Cities in Southeast Asia to post weaker jobs growth

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Southeast Asian cities are expected to post weaker employment growth this year from last year amid global headwinds, according to UK-based think tank Oxford Economics.

'We forecast that employment growth in major emerging Southeast Asian cities will be positive in 2023, but weaker than in 2022, except for Jakarta,' Oxford Economics said in a report.

It said global trade headwinds are expected to affect labor demand in the manufacturing sector.

This is also expected to indirectly impact labor demand in other sectors.

'On the positive side, the return of Chinese tourists to Southeast Asia should provide some support to employment in a number of cities,' Oxford Economics said.

This development is expected to create employment in the consumer services sector.

Oxford Economics said Manila is expected to stand out due to its high employment growth.

'There, we expect growth to be more balanced across sectors, with a slight tilt toward business services thanks to the city's dynamic business process outsourcing sector,' Oxford Economics said.

Philippine Statistics Authority head Dennis Mapa said earlier the average employment rate in the Philippines for 2022 was at 94.6 percent, up from 92.2 percent in 2021.

Under the Philippine Information Technology (IT) - Business Process Management (BPM) Roadmap 2028, the industry targets 1.7 million full-time employees this year.

Last year, the IT-BPM industry's headcount rose by 8.4 percent to 1.57 million full-time employees.

In major advanced Asia-Pacific cities, Oxford Economics expects slower employment growth this year compared to last year, with the exception of those in China, citing weak global macroeconomic conditions that will put negative pressure on output growth and affect jobs.

In contrast, employment is expected to post healthy growth in major Chinese cities, with 2023 expected to be a year of economic recovery given China's post-pandemic reopening.