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Posted on Monday, March 31, 2003

 

Jobs-skills mismatch bigger

By Max de Leon, Reporter

It’s graduation time again.

To parents and guardians, seeing their children walk on-stage in toga and get the ceremonial handshake from school officials means the fulfillment of a daunting responsibility—providing children with education. To the government, graduation of college students means new entrants to the labor force, or, to put it bluntly, another surge in the unemployment rate.

This is why in April 2002, when the new batch of graduates joined the hunt for jobs, the number of unemployed in the country rose to 4.8 million from 3.4 million in January of the same year.

This school year the Commission on Higher Education estimated that there would be 364,672 tertiary graduates.

So by next month at least 3,923,672 individuals would be unemployed if the new batch of graduates is added to the number of jobless persons in January 2003, which is 3,559,000. The labor force would then be at least 34,042,672 from the January figure of 33,678,000.

The numbers look scary for the new graduates, but they are not surprised every time they see long queues of applicants for the jobs they would be seeking.

The Department of Labor, the Commission on Higher Education and the private sector agree that one big factor that contributes to this huge unemployment is the mismatch between the skills possessed by the labor force and the job market.

“This mismatch is compounded by the dying domestic industry and the shrinking manufacturing sector,” Donald Dee, president of the Employers’ Confederation of the Philippines, said.

In 2000 the share of the industry sector in the gross national product was 32.7 percent. This dropped to 31.7 percent in 2002. The share of the sector in the employment rate also declined by .4 percent from January 2002 to January this year.

Dee said one major reason for the decline is the “politicized wage system” that is killing the industry. “Companies die because of this system. We must stop politicizing wages. Workers have the right to wage increase, but what Labor Secretary Patricia Sto. Tomas should really focus on is lowering the cost of living,” Dee said.

Sto. Tomas noted in a speech that labor market indicators “reflect a serious mismatch problem.”

Highlighting the mismatch between the graduates being produced and the demand in the job market, Sto. Tomas said, is that from 1990 to 2000, one-third of the unemployed actually went to college.

Also, during the same period, three of every 20 college-educated workers were underemployed or were still looking for additional hours of jobs.

If the trend holds, this means that in January this year, 1,186,333 unemployed persons are actually college-trained. So by April when the new graduates look for jobs, they will be competing with 1.18 million past graduates and hundreds of thousands more who are underemployed.

Even the Commission on Higher Education, in its strategic issues for 2002 to 2006, admitted a mismatch between the curriculum and the needs of the industry.

A breakdown of the estimated graduates by discipline group for this school year will better show the picture.

Although it continues to suffer a decline in demand, business administration and related courses remain the highest producer of graduates with 105,000. The number has grown by 23 percent since 1995 even with the downsurge of its importance in the job market. Research by the Employers’ Confederation of the Philippines shows that graduates will find it hard to find work unless they embark on a business of their own.

This discipline group alone accounts for 29 percent of the estimated total graduates for the year.

Consistent at No. 2 is education and teacher training with 73,686 expected new graduates. Since 1995 this discipline group has recorded a yearly growth in the number of graduates. It registered a 68.7-percent rise from 1995 to 2003. If they want to find jobs, these graduates should look overseas.

“There is an upsurge in the demand for Filipino teachers in the United States, and China has expressed a desire to hire Filipino teachers,” Sto. Tomas said.

Those who choose to remain in the country would have to fight for 3,600 public-school teaching positions that the Department of Education will open for the year and the demand of the private schools.

From 2001 to 2002 employment in the education sector increased by 1.6 percent from 920,000 to 935,000.

Running third is engineering, with 45,444 expected graduates for the year. Compared with the figures in 1995, when its graduates stood at 46,090, the number dropped by 1.4 percent.

Dee said engineering graduates will have the toughest time in getting the jobs that they spent time learning in the colleges they came from.

“We produce mostly white-collar engineers. They never get their hands on. Worse, they are not qualified to be engineers in its strict sense,” Dee lamented.

What the labor market needs, he said, are those who can fix the electronic machines like technicians. Because schools no longer produce them, Dee said companies here have to import technicians from neighboring countries like Taiwan.

Registering an alarming decline is medicine and allied disciplines. In 1995 graduates in this discipline group stood at 49,802. The number then had a steady decline up to this year, when only 26,944 are expected to graduate, or a 45.89-percent drop.

This situation is saddening, because there is an upsurge of demand for the sector internationally.

“The emerging trends in the health sector, for example, in Europe, North America and Asia all point to an increasing demand for services of our doctors, nurses, dentists, caregivers, medical technologists, physical therapists and other health-related workers,” Sto. Tomas said.

Even locally, employment in health services grew by 10.8 percent from 2001 (314,000) to 2002 (348,000).

In mathematics and computer science, 33,318 are expected to graduate this year and to crowd past graduates in the information technology job market. The number is smaller than the graduates in 2000, pegged at 34,015. But since 1995 it has risen by 56 percent.

Dee said these graduates, including those in business administration and related courses, will probably end up as encoders, programmers and operators in call centers.

Sto. Tomas said the Philippines is fast emerging as the “call center capital of the world” owing to the Filipinos’ ability to speak English. “Experts claim the Philippines can grab a huge chunk of the global call center market, estimated to be worth $42 billion by 2010,” she said.

Graduates in agriculture, forestry, fisheries and veterinary medicine remained at a very low 13,449 this year.

The number is very small because the sector accounted for 37 percent, or 11.12 million, of the total employment in the country. This means the Philippines is still not producing more experts in agriculture, forestry, fisheries and veterinary medicine that would have fueled the country to better productivity.

“This is my frustration. UP Los Baños then was a purely agricultural school; now agriculture is only a minor course there. The reason for this is fewer people engage in the sector because there is no payback,” Dee said.

He believes the government should devise a mechanism for corporate farming and funnel more funds to infrastructure projects for the faster transfer of goods to the market.

The six mentioned discipline groups have been the country’s top producers of graduates for a decade now. Their total of 298,678 collectively represents around 82 percent of the estimated total graduates for the year.

For the other discipline groups, the Commission on Higher Education estimates that 13,048 will graduate with degrees in social and behavioral science, 4,720 in mass communications and documentation, 4,479 in natural science, 4,331 in the humanities, 2,320 in architectural and town planning, 2,079 in law and jurisprudence, 2,152 in service trades, 1,207 in religion and theology, 1,034 in fine arts and applied arts, 988 in home economics and 23,348 more under unlisted disciplines.

Last year the six top discipline groups represented 81.6 percent, or 294,101, of the total graduates of 359,085.

Of the total estimated graduates for 2003, 257,281, or 70.5 percent, came from private schools and 107,391 from government schools.

If statistics from last year are used as a gauge, 2003 graduates would have to wait for months before they could get jobs.

In April last year or just about the time when new graduates plunged into the labor force, the number of employed in the country stood at 30,186,000. By July 2002 employment even dropped to 30,104,000. Only in October did the number of employed rise to 30,251,000, a mere increase of .22 percent from the April figure.

As a glimmer of hope, the Department of Labor plans to create 3 million new jobs, one million of them overseas. The second million will be generated through government intervention and the last million through the private sector.

But however rosy this plan may seem, the comparative statistics in 2001 and 2002 show otherwise.

In 2001 the number of employed persons stood at 30.085 million. This rose to 30.251 million at the end of 2002. This shows that the government ended up with only 166,000 new local employed.

Also, the target deployment of one million Filipino workers overseas was not met, because only 889,981 workers made it to 165 destinations worldwide. Around 209,593 of them are sea-based.

Of the unemployed in 2002, 49.5 percent of them, or 1,694,385, belong to the 15 to 24 age bracket. This includes graduates in the last three years who could no longer be absorbed in the labor force owing to what Dee said is an “oversupply of educated individuals.”

Sto. Tomas said the prevalence of the educated unemployed is becoming serious in the labor market.

“Every March, the end of the academic calendar in the Philippines, we are often faced with a high number of college graduates competing with the unemployed for limited job opportunities. But many companies claim that their posted vacancies in the classified advertisements cannot be filled by the numerous jobseekers. The failure to get a match is often a result of the jobseekers’ inability to qualify for requirements needed by employers,” Sto. Tomas said.

Labor Undersecretary Manuel Imson sees the need to further revise the curriculum and the priority courses.

“There is a need for more fine-tuning so we can factor in the realities that are existing, the realities in the domestic labor demands and overseas. We still have courses that in terms of projected job demand are not that strong. Still a lot of students enroll there,” Imson said.

To correct this mismatch between the job market and the number of graduates being produced, the Commission on Higher Education set a goal to “develop a curriculum that is responsive to the needs of the industry.”

To do this, the commission would have to periodically review and revise the curriculum and the required instructional standards to conform with the identified competency.

The commission will also come up with a list of priority courses to guide its incoming grantees of the student financial assistance programs.

The commission will identify these courses after consulting with the National Economic and Development Authority, the Department of Labor, the Philippine Association of State Universities and Colleges, and the Coordinating Council for Private Educational Associations.

The labor department is determined to solve the problem of mismatch through its programs Phil-JobNet, Computerized National Manpower Registry of Skills (CNMRS), job fairs, and the Public Employment Services Offices (pesos).

Phil-JobNet is the on-line registration of job applicants with modules on displaced workers, skills for hire, off-line batch processing, and segregation of registrants’ data for peso.

The CNMRS, established in 2002, provides employers and policymakers information on Filipino manpower and their corresponding skills and competency profiles. At the end of 2002, 931,000 Filipino workers registered in the CNMRS.

For its part, the labor department held job fairs to give jobseekers and employers easy access to information on skills and job vacancies at the community level. In 2002 it held 1,529 job fairs, placing 18,837 job applicants nationwide.

Besides these efforts, Labor Undersecretary Imson said his department is now talking with the education department about a program that would advise high school students on what courses they should take when entering college.

He said secondary students should be informed about what the local and global job market would need in the next five years so they could decide which course to take.

Says Sto. Tomas: “Job-skill mismatch is a very serious matter that must be addressed and given sufficient priority if we are to effectively deal with our employment and underemployment problems.”

    
 
 
 

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Francis Andaya, Judee Perculeza, Marizhen Doctora
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