Solving job skills mismatch bolsters competitiveness

MANILA, Philippines – There is a job skills mismatch in the Philippines and its impact is more crippling for the manufacturing sector than for services, according to a joint report by the International Labor Organization and Employers Confederation of the Philippines.

The report said the mismatch is significant enough to hamper the country’s manufacturing potential and constrain economic growth.

The mismatch is also a contributing factor to the high unemployment rate in the Philippines, which remains among the highest in the Association of Southeast Asian Nations (ASEAN), the report said.

The paper assessed the severity of the mismatch in three industries identified as priority investment sectors of the Philippine Development Plan (2011-2016): automotive, electronics, and tourism.

“This report confirms the mismatch exists and it is affecting the manufacturing sector (automotive and semiconductor/electronics) more seriously than the services sector (tourism),” the report said.

It added the mismatch is manifested in “hard” or technical skills as well as in “soft” skills, referring mainly to communication, interpersonal management skills, and values formation.

Three main factors contributed to the job skills disparity: weak labor market information systems, inadequate training, and weak support for science and technology.

According to the study, job skills mismatch should be addressed first in the manufacturing sector. This is because “the contributing factors to the job skills mismatch in that sector are more extensive,” and “manufacturing has greater potential for future value creation.”

Lourdes Espinoza, external collaborator of the ILO, in her presentation said the job skills mismatch essentially boils down to this: “the skills sets of graduates are usually not what employers need, while schools are unable to anticipate what the industry needs.“

This mismatch means new graduates who join the workforce are not job-ready and require “significant” training before they can become productive, she said.

Espinoza pointed out there are actually several policies and programs by the government, industry, academe, and foundations to upgrade workers’ skills, but that there is a lack of synchronicity and synergy in these initiatives.

There is duplication of efforts rather than building upon them, she added. “We need to make all initiatives work.”

She also urged greater collaboration between the government, the private sector, and the educational sector, noting study findings that show that industries have low awareness levels of state programs to create jobs and enhance skills.

The study bats for the inclusion of ECOP as a member of the Philippine Qualifications Framework’s National Coordinating Council “to ensure the private sector is not merely consulted, but that it is represented in the policy-making body.”

At the same time, a strong innovation culture should be cultivated through a bigger government budget allocation for science and technology development and the setting up of training facilities and institutions that keep abreast of changing technology. A revival of R&D capability, says the report, will particularly boost the manufacturing sector’s competitiveness in the ASEAN. –(The Philippine Star)