The Journey From Education To Unemployment

The Journey From instruction To UnemploymentEXECUTIVE SUMMARYThe jobs- scientific disciplines couple in the c misfortunatenish has been in existence since 1965. It was observed by experts sideline an imbalance of manpower culture and manpower need (Bernardino, 1965, pp 3-4) and a great number of unemployed with college degrees (Limcaco, 1965, p. 8). It was reite sum upd in the 1970 report of the PresidentiaCommission to Survey Filipino Education (PCSPE) that found a mismatch amidst students college courses and the prep bedness required by the world of produce (Santamaria, 1979).The prevalent mismatch betwixt the commandmental system and the employment field is a go on concern in the country.The conduct of the National Manpower Summit and National Human Resource Conference in 2006 and 2007 respectively, which were spearheaded by DOLE and attended by various stakeholders, identified the gaps between translate of the comprehend urinateforce and market engage. These yi elded some(prenominal) recommendations. Through personal interviews with the tweet management of various stakeholders such as DOLE, ECOP, TESDA, PMAP and other companies and employers, the team was able to gather comparative data to reinforce the presence of the mismatch. The facts are support by figures in the websites.The engage recognizes that the aggregate supply of graduates is greater than the market demand thitherby resulting to unemployment or underemployment. This is where the mismatch occurs. The study identified tether levels of mismatch 1) on the number of graduates vs. the number of jobs available 2) on the quality of graduates vs. effort expectations and 3) on the skills acquired vs. skills required.The jobs-skills mismatch is greatly influenced by the macro environmental factors, namely social, political, economic and technological. Included among the Social factors are high commonwealth growth and an increasing incidence of poverty. This high population growth cancels out the effect of economic growth particularly the beingness of jobs to absorb the excess labor supply. As regards political factors, there is no central shaping that brings all the stakeholders (Employers, Employees, Sector groups, NGOs etc.) under one umbrella to make sure that all the stakeholders fake together. Also, there is a lack of government program to inform the potential workforce on the requirements of the market (i.e. what courses to take, what skills are needed, etc.). On economic factors, high levels of keep up economic growth is needed to reduce the unemployment and underemployment rate. And finally, technological factors, developmental institutions should acquire modern advanced technology to match the requirements of the rapidly changing and the egroup meeting industries.This study proposes short and long term possible solutions to address the mismatch. Some of these recommendations are the conduct of National conference involving employer groups s uch as ECOP and PCCI as well as captains of industries to draw up one united and uniform comprehensive plan creation of Human Resource Development Partnership between education institutions and industries and creation of National Curriculum Research Institute that entrust constantly study and review current curricula, damp and recommend revisions among others.In the evaluation of the education institutions and the industries, there is a significant mismatch between what the institutions produce and what the market demands. The jobs-skills mismatch is a major contributing factor in the unemployment rate in the country. Hence, addressing mismatch could remarkably decrease unemployment rate.More active participation and stricter intervention of the government is needed to address the mismatch problem in the country.OBJECTIVE OF THE STUDYThis study seeks toExamine the system of supply and demand of the labor workforce in the countryIdentify the causes and effects of the jobs-skills mi smatch andCome up with recommendations in register the gap between the supply and demand.SCOPE AND LIMITATION OF THE STUDYThe scope of this study is limited to the mismatch in the Philippines job market. It centeres on the mismatch between the number of graduates in each course and the number of vacancies in each industry in the country.For the purpose of this study, let us clearly define that the skill acquired is the vocational course or college while the skill required is the job vacancy.METHODOLOGYThe sources of information of the study are composed of two methods the primary and the unessential method. For the primary method, the team conducted interviews with the antithetical key personalities of various stakeholders, i.e. Department of application and Employment (DOLE), the Employers Confederation of the Philippines (ECOP) and Peoples marketplaceing Association of the Philippines (PMAP). The team used the same prune of questions to test if the interviews ordain yiel d similar findings. For the secondary method, the team used company manuals, statistics and data gathered from the internet and other studies previously conducted by different individuals and groups on jobs-skills mismatch.DETAILED REPORTINTRODUCTIONThe jobs-skills mismatch in the country has been in existence since 1965. It was observed by experts following an imbalance of manpower training and manpower need (Bernardino, 1965, pp 3-4) and a great number of unemployed with college degrees (Limcaco, 1965, p. 8). It was reiterated in the 1970 report of the PresidentiaCommission to Survey Philippine Education (PCSPE) that found a mismatch between students college courses and the training required by the world of work (Santamaria, 1979).The conduct of the National Manpower Summit in 2006 and 2007 initiated by DOLE identified the gaps and made several recommendations. Government restructuring or the creation of a single government agency to address employment concerns is one of the comm on solutions recommended by various employment stakeholders. It is supported by the study of TESDA in their papers Skills development and recognition in Asia and the Pacific. An HRD Central Agency will be established to develop policies and programs for the establishment of a strong HRD sector in the government. According to the paper of Andrew Gonzales en appellationd high Education, Brain Drain and Overseas employment in the Philippines-Toward a differetiated set of solution, the Philippine case of mismatch between the manpower needs of the country and the output of the higher education system is an example of interlocking conflicts.Data show concrete indication of the gap between our educational system and the employment sectors. In 2010 alone, only 82% of the new-sprung(prenominal) graduates are new hires, 18.5% of the college graduates are among the unemployed and as of 2010, the Department of Labor and Employment (DOLE) identified 54, 417 job vacancies. superstar of the non able causes of mismatch is the lack of infomration by families and individuals in the labor market requirements. Because of this, institutions may feature provided the graduates the skills that are not necessarily required by the market.MAJOR STAKEHOLDERSEMPLOYERS CONFEDERATION OF THE PHILIPPINES (ECOP)The Employers Confederation of the Philippines (ECOP) is the single voice for the entire business community in the country on important issue issues related to employment, industrial relations, labor issues and related social policies. ECOP was born on September 10, 1975. Before ECOP, the business sector and employers in the country were represented by two major business compositions, namely the house of Commerce of the Philippines (CCP) and the Philippine bedroom of Industries (PCI). The creation of ECOP made tripartism a reality, with the switch Union Congress of the Philippines (TUCP) representing a labor sector, and the Department of Labor and Employment and the other agenci es as the bow instrumentality.On May 1, 1978, the government through presidential Letter of Instruction (LOI) 688 recognized ECOP as the single voice of employers, to be consulted by the government, together with labor, in the promulgation of a scheme which would promote and actualise an adequacy machinery for cooperation between labor and management at approapriate levels of the enterprise.DEPARTMENT OF LABOR AND EMPLOYMENT (DOLE)The Department of Labor and Employment (DOLE) started as a small part in 1908. It became a department on December 8, 1933 with the passage of Act 4121. The DOLE is the national government agency mandated to formulate and implement policies and programs, and serve as the policy-advisory arm of the Executive Branch in the field of labor and employment. It consists of the Office of the Secretary, 7 bureaus, 6 services, 16 regional offices, 12 attached agencies and 38 a roomy offices with a full manpower complement of 9,806. It operates on a current budget of Php 6.618 B and ranks 14th out of 21 departments. The vision and mission are consistent with the Platform and Policy Pronouncements on Labor and Employment of President Benigno S. Aquino IIIs administration, herein referred to as the 22-Point Labor and Employment Agenda, the DOLE is the lead agency mandated to develop the competencies and competitiveness of Filipino workers, to deliver employment facilitation services for full and decent employment, and to promote industrial peace based on social justice. It serves more than 38.51 jillion workers comprising the countrys labor force , including the 3.62 million temporary migrants working in about 215 destinations worldwide . The DOLE clients include trade unions, workers organizations and employers and/or employers groups (i.e., ECOP, chambers of commerce and industries, TUCP, FFW, etc). on that point are 123 existing Tripartite Industrial Peace Councils or TIPCs (13 regional, 44 provincial, and 66 city/municipal) and 128 exist ing Industry Tripartite Councils (46 regional, 48 provincial and 34 city/municipal) serving as mechanisms for social dialogue in addressing labor and employment issues. The DOLE excessively maintains linkages with non-government organizations (NGOs), government agencies, the academe, partner international organizations (e.g., ILO, IOM, IMO, UNDP, UNICEF), and with the international community, particularly the host countries where our OFWs are based.DEPARTMENT OF EDUCATION (DepEd)Education in the Philippines has undergone several stages of development from the pre-Spanish times to the present. In meeting the needs of the society, education serves as focus of emphases/priorities of the leadership at certain periods/epochs in our national struggle as a race.The DepEd was transformed from the former Department of Education, Culture and Sports (DECS) to the Department of Education (DepEd) and redefining the federal agency of field offices (regional offices, division offices, district o ffices and schools). RA 9155 provides the overall framework for (i) school head empowerment by strengthening their leadership roles and (ii) school-based management within the stage setting of transparency and local accountability. The goal of basic education is to provide the school age population and young adults with skills, knowledge, and values to become caring, self-reliant, productive and patriotic citizens. committee ON HIGHER EDUCATION (CHED)The CHED was created on May 18, 1994 as an attached agency to the Office of the President for administrative purposes. The creation of CHED was part of a broad agenda of reforms on the countrys education system outlined by the Congressional Commission on Education (EDCOM) in 1992. Part of the reforms was the trifocalization of the education sector into three governing bodies. The CHED for tertiary and graduate education, the DepEd for basic education and the TESDA for technical-vocational and middle level education.TECHNICAL EDUCATION AND SKILLS DEVELOPMENT AUTHORITY (TESDA)The skilful Education and Skills Development way (TESDA) was established through the enactment of Republic Act No. 7796 otherwise known as the Technical Education and Skills Development Act of 1994, which was signed into natural law by President Fidel V. Ramos on August 25, 1994. This Act aims to encourage the full participation of and mobilize the industry, labor, local government units and technical-vocational institutions in the skills development of the countrys human picks.The merging of the National Manpower and Youth Council (NMYC) of the Department of Labor and Employment (DOLE). The Bureau of Technical and Vocational Education (BTVE) of the Department of Education, Culture and Sports (DECS), and The Apprenticeship Program of the Bureau of topical anesthetic Employment (BLE) of the DOLE gave birth to TESDA.The fusion of the above offices was one of the key recommendations of the 1991 Report of the Congressional Commission on Educat ion, which undertook a national review of the state of Philippine education and manpower development. It was meant to reduce overlapping in skills development activities initiated by various public and private sector agencies, and to provide national directions for the countrys technical-vocational education and training (TVET) system. Hence, a major thrust of TESDA is the formulation of a comprehensive development plan for middle-level manpower based on the National Technical Education and Skills Development Plan. This plan shall provide for a reformed industry-based training program that includes apprenticeship, dual training system and other similar schemes.TESDA is mandated toIntegrate, coordinate and admonisher skills development programsRestructure efforts to promote and develop middle-level manpowerApprove skills standards and testsDevelop an accreditation system for institutions involved in middle-level manpower development computer memory programs and projects for technica l education and skills development andAssist trainers training programs.At the same time, TESDA is expected toDevolve training functions to local governmentsReform the apprenticeship programInvolve industry/employers in skills trainingFormulate a skills development planDevelop and administer training incentivesOrganize skills competitions andManage skills development funds.Overall, TESDA formulates manpower and skills plans, sets appropriate skills standards and tests, coordinates and monitors manpower policies and programs, and provides policy directions and guidelines for resource allocation for the TVET institutions in both the private and public sectors.Today, TESDA has evolved into an organization that is responsive, effective and efficient in delivering myriad services to its clients. To accomplish its multi-pronged mission, the TESDA carte du jour has been formulating strategies and programs geared towards yielding the highest impact on manpower development in various areas, industry sectors and institutions.PEOPLE MANAGEMENT ASSOCIATION OF THE PHILIPPINES (PMAP)PMAP is strictly profesional, non-stock, not for service organization of over 1,800 member companies and individual management executives engaged or interested in Human Resource Management and IR works.UNIVERSAL rise to power OF COMPETITIVENESS AND TRADE (UACT)U-ACT is a private sector-led, non-stock, non-profit, advocacy and research think-tank, affiliated with the PCCI primarily focused on issues relating to trade policy making, trade negotiations and agreements, economic, sectoral and human resource competitiveness.U-ACT is the driver of private sector in the conduct of trade policy and economic competitiveness activities by, analyzing trade policies and agreements, championing institutional reforms, and developing strategic interventions for economic, industry, and economic reforms and adjustment measures.Through established linkages with industry, government and the academe, U-ACT is ab le to provide the policy and operational support to bring forth measures that enhances the competitiveness of local production networks resulting to economic reforms that will enable global market access of Philippine goods and services.It also provides the structure to develop information and monitoring systems and capacity-building for trade negotiations, making private sector a better-informed group and take advantage of opportunities from trade liberalization.U-ACT is an independent think tank providing proactive, credible, balanced economic and trade competitiveness advocacy, research and training services to Philippine private sector.PHILIPPINE CHAMBER OF COMMERCE AND INDUSTRIES (PCCI)The Chamber movement in the Philippines has been in a constant state of evolution for over a century. One can say that the eminent position now being enjoyed by the Philippine Chamber of Commerce and Industry (PCCI) in the business community traces its raison d etre from a history interwoven into our nations own history of economic, political and social upheavals.The roots of the Chamber Movement can be traced to the 1890s with the formation of the Camara de Comercio de Filipinas. This organization was composed mainly of Spanish companies such as the Compania General de Tobacco de Filipinas, the Fabrica de Cervesa San Miguel and Elizalde Y Cia, among others.This was followed by the creation of the Chamber of Commerce of the Philippines (CCP) in 1903, shortly afterward the countrys turnover to the United States. The rise of industries in the 1950s created the need for several industry groups to organize an association that would represent their interests and concerns amid the changing panorama of the economy. Thus, the Philippine Chamber of Industry (PCI) was formed.In July 1978, the Chamber of Commerce of the Philippines (CCP) and the Philippine Chamber of Industry (PCI) merged to give birth to a single, unified private sector organization phoneed the PHILIPPINE CHAMBER O F COMMERCE AND INDUSTRY (PCCI).That same year, by virtue of Letter of Instruction no. 780, then President Ferdinand E. Marcos recognized the Philippine Chamber of Commerce and Industry as the sole official representative and voice of the entire private business community.MACRO ENVIRONMENT ANALYSISSocial Factors attributing to mismatchHigh population growth and increasing incidence of poverty are some of the main factors for the mismatch in job market. The problem is aggravated when the rate of economic growth is slight than the rate of population growth. High population growth led to repeated pregnancy which lowers the women participation in labor force.Higher number of children in a family with low-income level makes it difficult for the family to send all the children for higher education. Less dense populated provinces dont have good schools which results in less skilled workforce.Political Factors attributing to mismatchThere is no central organization which brings all the stak eholders (Employers, Employees, Sector groups, NGOs etc.) under one umbrella and makes sure that all the stakeholders work together, are heard and have ownership. Also, there is a lack of government program to inform the potential workforce on the requirements of the market (i.e. what courses to take, what skills are needed, etc.)Labor code and existing work-related laws have not been reassessed and reviewed to adapt to the changing times.Government slip awaying on Education is increasing (Annexure-Chart1) but major portion (approx 89%) of that goes to the maintenance of DepEd, wages etc. There is only small portion left for the improvement of infrastructure of existing schools or opening new schools. economic Factors attributing to mismatchAccording to ECOP, the reduction of chronic unemployment and under- employment is not possible without higher levels of sustained growth. For families with low-income it is very difficult to send their children to attend costly courses. Further, low income individuals consider the duration of course as a major factor in the decision making as he cant afford to spend couple of years without any income.To ensure quality of learning, the quality of teaching must be met. Due to low salary, teachers of high quality choose to work abroad for higher salary. With low-quality of teachers one cannot produce quality workforce with proper skill set.Chronic unemployment and jobless growth also add to the problem of mismatch. witness ECOPProblem of shrinking/stagnant formal sector and expanding informal sector must be addressed in order to tackle the mismatch problem. ancestry ECOPTechnological Factors attributing to mismatchIn a fast changing world where technology and required skill-sets are changing very rapidly, it is very difficult for the schools and training institutes to match the requirement of the employers because they do not possess the modern advanced technology and the cost to invest in new technology infrastructure. Also sometimes the improvement in technology or processes in an organization led to reduction in the workforce.SUPPLY The Educational InstitutesTo effectively ful carry out the current and rising needs of the economy, human resources must be competitive and must possess updated skills. Qualified skilled human resources must be available at the in good order place, at right time and at the right quantity and quality to meet the changing demands of the economy.Major Supply issues in Philippines areJobsskills mismatchEnglish, communicating and Information Technology (IT) Skills GapBrain drainOver supply of NursesSupply of Skilled WorkersSupply of ProfessionalsDeparment of labour and empolyment had publised below Statistics vide its publication Labour Market monitorFor period 3rd Quarter of 2010, the cumulative total of professionals registered with the Professional Regulation Commission (PRC) stood at 3,090,120. The top professions consisted of the followingBy specific occupation, the to p ten occupations in terms of the mediocre number of registered applicants consisted of the following, accounting for more than three fourths (38.7%) of the total registrants during the reference periodDEMAND The EmployersMajor Demand issues areRetaining the best talentsMedical tourism to generate employment for nursesPositioning The Philippines as a Creative HubAs shown in the table below are the average numbers of occupational vacancy available with the percentage shareThe GAP between Demand and SupplyAccording to DOLE, the following are the in demand and hard to fill occupations in key employment generators from 2010 to 2015INDUSTRYIN-DEMANDHARD-TO-FILL1. AGRIBUSINESSAnimal Husbandry, Agriculture, Economist, Aqua-culturist, coconut farmer, entomologist (plant), farmer (fruit, vegetable and root cropsFeed central processor and Food Technician, Fishery technologist2. CYBER SERVICES3. HEALTH AND WELLNESSNurse, Horologist, Optician, OptometristDoctor, Physical Therapist, Pharmacis t, Medical Technologist, Laboratory Technician4. HOTEL AND RESTAURANT TOURISMFront Office instrument / Attendant, Baker /Food server /Waiter/Other House keepingCook5. MININGGeologist, Mining Engineer, Geodetic Engineer, Metallurgical Engineer6. CONSTRUCTION fibber/Pipe Fitter/WelderEngineer (Civil, Electrical, Design)7. BANKING AND FINANCEOperations Manager/TellerAccounting Clerks, Book Keepers, Auditors8. MANUFACTURINGElectrical, Technicians, Food technologist, Machine Operators, SewersChemist, Electrical engineer, Industrial engineer, IT specialist, machinist, machinelike engineers, Mechanical Technicians, Chemical engineer9. OWNERSHIP DWELLINGS AND REAL STATEBuilding Manager, Construction Manager, Construction worker, foreman, Mason, welder, real acres agents/brokers, MarketerCivil engineer, Mechanical engineer, Surveyor, firinghitect10. embark AND LOGISTICSChecker, Maintenance mechanics, StewardsGantry operator, Ground engineer, Heavy equipment operator, Long haul driver, op erator, Pilot, Transport and Logistics Machinery, operator, aircraft mechanic and other related skills.Broadly, the DOLE survey defined hardtofill occupations as job vacancies for which an establishment has encountered difficulties in managing the recruitment process. Reasons may include no applicants, applicants lack of experience, skill or license, preference for working abroad, seeking higher salary or problem with location and other reasons. The indemand occupations refer to active occupations/job vacancies posted/advertised recurrently by and across industries/establishments.DEMAND versus SUPPLY1. Agriculture and Fishery SectorIndemand occupations with limited supply of certified workers are horticulturists and fisherman.2. Cyber servicesShortages of supply are seen in animators (clean up artists, 3D animators, multimedia artist among others) .This scenario on animators is attributed to the continuous flight of workers to overseas (Singapore, Australia, US etc.)3. Health and W ellnessNurses are shifting careers to become call centers agents because of the difficulty in finding jobs abroad, particularly in the United States, which has recently imposed visa restrictions. The United States will be more open to nurses because of its new law on expanded insurance coverage, which will drive the health care industry to create job opportunities for health workers like nurses.4. MiningThe dig industry is currently showing potential for job opportunities. This sector requires intervention, particularly in the academic and technical areas. This is evident as hardtofill occupations for the sector is mostly professional. These include geologist, mining engineer, geodetic engineer, and metallurgical engineer.5. ConstructionThe sectors indemand occupations include fabricator, pipe fitter and welder. These welders are Shielded Metal Arc Welder (SMAW), Gas Metal Arc Welder (GMAW) and Gas Tungsten Arc Welder/TIG Welder (GTAW). However, very limited supply is seen in Subme rged Arc Welder (SAW), Gas OxyAcetylene Welder, and fuse Cored Arc Welder.6. Banking and FinanceUnder the sector of Health, Social and other Community Services is Banking and Finance. This sector listed indemand and hardtofill occupations from the professional group. Among the indemand occupations are operations manager and tellers which are graduates of Banking and Finance or Business Management courses. Hardtofill occupations include accounting clerks, bookkeepers, cashier, auditor, accountant, credit carte du jour analyst, finance analyst/specialist and risk management officer/manager.7. ManufacturingThe manufacturing sector includes critical skills such as machine operators, lathe operators, bench workers/fitters, technicians, machinists, sewers, and tailors among others. Machine Operator (Press worker) also an indemand occupation has no available manpower supply.8. Dwellings and Real EstateThe sector identified building manager, construction manager, construction worker, forem an, mason, welder and real estate agents/broker as indemand occupations. Professional occupations such as civil engineer, mechanical engineer, surveyor and architect are among the hardto fill occupations for the sector.9. Transport and LogisticsThe place and logistics sectors which cut across construction and mining industries identified checker, maintenance mechanics and stewardess as indemand occupations. Maintenance mechanics with occupational title such as automotive senior technician, automotive air-conditioning technician, automotive electrician, and automotive LPGfuel technician among others have very limited supply of 21 certified workers.10. wholesale and Retail TradeThe wholesale and retail trade industry continues to thrive in the country as general economic outlook improves and consumer spending rises. As more wholesale and retail enterprises are established, more job opportunities are provided.Problem arising due to mismatchSkill mismatch makes labor market uneffecti ve and imperfect. Job hiring and seeking become expensive. Many vacancies and job openings remain opened. This results in increased unemployment and also hampers the growth of business and the economy of the country.CONCLUSIONS AND RECOMMENDATIONSCONCLUSIONSIn the evaluation of the education institutions and the industries, there is a significant mismatch between what the institutions produce and what the market demands. The jobs-skills mismatch is a major contributing factor in the unemployment rate in the country. Hence, addressing mismatch could remarkably decrease unemployment rate.One of the causes of the mismatch is the lack of coordination between educational institutions and industry leaders. As a result, institutions produce more graduates that are not needed in the market. The setting up of a department that would link the education institutions to the industry could be a big step in addressing the mismatch.However, mismatch does not only happen when the labor workforce ac quire skills that are not required by the market. Mismatch also occurs in the quality of skills that the graduates acquired vis a vis the demand of the industries. Graduates dont usually possess other skills that industries require interpersonal, communication, and leadership.More active participation and stricter intervention of the government is needed to address the mismatch problem in the country. The intention is simply to make the equation EDUCATION = EMPLOYMENT works.RECOMMENDATIONSAfter a careful review and analysis of available data, the team came up with the following recommendationsShort TermIn the short term, separate existing initiatives done in the area of addressing the mismatch by public as well as private entities can be consolidated with government taking the lead by way of bringing together various agencies like the Department of Education (DEPED), the Commission on Higher Education (CHED), the Department of Labor in Industry (DOLE), the Technical Education and Sk ills Development Authority (TESDA) to spearhead a national conference involving employer groups such as ECOP and PCCI as well as captains of industries to draw up one united and uniform comprehensive plan.Long term1) A Department of Human Resource Development shall be established. This department will ensure linkage between the education and labor sectors. It shall formulate, among others, an employment plan which will serve as a guide for the education sector on what skills to produce to match the skills required by the industries.2) Establishment of a central accreditation or re