The Asian Development Bank (ADB) has approved a $500 million policy-based loan to support the Philippine government’s efforts in expanding labor market programs aimed at enhancing the productivity and employability of Filipino workers. This initiative is set to foster reforms that will create a more conducive investment environment for job creation.
The Business and Employment Recovery Program-Subprogram 2 assists the government in implementing reforms and initiatives to achieve inclusive economic growth. The program aims to equip the country’s labor force, including vulnerable youth, with the skills needed to meet evolving industry demands. It also focuses on increasing women’s participation in the workforce through technical and vocational education and training (TVET) and improving access to livelihood and employment opportunities via government job facilitation programs.
“While job recovery in the Philippines has been encouraging in the post-COVID-19 period, the quality of jobs remains a critical concern, with many workers still facing challenges such as underemployment, informality, and limited access to decent work opportunities,” said ADB Country Director for the Philippines Pavit Ramachandran. “This new program addresses those needs and will help prepare Filipino workers for higher-skilled jobs in industries such as analytics and artificial intelligence, software development and security, and business process management, where Filipinos have shown great potential.”
Under the program, the government aims to increase formal employment in the private sector by an average of 600,000 to 700,000 jobs per year. The share of private sector jobs in total employment is expected to rise to 51%, up from 49% in 2019, before the COVID-19 pandemic caused massive job losses and a contraction in industry output.
Other targets include providing skills training for 5,000 workers, including those displaced during the COVID-19 pandemic, through private sector-led programs such as SkillsUpNet Philippines. The government also plans to increase job placements through public employment service offices (PESOs) in local government units (LGUs) by 120,000 annually and expand the number of LGUs implementing the JobStart Philippines skills training program for youth not in education, employment, or training.
This program builds on the ADB-financed Facilitating Youth School-to-Work Transition Program, which supported previous labor market reforms and initiatives, including JobStart Philippines and the institutionalization of PESOs. It also complements the Supporting Innovation in the Philippine TVET System, which is helping to upgrade and modernize TVET training institutes managed by the government’s Technical Education and Skills Development Authority.
