Job Skills Mismatch may Hit Philippine Growth
MANILA: Job skills mismatch is a critical concern affecting the Philippines as the growing demand for skills is becoming a constraining factor for the growth of the economy
This has been pointed out in a study entitled “Policy Framework for Improving Labour Market Efficiency Through More Effective Job Skills Matching in the Philippines” by the International Labour Organization, Bureau for Employers Activities (ACT/EMP) and the Employers Confederation of the Philippines (ECOP).
Manila Bulletin quoted the study as revealing that job skills mismatch in the country is more pronounced in manufacturing, electronics/semiconductor and tourism — three areas identified by the Philippine Development Plan as primary job generators for the country.
“There are indications that demand for skills has kept on growing, suggesting that skills are becoming a constraining factor for the growth of the economy,” the study reportedly said.
Job skills mismatch occurs when education and training institutions teach skills that employers no longer demand or when competencies of graduates do not meet the requirement of industries, it added.
The job skills mismatch is manifested in hard or technical skills as well as in soft skills referring mainly to communication, interpersonal management skills and values formation, the report said.
According to the study, mismatch occurs at two levels and impacts two groups: Unemployed youth or out of school youth; and educated unemployment people of working age, it added.
The first level of mismatch occurs where there is a shortage of skilled, qualified and competent workers for certain occupations and industries; workers do not have enough education to enable them to learn and acquire technical competencies and specialized skills, said the news portal.
The second level of mismatch occurs when educated workers join the labor force but there are not enough jobs for them. The skills they acquired through education are not the skills demanded by the economy, it said.
As of July 2014, unemployment rate stood at 6.7 percent or 2.8 million Filipinos. One of the main reasons or causes of unemployment is the mismatch between the needs of demand of the business sector and the skills of the labor force, reported Manila Bulletin.