Neda: PH still hobbled by lack of skilled workers

MANILA, Philippines—The lack of workers with appropriate skills set is still a major challenge for the Philippines and the government must sort out this problem through its education program, the National Economic and Development Authority (Neda) said over the weekend.

According to Emmanuel F. Esguerra, Neda deputy director general, the lack can be seen in industries that are knowledge-intensive and require a high degree of functional flexibility.

“That is why the most important skill is being good at learning, and that is what investment in quality basic education is for,” Esguerra explained.

In an October 2012 labor force survey, the National Statistics Office found out that 48 percent, or almost half of Filipinos willing to work, were 15 to 34 years old. Of this age segment, 46 percent were employed during the period.

Noting the need for knowledge workers with high degree of skills, the government will implement measures to enhance the competitiveness of employees and industries, the Neda said.

Esguerra specifically mentioned the K-12 Basic Education Program of the government, “which aims to produce holistically developed learners with 21st century skills” who are prepared for higher education, middle-level skills development and immediate employment or entrepreneurship.

“This will signal to potential employers that the quality of Philippine labor is, and will remain, competitive and employable,” Esguerra said.

Developing the capacities of young workers by stepping up investments in basic education is crucial in achieving sustainable and inclusive growth, the Neda said.

Beyond basic education, industries are rolling out their own programs to complement government initiatives.

In a separate report, the Business Processing Association of the Philippines (BPAP) said it would regularly invest in training potential and existing workers in the information technology and business process outsourcing (IT-BPO) industry—a major employer of young people.

In just over a decade, the IT-BPO industry has become an important engine of growth for the Philippine economy. Industry projections showed that annual revenues could increase from $11 billion in 2011 to $25 billion in 2016. In anticipation of sustained high growth, the industry will implement a series of strategic initiatives to support talent development and expansion of the workforce to 1.3 million by 2016.

An important aspect of the government’s inclusive growth platform is investing in human capital, particularly in the young population that constitute about half of the country’s workforce, Esguerra said.

Inclusive growth, as outlined in the Philippine Development Plan: 2011-2016, entails rapid and sustained socioeconomic development that contributes to employment generation and poverty reduction. This may be achieved through massive investments in infrastructure and human capital, as well as putting in place measures that support good governance.