NECs’ Worker Protection Mandate Backfires, Accelerating Job Losses

National Employment Councils, originally designed to shield workers, are instead accelerating layoffs and business closures, according to a DailyNews investigation by Brandon Josphat and Brighton Muronzereyi. The probe reveals that rigid wage-setting and high compliance costs imposed by NECs are forcing companies to shed staff or shut down entirely. Industry executives warn that the regulatory burden is undermining the formal labor market, pushing businesses into the informal sector where worker protections are nonexistent. The unintended consequence is a shrinking tax base and rising unemployment, exacerbating economic instability and fueling social unrest. The core vulnerability: a regulatory apparatus that cannot adapt to economic realities is systematically dismantling the formal employment base it was built to protect, leaving workers more exposed than ever.