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Addressing the Skills Gap: Philippine Youth Face Employment Challenges

As half of college graduates remain unemployed, experts emphasize the urgent need for educational reforms and targeted skills development.

By Paolo Mercado22 September 20263 min read
Addressing the Skills Gap: Philippine Youth Face Employment Challenges

In the Philippines, a troubling trend has emerged as half of the nation's college graduates remain unemployed, highlighting a significant disconnect between educational outcomes and labor market demands. This issue was brought to light by Dr. Shirley Agrupis, Chairperson of the Commission on Higher Education (CHED), during a recent public forum where she emphasized that a diploma alone does not guarantee employment.

According to a survey of 25,000 graduates, only 3,000 were employed, with many employers citing deficiencies in essential soft skills such as communication, writing, and critical thinking as major barriers to hiring. Agrupis noted that feedback from industries indicates a persistent mismatch between the outputs of higher education and the actual needs of the labor market, a sentiment echoed by studies from the Philippine Institute for Development Studies (PIDS).

“Earning a diploma is a foundation, not a guarantee.”Dr. Shirley Agrupis, Chairperson, Commission on Higher Education

To combat this skills gap, CHED has mandated the integration of on-the-job training (OJT) programs into degree curricula, allowing students to gain practical experience in relevant industries. Agrupis remarked that earning a diploma is a foundation, not a guarantee, stressing the importance of developing practical skills alongside academic knowledge.

Further addressing the skills mismatch, Dr. Lawrence Dacuycuy, a consultant with PIDS, underscored the necessity for a targeted skills development framework. He pointed out that while general skills acquired through education are transferable, specific skills, particularly in sectors like Information Technology-Business Process Management and manufacturing, are increasingly in demand. Dacuycuy stated that the evolving world of work, driven by technological advancements, requires a focus on developing relevant skills.

Moreover, the International Labour Organization (ILO) has initiated programs aimed at equipping young workers with green and digital skills tailored for the construction sector, which is undergoing significant transformation due to digitalization and environmental sustainability demands. Khalid Hassan, Director of the ILO Country Office for the Philippines, highlighted the urgency of ensuring that training programs are accessible, especially for youth from low- to medium-skill backgrounds.

“The evolving world of work, driven by technological advancements, requires a focus on developing relevant skills.”Dr. Lawrence Dacuycuy, Consultant, Philippine Institute for Development Studies

As the construction industry adapts to these changes, the ILO's focus on Building Information Modeling (BIM) and green construction skills aims to prepare young workers for future job opportunities. Hochul Shin, Chief Technical Adviser of the ILO/Korea Partnership Programme, noted that BIM and green construction skills are among the most important starting points for leveraging the digital and green transitions to improve youth employment in this sector.

In light of these developments, experts advocate for a coordinated effort among government, educational institutions, and the private sector to align training and educational programs with labor market demands. Jeanette Damo, Executive Director of the Institute for Labor Studies at the Department of Labor and Employment, remarked that the skills gap is a roadblock to both industry growth and economic opportunities.

“The skills gap is a roadblock to both industry growth and economic opportunities.”Jeanette Damo, Executive Director, Institute for Labor Studies

To bridge this gap, she proposed strategies such as expanding labor market information systems and forming partnerships with digital platforms to enhance job matching and workforce development. By collaborating with online job portals like JobStreet and LinkedIn, the Philippines could access real-time data to inform policy decisions and guide educational institutions in updating curricula to meet current industry standards.

As the Philippine workforce grapples with these challenges, the need for a dynamic approach to education and skills development becomes increasingly clear, underscoring the importance of lifelong learning in an ever-evolving job market.