THE PHILIPPINES has secured a $500-million policy-based loan from the Asian Development Act (ADB) that will fund the government’s labor market programs and reforms aimed at boosting job creation.
The Business and Employment Recovery Program-Subprogram 2 supports government efforts “to achieve inclusive economic growth by equipping the country’s labor force, including vulnerable youth, with the skills required to meet evolving industry needs,” the ADB said in a statement.
The program will also aim to raise women’s participation in the workforce through technical and vocational education and training, as well as provide better access to opportunities.
Under the program, the government is targeting to increase formal employment in the private sector by around 600,000 to 700,000 jobs annually. This would help raise the share of private sector jobs to total employment to 51%, versus 49% in 2019.
“While job recovery in the Philippines has been encouraging in the post-COVID-19 (coronavirus disease 2019) period, the quality of jobs remains a critical concern, with many workers still facing challenges such as underemployment, informality, and limited access to decent work opportunities,” ADB Country Director for the Philippines Pavit Ramachandran said.
The program also seeks to provide skills training for 5,000 workers through private sector-led programs such as the SkillsUpNet Philippines.
The government also hopes to boost the number of job placements through public employment service offices in local government units (LGUs) by as much as 120,000 annually.
It also wants more LGUs to implement the JobStart Philippines skills training program for the youth.
Latest data showed the unemployment rate dropped to 3.2% in November, translating to 1.66 million unemployed Filipinos. The November jobless rate was lower than 3.9% in October and 3.6% in the same month in 2023.
For the first 11 months of 2024, the jobless rate averaged 3.9%, easing from 4.5% during the same period in 2023.