Bridging the Workforce

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1 Bridging the Workforce Skills Gaps & Mismatch RUTH R.RODRIGUEZ Division Chief, Bureau Employment of Local Employment Department of Labor and Employment Republic of the Philippines

2 employment scenario INDICATOR * 2014 P* Household Population 60,717 61,882 62,985 61,176 62,189 (15 years old and over) Labor Force ( 000) 38,893 40,006 40,426 39,088 40,050 Employed Persons ( 000) 36,035 37,192 37,600 36,286 37,310 Unemployed Persons ( 000) 2,859 2,814 2,826 2,801 2,740 Underemployed Persons ( 000) 6,762 7,163 7,514 6,912 6,870 Labor Participation Rate (%) Employment Rate (%) Unemployment Rate (%) Underemployment Rate (%) Youth Unemployment Rate(%) Source: Philippine Statistics Authority, averages of four (4) rounds of Labor Force Survey P - Preliminary * The annual estimates for 2013 and 2014 exclude Region VIII or Eastern Visayas.

3 JANUARY 2015 LFS: employment scenario Youth unemployment rate is more than half the national rate 6.6% (vs. 7.5% in January 2014) National unemployment rate 15.0% (vs. 17.3% in January 2014) Youth unemployment rate Source: January 2015 Labor Force Survey Results, Institute for Labor Studies *Excludes figure for Region VIII or Eastern Visayas. 3

4 JANUARY 2015 LFS: employment scenario Youth composes half of the unemployed population 47.3% or M (vs. 48.2% or M in January 2014) YEARS OLD 48.8 % or M (vs. 47.3% or M in January 2014) YEARS OLD Source: January 2015 Labor Force Survey Results, Institute for Labor Studies *Excludes figure for Region VIII or Eastern Visayas. 4

5 JANUARY 2015 LFS: A considerable part of the unemployed population consists of educated workers 45.2% employment scenario or M of the total unemployed have reached or graduated from HIGH SCHOOL About M of the total unemployed population have reached or graduated from COLLEGE or about (vs. 33.1% or M in January 2014) (vs. 45.4% or M in January 2014) 33.4% Source: January 2015 Labor Force Survey Results, Institute for Labor Studies *Excludes figure for Region VIII or Eastern Visayas. 5

6 school-to-work transition The school-to-work transition for many young Filipinos is associated with change, waiting, and uncertainty. It takes a high school leaver up to 3 years to find a first job and 4 years to find a permanent wage job. It takes a college graduate 1 year to find a first job and up to 2 years to find a permanent job. The youth s educational attainment, age, behavior towards job searching and his family, social network, minimum wage, regulations and restrictions on employment arrangements are as strong factors influencing their school-to-work transition

7 school-to-work transition STW transition describes the duration and process in finding a job since leaving school or college. A young person s slow transition from school to work reduces their chances of finding a good job because their employability diminishes. The transition period may include the following: Job search behavior Short term skills training Temporary work, household duties Inactivity staying at home out of employment, education and training (NEET)

8 Youth Not in Employment, Education or Training (NEET) About one in four youth are not in employment, education and training system at any one time Prolong periods in NEET can damage youth future labor market prospects Women in particular are at risk of becoming NEET About one in three young women are in NEET at any one time Young people from lower income families more at risk of becoming NEET after finishing education Philippines NEET Rates are relatively high on an international comparison

9 Employment Rates since Leaving School/College (Source: OECD, ADB for Philippines) ER one year after leaving school ER five years after leaving school Median time to Find First Job Germany 75% 78% 0.1 Switzerland 82% 85% 0.7 United Kingdom 80% 85% 1.8 Netherlands 85% 90% 1.0 Italy 50% 70% 3.0 Spain 65% 80% 2.7 Greece 50% 75% 3.2 Philippines a\ 60% 70%

10 recruitment and hiring Reasons why entry-level jobseekers get rejected and employers have difficulties in their recruitment process: (1) lack of competency of applicants (2) expectation of high salary (3) lack of years of experience (4) lack of applicant for the vacancy post (5) location/work schedule problem (6) lack of license/certification (7) preference to work abroad Source: PSA, 2009/2010 BLES Integrated Survey (BITS)

11 The Department of Labor and Employment envisions to provide every Filipino worker full, decent, and productive employment through promotion of gainful employment opportunities, development of human resources, protection of workers welfare, and maintaining industrial peace.

12 A sectoral plan under the Philippine Development Plan, the Philippine Labor and Employment Plan 2011 to 2016 provides the strategic directions for labor and employment in the medium-term.

13 (c) SunStar gilcamporazorandomthoughts.info...every month there are 50,000 jobs that are not filled because the knowledge and skills of jobseekers do not match the needs of the companies. We will not allow this opportunity to go to waste; at this very moment, DOLE, CHED, TESDA, and DepEd are working together to address this issue. Curricula will be reviewed and analyzed to better direct them to industries that are in need of workers, and students will be guided so that they may choose courses that will arm them with the skills apt for vacant jobs. - Pres. Benigno S. Aquino III in his 2011 State of the Nation Address

14 DepEd Department of Education DOLE Department of Labor and Employment Human Development Poverty Reduction Cabinet Cluster CHED Commission on Higher Education TESDA Technical Education & Skils Development Authority PRC Professional Regulation Commission DOST Department of Science & Technology TWG on Jobs-Skills Matching

15 Human Development Poverty Reduction Cabinet Cluster Convergent Programs on Jobs-Skills Matching 1 Review of Education and Training Curriculum (K to 12, Review of Higher Education s Policies, Standards & Guidelines ) 2 Institutionalization of the Philippine Qualifications Framework 3 Career Guidance Advocacy Program 4 Strengthening of Dissemination of LMI and Enhanced Utilization of Phil-Job.Net

16 LABOR MARKET INFORMATION PJN System is the government s official web-based job portal which aims to improve the job search process through a computerized job matching and referral facility. It is voluntary and free of charge.

17 LABOR MARKET INFORMATION KEY EMPLOYMENT GENERATORS Agribusiness Mining Manufacturing Power Construction IT-BPM Health and Wellness Hotel, Restaurant and Tourism Wholesale & Retail Trade Banking and Finance Transport and Logistics Ownership, Dwellings, and Real Estate Education EMERGING INDUSTRIES Renewable Energy Shipbuilding

18 LABOR MARKET INFORMATION in-demand occupations 275 Example: Construction Mechanical Engineer, Machine Operator, Production Crew, Machinist, Tinsmith, Tile Setter, Plumber, Welder, AutoCAD Operator, Carpenter, Electrician, Rigger, Welder, etc. 102 hard-to-fill occupations Example: Transport and Logistics Airconditioning Technician, Fiber Glass Applicator, CNC Machinist, Gantry Operator, Painter, Heavy Equipment Operator, Aircraft Mechanic, etc.

19 Republic Act 8759 was enacted in 1999 institutionalizing a National Facilitation Service Network through the establishment of Public Employment Service Offices in every province, key cities and other strategic areas. ESTABLISHED PESOs 1,925 INSTITUTIONALIZED PESOS 391

20 helping poor but deserving students pursue their education by encouraging the employment of secondary level students during summer and/or Christmas vacations and of tertiary, vocational, and technical level students anytime of the year, and providing income to finance/augment/subsidize their studies

21 Enhancing the employability of at-risk youth to improve their integration into productive employment. JobStart P H I L I P P I N E S

22 DOLE-ADB-CANADA PARTNERSHIP Shared goal of INCLUSIVE GROWTH Employment creation and poverty reduction Helping young Filipinos get a head start in their careers We aim to do this through JobStart Philippines DOLE as the Executing Agency PESOs as Implementing Agencies Employers as our Partners

23 LIFE SKILLS TRAINING PSA, LabStat Feb 2014 Teamwork including interpersonal skills important in recruitment of entry level job applicants. Jobseekers have poor skills on organization, planning, critical and creative thinking, and decision-making. JobStart pilot provided Life Skills Training focusing on: Attitudes to work and workplace environment Job hunting skills and networking Personal & interpersonal skills Health and financial management

24 LIFE SKILLS TRAINING Life skills are defined as psychosocial abilities for adaptive and positive behavior that enable individuals to deal effectively with the demands and challenges of everyday life. They are loosely grouped into three broad categories of skills: cognitive skills analysing and using information, personal skills for developing personal agency and managing oneself, and interpersonal skills for communicating and interacting effectively- UNICEF

25 JOBSTART SERVICES 1. Registration and Client Assessment 2. Life Skills Training (plus one-on-one career guidance) 7. Referral for Job Placement (PESO available vacancies) 6. Work Experience (up to 3 months) Prequalifications Signing of partnership[p agreements 5b. Technical Training (up to 3 months) Internship Offers Training Plans 3. Job-Matching 4. Referral for interviews with JobStart Employers Job Ready? 5c. Other DOLE youth employment/training programs 5d. Further CG and job matching NO YES 5a. Wage Employment

26 Benefits of JobStart Philippines (ADB Mid-term Review, November 2014) Employers reported satisfied with JobStart Better prepared job applicants through life skills training Flexibility provided to employers in developing the training plans JobStart beneficiaries reported satisfied with JobStart Improved confidence through life skills training Technical training and work experience provides relevant skills to land a job Improved chances of finding a job 35

27 HOW DOES JOBSTART SHORTEN THE SCHOOL-TO-WORK TRANSITION? JobStart targets youth NEET Many of the beneficiaries under the pilot project are from lower income families The program offers complete package of services to help youth access short-term trainings and empower them make career choices Initial results from the pilot shows that JobStarters were hired after life skills training (less than 2 weeks) while some JobStart partner employers absorbed beneficiaries after technical training (less than 4 months) or after internship (less than 10 months)

28 Take away... What are new and innovative ways for service delivery to meet the requirements of a changing labor market? Curriculum review and updating (integration of soft skills) Employer led training program Industry immersion program for teachers/trainers Cater to special type of clients differently abled, youth NEET, senior Paradigm shift full cycle employment services

29 Take away... How can partners be involved in tackling the issue of skills gaps? Recognize industry good practices provide incentives Capacity development for PES Forging partnership agreements Corporate Social Responsibility Labor market information signals/exchange

30 THANK YOU! w w w. d o l e. g ov. p h w w w. bl e. d o l e. g ov. p h w w w. p h i l - j o b. n e t