The Office of the President on Wednesday declared January 2, 2009 as a non-working holiday.

Proclamation No. 1695, signed by President Arroyo Wednesday, described January 2 as "additional special (non-working) day throughout the country."

Mrs. Arroyo said the longer weekend  "encourages families to get together and strengthen their relationshp towards a more productive environment, as well as promotes domestic tourism and enables employers to plan their work schedules effectively and efficiently, resulting in improved productivity."

She directed the Department of Labor and Employment (DOLE) to issue the appropriate circular to implement the proclamation for the private sector.

Executive Secretary Eduardo Ermita said the Department of Trade and Industry first consulted the business community and the labor sector before declaring January 2, sandwiched between New Year's Day and a Saturday, a holiday.

The announcement means that workers will return to work on January 5, instead of January 2. All financial markets will reopen on January 5 after an 11-day holiday that starts on Christmas day, December 25.

President Arroyo has been promoting "holiday economics" to help promote local tourism. But many business firms have been complaining of higher labor costs caused by holiday economics.