Study: More Filipinos adapting to ‘hustle culture’
Majority of Filipinos juggle multiple jobs to boost their income sources in what market research firm Kantar called an emergent “hustle culture” in the Philippine workforce.
“We’ve observed that this behavior has resulted [in] a ‘hustle culture’ among Filipinos, as they try to earn more but at the expense of time for chores, personal interests and other activities,” Laurice Obama, consumer and shopper insight director at Kantar Philippines, said in a statement.
Obama cited Kantar’s survey of 2,000 households from February to April showing that seven out of 10 Filipinos manage their family’s finances by moonlighting or starting a business on the side.
Apart from the majority of the surveyed households, 19 percent said they were “struggling to keep afloat” because of retrenchment or working less hours, which reduce their take-home pay.
Only around 8 percent said they were comfortable with their economic situation.
Household spending
According to recent data from the Philippine Statistics Authority (PSA), household spending dropped to 4.6 percent in the second quarter from 5.5 percent in the same period last year.
Filipino consumers, according to the study, usually buy soft drinks, coffee, water, milk, instant noodles, biscuits and crackers when they visit the grocery stores.
But those struggling with their finances remain “mindful” of their purchases, as they cut expenses by making their grocery list shorter to make ends meet.
“In their buying decision, [the study shows] that those who are managing are stretching their funds to get more value for their money,” Kantar said.
“This group does grocery shopping less often and are buying even less than what they intended to when they visit stores,” its study noted further.
These cash-strapped consumers not only trim their grocery expenses but also look for discounts.
According to PSA’s data, consumers spend less on clothing and footwear. The primary contributors to consumption are transportation, housing, water, electricity and gas, among other priorities.
Assets growing
Kantar’s survey showed that 52 percent of respondents believe this will be their status quo in the next 12 months, 7 percent expect things to get worse and 41 percent believe their situation will get better.
On the other hand, a recent study by Allianz Global said net financial assets per capita in the Philippines grew by 13.2 percent year-on-year to 1,940 euros (P121,000 based on current foreign exchange rates) in 2023, placing the country in the 49th spot out of 60 economies covered by its latest “Global Wealth Report.”
While that figure still kept the Philippines among the poorer countries in Asia, the growth of its financial assets increased by 13.2 percent, the fastest clip in six years and well ahead of China or India, Global Allianz said.
Allianz Global said the 16 percent jump in asset class securities was the “main driver” of growth.
Other financial assets like bank deposits grew “strongly” at 9.1 percent, while insurance and pensions rose 9.8 percent.
But Allianz said insurance and pensions remained “underweighted” in Filipino households’ portfolios with a share of 7 percent, way lower compared to the 57 percent share of bank deposits.
But while wealth rose, the growth in liabilities of Filipinos also continued at 12.9 percent. As a result, Allianz Global said the debt ratio climbed to 27.1 percent last year, which was “still at a rather low level.”
“2023 was marked by sharp monetary tightening. But economies proved resilient and markets even boomed,” the report said.
Overall, Allianz Global said financial assets of private households worldwide recorded strong growth of 7.6 percent last year, making up for the 3.5 percent losses in 2022. Total financial assets amounted to 239 trillion euros at the end of 2023.
By region, financial assets of Asian households increased by 7.5 percent in 2023 to 63.8 trillion euros, a quarter above the level in Europe. All asset classes contributed to this increase, with bank deposits being the main driver after rising by 9.3 percent. —WITH A REPORT FROM IAN NICOLAS P. CIGARAL INQ
