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1. 1
Josie Perez, “Total Number of OFWs Estimated at 2.3 Million” Philippine Statistics Authority.
2019. https://psa.gov.ph/statistics/survey/labor-and-employment/survey-overseas-filipinos
Political and Economic Geography April 04, 2020
Joyce D. Adarlo Mr. Jumel G. Estranero
ABFS201
Job Mismatch in the Philippines: A Factor for Economic Migration
I. Introduction/Abstract
In the current era, which includes rapid technical developments, slow economic
development, and weathering populations, Job mismatch is a possible hazard. Human
capital is becoming more critical than ever, particularly for high-quality talented
production of human resources. In particular, provided that technical skills and
information focused on innovations and imagination are recognized as a critical
resource, an increasing need for highly skilled competent human resources has been
met and numerous debates on therapies and conditions for highly qualified individuals
have been emphasized. However, in the Philippines, highly skilled workers continually
move outside, resulting in work imbalances and discontent at professional workforce
ranks, as well as in reducing their work efficiency and productivity. Job mismatch is a
potential threat in the new normal and fourth industrial revolution period, which is
characterized by rapid technological progress, stagnant economic growth, low-fertility,
and aging societies. Human capital becomes more significant than before, particularly
for high-quality talented human capital development. In particular, as the accumulation
and application of professional knowledge and information based on ideas and creativity
are recognized as a crucial resource, there has been a growing demand for talented
human capital with high capability, emphasizing various discussions on the treatments
and conditions for a high-skilled workforce.Meanwhile, it is evident that the problem of
mismatch in the labor market has been mainly discussed in terms of labor supply-
demand mismatch at a macro level, while there are relatively few studies on job
mismatch at an individual level. However, job mismatch has a significant effect on labor
market performance it should not be overlooked, since job mismatch has been
considered as a factor to negatively affect macroeconomic efficiency aside from
individual wage level, job satisfaction, and group performance. In this context, the
purpose of this study is to show how does job mismatch became a factor for Filipinos to
work abroad.
The purpose of this study is to analyze the different factors that influence economic
migration in the Philippines considering that there are an estimated number of 2.3
million Overseas Filipino Workers (OFWs).1
The goal of the study aside from

2. 2
Magdalena Velciu. "Job Mismatch – Effects On Work Productivity," SEA - Practical Application
of Science, Romanian Foundation for Business Intelligence, Editorial Department, issue 15,
pages 395-398, December 2017.
scrutinizing the different factors of economic migration is to prove a point that job-
mismatch is one of the main reasons why a Filipino decides to work abroad and to be a
way for government to strengthen existing policies and formulate new ones if needed in
order to address the job mismatch in the country. Amidst the career opportunities that
the government offers, there are still a lot of Filipinos that are unemployed or either
stuck in a job that do not maximize their opportunity to use their skills.
II. A. Statement of the Problem
Job mismatch has been a problem in the Philippines since 2016 and in many parts of
the world which has a tremendous effect to productivity. Job matching and finding the
best person to the right job inside the right company has become one of the most
important and actual challenges of productivity. Not only full employment but the match
between the employee and the job, in terms of educational level or field of activity,
qualifications and skills of workforce; all have been the new gain of work productivity.2
The goal of this research is to delve more on information about the life of an OFW and
on how migration and working at the home country affects their career and life
conditions. The study seeks to answer the following questions:
1. What are the factors for economic migration of OFWs?
2. Is job mismatch really a factor for OFWs to work abroad?
3. Did economic migration help the OFWs progress up their career ladder?
B. Methodology
The study entitled Job Mismatch in the Philippines: A Factor for Economic Migration is a
combination of qualitative and quantitative research that describe and interpret data
regarding of job mismatch being one of the factors for economic migration. The
researcher used descriptive design in order to determine the features, patterns,
tendencies, correlatedness and definitions. The researcher aims to lead to the
exploration of new information and meanings. She looks for the present state of an
undefined element, then routinely offers the condition information then sees subjects
without any interference.
The researcher gathered information from Overseas Filipino Workers from different
parts of the country through her father’s friends and colleagues who is also an OFW.
The researcher asked 13 questions to 30 OFWs that are college graduates with
different age ranges and with different natures of work. Survey questionnaires were
distributed and it became the main data gathering instrument. All the questions asked to
the respondents were made by the researcher. Because of the current pandemic, the
questionnaires were distributed via Facebook messenger because the respondents are
from different parts of the world and also to ensure safety of everyone since there is a
pandemic.

3. 3
Guillermo Montt, Field-of-study mismatch and overqualification: labour market correlates and
their wage penalty.2017.IZA J Labor Econ 6, 2.
4
Michael Sseaver, “The Job Skills Mismatch.” 2020.
https://michaelsseaver.com/careerbusinesscoaching/the-job-skills-mismatch
5
Leila Hoteit et al., “Fixing the Global Skills Mismatch” Boston Consulting Group (BCG,
January 15, 2020, https://www.bcg.com/publications/2020/fixing-global-skills-mismatch.aspx
III. Review of Related Literature
This chapter compiles the different literatures written in the areas of qualification,
educational and talent mismatch, talent management, performance management and
other factors affecting employee performance and factors that may result to skills or job
mismatch in the work place.
Foreign Studies
Field-of-study mismatch occurs when workers educated in a particular field work in
another. It is conceptually distinct from qualifications or skills mismatch, although a part
of qualifications and skills mismatch results from graduates from a particular field having
to downgrade to find work in another field. Some studies have identified labour market
dynamics related to field-of-study mismatch, but few (if any) have sought to directly
understand the interplay between labour supply factors (the types of skills brought to the
workplace) and the labour demand factors (the types of skills demanded by employers)
in field-of-study mismatch. Mismatch workers do not voluntarily choose to be
mismatched, but are driven to it because they cannot find work in their field or because
their skills are better rewarded in other occupational groups.3
It is no secret that the unemployment rate has remained high during the recession and
the recovery because of a mismatch between the jobs needed for the 21st
century and
the 20th
century skills currently available in the workforce. There are a variety of events
occurring that are fostering change, but the change is occurring at too slow a pace. In
our increasingly complex world, it’s not easy to unlock the full potential of each person.4
The problem is, in part, the result of ineffective—or nonexistent—communications
between the private sector and education authorities: there are huge gaps between the
goals of education systems and the needs of business. Unless they heed the insights of
the private sector, education and skills development systems will continue to prepare
people whose competencies will be outdated or in oversupply by the time they
graduate, broadening a “qualifications trap.” Employers will struggle to hire the talent
they require. Forced to take on people whose skills and experience fall short of what’s
needed, employers will have to spend money on retraining. Meanwhile, those whose
skills are not in demand will take any job simply to earn a living. This problem, which we
call the “skills mismatch,” is much less obvious than the skills gap, because it creates
the illusion of employment and economic and social stability.5
Yet the economic and
human toll of the skills mismatch is heavy. According to Organization for Economic Co-
operation and Development (OECD) countries, the skills mismatch affects two out of
five employees.

4. 6
Szarucki, M., Brzozowski, J., & Stankeviciene, J. (2016). Determinants of self-employment
among polish and Romanian immigrants in Germany. Journal of Business Economics and
Management, 17, 598-612. Doi:10.3846/16111699. 2016.1202313 [Taylor & Francis
Online], [Web of Science ®], [Google Scholar]
7
Wright, R., Ellis, M., & Townley, M. (2017). The matching of STEM degree holders with
STEM occupations in large metropolitan labor markets in the United States. Economic
Geography, 93, 185–201. doi:10.1080/00130095.2016.1220803 [Taylor & Francis Online], [Web
of Science ®], [Google Scholar]
8
Di Paolo, A.; Mañée, F. Misusing our talent? Overeducation, overskilling and skill
underutilisation among Spanish Ph. D. graduates. Econ. Labour Relat. Rev. 2016, 27, 432–452.
9
Gaeta, G.L.; Lavadera, G.L.; Pastore, F. Much Ado about Nothing? The Wage Penalty of
Holding a Ph.D. Degree but Not a Ph.D. Job Position; GLO Discussion Paper; Global Labor
Organization: Bonn, Germany, 2016; p. 12.
The topic of educational mismatch is highly relevant for policy-makers. Such
mismatches, indeed, represent an inefficient allocation of resources invested in
education. Highly skilled migrants created businesses in the mainstream of their new
country’s economy that equal or exceed the economic performance of their native
counterparts, while low-skilled migrants create small, often unstable and less profitable
businesses.6
Furthermore, highly skilled migrants ‘produce localized knowledge
spillovers, positive externalities, and significant local multipliers generating additional
boosts in regional economic vitality’. Host countries can benefit from these economic
advantages if skilled migrants fill jobs matching their skill levels.7
Regarding the theoretical basis of job-mismatch, it was suggested that a concept of
genuine matching (GM) and apparent matching (AM). The phenomenon in which
respondents perceive themselves as neither overeducated nor over-skilled can be
explained by genuine matching (GM).8
On the other hand, apparent matching (AM)
occurs when respondents perceive themselves to be over-skilled rather than being
overeducated. Giuseppe et al. (2016) analyzed the effects of overeducation of the
doctoral degree, workforce, dissatisfaction resulting from job mismatch, and over-skill at
a pay level. He found that significantly lower wages have a correlation with
overeducation and skill dissatisfaction, although there is no wage penalty from the over-
skilled. Furthermore, individuals who experience both overeducation and skill
dissatisfaction are reported to have a particularly high wage penalty.
It was explored on how skill supply and labor market demand dynamics influence
mismatch, using the data from the OCED( Organization for Economic Cooperation and
Development) Survey of Adult Skills (PIAAC). He analyzed the cross-national estimates
on mismatch and mismatch wage penalty, which showed workers who are overqualified
and mismatched by work fields suffer from the wage penalty and another study found
that not only individual job satisfaction, but also educational mismatch and skill
mismatch can subsequently influence wage level and job search activity.

5. 9
McGowan, M. and Andrews, D. (2015), ‘Labour Market Mismatch and Labour Productivity’,
OECD Economics Department Working Papers (1209).
10
Boll, C., Leppin, J., Rossen, A., & Wolf, A. (2016). “Overeducation - New Evidence for 25
European Countries”. HWWI Research Paper 173, Hamburg Institute of International
Economics,http://www.hwwi.org/fileadmin/hwwi/Publikationen/Publikationen_PDFs_2016/Resea
rch_Paper_173.pdf
Emerging literature tends to locate the impact of job mismatch on productivity through
allocation effects. It mainly measures productivity as a factor of two components,
namely i) the within-firm productivity and ii) the allocative efficiency. Indeed, for a single
firm to hire an over-skilled worker might increase its productivity, assuming there are no
adverse effects on job satisfaction or wages. On the other hand, this imposes another
problem in the economy as a whole as highly skilled workers are utilized in positions
with lower skill requirements and are not placed in positions where they can actually use
their skills and knowledge in full extend. This results in skill shortages and firms that are
relatively more productive cannot find suitable work force as the pool of knowledge
available is narrow.9
Migrant workers are vulnerable to skills mismatch for several reasons. Some of the
skills and knowledge of migrants may not be recognized in the host country, for
example due to barriers in transferability of qualifications. Work experience acquired
abroad may be discounted while limitations in language skills may hamper the full use
of other skills. Discrimination may also prevent job seekers with a migrant background
from obtaining appropriate employment. Furthermore, self-selection of immigrants as
well as migration and integration policies affect labour market outcomes including
matching of jobs and skills. Migrant workers are overrepresented in the growing groups
of professionals, service workers and machine operators among the self-employed, but
not in the group of craft workers. Among employees, migrant workers are
overrepresented among service workers, but not in the major groups of technicians and
professionals. These patterns suggest on the one hand that immigration is driven by
demand for labour, as captured by relative growth in occupations, alongside other
factors. On the other hand, (lack of) recognition of qualifications may play a role given
the strongly divergent patterns between employees (less driven by occupational growth)
and the self-employed (more driven by occupational growth). There is also a striking
difference between the share of immigrants and the share of natives in elementary
occupations of employees (the share of immigrants is 7 percentage points higher than
the share of natives), which again may foreshadow skills mismatch. Given that migrants
are not less educated than natives, skills mismatch is one explanation of such a high
share of migrants in elementary occupations.10

6. 11
Seamus McGuinness., Konstantinos Pouliakas., & Paul Redmond. How Useful is the Concept
of Skills Mismatch?
12
S4YE (2015) Toward Solutions for Youth Employment. A 2015 Baseline Report, as found
on: http://www.ilo.org/wcmsp5/groups/public/---
ed_emp/documents/publication/wcms_413826.pdfch? (Tech. Rep.)
Job mismatch has been a problem in different parts of the world wherein In the most
recent Chartered Institute of Personnel and Development (CIPD) report on untapped
skills and the skills mismatch in the UK, it was found that nearly half of workers feel
mismatched in their roles, with 37 percent being deemed over-skilled and 12 percent
under-skilled. Outlining the fears of ‘over skilled workers’, the reports found that they are
“less satisfied and nearly twice as likely to want to quit than those in well-matched roles
and more likely to say their job offers poor prospects for career advancement, training
and skills development.” Obtaining consistent estimates of the incidence of educational
mismatches is necessary for being able to examine their determinants and impacts as
well as for informing policy makers on how to deal with the mismatches problem.
Nevertheless, this is difficult for a number of reasons. The main difficulty is the fact that
mismatches, in particular the required schooling for a job, can be determined from
different angles. For instance, a graduate who works in a managerial position may
perceive he is overeducated if he feels that his occupation does not require his tertiary
qualification, while from a normative angle, he would be classified as a matched worker
within this job position. Consequently, various approaches exist to measure educational
mismatches, yet results are often poorly correlated and substantially vary depending on
the measure used.11
In Greece and South Africa, more than half of young people are unemployed. Across
the Middle East, one in four is jobless—in the US, about one in seven. At the same
time, however, businesses complain that they cannot find the workers they need. There
is, in short, a serious mismatch between what many young people have to offer and
what business needs—and this problem is not going away.12
The economic costs of skill mismatch and skill shortages affect individuals, firms and
the overall economy. Individual costs include lower wages and poorer skill development,
and can partly turn from temporary to permanent. The costs faced by firms comprise
lower productivity and the hiring and training costs associated to increasing job
turnover. Aggregate costs include the efficiency losses – in terms of lower average
productivity and higher unemployment - associated with the sub-optimal allocation of
resources. Mismatch can negatively impact on earnings if individuals accept a less
desirable job because of the higher competition they face (the sullying effect), and can
turn at least in part from temporary to permanent if it produces a scarring effect, for
instance because of human capital depreciation.

7. 13
Cedefop. “Cedefop Opinion Survey on Vocational Education and Training in Europe”,
https://www.cedefop.europa.eu/en/events-and-projects/projects/opinion-survey-vocational-
education-and-training-europe
14
Giorgio Brunello & Patricia Wruuck. Skill Shortages and Skill Mismatch in Europe: A Review of
the Literature. 2019. IZA DP No. 12346
While there is plenty of research concerned with the identification and analysis of
instances of skill mismatches, literature on policy responses and their effect is scarce.
Cedefop points out that approaches to transferring policies or measures across
countries are rarely useful, because of the specifics of different labour markets,
educational systems and institutional frameworks. This is also one of the conclusions of
the 2016 Skills Summit97 in Bergen, Norway under the chair of the country’s Minister of
Education and Research. They argue for the need of a “whole-of-government” approach
which includes both national and regional authorities, supported by social partners,
employers and other stakeholders. At present there are a number of existing national
and EU-wide policies that seek to alleviate the negative effects of skill mismatches. The
EURES network is a good example of a functional intra-EU tool for addressing one of
the main causes of skills mismatches – the information barriers to intra-EU labour
mobility. In addition, labour market transparency is supported by monitoring tools such
as the European Vacancy Monitor (EVM) and the EU Skills Panorama, while most
active labour market policies are being supported by the European Social Fund (ESF)
and the European Globalization Adjustment Fund (EGAF), as well as initiatives such as
the European Youth Guarantee. It is of vital importance that policymakers in EU
countries successfully determine the factors that impose frictions on the efficient
functioning of labour markets. A regulatory environment that supports the effective
allocation of labour resources and thus facilitates the skill demand and supply matching
process is an important prerequisite for the ability of businesses to adopt new
technologies, working processes and business models.13
On the other hand, there are people who suggest that there are different approaches to
measure skill mismatch,that produce substantially different results. Measures relying on
self-reported mismatch produce a much lower share of well-matched individuals than
statistical measures that compare individual skills with average skills in the occupation.
Employers and managers are likely to have more accurate information than employees
about skill requirements. In the long run, the adoption of new technologies creates the
demand for new skills that are not immediately available in the labour market, giving rise
to skill shortages until the broad education system (including employer training) is able
to meet the new skill requirements. The importance of these shortages and the length of
the adjustment process can be exacerbated if wages and working conditions fail to
provide adequate signals of relative scarcity; Skill shortages and mismatch are costly to
individuals, firms and society because they negatively affect earnings, productivity,
innovation and productivity growth.14

8. 15
Oliver Villaverde.”Solutions to 'Job Mismatch' in our Country”.
PHILJOBNET.GOV.PH,December 22, 2017,
https://www.facebook.com/notes/philjobnetgovph/solutions-to-job-mismatch-in-our-
country/2141803062714005/
16
Othel Campos.”Job Skills Mismatch Affecting 3 Industries”.manilastandard.net, February 21,
2016, https://manilastandard.net/mobile/article/199906
17
Republic of the Philippines Statistic Authority.”Employment Rate in October 2018”, PSA,
December 5, 2018, https://psa.gov.ph/content/employment-rate-october-2018-was-estimated-
949-percent
18
Mario Casayuran.”Gatchalian sees need to resolve jobs-skill mismatch to address
underemployment”.Manila Bulletin, June 13, 2019,
https://news.mb.com.ph/2019/06/13/gatchalian-sees-need-to-resolve-jobs-skill-mismatch-to-
address-underemployment/
19
Samuel Medenilla.“DOLE study shows 3 out of 10 young job finders lack essential ‘soft’
skills”, Business Mirror, December 27, 2018, https://businessmirror.com.ph/2018/12/27/dole-
study-shows-3-out-of-10-young-job-finders-lack-essential-soft-skills/
Local Studies
Job Mismatch was defined as a term used when a Jobseeker fails to meet the
necessary skills and qualifications needed in order to fulfill the requirements of the job
market which results in unemployment.15
A policy framework developed by International Labor Organization and the Employers
Confederation of the Philippines showed that jobs skills mismatch remained a critical
concern in the Philippines.16
According to Philippine Statistics Authority, in the 5.3%
unemployment rate in October 2018, 24.0 percent of these were college graduates,
16.0 percent were college undergraduates, and 27.5 percent have completed junior
high school.17
The number of college-educated unemployed, self-employed and the underemployed
indicate there remain gaps leading to jobs-skills mismatch that need to be addressed in
order to tap the full productive potential of a young Filipino labor force, according to the
statement of Employers Confederation of the Philippines. Gatchalian, chairman of the
Senate economic affairs committee, cited a report by the Philippine Statistics Authority
(PSA) that the labor force – composed of Filipinos aged 15 years and above – grew to
72.54 million in April 2019 from 71.02 million in the same month last year, for an
employment rate of 94.9 percent. One way of resolving underemployment, according to
Gatchalian, to align the curriculum with the current job market,’’ he pointed out. The
unemployment problem has been a serious concern for different labor groups.18
Lawyer
Jose Sonny Matula, president of the Federation of Free Workers, said: “There is not
enough local jobs to accommodate the graduates. That’s the reason why they look for
overseas employment. In a study made by the Department of Labor and Employment, it
was revealed that 68.3 percent of the students, employed, unemployed and trainees
involved in the study are employable with English language functional skills as top
competency. DOLE has pointed out that skills mismatch and poor qualification are
among the top reasons for the low hiring rate of about 9% in its previous job fairs.19

9. 20
OECD, Employment and Skills Strategies in the Philippines, OECD Publishing,
Paris,2017. https://doi.org/10.1787/9789264273436-3-en
21
PinoyOFW.com. “High Unemployment Rate in the Philippines:Top 8 Causes”, Last modified
June 14, 2019, https://www.pinoy-ofw.com/news/224-reasons-why-philippine-unemployment-
rate-is-high.html
22
Palaubsanon, Michael.”Villanueva Pushes for Solutions on Job-Skills Mismatch Concern”,
The Freeman, September 16, 2016, https://www.philstar.com/the-freeman/cebu-
news/2016/09/16/1624366/villanueva-pushes-solutions-job-skills-mismatch-concern
The Philippines is a dynamic and growing economy that has performed better than a number of
its peers in Southeast Asia on a number of economic and social indicators. From 2008-14, GDP
growth has averaged 5.4%, outperforming both the OECD average and a number of ASEAN
economies. The Philippines has a relatively young population, which will be a key source of
future growth and competitiveness. However, youth unemployment sits at 16% with many young
people facing a number of challenges in finding work after they leave school. Skills represent a
key driver of development and growth in the Philippines. Furthermore, issues of skills mismatch
remain frequent with 36% of firms reporting that the lack of pertinent skills was the main reason
why they found it hard to fill vacancies in 2012.20
The Philippines has long been a labor exporting market. About 2,500 Filipinos leave the
country on a daily basis to seek for greener pastures abroad and better provide for the
needs of the family, notwithstanding the social impact of this Filipino diaspora. As of
January 2019, the unemployment rate in the country is at 5.2 percent. In comparison
with our Asia-Pacific neighbors, Malaysia has 3.4 percent (March 2019), 5.34 percent in
Indonesia (August 2018), 1 percent in Thailand (April 2019), and 2.1 percent in
Singapore (September 2018). In South Korea, it was 4.4 percent (January 2019),
Taiwan, 3.73 percent (April 2019), China, 3.83 percent (June 2018) and Vietnam, 3.10
percent (January 2019). Most of the unemployed in the Philippines are fresh graduates
with about 400,000 added to the labor force each year. But a significant ratio of them
are also workers who were retrenched from their jobs or whose employment contracts
were not renewed.21
Senator Joel Villanueva, stressed that the issue of job-skills mismatch is strongly felt in
certain sectors such as manufacturing, electronics and semiconductor and tourism snd
also said that "The problem is not the lack of jobs but the mismatch between workers'
skills and labor market requirements that is being felt in many parts of the world". He
said that in the country, job-skills mismatch is one of the causes of youth
unemployment. Recent surveys reveal that Filipino youth suffer the highest rate of
unemployment among age groups wherein the International Labor Organization
estimated that unemployment rate among Filipino youth aged 15 to 24 averaged at 16.5
percent from 2010 to 2015. Among his recommendations to resolve the issue are
partnering with industry associations; strengthening our enterprise-based training;
expanding our technical vocational education and training; and institutionalizing the
Philippine Qualifications Framework or PQF.22

10. 23
Senate of the Philippines 18th
Congress, Senate Oks PH qualifications framework to address
job mismatch, December 11, 2017,
https://www.senate.gov.ph/press_release/2017/1211_prib1.asp
24
Cecilia, Ernie, “Addressing the Nagging Jobs-skills Mismatch”, The Manila Times, August
8,2019, https://www.manilatimes.net/2019/08/08/campus-press/addressing-the-nagging-jobs-
skills-mismatch/596570/
25
Recruitday.com, “Boosting Jobs, Skills, and Productivity with the Tulong Trabaho Act”, April
10, 2019, https://www.recruitday.com/blog/boosting-jobs-skills-and-productivity-tulong-trabaho-
act
In order to seal the gap by bringing together labor market and education stakeholders to
craft an integrated system that could possibly prevent skills mismatch, Senate Bill No.
1456, or the Philippine Qualifications Framework Act of 2017, was authored and
sponsored by Senator Joel Villanueva. The Philippine Qualifications Framework (PQF)
is defined by the bill as "the national policy which describes the levels of educational
qualifications and set the standards for qualification outcomes. It is a quality assured
national system for the development, recognition and award of qualifications based on
standards of knowledge, skills and values acquired in different ways and methods by
learners and workers of a certain country." Villanueva (2017) noted that under the PQF,
school curriculums would not be fixed, as these "should correspond to the progress of
technology and development of new work especially in Information Technology,
Robotics, Logistics, Renewable-Energy, Travel and Hospitality, etc.23
Aside from the
act, other people also sought to find other solutions to solve the job mismatch in the
Philippines. Dr. Vince Fabella, chief executive officer of Jose Rizal stated that “The
academe can definitely help by ensuring that the learning experience of students is
consistent with what industry needs. Industry needs vary for entry-level positions vs.
those required for career progression — i.e., from clerical to supervisory to managerial
positions. Schools must understand this and make it their responsibility to prepare
graduates for both requirements. Fabella (2019) also noted structural issues that
hamper an effective solution to the mismatch issue. He said, “Our hands are tied to a
particular curriculum for, once it has been approved by government’s regulating body.
We could not tweak the curriculum towards market needs.”24
Recently, another act was signed by President Duterte wherein it is the Republic Act
11230, or the Act Instituting a Philippine Labor Force Competencies Competitiveness
Program and Free Access to Technical-Vocational Education and Training (TVET). The
bill is simply known as the “Tulong Trabaho Act”. RA 11230 aims to improve the skills of
the Filipino labor force by providing FREE access to technical-vocational education,
which in turn will help improve employment rate. The creation of a Philippine Labor
Force Competencies Competitive Program through RA 11230 together with the help of
the Department of Labor and Employment (DOLE) will address unemployment and
jobs-mismatch by assessing the current requirements of industries. The law also
created a fund called the Tulong-Trabaho Fund. It grants qualified recipients access to
Technical-Vocational Education and Training programs through the full payment of fees
for selected training programs, along with other financial assistance needed, such as
transportation allowance and laboratory fees. The Technical Education and Skills
Development Authority (TESDA) will oversee the distribution of these funds.25

11. 26
The Philippine Star, “Solving Job Skills Mismatch Bolsters Competitiveness”, March 20, 2016,
https://www.philstar.com/business/business-as-usual/2016/03/20/1565021/solving-job-skills-
mismatch-bolsters-competitiveness
27
Moya, Jose. “Job-Skills Mismatch in the Philippines and the Advent of Industry 4.0”,
February 2018, Employers Confederation of the Philippines, February 2018,
http://www.fsi.gov.ph/wp-content/uploads/2018/02/JRAM-Job-Skills-Mismatch-Mabini-
Dialogue.pdf
28
Urdaneta, Rose. “Untangling the Entangled: Anticipating Skills to Match Labor Supply and
Demand”, Employers Confederation of the Philippines, November 29, 2017,
http://www.fsi.gov.ph/wp-content/uploads/2018/02/JRAM-Job-Skills-Mismatch-Mabini-
Dialogue.pdf
Lourdes Espinoza, external collaborator of the ILO, said that the job skills mismatch
essentially boils down to this: “the skills sets of graduates are usually not what
employers need, while schools are unable to anticipate what the industry needs.“ This
mismatch means new graduates who join the workforce are not job-ready and require
“significant” training before they can become productive, she said. Espinoza pointed out
there are actually several policies and programs by the government, industry, academe,
and foundations to upgrade workers’ skills, but that there is a lack of synchronicity and
synergy in these initiatives. There is duplication of efforts rather than building upon
them, she added. She also urged greater collaboration between the government, the
private sector, and the educational sector, noting study findings that show that
industries have low awareness levels of state programs to create jobs and enhance
skills.26
Job mismatch caused drastic effects to the country. According to Employees
Confederation of the Philippines, the link between jobs and labor market is hampered by
the lack of available information on supply and demand and DOLE was also unable to
provide estimates of current and future demands due in part to the limited information
that industry is able to provide.“The so-called future of work, brought about by rapid
technological developments and fast-paced industry advancements and overall work
landscape, plays a huge role in the prevailing mismatch between labor demand and
labor supply in the country. In order to address this, current and future skills needs
should be closely monitored and anticipated. Aside from this, specific interventions in
the form of policies, programs, and projects need to be utilized and implemented in
order to maneuver the future of work.”27
“The so-called future of work, brought about by rapid technological developments and
fast-paced industry advancements and overall work landscape, plays a huge role in the
prevailing mismatch between labor demand and labor supply in the country. In order to
address this, current and future skills needs should be closely monitored and
anticipated. Aside from this, specific interventions in the form of policies, programs, and
projects need to be utilized and implemented in order to maneuver the future of work.”28

12. 29
Perez, Arra, “Jobs-skills mismatch crisis' confronts 2016 graduates”, CNN Philippines, March
6, 2016, https://cnnphilippines.com/news/2016/03/06/jobs-skills-mismatch-crisis-graduates.html
30
Magkilat-Cahiles, Bernie, “Rising Employment Gap, Skills Mismatch Hound Local IT
Industry”, Manila Bulletin, May 23, 2019, https://business.mb.com.ph/2019/05/23/rising-
employment-gap-skills-mismatch-hound-local-it-industry/
The Philippines was originally an agricultural country yet we failed on proper utilization
of the resources and also in today’s time, more advanced and technological businesses
and jobs were in demand in abroad opposing in demand jobs in our country include
abaca pulp processor, amino programmer, banana growing worker, bangus diver,
banquet supervisor, bamboo materials craftsman, fish cage caretaker, groundskeeper,
multi-lingual service crew, mussel grower, pointman, reefman, and whale shark
interaction officer. Meanwhile, the report defined hard-to-fill occupations as job
vacancies which the employer or company is having difficulty to be filled because job
applicants are not qualified or there is no supply of job applicants for the particular
vacancy. This bracket includes 2-D digital animator, agricultural designer, bioinformatics
analyst, clean-up artist, cosmetic dentist, cosmetic surgeon, cuisine chef, ethanol
machine processing operator, multi-lingual tour guide, in-between artist (animation), in-
between checker (animation), and mechatronics engineer.29
Despite being a major driver of the country’s economic growth for many years now, with
IT-related jobs being one of the most in-demand in the country based on LinkedIn’s
2019 Emerging Jobs in the Philippines Report, IT companies continue to lament the
skills gap while IT graduates and professionals find it hard to get the right job. The
report noted that concentration of IT companies in Metro Manila further exacerbates the
situation. Many of IT industry leaders focus their operations on the National Capital
Region (NCR) even though cities and even provinces outside the NCR have many IT
professionals. As more IT companies make the National Capital Region their center of
operations, a growing number of IT professionals move out of their hometowns and
relocate to Metro Manila in the hopes of landing better opportunities for themselves and
their families. This leaves promising IT startups and business process outsourcing
(BPO) offices in the provinces with a diminishing pool of potential IT manpower.
Meanwhile, those who have moved to the city may find their previous training and
experience insufficient to match job requirements. The technology, media and
communications industries are expected to be the worst hit by talent shortage across
the globe, which itself is projected to reach its worst levels by 2030, according to the
Korn Ferry Institute’s 2018 Future of Work: The Global Talent Crunch report. A
staggering 85.2 million job openings worldwide and 47 million job openings in the Asia
Pacific region will go unfilled by then. If unaddressed, this talent demand and supply
gap will mean revenue loss for businesses and hindered economic growth for countries
across the globe.30
Philippines’ education system continues to produce college graduates whose skills don’t
necessarily fit with what is in demand in the job market. When Filipino nurses were in
demand abroad in the earlier part of the new millennium, more schools have
mushroomed to accommodate growing demand for nursing education. This effectively
left out other medical fields such as respiratory therapists, cardio technicians and CT-

13. 31
Urdaneta, Rose. “Untangling the Entangled: Anticipating Skills to Match Labor Supply and
Demand”, Employers Confederation of the Philippines, November 29, 2017,
http://www.fsi.gov.ph/wp-content/uploads/2018/02/JRAM-Job-Skills-Mismatch-Mabini-
Dialogue.pdf
32
Abad, Roderick, “Work readiness of Filipino Students and Labor Pushed”, Business Mirror,
February 11, 2019, https://businessmirror.com.ph/2019/02/11/work-readiness-of-filipino-
students-and-labor-pushed/
prevailing mismatch between labor demand and labor supply in the country. In order to
address this, current and future skills needs should be closely monitored and
anticipated. Aside from this, specific interventions in the form of policies, programs, and
projects need to be utilized and implemented in order to maneuver the future of work.”31
Amidst issues on job mismatch and the inability of some Filipinos to secure work,
homegrown SFI Group of Cos. tied up with American firm ACT Inc. to push for an
employment and skills development support program in the country to address the
needs of the local labor force in terms of building the human capital in line with 21st-
century skills.32
Philippine government is already addressing this matter, and on the other hand they
have stated that there are a lot of job vacancies in the country it’s just that the
knowledge and skills of the applicants didn’t match the needs of the company. And it
was also mentioned that they are making the move on bridging the gap between the
company and academe for the decrease of the unemployment issues in the future. One
of which is to match the course offerings with the actual needs of the economy. Though
the government is still on the process of resolving this issue, the mad rush of the
students on acquiring a job doesn’t stop there. Which is why on these days most of
them are attracted to BPO companies that accept either graduate or undergraduates to
fill the job vacancies the companies are offering. There might be an annual event where
the government is having job fairs where the level of participation of them is very solid
but only a few are accepted and others still undergo further interviews with the
employers. The companies often say that the ones who aren’t accepted don’t possess
the closest qualifications to the job requirement. Other than that, several of the fresh
grads are very selective on the job offerings that they attempt to apply because of the
wage, employment benefits and satisfaction in the workplace.

14. Questionnaire used can be found on Annex B
IV. Presentation, Analysis and Interpretation of Data
This chapter compromises the analysis, presentation, and interpretation of findings
resulting from study. The analysis and presentation is carried out in one phase. This
phase is based on the results of the questionnaire.
Analysis of Questionnaire
Total of 30 questionnaires were distributed and answered by selected respondents. It
was used to interpret the results. Data gathered through the questionnaire was
subjected to frequency counts. The researcher used pie charts to depict the result of the
survey questionnaire.
The questionnaire sought to identify the insights of the OFWs based on the percentage
gathered from Yes or No questions in part 1 of the questionnaire and part 2 of the
questionnaire enabled the researcher to gather more descriptive and lengthy
information. It enabled the researcher to identify if the destination being advertised is
worthy and can be promoted. The responses to the questions are summarized in the pie
charts below.
Fig. 1 Survey question: Is your college degree your first choice?
On the first question, more respondents have answered that the college degree they
have taken up is not their first choice.
Fig. 2 Survey question: Did your family, friends, or other people influence you in the
course you have taken?
On the second question, more than half of the respondents answered that bother
people have influenced them in choosing the course they have taken which shows that
most Filipinos rely on the preference of other people especially those significant in their
lives.
47%
53%
YES NO
63%
37%
YES NO

15. Questionnaire used can be found on Annex B
Fig. 3 Survey Question: Did you choose or taken up your college degree because it is in
demand?
In today’s age of globalization, the demand of different countries around the globe have
also changed because of the rapid growing of technology wherein most of there are
certain jobs that are in demand because of the service that is patterned in today’s global
age. Maybe that’s the reason why most of the respondents have answered that they
have taken the course because it is in demand in order to be able to cope up with the
ever changing society.
Fig. 4 Survey question: Did you get a job immediately after you graduated college?
Most of the respondents were unable to immediately get a job after graduating which
poses a very striking idea that in today’s modern world, having a college degree won’t
automatically get you a job right after graduation because different employers have
such requirements or maybe the demand for the course they have taken is low in the
Philippines.
67%
33%
YES NO
40%
60%
YES NO

16. Questionnaire used can be found on Annex B
Fig.5 Survey question: Does your current job match your college degree?
All of the respondents are currently working in different parts of the world and most of
them have responded that their college degrees are matched with the jobs they have
right now although there is still a percentage that still indicates that some of the
respondents don’t have a job that matches his/her college degree.
Fig. 6 Did you decide to work abroad because there is no available job in the Philippines
for what your college degree requires?
For the sixth question, a large percentage can be seen and observed. Most of the
respondents have answered that they decided to work abroad because the course they
have taken doesn’t have that much job offerings in the Philippines or maybe the
standard for the courses they have taken are too high.
63%
37%
YES NO
87%
13%
YES NO

17. Questionnaire used can be found on Annex B
Fig. 7 Survey question: Did you decide to work in abroad because of higher wage?
With higher costs of living in today’s time, it is no surprise that most of the respondents
have answered that they went to work abroad because the wage or the profit that they
can get is higher than what they could earn in the Philippines
On the second part of the questionnaire, it was more of obtaining qualitative data
wherein the researcher is aiming for results based on true to life experiences of workers
that have decided to work abroad because of the job mismatch in the Philippines. The
second part of the questionnaire is composed of six questions, more on delving the
reasons of the respondents in working abroad and if one of the factors is because of job
mismatch.
One of the respondents named Emma Bautista shared her experience of job mismatch
in the Philippines. She graduated Bachelor of Science in International Travel and
Tourism Management and she graduated from Lyceum of the Philippines University-
Manila. She further explained in the questionnaire that before she graduated, there is
this specific airline company in the Philippines that she is aiming to apply for. According
to her, maybe she was not able to pass the requirements because of her height.
Although her height is 5’2 which is the minimum requirement of that specific airline,
according to her in her several times of application and interview that she did in that
airline company, she noticed that the girls that would most likely be hired are those who
have background of being a beauty queen or a model. She applied on the same airline
company for five times and it was only on her last application that she got a callback nut
still failed to be hired in her dream airline company. She did not lose hope and tried her
luck abroad wherein she was able to immediately pass to an international airline
company that have different requirements from the dream airline company she desired
before. Although she was not able to apply in her dream airline company, according to
her being a part of an international airline company is the biggest blessing she never
expected and dreamt off.
In her case, the employer was the one that impose somewhat high standards
surprisingly higher and more selective than those of the international airline company. In
other cases of job mismatch, the thing is, other respondents have taken a course that is
73%
27%
YES NO

18. Questionnaire used can be found on Annex B
not in demand in the Philippines but is high in demand abroad. Take for example the
experience of one of the respondents who is Lily Anne Reyes. She graduated Bachelor
of Science in Nursing from University of Sto. Tomas.
In reality, it can be said that the Philippines yearly produces a sufficient number of
physicians and nurses. According to the Medical Information Research Information
Center Global (MRICG), the country has an annual production of about 38,000 nurses
and 4,500 physicians. Further, it has been reported that there are currently 130,000
physicians and 500,000 registered nurses in our country.However, despite these
numbers, a ratio of doctors and nurses to the total population is still very far from the
ideal, because there are just not enough job opportunities even in government
hospitals. This is the main reason why most health professionals practice abroad which
was agreed upon by the respondent. According to her, she find difficulty in finding a job
after graduating because almost all of the hospitals required nurse volunteer experience
for at least two years. When she was finally able to get a job, according to her she
worked 8 hours a day and sometimes it would be extended for 16 hours a day which
caused her a lot of stress and fatigue and to make it worst, according to her, the wage
that she gets is not enough to provide the needs of her family considering that she is the
breadwinner. After 2 years of serving a public hospital in the Philippines, she decided to
work and apply in Canada wherein she was able to get a job without being exploited
and at the same time she was able to provide her family’s needs. Aside from the two
respondents, there are other respondents that have shared their experience. Aside from
job mismatch, the factors of economic migration as stated by the respondents were
higher salary and more job opportunities for their career.
While others were finally able to find the career suited for their college degree, a small
percentage of OFWs were still unable to find the right job. Some even experienced job
mismatch in the foreign country where they have worked. One of them confessed that
he was a licensed teacher in the Philippines but ended up working as a factory worker
in a certain Asian country wherein according to him, it was difficult for him to find a job in
that country because he was not able to learn their language and was not able to
proceed with his original plan to teach abroad. However, he does not want his time and
expenses abroad to be wasted that is why even his current job is not matched with his
educational attainment, he still continued the job considering that what he would earn as
a teacher in the Philippines.
Different respondents have their own fair share of different reasons on why they
decided to work abroad. Based on the questionnaire, common reasons of economic
migration are unemployment, low wage and job mismatch.

19. 33
Ian Nicolas Cigaral.”Philippines One of the Worst Countries to Live for Minimum Wage
Earners”. January 20, 2020. PhilStar. https://www.preda.org/2020/philippines-one-of-the-worst-
countries-to-live-for-minimum-wage-earners/
V. Summary, Conclusion and Recommendation
This chapter presents the summary of the research undertaken, the conclusions
drawn, and the recommendations made as an outgrowth of the study.
Summary of Findings
As the researcher distributed survey questionnaires to different OFWs through
Facebook Messenger, she was also able to know more about the life of an OFWs on
what are their struggles and what are the benefits they were gaining. Through the data
gathered, the researcher was able to answer the questions of the statement of the
problem of the research.
The first question from the statement of the problem aims to know what the factors for
economic migration are, and based on the answers of the respondents, the researcher
was able to come up with three factors. First factor is the need of high salary. Filipinos
risk their own safety and the risk of solving problems alone in a foreign country because
they want to provide a better life for their families; they want to be able to sustain their
children’s needs and wants and doing that would not be possible if they were to work at
the Philippines because wages are obviously low and is not enough to sustain family’s
daily needs since prices of basic commodities and services are constantly rising
salaries remain hard-and-fast. The Philippines is one of the worst countries to live for
minimum wage earners, a new report by e-commerce firm Picodi released. In January
2020, monthly net pay received by minimum wage earners in the Philippines stood at
P5,922, 10.2% higher than P5,376 they got in the same month last year. That placed
the Philippines at the 17th spot out of 54 countries tracked by Picodi in terms of rate of
increase in minimum wage year-on-year. However, high food prices are eating up a
significant portion of the compensation that minimum wage earners in the Philippines
took home. According to Picodi, minimum wage earners in the country spend 75.1% of
their monthly salary on basic food items alone. The second factor for economic
migration is the lack of job opportunities that will suit the courses that different schools
are offering. The third factor is the job mismatch that is the focal point of the second
question of the statement of the problem.33
The last question in the statement of the
problem aims to know if economic migration help OFWs to progress up there career
ladder wherein based on the sixth survey question, The large percentage of
respondents in the fifth survey question clearly shows that there is a job mismatch in our
country because they were able to finally found the job that matches to their educational
attainment.

20. Conclusion
The primary outlet for alternative employment and foreign exchange in the Philippines
still lies in economic migration. Emigration seems inevitable by now given the high
unemployment levels of the nation and the reliance of families on international
remittances. Economic migration, though, is not a shortcut to development. The
problem of generation of workers can be addressed only briefly by emigration. It is
therefore not realistic to be dependent on emigration to solve unemployment. In the long
term, it is important to find ways and means of reducing the dependence on emigraton.
With regard to skills transfer from overseas employment and the job mismatch, it can
therefore be concluded that job mismatch is a factor for economic emigration. As stated
by Lawyer Jose Sonny Matula, president of the Federation of Free Workers,“There is
not enough local jobs to accommodate the graduates. That’s the reason why they look
for overseas employment.” Senator Joel Villanueva, also stressed that the issue of job-
skills mismatch is strongly felt in certain sectors such as manufacturing, electronics and
semiconductor and tourism and also said that "The problem is not the lack of jobs but
the mismatch between workers' skills and labor market requirements that is being felt in
many parts of the world". He said that in the country, job-skills mismatch is one of the
causes of youth unemployment.
Most especially, the data gathered from the real life experiences of respondents who
are OFWs transpires that the lack of availability of jobs suited for a specific career could
push a person to work abroad for greener pastures and to progress up their career
ladders although unfortunately, there are some Filipinos who are actually being de-
skilled. For instance, college graduates work as domestic helpers, engineers and
government employees are employed as construction workers while highly educated
females work as domestic helpers. Further, even if workers learn new skills while
abroad, work experience and skills acquired are not necessarily well matched to local
needs in some cases but it cannot be denied that their aim or the reason why they
migrated is to attain a higher position and to find a job that is suited to their educational
attainment especially for the jobs that are not in demand nor available in the Philippines.
Based on the data gathered, it can be concluded that job mismatch is one of the main
reasons for economic migration.

21. Recommendation
Job mismatch has been a problem for so long in the Philippines which have caused
unemployment and brain drain that stunted the country’s potential to strive and excel
more when it comes to economical growth and in providing great service to the
Filipinos. Resolving the problem would be a long and hard process since economic
migration has been considered as a vessel for greener pastures by many and also
because of the role of remittances in the country.
In solving the job mismatch, the resolution must start with the foundation, the schools
wherein there must be a great scope for strengthening linkages between industry and
academe to foster more relevant course and curriculum design, university-based
research agenda, faculty enrichment through industrial immersion, scholarship
programs, and other modes for helping the schools address the persistent job-skills
mismatch. Since the schools and universities will be the training ground for the future
careers of the students. Most Filipinos also take courses they know are in demand
wherein the problem is that what seems to be in demand now may no longer be so four
to five years later when they graduate and look for jobs. Furthermore, perceptions on
what is “in demand” could be misplaced and prone to “herd mentality” and fickle swings
in the market. Meanwhile, most schools also tend to base their choice of course
offerings on what they see students and parents want, thereby reinforcing the possible
error in perception of job market demands. The government and universities must also
coordinate and cooperate in knowing what are the suited jobs patterned for the country
and today’s era. Existing policies like Senate Bill No. 1456, or the Philippine
Qualifications Framework Act of 2017 and Republic Act 11230 must be strengthened by
the government and address the certain loopholes of the policies.
Remittances absolutely help the Filipino families and even the economy of the
Philippines but, labor export encounters in the Philippines also indicate that
governments of migrant origin have limited control. Migrants are working where the
exporting nation is unable to impose its own employment and labor rights regulations.
For labor movement to run more efficiently there is often a need in sending or receiving
countries for joint efforts at several rates. In other words, the Philippines needs to find
the appropriate balance: to optimize deployment without compromising the progress
and career ladder of workers in the home country.
In the end, progress depends on a strong national development policy that can also be
accompanied by an overseas deployment strategy. Remittances are not in a vacuum,
as are the other benefits that can be obtained from global labor movement. By
deepening the reforms already under way, especially in improving management and
making economic growth more inclusive, the Philippines must continue on its path
towards economic growth and social progress. This would be challenging and unlikely
without a clear development strategy at home.

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26. ANNEXES
Annex A
List of respondents’ names and contact details
Names Email Address
1. Lenin Samia lenin_iris2002@yahoo.com
2. Mandy Carpio mandy.carpio007@yahoo.com
3. Marites Ignacio maetut95@gmail.com
4. Ramil Rosales rramil23@yahoo.com
5. Enrique Llevado e_llevado@yahoo.com
6. Mary Fao-Wa sampagajv@gmail.com
7. Kristine Anno llwatdapakll@gmail.com
8. Ma. Francia Rosales mommyfrecy@gmail.com
9. Jojo Baccay kyjo422000@yahoo.com
10.Antonio C. Perez (declined to disclose)
11.Berlina Afalla Valdez Berlina430@gmail.com
12.Richard Louie Monteverde clardalu@gmail.com
13.Lily Anne Reyes lilylili672@gmail.com
14.Emma Bautista bautistaemmy8@gmail.com
15.Hannah Cruz cruzhanny04@gmail.com
16.Bella Mendoza bellannemendoza@gmail.com
17.Genesis Garcia thisisgenesis@gmail.com
18.Jade Andrada jadeavery@gmail.com
19.Kimberly Castillo kimcastillo@gmail.com
20.Jocelyn Rivera jocerivera@gmail.com
21.Eljiah Villanueva eljiahvi@gmail.com
22.Joshua Tagalicud joshtagalicud@gmail.com
23. Isaiah Abratique iamisaiah@gmail.com
24.Austin Bolaños austinjohn@gmail.com
25.Jasper Camacho japscamacho@gmail.com
26. Emmanuel Corpuz corpuzemman@gmail.com
27.Kenneth Espiritu kenny25@gmail.com
28.Sean Gatdula seangii@gmail.com
29.Erickson Santiago ericksanti@gmail.com
30.Thomas Alvarez tomgutz@gmail.com

27. Annex B
Letter for Respondents
Hi! Good day. I am Joyce D. Adarlo a Foreign service student from Lyceum of the
Philippines-Cavite. I am taking this semester the subject Political and Economic
Geography. With this, I will write a paper entitled Job Mismatch in the Philippines: A
Factor for Economic Migration. In order for me to be able to accomplish my paper, I am
requesting you to kindly answer this survey. Your answer would be highly appreciated
and would help a lot for my study. Your answers and information would be confidential
and would only be used for academic purposes. I am hoping for your cooperation
amidst the current pandemic we are facing right now. Thank you so much
Respectfully yours,
Joyce D. Adarlo

28. Annex C
Questionnaire
Personal Information
Name:
College Alma Mater:
Email address:
Age:
Course:
Sex:
Contact No: (Optional)
Part 1. Answerable by YES or NO
1. Is your college degree your first choice?
2. Did your family, friends, or other people influenced you in the course you have
taken?
3. Did you choose or taken up your college degree because it is in demand?
4. Did you get a job immediately after you graduated college?
5. Does your current job match your college degree?
6. Did you decide to work abroad because there is no available job in the Philippines for
what your college degree requires?
7. Did you decide to work in abroad because of higher wage?
Part 2. Answer the following questions based on your preferred language
(Filipino/English)
1. Why did you decide to work abroad? (2-3 sentences)
2. What are the things that made you decide to work abroad? (2-3 things)
3. Was your expectations in working abroad transpired or actually met? If your answer
is Yes, kindly state what are those expectations, if your answer is No, kindly answer on
why are your expectations not met.

29. 4. Given that you will be offered job opportunities in the Philippines, would you still go
abroad? why or why not?
5. Give four things or considerations that would make you stay and work in the
Philippines
6. Give three main reasons why do you prefer working abroad.