Skills as the bedrock of success

In recent years, the Philippines has shown a promising outlook with positive trends in employment and unemployment rates. As of January 2025, the Department of Labor and Employment (DOLE) reported that employment rate spiked to 95.7 percent and unemployment rate fell to 4.3 percent, signifying a strong momentum for the economy.

However, challenges remain, including the need to address skills gaps, adapting to technological advancements and climate change impact for sustainability. With all of the rapid changes, there’s a great need to create measures from stakeholders and policy makers to respond to these challenges.

Reskilling and upskilling will emerge as key strategies to enhance labor productivity, employability and economic growth. Now is the prime time to step up to help the nation acquire the most essential skills to succeed, especially in today’s digital age.

The evolving Philippine talent market

The demand for skilled talent continues to rise as the Philippine job market shifts rapidly. For instance, we are recognized as a global leader in BPO, given an abundantly skilled workforce, exceptional English proficiency, low labor costs and alignment with Western business practices. Despite strong indicators, there is still uncertainty as artificial intelligence is shaking up current roles that gave rise to the country’s outsourcing boom.

According to BusinessWorld, AI tools like ChatGPT, customer service bots and robotic process automation are now being integrated into the whole BPO ecosystem. AI is already replacing voice-based roles.

The health care and pharmaceuticals industry is experiencing rapid growth as hospitals, clinics and pharmaceutical companies are expanding. Various medical technologies are utilized to improve standard of care and IT professionals in health care with relevant technological knowledge are more in demand to develop and manage digital platforms. Finance, digital marketing, engineering and skilled trades sectors are likewise actively seeking professionals with highly specialized skills to navigate the volatile world of work.

To survive the wave of disruption and leverage on the opportunity, there’s a crucial call to train, retrain and boost professionals to become globally competitive talents.

Reskill or upskill?

The Future of Jobs Report 2025 by the World Economic Forum cited that 68 percent of Filipino workers are expected to require training to meet evolving skill demands, higher than the 59 percent global average. So what solution should be prioritized – reskilling or upskilling?

Reskilling and upskilling serve different purposes, but both are crucial for workforce development. With the creation of new specialized roles, employees must reskill to acquire new skills and knowledge to adapt to the changing job requirements.

Meanwhile, for employees to further improve performance within their current role, then they must upskill to focus on enhancing existing skills.

Both reskilling and upskilling are not only beneficial for employees, but also for employers as they can gain competitive advantage by having a more agile, innovative and productive workforce. It can also address some of the major challenges such as skills mismatches, shortages and gaps. At the same time, employers can optimize their human capital, reduce turnover costs and foster a culture of learning and development.

There is still a long way to go for our country to embark on a reskilling and upskilling revolution. Lack of foresight and strategic direction has weakened the country’s ability to fortify its skills agenda. There are also instances of education being eroded, which has reduced social mobility and stunted economic growth.

To effectively promote a movement and advocate national skills building, it will require the government, businesses, industry organizations and educational institutions to come together and act decisively.

Moving towards progress

Given the market demands and pivots, gradual steps by the government are being taken to build a future-ready talent ecosystem. President Marcos recently made key directives towards the skills agenda. He approved the funding for the upskilling of 340,000 workers in the BPO industry annually to “ensure the country’s global competitiveness as artificial intelligence reshapes the workforce.”

Moreover, the president signed Republic Act 12178 or the National Education Support Personnel Day Act into law, as May 16 of every year will be dedicated as a special day to recognize the vital contributions of education support personnel to quality education.

He also issued an order allowing foreign nationals to temporarily reside and work remotely in the Philippines through Executive Order 86, which authorizes the issuance of digital nomad visas (DNVs).

The Technical Education and Skills Development Authority (TESDA) is strengthening workforce development through the Enterprise-Based Education and Training (EBET) Framework Act, aiming to “enhance skills training, improve employability and bridge the gap between education and industry.” The EBET Framework Act seeks to strengthen collaboration between TESDA, enterprises and technical and vocational education and training (TVET) institutions to “ensure that the country’s workforce is equipped with skills aligned with industry demands.”

With these actions, it can signify the beginning of a smarter, more resilient and more competitive future.

Ways to future-proof your workforce

In order to stay ahead of the curve, reskilling and upskilling the workforce is essential to breed the next generation of talents. With the acceleration of generative AI, automation and other advanced technologies, it will keep talents relevant and at the same time enhance employee engagement and loyalty. Here are ways to kickstart your journey:

• Embrace learning agility to enhance workforce skills

• Encourage employees to be open to new experiences and continuously seek knowledge. With learning agility, it helps them adapt to change, acquire new skills and apply them in various contexts.

• Invest in early workforce development. Early in their careers, focus on employee development to build a resilient workforce. This can also help you identify high potential employees to create a strong talent pipeline and prepare them for growth opportunities and prospective leadership roles.

• Gain leadership support for skills development. Leaders must understand the importance of future skills and commit to development initiatives. This requires prioritizing long-term employee growth over short-term gains. By championing skills development, leaders foster a culture that values continuous learning and innovation, which is crucial for sustainable success.

Learn more about the challenges and opportunities of the expanding workforce and shifting labor market in the upcoming National Skills Summit hosted by Viventis Search Asia. The National Skills Summit 2025 is a one-day event that brings together key leaders from government and business to tackle the skills gap and strengthen the Philippines’ workforce.

Discover the latest trends in skills development, explore workforce changes and gain practical strategies to close the gap, empower talent and drive progress.

Join us on June 5, 2025 at Isla Ballroom, Edsa Shangrila Hotel. Register now to reserve your seat: https://hubs.li/Q03gXnh20