‘Phl must invest in human capital’

MANILA, Philippines - To realize sustainable and inclusive economic growth, the Philippines must invest heavily on human capital through education resulting in better employment figures.

According to National Economic and Development Authority (NEDA) Deputy Director General Emmanuel F. Esguerra, an important aspect of the government’s inclusive growth platform is investing in human capital, particularly in the young population that comprise about half of the country’s workforce.

 â€œInvesting in human capital, especially the youth that comprise a significant proportion of the Philippine population, is a major item in the government’s inclusive growth agenda,” Esguerra said.

According to the National Statistics Office (NSO), half of the population or 48 percent who are willing to work, are aged 15-34 years old.

Similarly, this segment of the population comprised 46 percent of Filipinos who are employed.

Esguerra noted that the lack of workers with appropriate skills is a major challenge.  He added that this is evident in industries that are knowledge-intensive and require a high degree of functional flexibility.

 â€œThat is why the most important skill is being good at learning, and that is what investment in quality basic education is for,” Esguerra said, at the Youth Leaders for Knowledge and Development (YKLD) forum sponsored by the World Bank.

The government is implementing measures to help enhance the competitiveness of workers and industries.

For instance, the government rollout of the K to 12 Basic Education Program aims to produce holistically developed learners with 21st century skills who are prepared for higher education, middle-level skills development, and immediate employment or entrepreneurship.

“This will signal to potential employers that the quality of Philippine labor is and will remain competitive and employable,” Esguerra added.

But the challenges remain daunting including the proper matching of education to employment, according to the National Statistical Coordination Board (NSCB).

NSCB Secretary General Jose Ramon G. Albert said in a report that despite the attainment of a college diploma, college graduates comprised at least 18 percent of the total unemployed, the third highest share in terms of educational attainment from 2006 to 2011.

Most of the unemployed college graduates are those who earned degrees on medical courses, trade, craft and industrial programs, engineering and architectural programs.

Data gathered by the Bureau of Labor Employment Statistics (BLES) meanwhile suggests that the top three hard to fill vacancies among professionals for the period January 2009 to June 2010 include accountants and auditors; electronics and communications engineers; and systems analysts and designers.

It may be observed that these top three hard to fill vacancies require specific technical requirements and most of which necessitates the passing of an eligibility exam. 

Further, the top 3 reasons why vacancies are hard to fill were: applicants lack needed competency/skill; applicants expect a high salary; and applicants lack years of experience.