Session II: Engaging employers in skills development and utilisation at the local level

8th Annual Expert Meeting of the ESSSA and 4th Regional Policy Dialogue on TVET

Kelly Bird, Director, Southeast Asia Department11 October 2016, Cebu

How long does it take for a young Filipino to find a job since leaving school/college in the Philippines?

(Based on an ADB survey of 500 households in Cebu and Metro Manila)

2 years for a college graduate

4 years for a high school graduate

What is the share of youth employed since leaving school in the Philippines?

High school graduates• Only 20% of high school graduates

employed one year since leaving school

• 60% of high school graduates employed eight years since leaving school

College graduates• 75% of college graduates

employed one year since leaving college

What is the share of Filipino youth not in employment, education or Training (NEET)?

One in four youths are in not employment, education or training

Risk Factors

1 in 3 young women in NEET

1 in 2 young women with low education in NEET

Youth from low income households at higher risk of NEET (National Capital Region)

Young Women Young Men

High NEET for young women from low-income families

Share of youth

population in NEET

High NEET for young men from low-income families

Share of youth

population in NEET

Wage Differentials by Education(ADB study on earnings show)

College Graduates

High School

Graduates

Wage 45% highe

r

Wage Differentials by Gender(ADB study on earnings show)

Male Female

High school graduates earn 22%

more

College graduates earn 9%

more

THE EMPLOYMENTFACILITATION FULL

CYCLE

1. Registration and Client Assessment 2. Life Skills Training (plus one-on-one career guidance)

3. Job-Matching

4. Referral for interviews with JobStart Employers

5b. Technical Training

(up to 3 months)

6. Work Experience(up to 3 months)

Pre-qualifications

Internship Offers

Training Plans

Signing of partnership agreements

5a. Wage Employment

YES NO

Job Ready?

5c. Other DOLE youth employment/training programs

5d. Further CG and job matching

7. Referral for Job Placement (PESO available vacancies)

JobStart Philippines Rollout

4 Pilots completed

(2013-2015) 1,600 youths

Employment rate of 70%

Average cost per JobStarter $800

RA 10869 JobStart ActEnacted in June 2016

Nationwide rollout

(2015-2020)2016 – 14 LGUs (Luzon, Visayas,

Mindanao)Additional 10

LGUs each year

Targets50 LGUs by 2020At least 50,000

OSY entered JSP by 2020

After 2020, at least 30,000 OSY placed

in JSP annually

“There is a unique program for every JobStarter because they have

different capabilities.”

JobStart ProgramTestimonials

− Employer

“I grow in more ways than just my career.” − JobStarter

Skills Grants Scheme

Employer Outreach

Employers form training

networksGrants

AwardedEmployees

trained

Tourism SkillsTraining Grants Program

Regional DOT

DOT HQ• Forums

• Local chambers• Ads/Flyers

• Industry experts

• Private providers

• TESDA/TVET Institutions

4 Pilots completed (2013-2015) Locations: Davao, Cebu, Palawan, Bohol 48 Grantees (single enterprises and networks), total

of US 1.2 million awarded DOT Nationwide rollout (2017) Proposal: ISGS to be scaled-up across different

sectors or priority industries.

Key Results of theTourism Skills Grants Scheme

Average cost per trainee

US$131Total participants trained

7,550

Calamianes Association of Tourism Establishments, Inc.

The Calamianes Association of Tourism Establishments (CATE) is an association of 126 establishments engaged in tourism services in the Calamianes Islands based in Coron, Palawan. CATE has in excess of 1,300 employees engaged in tourism services.

• 120 employees were trained in Supervisory Skills

Notable Achievements:

• 5-10% reduction in operating costs (will vary from company to company)

• 10% decrease in complaints and negative comments• Increase to 10% in guest satisfaction for CATE system, and at least a

one star increase in the rating for those listed in TripAdvisor• 10% increase in the satisfaction rating from mystery guests

Coron Restaurant ConsortiumThe Coron Restaurant Consortium is an association of restaurants in Coron, Palawan, led by Santinos Grill and Restaurant. Collectively, it currently employs 80 people. 72 employees were trained in:

• Technical Kitchen Skills and Hazard Analysis and Critical Control Points (HACCP)

• Food and Beverages Services

Notable Achievements:

• 21 participants were certified in Hazard Analysis and Critical Control Points (HACCP)

• Staff retention is indicated as 100% in 10 of the 12 participating restaurants

• Staff retention is indicated as 50% in 2 of the 12 participating restaurants• Average increase in food sales of approximately 8%• Approximately 50% reduction in guest complaints• 58% of participants reported a 5% reduction in operational costs

Lessons• A network of public employment services offices (PESO) at the

local government level, and well funded.• Strong coordination between Labor/employment department and

the local government, with national government responsible for policy development and a supportive role through program coordination and capacity development

• Governments should have a menu of interventions targeted at different groups – public-private funded, employer led with simple designs. – Full cycle employment facilitation program to help OSY (career

guidance, life skills, technical training, internships, placements)– Industry skills grant schemes that provides a subsidy to employers to

upgrade staff skills to raise productivity and competitiveness.• Invest in establishing a good governance structure

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