ADB pushes reforms in skills training

MANILA, Philippines — The Asian Development Bank (ADB) is urging the Philippines to reform its technical and vocational education and training (TVET) system in a bid to cope with fast-changing industry needs.

In a report, ADB said Industry 4.0 is rapidly changing the nature of work and the demand for skills and the Philippines should be able take advantage of this.

ADB vice president Ahmed Saeed said Industry 4.0 poses a huge challenge to developing economies like the Philippines, as it has traditionally relied on industrialization and its capacity to generate high-paying jobs as a path toward economic growth.

The pandemic continues to take a toll on the labor market with millions of Filipinos still jobless following the closure of business across various industries.

“More than ever, the importance of adequate and timely investment in skills – including reskilling, upskilling, and the development of strong technical and soft skills – is needed to help displaced workers transition into new jobs,” Saeed said.

ADB Human and Social Development director for Southeast Asia Ayako Inagaki also said that the pandemic has significantly affected segments of the population that are most in need of skills upgrade to adapt to changes in the market.

“Through much-needed investments and capacity building, the government’s TVET system can help shape labor market outcomes and adjust to anticipated changes to achieve its dual objective of creating a competitive workforce and helping marginalized workers,” Inagaki said.

The Technical Education and Skills Development Authority (TESDA), which primarily handles the country’s TVET system, has adopted non-traditional, innovative, and flexible solutions, such as online learning and digital tools, following disruptions due to the pandemic.

ADB said TESDA has played a critical role in retooling and upgrading the skills of displaced workers.

This as TESDA expanded access to its online programs through a partnership with the private sector and launched a plan to develop policies and programs that will help the country respond to the crisis and adjust to the accompanying changes.

Further, the ADB is recommending the promotion of skills training and education as a crucial part of the country’s labor market policies during the post-pandemic recovery and beyond.

“Although TESDA has made major achievements over the years, questions around its appropriate role, endemic resource constraints, and organizational capacity weigh on its ability to respond to Industry 4.0,” ADB said.

These questions include the unsettled issue of devolution of TESDA’s direct training function as it has important implications for access to funding and resources, and for the ability to provide up-to-date services.

The ADB study is also suggesting that the government seek new and effective ways to secure industry engagement in skills training, such as anticipating skills demand, ensuring better targeting of skills training programs and greater efficiency of skills supply, limiting mismatches, and improving labor market outcomes.