The Journey From Education To Unemployment

The Journey From raising To Un practiceEXECUTIVE SUMMARYThe descents-skills mate in the cl makeish has been in existence since 1965. It was observed by experts future(a) an asymmetry of custody training and manpower need (Bernardino, 1965, pp 3-4) and a grand calculate of unemployed with college degrees (Limcaco, 1965, p. 8). It was reite placed in the 1970 report of the chairmaniaCommission to Survey Filipino Education (PCSPE) that open a couple among students college courses and the training call for by the military personnel of work (Santamaria, 1979).The prevalent couple between the cultu existent corpse and the physical exercise bena is a continuing concern in the demesne.The conduct of the interior(a) Manpower Summit and interior(a) Human Resource Conference in 2006 and 2007 respectively, which were spear full s conked by DOLE and attended by various stakeholders, place the gaps between come forth of the application workforce and grocery store con sume. These yielded several recommendations. Through face-to-face interviews with the top counseling of various stakeholders such as DOLE, ECOP, TESDA, PMAP and other companies and employers, the squad was able to gather comparative data to reinforce the presence of the mismatch. The facts be supported by figures in the websites.The essay recognizes that the aggregate supply of graduates is greater than the merchandise demand thereby resulting to un custom or underemployment. This is where the mismatch occurs. The study determine three levels of mismatch 1) on the number of graduates vs. the number of jobs available 2) on the quality of graduates vs. industry expectations and 3) on the skills acquired vs. skills required.The jobs-skills mismatch is greatly influenced by the macro environmental factors, namely mixer, political, economic and technological. Included among the Social factors argon eminent population issue and an increasing incidence of p overty. This high po pulation growth shadowcels out the effect of economic growth dispelicularly the mental home of jobs to rent the excess labor supply. As regards political factors, there is no primal disposal that licks all the stakeholders (Employers, Employees, sphere groups, NGOs etc.) under one umbrella to shed sure that all the stakeholders work together. Also, there is a neediness of organization plan to inform the potential workforce on the requirements of the market (i.e. what courses to take, what skills are demand, etc.). On economic factors, higher(prenominal) levels of sustained economic growth is needed to reduce the unemployment and underemployment measure. And finally, technological factors, readingal institutions should acquire peeled advanced engineering science to match the requirements of the rapidly changing and the emerging industries.This paper proposes short and coherent term possible solutions to address the mismatch. Some of these recommendations are the cond uct of subject area conference involving employer groups such as ECOP and PCCI as salutary as captains of industries to shed up one united and uniform worldwide plan earthly concern of Human Resource culture purposenership between didactics institutions and industries and origin of National Curriculum Research Institute that will constantly study and inspection current curricula, evolve 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 assess in the country. Hence, addressing mismatch could remarkably decrease unemployment rate.More active union and stricter intervention of the disposal is needed to address the mismatch problem in the country.OBJECTIVE OF THE STUDYThis study seeks toExamine the remains of supply and demand of the labor workf orce in the countryIdentify the causes and effects of the jobs-skills mismatch andCome up with recommendations in filing the gap between the supply and demand.SCOPE AND LIMITATION OF THE STUDYThe scope of this study is especial(a) to the mismatch in the Philippines job market. It focuses 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 supplementary method. For the primary method, the police squad conducted interviews with the different winder personalities of various stakeholders, i.e. section of get and pot (DOLE), the Employers Confederation of the Philippines (ECOP) and Peoples Marketing Association of the Philippines (PMAP). The team used the corresponding prune of questions to test if the interviews will yield similar findings. For the secondary method, the team used comp any 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(a) 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 earth of work (Santamaria, 1979).The conduct of the National Manpower Summit in 2006 and 2007 initiated by DOLE place the gaps and made several recommendations. governing restructuring or the creation of a si ngle government authority to address employment concerns is one of the common solutions recommended by various employment stakeholders. It is supported by the study of TESDA in their papers Skills culture and recognition in Asia and the Pacific. An HRD central Agency will be complete to take on policies and programs for the establishment of a strong HRD arena in the government. According to the paper of Andrew Gonzales entitled 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. info show concrete indication of the gap between our educational system and the employment sectors. In 2010 alone, only 82% of the modern graduates are new hires, 18.5% of the college graduates are among the unemployed and as of 2010, the Department of excavate and Employment (DOLE) identified 54, 417 job vacancies.One of the notable causes of mismatch is the lack of infomration by families and individuals in the labor market requirements. Because of this, institutions may have go awayd the graduates the skills that are not of necessity required by the market.MAJOR STAKEHOLDERSEMPLOYERS CONFEDERATION OF THE PHILIPPINES (ECOP)The Employers Confederation of the Philippines (ECOP) is the single phonate for the entire business community in the country on grand national issues related to employment, industrial relations, labor issues and related social policies. ECOP was natural on September 10, 1975. Before ECOP, the business sector and employers in the country were represented by two major business organizations, namely the bedroom of Commerce of the Philippines (CCP) and the Philippine Chamber of Industries (PCI). The creation of ECOP made tripartism a reality, with the shell out in Union Congress of the Philippines (TUCP) representing a labor sector, an d the Department of toil and Employment and the other agencies as the state instrumentality.On May 1, 1978, the government with Presidential Letter of Instruction (LOI) 688 recognized ECOP as the single representative of employers, to be consulted by the government, together with labor, in the promulgation of a connive which would creationise and sustain an adequacy machinery for cooperation between labor and management at approapriate levels of the enterprise. plane section OF LABOR AND EMPLOYMENT (DOLE)The Department of Labor and Employment (DOLE) started as a tiny bureau 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 split in the sports stadium of labor and employment. It consists of the Office of the Secretary, 7 bureaus, 6 run, 16 regional offices, 12 attached agencies and 38 ove rseas offices with a adept 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 arranged 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 caterpillar track agency mandated to develop the competencies and competitiveness of Filipino workers, to deliver employment facilitation services for full and befitting employment, and to promote industrial peace found on social justice. It serves much than than than 38.51 million 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, put up of commerce and industries, TUCP, FFW, etc). There are 123 existing m any-sided Industrial mollification Councils or TIPCs (13 regional, 44 provincial, and 66 city/municipal) and 128 existing persistence 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 ages 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 transform from the former Department of Education, Culture and Sports (DECS) to the Department of Education (DepEd) and redefining the role of field offices (regional offices, division offices, district offices and school days). RA 9155 erects 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 prefatory education is to provide the school age population and young adults with skills, k like a shotledge, and values to become caring, self-reliant, productive and nationalistic citizens.COMMISSION 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 draw 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 gradua te education, the DepEd for basic education and the TESDA for technical-vocational and middle level education.TECHNICAL EDUCATION AND SKILLS DEVELOPMENT dominance (TESDA)The good Education and Skills Development Authority (TESDA) was established through the act of Republic Act No. 7796 otherwise known as the skillful Education and Skills Development Act of 1994, which was signed into law by President Fidel V. Ramos on August 25, 1994. This Act aims to encourage the full participation of and propagate the industry, labor, local government units and technical-vocational institutions in the skills development of the countrys human resources.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 anaesthetic Employment (BLE) of the DOLE gave birth to TESDA.Th e fusion of the above offices was one of the name recommendations of the 1991 Report of the Congressional Commission on Education, 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 orphic 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 locution 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 varan skills development programsRestructure efforts to promote and develop middle-level manpowerApprove skills standards and testsDevelop an accreditation system for institutions relate in middle-level manpower developmentFund programs and projects for technical education and skills development andAssist trainers training programs.At the same time, TESDA is expected to drop off training functions to local governmentsReform the apprenticeship programInvolve industry/employers in skills trainingFormulate a skills development planDevelop and pass around 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 al spot 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 execute its multi-pronged mission, the TESDA Board 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 purely profesional, non-stock, not for profit organization of over 1,800 member companies and individual management executives engaged or interested in Human Resource centering and IR works.UNIVERSAL ACCESS OF COMPETITIVENESS AND TRADE (UACT)U-ACT is a private sector-led, non-stock, non-profit, advocacy and research think-cooler, 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 measu res.Through established linkages with industry, government and the academe, U-ACT is able 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 alter 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 act 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 after the countrys turnover to the fall in States. The rise of industries in the 1950s created the need for several industry groups to dress up 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) coordinated to give b irth to a single, unified private sector organization called the PHILIPPINE CHAMBER OF COMMERCE AND INDUSTRY (PCCI).That same year, by fairness 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 abbreviationSocial 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 less 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 uncontrollable for the family to get out all the children for higher education. Less overweight populated provinces dont have good schools which results in less skilled wo rkforce. semipolitical Factors attributing to mismatchThere is no central organization which brings all the stakeholders (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 spending on Education is increasing (Annexure-Chart1) but major persona (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 outset 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 moldiness be met. repayable 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. continuing unemployment and jobless growth also add to the problem of mismatch. base ECOPoccupation of shrinking/stagnant formal sector and expanding informal sector moldiness be addressed in order to tackle the mismatch problem.Source ECOPTechnological Factors attributing to mismatchIn a fast changing world where applied science 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 give birth 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 efficaciously ful bring the current and future needs of the economy, human resources must be competitive and must possess updated skills. Qualified skilled human resources must be available at the right place, at right time and at the right quantity and quality to meet the changing demands of the economy. major Supply issues in Philippines are cablesskills mismatchEnglish, Communication and Information engineering (IT) Skills GapBrain drainOver supply of NursesSupply of expert WorkersSupply of ProfessionalsDeparment of labour and empolyment had publised on a lower floor Statistics vide its publication Labour Market monitorFor period 3rd Quarter of 2010, the cumulative total of professionals registered with t he Professional ordination Commission (PRC) stood at 3,090,120. The top professions consisted of the followingBy specific occupation, the top ten occupations in terms of the average 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 shoot issues areRetaining the best talentsMedical tourism to generate employment for nurses spatial relation The Philippines as a Creative HubAs shown in the table below are the average numbers of occupational vacancy available with the helping shareThe GAP between Demand and SupplyAccording to DOLE, the following are the in demand and dangerous to fill occupations in key employment generators from 2010 to 2015INDUSTRYIN-DEMANDHARD-TO-FILL1. AGRIBUSINESSAnimal Husbandry, horticulture, Economist, Aqua-culturist, coconut husbandman, entomologist (plant), farmer (fruit, vegetable and root cropsFeed Processor and intell ectual nourishment Technician, Fishery technologist2. CYBER SERVICES3. HEALTH AND WELLNESSNurse, Horologist, Optician, OptometristDoctor, Physical Therapist, Pharmacist, Medical Technologist, research lab Technician4. HOTEL AND RESTAURANT TOURISMFront Office Agent / Attendant, Baker /Food server /Waiter/Other House keepingCook5. minelayingGeologist, dig Engineer, Geodetic Engineer, Metallurgical Engineer6. CONSTRUCTIONFabricator/ scream Fitter/WelderEngineer (Civil, Electrical, Design)7. BANKING AND FINANCEOperations Manager/Teller history Clerks, Book Keepers, Auditors8. MANUFACTURINGElectrical, Technicians, Food technologist, Machine Operators, SewersChemist, Electrical engineer, Industrial engineer, IT specialist, machinist, mechanic engineers, Mechanical Technicians, Chemical engineer9. OWNERSHIP DWELLINGS AND REAL STATEBuilding Manager, braid Manager, Construction worker, foreman, Mason, welder, real estate agents/brokers, MarketerCivil engineer, Mechanical engineer, Surv eyor, interior designer10. TRANSPORT AND LOGISTICSChecker, maintenance mechanics, StewardsGantry operator, Ground engineer, Heavy equipment operator, Long scuff driver, operator, Pilot, Transport and Logistics Machinery, operator, aircraft mechanic and other related skills.Broadly, the DOLE survey be hardtofill occupations as job vacancies for which an establishment has encountered difficulties in managing the enlisting process. Reasons may include no applicants, applicants lack of experience, skill or license, sense of taste for working abroad, seeking higher salary or problem with location and other reasons. The indemand occupations refer to active occupations/job vacancies affix/advertised recurrently by and across industries/establishments.DEMAND versus SUPPLY1. Agriculture and Fishery SectorIndemand occupations with limited supply of cognizant workers are horticulturists and fisherman.2. Cyber services myopicages of supply are seen in animators (clean up artists, 3D anima tors, 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 WellnessNurses are shifting careers to become call centers agents because of the clog in finding jobs abroad, particularly in the United States, which has recently obligate 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 mining 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 metallurgic engineer.5. ConstructionThe sectors indemand occupations include fabricator, pipe fitter and welder. These welders are Shielded Metal Arc Welder (SMAW), blow out Metal Arc Welder (GMAW) and Gas Tungsten Arc Welder/TIG Welder (GTAW). However, very limited supply is seen in sink Arc Welder (SAW), Gas OxyAcetylene Welder, and Flux Cored Arc Welder.6. Banking and Finance beneath 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 concern courses. Hardtofill occupations include accounting clerks, bookkeepers, cashier, auditor, accountant, credit card analyst, finance analyst/specialist and risk management officer/manager.7. ManufacturingThe manufacturing sector includes captious skills such as machine operators, lathe operators, bench workers/fitters, technicians, machinists, sewers, and tailors among others. Machine Operator (Press worker) also an in demand occupation has no available manpower supply.8. Dwellings and satisfying EstateThe sector identified building manager, construction manager, construction worker, foreman, 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 transport 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 fourth-year 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 sweeping and retail trade industry continues to thrive in the country as general economic outlook improves and consumer spen ding rises. As more sweeping and retail enterprises are established, more job opportunities are provided.Problem arising payable to mismatchSkill mismatch makes labor market inefficient and imperfect. Job hiring and seeking become expensive. Many vacancies and job openings remain opened. This results in increase 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 coarse step in addressing the mismatch.However, mismatch does not only happen when the labor workforce acquire skills that are not required by the market. match 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 barely to make the equation EDUCATION = EMPLOYMENT works.RECOMMENDATIONSAfter a certain 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 bringin g 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 Skills Development Authority (TESDA) to spearpoint 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