NEDA chief warns PHP35 daily min wage hike could cost 40K-140K jobs in Metro Manila

National Economic Development Authority (NEDA) Secretary Arsenio Balisacan said during a Tuesday Palace press briefing that an estimated 40,000 to 140,000 workers in Metro Manila could lose their jobs due to the PHP35 increase in daily minimum wage.

Balisacan noted that while this adjustment may slightly impact unemployment rates and GDP by just one-tenth of one percent, these effects would be minimal given the country's growing economy and job creation rate of 6 to 7 percent.

Despite some potential job losses, there are still around 600,000 available jobs for affected individuals to choose from, and establishments employing fewer than 15 workers or those affected by disasters can apply for exemption from the wage increase.

The Philippines' GDP expanded by 5.7% in the first quarter, with economists noting that aggregate demand from wage hikes could drive greater consumption spending and be a more sustainable incentive for investments.

Labor Secretary Bienvenido E. Laguesma added that the Department of Labor will link workers affected by the wage hike to job opportunities through reskilling and upskilling programs.