Pandemic Unemployment Levels in the Micro, Small, and Medium Enterprises: Evidence from the Philippines

Abstract

Employment in the Philippines has always faced multiple challenges throughout the years. Moreover, it recently encountered the COVID-19 pandemic, which hit the country’s economy in the most unexpected way. Over the last decade Philippine economy has experienced growth, in which were able to provide enough employment to the growing labor force. MSMEs are the imperative reason that the country was able to cater with the expanding labor force. Nonetheless, they are also the most affected with the pandemic. Thus, contributing to the loss of work for many Filipino workers, and reinforcing increase of unemployment in the country. These enterprises who are suffering from financial losses are taking advantage of the pandemic to escape their legal obligations to their employees. The pandemic has brought economic difficulties to many, which leads to that labor issue attempts by companies to circumvent the law by not providing their employees with what they are entitled to.