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Philippines – More than half of businesses use staffing agencies to hire workers

Philippines – More than half of businesses use staffing agencies to hire workers

January 4, 2018

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Over half, or 54%, of businesses in the Philippines with at least 20 workers have hired employees via staffing agencies, according to survey data from the Philippines Statistics Authority.

The Integrated Survey on Labour and Employment data showed of the 691,341 agency-hired workers, the manufacturing industry had the most number of agency-hired workers at 311,722 when the survey was conducted in June 2016.

Rappler reported that the Department of Labour and Employment said 125,000 workers have been regularised, or 62%, of the 2017 target.

In 2017, the Department had released Department Order 174, which sets stricter guidelines for contracting out labour. The Labour Code of the Philippines, under Article 106, allows employers to forge an agreement with contractors to do jobs necessary, but not central, to business operations. Labour unions have since rejected the directive and have called on President Rodrigo Duterte to sign an executive order that will prohibit labour contracting.