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Engaging employers in skills development and utilisation at the local level


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The 2016 Education and Skills Network meeting is jointly organised by the Department of Labour and Employment, Philippines, ADB, OECD and GIZ and the latter’s regional programme RECOTVET (“Regional Cooperation Programme to Improve the Training of TVET Personnel”), which aims at supporting and creating personnel, institutional and thematic preconditions for quality improvement and regional harmonisation of the education and training of training personnel in South East Asia over the next years.

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Engaging employers in skills development and utilisation at the local level

  1. 1. Session II: Engaging employers in skills development and utilisation at the local level 8th Annual Expert Meeting of the ESSSA and 4th Regional Policy Dialogue on TVET Kelly Bird, Director, Southeast Asia Department 11 October 2016, Cebu
  2. 2. How long does it take for a young Filipino to find a job since leaving school/college in the Philippines? (Based on an ADB survey of 500 households in Cebu and Metro Manila) 2 years for a college graduate 4 years for a high school graduate
  3. 3. What is the share of youth employed since leaving school in the Philippines? High school graduates • Only 20% of high school graduates employed one year since leaving school • 60% of high school graduates employed eight years since leaving school College graduates • 75% of college graduates employed one year since leaving college
  4. 4. What is the share of Filipino youth not in employment, education or Training (NEET)? One in four youths are in not employment, education or training Risk Factors
  5. 5. 1 in 3 young women in NEET
  6. 6. 1 in 2 young women with low education in NEET
  7. 7. Youth from low income households at higher risk of NEET (National Capital Region) Young Women Young Men High NEET for young women from low-income families Share of youth population in NEET High NEET for young men from low-income families Share of youth population in NEET
  8. 8. Wage Differentials by Education (ADB study on earnings show) College Graduates High School Graduates
  9. 9. Wage Differentials by Gender (ADB study on earnings show) Male Female
  10. 10. THE EMPLOYMENT FACILITATION FULL CYCLE 1. Registration and Client Assessment 2. Life Skills Training (plus one-on-one career guidance) 3. Job-Matching 4. Referral for interviews with JobStart Employers 5b. Technical Training (up to 3 months) 6. Work Experience (up to 3 months) Pre- qualifications Internship Offers Training Plans Signing of partnership agreements 5a. Wage Employment YESNO Job Ready? 5c. Other DOLE youth employment/training programs 5d. Further CG and job matching 7. Referral for Job Placement (PESO available vacancies)
  11. 11. JobStart Philippines Rollout 4 Pilots completed (2013- 2015) 1,600 youths Employment rate of 70% Average cost per JobStarter $800 RA 10869 JobStart Act Enacted in June 2016 Nationwide rollout (2015-2020) 2016 – 14 LGUs (Luzon, Visayas, Mindanao) Additional 10 LGUs each year Targets 50 LGUs by 2020 At least 50,000 OSY entered JSP by 2020 After 2020, at least 30,000 OSY placed in JSP annually
  12. 12. “There is a unique program for every JobStarter because they have different capabilities.” JobStart Program Testimonials − Employer “I grow in more ways than just my career.” − JobStarter
  13. 13. Skills Grants Scheme Employer Outreach Employers form training networks Grants Awarded Employees trained Tourism Skills Training Grants Program Regional DOT DOT HQ • Forums • Local chambers • Ads/Flyers • Industry experts • Private providers • TESDA/TVET Institutions
  14. 14.  4 Pilots completed (2013-2015)  Locations: Davao, Cebu, Palawan, Bohol  48 Grantees (single enterprises and networks), total of US 1.2 million awarded  DOT Nationwide rollout (2017)  Proposal: ISGS to be scaled-up across different sectors or priority industries. Key Results of the Tourism Skills Grants Scheme Average cost per trainee US$131 Total participants trained 7,550
  15. 15. Calamianes Association of Tourism Establishments, Inc. The Calamianes Association of Tourism Establishments (CATE) is an association of 126 establishments engaged in tourism services in the Calamianes Islands based in Coron, Palawan. CATE has in excess of 1,300 employees engaged in tourism services. • 120 employees were trained in Supervisory Skills Notable Achievements: • 5-10% reduction in operating costs (will vary from company to company) • 10% decrease in complaints and negative comments • Increase to 10% in guest satisfaction for CATE system, and at least a one star increase in the rating for those listed in TripAdvisor • 10% increase in the satisfaction rating from mystery guests
  16. 16. Coron Restaurant Consortium The Coron Restaurant Consortium is an association of restaurants in Coron, Palawan, led by Santinos Grill and Restaurant. Collectively, it currently employs 80 people. 72 employees were trained in: • Technical Kitchen Skills and Hazard Analysis and Critical Control Points (HACCP) • Food and Beverages Services Notable Achievements: • 21 participants were certified in Hazard Analysis and Critical Control Points (HACCP) • Staff retention is indicated as 100% in 10 of the 12 participating restaurants • Staff retention is indicated as 50% in 2 of the 12 participating restaurants • Average increase in food sales of approximately 8% • Approximately 50% reduction in guest complaints • 58% of participants reported a 5% reduction in operational costs
  17. 17. Lessons • A network of public employment services offices (PESO) at the local government level, and well funded. • Strong coordination between Labor/employment department and the local government, with national government responsible for policy development and a supportive role through program coordination and capacity development • Governments should have a menu of interventions targeted at different groups – public-private funded, employer led with simple designs. – Full cycle employment facilitation program to help OSY (career guidance, life skills, technical training, internships, placements) – Industry skills grant schemes that provides a subsidy to employers to upgrade staff skills to raise productivity and competitiveness. • Invest in establishing a good governance structure
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