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Employment and Skills Strategies in the Philippines

image of Employment and Skills Strategies in the Philippines

Skills represent a key driver of development and growth in the Philippines. Educational attainment of the Filipino population has steadily increased in recent decades, but while the country is regionally successful within Southeast Asia, it has yet to reach the standards of more developed countries. This OECD report looks at the implementation of employment and skills development programmes in a sample of cities in the Philippines: Taguig City, Cebu City, and Davao City. Local governments in the Philippines have an active role in the management of employment and skills programmes through Public Employment Service Offices (PESOs). These offices are responsible for the implementation of a number of nationally regulated policies and programmes. All three cities are making a number of investments to better link people to jobs, develop a skilled workforce and attract new investment.

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Executive summary

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. Another labour market challenge relates to the large informal sector in the Philippines. The latest estimates available show that 10.4 million people were working informally, and in 2014, 38.6% of workers were in a vulnerable form of employment.

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