Jobs mismatch keeps unemployment high

CEBU, Philippines - Despite the thousands of jobs being generated for the jobless citizens, the labor mismatch has remained a perennial problem that has made the country's unemployment rate unchanged.

In fact, the national Department of Labor and Employment has put the blame on jobs mismatch as one of the factors why the Philippines' jobless rate is still high despite many job vacancies in various industries.

According to the latest Labor Force Survey released by Philippine Statistics Authority, the unemployment rate slightly dropped to seven percent in April this year from 7.6 percent a year earlier.

In the 2014 Global Employment Trends report of the International Labor Organization, the Philippines has the highest unemployment rate -- at 7.3 percent -- among other members of the Association of Southeast Asian Nations.

The jobless setback somehow lies on the disparity between business demands and the existing talent pool, said Dr. Mathea M. Baguia, consultant on employment services of Cebu Province's Public Employment Service Office.

Mismatch

"This (mismatch) is really still existing," she told The FREEMAN in an interview yesterday. "Dugay na kaayo ni siya nga issue sa labor sector because we can't cope with the demands. Or, we can't meet the qualifications of the employers."

Mismatch may mean in a sense that jobs are being made available in a certain industry but it needs a particular set of skills which are not possessed by the worker pool. 

The employment consultant stressed that cultural mindset among parents is one problem, as they normally force their children to become professionals with specific skills even if there is no existing demand in the economy.

While some schools now offer technical short-term courses for those who want to learn skilled jobs, there still seems to be a "gap" in the labor market, she noted.

One way to address this problem, Baguia said, is to spur private-public partnership wherein industry associations and government agencies take a closer study on what the labor industry really demands.

The labor force also has to establish a balance between people with basic skills and those who have special skills in certain careers.

"Kulang pa gyod ta because the government alone can't solve this problem. The role of the academe is to produce graduates who can qualify the demands of the labor market," the official explained.

On one hand, the mismatch in the labor market impacts the economy in the sense that there is an existence of failure to produce enough workforce needed by the economy.

On the other hand, Baguia noted, the phenomenon also decreases the competitiveness of the labor market which has high demand but, in most cases, only few do qualify.

The implementation though of the K to 12 educational system which allows students to take basic jobs that do not require special skills is already one step to address this dilemma.

Local and overseas jobs

On another note, the business process outsourcing industry is now the top job generator in the local labor industry as call center firms are in need of additional manpower to fill vacancies, the PESO said.

Baguia said the high turn-over of workers in the BPO sector is one reason it has consistently been offering work vacancies to hopeful jobseekers.

Attrition or the reduction in the number of workforce due to resignation and retirement is the biggest factor, she added.

While a great number of people in the Philippines are looking for jobs as call center agents, there are a lot of individuals employed in the industry who are also leaving their careers every now and then.

"You know, the graveyard shift and the nature of the job are already great factors of the high turn-over in the industry," she said, advising BPO employers to devise their compensation package for their workers to let them stay longer in the workplace.

Second top employment generator is the hotel and restaurant industry because booming tourism industry in the province and city of Cebu. And third is construction industry.

Workers for the construction industry are both in demand for local and overseas labor market, said Julius M. Chua, PESOS's employment officer-designate.

As illegal recruiters continue to deceive prospective Overseas Filipino Workers until now, Chua advised OFW applicants to always seek advice from Overseas Workers Welfare Administration and Philippine Overseas Employment Administration. (FREEMAN)