EDUCATION & EMPLOYMENT | Ernie Cecilia, DPM
November 21, 2024
Labor Secretary Bienvenido Laguesma was the opening keynote speaker at the 2024 Arangkada Forum of the Joint Foreign Chambers of the Philippines (JFC) on Oct. 24, 2024. He said, “I cannot overemphasize the importance of collaborating toward upskilling the country’s workforce and accelerating economic growth in light of demographic shifts and technological advancements.”
Changing labor markets
He then outlined the government’s strategy for social and economic recovery in the short- and long-term future.
Secretary Laguesma explained that in the past three decades, “economic liberalization, technology and digitalization, demographic shifts, and the effects of climate change have dramatically accelerated transformations in the world of work. Innovations in technology are altering how work is performed, and new jobs with different skills and competency requirements have been created; automation and artificial intelligence are increasingly being employed, new employment arrangements have emerged, and even the conceptualization of workplaces has transcended physical spaces. Generational shifts in attitudes and values toward work and a greater assertion of individual rights and identities have also resulted in profound social transformation and influenced labor dynamics — where a generation ago, our employment rates hovered in the range of 91 percent to 93 percent, now our employment rates have ranged from 95 percent to 96 percent.”
The DOLE Secretary is aware that the “digital revolution is rapidly transforming our economic landscape, creating new job roles that require specialized skills such as those in data science, artificial intelligence (AI) programming, cybersecurity, and digital marketing. A recent study by Microsoft and LinkedIn showed around 86 percent of knowledge workers in the Philippines have been utilizing generative AI. By 2030, it is projected that 18 million jobs will require upskilling and reskilling to maximize the benefits of AI.”
Emerging economies
The secretary forecasts where jobs in the future will likely come from. He said, “We also expect to see the emergence and growth of the green economy, the digital economy, and the care economy. As we face increasing environmental challenges due to climate change, new opportunities are emerging in green jobs — occupations that are focused on environmental sustainability, renewable energy and ecological conservation. Further, the care economy is expanding as the world’s population ages, and the demand for health and caregiving services grows.”
Secretary Laguesma emphasizes the need to address the jobs-skills mismatch, “We need to address the persistent jobs-skills mismatch between what jobseekers possess and what employers need, slow school-to-work transition, the rise of youth not in education, employment, and training (NEET), and the changing demographics in the workplace.”
The government aims to “create employment opportunities of better quality, that are sustainable and more remunerative, and that provide decent working conditions for all workers. We must also deliberately aim for work opportunities that fully respect the fundamental principles and rights at work and provide adequate and inclusive social protection, including facilitating just transitions.”
New employment strategy
It will be recalled that on Sept. 27, 2023, President Ferdinand Marcos Jr. signed into law the Trabaho Para sa Bayan Act (TPB). The law operationalizes a whole-of-society approach to investment generation and job creation. The law emphasizes support to the micro, small and medium enterprises (MSMEs) to spur job creation and ensure employment security. It incentivizes employers and private sector organizations to contribute to workforce improvement through various training and skills development initiatives.
Secretary Laguesma explained, “With the signing of this landmark legislation, the DOLE, NEDA and DTI, as co-chairpersons of the TPB Inter-Agency Council, conducted multi-stakeholder consultations to identify national and regional challenges in generating employment opportunities toward the formulation of the TPB Plan.”
He explains the TPB Plan: “On the supply side, the Plan seeks to address the high costs of training and competency enhancement programs, unequal access to quality education and training opportunities, economic barriers to skills development, high employee turnover, and skills gaps in the technology sector. On the demand side, the plan seeks to lower business operating costs, simplify complex regulatory requirements, promote ease of doing business, promote investments in infrastructure and technology, including digitalization and connectivity, and building professional networks to provide support and opportunities in a rapidly changing labor market.”
He assured the audience, “For the duration of the 10-year TPB Plan, there will be continuing focus on developing and equipping human resources with the skills and competencies that will ensure their employability and upward mobility amidst the ever-changing world of work. Equal attention will also be given to ensuring employment facilitation through updated and reliable labor market information. Further, attention shall also be given to supporting the expansion and growth of businesses through a balanced combination of responsive capacity-building measures, particularly toward digitalization, well-designed incentives, and wider access to credit.”
Short-term goals
Secretary Laguesma expounds on the short-term priorities of the TPB Plan, “For the first four years to be implemented until 2028 alongside the time span of the Philippine Development Plan (PDP) and the Labor and Employment Plan (LEP), the TPB Plan will have four strategic priorities.”
“The first is to strengthen the alignment of education and training programs with industry requirements. Rapid technological advancements necessitate continuous dialogue between educational institutions and industries to keep curricula relevant. The TPB is vital in this endeavor, providing a framework for analyzing employment trends and labor market needs.”
“The second is to expand employability programs in order to facilitate school-to-work and work-to-work transitions, especially for youth and young workers. The TPB Act also emphasized targeted upskilling programs in sectors facing critical skills shortages, such as agriculture and technology. By directing our efforts toward these areas, we can address immediate skills gaps and position the Philippines as a leader in these industries. Additionally, the TPB Act fosters a culture of lifelong learning and continuous skill development, which is essential in an era of rapid change.”
“The third is to reduce the regulatory burdens on MSMEs and, at the same time, ensure compliance with all labor standards. This Administration continues to vigorously implement programs and strategies to create a more conducive regulatory and policy environment to make the country an attractive and viable destination for investors, such as those in the infrastructure, technology, and energy sectors. The president himself has been leading efforts to attract more investors to the Philippines. The national government has continuously intensified its thrust towards transport and logistics infrastructure, sustainable energy and power, and information and communication technology. We also need to make investment inflow easier, with key initiatives in promoting ease-of-doing business, e-governance and a progressive tax regime that provides incentives for workforce development.”
“And the fourth is to strengthen social protection mechanisms, including measures for just transition and the operationalization of the social protection floor framework, which the president approved last year.”
It’s a great strategy, and we hope that inter-agency collaboration will work well in the implementation.