RAPID ASSESSMENT OF THE SPECIAL PROGRAM ON EMPLOYMENT OF STUDENTSMiraluna S. Tacadao

Abstract

Youth unemployment and underemployment are one of the country’s most challenging economic and social problems. According to the April 2014 Labor Force Survey, about half (49.8% or 1.456 million) of the total unemployed workforce were young workers belonging to the 15-24 age bracket. To increase the probability of finding work for these jobless youth and raise their productivity as well as income, governments and policymakers have identified programs to facilitate their smooth transition from school to the labor market.

The Special Program for Employment of Students is one of the government interventions promoting youth employment. Beneficiaries are provided with temporary work for a certain period. In its two decades of implementation, the program has faced several issues and challenges and has undergone revision of guidelines. Based on the study, the immediate effects of the program are income augmentation and enhanced employability. However, the net employment impact is another dimension which needs to be studied.

I. Introduction

The World Development Report of 2007 (World Bank, 2006) presented the situation of the youth to the world as an opportunity to accelerate economic growth and reduce poverty. However, the lack of skills, training, and experience causes these younger members of the labor force to have a greater probability of being unemployed and staying unemployed for longer periods compared to their older counterparts. Unless the youth are equipped with skills beyond literacy and staying healthy, they will not become productive assets of their respective economies.

According to the April 2014 Labor Force Survey, there are 1.456 million unemployed youth in the Philippines (Philippine Statistics Authority, 2014). This figure accounts for 16 percent of the total youth labor force of 9.254 million belonging to the 15-24 age bracket. However, the magnitude of unemployed youth could not be explained only by the requirement of schooling, but also by the lack of employment opportunities or slow entry or reentry to the labor market. According to a study of the Asian Development Bank (n.d.), there has been a slow school-to-work transition in the Philippines. Usually, it takes one year for an average college graduate to find a job and another two years to have a regular job.

For the youth sector to become more educated and highly competitive, the implementation of income or education support programs has become a strategy. In 1992, the Special Program for Employment of Students

(SPES) was created to harness the potentials and develop the intellectual capacities of the youth. Specifically, SPES aims to assist poor but deserving students pursue their education by providing them with temporary employment during summer and/or Christmas vacations. With the Department of Labor and Employment’s (DOLE) vision of full, decent, and productive employment and its mission of promoting gainful employment opportunities as well as developing human resources, improvement of the employment facilitation system and school-to-work strategies for the youth is essential. The Philippine Development Plan 2011-2016, which targets to create one million new jobs per year, includes as one of its strategies the improved access to employment opportunities for the youth, especially for improving youth skills and human resources development which includes SPES.

This study aims to examine SPES and identify the issues and challenges in its implementation. It also examines the immediate effects of the program to the beneficiaries. Likewise, it gathers insights and learns from experiences of implementers and former beneficiaries towards the formulation of policies for the improvement of the program. Hopefully, the study could contribute to place the program on a more manageable and efficient track given its nationwide and two decades of implementation.

Given the limitations on time and on the extent of the study, this paper uses primary information gathered through interviews and focus group discussions with SPES implementers, primarily the SPES focal persons and Public Employment Service Office (PESO) managers, as well as former SPES beneficiaries. Data gathering was conducted in Central Luzon, CARAGA, and the National Capital Region (NCR). Likewise, it uses secondary data from the Bureau of Local Employment that includes annual reports, regulatory impact assessments, and pertinent issuances regarding SPES. Previous studies on active labor market programs and related literature also provided valuable insights to this paper.

II. Overview of the Special Program on Employment of Students

Background

In 1992, the Special Program for Employment of Students (SPES) was created under Republic Act (RA) 7323, otherwise known as “An Act to Help Poor but Deserving Students Pursue their Education by Encouraging their Employment During Summer and/or Christmas Vacation through Incentives Granted to Employers Allowing Them to Pay only 60 Percent of their Salaries or Wages and the 40 Percent through Education Vouchers to be Paid by the Government, Prohibiting and Penalizing the Filing of Fraudulent and Fictitious Claims, and for Other Purposes.”

Subsequently, RA 9547 expanded the coverage of the program by amending the original SPES law in 2009. The amendments included: 1) the regular increase in the annual budget allocation for the program by 20

percent and 2) the expansion of the coverage of employer’s participation by allowing employers/establishments with a minimum of ten, from the previous 50, employees to participate in the program. Moreover, the program implementation was made all year round.

The Program aims to harness the potentials and intellectual capacities of the youth. Among its objectives is to provide the student beneficiary with income to finance and/or augment tuition and other school fees and expose him/her to actual work situations. Ultimately, SPES could increase employability of youth beneficiaries, thereby contributing in solving high youth unemployment in the country.

The target beneficiaries of the Program are students and out-of-school youth. To qualify, the youth must meet the following requirements: 1) at least 15 years but not more than 25 years old; 2) with a combined net family income (of parents and of the youth, if any) not exceeding the latest annual regional poverty threshold level for a family of six as determined by the National Economic and Development Authority; and 3) has a passing average grade during the last school/term attended. (For a diagram of the general implementation process of SPES, see Annex A.)

Program Administration

The Department of Labor and Employment, through the Bureau of Local Employment (BLE), is the Program Manager of SPES. The Department provides the necessary technical and administrative assistance to the regional and field offices. The PESOs serve as the frontline implementer of SPES.

Under the Program, the period of employment is at least 20 working days, to a maximum of 52 working days. For secondary level students, the employment shall be during summer and/or Christmas vacation, while for tertiary, technical, or vocational students, employment shall be at anytime of the year.

Among the benefits of the employment is the salary or wage not lower than the applicable minimum wage for private employers or the applicable hiring rate for the national or local government units. The employer shall pay 60 percent of the salary in cash, while the remaining 40 percent shall be by DOLE in the form of an education voucher.

Based on the SPES Accomplishment Report 1993-1999 (DOLE, Department of Education, Culture and Sports, & Department of Finance, n.d.), SPES was a locally funded project from 1993 to 1996 financed out of revenue collections and domestic borrowings. In 1997, the program’s budget became a regular fund released directly to the DOLE regional offices by the Department of Budget and Management (DBM).

Since 2005, the SPES is under the appropriations language “Capacity Building for Specific Sectors Program.” However, after the General Appropriations Act adopted the performance-informed budgeting structure in 2014, SPES is now grouped under the Employment Facilitation and Capacity Building Services as a Major Final Output. Figure 1 presents the increasing budget allocation for SPES.

Figure 1. SPES Budgetary Allocations (in PhP)

Source: BLE, 2014.

Since its implementation, the total budget has amounted to P3.82 billion. The total budget is not solely for the salaries or payment of wages of the beneficiaries but also covers administrative costs.

According to a Brief Report on the SPES (DOLE, 2014), between 21 December 2012 and 14 March 2013, the DBM gave the DOLE an additional P27.217 million for an additional 8,690 beneficiaries, on top of the DOLE’s regular SPES budget through the Disbursement Acceleration Program. Accordingly, the amount was shared among five regions, as detailed in Table 1.

Table 1. SPES Budget through the Disbursement Acceleration Program

Regional Office

Beneficiaries Amount (PhP ‘000)Target Actual

1 540 540 2,4302 300 410 3,847

4-A 5,600 2,026 13,44010 2,250 2,330 7,500

TOTAL 8,690 5,306 27,217Source: DOLE, 2014.

Likewise, as of 31 December 2013, a total of P25.343 million of the amount has been spent for SPES, a utilization rate of 93 percent.

Accomplishment

Based on the Roadmap to Decent Work Planning Tool 2014-2016 (DOLE, 2013b), SPES is envisioned as one of the programs to contribute to Outcome 1, “Enhanced Employability of Workers and Competitiveness of Enterprises.” Specifically, the program aims to achieve a 253.8 percent increase in the number of youth beneficiaries, from 84,786 beneficiaries in 2010 to 300,000 youth beneficiaries in 2016.

Since the implementation of SPES in 1993, it has covered a total of 1,993,871 students and out-of-school youth. In 2013, it placed 167,569 youth surpassing its target of 141,178, or a 118.3 percent accomplishment rate. As of the second quarter of 2014, with a target of 200,000 beneficiaries for the year, SPES has already placed 129,185 beneficiaries, an accomplishment rate of 64.6 percent. Figure 2 shows SPES targets vis-à-vis accomplishments.

Figure 2. SPES Targets vis-à-vis Accomplishments

Source: COA, 20009,; 2009,; 2010,; 2012; BLE, 2001-2008; DOLE, 2011b,; 2013; DOLE et al., n.d. DOLE Annual Physical Performance Reports, 2011 &, 2013; Commission on Audit Reports, 2000, 2009, 2010, & 2012; BLE, 2001-2008; SPES Accomplishment Report, 1993-1999DOLE et al., n.d.

III. Review of Related Literature

Youth employment problems have various dimensions and are manifested in several ways. The most familiar is unemployment, which has become a major concern for many countries. Numerous studies have been undertaken exploring the linkage of education and training to employment and productivity. Moreover, several countries have applied these concepts through youth employment programs as labor market interventions.

Education linkage to employment and productivity

Several scholars have used education in empirical analysis and studied its contribution to economic growth. Theodore Schultz (1961, as cited in Sweetland, 1996) asserted the prime relationship of education to human capital formation. According to Schultz, human activities such as on-the-job training, formal education, and study programs lead to improved human capabilities. In a further study, Schultz (1963, as cited in Sweetland, 1996) predicated the “economic function of education as human capital forming and its contribution to economic growth.” (p. 350).

Other studies on the relationship of education and economic growth explored the effects of educational attainment on obtaining employment, especially for the youth. Although there are country specifics on school-to-work transition, it is a common experience that young people with low levels of qualification face high risks of exclusion and lack of access to employment. Moreover, unemployment rates of highly skilled people tend to be lower than that of the low skilled. Those lacking proper training tend to experience an early phase of unemployment and are in a more vulnerable labor market position. Work opportunities are also relatively more available to the higher educated and trained youth than to those with lower levels of education. Thus, education and training are considered core factors in determining the chance of successful transition to work (Zimmermann et al., 2013).

Many studies (Becker, 1964, as cited in Xiao, 2001; Spence, 1973) have also stressed that education and training increase the productivity of workers. Educated workers simply reflect their superior ability (Shultz, 1975, as cited in Xiao, 2001). Meanwhile, there are findings that show that educational attainment has an effect on earnings. According to an Organization for Economic Co-operation and Development study (2013), there is a wide difference in earnings from employment between low educated and highly educated individuals. On average, the relative earnings of tertiary-educated adults are over 1.5 times that of adults with only upper secondary education. People with upper secondary education earn 25 percent more than their peers who left school early. The same study also found out that unemployment rates are nearly three times higher among people without an upper secondary education than among those who have a tertiary education.

However, some situations are ironic. Although many young people have more years of education and have greater access to the modern world through information technology, making them more attractive on the labor market, if they find work, they are either poorly paid or do not enjoy job stability or protection (ILO, 2006).

Youth employment strategies

Numerous countries have initiated policies and interventions designed to integrate young people in the labor market. In an inventory of the World Bank, active labor market measures vary by income level. Advanced countries tend to have a diverse range of programs, with comprehensive and training programs as popular ones; middle income countries are highly oriented towards training systems. For low income countries, categories of intervention are with training, entrepreneurship schemes, and comprehensive programs. Interventions from low income countries are collected Most of the countries are from Sub-Saharan Africa, South and East Asia and the Pacific, Latin America, and Central Asia (Puerto, 2007b).

One example is the Entra 21 program in Latin America. The Entra 21 program was established to improve the employability of the youth and place them in jobs. It is undertaken through coordinated lectures and internships. This initiative was developed by the International Youth Foundation and co-financed by the Multilateral Investment Fund of the Inter-American Development Bank. Grants have been awarded in 18 countries, namely Argentina, Belize, Bolivia, Brazil, Chile, Colombia, Dominican Republic, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, Uruguay, and Venezuela (Pezullo, 2005, as cited in Puerto, 2007b).

Table 2 presents selected Latin American youth employment programs. Most of the interventions in Latin America focus on skills training of young people, with widespread vocational skills and training for apprentices. The

programs aim to reach underskilled, unemployed, and disadvantaged youth and are implemented through partnerships with the local and central governments, allowing private sector participation in on-the-job training and in the provision of services to youths. Although there are limited impact evaluations to measure the net effect of the programs on the target population, nevertheless, they have been successful in improving job placement rates of participants and the quality of jobs attained after graduation. Likewise, many beneficiaries have returned to school after the program (Puerto, 2007a).

Table 2. Selected Latin American Youth Employment Programs

Program Objective Target Beneficiary Description of Intervention

Juventud Y Empleo (Dominican Republic)

To increase “employability” of at-risk youth by building their technical skills, work experience, and life skills

16-29 years old Have not completed

secondary school Unemployed,

underemployed, or inactive

From poorest 40% of households

A labor market insertion program providing life and technical skills combined with private sector internship

Proyecto Joven (Argentina)

To improve employment possibilities by giving the youth an intensive training and to support the expansion of the manufacturing firms in need of qualified workers

16 years old and above Have not completed

secondary school Either unemployed or out

of the labor force From poor households

The program consisted of two phases: Training phase: technical

training on a specific occupation

Internship: on-the-job training through activities related to those trainees have learned during the technical phase

Programa Chile Joven (Chile)

To provide intensive training for youth on technical and social skills towards improved job placement

16-24 years old Low level of formal

education With or without minimum

labor market experience From low-level income

families

The program has four components: Training and working

experience in enterprises (offers training in technical skills, job readiness, and life skills)

Combined training (combines training and on-

the-job training) Training for independent

jobs (for those who want to run their own businesses)

Job training for highly disadvantaged young people

Programa Jovenes en Accion (Columbia)

To improve the employability and employment levels and social integration of young unemployed through job training courses in semi-skilled trades

18-25 years old From low level income

households in seven main cities: Bogotá, Medellín, Cali, Barranquilla,Bucaramanga, Manizales, and Cartagena

The program consisted of two phases: Teaching Labor practice

Projoven (Peru)

To help economically disadvantaged youths to enter the formal labor market by providing them with training and an opportunity to acquire work experience based on the needs of the private sector

16-24 years old With low levels of formal

education From low-level income

families Without or minimum

labor market experience, currently unemployed

The training has two components: Learning phase Internship phase at private

firms

Projoven (Uruguay)

To help economically disadvantaged youth in job placement by providing them with training and opportunities to acquire work experience based on the needs of the private sector

15-24 years old Low-income individuals With low levels of

education and/or drop-outs

Individuals at risk (e.g., those who left school early, with drug abuse or violence problems)

The program offers three training modules depending on the needs of different target groups. Training courses feature: Technical and vocational

training Internships in companies Employment services

Source: Youth Employment Inventory; Alzua & Brassiolo, 2006; Card, Ibarraran, Regalia, Rosas-Shady , & Soares, 2011; Puerto, 2007a; Rosas-Shady, 2006.

Based on these studies and country experiences, one of the roles of education is to cultivate people to meet the needs of the labor market. To establish a strong human resource base, access to education, including higher education, is essential. It is apparent that higher levels of educational attainment are strongly associated with better employment rates and perceived as a gateway for better labor opportunities and earnings.

In recognition of the close relationship between education, employment, and earnings, a number of countries implement programs to boost employability of the youth to combat their unemployment. These mechanisms ensure that the youth have access to the skills and knowledge necessary to find productive jobs and to succeed in the workplace. In the Philippines, SPES is one of many government interventions giving the beneficiaries increased opportunities in the future through income and education support programs. Like in Latin America, a key feature of the program is having young people referred to the program provided with labor market information and internship or temporary work with employers. Skills and work experience acquired are expected to contribute to their smooth transition to the labor market. With different components (learning, training, internship) usually attached to youth employment programs, it is important to keep them closely tracked and rigorously evaluated.

IV. Conceptual Framework

Social programs or policies are introduced to meet a social need. Like any program, they have designs, concepts, and processes to achieve their objectives. Program theory is one of the tools to describe a program’s design and about how the program’s actions are supposed to achieve the intended outcomes. Information gathered is essential for stakeholders to improve existing or future programs. Program theory consists of a set of statements that describes a particular program, explain why, how, and under what conditions the program effects occur, predict the outcomes of the program, and specify the requirements necessary to bring about the desired program effects (Sedani & Sechrest, 1999, as cited in Sharpe, 2011). To describe the program, it uses three components: program activities or inputs, the intended outcomes or outputs, and the mechanics through which the intended outcomes are achieved (Sharpe, 2011). Such models could diverge from the simplistic, linear model to the nonlinear program theory model, which uses the action model and the change model. The change model describes the causal processes generated by the program while the action model deals with what actions must be taken in a program in order to promote desirable changes (Chen, 2012). Table 3 describes the elements in each model.

Table 3. Elements of the Action and Change Models

Action Model Change ModelImplementing Organization/s. It allocates resources, coordinates activities, and should have the capacity to implement the program.

Intervention. Any activity or agents of change within the program.

Implementers. They are responsible for delivering services to the clients.

Determinant. To reach goals, programs require a focus, which will clarify the lines their design should follow.

Community Partners. Programs may require collaboration or partnership with other organizations.

Outcome. It reflects the desire to fulfill unmet needs.

Intervention and Service Delivery Protocols. They refer to the operating procedures and particular steps to be taken to deliver the intervention in the field. Ecological Context. It refers to the supportive environment in the program’s work.

Action Model Change ModelTarget Population. Potential clients who are validly established through eligibility criteria.

Source: Chen, 2012.

Applying the concepts and the nonlinear program theory of Chen (2005), Figure 3 (next page) presents the conceptual framework indicating both the action and change models. The DOLE is the government agency responsible for implementing SPES through the BLE. As Program Manager, the BLE provides the necessary technical and administrative assistance to the DOLE regional and field offices given its resources.

The PESOs serve as the frontline implementer of SPES. The participating public and private employers provide temporary employment to the youth, students and out-of-school. The interaction of the implementers in the action model must be implemented appropriately to activate the transformation process. They determine the program’s operations, implementation, and service delivery.

On the other hand, the change model constitutes the goals and intended outcomes of the program—school retention and smooth transition of the youth to the labor market. To achieve these goals, the program’s focus is to augment the income of the beneficiary to pursue his/her education and eventually graduate, and at the same time develop skills for potential employability through temporary employment.

The dotted arrow lines illustrate feedback. Information from the implementation can be used to improve the planning or development of the action model. Feedback can also be used to improve the delivery of the service and the efficient use of resources. Similarly, information from the change model can be used to improve the implementation process and the action model.

Participating NGAs and Private Companies

(Associate Organizations)

ApplicationProcessingDeployment

(Intervention & Service Protocols)

Support of LGUs, NGAs and participating business enterprises

(Ecological context)

PESO (

Students and out-of-school youth (15-24 years old)

(Target Population)

DOLE (

Implementing

SPES(Program

Implementation)

Employment Facilitation

(Intervention)

Skills Development

(Determinants)

Smooth transition to labor market (Outcome)

School retention and eventually graduate

(Outcome)

Wage Subsidy (Determinants)

Income Augmentatio

n

Annual budget allocation for SPES

(Resource)

Change Model

Action Model

Figure 3. Conceptual Framework (Nonlinear Program Theory Model adapted from Chen, 2005)

IV. Implementation Issues and Concerns

Issues and concerns regarding the implementation of the program were gathered through interviews and focus group discussions with SPES implementers and former beneficiaries conducted in the regions of NCR, CARAGA, and Central Luzon. Experiences on implementing the program were given by SPES implementers, while immediate effects of the Program were provided by SPES beneficiaries.

A. Delayed payments/release of checks

One of the prevailing concerns raised is the delayed payment or release of checks to the beneficiaries. This concern was also raised in an Audit Finding by the Commission of Audit in 2012. Based on the Implementing Rules and Regulations (IRR) of RA 9547 (Joint Memorandum Circular DOLE-DepEd-CHED-DSWD-DBM-DOF No. 2010-001), DOLE shall pay the remaining 40 percent of student’s salaries within a prescribed period after the youth’s employment, as detailed in Table 4.

Table 4. Prescribed Schedule of Processing SPES Payments

Responsible Person

Steps in the Processing of PaymentsNumbe

r of Days

Employer Submit to the PESO of the Establishment Report Form (SPES Form 2)

5

PESO Receive, validate, and submit to the DOLE regional or field office all SPES Form 2 of participating employers for processing of education vouchers

3

DOLE regional or field office

Upon receipt of the SPES Form 2 from the PESO, pay the 40% of the applicable salary or wage of student in the form of an education voucher

3

Total Number of Days 11 Source: COA, 2012.

However, a clarificatory guideline issued in December 2013 (DOLE, 2013a) on the processing of the 40 percent SPES payment indicated that the processing may take 30 days based on Section 2 of RA 9547, which is to be followed as the provisions of the law shall prevail over its IRR.

Based on interviews, the delayed payment is mostly attributed to the huge volume of claims for processing and the holding of claims whose supporting documents are incomplete.

Since many students would like to participate in the program, there is a growing number of beneficiaries. The manual processing of SPES claims and encoding of reportorial requirements could not cope with the increasing volume of SPES beneficiaries. The distance of field offices from

the regional office is another factor which entails additional time in transporting the documents. Another factor is the lack of human resources. At times, focal persons handle more than one program, while the disbursement officer also handles other matters. One day as a process cycle time is not enough since the documents are individually evaluated.

Completeness of documents is likewise important, especially as the processing of claims is usually done in batches. If among the batch one has incomplete documents, it would cause delay in the preparation of vouchers for the whole batch. Among the corrective actions regarding this issue, regional offices were instructed to strictly comply with the timely submission of SPES documents, exclude in the payroll those students with inadequate documentation/deficiencies while necessary requirements are being completed, and implement an automated system of registration starting 2014.

B. Inconsistency in a provision of RA 9547 and the DOLE special advisory

Section 2 of RA 9547 says, “Sixty percent (60%) of the salary or wage shall be paid by the employer in cash and forty percent (40%) by the government in the form of a voucher which shall be applicable in the payment for the student’s tuition fees and books in any educational institution for secondary, tertiary, vocational or technical education.”

However, in 2012, a Memorandum was issued by DOLE specifying the mode of payment of SPES beneficiaries. The DOLE regional offices shall determine the most efficient and appropriate scheme to facilitate the payment of the 40 percent share of the SPES beneficiaries through the following: automated check preparation, ATM facility, and cash card payment. Likewise, “education voucher” is defined in the IRR as “any financial instrument used by DOLE to pay the 40 percent subsidy to student beneficiaries.” (For a diagram of the processing of the 40% counterpart, see Annex B)

Instead of issuing education vouchers to concerned education institutions as stated in the law, regional offices use ATM accounts, cash cards, or checks under the name of the student to release the remaining 40 percent of their salary. In interviews, implementers were asked of their insights regarding education vouchers being directly paid to educational institutions as the mode of payment in compliance with the law. Both implementers and beneficiaries expressed apprehensions about using education vouchers and directly paying it to educational institutions. Reasons cited are the following:

1. Non-acceptance of education vouchers. Some schools do not accept education vouchers, compelling the students to pay in cash. In case the value of the education voucher check is higher than the tuition fee or school cost, the excess amount is not returned to the student/beneficiaries.

2. Some students are under full scholarship/sponsorship. Some students are also under full scholarship or are enrolled in a public university or college, requiring no tuition fees.

3. Location of educational institutions. According to SPES focal persons, some students are enrolled in educational institutions outside of the region or province. Vouchers are sent to these colleges and universities as receipt, however there are instances when vouchers are not returned. Signed vouchers are important for documentation purposes. Administration and transportation incur additional costs.

C. Prone to political patronage

Since the program is implemented and also funded by local government units, there is a high probability that it could be used for political purposes. There are applicants who became beneficiaries through recommendation or “connections.” Although there is an objective criterion to be used in the selection of program beneficiaries, i.e., poor but deserving students, there is the possibility of appointing students to temporary employment positions on the basis of political support and work. The purpose of income augmentation and increase in training and employability for the beneficiary is defeated and is overcome by political rewards.

To minimize political patronage and biases in the selection of students as beneficiaries, PESO managers have devised mechanisms to give equal opportunities to all qualified applicants given the limited budget. In Agusan del Sur, the provincial PESO manager uses lottery in the presence of all qualified applicants to determine who will be given slots. This practice is to give equal opportunities to all students and at the same time minimize, if not eliminate, political patronage. Those qualified applicants who are not drawn are also considered for scholarships/sponsorships by the local government.

Another mechanism is the centralized processing of SPES applications. In Olongapo City, all applications and requirements should be submitted to the city PESO Manager’s Office. A recommendation from any authority, such as the barangay captain or other officials, is not a requirement. The selection of student beneficiaries is based on the criterion mandated by the law. There are also PESO managers who conduct examinations and preliminary interviews for the qualified students.

D. Leakages in Targeting

Since SPES has a legal mandate to implement, it has set standard qualifications or criterion for the selection of beneficiaries. Based on the IRR, “any student may apply for employment under the SPES, provided

he/she meets the . . . qualifications.” The program is also open to “any dependent of displaced or about to be displaced workers due to business closures or work stoppages as reported, provided that he/she meets the qualifications required.” Applicants are required to submit certification (from the Bureau of Internal Revenue or their barangays) attesting to the income of their parents to determine whether the applicant is financially eligible or not. However, there is still the possibility that the applicant would not have come from poor households.

One way to consider in identifying the poor at the local level is the National Housing Targeting System for Poverty Reduction (NHTS-PR). It is a cost-efficient tool since it has covered a great share of the poor in the country. The development and use of NHTS-PR could be considered as a major step in targeting the poor, replacing the ineffective targeting instruments especially at the local level. This data bank and information management system will help identify who and where the poor are in the country. The database can be used to direct resources to the regions that need them the most, concentrating on areas with high incidence of poverty thereby uplifting the community’s economic sustainability and reducing poverty.

E. Non-maximization of working days

Based on the IRR, the period of employment under SPES shall be governed by the following:

(a)For secondary level, employment shall only be during summer and/or Christmas vacations. During summer implementation, the number of days shall neither be less than 20 working days nor more than 52 working days. For Christmas implementation, the number of days shall neither be less than 10 working days nor more than 15 working days.

(b)For tertiary, technical, or vocational education level, employment shall be at any time of the year but in no case less than 20 working days or more than 52 working days within a period of one year. In all cases, employment should not exceed 52 working days within a period of one year.

According to SPES implementers and former beneficiaries, the average period of employment is between 20 and 30 days. Those who have reached the maximum number of 52 days are mostly in the service sector (e.g., fast food chains). Majority of the SPES beneficiaries interviewed expressed their willingness to work additional days to earn more.

Implementers of the Program explained that the working days are limited to 20 to 30 days to accommodate more applicants. Moreover, given a limited budget, they have to reach their annual target number of beneficiaries.

F. Low private sector participation

Republic Act 7323 states that “any person or entity employing at least 50 persons may during summer and/or Christmas vacations employ poor but deserving students.” It was later amended with the enactment of RA 9547 which allows “person or entity employing at least ten persons.” Likewise, the period of employment shall be 20 to 52 working days, except during Christmas vacation when employment shall be 10 to 15 days.

Given that the program has a short duration, the associated costs or “investments” (e.g., training costs) could be one of the reasons for low participation of the private sector. To increase participation of the private sector, DOLE field offices take the initiative to introduce and discuss the program to the companies and its potential economic and social benefits. Among others, the 60-40 sharing in the salary should be attractive to business establishments.

Depending on the economic status of the province or city, there are a number of private establishments who participate in the program. Most of these establishments are fast food chains, privately owned utilities (e.g., water districts, electric cooperatives), resorts, and merchandising businesses.

Based on information gathered, the usual partners of the program are local government units. SPES beneficiaries are usually employed in government agencies and city/municipal/barangay offices. Annually, local government units allocate specific budgets for the implementation of program.

G. Uninstitutionalized PESO

The PESOs provide frontline employment facilitation services at the local level, such as career guidance, timely labor market information, and job matching and referral. The PESOs also serve as the frontline implementer of SPES.

Based on the IRR of RA 9547, specifically, the PESO processes and evaluates the student’s application for matching and referrals, submits to the DOLE regional/field office all Establishment Report Forms of participating employers for the processing of the education voucher, and maintains a complete record of student beneficiaries and participating employers as well as submits a monitoring report to DOLE regional/field offices within 15 days after the end of each semester.

The PESOs are largely maintained by local government units. They are linked to the DOLE regional office for coordination and technical supervision and to the DOLE Central Office as part of the national employment service network. To deliver and take a proactive role in labor

market information, an institutionalized PESO is needed. It could have a stronger impact on employment facilitation. Thus, it needs to have sustainable operations (Angon, 2012).

Implementers of SPES were asked whether the institutionalization of a PESO is a factor in smooth implementation of the program. According to the implementers, although it is not a requirement, an institutionalized PESO has advantages in implementing its services. An advantage of an institutionalized PESO is that it sets annual targets in coordination with the DOLE Central Office and it will be held accountable for the achievement of those agreed upon targets. Other benefits in delivering services are the following: 1) adequate staff and funding for operations (annual budget appropriations); 2) training for personnel; 3) effective systems, procedures, and linkages with market and private employment service providers; 4) network of relevant stakeholders; and 5) setting in place of labor market information that could help in planning and monitoring (Angon, 2012).

School-based PESOs have also contributed in assisting students in job placement, especially graduating college students. This partnership is considered a mutually beneficial undertaking between the government and the academe that could address issues in jobs mismatch and unemployment. It could also be another step towards enhanced services in terms of labor market information, job placement and referrals, and career guidance.

In the orientation and interviews of SPES applicants, the discussion is not limited to the Program’s objectives, the duties, and responsibilities of both the employer and students and the proper work values and ethics. According to PESO managers, orientations have also become points of entry to discuss other DOLE programs on livelihood, alternative learning, and skills development.

H. Job-skills mismatching

According to SPES implementers, temporary jobs available under SPES are based on the Pledges of Commitment (which contain the type of occupation/work, age group, education level preferred, duration of work, and wage rate) submitted by the national government agencies, government-owned or -controlled corporations, and/or local government units, as well as private companies who want to be part of the program; and availability of funds for the purpose.

During data gathering, both SPES implementers and former beneficiaries were asked whether educational background is a factor in job placement. Ideally, job placement should fit the student’s education and skills for the purpose of exposure to actual work situations. However, according to SPES implementers, it is still based on the Pledges of Commitment submitted. They have no control over whether the SPES applicants’

education and skills are fit to the available jobs. Nevertheless, PESO managers try to deploy the beneficiaries in work and activities which are related to their educational background or would entail skills acquisition. Also, SPES beneficiaries should not be exposed to hazardous undertakings.

Former beneficiaries would have preferred that they were assigned to jobs related to their educational background. For instance, students who are taking up business- related courses or office administration could be assigned to administrative work; or those in medicine-related courses to hospital institutions. It is an advantage for them to be exposed on their field of education. However, former beneficiaries have admitted that job placement and their education background are secondary considerations. Their primary objective is to earn additional income for their studies and work experience.

I. Lack of monitoring mechanism

Based on the IRR of RA 9547, in the administration of SPES particularly in monitoring and report consolidation, the DOLE regional offices and PESOs have their own tasks as listed in Table 5.

Table 5. Monitoring Tasks for the SPES

Responsible

AgencyTasks

Number of Days

DOLE regional office

Maintain a complete record of student beneficiaries and participating employers and submit of a SPES Monitoring Report to the DOLE Central Office

One month after each semester

DOLE regional office

Consolidate report on “SPES babies” and submit it to the DOLE Central Office

Within 30 days after the end of each semester

PESO Maintain a complete record of student beneficiaries and participating employers and submit a SPES Monitoring Report to the DOLE regional/field office

15 days after the end of each semester

PESO Monitoring of “SPES Babies” and submission of report to DOLE regional/field office

15 days after the end of each semester

Although there is submission of reports for monitoring purposes, there is still difficulty in identifying and integrating information and data on whether the students have graduated or were eventually absorbed by the

company. Reports are merely based on figures of placements—number of students placed and participating establishments. However, the impact of the program could not be determined as it lacks indicators to serve as bases. (For diagram on the submission of monitoring reports, see Annex C)

V. Immediate effects of SPES on beneficiaries

A. Income augmentation

According to former SPES beneficiaries interviewed, the Program has augmented their income to finance their studies. Their wages from their temporary employment had helped them to offset all or part of the cost of their tuition. Since the 60 percent (employer’s share) wage is paid to the beneficiary after the duration of the employment, the beneficiaries used this part to cover their tuition fee. The remaining 40 percent, which is the DOLE’s counterpart, covered other costs such as transportation, uniforms, books, school projects, etc. Usually, the 40 percent wage is paid upon completion of post-employment documents. The salary from their temporary employment provided immediate relief for the students and a temporary safety net.

An overview of the salary of a SPES beneficiary working for 20 to 52 days and the DOLE’s 40-percent share is provided in Table 6.

Table 6. DOLE’s 40 Percent Counterpart in the Wage of SPES Beneficiaries (in PhP)

Region Minimum Wage

Total Salary

for (the minimum) 20 days

Amount from DOLE

(40% of Total)

Total Salary for

(the maximum) 52 days

Amount from DOLE

(40% of Total)

NCR 466.00 9,320.00 3,728.00 24,232.00 9,692.80CAR 280.00 5,060.00 2,024.00 13,156.00 5,262.40

I 253.00 5,260.00 2,104.00 13,676.00 5,470.40II 255.00 5,100.00 2,040.00 13,260.00 5,304.00III 336.00 6,720.00 2,688.00 17,472.00 6,988.80

IV-A 362.50 6,990.00 2,796.00 18,174.00 7,269.60IV-B 275.00 5,400.00 2,160.00 14,040.00 5,616.00

V 260.00 5,040.00 2,016.00 13,104.00 5,241.60VI 287.00 5,540.00 2,216.00 14,404.00 5,761.60VII 340.00 6,540.00 2,616.00 17,004.00 6,801.60VIII 260.00 5,200.00 2,080.00 13,520.00 5,408.00IX 280.00 5,600.00 2,240.00 14,560.00 5,824.00

X 306.00 5,880.00 2,352.00 15,288.00 6,115.20XI 312.00 5,820.00 2,328.00 15,132.00 6,052.80XII 270.00 5,400.00 2,160.00 14,040.00 5,616.00

CARAGA 250.00 5,360.00 2,144.00 13,936.00 5,574.40

B. Enhanced employability

In terms of job facilitation, beneficiaries claimed that temporary employment had enhanced their employability. Some of them have been offered to be absorbed by the company after graduation or offered part-time work. But most of all, their experience under SPES gave them a snapshot and confidence in the world of work. Student beneficiaries have been exposed to real actual work situations (e.g., clerical, administrative, services).

The SPES beneficiaries interviewed have also pointed out the difference of work experience in a public and private organization setting. In private offices, even though students have referrals from PESO managers, they are required to undergo the application process as if they were regular applicants. Students must take an examination, pass the interview, and undergo training. This process is particularly done by fast food chains. Unlike in public offices, students were given referrals addressed to the heads of agencies/departments for their job assignments. The SPES beneficiaries were also asked how long they took to get a job after graduation. Most of them said that they got a job immediately after graduation. They started to give applications to their prospective employers about a month before graduation and indicated their temporary work under SPES as work experience. Some of them took only one to two months to get a job, while others took a year because of personal preference not to look for a job yet or the job available is far from their residence.

Although they could not solely attribute their employability to their SPES experience, they still claimed that their temporary work experience has given them the advantage and confidence. Most of the SPES beneficiaries who have graduated are presently either under the Government Internship Program, job orders in government agencies, or eventually hired as government employees. Some of them who are education majors are now teachers in their provinces.

Numerous studies have explored the stepping stone effect of temporary employment. Since SPES is a bridging program and aims to increase employability, the transition to employment can be categorized into three as described by SPES beneficiaries in interviews. These types are: full-stepping stone, sort-of stepping stone, and no stepping stone effect (Ehlert, Kluve, &and Schaffnerm, 2012).

An example of a full-stepping stone effect of the temporary employment through the program is finding a job that is in line with one’s educational background and SPES experience. There are SPES beneficiaries whose educational attainment and temporary work are aligned and who eventually landed on a job fit to his/her background. Thus, they had a smooth transition to the labor market.

On the other hand, there are SPES beneficiaries whose educational background is not aligned with their temporary work. Some of them are attending education, accountancy, computer, or vocational courses but are given clerical work or service-related work, such as in fast food chains. At present, most of them are in government service, in either a permanent position or job order. This type of employment is considered a sort-of stepping stone effect, since their work experience, although not fit to their educational background, have gave them the advantage to be hired.

Lastly, there are SPES beneficiaries who have stayed with their temporary work, or were absorbed by the company. This practice is common among private establishments, especially in the service sector. While there is no stepping-stone effect, there is still a success, since they continued employment without the subsidies of the program. This school-to-work intervention has thus reduced the duration of job search for workers and its costs for both workers and employers.

V. Lessons and Recommendations

Youth unemployment and underemployment are among the most challenging economic and social problems faced by almost every country. Thus, governments and policymakers have identified policies and programs which increase the probability of finding work for the jobless youth, raise their productivity and income, and facilitate a smooth transition from school to the labor market.

The SPES is a form of government intervention promoting youth employment. Furthermore, the program targets a specific group of clientele. If the beneficiary was successfully placed in the labor market, the program has somehow contributed to address the problem of unemployment and underemployment. Although SPES responds directly and indirectly to the current problem and issues in the labor market particularly youth unemployment, whether it is effective is another story.

Using the program theory as conceptual framework in rapidly assessing SPES, the paper had identified the different components of the program: the primary activity of the program is providing temporary employment to the beneficiaries; the intended output is payment of salaries to augment their income and increase school retention; and the mechanisms to achieve this is wage subsidy. The program has exposed the beneficiaries to actual work thereby increasing their skills and enabling their smooth transition to the labor market. The description of the processes and mechanisms of the program gave information on the important steps, links, and phases of the expected transformation process as well as implementation issues between implementers, partners, and beneficiaries. Information and feedback gathered have also specified the different areas of concern and the necessary recommendations to bring about the desired program effects.

Conducting an in depth impact evaluation

Although this study presented the immediate effects of the program to its beneficiaries—income augmentation and enhanced employability, the smooth transition to the labor market has not been determined in this study. Although there is a possibility that in some way it addresses social issues such as poverty reduction, the net employment impact is another dimension.

This inference could be addressed through an in depth program evaluation with counterfactual analysis. This method could enable the attribution of cause and effect to the intervention (providing temporary work) and the outcome (school retention and smooth transition to the

labor market). The counterfactual measures what would have happened to the beneficiaries in the absence of the intervention, and “impact” is estimated by comparing counterfactual outcomes with those observed under the intervention. The analysis can determine whether the intended outcome can be solely attributed to the intervention. Thus, an in depth impact evaluation is highly recommended.

Strengthening employment facilitation

Employment facilitation both at the national and local levels must be strengthened through collaboration and innovation with the private sector and educational institutions. One initial step is the institutionalization of PESOs and establishment of school-based PESOs. The government must take the lead in disseminating labor market information at the local level, targeting the youth as an important component.

Effective labor market information can decrease job search costs for both employers and applicants. Access to information on job opportunities can reduce job search periods and can facilitate both labor market entrance and mobility. The temporary work under SPES can somehow assist employers to “detect” the skills of potential employees, can reduce hiring costs, and speed up the filling up of vacancies. At times, it may also increase the probability of a good match. Thus, information and lower costs of job search and hiring can promote youth employment.

Improving career guidance programs

According to Esguerra et al. (as cited in Canlas & Pardalis, 2009), mismatch may be informational in nature and improving the quality of job search may eventually reduce unemployment. Bridging the mismatch is not only a requirement during the job search phase. It should begin with young people, with their parents, investing on appropriate courses of educational training (vocational or university level) based on the ability of the student and the quality of jobs that are available or that will become available. Jobs-skills mismatch can be addressed by improving career guidance programs. Since SPES also caters to 15 years olds who are fresh graduates from highschool and soon to be college entrants, effective career guidance could equip students with requisite qualities and skills to explore options and opportunities and to make informed decisions to pursue fulfilling careers in either industry or government.

Gender mainstreaming through work experience

The United Nations recognizes gender mainstreaming as a strategy to achieve gender equality. However, a number of development organizations and agencies have demonstrated that gender mainstreaming had not been well understood or supported. Thus,

translating policy commitments on gender equality into resources and implementation has not been effective (ILO, 2009).

Under the SPES, the provision of temporary work as a strategy could be an approach or an entry point to promote productive employment and decent work for men and women using the gender perspective. Although gender stereotyping continues to be evident in young people’s minds, the temporary job experience under the program could disrupt this trend by providing young people with diverse and non-gender traditional experiences and ideas about the workplace through career guidance. Gender is not a criterion for participation in the program, giving equal opportunities for both young men and women; nevertheless a sex-disaggregated data could be useful in gender analysis and formulating policies responsive to gender and youth concerns. In 2013, women SPES beneficiaries for January to September 2013 constituted 46.6 percent of the total number of beneficiaries.

Improving the monitoring and evaluation system

Like any program or policy, continuous monitoring and evaluation can contribute to its effectiveness (Aldaba & Sescon, 2009). In SPES, there is a need to improve the monitoring and evaluation system. The law and its implementing rules and regulations only provides for mechanisms for documentation and recording. There exists no mechanism to measure or determine the intended outcome for the beneficiaries, their smooth transition to the labor market. Indicators have not been identified, making data or information unavailable to facilitate an in depth and comprehensive impact assessment. While the program is excellent in terms of increasing numbers of beneficiaries and job placements, the data is not enough to allow an in depth evaluation of the program. A good monitoring system would provide evidence of whether the program is improving or not. Although actual impact cannot be attributed without a control group, the information could provide useful elements to continuously improve the implementation of and detect trends in the program.

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Annex A. General Implementation of SPES (Flowchart)

Annex B. Processing of 40% Counterpart for SPES

*Pledges of Commitment contain the type of work, age group, education level preferred, duration of work, and wage rate. This is duly approved by Heads of Offices and Budget Officers for NGAs, LGUs, and GOCCs, while for private companies they are approved by CEOs and Finance Comptrollers, subject to the availability of funds.

SUBMISSION OF PLEDGES * (on or before scheduled date of pledging)

For NGAs, LGUs, or GOCCs: Through PESOs

For Private Companies: Through DOLE

Regional/Field Offices or PESOs

SPES APPLICATIONS

Inquiry at PESO (Application/ Registration)

Initial Interview

Final Interview/ PESO Manager Approval

Issuance of Requirements

Completion of Requirements

Filing up of DOLE Registration Form

Waiting for Signing of Contract

Orientation

SPES Deployment

Eligibility to become SPES beneficiary:1. 15-24 years old 2. Combined net income after tax of

parents, including his/her own income, if any, not exceeding the latest annual regional poverty threshold for a family of six as determined by NEDA

3. Has a passing average grade during the last school year/term attended

Basic requirements:1. Copy of birth certificate2. BIR ITR Certification or

Certificate of Indigency3. Certification of enrolment from

school registrar4. For OSY, certificate of good

moral character issued by an authorized barangay official

Submission of Requirements for the Processing of 40%

Wage

Additional requirements:1. Official Receipt from the school2. Certified True Copy of Grades

Scope: Starts upon receipt of complete and accurate post-employment documents from the PESO/employers and ends with DOLE’s payment of its 40% SPES counterpart.

Receives and

processes documents

Returns documents

to PESO

Pre-evaluates complete and valid post-

employment documents

Submits documents with voucher to the

Accountant

COMPLETE

NO

YES

Reviews, signs, and forwards evaluated

documents to Cashier

Issues the Check

Notifies PESO/Employer of the student beneficiaries’ salary and credits it in

his/her account

END

KEY STEPS DETAILS

Action Officer

FO Accountant

RESPONSIBLE OFFICER

Authorized Personnel

FO Cashier

Authorized Personnel

Pre-evaluation of Documents. Documents are

pre-evaluated for completeness upon receipt.

Processing of Documents. Authorized personnel processes the SPES claims within the day

of receipt from PESO.

Submission of Documents. Authorized personnel submits the evaluated documents with

attached voucher to the FO Accountant one day after

receipt of documents.

Review of Documents. FO Accountant reviews the

documents for completeness and validity and signs voucher

for the availability of funds within the day from receipt of validated documents including

FO Head approval.

Authorized Personnel

Issuance of Checks. If the student-beneficiary has a

cash card, cashier issues check payable to LBP, prepares cash card summary report, and deposits check to LBP to be credited to the student beneficiaries’ LBP account.

Otherwise, cashier issues check to the student beneficiary.

Notification of CheckCashier informs authorized

personnel of the check deposited and in turn authorized

personnel notifies the PESO concerned of the student-beneficiary’s 40% salary credited to their account.

Annex C. Flowchart of Submission of Reports (SPES)

1. SPES MONITORING REPORT

PARTICIPATING EMPLOYERS

OUTPUT FOR DOLE CO

DOLE RO/FOPESO

PRESCRIBED PERIOD

PURPOSE

FORM/REPORTEstablishment Report Form

(SPES Form 2)

SPES Form 2 contains: Number of students

hired Nature of work Occupation of

student Inclusive dates of

employment Wage rate Total salary or wage

paid to the student No. of days worked Other pertinent

information

Not later than 5 working days after

the duration of employment

All Establishment Report Forms

For the processing of education

voucher

RESPONSIBILITY SUBMISSION RECEIPT, VALIDATION, AND

SUBMISSION

Within 3 working days after receipt

RECORD KEEPING & MAINTENANCE

Validated Establishment

Report

SPES

MONITORING

REPORT

To keep a complete record of student beneficiaries and

participating employers

Within 3 working days after receipt

One month after each semester

2. REPORT ON “SPES BABIES”

PESO DOLE RO/FO OUTPUT FOR DOLE CO

FORM/REPORTReport on “SPES

Babies” (SPES Form 3)

Consolidated Report on “SPES Babies”

(SPES Form 4)

RESPONSIBILITYMONITORS AND SUBMIT REPORT

CONSOLIDATES REPORT

PRESCRIBED PERIOD

Within 15 days after the end of each

semester

Within 30 days after the end of each

semester

SPES

BABIES

REPORT