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An examination of all major facets of the Philippine economy and development policy, this title looks to the past and to the future using approaches that are descriptive, analytical, interpretive and comparative. It assesses trends since the 1980s, identifies major policy issues, and provides a balance sheet of achievements and deficiencies.
This joint OECD-ILO report provides a comparative analysis of case studies focusing on improving skills use in the workplace across eight countries.
While the Philippines has achieved remarkable progress in raising the education level of its labor force, the standard proxy for educational attainment—years of formal schooling—is increasingly inadequate as a measure of workforce skills. About one-third of employers report being unable to fill vacancies due to lack of applicants with the requisite skills. Most of these “missing skills†? are socioemotional skills,†? also known as “non-cognitive skills†?, “soft skills†? or “behavioral skills.†? Emerging international evidence suggests that socioemotional skills are increasingly crucial to the types of jobs being created by the global economy. The following study presents new evidence from employer and household surveys on the role of socioemotional skills in the Philippine labor market. The analysis reveals that: • Two-thirds of employers report difficulty in finding workers with adequate work ethics or appropriate interpersonal and communications skills. Firm-based training increasingly focuses on socioemotional skills. • The more educated and employed workers tend to score higher on measures of grit, decision-making, agreeableness, and extroversion. • Socioemotional skills are associated with an increase in average daily earnings, in particular for women, young workers, less-educated workers, and those employed in the service sector. • Higher levels of socioemotional skills are also correlated with a greater probability of being employed, having completed secondary education, and pursuing tertiary education. Studies suggest that primary school is the optimal age for shaping socioemotional skills, but the Philippines’ elementary education curriculum devotes limited resources to their development. Schools continue to be judged solely by students’ performance in cognitive achievement tests, but not on soft-skills competencies, and teachers are not appropriately trained to foster the development of them. Finally, interventions targeting workers entering the labor force can also effectively bolster their socioemotional skills, complementing effects to improve labor-market information and vocational counseling.
Against the backdrop of the global financial crisis and rising food, fuel, and commodity prices, addressing poverty and inequality in the Philippines remains a challenge. The proportion of households living below the official poverty line has declined slowly and unevenly in the past four decades, and poverty reduction has been much slower than in neighboring countries such as the People's Republic of China, Indonesia, Thailand, and Viet Nam. Economic growth has gone through boom and bust cycles, and recent episodes of moderate economic expansion have had limited impact on the poor. Great inequality across income brackets, regions, and sectors, as well as unmanaged population growth, are considered some of the key factors constraining poverty reduction efforts. This publication analyzes the causes of poverty and recommends ways to accelerate poverty reduction and achieve more inclusive growth. it also provides an overview of current government responses, strategies, and achievements in the fight against poverty and identifies and prioritizes future needs and interventions. The analysis is based on current literature and the latest available data, including the 2006 Family Income and Expenditure Survey.
This volume argues that while labour market reforms may be necessary in some specific cases, by no means are labour market policies the main explanation for the widespread increase in unemployment and underemployment across Asia and country specific studies undermine the case for across-the-board labour market reforms.