Philippine Education Summit 2016 LINKING EDUCATION AND THE ECONOMY

4 Nov 2016 SMX Mall of Asia

THE MISSING LINK

High and persistent unemployment

Sources: ADB, Bloomberg, PSA, SG Ministry of Manpower

7.0 7.0 7.1 6.8

5.8

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

2011 2012 2013 2014 2015

Indonesia Malaysia Philippines Singapore Thailand

High and persistent unemployment

Country 2011 2012 2013 2014 2015 Ave

Indonesia 6.6 6.1 5.9 5.9 6.2 6.1

Malaysia 3.1 3.0 3.1 2.85 3.15 3.0

Philippines 7.0 7.0 7.1 6.8 5.8 6.7

Singapore 2.7 2.6 2.6 2.0 1.9 2.4

Thailand 0.7 0.7 0.7 0.6 0.6 1.5

Sources: ADB, Bloomberg, PSA, SG Ministry of Manpower

Sources: ADB, ILO, PSA

High youth unemployment

48%

28%

12%

7%

4% 1%

Unemployment rate, by age group

15-24 25-34 35-44 45-54 55-64 65 and over

Total unemployed youth = 1.13M Filipinos (as of July 2016)

12.9

12.4

14.4

World ASEAN Philippines

Youth unemployment rates, 2015

Jobs-skills mismatch “A serious bottleneck for innovation and productivity among Filipino companies”—The World Bank, 2011

Source: Almeida 2009.

0 5

10 15 20 25 30 35

Cambodia Indonesia Malaysia Philippines Thailand

Share (%) of firms reporting worker skills as an obstacle, 2011

Moderate obstacle Severe obstacle

Jobs-skills mismatch

Source: WB 2011.

0 5 10 15 20 25 30 35 40

Other reasons

Quantity of education/training

Quality of education/training

Staff turnover

Starting pay too low

Emigration of skilled workers

Reasons for skills shortages, 2011

Services Manufacturing

Around the world, government

and businesses face a conundrum:

high levels of youth unemployment and a shortage of job seekers

with critical skills. How can a country successfully move its young people from education to employment?

“

”

THE WORKSHOP

Linking education and the economy

Workshop objectives

1.  Identify issues and challenges in enhancing the link between education and the economy

2.  Recommend relevant and concrete policy solutions/measures

3.  Explore concrete ways to collaborate

Linking education and the economy

Caveats: 3 Mismatches

*Note 1: It should be about competencies *Note 2: It should not only be about higher education

1.  Wrong courses/programs 2.  Weak general competencies 3.  Weak specific competencies

Linking education and the economy

Features of successful programs

Education providers and employers: 1.  Actively step into one another’s worlds

•  Employers help design curricula and offer employees as faculty

•  Students spend half their time on a job site 2.  Work with their students early and intensely

The National Industry-Academe Council

Brings together industry and academe leaders to create a short- to medium-term agenda

addressing jobs-skills mismatch in the Philippines

Goal:

Get as many of the right people into the right jobs and careers

Workforce planning

HR management

Skills development

Bridge skills gap to meet current and future

labor market demands

Increased productivity

Greater employment

Workforce development

Philippine Education Summit 2016 LINKING EDUCATION AND THE ECONOMY