Addressing Skills Mismatch:

1
Addressing Skills Mismatch LMI, Local Employment
Planning and Career Guidance
Atty. Jalilo O. Dela Torre, OIC, Bureau of Local
Employment
2

• In a labor-surplus economy, were now
  experiencing an unbelievable phenomenon of jobs
  looking for workers.
• Out of 100 workers applying for call center jobs,
  only 5 are hired they need 600,000 more until
  2010, according to BPAP
• 100,000 welders needed locally.
• Commercial airline pilots and aviation
  technicians have flown away and are now
  considered critical skills.
• Mining, geodetic and metallurgical engineers now
  needed by the mining industry but none can be
  extracted from the earth.
• Did you know we dont have enough waiters and
  bartenders? And you thought waitering was easy!

3
Where are the jobs?
4
Key Employment Generators Demand/Supply Situation
Key Employment Generator (2006-2010) Jobs Creation Capacity (2006-2010) In Demand Skills Hard to Fill Occupation
I. Cyberservices 1,383,892 Entry-level Animators, HR Analysts, Financial Accountants, Call Center Agents, Engineers, Editors, Programmers, Engineers, Accountants, Animators, Programmers, Contact Center Agents, Medical Transcriptionists, Editors
II. Mining 39,382 Skilled Engineers, Miner, Surveyor, Geodetic Engineer, Metallurgist Geologists, Mining Engineers, Metallurgical Engineers, Geodetic Engineer
III. Aviation 27,581 Pilot, Mechanic, Air Traffic Controller Pilot, Mechanic
IV. Agribusiness 2,043,755 Inland and Coastal Fishermen, Oyster/Mussel Farm Cultivator, Vegetable Farmer, Fruit Tree Farmer Entrepreneurs, Aquaculturist, Horticulturist
5
Key Employment Generator (2006-2010) Jobs Creation Capacity (2006-2010) In Demand Skills Hard to Fill Occupation
V. Health and Social Work (Health Services/Medical Tourism) 382,495 Trained Nurse, Dentist, Nursing Aide, Health Aide, Massage Therapist Trained Nurse, Surgeon, Spa Therapists, Herbologist, Cosmetic and Reconstructive Surgeon
VI. Hotel and Restaurant 400,280 Front Office Agent/Attendant, Cook, Food Server and Handler, Food and Beverages Attendant, Other Housekeeping Services, Waiter, Bartender Chefs, Front Office Agent/Attendant, Cook, Food Server and Handler, Food and Beverages Attendant, Other Housekeeping Services, Waiter, Bartender
VII. Overseas Employment 5.6 m Seabased, Production, Professional and Technical, Administrative and Managerial, Clerical, Sales, Service, Agricultural Aluminum Fabricator Auto Mechanic, Pipe Welder Pipe Fitter, Carpenter, Marine Deck Officer, Marine Engineer Officer
VIII. Shipbuilding Maritime Marine Officer, Seafarer, Culinary Chef, All occupations under shipbuilding, Welder, Fabricators, Pipe Fitter, Marine Electrician
IX. Construction Architect, Engineer,Welder, HEO, Insulator, Rigger, Fabricator, Pipe Fitter
6
Why do we still have underutilized labor?
7
We believe the culprit is skills
mismatch. Skills mismatch refers to a
condition whereby the skills and education of the
existing workforce do not match the needs of
existing firms and industries. This largely
reflects the fact that a countrys policies,
primarily labor and education, have not adjusted
to the needs of its economic sectors.
8
This phenomenon is not just happening in the
Philippines.
9
Reasons for unemployability of college graduates

• the lack of English language competencies,
• poor interactive skills,
• poor choice of degree courses,
• poor quality degree courses or
• more blatantly, just too many students who barely
  passed their degree examinations.

Reaction by a reader in a blog to a plan of the
Malaysian government to enroll college
undergraduates in skills training to improve
their employability.
10
A substantial portion of the registered 66,000
unemployed graduates are from some of the most
popular courses. Business administration,
computer and information technology, and
engineering are the most sought-after courses by
many school leavers.This has resulted in a high
number of unemployment among graduates from these
disciplines 19,900 business administration
graduates, 9,500 from computer and information
technology, and 7,500 engineering graduates.
The Malay Mail, April 11, 2005
11
Running third is engineering, with 45,444
expected graduates for the year. Compared with
the figures in 1995, when its graduates stood at
46,090, the number dropped by 1.4 percent.
Engineering graduates will have the toughest
time in getting the jobs that they spent time
learning in the colleges they came from. We
produce mostly white-collar engineers. They never
get their hands on. Worse, they are not qualified
to be engineers in its strict sense, Donald
Dee, President, Employers Confederation of the
Philippines
12
The bottomline is, students should pick courses
based on their capabilities and not based on
what's apparently "in-demand" out there (e.g., IT
courses). If you are not cut out for IT or
Engineering, putting yourselves through the
courses is not going to make you more employable
in the IT or Engineering markets.
13
Jobs skills mismatch is a major challenge right
now. A large number of trained graduates are left
unemployed or underemployed because they do not
fit the requirements of the job market. Its
quite ironic that a number of job vacancies could
not be filled up because the available manpower
supply would not fit the job. Secretary of
Education Jeslie Lapus
14
(No Transcript)
15
Percentage of Graduates Employed in Jobs
Requiring Preparation in Field
Field of Study 1995 Graduates () 1991 Graduates ()
Agriculture 25.8 35.7
Architecture 42.4 79.6
Commerce Business 63.9 86.8
Computer Science 38.5 75.5
Dentistry 65.7 89.2
Economics 17.3 31.0
Engineering 59.9 66.3
Fisheries 21.1 66.7
Humanities 19.7 54.6
Language 18.6 60.9
Law 39.4 62.3
Marine Engineering 42.9 56.8
Mass Communications 26.3 58.3
Mathematics 22.9 58.6
Medical Technology 37.8 63.4
Medicine 57.5 87.4
Nautical Science 48.4 38.5
Nursing 41.0 84.5
Physical Science 20.3 63.9
Social Science 29.3 43.0
Teacher Education 41.9 77.4
Veterinary Medicine 43.5
16
(No Transcript)
17
(No Transcript)
18
National Career Assessment Examination
(NCAE)-administered by DepEd to determine the
areas of improvement in the basic educational
system that could address the job mismatch in the
country. 1,305,211 took the test on Jan 17,
2007 49,066 or 3.76 showed high aptitude for
college admission (75 and above in General
Scholastic Aptitude) 757,356 or 58.03
demonstrated high levels of entrepreneurial
skills 711,526 or 54.51 demonstrated high
levels of vocational skills
19

• Why college education is still preferred by most
• College education qualifies them for white-collar
  employment which usually offers a number of
  advantagesmore comfortable and safer workplaces,
  more regular and stable terms of employment, and
  social security protection.
• College education improves their lifestyle, if
  not their social standing.
• CHED 1995 TASK FORCE

20
(No Transcript)
21

• Reasons why public secondary schools dont
  benefit from career guidance and counseling
• Guidance counselors have little time for guidance
  and counseling
• High ratio of students to each guidance counselor
• Lack of training of guidance counselor in career
  guidance and counseling and in testing and
  measurement
• Lack of career and labor market information
• Inadequate budget for career guidance
• Lack of qualified staff to use tests for career
  guidance and counseling

22
What do we do about it?
23
Recommended Strategies and Interventions
24
Labor Market Information

1. For career guidance and advocacy
2. For human resource development planning
3. For jobs skills matching
4. For curriculum development
5. For investments promotion

25
Elements of Local Employment Planning

1. Local economic and labor market analysis
2. Identification of growth economic sectors
3. Developing a human resources development plan for
   the identified growth sectors
4. Initiating a multi-stakeholder dialogue to
   formulate the local employment plan and invest
   ownership
5. Developing employability of constituents through
   skills mapping
6. Developing entrepreneurship capabilities of
   constituents
7. Building capacity of local institutions for
   employment facilitation, jobs creation and
   livelihood promotion

26
Career Information, Guidance and Advocacy

1. Focused on public high schools with no career
   guidance and counseling services
2. Aimed at paradigm shift in career choice decision
   making
3. Interdisciplinary in approach
4. Multi-year scalar implementation
5. Driven by NMS and NHRC recommendations

27
Strategic Framework for Youth Employment
28
Manpower Summits
29
What we can do together
30
International organizations
Government
3(C)1 in
Public Employment Service
ComplementationCollaborationConvergence
Active Labor Market Policies
Industry
Academe
Framework of Engagement in Local Employment
31

• Urgent Tasks for Collaboration among
  DOLE,PESOPHIL and private industry
• Career Advocacy Program Career Information,
  Guidance and Counseling Training Interventions
• Broadening Access to Labor Market Information to
  the Youth
• Addressing Human Resource Challenges of Priority
  Growth Economic Sectors, especially BPO
• Addressing Skills Mismatch through
  Industry-Academe-Government Collaboration for
  Curricular Reform
• Extending Corporate Social Responsibility of BPO
  into the Addressing Vulnerabilities of
  Disadvantaged Sectors