PRESENT LABOR MARKET
CONDITIONS
THE NEED FOR A MORE RESPONSIVE
YOUTH DEVELOPMENT AND
EMPLOYMENT FRAMEWORK
OUTLINE OF PRESENTATION

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Present labor market situation
Emerging labor market challenges
The youth employment and
development framework
PRESENT LABOR MARKET
CONDITIONS

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
In the July 2007 Labor Force Survey,
total employment grew by 2.3 % or
735,000 additional employed persons
This growth was observed mainly in the
services sector which grew by 5.6%
(873,000)
Industry sector remained sluggish
growing only by 0.2 percent (+10,000)
additional new jobs
PRESENT LABOR MARKET
CONDITIONS

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Employment in the combined agri, fishery
and forestry sector was down by 1.2 %
(-149,000), after posting growth in the
last two years
Number of persons in full time
employment went up by 3.6 % (719,000)
PRESENT LABOR MARKET
CONDITIONS


The number of unemployed persons in
July 2007 was reported at 2.8 million,
resulting to an unemployment rate of 7.8
percent.
Two regions recorded a double-digit
unemployment rate, namely, National
Capital Region (NCR) at 13.1 percent and
Central Luzon at 11.5 percent.
PRESENT LABOR MARKET
CONDITIONS

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For every ten (10) unemployed, six (6) are
males and four (4) are females
The age group 15-24 years old account for 51.1
percent of the unemployed, its unemployment
rate is 18 %, more than twice the national rate
Unemployed persons who had attained high
school level comprised 45.5 percent of the total
unemployed; while those who had reached
college level account for 39.4 percent
PRESENT LABOR MARKET
CONDITIONS

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
Unemployed are better educated than the
employed workforce
Incidence of unemployment tended to
increase with the years of education
Mean weeks looking for work has been
getting longer
PRESENT LABOR MARKET
SITUATION

Mean monthly waiting time of graduates
after actively looking for a job varies by
school:
UP graduate – 1.82 months
DLSU graduates – 2.42 months
Ateneo graduates –2.91 months
Other Us/Cs graduates – at least
5.33 months
PRESENT LABOR MARKET
SITUATION
Results of content analysis on job adds:

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Bulk of job orders are mostly for
accountancy-related fields, medicalrelated fields (mostly care-givers, doctors
and nurses), engineering and IT-related
positions.
Big number of vacancies for vocational
graduates like automotive and IT-related
courses; and
PRESENT LABOR MARKET
SITUATION

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Most of jobs advertised require some
level of skills proficiency
Almost all jobs advertised require at
least 6 months working experience
PRESENT LABOR MARKET
SITUATION

Globalization has collapsed several rigidstructures of employment; brought about
patterns like shorter life cycles of jobs and
faster onset of product and skills
obsolescence while breeding greater
premium for highly skilled, specialized and
knowledge-based workers
PRESENT LABOR MARKET
SITUATION

Technological changes have made it
possible to reshape production through
new forms of industrial organization,
including subcontracting and the spatial
reorganization of production systems
PRESENT LABOR MARKET
SITUATION
This has also led to the emergence of new
forms of work arrangements:
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Telework (both mobile and home-based)
Virtual offices or telecenters
Out-sourcing
E-recruiting
Multiple jobs/employers
PRESENT LABOR MARKET
SITUATION

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Skill composition of the workforce is
changing along with large-scale entry of
women into the labor market and the
emergence of a worker-competence
divide
Trend towards enterprise downsizing and
a shift in industrial employment away
from large enterprises, which is due in
part to technological changes
PRESENT LABOR MARKET
SITUATION

Practices such as subcontracting,
outsourcing and the hiring of flexible
(temporary, casuals, contractuals
and part-time) workers, long
considered as atypical employment,
are becoming more typical, especially
at the lower end of the labor market
PRESENT LABOR MARKET
SITUATION

Other emerging forms of flexible works
include teleworking, virtual offices, call
centers, which are all made possible thru
the information highway
CURRENT PROGRAMS
ASSESSMENT AND
RECOMENDATIONS
On the DEMAND side …
•
Programs on livelihood, microfinance and
public-private partnership are being carried out,
but need to be disseminated, coordinated, and
for partners to converge efforts especially at
local level;
On the SUPPLY side …
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Education reforms are being initiated
There are also scholarships (like PGMA, SPES)
and different types of trainings delivered by
GOs (*DOLE, DSWD, TESDA), but
implementation/availment has to be revisited to
ensure that it reaches its target youth segment
On the INSTITUTIONAL side …
• Efforts at making LMI more efficient,
thru PESOs, career guidance, different
media like internet (PhilJobNet);
programs’ reach include also the
parents and other groups
Other ASSESSMENT insights…
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Ensure that programs reach the
proper targets – i.e., clearer
targeting in terms of youth segments
Establish program mechanisms
autonomous from political influences
Conduct evidence-based and
evidence-informed assessment
TOWARDS A STRATEGIC
YOUTH EMPLOYMENT
PROGRAM AGENDA FOR
CY 2007-2010
On the DEMAND side …

Demand for work is the area of the private
sector; mostly the economic-related
agencies are really in-charge of the
demand-related programs but not
separate from supply; must be able to
coordinate

Youth Entrepreneurship and business
enhancement program – key program –
DOLE, DTI and LGUs; other agencies can
be involved – like TESDA
On the SUPPLY side …
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Put more innovation on the WAP
Revitalize and strengthen WYC
Integration of education and
employment planning; a solution to
mismatch
Implementation of common
competency framework and
standards across industries
On the INSTITUTIONAL side …
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Capability bldg for LGUs - database, gather
statistics at all levels; actual training of LGUs
on youth employment planning – DILG/DOLE
Localization and broadening of access of
youth to LMI, career and employment
guidance, referrals, all components under
improving labor market
Integrated Youth Employment &
Development Program – under one holistic
program – various programs, retooling, etc,
runs the whole gamut from formation of
youth to employment
Philippine Program for Youth Development and Employment (Priority: Disadvantaged Youth Aged 15-24 years old)
VISION:
Productive and Competitive Youth by 2010
Strategic
Goals
Strategic
Actions
Programs/
Projects
Increased Self-worth,
Disciplined,
Responsible Youth
Value
Formation,
Education
&
Training
• Value for Work
• Discovery of the
World of Work
(WOW)
• KasH
• WAP
• Dual Training
Program/Tec-Voc
• OFW Kids Value
Re-Orientation/Family
Welfare
• Skills Training,
Assessment &
Accreditation
• Adolescent Health
Education
• Alternative Learning
System
• Ladderized Program
• PGMA Training for
Work Scholarship
Increased Employability,
Mobility & Competency
Career
Planning
• Career
Guidance Blitz
• Training on
Guidance &
Counseling
Skills
• Y-4 Profile
• TW School
Program
• NCA Exam
• Accreditation
of Guidance
Counselors
Employment
Facilitation
• Broadening
Access to
LMI
• SPES
• PEOs
• PESO LMI
• Employment
Kiosks
Reduced Mismatch
of Youth Skills
Supply & Demand
Youth
Entrepreneurship
& Employment
Creation
• Revitalized WYC
( One-stop
Centers & the
LGU, Indigenous
Youth)
• SEA-K
• LGU Youth Centers
• Farm Youth
Development
Program
• 4 H-Club
• Worktrep
• OSY- OWY
Emergency
Employment – kkk
• Youth Salaam
Corps
Increased Youth Engaged in
Profitable & Sustainable
Enterprises
Policy Management &
Institutional Capacity
Building/ Development &
Coordination
of the Strategies; LGU-led
Convergence
• Inter-agency Review/
Development of Curriculum
• IAC on Youth Development
& Employment/Youth
Participation/Representation
• Policy Review/Development
on Allowable Work for
15 to < 18
• Better Remittance
Management
Policy
• Investment Policy
Management
• LYDC-LYDP
• Skills Registry
• Integrated Philippine
Occupational Demand &
Supply Information System
(i-PODS)
THANK YOU!