The National Economic and Development Authority (NEDA) is confident that the negative impact imposed by the recent wage hike is "not that big", NEDA Sec. Arsenio Balisacan claims on Tueday.
In the Presidential Communications Office (PCO) press briefing on Tuesday, NEDA Sec. Balisacan mentioned the possible increase of unemployment rate and minimal effects in the country's Gross Domestic Product (GDP) due to the wage hike.
Over 40,000-140,000 employees may be affected depending on the region and on the amount of wage increase.
On the contrary, Balisacan expressed that this will not leave a permanent effect because of the good state of the labor market and continuous growth of the economy. With this, opportunities will be opened.
The NEDA secretary affirmed that this will not result in closing of businesses. The wage board balanced out the fair return of investment of companies and the needs and purchasing power of the workforce.
