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Overseas news
In the US, employers cut over 150,000 jobs in October. This was according to data from outplacement specialist firm Challenger, Gray & Christmas. The cut was the biggest for the month in over 20 years.
Employment is used as an indicator of economic health, since there are comparatively more jobs available when the economy is strong and the reverse when the economy is not doing so well.
Meanwhile, the Bank of England (BoE) kept its policy rate at 4% during its Thursday meeting by a narrow 5-4 vote.
Given the far-ranging impact of a policy rate, central banks such as the BoE and the Bangko Sentral ng Pilipinas (BSP) are cautious when making adjustments to their respective rates, depending on the inflation picture.
Local developments
The Philippines unemployment rate dipped to 3.8% in September from 3.96% in August, said the Philippine Statistics Authority (PSA). The current rate is equivalent to 1.96 million jobless Filipinos.
Lower unemployment figures can be a sign of a strengthening economy, as the money spent by people with jobs circulates throughout the financial system and helps it grow.
Further, Philippine GDP growth for Q3 was recorded by the PSA at 4%, much lower than last quarter's growth. This was due to a contraction in government spending, including public construction. Also, gross national income (GNI) growth for the quarter was revised from 8.2% to end at 8%.
GDP is the total value of all final goods and services produced within a country’s borders in a certain period. On the other hand, GNI is the total value of final goods and services produced by a country’s residents and businesses, whether locally or abroad.
Further, the value of agriculture and fisheries production in the Philippines grew by 2.8% year-on-year in Q3. However, this is lower than the 5.7% growth recorded in Q2.
Agriculture contributes roughly 10% of the country’s gross domestic product (GDP) and provides about 25% of all jobs. These, plus the important role it plays in providing food to Filipinos, makes it a significant industry with a nationwide impact.
This mix of news doesn’t hint at big changes happening soon. Avoiding big portfolio decisions might be the right thing to do for now.
