OECD: Training services key strategy to better labor market

CEBU, Philippines - The Organization for Economic Cooperation and Development (OECD) said engaging employers in employment and training services should be a key strategic objective for Cebu to improve its labor market.

Jonathan Barr, senior policy analyst at OECD, yesterday said that the Cebu Chamber of Commerce and Industry is an important employer-based network upon which stronger partnerships could be developed.

"You have to work closely with the chamber and other employer federations to have greater dialogues and discuss this issue," Barr said in a press conference yesterday at the Policy Forum on Employment and Skills Strategies in the Philippines at Radisson Blu Hotel.

The forum was organized by the Asian Development Bank, OECD and the Department of Labor and Employment. 

Barr also emphasized that there is a need to make sure that the skills being developed in the education system are meeting the needs of the employers.

Thus, constant consultation between the academe and the industry is important.

According to the OECD research on Employment and Skills Strategies in the Philippines which was presented at the forum yesterday, Cebu's Public Employment Service Offices (PESO) should also aim to establish a strong partnership with the chamber that would focus on issues of workforce development and productivity.

Cebu is one of the case study areas including Davao City and Taguig City.

"Under current management, most of the focus is labor relations. Social dialogue is a key mechanism through which the PESO can better understand the local labor market and the future growth possibilities," the OECD study recommended. 

The study also recommended for the Philippines in general to launch programs that would encourage stronger employer networks, deliver skills development opportunities and leverage public investment to increase employer participation in training opportunities.

"Cebu could focus some resources on this type of programming to foster strong skills development opportunities among local employers," the study further said.

It also noted that Cebu has already launched programs around call center training, which offer scholarships to trainees.

However, the OECD said that an employer focus approach would more specifically target the needs of employers around skills training opportunities and focus on other sectors of the local opportunities which present growth opportunities such as tourism and retail.

The OECD research also highlighted that investment in the supply of skills alone will not be sufficient to secure job creation and productivity in all local economies.

OECD said Cebu has undertaken a number of actions to boost the overall supply of skills in the economy. 

"While these actions should continue and be expanded, there is also a need to work on the demand-side with employers to look at the quality of jobs on offer and how to move existing industries into higher-value added services and production," OECD said.

By moving into high-value added services and production, Cebu will be working to encourage innovation and productivity, which are important sources of investment attraction and growth.

Barr said that while much is being done to promote and expand the business process outsourcing (BPO) sector, there is a risk of devoting too many resources.

He said it is also important to work with other sectors of the economy such as retail, health and educational services to boost quality of jobs on offer.

Furthermore in sectors such as manufacturing and shipping, there is also a need to work with local employers to assist them in strategically thinking about workforce development issues. — (FREEMAN)