A Change of Guard

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Wednesday, 23 November 2011

Cambodian manufacturing employment still below pre-2008 crisis level in first half of 2011

Tuesday, 22 November 2011
Posted by Serath

PHNOM PENH, Nov 22 - The World Bank said Tuesday that employment in the Cambodian manufacturing sector in the first half of 2011 remained below the level seen before the global financial crisis in 2008.

The bank's half-yearly East Asia and Pacific Economic Update showed that manufacturing employment was less than 95 percent of its pre-crisis level in the six months to June after plunging to 85 percent in 2009 and remaining below 90 percent in 2010. Among other Asian economies, manufacturing employment also remained below pre-crisis levels in Mongolia, the Philippines and Thailand during the first half of this year.

While there was no explanation for the figures in Cambodia and Mongolia, the bank said the situation in the Philippines reflected the absence of a recovery in the electronics sector which accounts for more than half of gross exports. As a result, workers had moved into the services sector. In Thailand, a continued contraction in manufacturing employment reflected a shift of unskilled workers to the faster growing agricultural sector.

Among other economies, manufacturing employment was well above pre-crisis levels in China and Indonesia, with both countries experiencing virtually no declines since 2008.

The report also showed that while real wages in the manufacturing sector trended upwards between the March quarters of 2007 and 2011, those in Cambodia were still below their 2007 levels. During the same period, real wages shot up by about 40 percent in China. Real wage growth was also strong in Mongolia while Thailand and Indonesia experienced more moderate increases.

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