Remate Express

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ANALYSIS: PH job creation also focusing on quality

IT-BPM and creative sectors cited for quality employment

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While job creation has been the focus of the current administration, both the government and the private sector also see the need to generate quality jobs, especially in this digital age.

Also, the emergence of artificial intelligence (AI) threatens a number of jobs, which will require the upskilling of the country's workforce, particularly those threatened by AI.

Furthermore, globalization will require domestic industries to level up their competitiveness, which can also be achieved by having a competent and highly-skilled workforce.

Perhaps government is already moving in the right direction.

No less than Labor Secretary Bienvenido Laguesma said that addressing underemployment is part of the government's efforts to provide quality jobs to Filipinos.

He said that there was an an improvement in the quality of jobs in the Philippines, as underemployment declined by 146,000 from 5.630 million in August 2023 to 5.484 million in August 2024.

Laguesma said this was based on the 2024 Labor Force Survey showing the country's employment rate surging at 96 percent, which is a testament to the government's unwavering commitment to creating a more equitable and inclusive economy.

“With our collaborative efforts, we witnessed a growth of 932,000 in the number of persons participating in the labor force, expanding from 50.292 million in August 2023 to 51.224 million in August 2024. The number of employed Filipinos likewise increased by 1.081 million, from 48.073 million to 49.154 million,” he said.

President Ferdinand R. Marcos Jr. also signed recently into law the Enterprise-Based Education and Training (EBET) Framework Act to address underemployment in the country.

Republic Act 12063, or the EBET Framework Act, aims to institutionalize and strengthen apprenticeship programs in the country to address the jobs-skills mismatch and develop a more skilled and globally competitive Filipino workforce.

Marcos said the new law would improve the country’s employment figures by focusing on upskilling and development.

“I’m happy to note that our employment and unemployment rates improved in the past three months. With this law, I’m confident that we will be able to sustain and further improve these numbers,” he said during the ceremonial signing of the new law in Malacañang.

“By establishing a framework on career advancement and industry-relevant skills, this law directly addresses the issues on the lack of formal training and skill mismatches, ensuring that every Filipino can contribute and benefit from our nation’s growth,” the chief executive added.

The law will strengthen partnerships with the private sector “to align our training programs with real-world industry needs,” according to the President.

Senator Joel Villanueva, the principal author and sponsor of the EBET Act, said the new law will result in the Filipino workers adopting to a rapidly changing economy.

"This law will bring real benefits, making skill development more accessible and targeted, and allowing our people to seize better employment opportunities, and making our workforce among the most competitive in the region,” Villanueva said in a statement.

For his part, Senator Sherwin Gatchalian said the EBET Act will boost the job readiness of technical-vocational education and training graduates, and address jobs-skills mismatch.

"Through this law, we will see an increase in the number of enterprise-based trainees, which will also help us address issues of jobs-skills mismatch," Gatchalian said.

PRIVATE SECTOR EFFORT

As for the private sector, IT and Business Process Association of the Philippines (IBPAP) president and Chief Executive Officer Jack Madrid said their industry can help lift more Filipinos into the middle-income status, indicating that the information technology and business process management (IT-BPM) sector offers quality jobs.

However, the rise of AI will require those entering the IT-BPM industry to upskill and reskill.

Madrid said the ITBPM industry is a critical pillar of the economy as more than a million families rely on the sector for livelihood.

He added that to further expand the industry and create more quality jobs for Filipinos, IBPAP continues to tap opportunities in its primary market, North America, while exploring other markets with growing demand for Philippine-based back office services including Asia Pacific, Australia, and the United Kingdom.

"The ITBPM sector was once dominated by just two countries—India and the Philippines. But now, we’re seeing other markets, like Poland, Egypt, South Africa, and Vietnam, emerging as competitors. Each market has its own unique value proposition, and while we are still one of the leaders, maintaining our position will require us to continually improve our skills and services,” Madrid said.

CREATIVE INDUSTRY

Another sector that can create quality jobs where Filipinos can excel a lot is the creative industries, that currently employs more than 7 million, which could increase if those working in the sector also upgrade their skills.

In December last year, Marcos said the Philippines is eyeing partnerships with Japan and other countries to increase its share in the global creative industries market.

This, as Marcos acknowledged that the Philippine creative economy remains a prime contributor to sustainable economic development and is expected to grow to $3.4 trillion in 2028.

The creative economy amounted to P1.6 trillion and contributed 7.3 percent to the country’s gross domestic product, according to the 2022 data from the Philippine Statistics Authority.

Besides film and music, the creative industry also emcompasses product design, among many others.