efficiency through more effective job skills matching … framework for improving labour market...

Policy framework for improving labour marketefficiency through more effective job skills

matching in the Philippines

International Labour Organization

Bureau for Employers’ Activities (ACT/EMP)

and

Employers Confederation of thePhilippines (ECOP)

December 2015

All rights reservedECOP 2015

Policy framework for improving labour market efficiency through more effective job skills matching in the Philippines

The job skills mismatch is a critical concern affecting the Philippines. It occurs when educational and training institutions teach skills that employers no longer demand or when the competencies of graduates do not meet the requirements of employers. The job skills mismatch adds to the challenge of high unemployment in the Philippines where half of the unemployed are youth. If this situation is not addressed it could constrain economic growth and development in the Philippines. As a member of the Association of Southeast Asian Nations (ASEAN), the Philippines will feel the effects of the ASEAN Economic Community (AEC) which will commence at the end 2015. The AEC will result in more liberal flow of goods and skills across ASEAN Member States.

To address this issue, the Employers Confederation of the Philippines (ECOP), with support from the International Labour Organization (ILO) Bureau for Employers’ Activities (ACT/EMP) and the Norway Partnership Agreement, has prepared this skills anticipation policy framework report. The report makes evidence-based policy recommendations to aid in the advocacy for a more productive economy and in building workforce skills that meet industry needs and are suited to the changes brought about by the AEC and other future developments.

One of ECOP’s role is to be a proactive voice of the private sector in addressing the country’s job skills mismatch and high unemployment. This position requires an accurate understanding of industry needs and requirements to offer ECOP the quantitative and qualitative information to influence, communicate and establish reforms in national policies affecting the quality of Filipino workforce.

As such, this policy report is based on the results of primary data collection, extensive research across the multiple stakeholders from both Government and industry and a number of consultative processes across three industries that the current administration has identified as key employment generators. These are the automotive, semiconductors/electronics, and tourism sectors as represented by the major business membership organizations (BMOs) or industry associations that are affiliated with ECOP.

We hope that the results of this policy report will assist ECOP in the advocacy for key labour market reforms and in addressing the skills needs of the private sector. The ILO will continue to work closely with ECOP to accelerate its efforts to

Preface

ii iiiPolicy framework for improving labour market efficiency through more effective job skills matching in the Philippines

implement the policy recommendations contained in this report, with the aim of creating an environment conducive to enterprise growth and development.

Deborah France-MassinDirector of the Bureau for Employers’Activities, International Labour Office

Edgardo LacsonPresident of the Employers

Confederation of the Philippines

ivPolicy framework for improving labour market efficiency through more effective job skills matching in the Philippines

Preface IIAcknowledgement VIIAbbreviations and acronyms IXExecutive summary XI

1. Introduction 1 1.1 Background 2 1.2 Objectives 4 1.3 Methodology 4 1.4 Scope and limitations 5

2. Context 7 2.1 ASEAN Economic Community (AEC) andlabourmarketefficiencyrankingofthePhilippines 8 2.2JobskillsmismatchinthePhilippines 10

3. Current policy environment and programmesaddressing job skills mismatch 19 3.1 Basic education 20 3.2 Specialization 22 3.3Certification 22 3.4 Labour market information 23 3.5 Other interventions: School to work transition 24

4. Problem description and argumentation 25

5. Policy recommendations 31 5.1RecommendedadvocacyoptionsforECOPtoconsider 33 5.2 Detailed structure of recommended advocacy options 34

References 41

Appendix I. Key informant interviews 43Appendix II. FGD participants 44Appendix III. List of programmes/policies in survey and FGDs 45Appendix IV. Survey tool 46

Table of Contents

vPolicy framework for improving labour market efficiency through more effective job skills matching in the Philippines

Listoffigures

Figure 1. Youth unemployment by education, 2009–13Figure 2. Top three human resource concerns by industryFigure 3. A jobseeker’s journeyFigure 4. K-12 tracksFigure 5. K-12 outcomesFigure 6. The Philippine Qualifications FrameworkFigure 7. Sources of DOLE labour market informationFigure 8. Contributing factors to the job skills mismatch in the manufacturing sector

List of tables

Table 1. Estimated employment of selected priority sectors, 2013–16Table 2. Industry associations that participated in the focus group discussions Table 3. 2014 Labour Market Efficiency Global Rankings of seven ASEAN markets Table 4. Female labour force participation (ratio to men)Table 5. Effect of taxation on incentives to workTable 6. Employee group most affected by top three human resource concerns by skill grouping Table 7. Employee group affected by genderTable 8. Rating of training institutions on level of employee readiness of graduatesTable 9. Human resources planning cycle of selected sectorsTable 10. Training programmes provided by companiesTable 11. Awareness and effectiveness rating of government programmesTable 12. Top interventions to address the job skills mismatchTable 13. Structure of recommended advocacy options

viPolicy framework for improving labour market efficiency through more effective job skills matching in the Philippines

ECOP and ILO greatly appreciate the insights from ECOP members and industry associations which have participated in the survey and focus group discussions, most especially to the following organizations:

• Motor Vehicle Parts Manufacturers Association of the Philippines• Chamber of Automotive Manufacturers of the Philippines, Inc. • Philippine Hotel Owners Association, Inc. • Hotel and Restaurant Association of the Philippines• Semiconductor and Electronics Industries in the Philippines, Inc.

The services of Lourdes Espinoza and Teresa Gerena were tapped as external collaborators who developed and drafted the report and acted as resource persons to key activities.

The project was realized and implemented under the auspices of the Project Technical Steering Group constituted by ECOP for this purpose, headed by ECOP Vice President Ranulfo P. Payos and composed of the following members: ECOP Governor Antonio H. Abad, Jr., Mr. Ferdinand T. Diaz, Mr. Ernie O. Cecilia, ECOP Vice President Feliciano L. Torres, Mr. Renato B. Almeda, PHOAI Executive Director Leny Fabul, and SEIPI President Dan Lachica.

Technical support and administrative coordination were done through the ECOP Secretariat, headed by its Director General Vicente Leogardo, Jr. and ably assisted by Deputy Director General Jose Roland A. Moya and Senior Research and Advocacy Manager Romeo D. Garcia and his team in the Research and Advocacy Department consisting of Abigail Roxas, Senior Research and Advocacy Specialist, and Pamela Guevarra, Research and Advocacy Specialist. We also gratefully acknowledge the work of ILO-ACT/EMP colleagues who partnered on this effort, in particular Jae-Hee Chang, Regional Project Coordinator, and Miaw Tiang Tang, Senior Employers’ Specialist.

Finally, we acknowledge with appreciation the financial support from the Norway Partnership Agreement.

Acknowledgement

viiPolicy framework for improving labour market efficiency through more effective job skills matching in the Philippines

AEC ASEAN Economic CommunityASEAN Association of Southeast Asian NationsBLE Bureau of Local Employment BMO business membership organizationCHED Commission on Higher EducationCSR Corporate Social Responsibility DepEd Department of Education DOLE Department of Labor and EmploymentDOST Department of Science and TechnologyECOP Employers Confederation of the PhilippinesFGD focus group discussionGDP gross domestic product ILO International Labour OrganizationMVPMAP Motor Vehicle Parts Manufacturers Association of the PhilippinesNEDA National Economic Development AuthorityOJT On the Job Training (government programme)PESO Public Employment Services Office PHOA Philippine Hotel Owners AssociationPPP public-private partnershipPQF Philippine Qualifications FrameworkPSA Philippine Statistics AuthoritySEIPI Semiconductor and Electronics Industry of the PhilippinesSTEM Science Technology Engineering and MathematicsTESDA Technical Education and Skills Development AuthorityTVET technical and vocational education and training

Abbreviations

ixPolicy framework for improving labour market efficiency through more effective job skills matching in the Philippines

This policy report aims to dissect the job skills mismatch from the perspective of policy-makers, employers and industry observers. The study focuses on three industries that the current administration has identified as key employment generators. These are the automotive, semiconductors/electronics and tourism sectors as represented by the major business membership organizations (BMOs) or industry associations that are affiliated with the Employers Confederation of thePhilippines (ECOP).

This report confirms that the mismatch exists and is affecting the manufacturing sector (automotive and semiconductor/electronics) more seriously than the services sector (tourism). The job skills mismatch is manifested in “hard” or technical skills as well as in “soft” skills referring mainly to communication, interpersonal management skills and values formation.

The current policy environment includes a comprehensive set of initiatives to address the job skills mismatch ranging from reforming basic education to setting national standards of competencies in both technical and vocational skills and in higher education. It includes the Philippine Qualifications Framework (PQF) and efforts to align national standards with ASEAN standards in accordance with the Mutual Recognition Agreement (MRA). In addition, the Department of Labor and Employment (DOLE) also established school-to-work transition programmes for graduates and a labour market information system to facilitate job vacancymatching between graduates and employers (see figure below).

A jobseeker’s journey

Executive Summary

xiPolicy framework for improving labour market efficiency through more effective job skills matching in the Philippines

The private sector has taken an active part in training and has partnered with educational institutions to upgrade skills and familiarize graduates or graduating students with more current technology to serve their immediate requirements. In addition, the private sector engages in curriculum development by designing and conducting dual technology training using their own equipment and by providingcomprehensive on-boarding training for new employees.

While various policies addressing the job skills mismatch are in place, the outcomes indicate weak market orientation, even if the private sector is consulted at every step of the process. Yet, this research indicates the three factors described below are the main causes of the job skills mismatch.

1. Weak labour market information systems. This is a vicious cycle that affects both demand and supply. Labour market information is critical for projecting skills that are needed in the future. This information should also feed into the efforts of educational and training institutions to design and update curricula and course offerings according to the needs of the market. Educational and training institutions continue to offer courses/training that the public (the supply side) perceives as popular or “in demand” overseas rather than addressing the needs of the local economy.

2. Inadequate training. The private sector continues to require graduates that are employable. To raise skill levels, employers have recommended that “soft skills” should be taught early on, even at the basic education level. They also recommend greater investment in training institutions (technical and vocational education and training (TVET) and higher education institutions (HEI)) to keep them abreast of the current body of knowledge and the latest technology.

3. Weak support for science and technology. The core of the manufacturing sector is strong research and development (R&D). The country’s investment in R&D is low at 0.1 per cent of GDP compared to the global average of 1 per cent. The manufacturing sector of the Philippines needs greater R&D support to become globally competitive and attract talent to science and technology education and careers.

This research paper identifies three areas of private sector involvement that could be more substantial, relevant and effective. It is recommended that the ECOP focus initially on the manufacturing sector for two reasons. First, the contributing factors to the job skills mismatch in that sector are more extensive, and second, manufacturing has greater potential for future value creation. There are three

xiiPolicy framework for improving labour market efficiency through more effective job skills matching in the Philippines

options for the approach of the ECOP to the problem of the job skills mismatch, as outlined below.

Option 1: Institutionalize a market oriented educational system and training

This recommendation calls for the inclusion of the ECOP as a member of the PQF National Coordinating Council (NCC) to ensure the private sector is not merely consulted, but that it is represented in the policy-making body. The role of the ECOP is to liaise with its BMOs to determine and specifically define their labour requirements to be acted upon by the PQF NCC.

Option2:Enhancetheexistingvacancydatabase(PhilJobsNet)tocreateafluidlabour market information system

There is an urgent need for a robust and timely labour market information system. The current system, PhilJobsNet, can be used as a platform where job seekers can upload their resumes and employers can post their current vacancies. The system could be enhanced by expanding it to other users and sources of information such as educational and training institutions, public employment service offices (PESO), individual companies or BMOs, so it becomes a resource database to track and project labour demand and supply.

The ECOP could work alongside DOLE to encourage greater participation of the private sector in uploading their current requirements to PhilJobsNet. It could also work with the private sector to aggregate the anticipated requirements of industries in the next five years.

Option 3: Establish a strong innovation culture by reviving the country’s R&D capability

This recommendation addresses the expressed need of the manufacturing sector for greater support in science and technology and the need to improve the R&D capability of the country. This requires advocacy to increase the budget for R&D and to ensure that training facilities and institutions are able to keep abreast of fast changing technology.

Apart from advocating for increased R&D spending from the Government, the ECOP may also work toward identifying potential private sector interventions (individual companies or BMOs).

xiiiPolicy framework for improving labour market efficiency through more effective job skills matching in the Philippines

I. Introduction

One of the most critical issues confronting the Philippines today is high unemployment. As of July 2014, the unemployment rate stood at 6.7 per cent or roughly 2.8 million. One of the main reasons or causes of unemployment is the mismatch between the needs or demand of the business sector and the skills of the labour force.

The mismatch occurs at two levels and impacts two groups: unemployed youth orout of school youth; and educated unemployed people of working age.

The first level of mismatch occurs when there is a shortage of skilled, qualified and competent workers for certain occupations and industries. At this level, workers do not have not enough education to enable them to learn and acquire technical competencies and specialized skills.

The second level of mismatch occurs when educated workers join the labour force but there are not enough jobs for them. The skills they acquired through education are not the skills demanded by the economy. At this level, there is a surplus of workers and shortage of employment opportunities.

According to the 2013 World Bank Philippines Development Report, the central policy challenge facing the Philippines is how to accelerate inclusive growth to create more and better jobs and reduce poverty. So far, inclusive growth has been elusive mainly because of the country’s long history of policy distortions that have slowed the growth of agriculture and manufacturing for the past six decades. Instead of increased agricultural productivity paving the way for the development of a vibrant labour-intensive manufacturing sector and subsequently of a high-skill services sector, the converse has taken place in the Philippines. Agricultural productivity has remained depressed, manufacturing has failed to grow sustainably and a low-productivity, low-skill services sector has emerged asthe dominant feature of the economy.

The Philippines is making improvements in its innovation capacity, according to the Global Competitiveness Index of the World Economic Forum, rising from 75 in 2011 (out of 142 countries) to 47 in 2015 (out of 140 countries). Maintaining this momentum will depend on many factors but skills have a key role to play to support the growing service sector, help improve the competitiveness of the manufacturing sector and enhance the long-term ability of the country to innovate, adapt and assimilate new technologies.

There are indications that demand for skills has kept on growing and that there may be an emerging skills gaps, suggesting that skills are becoming a constraining

1.1 Background

2Policy framework for improving labour market efficiency through more effective job skills matching in the Philippines

factor for the growth of the economy. The report on Skilled Labour Shortfalls in Indonesia, the Philippines, Thailand and Vietnam presents a survey of job vacancies conducted over an 18 month period during 2009–10 (Economist Intelligence Unit, 2012). Nearly two in every three vacancies were found in the services sector and skills gaps were found to be particularly large in the service industry, export sector and technologically intensive sector.

To better provide policy advice to the Government and related educational and training institutions in the Philippines, it is necessary to understand enterprise skills needs and to assess the required skills and competencies in selected major sectors in the Philippines, particularly manufacturing and services (excluding the business process outsourcing industry). The automotive, electronics and hospitality subsectors were selected based on informed discussion with the leadership of the Employers Confederation of the Philippines (ECOP) and the International Labour Organization (ILO) in February 2014 as well as follow-up consultations with the ECOP.

The automotive, electronics and hospitality subsectors have been identified as priority investment sectors in the Philippine Development Plan (2011–16) Midterm Update and are thus identified as key employment generators. These subsectors are also represented in the ECOP membership through their respective industry associations.

Table 1 shows the forecasted employment impact of each sector for the period 2013–16 based on consultations of the Department of Trade and Industry and the National Economic Development Authority (NEDA) in different regions across thecountry.

While the data provided in table 1 show the automotive industry had a relatively low contribution, other sources report higher figures. For example, in 2013 the industry is known to have employed 68,000 people in vehicle manufacturing and another 350,000 in supporting industries (Mills, 2013, p. 18).

Table 1. Estimated employment of selected priority sectors, 2013–16

Prioritysector Estimated employment impactTourism 2 500 000Information technology – business processing management (IT-BPM)

1 300 000

Electronics 350 000Food processing 144 000Chemicals 83 000Garments 36 000Automotive 24 000Iron and steel 11 000Mineral processing 2 000Source: DOLE, 2013, chapter 2, p. 17.


In terms of contribution to gross domestic product (GDP), the tourism industry contributed 7 per cent of GDP in 2012. Latest figures also indicate an increase to 7.8 per cent in 2014 according to the Philippine Statistics Authority (PSA) (2015a). The PSA also reported that the GDP of the Philippines grew by 6.1 per cent (2015b) in 2014. The electronics industry is considered the single largest contributor to total exports, having reached 43 per cent in 2014 (PSA, 2015c). However, in terms of GDP contribution, the PSA estimates the electronics industry to account for 9.8 per cent of GDP in 2013 (Oxford Business Group, no date).

1.2 Objectives The overall objectives of the ECOP skills anticipation policy framework are as follows:

• to improve labour market outcomes in the Philippines through better matching between skills demand and supply in the automotive, electronics and hospitality subsectors; and• to influence the Government to reflect employers’ views and needs in the national skills policy framework.

1.3 MethodologyIn order to meet the research objectives, the study was designed to understand the causes and manifestations of the job skills mismatch at the industry level and at the company or enterprise level.1 Representatives from ECOP-affiliated industry associations were therefore interviewed one-on-one. These interviews were later followed by focus group discussions (FGDs)2 involving companies belonging to these industry associations. The industry associations that participated in this research are listed in table 2.

1 The complete list of key informant interviews is provided in appendix I.2 The list of participants for the FGDs is provided in appendix II.

Table 2. Industry associations that participated in the focus group discussionsIndustry AssociationAutomotive Motor Vehicle Parts Manufacturing Association of the Philippines (MVPMAP)

Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI)

Hospitality Philippine Hotel Owners Association, Inc. (PHOA)Hotel and Restaurants Association of the Philippines (HRAP)

Electronics Semiconductor and Electronics Industry of the Philippines, Inc. (SEIPI)

4

A quantitative survey was conducted among a wider audience of members of the industry associations listed above to validate the findings of the FGDs. The survey was also conducted to measure the extent of skills mismatch at the enterprise level. The survey was conducted from May to October 2015.

In addition to the industry level investigation, five representatives of government agencies and academia were also interviewed to explore and understand current programmes and policies aimed at addressing the job skills mismatch and to identify opportunities for the ECOP to make policy recommendations. The following interviews were conducted:

• Department of Labor and Employment (DOLE) – one interview with the Bureau of Local Employment (BLE) and one interview with the National Wages and Productivity Commission (NWPC);• Commission on Higher Education (CHED) – one interview;• Philippine Association of Colleges and Universities (PACU) – one interview; and• National Competitiveness Council (NCC) – one interview.

Lastly, secondary data collection was conducted to provide additional details to support and validate the interviews.

1.4 Scope and limitationsThisreportdrawsmainlyfromthequalitativedatageneratedfromFGDswithECOPindustry associations, expert interviews and secondary research. As the data werecollectedprimarily fromECOPmembers, itmaynotcompletelyrepresentthe consensus of the entire industry.


II. Context

The Association of Southeast Asian Nations (ASEAN) Economic Community (AEC), scheduled to take effect at the end of 2015, will affect the Philippines job market as different areas of cooperation are implemented. According to the ASEAN Economic Community Blueprint (2008), “the AEC envisages the following key characteristics: (a) a single market and production base, (b) a highly competitive economic region, (c) a region of equitable economic development, and (d) a region fully integrated into the global economy” (para. 8). Furthermore, it specifically says

“other areas of cooperation are also to be incorporated such as human resources development and capacity building; recognition of professional qualifications; closer consultation on macroeconomic and financial policies; trade financing measures; enhanced infrastructure and communications connectivity; development of electronic transactions through e-ASEAN; integrating industries across the region to promote regional sourcing; and enhancing private sector involvement for the building of the AEC. [. . .] An ASEAN single market and production base shall comprise five core elements: (i) free flow of goods; (ii) free flow of services; (iii) free flow of investment; (iv) freer flow of capital; and free flow of skilled labour” (paras. 7 and 9).

Focusing on indicators of Labour Market Efficiency, the Philippines has made marked improvement from 2010 to 2014. On the indicator of pay and productivity, the Philippines advanced by 55 notches on the global rankings, moving up from last place from 2010 through 2013 to fourth place in 2014. Despite improvement in global rankings, the Philippines continues to lag behind many of its ASEAN neighbours.

Table 3 shows the 2014 Labour Market Efficiency Global Ranking of seven ASEAN markets. The Philippines is competitive in two areas, ranking third next to Singapore and Malaysia on labour-management cooperation and following Malaysia and Indonesia on women in the workforce.

At the other end of the spectrum, the Philippines is weakest on hiring and firing practices and ability to attract talent.

2.1 ASEAN Economic Community (AEC) and labour market efficiency ranking of the Philippines


Table3.2014LabourMarketEfficiencyGlobalRankingsofsevenASEANmarkets

Indicator

Philipp

ines

Cam

bodi

a

Indo

nesia

Mal

aysia

Sing

apor

e

Thai

land

Viet

Nam

Philipp

ines

chan

ge*

(201

0–20

14)

Philipp

ines

rank

am

ong

ASE

AN

M

embe

r St

ates

Overall labour market efficiency

91 29 110 19 2 66 49 +20 6

Pay and productivity 27 39 30 2 4 50 23 +55 4

Cooperation b/w labour and management

29 74 48 14 2 32 79 +27 3

Capacity to retain talent

60 51 32 9 8 33 84 +25 6

Reliance on professional management

29 89 28 15 6 51 117 +18 4

Hiring and firing practices

104 13 32 9 3 23 65 +12 7

Flexibility in wage determination

86 92 114 33 7 116 60 +10 4

Female labour force participation (ratio to men)

106 18 112 119 76 67 23 -2 3

Capacity to attract talent

82 56 25 12 2 36 74 +3 7

Effect of taxation on incentives to work

47 34 31 8 4 60 86 -7 5

Note: Data were not available for Brunei Darussalam, the Lao People’s Democratic Republic and Myanmar. *Refers to change in ranking from the baseline.

Source: WEF, 2010; WEF, 2014; Summarized from DOLE (2014).


While the global ranking shows the Philippines has witnessed a decline in indicators of female labour force participation (table 4) and taxation (table 5), the Philippines has held its position constant against other ASEAN markets.Table 4. Female labour force participation (ratio to men)

Table 5. Effect of taxation on incentives to work

Country 2010 2011 2012 2013 2014Change in ranking (2010–2014)

Philippines 104 103 109 111 106 - 2Cambodia 33 35 15 16 18 + 15Indonesia 108 108 113 115 112 - 4Malaysia 111 114 119 121 119 - 8Singapore 86 82 81 84 76 + 10Thailand 57 53 62 65 67 - 10Viet Nam 20 14 19 21 23 + 3

Note: Data were not available for Brunei Darussalam, the Lao People’s Democratic Republic and Myanmar.Source: WEF, 2010–15.

Country 2013 2014 Change in ranking (2013–2014)

Philippinesrank

Philippines 40 47 - 7 5Cambodia 30 34 - 4 4Indonesia 27 31 - 4 3Malaysia 10 8 - 2 2Singapore 4 4 No change 1Thailand 44 60 - 16 6Viet Nam 99 86 + 13 7

Note: Data were not available for Brunei Darussalam, the Lao People’s Democratic Republic and Myanmar. Source: WEF, 2013; WEF, 2014.

A number of articles and research studies have been published on the topic of the job skills mismatch in the Philippines, yet the phenomenon is not unique to this country. It has become a global concern affecting economically developed and emerging markets alike. The job skills mismatch occurs when the economy has a need for skills that the labour market is unable to provide and when available skills are not suited to what the economy needs.

DOLE asserts that the job skills mismatch is a major cause of youth unemployment (currently standing at 15.7 per cent) and accounts for half of the country’s total unemployment (7 per cent) (PSA, 2014). Nationally, 1.456 million youth age 15–24 are unemployed, accounting for 49.8 per cent of all unemployed people.

Figure 1 shows that 39.4 per cent of unemployed youth have invested time and resources in at least a post-secondary or tertiary degree and almost half completed high school (49.3 per cent).

2.2 Job skills mismatch in the Philippines


Figure 1. Youth unemployment by education, 2009–13

Note: Youth age 15–24. All post-secondary data were included in the college category prior to 2012. Source: PSA, Labor Force Survey data available from https://psa.gov.ph/statistics/survey/labor-force.

Across the automotive, hospitality and electronics sectors, the job skills mismatch is considered one of the top three human resource concerns (figure 2).

Figure 2. Top three human resource concerns by industry

Source: ECOP, 2015, Job Skills Mismatch Survey.

Former NEDA Director, Dr Cielito Habito,1 asserted in 2013 that the skills mismatch was a real concern and that it cut across a wide range of high and low skill job categories, and impacted private and public sector jobs. In an article in April 2015, he warned that a persistent skills gap could threaten the momentum of the growing manufacturing industry (Habito, 2015).

3 Cielito Habito is currently Chief of Party, USAID Trade Related Assistance for Development project at Deloitte Consulting, LLP.

11

Table 6. Employee group most affected by top three human resource concerns by skill groupingHuman resource concern Skills grouping

Manager Supervisor High skill

Medium skill

Low skill

Percentages are based on total sample N=33

High turnover due to poaching or pirating from domestic competitors

9% 9% 27% 6% 3%

Lack of supply (required skills are hard to find)

12% 6% 21% 3% 0%

Job skills mismatch (there are job seekers but not appropriate for skills required by company)

0% 0% 18% 12% 9%

High compensation for non-wage earners

0% 3% 3% 0% 0%

High minimum wage/high labour costs

0% 0% 6% 6% 3%

High turnover due to performance 3% 3% 0% 3% 3%

High turnover due to poaching or pirating from overseas.

3% 6% 27% 0% 0%

Lack of key work skills ( for example, teamwork, communication, innovation, flexibility etc.)

0% 9% 3% 0% 3%

Low productivity of employees 0% 0% 3% 3% 9%


Within the context of the automotive, hospitality and electronics sectors, the job skills mismatch is observed in low, medium and high skill positions (table 6). It almost equally affects both genders (table 7).


Table 7. Employee group affected by gender

Human resource concern(Base size used for computing percentages is total sample N=33)

Female Male Both Adjusted female

Adjusted male Total

High turnover due to poaching or pirating from domestic competitors

7% 17% 27% 20% 30% 55%

Lack of supply (required skills are hard to find) 3% 13% 27% 17% 27% 48%

Job skills mismatch (there are job seekers but not appropriate for skills required by company)

7% 10% 17% 15% 18% 39%

High turnover due to poaching or pirating from overseas. 3% 19% 13% 9% 25% 36%

High minimum wage/high labour costs 3% 0% 13% 10% 6% 21%

High turnover due to performance 6% 0% 6% 9% 3% 15%

Lack of key work skills (for example, teamwork, communication, innovation, flexibility etc.)

6% 6% 3% 8% 8% 15%

Low productivity of employees 3% 3% 9% 8% 8% 15%

High compensation for non-wage earners 3% 0% 3% 5% 2% 6%


The job skills mismatch is more pronounced in the manufacturing sector, where technical and professional graduates require additional training to become productive. In contrast, the job skills mismatch in the hotel sector is observed in terms of English language proficiency (both written and verbal skills).

The automotive, hospitality and electronics industries have identified factors that cause the job skills mismatch. These factors are described below.

Inadequate preparation and training

Inadequate preparation and training is attributed mainly to the ten-year basic education system and current technical and vocational education and training (TVET) programmes. Under these systems, students do not gain technical and “soft” skills needed for employment.


Box 1Comments on education and training

“In reality, we are not just after technical skills but say for the manufacturing floor, the engineers will be handling two people and hence they all need leadership competency” (SEIPI FGD).

“We cannot afford to invest in technology and we simply want to hire graduates who are already up to date with technology” (MVPMAP FGD).

“..it boils down to basic education, English and values education” (PHOA FGD).

“We are upgrading our plants and our biggest problem is the skills of entry level employees coming from vocational/ technical schools. They are not skilled and you have to train them for six months to be fully functional. So you have to teach them how to weld for example, the training in vocational/ technical schools is inadequate. It applies to welders, machine workers etc." (MVPMAP FGD).

Companies were asked to rate different training and educational institutions on the quality of their graduates with respect to their level of readiness to join the workforce (table 8). Top tier colleges and universities garnered the highest average score of 2.79 on a four-point scale.

Table 8. Rating of training institutions on level of employee readiness of graduates

Institution Average rating Technical Education and Skills Development Authority (TESDA) 2.35

Public high schools 1.67

Private high schools 1.90

State colleges and universities 2.52

Top tier colleges and universities 2.79

Other private colleges and universities 2.48Note: Four-point rating scale: 4 – sufficient, no further training needed; 3 – adequate with minimal additional training needed; 2 – basic preparation, additional training required; 1 – inappropriate, complete re-training required. Total sample size is N=33.Source: ECOP, 2015, Job Skills Mismatch Survey.

Inadequate information on jobs in demand

Labour market information may not reach job seekers quickly enough. It takes a few years to complete a training course or a college degree, during which time the jobs that are in demand may become saturated or may cease to be relevant. For example, currently DOLE estimates in its JobsFit report that there is a surplus of 200,000 nurses in the Philippines. Many young people pursued a nursing education because the perceived demand from the United States and other developed markets aligned with young people’s ambition for high paying job overseas.


Inadequate information on current level of demand

Bureau of Local Employment (BLE) of DOLE has acknowledged that it cannot always determine current demand for jobs or forecast demand. DOLE conducts annual surveys of vacancies, but the information they collect is limited to the position that needs to be filled. Data are not collected on the number of vacancies. In March 2015, Dominique Tutay, Director of the BLE, stated that a system is still being developed to forecast demand for specific skills or jobs.

Survey results indicate that companies have very short planning cycles (table 9). The majority would only project and plan for the following year at most. This makes it all the more difficult for DOLE to determine the number of vacancies and forecast future demand for skills and jobs beyond one year.

Table 9. Human resources planning cycle of selected sectors

Characteristics (Total sample = 33) Automotive Electronics Hotels TotalPlanningcycle

As needed only 15% 18% 6% 39.4%Every month 9% 9% 15% 33.3%Every quarter (4 times a year) 0% 3% 6% 9.1%Twice a year 3% 0% 6% 9.1%Once a year 0% 3% 6% 9.1%Less often than once a year 0% 0% 0% 0.0%

Periodcovered Immediate need/requirement 9% 18% 9% 36%Up to 3-6 months 6% 6% 9% 21%Needs/ requirements up to one year 6% 9% 18% 33%

Next 2–3 years 6% 0% 3% 9%Source: ECOP, 2015, Job Skills Mismatch Survey.

Inability to continuously update training and education to reflect currenttechnology

Smaller companies tend to depend on government support for training and skills upgrading for employees. Larger companies have started investing in and partnering with educational and training institutions.

Box 2Comments on keeping pace with changing technology

"TESDA is still using the old technology" (SEIPI FGD).

"What is really lacking is training coming from the Department of Science and Technology (DOST). Our knowledge of technology lags behind our competitors and we cannot adapt. Perhaps the big companies like Yazaki could make up for the gap, but small players like us need support --- could the Government provide the training? We could not compete with the manufacturing capabilities of our Asian neighbours” (MVPMAP FGD).

"We have our own program, we expose engineering students in state universities to newer technology" (SEIPI FGD).


Low interest in available jobs

Low interest in available jobs applies to jobs in agriculture, but also to jobs in the more technologically advanced and skills-intensive science, technology, engineering and math (STEM) professions. One participant in the SEIPI FGD commented, “our challenge is how to entice [skilled workers]. The engineers go to either call centres or to the business process outsourcing industry where they get higher pay and easier work. Our industry is the "battle of the brains" type. This generation of recent graduates are not that patient and hardworking and they have high expectations.”

Weak market orientation

Owing to weak market orientation of educational and training institutions, they are not able to keep up with the demands of the industry. This is reflected in the comments from the FGDs. A participant in the MVPMAP group commented “the Government should provide a technical-vocational programme that produces graduates that would match the entry-level skills requirements of the industry”, while a participant in the SEIPI group stated "the university or colleges are really weak. That's why the engineers they produce are not competent enough to be assigned to do certain functions. So we need to provide long term on-boarding training”.

Stringent hiring standards

Hiring companies often have stringent requirements applicants must meet, and may even require qualifications or skills that are not essential to the tasks an applicant will be expected to perform on the job (for example, a call centre agent may be required to have completed a college degree).

Individual mindset and work attitude

Traditionally, Filipinos acquired a college degree and preferred to work toward a board certification or other comparable credential in a profession. More recently, however, the promise of gaining instant wealth by working overseas has convinced many Filipinos to pursue training or education that will qualify them for jobs overseas (for example, nursing, domestic workers, travel, tourism and hotel workers, information technology). A participant in the MVPMAP FGD commented "any high school graduate would like to have a white collar job. Vocational-technical is blue collar job and they don't like that. We need a mindset change", while a participant in the PHOA FGD stated "the thing with culinary, they pay so much, they go abroad and they don't want to start with peeling potatoes (locally)".


Table 10. Training programmes provided by companies

Programmes(TotalsampleN=33) Percentage

Orientation for new hires 97

Technical training for new hires 76

Apprenticeship programs/on the job training 73

Continuing education for current employees 67

DualTech training for potential employees 24

All of the above 6

None 0Source: ECOP, 2015, Job Skills Mismatch Survey.

Companies often rely on their own staff resources for training. The majority of companies (76 per cent) conduct in-house training. A smaller share (58 per cent) rely on external professional training companies to conduct employee training programmes. A third send their employees to technical vocational schools and/or to TESDA.

The job skills mismatch imposes costs on both the job seeker and the hiring company. The job seeker spends a few years in a training programme to acquire a desired skill or professional qualification, yet still does not find a job. Meanwhile, the hiring company invests in employee training that could last anywhere from six months to two years to ensure that the employee can perform independently and productively.

Companies respond or cope by providing employee training and by hiring on a temporary basis, requiring a probationary period or hiring as apprentice first (table 10).


III. Current policy environment and

programmes addressing the job skills mismatch

Secondary data collection and expert interviews have shown that there are already policies and programmes in place that were designed to address the job skills mismatch and its causes. Policy reform is ongoing and programmes are being designed to help address the factors that contribute to the job skills mismatch from basic education up to job facilitation. A comprehensive system has been established involving several government agencies.

Figure 3. A jobseeker’s journey

Figure 3 outlines the process of qualifying for employment and the options available to individuals. An individual earns a degree or acquires skills or qualifications1 through basic education, specialized skills training or higher education. An assessment of his or her competencies will determine if the individual possesses the necessary skills or qualifies to be awarded a degree. Employers look for these qualifications when selecting an individual for a job that needs to be filled.

Government agencies have taken steps to provide programmes to assist an individual every step of the way.

3.1 Basic educationThe Department of Education (DepEd) oversees the basic education system. In 2014, the basic education system in the Philippines was revised to align with the prevailing global practice. Under the new K-12 system, students receive an additional two years of schooling. During this time students are exposed to different tracks for specialization (figure 4) and receive additional career guidance. By the time students graduate from the K-12 system they will be 18 years old and eligible to pursue employment, engage in their own business venture or pursue further specialization (figure 5).

4 The PQF defines ‘qualification’ as “a package of competencies describing a particular function or job role existing in an economic sector, covering the work activities required to undertake a particular job role.”

20

Figure 4. K-12 tracks

Source: Philippine Business for Education, 2015.

Figure 5. K-12 outcomes

Source: Philippine Business for Education, 2015.

As an additional support to the new K-12 system, DOLE developed a career guidance and employment coaching programme for students who are in the final two years of high school (years 11 and 12).


3.2 SpecializationSpecialization involves two tracks, namely TVET institutions and tertiary education through higher education institutions (HEIs).

TESDA supervises technical vocational training. In 1994, the Dual Training System (DTS or DualTech) was legislated. TESDA defines DTS as “a training modality that combines theoretical and practical training. Learning takes place in two venues, the school or training center and the company or workshop.” Moreover, DTS is a ladderized programme, meaning that it enables graduates to pursue college education in the future.

The Commission on Higher Education (CHED) supervises higher education, these are the colleges, universities and professional and graduate schools. CHED’s primary mandate is to set the minimum standard for higher education curricula for all HEIs. CHED also designed a transition programme in collaboration with DepEd to encourage students to pursue STEM courses in their last two years of basic education.

3.3 CertificationTESDA’s mandate includes quality assurance for students of TVET programmes. This is done through an assessment and certification process (figure 6).

Figure6.ThePhilippineQualificationsFramework

Source: TESDA, 2012.

DepEd leads a multi-agency team that set up the Philippine Qualifications System. Its mandate is to standardize the competencies attained through different forms of training and education. The team includes TESDA and CHED.

Executive Order No. 83 was signed in 2012 for the institutionalization of the PQF. The PQF was established with the following objectives: 1) to adopt national


standards and levels for outcomes of education; 2) to support the development and maintenance of pathways and equivalencies which provide access to qualifications and assist people to move easily and readily between the different education and training sectors and between these sectors and the labour market; and 3) to align the PQF with the international qualifications framework to support the national and international mobility of workers through increased recognition of the value and comparability of Philippine qualifications.

The Mutual Recognition Agreement (MRA) (for professionals) aims to recognize equivalent qualifications between countries and facilitates the mobility of professionals within ASEAN Member States covering seven professions (engineering, architecture, medicine, dentistry, nursing, accounting and surveying).

3.4 Labour market informationThrough PhilJobsNet and JobsFit (the annual publication of DOLE labour market information) DOLE is able to collect labour market information, including information on demand and supply, wages and so on. This information is disseminated to different stakeholders, including jobseekers, local government units, national government agencies, educational institutions and employers.

Figure 7. Sources of DOLE labour market information

PhilJobsNet is the official jobsite of the Government, and it provides a job search and application portal free of charge through a computerized job matching and referral system. Jobseekers have easy access to computer kiosks located in malls and government offices for easy access to PhilJobsNet.

PESO is a community-based multi-employment service facility that operates free of charge to clients. Its mandate is to ensure timely and efficient delivery of employment services and provision of information on DOLE programmes.


3.5 Other interventions: School to work transitionThe Special Program for the Employment of Students (operated by DOLE) aims to assist poor but deserving students in the pursuit of education by providing income support or augmenting income through employment.

The JobStart Philippines programme (also operated by DOLE) is designed to enhance the employability of at-risk youth through the full cycle employment facilitation from career counselling to job matching, employer-designed training and internship programmes.

On the job training (OJT) through DOLE encompasses apprenticeships and internships as part of the courses offered by TESDA, TVET institutions and HEIs. Students are required to complete a prescribed number of hours working in a company.


IV. Problem descriptionand argumentation

There are a few points to emphasize to characterize the job skills mismatch in the Philippine context.

1. The three sectors, automotive, hospitality and electronics, define the job skills mismatch in the context of new graduates from basic education, TVET programmes and HEIs. The job skills mismatch is one of the causes of youth unemployment that accounts for nearly half of total unemployment in the Philippines.

2. The job skills mismatch is one of the top three concerns of the automotive, hospitality and electronics sectors, manifested in competitive poaching from local companies and a lack of labour supply. It is observed more in the manufacturing sector, affecting medium, high skilled labour and professionals as compared to the hotel industry sector. The problem has the potential to stall growth in the manufacturing sector.

3. Companies cope with the persistent job skills mismatch by providing additional training to upgrade the skills of new employees (who are TVET and tertiary education graduates) to reach an acceptable level of productivity. In addition, bigger companies, particularly in the manufacturing sector, partner with government agencies like TESDA and CHED to enhance their curricula to be more market/industry oriented.

4. The current policy environment provides comprehensive coverage of factors contributing to the job skills mismatch. Basic education was extended from 10 to 12 years to standardizing outcomes of education and training and to standardize skills and professional certification nationally and across ASEAN markets. Policy reforms were designed to enhance the country’s competitiveness in preparation for the AEC and in response to globalization in general.

While policies and programmes are in place and are being implemented, consultations with key industry and government informants revealed a number of gaps, outlined below.

1. Low awareness prevents the private sector from fully benefitting from existing policies and programmes.

There are a few programmes that the majority of companies are aware of, but table 11 shows that there are significantly more programmes that are unfamiliar to many companies. The more popular programmes are the basic K-12 education system that was recently implemented (91 per cent), followed by OJT at 88 per cent. The table also shows the range of scores given to each programme offered by the Government. The highest average rating of at least 3 (moderately effective) was given to OJT (average rating of 3.3) and DualTech (average rating of 3.1).


It is interesting to note that the programmes with low awareness levels are related to the preparation for the AEC. These are namely the PQF with only 45 per cent awareness level and the MRA with only 39 per cent awareness level.

Table 11. Awareness and effectiveness rating of government programmes

Programme Aware Not aware Average effectiveness rating

Basic K-12 (DepEd) 91% 9% 2.6On the Job Training (DOLE) 88% 12% 3.3Public Employment Service Office (Local government units)

82% 18% 2.6

PhilJobsNet (DOLE) 79% 21% 2.1DualTech (TESDA) 67% 33% 3.1Special Program for the Employment of Students (DOLE)

58% 42% 2.8

JobStart Philippines (DOLE) 52% 48% 2.8PQF (Executive Order 83) 45% 55% 2.4MRA 39% 61% 2.6Note: Four-point rating scale: 4 – very effective; 3 – moderately effective; 2 – minimally effective; 1 – not effective at all.Source: ECOP, 2015, Job Skills Mismatch Survey.

2. The shift in basic education, while seen as a long term solution that will address better streaming of students into different education/training pathways, created an artificial supply shortage. The total implementation of K-12 education nationwide did not take into account labour supply shortages for the first couple of years in industries (such as electronics) that are heavily dependent on new graduates. The absence of new graduates in 2016–17 pushed up the labour costs of the electronics industry. Instead of hiring new graduates, employers are now hiring those with experience. The electronics sector forecasts that the problem will continue until 2020.

3. Job skills mismatch can only be resolved with a more market-oriented approach. Market orientation requires labour to keep up with the current needs of the economy and anticipate its future needs as well. This requires not only a more adaptable educational system but also training in soft skills so that students are more able to adapt to the changing needs of the market.

In terms of market demand, it is ever changing, like jobs that were in demand a year or two ago may no longer be needed in the future. What we are emphasizing to the supply (labour) is the lack of soft skills that would allow workers to adapt to the ever changing work environment. Most of our supply now do not possess this kind of attitude so if they don’t like to work in the company then they would go elsewhere. So that’s how we are leaning on our employment facilitation programmes, we emphasize on the soft skills or the life skills (Director Dominique Tutay, BLE-DOLE).


4. Market orientation also implies forging closer ties with demand-side stakeholders. Figure 8 depicts the gaps in the manufacturing sector.Figure 8. Contributing factors to the job skills mismatch in the manufacturing sector

a. Insufficient supply. More than half the country’s GDP is accounted for by the service sector (business processing and outsourcing, tourism and retail) and the more popular jobs are in the service sector. These jobs are likely to be well advertised and talked about. Students, parents and the public at large is exposed to this information and it impacts decision on what career path people choose.

b. Inadequate training. The private sector asserts that graduates from educational and training institutions are generally not job-ready and they require further training in order to be productive. The main problem is the inability of training institutions to keep up with the changing technology.

Box 3Comments on inadequate training

“Other companies don’t have that partnership with academe. We provide the equipment to try and upgrade the skills, TESDA’s approach is very conservative (because they use old machines) (Auto industry key informant interview).

“TESDA relies on the industry because the (industry) invests and TESDA doesn’t. TESDA has the old technology…their training should be tailor fit to the industry needs” (MVPMAP FGD).

“We are upgrading our plants and our biggest problem is the skills of entry level employees coming from technical/vocational schools. They are not skilled and you have to train them for 6 months to be fully functional” (MVPMAP FGD).

‘We partner with the academe to fill in the gaps, for example, we designed a ladderized automotive engineering program. In the first 2 year, you can be employed but you can pursue the automotive engineering course in the future. We had difficulty getting approval with TESDA for the course and so we went to the academe (Auto Industry key informant).


c. Weak support for science and technology. Like the private sector, the educational system is demand-driven and interest in science and technology courses is very low. This makes it harder for schools to invest in science and technology courses and curriculum, therefore making access to such courses even more limited.

“Statistics show that out of nearly 3.5 million Filipinos in colleges and universities only 549,000 are in STEAM disciplines (Science, Technology, Engineering, Agro fisheries, Mathematics). The Philippines is 90% water, one fishery school has only two enrolees. Last year, we produced only 2,182 mathematicians, barely 3000 science graduates, and many of engineering graduates are in civil engineering (Dr. Napoleon Juanillo, CHED).

There is also very little investment in R&D. Data show that the Philippine investment in R&D is equivalent to 0.1 per cent of GDP when the global average is around 1 per cent of GDP.

“There is a correlation between having a set of thinkers and innovators in the country and economic progress and productivity. In terms of innovative productivity, that’s Lao PDR and Philippines got the lower rank on par with Cambodia and Myanmar. If I may say, Cambodia is now thousands of years of civilizations interrupted by war and colonial conflicts together with Myanmar, they will catch up. They used to the study in the Philippines” (Dr. Napoleon Juanillo, CHED).

And while the private sector steps in to help, there are procedural barriers that prevent large enterprises from intervening in a timely manner.

“The problem here is support of the Government (in handling donated equipment). The only thing is you can't release or transfer equipment because the school cannot process the necessary documentation … it's mainly a problem of bureaucracy" (SEIPI FGD).

d. Labour market information. The link between jobs and the labour market is hampered by the lack of available information on supply and demand. Moreover, DOLE is unable to provide estimates of current and future demand.

“The problem is identifying the numbers of how many are really in demand for a specific occupation or skills. In our consultations the employers cannot say. They know they lack this and that but in terms of how many, they could not tell us. They should be able to tell us” (Director Tutay, BLE-DOLE).

Labour market information is also a crucial component for schools to become more responsive to the needs of the industry in terms of updating their course offerings to address the needs of industry and the economy. Lastly, access to information on jobs and occupations in demand and those that are saturated with applicants would help to guide students and their parents when they select courses of study.


V. Policy Recommendations


The role of the ECOP is to be the voice of the private sector in addressing the country’s job skills mismatch and high unemployment. This position requires an accurate understanding of industry needs and requirements to offer the ECOP the quantitative and qualitative information to influence, communicate and establish reforms in national policies affecting the quality of the Filipino workforce. This will aid in achieving a more productive economy and workforce that is prepared for the impact of the AEC and beyond.

The proposed policy framework and advocacy strategy is based on the results of extensive research across the multiple stakeholders from both Government and industry. It highlights the gaps that exist in current programmes.

The FGDs and interview were consistent with the survey results. Recommendations were ranked to address gaps respondents identified. Table 12 shows the interventions recommended for bridging the gaps cited as well as the role of the ECOP which guided the design of the framework and the actions proposed. This study focuses on the top three as ECOP interventions.

Table 12. Top interventions to address the job skills mismatch

Recommended interventions Total ProposedECOPintervention

Strengthening the linkage between education/training institutions and private sector in developing market oriented curriculum and training programmes

97% 91%

Establishing an information system that will update DOLE with the private sector requirements for jobs and skills.

58% 42%

Capacity building for TESDA to improve its ability to provide up to date training programmes that match the needs of companies

49% 42%

Tax incentives for companies that offer training programmes to their employees

36% 42%

Strengthening information dissemination targeting high school students and their parents on jobs that are in demand for the domestic labour market.

24% 33%

Encouraging public-private partnerships (PPPs) for technical skills training

9% 6%

Standardizing learning outcomes of apprenticeship programmes of companies

6% 18%



5.1 Recommended advocacy options for ECOP to considerThe three areas for the policy recommendation are as follows: (1) to institutionalize market oriented education and training; (2) to enhance the existing jobs database (PhilJobsNet) to create a fluid labour market information system; and (3) to establish a strong innovation culture by reviving the R&D capacity of the country.

In addressing these three top areas, the role of the ECOP as the collective voice of the private sector can be strengthened through evidence-based advocacy to achieve greater impact and change in the current landscape.

Among the three industries of this paper, the automotive sector is seen as the most ideal to pilot the recommendations as a first phase. This industry is the most crucial target of current efforts and it could serve as a pilot for each recommendation, as it has the support of the Government through the CAR Program and because of its geographic concentration in the country.

Recommendation 1: Institutionalize a market-oriented educational system and training

The ECOP recognizes the need to strengthen the linkages between CHED, TESDA and industries so as to design educational and training programmes that addresses not only the current or immediate requirements of industries but also the long-term economic development goals for a workforce that can adapt and meet future skills requirements. Therefore the ECOP will urge DepEd (chair) to include the private sector and request for its inclusion within the PQF NCC, the oversight body that sets the standards for qualification outcome, where the participation of the ECOP will influence processes and incorporate the actual requirements and projections of industries.

Recommendation 2: Enhance the existing vacancy database (PhilJobsNet) tocreateafluidlabourmarketinformationsystem

The ECOP acknowledges the need to support the Government’s economic development plans and DOLE programmes to guide jobseekers and provide relevant information that reflects the private sector’s requirements. There is urgent need for a robust labour market information system that will be able to provide updated data to both DOLE and educational institutions on the requirements and projections for jobs and skills for priority industries. Such a system would also enable the effective dissemination of information to all stakeholders. This would bridge an important gap and facilitate the actual matching of the supply side and the demand side of employment through an information system. A protocol


could be designed for vacancies to be posted in this site as a requirement as a central resource system for both jobseekers and providers.

Recommendation 3: Establish a strong innovation culture by reviving the R&D capacity of thecountry

Based on the research, the ECOP noted the need for education institutions to provide quality technical skills to the local private sector, hence training needs to comply with market requirements and support the Philippines’ position as a productive and competitive economy within the ASEAN region. Beyond these immediate needs, the research captured the need to revive a workforce that innovates and creates. The research pointed to the declining interest in technical careers and STEM-related courses. Nevertheless, the research indicated that there is interest in the Philippines in building a labour force that holds a place of excellence in soft skills and technical skills alike.

To achieve such an overall mindset change, the budget for R&D must be sufficient to create jobs for STEM graduates and attract foreign talents or overseas Filipino scientists to return to work in the Philippines.

5.2 Detailed structure of recommended advocacy options Elections are scheduled for May 2016, and therefore the continuity of current programmes, or the lack thereof, will depend on the next president and the incoming policy-makers. The plan set out in table 13 was designed considering the current administration’s programmes which will only continue to be relevant if the same party wins. If the opposition wins, based on historical precedent, an overhaul of current programmes will occur which will change the basis of this strategy as well as its timing.

For the ECOP to successfully influence policy-makers and stakeholders, a structure has been proposed with identified objectives and stakeholders for each recommendation as well as advocacy activities that will ensure objectives are attained. There are some internal considerations that this research could not account for, such as organizational capacity to undertake proposed activities. Each recommendation requires resources and timelines that are dependent on internal processes.


Table 13. Structure of recommended advocacy options

Policy recommendations

Advocacy goal Advocacy objectivesPartners and alliances

Recommendation 1Market Oriented Education/Training

Advocate for stronger private sector role in developing industry oriented curriculum and training programmes

For ECOP to be the private sector representative in the PQF, National Coordinating Committee.

ECOP will urge the Department of Education (chair) to include private sector and request for its inclusion within the PQF National Coordinating Committee

Objective 1:To initiate dialogues with private sector and the different t e c h n i c a l working groups within the PQF National Coord inat ing Committee and set up industry specific teams.

Objective 2:To facilitate and identify PPP oppor tun i t ie s to encourage i n v e s t m e n t s in R&D and m o d e r n i z i n g t r a i n i n g institutions to keep up with the demands of the industry/economy.

– ECOP– Department of

Education– TESDA– CHED– Industry

Associations– PCCI– Professional

Regulation Commission


Proposed Activities

1. Hold Policy dialogues and forums among key stakeholders2. Hold face-to-face meetings with different Policymakers

representing the different agencies3. Provide technical information and recommendations to the

Committee4. Pilot ECOP’s facilitation role with the automotive industry

where they are in the stage of revitalizing the industry through the Comprehensive Automotive Resurgence Strategy (CARS) programme or SEIPI. Both industry associations have existing initiatives in curriculum development, DTS. It would be good to formalize identification of critical skills and work toward curriculum development (TESDA or CHED) starting off with critical skills required by these industries.

Organizational Requirements

1. ECOP to select a representative to PQF. To ensure continuity of private sector involvement, it is suggested that the PQF representative is a permanent employee of ECOP.

2. The ECOP representative should be supported by a team of industry (automotive, electronics, hospitality) or sectoral coordinators (agriculture, manufacturing, services).

3. Technical Working groups would need to be set up to discuss industry specific needs/requirements and also to set minimum criteria for cross cutting professions/skills.


Policy recommendations Advocacy goal Advocacy objectives Partners and alliances

Robust labour-market information system that will update both DOLE and Educational Institutions with current requirements and projections for jobs and skills for priority industries and effective dissemination/sharing of information to all stakeholders. This is a recommended enhancement/expansion of PhilJobsNet. Recommendation 2

DOLE and ECOP will issue new protocols/guidelines for collection and distribution of labour information and requirements, by maximizing existing labour market information data collection mechanisms coming from supply side sources (applicants, education/training institutions) + demand side sources (industry level data from industry associations)

The ECOP recognizes the overall need to support Government’s economic development plans therefore ECOP urges the private sector to share companies’ labour needs for growth and initiate with DOLE

Objective 1:• To establish a

efficient data sharing system between Government agencies and the private sector

• Strengthen existing network of data collection points (e.g. PhilJobsNet; LMI; JobsFit)

Objective 2:• To encourage

private sector compliance and participation in providing the required information (as aggregate sector information) and require posting of job vacancies in PhilJobsNet

Objective 3: • To encourage

participation from general public in the workforce and joining the workforce to register with PhilJobsNet

– ECOP – DOLE– Local

government units (PESO)

– TESDA– CHED – HEIs– Industry

associations– NEDA– PSA


Proposed Activities

1. Hold educational briefings and events2. Arrange site visits or study tours to validate situation 3. Provide technical recommendations4. Create an automated system to ensure ease in operation 5. Pilot a number of PESO offices to provide baseline skills survey

data to complement census surveys done by PSA.6. Pilot enhanced PhilJobsNet to fold in PESO skills survey into the

DOLE PhilJobsNet database7. Educational/training institutions to update PhilJobsNet semi-

annually on number of graduates and certifications issued.8. Pilot ECOPs role using one industry (e.g. Automotive) and DOLE

in consolidating information on current job skills requirements, short term and long term requirement.

9. The ECOP can leverage on strong relationship with DOLE to implement this advocacy strategy. A team will need to be set up to facilitate and encourage compliance with industry associations

10. DOLE to provide access to ECOP and industry associations/individual companies to update information in PhilJobsNet.


The ECOP can leverage on strong relationship with DOLE to implement this advocacy strategy. A team will need to be set up to facilitate and encourage compliance with industry associations.DOLE to provide access to ECOP and industry associations/individual companies to update information in PhilJobsNet.


Policy recommendation Advocacy goals Advocacy objectivesPartners and alliances

Recommendation 3

Establish a strong innovation culture by reviving R&D capability of the country.

Increased budget for R&D spending to create jobs for STEM students and attract foreign talents or overseas Filipino scientists to work in the Philippines.

The PQF National Coordinating Committee will establish a clear direction and training programme for industries to strengthen R&D capabilities of key industries with high value adding growth and employment potential

The ECOP recognizes the need for the Education Institutions to provide quality technical skills to the private sector locally hence, training needs to comply with market requirements as well as support the Philippines’ position as a productive and competitive economy within ASEAN.

Objective 1:- To design a battle cry for the industries that require a boost in technical knowhow (supply) and to grow the need to establish a strong Research and Development (R&D) “culture” in the country

Objective 2:- To encourage private sector investment in modernizing training institutions through PPP and/or sponsoring scholarships to strengthen STEM capability of the country

– DepEd– TESDA– CHED– NEDA– MEDIA– DOST– Congress– Industry

associations


Proposed Activities

1. Five high-level champions in DepEd, CHED, TESDA, NEDA will make public statements in support of STEM and Priority Industries by December 2016

2. Launch public awareness campaigns through PESO3. Engage media to cover the initiative4. Utilize email, phone calls, letters, petitions and social media to

mobilize constituents to contact policymakers5. Reviewing existing policies to remove barriers that discourage

private sector from investing in R&D or in helping modernize training institutions.


1. ECOP’s advocacy team to work with private sector reps and DepEd, DOST, NEDA to develop a battle cry to increase awareness of the relevance of STEM in nation building and to find a way to incorporate this in basic education curriculum.

2. ECOP to form a team to pilot with one industry to identify structural barriers that inhibits full participation of private sector in improving R&D capability of the country and in helping modernize training institutions.


Association of Southeast Asian Nations (ASEAN). 2008. ASEAN Economic Community Blueprint (Jakarta, ASEAN Secretariat). Available at: http://www.asean. org/communities/asean-economic-community.

Department of Labor and Employment (DOLE). 2013. JobsFit Labor Market Information Report 2013–16 (Manila, Bureau of Local Employment).

DOLE. 2014. Progress Report (Manila, Bureau of Local Employment).

Economist Intelligence Unit. 2012. Skilled Labour Shortfalls in Indonesia, the Philippines, Thailand and Vietnam: A custom research report for the British Council, British Council and Global Education Dialogues.

Habito, C. 2015. “Closing the job skills gap”, in Philippine Daily Inquirer, 4 Aug.

Mills, V. 2013. The Philippine Automotive and Manufacturing Industry Roadmap, presentation at Roundtable Discussion on Embedding Decent Work in Industrial Policy, Manila, 31 Jan. Available at: http://ilsdole.gov.ph/wp-content/uploads/ 2013/06/Roundtable-Discussion-in-IP-Automotive.pdf.

National Economic Development Authority (NEDA). 2014. Philippine Development Plan 2011–2016 Midterm Update (Pasig City, Philippines).

Oxford Business Group. No date. The Philippine electronics industry is benefitting from higher global demand. Available at: http://www.oxfordbusinessgroup.com/ analysis/bouncing-back-local-electronics-industry-benefitting-higher-global-demand.

Philippine Business for Education. 2015. K to 12 Infographics Kit. Available at: http://bit.ly/pbedkto12.

PSA. 2014. Labor Force Survey.

PSA. 2015a. Press release, PR-20152107, 21 July. Available at: http://nap.psa.gov.ph/stats/ptsa/default.asp.

PSA. 2015b. National Accounts, Q4 2014, 29 Jan. Available at: http://www.nscb.gov.ph/sna/2014/4th2014/2014qpr4.asp.

PSA. 2015c. Foreign Trade Statistics of the Philippines: 2014, 1 July. Available at: https://psa.gov.ph/content/foreign-trade-statistics-philippines-2014.

References


Technical Education and Skills Development Authority (TESDA). 2012. “Philippine Qualifications Framework”, in TESDA Policy Brief, Issue 2, Dec.

World Bank. 2013. Philippines Development Report 2013: Creating more and better jobs (Taguig City, Philippines, World Bank Philippine Office, East Asia and Pacific Region).

World Economic Forum (WEF). 2010. Global Competitiveness Report 2010–2011 (Geneva).

WEF. 2011. Global Competitiveness Report 2014–2015 (Geneva).






Appendix I. Key informant interviews

Name/Designation Organization Interview Date

Mr Ruy Moreno National Competitiveness Council 20 March 2015

Dominique R. TutayDirector IV Bureau of Local Employment 19 March 2015

Maria Criselda R. SyExecutive Director

National Wages and Productivity Commission 13 March 2015

Dr Napoleon JuanilloDirector Commission on Higher Education 18 March 2015

Dr Michael AlbaTrustee

Chair of Industry Academe Linkage CommitteePhilippine Association of Colleges and Universities

20 March 2015

Mr Bobby HorriganVice-President, External Affairs

Hotel and Restaurant Association of the Philippines 17 March 2015

Mr Rene Almeda Vice PresidentYazaki Torres

Motor Vehicle Parts Manufacturers Association of the Philippines, Inc. (MVPMAP)

27 March 2015

Mr Ed NicolasVice PresidentToyota Motors Philippines

Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI)

27 March 2015


Appendix II. FGD participants

NAME COMPANY POSITION

AutomotiveIndustry-MVPMAPFGD–16July2015FIDEL EBLASIN YAZAKI-TORRES SPECIAL ASST TO THE VPRUSSEL MALABANAN YAZAKI-TORRES ENGINEERCRISTY V. DONAIRE AGC AUTOMOTIVE PHILS FINANCE AND ADMIN MGRWHILMA F. PALCE HONDA CARS GROUP HEAD, ORG. DEVFRANCIS ATIENZA BEST TECH GENERAL MANAGER

EDWIN TIRONA ALCHI FORGING COMPANY OF ASIA, INC VP. EXTERNAL AFFAIRS

ED ARROYO ENKEL PHILIPPINES HR GROUP MANAGERFRAMYR CALAQUIAN RAHN-S MFG CORP MARKETING HEAD

ROBERTO CRUZ MD JUAN ENTERPRISES DEPUTY GENERAL MANAGER

MELODY MONTOYA TRI-R HR ADMIN MANAGER

HotelIndustry-PHOAFGD–13July2015JILDEN BRAGADO TEN KNOTS DEVT CORPO HRD MANAGERGEUEL AUSTE NEW WORLD HOTEL N/ADIVINE DELOS REYES HERITAGE HOTEL DIRECTOR OF HRRUTH SIKAT DUSIT THANI MANILA ASST HR MANAGER

WINDY TIONGZON MICROTEL GROUP TRAINING MANAGER

RIZZA PASCUA THE LINDEN SUITES HR MANAGERROSA MANALO ASCOTT LIMITED DIRECTOR FOR HR

ElectronicsIndustry-SEIPIFGD–15July2015MELISSA OPERANA HR MANAGER AUTOTECH CORPROWENA RUIZ HGST PHILS CORP MANAGERMARICHU PANOPIO SEPHIL HR- ASST MANAGERCHRISTINE CACHUELA SEPHIL HR - ELR LEADERDOMINIC UNDAY HGST HRAMALIA ALORA ROHM HRNAP URBANO ROHM HRANNE CORDERO ON SEMICONDUCTORS HRELLA ROSALES ON SEMICONDUCTORS HRZAHRA LUMBIS IONICS SENIOR HR MANAGERMARIANNE VISTAS IONICS HR


Appendix III. List of programmes/policies in survey and FGDs

a. Basic K-12 education (DepEd) – The 12-year basic education system to provide mastery of concepts and skills, develop lifelong learners and prepare graduates for tertiary, mid-level skills development, employment and entrepreneurship.

b. PhilJobsNet (DOLE) – The official jobsite of the Government providing a job search and application portal t free of charge through a computerized job matching and referral system.

c. Public Employment Service Offices (DOLE) – Community based multi-employment services provided free of charge to ensure timely and efficient delivery of employment services and provision of information on other DOLE programmes.

d. Special Program for the Employment of Students (DOLE) – Aims to assist poor but deserving students in pursuit of education by providing income support or augmenting income through employment.

e. JobStart Philippines programme (DOLE) – Designed to enhance the employability of at risk youth through the full cycle from career counselling to job matching, employers designed training and internship programmes.

f. On the job training/apprenticeship (DOLE).

g. PQF (Executive Order 83) – Adopts national standards for outcomes of education; supports the development and maintenance of pathways and equivalences across education, training, industry sectors and aligns PQF with international standards.

h. MRA (for professionals) – Aims to recognize the qualifications and facilitate the mobility of professionals within ASEAN covering seven professions (engineering, architecture, medicine, dentistry, nursing, accounting and surveying).

i. Two-tiered wage system (DOLE) – Productivity-based compensation which is provided on top of the legislated minimum wage.

j. DualTech Legislation (RA 10647 – CHED, TESDA, DepEd) – Ladderized programme that enables TVEC units to be counted toward college degree programmes. TVEC graduates can receive credit for their technical training if they pursue a college degree.


Appendix IV. Survey tool

I. Welcome to the ILO-ECOP Survey

II. Profile

NAME:

COMPANY NAME:

POSITION/TITLE

2. What is the size of your company in terms of number of employees? [Single answer]

Micro (1-9 employees)Small (10-99 employees)Medium (100-199 employees)Large (200 + employees)

3. Please select the industry sector of your company? [Single answer]

AutomotiveAgribusiness (Food manufacturing and trading)ElectronicsHospitality (Hotels and Restaurants)

4. Please select the business membership organization to which your company belongs? [Multiple answers allowed]

ECOPHotel and Restaurant Association of the PhilippinesMVPMAPPhilippine Chamber of CommerceSemiconductor and Electronics Industry of the PhilippinesNot a member of any industryOthers, please specify

III. Business Outlook

5. How do you see your business to perform in the next 3-5 years?

Business will likely expandBusiness will not changeBusiness will likely decline

6. How will future business performance in the next 3-5 years affect your human resource requirements

There are plans to expand or hire more employeesThe current size of employees will remain the sameThere are planned lay-offs or reduction in employee size

7. Which group of employees will be affected in the expansion/reduction (answer in Q6). Choose all that applies

Managerial/ExecutivesSupervisorsHighly skilled employeesMedium skilled employeesLow skilled employeesUnskilled employeesMale employeesFemale employees


8. Please select the 3 biggest human resource challenges as currently experienced by your company?

Shortage of skilled staffHigh wages/labor costsLack of access to financeCompetition from businesses that are not fully registered or don’t pay taxesCompetition from foreign businesses and importsLow productivity of staffCompliance with regulations and licensesPayment of taxesHigh transport costsHigh electricity costsLow market demand for my products or servicesHidden cost of governance Others, please specify

IV. ASEAN Economic Community/ASEAN Integration

9. Are you aware of the ASEAN Economic Community (AEC) or ASEAN Integration?

AwareNot Aware (Go to Next Section)

10. How do you see the AEC or ASEAN Integration to impact your company? [Single answer]

AEC will have a generally POSITIVE IMPACTAEC will have a generally NEGATIVE IMPACTAEC will NOT HAVE a significant impact

11. What would be the biggest benefit or opportunity of the AEC or ASEAN Integration to your business? [Single answer]

No benefit or opportunityYour company will have more opportunities to export to other countriesYour company will have more opportunities to invest in other countriesIt will make it easier to hire skilled foreign workersOthers, please specify

12. In your opinion, what will be the biggest challenge or threat of the AEC or ASEAN Integration to your business? [Single answer]

No challenge or threatYour company will face more competition from ASEAN importsYour firm will face more competition from ASEAN investors setting up businesses in the PhilippinesIt will be easier for your skilled local workers to move to other ASEAN countriesOverall, the Philippine economy will be hurt by AEC which in turn will hurt your businessOthers, please specify

13. How is your company preparing for the AEC or ASEAN Integration? Choose all that applies.

The company is NOT doing anything to prepare for the AECThe company is conducting training to prepare for the AECThe company is improving the quality of services or productsThe company is looking for ways to reducing prices of products or servicesThe company is seeking more information about the AECOthers, please specify


V. Human Resource Issues

14. What are the three (3) most pressing human resource concerns of your company.

Lack of supply (required skills are hard to find)Job skills mismatch (available manpower but not appropriate for skills required by company)High turnover due to performanceHigh turnover due to poaching/pirating from overseasHigh turnover due to poaching/pirating from domestic competitorsHigh minimum wage/labor costsLow productivity of employees

15a. For each of the top 3 concerns that y ou selected, which group of employees are affected by these HR issues?

a. Lack of supply (required skills are hard to find)b. Job skills mismatch (available manpower but not appropriate for skills required by company)c. High turnover due to performanced. High turnover due to poaching/pirating from oversease. High turnover due to poaching/pirating from domestic competitorsf. High minimum wage/labor costsg. Low productivity of employees

Not one of top 3 concernsManagerialSupervisoryHighly skilled employeesMedium skilled employeesLow skilled employeesUnskilled employees

15b. and by gender?a. Lack of supply (required skills are hard to find)b. Job skills mismatch (available manpower but not appropriate for skills required by company)c. High turnover due to performanced. High turnover due to poaching/pirating from oversease. High turnover due to poaching/pirating from domestic competitorsf. High minimum wage/labor costsg. Low productivity of employees

Not one of top 3 concernsAffecting MORE FEMALE than Male employeesAffecting MORE MALE than Female employeesEqually Affecting both male and female employees

16. Which of these human resource issues will be further aggravated by the ASEAN Integration in your opinion? Choose all that applies.

Lack of supply (required skills are hard to find)Job skills mismatch (available manpower but not appropriate for skills required by company)High turnover due to performanceHigh turnover due to poaching/pirating from overseasHigh turnover due to poaching/pirating from domestic competitorsHigh minimum wage/labor costsLow productivity of employees


17. Which of the different employee groups in your company will be most affected by the ASEAN Integration? Choose all that applies.

NoneManagerialSupervisoryHighly skilled employeesMedium skilled employeesLow skilled employeesUnskilled employees

18. By gender, which one will be affected more by the ASEAN Integration? [Single answer]

MALE employees will be affected more than FEMALE employeesFEMALE employees will be affected more than MALE employeesMALE and FEMALE employees will be EQUALLY affected

19. How would you rate the severity of job skills mismatch as experienced by your company?

InsignificantMinimalModerateSevereNot applicable

20. In your opinion, what are the top three (3) factors that contribute to job skills mismatch as experienced by your company?

Company does not experience job skills mismatchLack of information or career guidance of students entering the workforce on jobs/careers that are needed by the domestic industryInadequate basic education (K-12)Inadequate higher education (college)Lack of career counselling provided by high schoolsGovernment gives priority to manpower training for jobs overseas than providing training for domestic manpower requirementsStudents prefer to attend training for overseas jobs than local jobsEducation/training institutions are slow in adapting to new technology required by the industriesOthers, specify

21. From your experience, which group of employees would the issue of job skills mismatch be more prevalently observed?

Company has not experienced job skills mismatchManagerialSupervisoryHighly skilled employeesMedium skilled employeesLow skilled employeesUnskilled employees

22. What does your company do when faced with job skills mismatch? [Single answer]

Company has not experienced job skills mismatchPostpone hiring until the right candidate is identifiedHire as an apprentice/trainee with formal training to be provided by companyHire as contractual employee to learn on the job


23. How often does your company assess your manpower hiring requirements? [Single answer]

As needed onlyEvery monthEvery quarter (4 times a year)Twice a yearOnce a yearLess often than once a year

24. What would be the period covered by your company’s assessment of future manpower needs? [Single answer]

Assessment covers only for the immediate need/requirementCovers projections for up to 3-6 monthsCovers projections for needs/requirements up to one yearCovers projections for the next 2-3 yearsOthers, specify

VI. Education and Training

25. From your experience of hiring in the past year, how would you rate the adequacy of training/education in making students employable? a. TESDAb. Public High Schoolsc. Private High Schoolsd. Top tier colleges and Universitiese. Other Private Colleges and Universitiesf. Other State Colleges and Universities

Inappropriate, complete re-training requiredBasic preparation, additional training requiredAdequate, with minimal additional training requiredSufficient, no additional training requiredNot applicable, did not recruit from this institution

26. Which of these training programs does your company offer? Select all that applies.

Orientation Training for new hiresTechnical training for new hiresContinuing education for current employeesDual-Tech training for potential employeesApprenticeship programs/On the job training

27. Does the company have existing tie-ups or partnerships with other institutions to provide training for the company? Choose all that applies.

The company relies on in house trainingThe company has tie up with TESDA to provide training for employeesThe company partners with other technical-vocational schools for training for employeesThe company relies on professional training companies to provide training for employeesOthers, specify

28. Does your company engage in curriculum development for technical –vocational schools and educational institutions?

YesNo

29. If yes, please select which institutions do you work with on the development of training programs or curriculum development? Choose all that applies.

TESDACHEDDepEdOther tech-voc schoolsPrivate schoolsPublic schoolsOthers, specify


30. Please select from the list the top three (3) topics in which there is a greater need to develop the skills for your employees?

Marketing and customer serviceAccounting, bookkeeping and general business skillsOccupational Safety and HealthCommunication and TeamworkInformation TechnologyBasic reading, writing and mathematicsForeign language trainingCompany specific training that cannot be learned from outsideTechnical training that could also be applied in other enterprises (e.g. customer relations skills, electrical skills, computer literacy)

31. What are the main constraints of the company in providing training for employees? Select all that applies.

No training is neededEmployees are not interested in trainingLack of available time to train staffLack of available funds to train stafflack of information about available training courses or providersDon't know what skills employees need to developLack of good quality training coursesWorries that employees would leave after being trainedCost of training outweighs the benefitsManagement does not appreciate long term benefits of trainingTraining is considered an expense and therefore affects bottom lin results

VII. Effectiveness of Current Policies and Programs

32. How would you rate the level of effectiveness of each of the following programs/policies in addressing the job-skills mismatch concern?

a. Basic K-12 educationb. PhilJobsNetc. Public Employment Service Officesd. Special Program for Employment of Studentse. JobStart Programf. On-The-Job (OJT) or Apprenticeship programg. Philippine Qualification Standardsh. Mutual Recognition Agreements (for professionals)i. Two-tiered wage systemj. Dual Tech Legislation (RA 10647)

Not Effective At AllMinimally EffectiveModerately EffectiveVery EffectiveNot aware of this program/policy

VIII. ECOP Benefits


33. What benefits does your company enjoy as a member of ECOP? Choose all that applies.

Access to new clients, customers and business networksMembership is good for marketing/branding of my companyECOP represents my interests and raised my concerns with GovernmentECOP provides advise and support to help me grow/develop my businessECOP organizes events, conferences and workshopsECOP provides trainingNot Applicable - Not a member of ECOP

IX. Possible Courses of Action

34. Please choose top three (3) interventions which in your opinion could help address job skills mismatch concern?

Strengthening the Linkage between Education/training institutions and private sector in developing market oriented curriculum and training programsStrengthening information dissemination targeting high school students and their parents on jobs that are in demand for the domestic labor market.Establishing an information system that will update DOLE with the private sector requirements for jobs and skills.Tax incentives for companies that offer training programs to their employeesCapacity building for TESDA to improve its ability to provide up to date training programs that match the needs of companiesStandardizing learning outcomes of apprenticeship programs of companiesEncouraging PPP for technical skills training

35. Which of these would you suggest for ECOP to support or pursue? Please choose three(3).

Strengthening the Linkage between Education/training institutions and private sector in developing market oriented curriculum and training programsStrengthening information dissemination targeting high school students and their parents on jobs that are in demand for the domestic labor market.Establishing an information system that will update DOLE with the private sector requirements for jobs and skills.Tax incentives for companies that offer training programs to their employeesCapacity building for TESDA to improve its ability to provide up to date training programs that match the needs of companiesStandardizing learning outcomes of apprenticeship programs of companiesEncouraging PPP for technical skills training

36. Would you have other policy reforms that you think would be effective in addressing job skills mismatch and would like ECOP to support or pursue? What are these?

Comment box to be provided

Thank you very much for completing the survey.


efficiency through more effective job skills matching … framework for improving labour market...

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