The Metro Bacolod Chamber of Commerce and Industry on Thursday said it expects more businesses to lay off workers or shut down altogether as a result of decreased profits.

MBCCI External Vice-President Jose Ma. Zayco said the economic crisis has finally hit the provinces and some businesses will eventually close or retrench workers to cope with the decrease of sales due to low demand.

"Since many have lost their jobs, they now have less buying power or some might cut down on unnecessary spending and prioritize their basic needs. This crisis calls for us to tighten our belts," Zayco said.

He said those directly affected are the transportation and restaurant or fastfood industry because consumers will now cut down on expenses.
 
The MBCCI said that the government should quickly come up with ways and mitigating measures to cushion the impact of the crisis, especially on the low-income earners and the jobless.

The International Labor Organization on Thursday said Philippine lawmakers should concentrate on creating more jobs in the country as the global crisis threatens to increase unemployment in Southeast Asia and the Pacific to 6.0-6.4 percent this year.

ILO labor economist Steven Kapsos said economic growth in the Philippines is expected to fall from 4.2-4.5 percent in 2008 to 2.3-3.4 percent this year, which is likely to have a negative impact on the labor market and people's livelihoods.

"We haven't yet seen large increase in unemployment in the Philippines, but the crisis is also likely to affect workers in other ways that are somewhat more difficult to measure, such as declining hours of work (an increase in part-time work), pressure for lower wages and less job security," he said in an interview.

According to ILO's Global Employment Trends report, global unemployment in 2009 could increase by a range of 18 million to 30 million workers, and more than 50 million if the situation continues to deteriorate.

Kapsos said that while the Philippines' large fiscal reserves and surplus could help address the problems of the global crisis, lawmakers should concentrate on implementing policies that would create more jobs in the country.

"Appropriate policies must be designed and implemented. It is important to identify ways to create jobs amidst the crisis and to ensure that the poor and most vulnerable do not slip further behind.  This will help to ensure that a recovery occurs sooner rather than later," he said.

He said one scenario facing the Philippines is a "negative cycle of declining demand, falling output and rising joblessness and poverty."