economy report philippines: sustainable career development...

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2007/HRDWG/FOR/016a

Economy Report Philippines: Sustainable Career Development Throughout Working Life

(Presentation)

Submitted by: Philippines

Forum on Sustainable Career Development Throughout Working Life

Chiba, Japan 14-16 November 2007

1

Sustainable Career Development Throughout Working Life:Republic of the Philippines

Paper Presented byDirector Ma. Celeste M. ValderramaDepartment of Labor and Employment, Manila

APEC Forum on Human Resource DevelopmentSustainable Career Development Throughout Working Life14-16 November 2007Chiba, Japan

Department of Labor &

Employment

Outline of Presentation

1. Concept, Strategy and Basic Policy

2. Labor Market situation

3. Career Development Status and Tasks: 3 views

3.1 The Individual Worker3.2 The enterprise (private sector)3.3 The public sector support

4. Special Measures for the Informal Sector

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Concept, Strategy and Basic Policy

Career Development Measures in the Philippines


Employment

“Human capital is the single biggest competitive edge of the Philippines and is expected to sustain and proper the country’s competitiveness.”

- National Competitiveness Summit 206

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Employment

1. State policy

The Labor Code of the Philippines

“The State shall promote and maintain a state of full employment though improved manpower training, allocation and utilization.”


Employment

2. Strategies

The Medium Term Philippine Development Plan (2004-2010)

Employment generation: job-creation measuresEmployment preservation: measures to maintain industrial peaceEmployment enhancement : measures to advance the quality of work life of workers while working Employment facilitation: job matching and labor market information services.

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Employment

The Technical Education and Skills Development Act

“The State shall encourage active participation of various concerned sectors particularly private enterprises being direct participants in the immediate beneficiaries of a trained and skilled workforce in providing technical education and skills development opportunities”


Employment

The National Action Plan to Achieve Education for all by year 2015

Every child, youth and adult has the human right to benefit fromeducation that will meet the basic learning needs including the full development of human personality

Functional literacy means having the complete range of skills and competencies which enables individuals to live and work as human persons, develop their potentials, make critical and informed decisions, and function effectively in society

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Employment

The National Technical Education Skills Development Plan (NTESDP) 2005-2009

continued enhancement of competencies through skills training. Industry and employers to support competency building by pursuing workplace-based HRD programs for their employees.


Employment

3. Concept

Sustainable Career Development are purposive activities during one’s working life that continuously enhance the competencies of an individual leading to one’s career growth, and consequently, towards full employment and development of his human potentials.

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Employment

A continuing development cycleIndividuals with

sustainable career growth

Productive individuals

Productive industries

Economic development of the nation

Career support measures

workforce training and skill developmenteducationwork redesign or job enhancementon the job training, apprenticeship and learnershiplabor market information and public employment servicespolicy and program support

Labor Market Situation

Career Development Measures in the Philippines

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Employment

Employed Persons92.3%

(33.5 M)

Unemployed Persons7.69%(2.8 M)

Source of data: National Statistics Office, Labor Force Survey.

36.4 million workforce

33.5 million employed workforce

2.8 million unemployed workforce

Employment StatusEmployment Status……


Employment

16.790 M (53.4%)

4.038 (11.5%)

10.667 M (30.7%)

1.467 M (4.4%)

0 5,000 10,000 15,000 20,000

UNPAID FAMILY WORKERS

SELF EMPLOYED

EMPLOYER

WAGE AND SALARY WORKERS

Wage and salary workers accounted for the majority of the employedSelf-employed comprised the second largest groupThe rest were employer or unpaid family workers

Employed by Class of WorkerEmployed by Class of Worker

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Employment

UNEMPLOYED

M ale64.4%

Female35.6%

College38.4%

High school 44.7%

Elementary16.0%

No Grade Completed

0.85%

SEX AGE GROUP HIGHEST GRADE COMPLETED

15-2448.5%25-54

47.4%

55 & Over4.1%

Source of data: National Statistics Office, Labor Force Survey.

Unemployed Persons:

Mostly male (64.7%)

Predominantly young workers age 15-24 years old (48.5%)

Relatively educated (38.4% college level and 30.1% high school graduate)

Total Unemployed Persons = 2.930 M (April 2006)Total Unemployed Persons = 2.930 M (April 2006)


Employment

The underemployed

persons who expressed the desire to have additional hours of work in their present job, or in an additional job, or to have a new job with longer working hours

Number has grown, from 2.8 million in 1997 to 4.1 million in 2005

less educated employees, unskilled workers in agriculture sector, and in their prime age (25 to 54 years old)

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Overall Deployment Trend of Overseas EmploymentOverall Deployment Trend of Overseas Employmentin the Philippines Over the Past 34 yearsin the Philippines Over the Past 34 years……

Note: AAGR – Average Annual Growth Rate.Sources of Data: Philippine Overseas Employment Administration.

Bureau of Labor and Employment Statistics.

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1,000,00019

72

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

Year

Num

ber

The annual volume of Filipino workers deployed from 1972 to 2005 has grown by leaps and bounds. From a modest 14,366 deployed in 1972, total deployment already breached the 1 million deployment target for 2006 (1.1 M).

Occupational Shifts of Overseas Filipino Workers (OFWs):Occupational Shifts of Overseas Filipino Workers (OFWs):19721972--1987, 19921987, 1992--20042004

Sources of Data: Philippine Overseas Employment Administration.Bureau of Labor and Employment Statistics.

Production Workers Professional WorkersService Workers

1972 1973 1974 1975 1976 1977 1978 1979 1980 1986 1987 1992 1999 2000 2001 2002 2003 2004

68.6%

19.4%

9.9%

36.7%

29.1%

15.0%

36.6%

31.6%

27.7%

40.2%

33.2%

22.4%

1981 1982 1983 1984 1985 1997 19981993 1994 1995 1996

• Shift in skills demand from low-end occupations (production workers) to high-end occupations (professional workers)

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Employment

The workplace has been changing.

Agricultural workforce is shrinking

Service sector employment is expanding due to rapid technological innovations in information and communication

“casualization” of the workforce is increasing as more employers are resorting to labor flexibility arrangements to compete in the market.

Career Development Measures & Tasks: 3 Views

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Employment

View 1: The individual worker

Confronted with drastically changing workplace requirements (technology, restructuring of organizations and jobs)School-learnt skills are inadequateFaced with short-term, rather than long term employmentDesire to earn more or work more (especially the underemployed and informal sector) Attracted to high-paying overseas employment as a career goal


Employment

The individual common course of action

Pursuing higher education, a 2nd degree or tech-voc course with in-demand jobAvailing of livelihood seminars offered by tech-voc institutionsUsing self-help learning kitsSeeking mentors or business counsellors (entrepreneurs)

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Employment

Challenge: Increasing access of unskilled and low-educated workers to training and education

For the unskilled and low-educated workers, career growth is usually difficult because of inadequate qualifications and lack of funds to finance further skills training or education


Employment

View 2: The Enterprise (private sector)

Securing the best talents to achieve competitivenessFiling up current and future vacancies that are in-demand and hard-to-fillFilling up of vacancies due to attritionInvesting on people and retaining them due to piracy

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Employment

Measures taken at the enterprise level

Training, career development (job redesign/ crossposting/ job rotation), performance and rewards systems

Encouraging career shifters, especially in BPO

Intensive OJT and in-company training tied up with wages or incentives


Employment

Challenge: expanding career development activities in micro-enterprises

Much of the sophisticated training and career development activities are in large companies comprising only .4% of total establishments

Many small to medium-sized and micro-enterprises participate in OJT, learnership and apprenticeship (enterprise-based TVET)

But the micro enterprises which comprise the majority would generally develop careers through mentoring (by owners) or self-learning (observing and practice)

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Employment

View 3: Public Sector Support

The driving forces for the developing career support measures:

1. Reducing jobs- and – skills mismatch2. Increasing the nation’s competitiveness3. Upgrading skills in growth sectors4. Continuing education and training


Employment

Measures taken by the Philippine Government

Support Measure1. The PGMA

Training for Work Scholarship Program•Training subsidy (voucher scheme) for workers getting into in-demand, skill-shortage category courses

•Targets .5 mllion persons assisted from 2006-2010

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Employment

Skill development infrastructure

2. Ladderized Interface between Technical-Vocational Education and Training and Higher Education

•265 educational institutions which now allow certification of units enabled more workers to finish their education or higher tech-voc levels while working


Employment

3. Enterprise-based TVET programs, on-line tech-voc education, community based training

•101,650 apprentices and learners or 8% of TVET graduates (mainly garments, automotive, tourism)

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Employment

4. The Public Employment Service Office Network and computerized job matching facility

•760,000 workers placed by PESO annually

•100,000 job hits in PhilJobNet


Employment

One-stop-reintegration shop quickened work-placement of workers displaced during Lebanon war

Employment kiosks at the malls increased access of working people to job information

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Employment

Policy and Program Support

5. The National Human Resource Conference


Employment

Remaining tasks

Conduct of survey on investments in career development measures initiated or implemented by the private sector

Continuing multi-sector dialogue and consultation to expand in-company training and to make curriculum increasingly responsive to the industry requirementsUse of technology in career development activities to reach out to the large workforce population

Development of self-help handbooks for career shifters; career counsellors’ guide for human resource managers or practitioners

Training of Public Employment Service Officers in career counseling

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Special Measures for the Informal Sector


Employment

Current status of career development in the informal sector

Informal sector workers comprise 44.6% (14.6 million) self-employed and unpaid family workers

Largely male, in the prime working age (25-54 years old) and with low educational attainment

Majority are head of the family and engaged in part-time employment

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Employment

Measures

Livelihood skills trainingAssistance package (capital, marketing and packaging) Business counselling from the private sector (Go Negosyo)Quick response to displacedTVET, assessment and certification year-round

“When planning for one yearThere’s nothing better than planting grain.

When planning for ten years,There’s nothing better than planting trees.

When planning for a lifetime,There’s nothing better than planting men.”

-GuanziChinese Philosopher (551-479 BC)

Thank you.

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