenchment in 2022 was lower by 21 percent compared to 566 in 2021.
“The top reason for retrenchment of workers continues to be the financial losses of establishments from the pandemic, and this report implies that more strategic interventions of government are needed to facilitate full recovery of these distressed establishments,” she said.
She said that the region is showing signs of economic recovery from the pandemic as shown by the fewer number of establishments folding up and the increase in the employment rate.
Lim said the region sustained high employment rates throughout 2022, ranging from 95.2 percent to 97.1 percent, as compared to 2021 with 94.5 percent and 95.8 percent, which signals “significant recovery of the region from the adverse effects of the pandemic."
Economic recovery was attributed to the relaxation of community restrictions against Covid.
“This good performance – as far as employment is concerned – was due to the sustained business operations in view of the relaxation of mobility restrictions and voluntary use of face masks. Significantly, the full resumption of accommodation, recreation, and travel services attracted more people to avail of such services,” Lim said.