RO3 JobsFit 2022-2025 LMI Report

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DEPARTMENT OF LABOR AND EMPLOYMENT

REGION III

2022 – 2025
LABOR MARKET
INFORMATION REPORT
REGION III
TABLE OF CONTENTS

Executive Summary ................................................................................................................................ 1


Background ............................................................................................................................................. 2
Methodology .......................................................................................................................................... 4
Chapter 1: Labor Market Context .......................................................................................................... 6
A. Regional Macro-Economic Condition ........................................................................................... 6
B. Regional Key-Employment Indicators .......................................................................................... 8
C. Labor Supply ............................................................................................................................... 11
▪ Jobseeker Profile.............................................................................................................. 11
▪ Foreign Nationals ............................................................................................................. 13
▪ Labor Supply Outlook....................................................................................................... 14
D. Labor Demand ............................................................................................................................ 19
▪ Employment Growth by Industry .................................................................................... 19
▪ Key Employment Generators and their Employment Share ........................................... 21
E. Regional Economic/Workforce Development Plan .................................................................... 24
Chapter 2: Labor Market Outlook ........................................................................................................ 26
A. Industry Outlook ......................................................................................................................... 26
B. Emerging Industries .................................................................................................................... 27
C. Emerging Jobs ............................................................................................................................. 29
D. Priority Skills Requirements........................................................................................................ 31
▪ In-demand Occupations................................................................................................... 31
▪ Hard-to-fill Occupations................................................................................................... 32
▪ Cross-cutting Occupations ............................................................................................... 33
▪ Skills Shortage and Surplus .............................................................................................. 34
▪ 21st Century Skills ............................................................................................................. 35
E. Digital Economy .......................................................................................................................... 36
F. Green Jobs .................................................................................................................................. 37
Chapter 3: Labor Market Facilitation Programs .................................................................................. 39
A. Public Employment Services ....................................................................................................... 39
B. OFW Reintegration ..................................................................................................................... 41
C. NSRP-PEIS, PJN, and other LMIS ................................................................................................. 44
D. Skills Development ..................................................................................................................... 48
Chapter 4: JobsFit Action Agenda ........................................................................................................ 53
A. Progress Report of the 2017 JobsFit Regional Action Agenda ................................................... 53
B. New JobsFit Action Agenda ........................................................................................................ 53

JobsFit Labor Market Information Report – Region III | ii


EXECUTIVE SUMMARY

The macroeconomic condition of Central Luzon may have declined in 2020 because of the global
health crisis, but the economy of Region 3 is slowly and positively rising in 2021. Likewise, the
employment rate rose from 86.9 percent in 2020 to 92.5 percent or equivalent to 4.80 million total
employed persons in 2021. Meanwhile, the unemployment rate of Central Luzon improved from 13.1
percent in 2020 to 7.5 percent in 2021.

The safe reopening of the economy due to the continuous decline of the COVID-19 cases in the country
has enabled Key Employment Generators (KEGs) to exhibit employment expansion. Wholesale and
Retail Trade, Manufacturing, Construction, Agriculture, IT-BPM, Hotel, Restaurant, and Tourism, and
Transportation Storage are seen to be the KEGs in Central Luzon for the next three years.

As we continue to cope up with the “new normal” brought about by the COVID-19 pandemic, the
landscape of the economic and labor market also changes. The effects of the pandemic opened up
potential growth to different industries such as e-commerce, information technology, and delivery
services. With the emergence of these industries, high demand in call center hubs will be seen. Jobs
in the manufacturing sector still continue to be one of the top jobs in the region.

When it comes to labor market facilitation, the Public Employment Service Offices have likewise been
one of the functional partners of the local government units in terms of taking advantage of the
opportunities available in the aspect of employment creation, generation of Labor Market Information
(LMI) as well as employment coaching and career counseling. Through the continuous exercise of their
core functions and delivery of their services such as but not limited to Job Vacancy Solicitation, Job
Matching, referral and placement, generation of Labor Market Information, provision of career
guidance to hopeful jobseekers, employment coaching, and provision of livelihood assistance and
reintegration of OFWs, PESOs are expected to continuously usher the adaption of enterprises and
workers towards the changing market conditions.

On the other hand, job mismatch remains a perennial issue and one of the factors contributing to this
is the skills gap between the skills that employers require and the skills that job seekers possess. To
better address this mismatch, there is a need for more collaboration between the government and
private sector as well as the academe in analyzing the labor market progress and changes. Priority
should be given to the formulation of development plans and training programs in a continuous effort
to upskill workers.

Looking forward, Central Luzon is gradually becoming the next trade growth area outside of Metro
Manila that investors and companies are exploring and expanding to. Encouraging the local
government units to craft a localized LMI analysis is also a must to have a relative view of the economic
landscape at the local level. In order to meet the demand of the labor market, a stronger partnership
of the government with the private sector, businesses, and the academe are also necessary.

JobsFit Labor Market Information Report – Region III | 1


BACKGROUND
Region III, more popularly known as Central Luzon, is a
region on the island of Luzon covering a total land area of
2,201,463 hectares. It comprises seven provinces and two
highly urbanized cities richly endowed with natural and
human resources, namely: Aurora, Bataan, Bulacan,
Nueva Ecija, Pampanga, Tarlac, Zambales, Angeles City,
and Olongapo City. The region occupies the vast central
plain of the island of Luzon and is strategically located
between Northern Luzon and National Capital Region. It
is blessed with towering mountain ranges with extinct
and active volcanoes, fertile verdurous farmlands, and
natural sea harbors. Tagged as the “Rice Granary of the
Philippines”, Central Luzon remains to be the leading
producer of rice in the whole country.

Located in the eastern part of the region is the “Sanctuary of Nature’s Splendor” – the province of
Aurora which is undoubtedly a cradle of valorous and brilliant people, rich historical remnants, and
well-preserved beauty of flora and fauna. Neighboring Aurora is the province of Nueva Ecija. This
province is known for its lush and verdant farmlands that produce the most rice among all the
provinces which made it to be known as the “Rice Bowl of the Philippines”. Connecting south of Nueva
Ecija is the province of Bulacan. Dubbed as the “Northern Gateway from Manila”, this province boasts
its strategic and geographic location as it bridges the large consumer market in Manila and the
resource-rich provinces of North Luzon. Meanwhile, lying at the heart of the region, the province of
Pampanga is considered as the capital of Central Luzon. This province has always enjoyed the titles,
“The Culinary Capital of the Philippines” with its sumptuous and delectable cuisines and “The
Christmas Capital of the Philippines” with its world-class lanterns during the yuletide season. The
province is a site of a booming economy and a rapid growing marketplace of different industries.

Bordered by Pampanga to the south, Nueva Ecija to the east, Pangasinan to the north, and Zambales
to the west is the province of Tarlac. Tarlac is considered the most multicultural of the provinces of
Central Luzon as it is inhabited by Pampangos, Ilocanos, Pangasinenses, and Tagalogs. Beside east of
Tarlac is the province of Zambales. This province has always been a frontrunner in terms of sustaining
nature’s glory and beauty amidst the relentless by-products of civilization. Lastly, bounded by
Pampanga and Zambales on its north is the province of Bataan. Bataan shared numerous historical
accounts like the Battle of Bataan, Bataan Death March, famous century-old edifices at the Las Casas
Filipinas de Acuzar, and others that serve as mighty emblem of its historical shares.

It is also the home of several special economic and freeport zones as it is strategically accessible
through the Freeport Area of Bataan, Clark Freeport and Economic Zones, and Subic Bay Freeport
Zone, three of the country’s leading international gateways that have globally competitive enterprises
given the low cost of doing business and the critical mass of transport infrastructure.

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Central Luzon’s economy continued to show strong signs of recovery amid the COVID-19 pandemic
based on the majority of the headline economic indicators in 2021. Moreover, the labor market
situation in the region improved as a result of the gradual easing of the general community quarantine
measures. The employment rate for 2021 was estimated at 92.5 percent. This is 5.6 percent higher
than the estimate in 2020.

Linking agribusiness, manufacturing, and services, the collaboration between the private and public
sectors, and the synergy between industry and the academe, serve as an effective strategy for
achieving sustainable and inclusive growth for Central Luzon.

This report discusses the employment situation in Central Luzon before and during the breakout of
the COVID-19 pandemic as well as the future labor market in the “new normal”. Data used are sourced
from the Philippine Statistic Authority (PSA), the Commission on Higher Education (CHED), the
Department of Education (DepEd) the National Economic and Development Authority (NEDA), the
Department of Trade and Industry (DTI), the Professional Regulation Commission (PRC), the Technical
Education and Skills Development Authority (TESDA), the Overseas Workers Welfare Administration
(OWWA), Public Employment Service Offices (PESOs), Job Placement Offices (JPOs), private
institutions, and other available administrative data.

JobsFit Labor Market Information Report – Region III | 3


METHODOLOGY

From May to July 2022, a questionnaire was disseminated to various stakeholders from both the
government and private sectors to collect preliminary data. A regional consultation and focus group
discussion was then conducted in August 2022 to validate the initial data gathered and gather
additional input from stakeholders from various sectors. In the government sector, national
government agencies (DOLE Regional Office 3 and Field Offices, Regional Offices of CHED, DA, DepEd,
DOST, DTI, NEDA, OWWA, PRC, PSA, and TESDA), provincial and municipal/city Public Employment
Service Offices (PESO), and Job Placement Offices (JPO) were present. Representatives from the
economic and freeport zones, labor groups, employer associations, academe, private employment
agencies, and private companies attended the consultation for the private sector. Secondary sources,
such as publications from government websites and administrative data, were also used in the review
process.

The JobsFit 2022-2025 report uses the review strategy framework as shown below:

Demand Supply
(Jobs available) (Workers available)
• Industry outlook • Jobseeker profile
• Emerging industries • Foreign nationals in
• Priority skills the Philippines
• Digital economy • Labor supply forecast
• Overseas employment

Labor Market
Facilitation Programs

Development Plans

Based on this framework, the JobsFit 2022-2025 report examines the dynamic between the demand
and supply side of the labor market as well as the role of employment facilitation programs designed
to address the needs of both sides. On the other hand, the development plans cover the government’s
overall plan and strategies for steering the labor market toward priorities anchored on the
achievement of its development goals.

JobsFit Labor Market Information Report – Region III | 4


Labor Demand Indicators and Data Sources
Type of LMI Data Sources
Regional Macro-economic Condition PSA and NEDA
Employment Growth by Industry RSET 2020 and 2021 from PSA
Key Employment Generators PSA
Emerging Industries PSA and DTI
Emerging Jobs DTI and Private Sector
In-demand Occupations Private Sector and PESO
Hard-to-fill Occupations Private Sector and PESO
Skills Shortage and Surplus TESDA and PESO
Digital Economy PSA and DTI
Green Jobs NGAs, Private Sector and PESO

Labor Supply Indicators and Data Sources


Type of LMI Data Sources
Regional Key Employment Indicators PSA
Jobseeker Profile PESO (PEIS)
Labor Supply Outlook PSA, CHED, DepEd, PRC, TESDA
Overseas Filipino Workers OWWA
Foreign nationals DOLE (AEP)

JobsFit Labor Market Information Report – Region III | 5


CHAPTER 1: LABOR MARKET CONTEXT

A. REGIONAL MACRO-ECONOMIC CONDITION

Central Luzon’s average growth rate from 2016 to 2017 reached 10.4 percent and it was the highest
contributor to the country’s economic growth, contributing 3.5 percentage points to the country’s 6.9
percent growth. Despite the slower growth as compared with the previous year, the region’s economy
grew by 6.9% in 2018 and it’s still higher than the country’s Gross Domestic Product (GDP) of 6.3%.
However, Central Luzon’s Gross Regional Domestic Product (GRDP) decline to 5.9 percent in 2019.

Gross Regional Domestic Product,


Central Luzon: 2017 to 2021
At Constant 2018 Prices, in Percent
15.0%
10.4%
10.0% 7.4%
6.9%
5.9%
5.0%

0.0%
2016-2017 2017-2018 2018-2019 2019-2020 2020-2021
-5.0%

-10.0%

-15.0%
-13.9%
Source: Philippine Statistics Authority Region III

However, because of the effects of the COVID-19 pandemic and implemented lockdowns, the GRDP
contracted by 13.9 percent in 2020. Of the 9.6 percent economic drop in the country, Central Luzon
was the second largest contributor to the decline with 1.6 percentage points, accounting for 10.7
percent of the total GDP. Meanwhile, in 2021, Central Luzon’s economic output rose to 7.4 percent.
There was a growth of 13.8 percent in the production of goods and services from the Industry Sector
and a 5.8 percent increase from the Services Sector, but a decrease of 6 percent in the Agriculture,
Forestry, and Fisheries Sectors.

Of the 5.7 total economic growth in the country, Central Luzon was the third largest contributor
to the increase with 0.8 percent points, accounting for 10.9 percent of the total gross domestic
product. Also, Central Luzon’s gross capital formation posted a growth of 42.8 percent in 2021. The
Gross Regional Domestic Product (GRDP) in region 3 averaged at 2.02 trillion pesos.

JobsFit Labor Market Information Report – Region III | 6


Growth Rates by Industry, Central Luzon: 2020 to 2021
At Constant 2018 Prices, in Percent

Mining and Quarrying 41.4


Human Health and Social Work Activities 21.9
Manufacturing 17.1
Information and Communication 12.3
Accommodation and Food Service Activities 11.5
Transportation and Storage 9.6
Public Administration and Defense 8.8
Professional and Business Services 8.2
Construction 7.5
Education 7.2
Electricity, Steam, Water, and Waste Management 6.9
Financial and Insurance Activities 3.4
Wholesale and Retail Trade 1.8
Real Estate and Ownership of Dwellings 1.3
Other Services 1.3
Agriculture, Forestry, and Fishing
-6.0
-10 0 10 20 30 40 50

Source: Philippine Statistics Authority Region III

The main drivers for the increase in Central Luzon’s economy in 2021 were Mining and Quarrying at
41.4 percent, Human Health and Social Work Activities at 21.9 percent, Manufacturing at 17.1 percent,
Information and Communication at 12.3 percent, and Accommodation and Food Service Activities at
11.5 percent. On the other hand, Agriculture, Forestry, and Fishing industry declined by 6 percent.

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Gross Regional Domestic Product by Industrial Origin Percent Distribution,
At Constant 2018 Prices: Central Luzon
Industry/ Year 2020 2021
I. Agriculture, Forestry and Fishing 13.5 11.8
II. Industry 39.8 42.2
a. Mining 0.2 0.3
b. Manufacturing 25.5 27.8
c. Construction 11 3.1
d. Electricity, Steam, Water, and Waste Management 3.1 11.0
III. Services 46.7 46.0
a. Wholesale and retail Trade; Repair of Motor Vehicles and
12.9 12.2
Motorcycles
b. Transportation and Storage 3.6 3.7
c. Accommodation and Communication 1.6 1.6
d. Information and Insurance Activities 4.6 4.8
e. Financial and Insurance Activities 3.6 3.4
f. Real Estate and Ownership of Dwellings 5.5 5.2
g. Professional and Business Activities 5.4 5.5
h. Public Administration and Defense; Compulsory Social Activities 2.2 2.2
i. Education 3.7 3.7
j. Human Health and Social Work Activities 1.3 1.5
k. Other Services 2.3 2.1
Gross Domestic Product 100.0
Source: Philippine Statistics Authority Region III

Services accounted for 46.0 percent of the region’s total GRDP in 2021, followed by Industry with 42.2
percent, and Agriculture, Forestry, and Fishing with 11.8 percent. Services had a slight decrease from
46.7 percent in 2020 to 46 percent in 2021 same as Agriculture, Forestry, and Fishing with a decline
of 1.7 percent. Meanwhile, Industry had an increase of 2.4 percent from 2020 to 2021 mainly
attributed to Electricity, Steam, Water, and Waste Management with an increase of 7.9 percent.

B. REGIONAL KEY EMPLOYMENT INDICATORS

Results of the 2019 to 2021 Labor Force Survey (LFS):


Central Luzon
Particulars 2019 2020 2021
Population 15 years and over (in 000) 8,333 8,576 8,789
Labor Force Participation Rate (%) 59.8 56.9 59.0
Employment Rate (%) 94.9 86.9 92.5
Unemployment Rate (%) 5.1 13.1 7.5
Underemployment Rate (%) 10.1 12.1 7.3
Source: Philippine Statistics Authority

In 2021, the number of persons who were in the labor force in Region III was estimated at 5.18 million.
This is the active population, either employed or unemployed, accounting for 59 percent labor force

JobsFit Labor Market Information Report – Region III | 8


participation rate (LFPR) of the 8.7 million population 15 years old and above. The number of persons
who were in the labor force increased by 300,000 in 2021 mainly because many people were looking
for work and businesses seemed to continue their operations amidst the COVID-19 pandemic.

The employment rate rose from 86.9 percent in 2020 to 92.5 percent or equivalent to 4.80 million
total employed persons in 2021. Meanwhile, the unemployment rate of Central Luzon improved from
13.1 percent in 2020 to 7.5 percent in 2021.

Employed persons who express their desire to have additional hours of work in their present job or to
have an additional job or have a new job with longer working hours are considered underemployed.
In 2021, the total number of underemployed in Central Luzon was estimated at 352,000 with an
underemployment rate of 7.3 percent.

Central Luzon’s labor market improved in 2021, as the economy slowly reopened despite the COVID-
19 cases remaining high. Economic managers said that the strong collaboration among the
government, the private sector, and international development partners and an accelerated
vaccination program would continue to improve labor market conditions and lead to economic growth
in 2022 and the coming years.

These significant improvements point to an economy on the mend. As the economy was further
reopened in 2021, more Filipinos were able to rejoin the labor force and earn sufficient income, as
indicated by the improved employment rate and lower unemployment rate. The key employment
indicators in the region are returning to and even exceeding their pre-pandemic level.

Employment in Central Luzon: 2019 to 2021


100.00%

94.90% 92.50%
80.00% 4,728,994 86.90% 4,795,000
4,240,498

60.00%

40.00%

20.00%

0.00%
2019 2020 2021

Source: Philippine Statistics Authority

The region’s employment rate rose in 2021 to 92.5 percent with 4.80 million workers. This translates
to the incline of almost 560 thousand workers from 2020. The increase in employment rate is mainly
because the economy is gradually reopening and the emergence of new jobs amidst the pandemic.

JobsFit Labor Market Information Report – Region III | 9


Unemployment in Central Luzon: 2019 to 2021
16.00%

12.00% 13.10%
639,246

8.00%

7.50%
388,913
4.00% 5.10%
254,140

0.00%
2019 2020 2021

Source: Philippine Statistics Authority

The region’s unemployment rate rose to 13.10 percent accounting for 639,246 unemployed Filipinos
in 2020. One of the negative impacts of the COVID-19 pandemic in 2020 was the increase in the
unemployment rate in Central Luzon. Many establishments and companies were forced to lessen their
labor force due to the consecutive lockdowns and economic downturn because of the global health
crisis.
However, the region’s unemployment rate started to ease in 2021 with 7.50 percent or 388,913
unemployed individuals.

Underemployment in Central Luzon: 2019-2021

15.00%

12.00%
12.10%
513,100
9.00% 10.10%
477,628

6.00% 7.30%
350,151

3.00%

0.00%
2019 2020 2021

Source: Philippine Statistics Authority

The region’s underemployment or percentage of the working population looking for more hours of
work in Central Luzon increased by 2 percent accounting to 513 thousand underemployed individuals
from 2019 to 2020. But in 2021, the underemployment rate declined by 4.8 percent accounting to
only 350 thousand underemployed individuals. The decline of the underemployment rate was

JobsFit Labor Market Information Report – Region III | 10


significantly high because of the reopening the of economy, the loosening of travel restrictions, and
the opening of job fairs which gave an opportunity to employers to look for employees and vice versa.

C. LABOR SUPPLY

▪ Jobseeker Profile

Number of Registered Jobseekers in Central Luzon,


2018 to 2021
300,000
261,751
250,000
211,623
200,000
196,872
150,000

100,000
106,902
50,000

0
2018 2019 2020 2021

Source: PESO Employment Information System (PEIS)

Based on the administrative data derived from the PESO Employment Information System (PEIS), the
number of job seekers increased by 33% from 196,872 in 2018 to 261,751 in 2019. However, a notable
decrease of 59% in the number of job seekers was recorded from 2019 to 2020 as a result of the
imposition of the nationwide community quarantine and the onslaught of the COVID-19 pandemic. In
2021, a significant increase in jobseeker registration can be noted as an average growth of 98% was
recorded. The number of job seekers almost doubled from 2020 to 2021 given that community
quarantines and business shutdowns brought about by the pandemic have led to serious disruptions
in work across the region and in the Philippines that affected the employment of the workers.

For the past four years, the number of female jobseekers remained higher than male jobseekers. The
number of male and female jobseekers increased by 91% and 104%, respectively, from 2020 to 2021.
Meanwhile, the highest number of registrants belonged to the age group 25-34 years old from 2018
to 2020. However, the number of job-seeking youth aged 20 to 24 years old has been rising and has
increased by 100% from 32,308 in 2020 to 64,619 in 2021.

JobsFit Labor Market Information Report – Region III | 11


Number of Jobseekers by Educational Attainment in Central Luzon,
2018 to 2021
Particulars 2018 2019 2020 2021
Elementary Level 1,658 2,772 990 4,426
Elementary Graduate 8,031 15,123 6,287 13,870
High School Level 26,555 40,293 14,260 28,307
High School Graduate 58,189 97,325 42,162 81,246
Vocational Level 1,173 1,620 597 1,775
Vocational Graduate 9,031 8,931 4,532 6,794
College Level 19,498 25,515 13,704 36,708
College Graduate 42,352 64,303 23,520 37,520
Masteral/Post-Graduate Level 112 151 61 172
Masteral/Post-Graduate 173 160 107 210
TOTAL 166,772 256,193 106,220 211,028
Source: PESO Employment Information System (PEIS)

From 2018 to 2021, the greatest number of registrants in terms of educational attainment belonged
to high school graduates – including Junior and Senior High School graduates. In 2021, 38.5% or 81,246
registrants were high school graduates. It was then followed by college graduates (37,520 or 18%) and
individuals who reached college level (36,708 or 17%).

Number of Jobseekers by Employment Status in Central Luzon,


2018 to 2021
Particulars 2018 2019 2020 2021
Employed 53,337 66,143 26,743 62,810
Wage-employed 34,826 44,803 16,491 31,695
Self-employed 18,511 21,340 10,252 31,115
Unemployed 143,495 195,244 80,089 148,361
New entrant/fresh graduate 78,758 88,041 32,813 71,378
Finished contract 42,250 75,570 33,283 48,797
Resigned 15,860 27,728 9,232 20,676
Retired 3,236 2,085 3,840 2,983
Terminated/Laid off due to calamity - - 392 2,823
Terminated/Laid off (local) 2,633 1,187 317 1,176
Terminated/Laid off (abroad) 758 633 212 528
Source: PESO Employment Information System (PEIS)

In 2018 and 2019, majority of jobseekers were new entrants to the labor force or fresh graduates
followed by unemployed workers with finished contracts and wage-employed individuals. However,
unemployed workers with finished contracts accounted for the largest number of jobseekers in 2020
with 31% followed by new entrants/fresh graduates (30%) and wage-employed individuals (15%).

Meanwhile, new-entrants/fresh graduates and workers with finished contracts had the highest
number of jobseeker registrants with a percentage of 33.8% and 23.1%, respectively, in 2020 and
2021. The number of employed jobseekers increased by 135% from 26,743 in 2020 to 62,810 in 2021.

JobsFit Labor Market Information Report – Region III | 12


There was also a significant increase of 204% in the number of self-employed from 2020 (10,252) to
2021 (31,115). Further, the number of wage-employed workers increased by 92% from 16,491 in 2020
to 31,695 in 2021.

On the other hand, the number of unemployed jobseekers also increased by 85% in 2021. New
entrants/fresh graduates have the largest share in the number of unemployed individuals with 48%
or 71,378. 2,823 individuals were also reported to have been terminated/laid off due to calamity in
2021. The number of terminated/laid off (local and overseas) jobseekers increased significantly by an
average of 210% from 2020 to 2021.

▪ Foreign Nationals

The Department of Labor and Employment (DOLE) regulates the employment of foreign nationals in
the country through the DOLE Department Order No. 221-21 or the Revised Rules and Regulations for
the Issuance of Employment Permits to Foreign Nationals. DOLE Region III is the second highest in
terms of Alien Employment Permit (AEP) issuance in the country after DOLE NCR.

Foreign Nationals Issued with AEP in Central Luzon,


2019 to 2021
Province 2019 2020 2021
Aurora 0 0 0
Bataan 3,559 1,086 819
Bulacan 192 166 301
Nueva Ecija 30 5 5
Pampanga 4,783 5,207 3,208
Tarlac 86 48 80
Zambales 3,753 1,424 766
Total 12,403 7,936 5,179
Source: DOLE Region III

For the year 2019-2021, DOLE Region III issued 25,518 AEPs, wherein Pampanga had the highest
number of foreign nationals issued with AEP at 13,198 or 51.7%. Majority of the foreign nationals in
Pampanga were employed inside the Clark Freeport Zone. It was then followed by the province of
Zambales with 5,943 foreign nationals or 23.3% and Bataan with 5,464 foreigners or 21.4%, where the
bulk of the foreign workers was hired by locators inside the Subic Bay Freeport Zone and the Freeport
Area of Bataan, respectively.

In 2020 and 2021, a significant decrease in the issuance of AEP was observed due to the COVID-19
pandemic. When the global pandemic hit, the labor market bore the domino effect of disrupted
operations and business closures. These results were expected given that the health crisis has crippled
most of the country’s economic activities. Numerous establishments resorted to permanent closure
or retrenchment where thousands of workers, local and foreign nationals, were affected.

On the other hand, foreign nationals employed in the region are predominantly male. Chinese,
Korean, and Taiwanese are the top nationalities of foreign nationals. In 2021, Customer Service

JobsFit Labor Market Information Report – Region III | 13


Representative was the top occupation filled up by foreign nationals with 2,043 or 39.4% of the total
foreign workers issued with AEP in Region III.

Top 5 Positions of Foreign Nationals issued with AEP in Central Luzon,


2021
Number of Foreign
Rank Position
Nationals issued with AEP
1 Customer Service Representative 2,043
2 Technical Staff/Consultant 151
3 General Manager 93
4 Technician 76
5 Production Trainer 74
Source: DOLE Region III

▪ Labor Supply Outlook

Central Luzon is among the country’s premier labor markets. The region houses a large and growing
young population and a vital demographic advantage that can be leveraged with proper investments
in education and infrastructure.

The data in the 2021 Annual Labor Market Statistics published by the Philippine Statistics Authority
shows that Central Luzon accounts for the 3rd largest share in the labor force at 11 percent. Currently,
about 5.18 million people out of the 8.79 million – aged 15 years and above – are in the labor force.
This is approximately 59 percent labor force participation rate.

Registered Professionals

The country’s professional sector continued to grow over the years and proved the significant role of
the Filipino professionals in nation-building and economic competitiveness. Out of the 3.02 million
active registered professionals in the Philippines from January 2019 to May 2022, 6.10 percent or
184,323 belong in Central Luzon. These professions and the number of their registered members are
as follows:

Active Registered Professionals in Central Luzon,


January 2019 to May 2022
Number of Registered
Profession
Professionals
1 Professional Teacher 80,044
2 Nurse 35,400
3 Civil Engineer 8,715
4 Criminologist 8,323
5 Physician 6,079
6 Certified Public Accountant 5,452
7 Medical Technologist 4,455

JobsFit Labor Market Information Report – Region III | 14


8 Pharmacist 4,158
9 Midwife 3,772
10 Mechanical Engineer 3,150
11 Architect 2,844
12 Registered Electrical Engineer 2,796
13 Dentist 2,080
14 Electronics Engineer 1,493
15 Psychometrician 1,348
16 Social Worker 1,224
17 Radiologic Technologist 1,117
18 Agriculturist 1,048
19 Real Estate Broker 884
20 Registered Master Electrician 866
21 Veterinarian 741
22 Physical Therapist 726
23 Master Plumber 628
24 Chemical Engineer 588
25 Electronics Technician 484
26 Customs Broker 466
27 Agricultural and Biosystems Engineer 451
28 Librarian 421
29 Nutritionist Dietician 409
30 Optometrist 393
31 Real Estate Appraiser 322
32 X-Ray Technologist 315
33 Chemist 312
34 Chemical Technician 309
35 Respiratory Therapist 290
36 Geodetic Engineer 276
37 Forester 274
38 Guidance Counselor 185
39 Aeronautical Engineer 171
40 Fisheries Technologist 155
41 Environmental Planner 147
42 Occupational Therapist 142
43 Professional Mechanical Engineer 133
44 Professional Electrical Engineer 110
45 Sanitary Engineer 95
46 Medical Laboratory Technician 84
47 Psychologist 82
48 Geologist 70
49 Professional Electronics Engineer 65
50 Dental Technologist 51

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51 Mining Engineer 49
52 Interior Designer 46
53 Landscape Architect 24
54 Naval Architect 24
55 Metallurgical Engineer 13
56 Real Estate Consultant 11
57 Dental Hygienist 7
58 Certified Plant Mechanic 5
59 Metallurgical Plant Foreman 1
Total 184,323
Source: Professional Regulation Commission Region III

From January 2019 to May 2022, professional teachers have the highest share with 43 percent
(80,044), followed by nurses with 19 percent (35,400) and civil engineers with 5 percent (8,715) from
the total number of active registered professionals in Central Luzon.

Higher Education Graduates

Based on the administrative data of the Commission on Higher Education (CHED) Region III, there were
20,846 college graduates added to the labor force in 2021. Majority of the higher education graduates
for Academic Year 2020-2021 are graduates of Business and Management Education (28%) followed
by Teacher Education (18%) and Information Technology Education (16%).

Higher Education Graduates by Discipline Group in Central Luzon,


A.Y. 2020-2021

Business and Management Education 5,921


Teacher Education 3,696
Information Technology Education 3,344
Architecture, Aviation, and Engineering 3,006
Criminal Justice Education 1,537
Allied Health Education 1,022
Humanities, Social Sciences, and Communication 973
Agriculture 655
Maritime Education 528
Sciences and Mathematics 103
Law 61

0 1,000 2,000 3,000 4,000 5,000 6,000

Source: Commission on Higher Education Region III

Meanwhile, there were 375,776 enrollees in the tertiary level for the academic year 2021-2022 in
Central Luzon. The most in-demand or top three discipline groups preferred by the enrollees were

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courses related to Business and Management Education (33% or 125,197), Teacher Education (19% or
70,551), and Information Technology Education (11% or 40,485).

Enrollment by Discipline Group in Central Luzon,


A.Y. 2021-2022

Business and Management Education 125,197


Teacher Education 70,551
Information Technology Education 40,485
Architecture, Aviation, and Engineering 38,355
Criminal Justice Education 30,648
Allied Health Education 21,401
Humanities, Social Sciences, and Communication 20,217
Agriculture 15,481
Maritime Education 7,904
Sciences and Mathematics 4,971
Law 566

0 20000 40000 60000 80000 100000 120000 140000

Source: Commission on Higher Education Region III

CHED Region III also provided a projection of 60,993 higher education graduates for A.Y. 2024-2025
wherein Business and Management Education, Teacher Education, and Architecture, Aviation, and
Engineering discipline groups will produce the most number of graduates in Central Luzon.

Technical and Vocational Education and Training (TVET)

The rapid development in the Industry 4.0 era requires TVET graduates to have high capabilities and
competitiveness in an effort to find work and maintain jobs in the global industrial market. In this
regard, the Technical Education and Skills Development Authority (TESDA) provides education and
training to individuals to develop their “work readiness” in terms of knowledge, skills, attitudes, and
competencies.

Based on TESDA Region III’s data, Central Luzon has 395,053 TVET graduates from 2019 to 2021. The
top 3 performing sectors are Tourism (Hotel and Restaurant) (22%), Social, Community Development,
and Other Services (13%), and Metals and Engineering (8%); while Construction obtained the lowest
training output. It is noted that Region III has the highest number of TVET graduates in the Philippines
in 2021.

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TVET Graduates by Industry Sector in Central Luzon,
2019 to 2021

Tourism (Hotel and Restaurant) 85,597

Social, Community Development, and Other Services 51,533

Metals and Engineering 31,943

Agriculture, Forestry, and Fishery 25,907

Human Health/Health Care 25,636

Electrical and Electronics 25,361

Information and Communication Technology 16,713

Processed Food & Beverages 16,696

Automotive and Land Transportation 16,439

Construction 14,055

0 15,000 30,000 45,000 60,000 75,000 90,000

Source: Technical Education and Skills Development Authority Region III

TESDA started the implementation of the “Area-based and Demand-driven (ABDD) TVET” approach
program to respond to the critical needs defined by the industries and employers to produce correctly
skilled workers in a specific area or locality. This approach will reimagine and rethink the technical-
vocational education that will lead to systematic reforms toward inclusive and resilient Philippine TVET
to address skills mismatch.

Based on the results of the Technical Working Group (TWG) session conducted by Bayan Academy, in
partnership with TESDA and through the support of J.P. Morgan Chase Foundation, the Construction
and Manufacturing sectors were identified as the priority sectors to be provided with TVET programs
in Central Luzon.

Basic Education

The Department of Education (DepEd) Region III also provided necessary information on the number
of Senior High School graduates for A.Y. 2021-2022 by Track who will eventually join the pool of
potential supply of labor in the years to come. Out of the 177,765 graduates, the Academic Track has
been noted to have the highest number of enrollees at 130,220 (73.26%), followed by the Technical-
Vocational-Livelihood Track at 47,148 (26.52%). Only 289 or 0.16% graduated under the Arts and
Design Track and 108 or 0.06% of the Sports Track graduates.

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Graduates of Senior High School in Central Luzon,
A.Y. 2021-2022
108 289

Academic Track
47,148

Technical-Vocational-Livelihood (TVL)
Track
Sports Track

Arts and Design Track


130,220

Source: Department of Education Region III

D. LABOR DEMAND

▪ Employment Growth by Industry

2019 61.8 25.3 12.9

2020 61.4 24.4 14.2

Services Industry Agriculture

Source: Philippine Statistics Authority Region III

The Services sector continued its dominance over the other sectors having the largest share of
employed persons at 61.8 percent or 2.85 million workers in 2019 and 61.4 percent or 2.61 million
workers in 2020. The Industry and the Agriculture sectors contributed 25.3 percent (1.17 million
workers) and 12.9 percent (592,000 workers) respective share of the 4.61 million employed
population in 2019. Meanwhile, in 2020, the Industry and Agriculture sectors accounted for 24.2

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percent (1.03 million workers) and 14.2 percent (603,000 workers), of the 4.24 million employed
persons.

The number of employed persons in 2020 is lower compared to 2019 because of the effect of various
community quarantine restrictions, business closures, retrenchments, and physical distancing
measures that were put in place in the region amidst the COVID-19 pandemic. However, Central
Luzon’s labor market improved in 2021. As the economy was slowly reopened, more businesses are
picking up and more Filipinos were able to rejoin the labor force, as indicated by the improved
employment rate and lower unemployment rate.

Employed Persons by Major Industry Group in Central Luzon, 2019 and 2020
Major Industry Group 2019 2020
Agriculture 592,000 603,000
Agriculture, Hunting, and Forestry 508,000 548,000
Fishing and Aquaculture 84,000 55,000
Industry 1,166,000 1,033,000
Mining and Quarrying 16,000 11,000
Manufacturing 562,000 495,000
Electricity, Gas, Steam, and Air Conditioning Supply 17,000 10,000
Water Supply; Sewerage, Waste Management and Remediation Activities 7,000 6,000
Construction 564,000 511,000
Services 2,848,000 2,606,000
Wholesale and Retail; Repair of Motor Vehicles and Motorcycles 996,000 966,000
Transportation and Storage 443,000 370,000
Accommodation and Food Services Activities 234,000 182,000
Information and Communication 59,000 49,000
Financial Insurance Activities 65,000 63,000
Real Estate Activities 19,000 21,000
Professional, Scientific, and Technical Activities 37,000 34,000
Administrative and Support Service Activities 172,000 181,000
Public Administration and Defense; Compulsory Social Services 233,000 203,000
Education 149,000 154,000
Human Health and Social Work Activities 66,000 53,000
Arts, Entertainment, and Recreation 73,000 44,000
Other Service Activities 304,000 288,000
Total 4,606,000 4,244,000
Source: Philippine Statistics Authority Region III

In 2020, the number of employed persons in the Agriculture sector increased by 11,000 or 1.86
percent. This is the only sector that resulted in positive growth in Central Luzon. Meanwhile, the
employed persons in the Industry and Services sector declined by 11.41 percent or 133,000 workers
and 8.50 percent or 242,000 workers, respectively. Due to the effects of the COVID-19 pandemic,
there were only four (4) industries that grew in terms of the number of workers which were (i) Real
Estate Activities, (ii) Agriculture, Hunting, and Forestry, (iii) Administrative and Support Service

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Activities, and (iv) Education. On the other hand, the following five (5) industries resulted in a massive
decline in terms of employment rate: (i) Electricity, Gas, Steam, and Air Conditioning Supply, (ii) Arts,
Entertainment, and Recreation, (iii) Fishing and Aquaculture, (iv) Mining and Quarrying, and (v)
Accommodation and Food Services Activities.

Similar to 2019, the following industries remained the top employment hub in the region in 2020: (i)
Wholesale and Retail; Repair of Motor Vehicles and Motorcycles, (ii) Agriculture, Hunting, and
Forestry, (iii) Construction, (iv) Manufacturing, and (v) Transportation and Storage. These industries
are projected to be the main drivers of the economy of Central Luzon for the next three to five years
and would result in employment generation.

▪ Key Employment Generators and their Employment Share

The figure below shows the list of the Key Employment Generators (KEGs) in Central Luzon for the
next three (3) years. The KEGs refer to major industry groups with the greatest potential to generate
employment and absorb the bulk of the workforce in the years to come.

Key Employment Generators, Central Luzon:


2022-2025

Construction

Manufacturing

Agribusiness

Hotel, Restaurant, and Tourism

Wholesale and Retail Trade

IT-BPM

Transportation and Storage

Construction

Despite the effects of the pandemic, 2022 and the coming years would be a good term for the region’s
economy due to the continuous implementation of massive infrastructure projects. The big ticket
projects in the region under the government’s “Build, Build, Build” program are seen to help reverse
the effect of the pandemic. Infrastructure and development of industries are to be accelerated
yielding robust growth across the archipelago, creating jobs, and uplifting the lives of Filipinos.

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Some of these projects include the new passenger terminal building at the Clark International Airport,
Metro Rail Transit (MRT) 7, Central Luzon Link Expressway Phase I and II, the Philippine National Rail
(PNR) North 1 and 2 project from Tutuban to Malolos City, Bulacan and then to Clark in Pampanga,
New Manila International Airport (Bulacan Airport), Bataan-Cavite Interlink Bridge, New Clark City
National Government Administrative Center, and the Central Luzon Link Expressway (CLLEX). Once the
“Build, Build, Build” projects are completed, additional jobs and investors in the region are expected.
These infrastructure projects will give a multiplier effect that could help stimulate the economy of
Central Luzon.

Manufacturing

The manufacturing industry in Central Luzon remains to be one of the important sectors for long-term
productive employment, value-added generation, and innovation. It has the highest multiplier effect
to the economy compared to other sectors. Many services exist because of manufacturing, and many
service jobs will disappear if manufacturing disappears.

The manufacturing industry in Central Luzon is flourishing not only in the region’s economic zones,
but also in the other parts of the region. Aside from the Clark and Subic Bay Freeport Zones and the
Freeport Area of Bataan, there are also manufacturing companies located in the provinces of Bulacan,
Nueva Ecija, Pampanga, and Tarlac. Moreover, since the economy is moving towards industrialization,
numerous manufacturing corporations are relocating to Central Luzon for cheaper wages and ease of
access to Metro Manila.

Manufacturing creates more quality and gainful employment, as it has extensive linkages not only
among its sub-sectors but also with other industries, not to mention that it can further make the
services and logistics sectors more active. Increasing manufacturing activities also have spillover
effects of inducing additional demand from the agriculture and resource-based industries.

Agribusiness

Central Luzon has a total land area of about 2.13 million hectares; some 1.11 million hectares (51.9
percent) are Alienable and Disposable lands while the remaining 1.02 million hectares (49.1 percent)
are forest and unclassified lands of the public domain. An estimated 434.3 thousand hectares have
been set aside for agri-industrialization and food security purposes based on the Strategic Agriculture
and Fisheries Development Zones (SAFDZs) of the Bureau of Soils and Water Management (BSWM) of
the Department of Agriculture. (Source: Central Luzon Regional Development Plan, 2017-2022).

It is the largest contiguous central plain in the country and the region is traditionally known as the
Central Plains and Rice Granary of the Philippines. Rice is the main product produced along with
vegetables, poultry and livestock production, and other agricultural-related activities. Given that the
region supplies the food resources of the whole country, the government aims to reinforce rural
development and create sustainable economics by tapping agri-workers and promoting
agripreneurship across the region and the country.

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Hotel, Restaurant, and Tourism

Central Luzon is endowed with strategic ports and adequate connectivity such as the Clark
International Airport, the Subic Bay Port, and major expressways, among others. Moreover, this
industry is likely to flourish once the construction of the Clark Internal Airport’s new passenger
terminal and the New Manila International Airport (Bulacan Airport) is completed. Once the Clark
International Airport’s new passenger terminal is operational, the airport’s passenger volume will be
tripled from the current 4.2 million to 12.2 million. Meanwhile, the New Manila International Airport
will have a capacity of 200 million passengers per year when fully built. More flights to Clark and
Bulacan will essentially produce a ripple effect that will gradually boost economic activities, including
transportation, food and accommodation, and other businesses down the line.

The region is also a major tourism hub in the country boasting several natural and man-made sites
and attractions. In 2019, Central Luzon received more than 4 million foreign and domestic travelers in
accommodation establishments – one of the highest in the country. Consequently, accommodation
and food service activities comprised more than 2 percent of the region’s total economic output in
the same year.

With the easing of the pandemic restrictions and the gradual reopening of the economy, the industry
is poised to recoup to its pre-pandemic level and become a major source of employment in the region.

Wholesale and Retail Trade

Wholesale and Retail Trade remained on the list of Key Employment Generators in Central Luzon due
to the increase of businesses in this industry. About half of all the business establishments in the region
still belong to the Wholesale and Retail Trade category. Central Luzon posted the third highest number
of enterprises in the country based on the PSA List. The Department of Trade and Industry (DTI) still
expects a rise in the number of establishments in the coming years as the construction industry is
expected to continue to grow. DTI reported that it has assisted more than 50,000 establishments in
the years 2019 and 2020 and provided services such as business advisory, trade fair assistance, export
assistance, Shared Service Facility provision, product development, mentoring, financial linkage,
market matching, training, and other capacity building programs and types of assistance.

Information Technology and Business Process Management (IT-BPM)

The Business Process Outsourcing industry is one of the biggest contributors in terms of employment
in the region. It is steadily becoming a major employment generator that provides for middle-class
jobs. This started about a decade ago and has diversified into a multi-function operation that does not
only cater to customer care centers (call centers) but also accounting, marketing, and other
administrative/clerical work. As reported in the IT-Business Process Association of the Philippines’
(IBPAP’s) Accelerate PH: Future-Ready Roadmap 2022, nine (9) cities in the Philippines (i.e. Manila;
Cebu City; Davao City; Sta. Rosa, Laguna; Bacolod City; Iloilo City; Dumaguete; Baguio City; and Clark)
will continue to draw large IT-BPM service providers globally with its respective expanding domestic
markets.

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Information Technology is also on the list due to the increasing demand in the field of ICT, wherein
transactions are converted online and demand on online data generated systems, web-based
information and applications, telecommunication upgrading, and multi-media products, automated
business processes, among others, are significantly growing. As a result, most companies will employ
individuals with strong digital and technical skills.

Transportation and Storage

There is also headway in the transport and logistics sector in Central Luzon. In recent years, Subic has
emerged as the key logistics hub for North and Central Luzon Industries. Traditionally, free port zones
only serve as storage for goods in transit. Now, the operations of free port zones include the complete
conduct of trade and business in and out of the country. Subic’s facilities are the most advanced in the
country. The logistic solutions available in Subic parallel those offered by the best known and biggest
free ports like those located in Geneva and Singapore as reported by the Subic Bay Metropolitan
Authority (SBMA). This presents a potential to attract more investments from small, medium, and
large-scale industries.

In addition, the delivery and logistics support industry is thriving in Central Luzon. Given that the
COVID-19 pandemic has forced the application of new economic and social regulations, the region’s
logistics and warehousing market’s role as a service provider has come to be acknowledged as a crucial
and necessary industry in this time and in the coming years.

The E-Commerce business has been expanding significantly over the last two years and the pandemic
has only made it stronger. To maintain operations or keep their takeout and delivery business to a
minimum in conformity with quarantine restrictions, retailers and business owners carefully shift their
market online. People prefer to shop on online shopping sites to avoid being exposed to a lot of people
as they continue to adopt social distancing and work from home. As a result of the growth of e-
commerce businesses, the logistics sector has grown more competitive. As more companies enter the
logistics business to meet the large demand and assist those who have been displaced with finding
work, innovations and initiatives in e-commerce logistics are becoming increasingly prevalent.

E. REGIONAL ECONOMIC/WORKFORCE DEVELOPMENT PLAN

The Central Luzon Regional Development Plan (CL-RDP) 2017-2022 is geared toward the country’s
long-term vision for 2040 of a “Matatag, Maginhawa, at Panatag na Buhay”. The CL-RDP is a
translation of the thrusts and priorities of the Philippine Development Plan. It is the regional blueprint
that will guide development partners pursuing the development agenda of the current administration,
to achieve the goal of having inclusive growth, a high trust society, and a competitive knowledge
economy by 2022.

The past six years (2017-2022) saw a robust overall regional economic performance for Central Luzon.
The region’s labor market thrived because of the opening and growth of different business
opportunities and investments that produced employment to the citizens of the region, as well as of
the other regions.

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However, the year 2020 is no doubt the most challenging in modern times due to the COVID-19
pandemic which brought the daily grind to a halt and caused many changes to the lives of most people.
The implementation of the quarantine measures to curb the spread of COVID-19 caused adverse
effects on regional economic activities. Many businesses have been forced to reduce operations or
shut down which resulted in the loss of jobs for many residents.

Nevertheless, labor market indicators have started to show signs of recovery after the gradual opening
of the economy from the 2nd semester of 2020. As Central Luzon envisions the opportunities and
potentials for its economic growth as well as challenges and gaps that need to be addressed about the
supply and demand for skills of priority industries, Region 3 shall be able to sustain its shares in the
national economic growth.

Even more, the role of Central Luzon in national development is further cemented as major support
infrastructures including the Central Luzon Link Expressway, New Clark Passenger Terminal Building
Phase I, PNR North 1 and 2 which will connect the National Capital Region with the Clark International
Airport, and the New Clark City National Government Administrative Center, among others, are
ongoing. With all the significant programs across various development sectors in place, these will
surely create additional jobs and investments in the region.

The full realization of the long-term vision will be supported by strategies to (i) enhance the social
fabric, (ii) reduce inequality in economic development opportunities, (iii) increase potential growth,
(iv) create an enabling and supportive economic environment, and (v) build foundations for inclusive
and sustainable development.

Central Luzon established an improved performance in terms of its Gross Regional Domestic Product
(GRDP) with 7.4 percent in 2021 compared with the -13.9 percent in the previous year. The region
remains to be the third biggest contributor to the national economy. Economic growth is poised to
maintain its full strength and fast pace as the basic sectors of the region show potential for higher
productivity levels. The region’s economic growth underscores its capacity to create jobs and alleviate
poverty.

Central Luzon’s vision (as stated in the Regional Physical Framework Plan) is “To have globally
competitive human resources, a highly productive and profitable agricultural sector, seamless and
integrated physical access, and a transshipment and logistics hub in the Asia-Pacific Region.”

The Central Luzon Regional Development Plan (CL-RDP) 2023-2028 is currently being updated by the
National Economic Development Authority (NEDA) Region III and is targeted to be published by the 1st
Semester of 2023.

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CHAPTER 2: LABOR MARKET OUTLOOK

A. INDUSTRY OUTLOOK

The start of the pandemic in the year 2020 has a great effect on the growth of the industries in the
country. It created a high uncertainty outlook for the labor market and accelerated the emergence of
the future of work. Different work arrangements were imposed and a significant change in the
industrial vista was exacted resulting in the vulnerability of the labor market.

Jobs held by minimum wage earners, women, and new entrants to the labor force were deeply
impacted. In 2020, the number of reported workers retrenched is at 33,384 from 1,741
establishments in the region. This number of establishments went even higher in 2021 at 1,958 which
retrenched some 29,679 workers.

Today, in the midst of every effort to attain economic recovery, industries struggle to jug between
business recuperation and market profitability. Strengthening the labor market has been one of the
key factors to achieve economic stability. Developing and enhancing human skills and capabilities
through education/training, learning, and meaningful work will push us further in our goal of economic
recovery. In doing so, revitalizing industries should be one of the driving forces for government leaders
in reaching economic recovery.

Central Luzon has been one of the major contributors to the country’s Gross Domestic Product (GDP)
according to the Philippine Statistics Authority (PSA). Posted at 11 percent, it is one of the largest
contributors to the 5.7 percent economic growth in the country, with 0.8 percentage point according
to the Philippine Statistics Authority (PSA). It ranks 3rd in the national GDP behind NCR (32%) and
CALABARZON (15%).

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The Industry sector accounted for 42.2 percent of the region’s total economy in 2021. This is behind
the Services sector which reported 46.0 percent. The Agriculture, Forestry, and Fishing sector
accounted the least with 11.8 percent.

Manufacturing industry has the most share in the 2021 GRDP among the industries in the Region. It
posted 27.8 percent and is seen to continue to be a major contributor in the next three years. Many
of the manufacturing companies in Central Luzon thrived during the pandemic and are now almost
back to their pre-pandemic production. Most of these manufacturing companies are situated inside
the industrial zones in Pampanga, Bulacan, Bataan, Zambales, and Tarlac. During the Focus Group
Discussion (FGD) held by DOLE Region III, where the representatives from the Clark Development
Corporation (CDC), Subic Bay Freeport Zone (SBFZ), and Freeport Area of Bataan (FAB) were present,
it was stated that the manufacturing companies are back at 90-100 percent workforce capacity.

The Construction industry and Electricity, Steam, Water, and Waste Management displayed a more
stable 11 percent and 3.1 percent, respectively, in Central Luzon’s GDP. While it is true that even
workers from these industries were also affected by the pandemic, they were also one of the first to
recover. The Mining and Quarrying industry is at 0.3 percent. This industry was severely affected until
this year, mining companies in Zambales are yet to operate fully.

B. EMERGING INDUSTRIES

Technology and globalization have brought profound transformations to industries in this period.
Industries continue to develop and competition has increased as the economy continues to recover
from the pandemic.

Central Luzon is considered as a manufacturing and logistics hub, according to the Department of
Trade and Industry. It has the most number of provinces with plenty of growth opportunities.
Investment pledges have surged by more than 300 percent in the second quarter of 2022 compared
to the previous year. It is also the most favored investment destination in the country for the same
quarter this year with a total of PhP52.2 billion approved foreign investment. This posted a 52.4
percent share of the country’s total approved investments in the second quarter of the year 2022.

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The figure below shows the Central Luzon Industrial Project 2017-2022 Midterm Update by the NEDA.
This presents the completed, ongoing, and in-the-pipeline projects in the region.

A clear acceleration in the adoption of new technologies among the companies is seen in Central
Luzon. Being eyed as the industrial hub of the country, technology is becoming a mainstay of work
across industries. These new technologies are set to drive future growth and ease of work and new
job roles for employees. During the FGD, the following emerging industries were discussed:

E-Commerce

E-commerce has been one of the emerging industries in the year and the years to come. E-commerce,
simply defined, is commerce conducted through electronic means. Driven by the onset of the
pandemic, it proves to be a new industry set to linger on the Region’s industrial map.

During the pandemic, the Department of Trade and Industry promoted the use of e-commerce to its
Micro, Small, and Medium (MSME) Enterprises as a technical tool in finding resources to help the

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business owners take advantage of this tool to get their business running despite the lockdown. E-
payment and digital marketing were also highlighted to keep the businesses afloat. After the
pandemic, these were still used because they have proven their worth by assisting in business
recovery.

The growth of e-Commerce is hindered by challenges including the Philippines’ continued low rankings
for mobile and fixed broadband internet speeds. In OOKLA’s April 2022 Speedtest Global Index, the
Philippines fixed broadband internet speed was 55.21 Mbps and ranked 59th out of 182 countries,
while mobile internet speed was 19.45 Mbps and ranked 95th out of 141 countries. It was also stated
in the same report that Filipinos prefer cash-on-delivery payments.

Information Technology

The Information Technology (IT) industry also continued to emerge as one of the growing industries
in the Region. According to DTI, one of the investment priority areas in Central Luzon is ICT and BPO/IT-
BPM. The Philippines’ Information Technology and Business Process Management (IT-BPM) sector is
one of the best performing and employment-generating activities in the past years. According to the
website industry.gov.ph/industry/it-bpm, the global foothold of the Philippine IT-BPM industry is
largely attributed to the strong skills of the Philippine labor force. In voice-based services, Filipinos
hold a competitive advantage in English communication skills, strong customer service orientation,
and adaptability to consumers’ Western culture. In non-voice and complex services, the Economist
and Everest Group analysts report the growing number of businesses providing healthcare
information management, human resources management, business intelligence, and offshore
financial consulting in the Philippines.

Courier and Delivery Service

Courier and Delivery Service has also emerged and strengthened its place in the industrial scenario of
the economy. The growth of this industry has been accelerated by the impact of the Covid-19
pandemic. Food delivery continues to soar as restaurants succumb to Third-Party and In-house
delivery.

Third-party delivery continues to grow as its usage increases across the restaurant and retail
industries. In Central Luzon, restaurants and grocery stores are partnering with multiple third party
fleets in order to expand their delivery – a strategy even those with in-house delivery does. Major
third-party delivery companies are expanding not just in the cities but also with the other
municipalities in the region. There are also local third-party delivery companies that thrive in places
not yet reached by the major players. This industry is expected to grow in the next five years.

C. EMERGING JOBS

In three to five years, the table below shows the emerging jobs that will be in demand in Central Luzon,
as reported in the FGD conducted and from the initial survey of pre-determined companies in the
region.

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List of Emerging Jobs in Central Luzon:
2022 to 2025

1 3D Printing Workers 11 Mobile Applications Programmers

2 Ads Manager 12 Online Sellers

3 Artificial Intelligence Developer 13 Reports Developer (Business Intelligence)

Search Engine Optimization (SEO)


4 CCTV Operators 14
Specialist / SEO Engineers

Corporate Communications Handling


5 15 Software Application Developers
Social Media / Social Media Manager

6 Customer Success Engineer 16 Software Engineers

7 Cyber Security Engineer 17 Virtual Assistants

8 Data Science Manager 18 Virtual Nurses

9 Influencers (marketing) 19 Youtubers/Vloggers/Streamers

10 Integrations Analysts 20 Online Teachers/Coaches

The emerging jobs cited during the FGD were those inclined with and using technology. The
accelerated beginning of the Fourth Industrial Revolution has resulted in jobs needed in these
technologies. Artificial Intelligence Developer, Mobile Application Programmers, Software
Developers, and Virtual Assistants are some of the technology-driven jobs emerging as technology
advances.

Social media’s power was also felt widely. Companies are shifting to social media marketing to
introduce their businesses and keep their business afloat. Because of this, jobs such as Ads Manager,
Influencers, and Search Engine Optimization Specialists will emerge as the in-demand jobs in the next
3-5 years. Small and medium enterprises also found the value of the world wide web and it is being
used profoundly.

There are also emerging jobs in the medical industry. Consultations are being done through social
media applications. Virtual nurses are also beginning to take part in the medical industry.

List of Future Jobs in Central Luzon:


2022 to 2025
Industry Future Jobs
Construction Heating, Ventillation, and Air Conditioning (HVAC)
Mechanics and Installers
Tourism Virtual Tour Creator
Transportation and Drone Traffic Controller
Storage

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Information and Digital Marketer
Communication Information Systems Manager
System Analyst
Search Engine Optimization Specialists/Engineer
Digital Marketers
Quality Assurance Tester
Full Stack Developer
Reports Developer (Business Intelligence)

D. PRIORITY SKILLS REQUIREMENT

▪ In-demand Occupations

List of In-demand Jobs in Central Luzon:


2022 to 2025
Call Center Agent/Customer Hotel and Restaurant
1 13
Service Representative workers/staff
Production Operators/Machine Fast Food/Restaurant Supervisor
2 14
Operators/Production Workers and Shift Managers
Skilled Construction
3 15 Farmers
Workers/Laborers
4 Skilled Sewers 16 Quality Assurance Officers
5 Accounting-related Jobs 17 Safety Officers
IT-related Jobs (Programmers,
6 18 Pollution Control Officers
Computer Technician, IT Experts)
7 Office Clerk/Staff 19 Licensed Brokers and Agents
8 Warehouseman/Logistics 20 Teachers
Engineers (Civil, Electrical,
9 21 Shipbuilders and Repairs
Mechanical, Industrial, Chemical)
Healthcare workers (Doctors,
10 22 Cashier
Nurses)
11 Architects 23 Domestic Helpers
12 Drivers/Delivery Riders

In-demand occupations refer to jobs that currently have a high number of positions and are projected
to be posted recurrently. There were twenty-three (23) in-demand jobs identified from the initial
survey and consultation meeting conducted with the PESOs and Private Sectors.

Call Center Agents/Customer Service Representatives topped the in-demand jobs in Central Luzon
followed by Production/Machine Operators and Production Workers, Skilled Construction
Workers/Laborers, Skilled Sewers, Accounting-related Jobs, and IT-related jobs. A huge change can be
seen in the identified in-demand jobs today compared to the ones identified in the last LMI report
which are Civil Engineer, Service Crew, Radiologist, Graphic Artists, and Communication Personnel.

According to PSA RSSO III, Customer Relationship Management Activities is the top industry to
generate employment in Central Luzon. The Philippines currently sits as one of the leading countries
in customer service outsourcing and is recognized as the call center capital of the world due to the

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skills of the Filipinos in speaking the English language and the relatively low cost of service. With the
continuous entry of clients in this industry, it is foreseen to continually generate jobs in the country.

Manufacturer of luggage, handbags, and wallets of leather and imitation leather is also one of the key
employment generators in Central Luzon which equates to high demand for jobs pertaining to the
manufacturing industry such as production/machine operators and production workers.

▪ Hard-to-Fill Occupations

Hard-to-fill Occupations refer to jobs that companies are having difficulty filling. There are several
factors why these positions often take a long time to be filled and sometimes remain unfilled. One is
due to the lack of qualified applicants for the job due to its required skills. The location of the company
and accessibility of public transportation, as well as the work schedule, may also be some of the
factors. Another factor is that possible qualified applicants prefer to seek employment abroad due to
better opportunities and higher salaries.

Thirty-two (32) hard-to-fill jobs were identified from the responses of PESOs and Private Sectors. The
top hard-to-fill job positions are Engineers (Civil, Electrical, Chemical, Mechanical), Accounting-related
Jobs, and Managerial Positions. As seen in the list, most of the hard-to-fill jobs are those which require
a specific educational background and work experience and some require certain seniority in the job
and length of experience in the field of the job vacancy. It is also evident that some in-demand jobs
are hard-to-fill occupations.

List of Hard-to-fill Jobs in Central Luzon:


2022 to 2025
Engineers (Civil, Electrical, Fast Food/Restaurant
1 17
Mechanical, Industrial, Chemical) Supervisory and Shift Managers
2 Accounting-related Jobs 18 Licensed brokers and agents
Skilled Laborers
3 (Welders/Plumbers/Pipe fitter/ 19 Carpenters
Mason)
Skilled Sewers Call Center Agents and Customer
4 20
Service Representatives
5 Managerial Positions 21 Foreman
Medical-related Jobs (Nurses,
Environment Community
6 Med Techs, Radiologic 22
relations assistant
Technologists, Doctors)
7 IT-related Jobs 23 Shipbuilders and repairs
Environmental Officers/
8 Environment Community 24 Teachers/Lecturers
Relations Assistant
9 Safety Officers 25 AutoCAD Operator
10 Production Workers 26 Liaison Officer
Finance Related Jobs (Finance
11 Manager, Finance 27 Agriculturist
Analyst/Finance Adviser)
12 Architects 28 Animator
Heavy Equipment
13 Psychologists 29
Operators/Forklift Operators

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14 Quality Assurance Officers 30 Home Health Aide
Pollution Control Officers Refrigeration and Air
15 31
Conditioning Technician
16 Electrician 32 Geologist

▪ Cross-cutting Occupations

Cross-cutting Occupations are those jobs that exist in more than one industry. Since these jobs are
available across various industries, they are considered in-demand, but hard to fill. In fact, there are
many positions in one company that also exist in other establishments. Most companies from different
industries have the same positions especially when the job is related to administrative, legal, financial,
human resource, etc. However, when it comes to their respective operations, these companies from
various industries differ because of the technicalities of the jobs available in their operations. Thus,
making these jobs from administrative, legal, financial, and human resource cross-cutting occupations.

Furthermore, considering the rapid development of technology and how it affects businesses
nowadays, the economy has been shifting to the digital way of running a business because of some
newly identified ways to compete in the market – low cost and differentiation. The economy is
embracing digitization because of the low cost incurred in the capitalized amount of a company's
product or service due to a faster transaction brought about by the technology. Along with this
development, different jobs were also opened to cater to a faster customer service experience from
different companies and service providers. Hence, making the Customer Service Representative job a
cross-cutting occupation as well.

The data show that Call Center Agent/Customer Service Representative positions are cross-cutting
from one company to another. As stated above, due to the digitization of business processes, the need
for tech-savvy to do this kind of job is increasing across different industries. Meanwhile, administrative
positions like an accountant, admin staff, and human resource are still cross-cutting jobs since they
exist in various industries.

List of Cross-Cutting Occupations in Central Luzon

Industry Occupation
Manufacturing Call center Agent/ Customer
BPO Service Representative
Health Care
Food and Accommodation
Hospitality
Wholesale and Retail Trade
BPO Accountant
Manufacturing
Financial and Insurance
Healthcare
Food and Accommodation
Hospitality
Wholesale and Retail Trade
BPO Administrative Staff
Manufacturing
Financial and Insurance

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Healthcare
Food and Accommodation
Hospitality
Wholesale and Retail Trade
Manufacturing Human Resource Staff
BPO
Wholesale and Retail Trade

▪ Skills Shortage and Surplus

A shortage in skills occurs when hard-to-fill vacancies with few applicants experience deficiency in the
supply of qualified applicants compared to the number of available jobs. The ratio between the supply
shortage of qualified applicants and available jobs provides a good indicator of hiring demand, where
a lower ratio signifies a need for more applicants. In the short and medium-term periods, possibilities
for these occupations are promising, especially to the individuals who take college and technical
courses related to these jobs where firms/companies contend for these types of talents, skills, and
graduates.

List of Occupations with Skills Shortage in Central Luzon

Industry Occupation
Construction, Achitecture, and Skilled Workers (Mason/
Engineering Welders/Plumbers/Pipe
fitter/Foreman)
Engineers
Architect
Human Health Nurse
Radiologic Technologist
Medical workers
Manufacturing Skilled Production Workers
Machine/Equipment Operators
Quality Assurance Officer
IT-BPM Customer Service Representatives
Software Developer and
Programmer
IT technician
Graphic Artist
Digital Marketer

Labor scarcity is one of the trends that the Central Luzon construction sector expects to continue in
the coming years as economic activity picks up. There will still be a shortage of construction manpower
in the country despite the increased demand for labor in this field due to two factors – workers are
leaving the country in search of greener pastures and the projected rebound of the construction sector
in the years to come. Around 800,000 to 1 million skilled workers in the field of construction,
architecture, and engineering are needed up to 2023 to address the labor shortage amid the country’s
construction boom.

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The manufacturing and human health sectors are also experiencing skills and manpower shortages
since workers go to foreign countries that offer higher wages. Moreover, given the accelerated growth
of the region’s and the country’s digital economy, an increase in demand for IT-related jobs will be
seen and the manpower supply will not be enough to meet the demand.

For occupations classified as surplus, most of employers have experience difficulty in the recruitment
process. The number of applicants is significantly greater than the vacancies. Applicants compete for
a few slots but most lack the specific skills set or specializations that correspond to the qualifications
or competencies essential to the job. Most of the occupations in surplus identified in Central Luzon
fall under the Food and Business-related jobs such as waiters, sales assistants, cashier, and office
clerks.

▪ 21st Century Skills

Soft skills are the interpersonal attributes you need to succeed in the workplace. Candidates with
strong soft skills are in high demand for many different types of jobs. The COVID-19 pandemic
challenged employers and employees to suddenly adjust to a new work environment—for example,
social distancing, remote working, and being able to respond quickly to changing needs, and make
smart decisions to keep businesses running. As companies are settling into a “new normal” routine
for doing business, business leaders have a better feel for what skills are crucial to maintaining
operations and staying in business. Many of these skills are related to interpersonal connection,
communications, and informed and confident decision-making. Below are ten high-demand job skills
that employers are looking for in the coming years:

Top 10 Soft Skills/21st Century Skills


Rank Skills
1 Digital/Technical Literacy
2 Oral and Written Communication
3 Flexibility and Adaptability
4 Critical Thinking and Decision Making
5 Planning and Organizing
6 Stress Tolerance
7 Innovation and Creativity
8 Team Player
9 Multi-tasking
10 Occupational Safety and Health

The demand for skills to perform particular jobs has changed along with the development of
technology. The utilization of digitization has become pervasive. Different types of businesses
emerged knowing the new ways to compete in today’s time. The need for human resources to keep
up with the trend in technology, they have to be equipped with skills to keep them afloat.

Of the skills indicated above, having the skills in computer, technology, and all relevant to these, are
highly in–demand in this new era followed by communication and flexibility, critical thinking, and
planning and organizing.

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Required skills have been changing from time to time and some of these skills go out of date due to
technical developments being adopted by various industries, thus, it is imperative for the members of
the labor workforce to keep up with these changes.

E. DIGITAL ECONOMY

Digital economy refers to the use of information technology to create or adapt, market, or consume
goods and services. Digital novelties include digital banking, e-commerce, virtual education,
smartphone apps, and collaboration platforms (Banco Santander, 2022). The transformation brought
about by the digital economy can generate economic value across all the sectors of the economy
including but not limited to manufacturing, education, and retail trade.

Currently, the Philippines is one of the fastest growing digital economies among the ASEAN-member
countries. According to a study conducted by Alphabeta Consultancy Firm, if leveraged fully, digital
transformation can create an impact of up to PHP 5 trillion on our economy by the year 2030
equivalent to 27% of the country’s 2020 GDP. Based on their research, there are currently eight
transformative technologies with strong economic potential which are (1) Mobile Internet, (2) Cloud
Computing), (3) Big Data, (4) Artificial intelligence, (5) Internet of Things, (6) Additive Manufacturing,
(7) Advanced Robotics, and (8) Financial Technology.

As we transition to the digital economy, we can see prevalent opportunities in the Business Process
Outsourcing Industry and e-commerce. Social media platforms are also being utilized by companies,
small or large, which equates to job opportunities. In Central Luzon, several jobs concerning the digital
economy are also available. Among these are the following:

List of Job Vacancies related to Digital Economy in Central Luzon


Logisters Personnel of Online
1 Virtual Assistant 8 Selling Platforms (Sorters,
Packers)
IT Specialist/Programmer/
2 9 Data Analyst
Developer/Software Engineers
Delivery Riders of E-commerce
3 platforms (Lalamove, Grab, 10 Online Tutor/Teacher
Foodpanda, Shopee, Lazada)
4 Digital Marketer 11 Fiber Optic Technician
5 Online Seller 12 CAD Operator
6 Graphic Designer

TESDA in partnership with The Asia Foundation provides free training on digital skills to aid jobseekers
and micro, small, and medium-sized enterprises (MSMEs) by bridging the gap on the inadequacy in
digital literacy skills. The integration of several courses of Go Digital ASEAN includes:

(1) Getting your Business Online - how digital tools can help individuals develop their agri-tourism
enterprise. This class welcomes agri-tourism and non-agri-tourism business ideas.

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(2) Harnessing Social Media to Expand Your Business - focuses on how to better connect with the
customers. This also teaches the essentials of branding and maximizing free tools to create and
manage social media content.

(3) Digital Tools for Jobseekers. - how digital tools can increase chances of landing employment
opportunities. Jobseekers will also learn how to create an effective resume and turn this into an online
professional profile to attract potential employers.

With the break of the COVID-19 pandemic, we saw an increased reliance on digital technology such as
e-commerce and online services. As we transition into the new normal, we continue to rely on and
utilize the digital market.

F. GREEN JOBS

In the aim to combat the adverse effects of global warming and global climate change as well as to
provide employment opportunities to people, providing green jobs has become prominent. According
to ILO, Green Job is defined as decent jobs that contribute to preserve or to restore the environment.
They could be present in traditional sectors such as manufacturing and construction, or in new,
emerging green sectors such as renewable energy and energy efficiency. Such jobs help improve
energy and raw materials efficiency, limit greenhouse gas emissions, minimize waste and pollution,
protect and restore ecosystems, and support adaptation to the effects of climate change

This breakthrough in both economic and environmental perspectives aims to reduce the negative
effects of technology in general. In the paper presented at the University of California, Santa Barbara
by Olivier Deschenes, national investments in green jobs are made for three (3) reasons: first, they
reflect a willingness by Governments to promote the development of less carbon-intensive energy
sources in an effort to cut carbon emissions. Second, there is little doubt that green initiatives have a
clear goal of increasing employment. For instance, employment in industries like construction, and
the need for energy-efficient homes and buildings is anticipated to increase, these policies cause an
increase. Third, the implementation of green policies is anticipated that they will result in ripple
effects, scale economies, and comparative advantage in the creation of green products and services,
as well as the advancement of green technologies.

The table below shows the existing Green Jobs in Central Luzon:

List of Green Jobs in Central Luzon


Environmental, Health, and
1 Environmental Protection Officer 8
Safety Officer
2 Solar Panel Installer 9 Pollution Control Officer
Farmer/Farm Laborer and
3 10 Tourist Guide
Technician
4 Carpenter 11 Park Ranger
5 Civil Engineer 12 Zoo Keeper
6 E-Jeepney Driver 13 Agriculturist
7 Engineer (Renewable Energy) 14 Environmental Planner

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The tripartite partners also identified possible emerging jobs for the next three (3) years which are as
follows:
- Researches regarding sustainability, climate change, environment
- Waste management
- Solar power
- Biofuel
- Manufacturing of organic fertilizer
- Manufacturing of pesticides and insecticides
- Hydroponics, Aquaponics, Aeroponics Technology
- Block Farming

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CHAPTER 3: LABOR MARKET FACILITATION PROGRAMS

A. PUBLIC EMPLOYMENT SERVICES

While it is evident that PESOs have contributed to alleviating the impact of poverty within their
respective jurisdictions through continuous facilitation of local and overseas employment-related
activities and acting as a conduit in the implementation of government initiatives in terms of livelihood
and enterprise development programs to the target beneficiaries, the number of unemployed
individuals brought by job mismatch remains a major concern that must be addressed. This is due to
the persistent number of available manpower supply whose current skills are incompatible with the
job requirements of hiring agencies, the emerging fourth industrial evolution as a result of rapid
technological advancements accompanied by changes in the nature of work, a yearly supply of human
resources intending to join the labor force, and the ever-increasing competition among job seekers.

Since the enactment of Republic Act No. 8759 otherwise known as the Public Employment Service
Office (PESO) Act which institutionalized a National Facilitation Service Network through the
establishment of Public Employment Service Office (PESO) in every province’s key cities and other
strategic areas, PESOs have since acted as an intermediary for employment between those who seek
for both local and overseas job opportunities, and employers seeking for additional means to meet
lacking or deficit manpower resources within their company.

Number of Institutionalized PESOs per Province in Central Luzon


Provinces Number of PESO Number of Institutionalized PESO
Aurora 10 5
Bataan 16 10
Bulacan 30 11
Nueva Ecija 33 12
Pampanga 24 7
Tarlac 20 13
Zambales 16 15
TOTAL 149 73

The table above shows the distribution of Public Employment Service Offices (PESOs) in each province
in Central Luzon as of August 8, 2022, with a total of 149 registries which translates to 7.74% out of
1,926 established PES Offices nationwide. Despite the enactment of Republic Act. No. 8759 otherwise
known as the PESO Act of 1999 which mandates the establishment of PESOS in all capital towns of
provinces, key cities, and other strategic areas, there is still a slow growth in the number of these
offices that are being created due to fact that the original law lacked funding provisions. In an article
released on October 27, 2015, and posted in the government’s official gazette which highlights the
milestone when the amendments to the PESO Act of 1999 were signed into law, it was mentioned
that during the assumption of President Aquino III in 2010 that there were only about 1,756
established PES offices nationwide with only 64 of which were institutionalized. This suggests that
comparing the total number of established PESOs from 2010 to 2022, there are only about 170
additional offices created or a 9.86% increase in the span of 12 years.

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Public Employment Service Offices continue to work in partnership with the Department of Labor and
Employment (DOLE) in its vision for the Filipinos of attaining full, decent, and productive employment.
With the country’s economic activities slowly becoming more mobilized and returning to their pre-
pandemic state, PESOs continue to work collaboratively with DOLE through its regional and provincial
offices to make the national government agency’s employment and livelihood-related programs more
accessible to the target beneficiaries. This in turn allows PESOs to work not only beyond their mandate
but also to maximize their full capacity conducive toward the attainment of the national goals on
poverty reduction through employment facilitation.

Referral and placement. PESOs remain to be effective partners of both public and private institutions
when it comes to sourcing manpower resources that would complement the vacancies existing among
the institutions operating within their jurisdiction. One of the notable best practices exercised by these
PESOs includes the collection of resumes of aspiring applicants who cannot directly manifest their
intent to apply to companies where there are vacancies due to social related restrictions because of
the COVID-19 Pandemic. PESOs would gather the copies of applicants’ resumes, sort them out, and
personally submits them to companies whose vacancies’ competency requirements matches with
those of the applicants’ resumes at hand.

Job Fair/LRA/SRA. To provide more employment opportunities for aspiring jobseekers and to allow
these aspirants to have access to multiple job vacancies to choose from, PESOs collaborate with
various companies to source out vacancies and conduct job fairs such as Local and Overseas
Recruitment as well Special Recruitment Activities. These activities also help facilitate the generation
of Labor Market Information relative to the general profile of unemployed individuals.

Career and Employment Coaching. PESOs also assist newly graduated college and senior high school
students, and even those who graduated from vocational courses through the conduct of pre-
employment preparatory seminars like Career and Employment Coaching. Through these activities,
graduates who are planning to join the labor force will have the necessary knowledge that will help
them decide on which career will suit them based on their academic backgrounds, pre-existing skills,
and abilities.

Livelihood and Skills Training. Consistent with the country’s national economic recovery strategy,
PESOs have since been working closely with the Department of Labor and Employment by acting as
one of the national government agency’s implementing arms on its emergency employment and
livelihood programs at the local level together with the city, provincial and/or municipal local chief
executives. Those who underwent skills trainings are being given cash assistance in the form of goods
such as raw materials or starter kits in support of establishing their livelihood projects. PESOs
consistently coordinate with training providers such as TESDA and DTI to further develop and enhance
the skills of livelihood beneficiaries to meet the changing needs of target customers of livelihood
beneficiaries.

PESOs also support the promotion of equal employment opportunity by collaborating with various
National Government Agencies (NGAs) such as DTI and TESDA, as well as Non-Government
Organizations (NGOs) which conducts skills trainings specifically for Persons with Disability (PWDs)

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and Women. These trainings help PWDs gain needed knowledge and skills that will help them gain
employment in different industries depending on their capabilities. This also empowers PWDs and
women and increases their competencies, and likelihood to be hired for employment. Through PESOs,
Local Government Units serve as the avenue in encouraging employers to hire PWDs such that at least
1% of their workforce would be from PWDs.

In terms of the interventions that are being undertaken in order to improve the likelihood of matching
the labor supply with that of the demand, PESOs prioritize the promotion of conduct of skills training
which will help boost wage employment as well as self-employment. These skills training involves
upskilling to enhance one’s present skills, as well as infusion of other skills that are currently in
demand, which in turn increases the chance of the jobseeker’s employability.

In the News release of the Department of Labor and Employment Central Office dated October 10,
2019, former Labor Secretary Silvestre Bello encourages Local Government Units to institutionalize
PESOs as it is part of the mandates of the amended PESO Law and that institutionalization of these
offices will help ensure continued operation and sustainability of the program that is being
implemented. The institutionalization of PESOs will enable the office to promote full employment and
equality of employment opportunities at the grassroots level.

B. OFW REINTEGRATION

Our Overseas Filipino Workers (OFW) are considered modern-day heroes because of their
contribution to the economic growth of the country through their remittances. According to the
Bangko Sentral ng Pilipinas (BSP), for the first half of 2022, personal remittances went up by 2.8
percent to $17.09 billion from $16.62 billion in the same period last year. Moreover, the noble
sacrifices made by our OFWs to provide for their families are in itself commendable.

NUMBER OF RECORDED
OFWS FROM REGION 3
ZAMBALES, AURORA,
61,771, 10,565,
7% 1%
TARLAC, BATAAN,
112,037, 83,678,
12% 9%

BULACAN,
PAMPANGA, 256,925,
238,729, 28%
NUEVA
26% ECIJA,
162,493,
TOTAL: 926,198 17%

Source: Overseas Workers Welfare Administration Region III

According to the Overseas Workers Welfare Administration (OWWA), there are almost a million OFWs
employed in different countries as of August 30, 2022 in Central Luzon. Bulacan has the highest
percentage of OFWs in the region at 28%, followed by Pampanga with 26%. Even though Bulacan and

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Pampanga had the highest total employment in the region in 2021, many Filipinos from these
provinces still choose to leave the country and find work abroad.

However, in these past few years especially during the outbreak of the COVID-19 pandemic, the
number of displaced OFWs increased as well as those seeking assistance. In the region, the Overseas
Workers Welfare Administration (OWWA) and the National Reintegration Center for OFWs (NRCO)
assist in the reintegration of OFWs in our country. They have several programs to help returning OFWs
make a decent living in the motherland rather than returning abroad.

Upon the return of the OFW, OWWA offers the following livelihood training and programs for the
OFWs’ reintegration:

Balik Pinas! Balik Hanapbuhay! Program (BPBH) – It is a Livelihood Financial Assistance Program
designed to provide immediate relief to Distressed OFWs who have not completed their contract or
have experienced a distressful situation while working abroad. The program can also only be availed
within three years from the date of the OFW’s arrival. Furthermore, the maximum amount of cash aid
available to approved applicants is determined by their OWWA membership status. The returning
OFW could receive Php20,000.00 if they are an active OWWA member. On the other hand, they could
receive Php10,000.00 or Php5,000.00 for inactive OWWA members who has 2 or more membership
or 1 membership record respectively.

Number of Balik Pinas! Balik Hanapbuhay! Program


Beneficiaries from 2019 – 2021 in Region 3
1000 915 944
900 812
800
700 667
588
600
500 420
407
400 356 346
278253
300 216 217
200 162
121 112
85 61 89
100 24 51
0
AURORA BATAAN BULACAN NUEVA ECIJA PAMPANGA TARLAC ZAMBALES

2019 2020 2021

Source: Overseas Workers Welfare Administration Region III

From 2019 to 2021, Bulacan has the greatest number of BPBH Program beneficiaries with a total of
1,938 beneficiaries, followed by Pampanga with 1,878 beneficiaries. Among the total beneficiaries,
54% come from the aforementioned provinces, which also hold the highest number of recorded OFWs
in the region. As a result, it stands to reason that they have more beneficiaries than the other
provinces.

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Enterprise Development and Loan Program (EDLP) – OFW-EDLP is an enterprise development
intervention and loan facility of OWWA, in partnership with Land Bank of the Philippines (LBP) and the
Development Bank of the Philippines (DBP), intended to support enterprise development among
OFWs and their families. The minimum loan amount for individual loan borrowers (single
proprietorship) is Php 100,000.00 while the maximum is Php 2,000,000.00. Meanwhile, for group loan
borrowers (partnerships, corporations, cooperatives), the minimum loan amount is also Php
100,000.00 while the maximum is Php 5,000,000.00. The interest rate per year is 7.5%. This program
can be availed by active or non-active OWWA members within three years upon their arrival in the
country and has completed the Enhanced Entrepreneurial Development Training (EEDT).

Moreover, the National Reintegration Center for OFWs (NRCO) facilitates OFWs’ reintegration into
Philippine society, serves as a promotion house for their local employment, and taps their skills and
potentials for national development. Listed below are the reintegration programs they offer in the
region:

Balik Pinay! Balik Hanapbuhay! Program – This program was established in 2011 to assist women
OFW returnees in starting and operating self-employment ventures. The eligible beneficiaries of the
program are returning women OFWs, prioritizing those who are displaced by the hostilities and
conflicts in their host country, or victims of illegal recruitment and trafficking as well as other
distressed and displaced women household service workers. All those who would avail are required
to undergo skills training of their preferred choice in preparation for the business enterprise start-up
kit that they will receive. The beneficiaries shall receive an amount of Php10,000.00. In the region,
they were able to serve 359 beneficiaries from 2019 to 2021.

Livelihood Development Assistance Program (LDAP) – The Livelihood Development Assistance


Program (LDAP) has been reformulated in 2014 to accommodate undocumented OFWs. It was first
established in 2011 as 10K Livelihood Assistance Program under Administrative Order No. 77 Series of
2011, which aims to provide grants for livelihood assistance to returning OFWs. Beneficiaries will
receive a business enterprise start-up kit worth Php 10,00.00, which will include the materials of their
proposed business. All LDAP beneficiaries are required to finish the Small Business Management
Training and Financial Awareness Seminar to prepare them in managing small business enterprises.

Currently, this program is available to undocumented OFWs who have returned to the Philippines.
Undocumented OFWs are those who obtained their passports through fraudulent means or
misrepresentation, those who possess expired visas or permits to stay; those who have no travel
documents at all; those who have valid but inappropriate visas; or those whose employment contracts
were not processed by the POEA or subsequently verified and registered on-site by POLO, if required
by law or regulation. Since there are a lot of undocumented OFWs from the country, the beauty of
this project is that it could help these individuals have a sustainable livelihood without needing to use
fraudulent means to find work abroad. From 2019 to 2021, they were able to assist 372 beneficiaries
in this region.

Sa ‘Pinas, Ikaw and Ma’am/Sir! (SPIMS) Program – This program aims to retrain household service
workers (HSWs) on the skills set needed for the Teacher I Position in the Department of Education
(DepEd) and get them hired in their hometowns to get them out of plain domestic work. Apart from

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teaching positions in DepEd, these returning OFWs may opt to work in non-teaching and other
occupations available in the Philippine labor market in both the government and private sectors. In
2021, they were able to train 59 beneficiaries in Central Luzon

Tulong Pangkabuhayan sa Pag-unlad ng Samahang OFWs (Tulong-PUSO) – The DOLE-OWWA Tulong-


PUSO Program is a one-time livelihood financial grant that supports the proposed business plan for
both start-up and expansion of the OFW Groups that have been duly recognized by the Department
of Labor and Employment (DOLE), Cooperative Development Authority (CDA), and the Securities and
Exchange Commission (SEC). The OFW groups must have at least 80% of their members considered as
OWWA members and/or their families while the remaining 20% may comprise of
undocumented/irregular OFWs and/or their families.

This program aims to guide and focus on livelihood endeavors towards projects that are viable,
sustainable, and have immediate income-generation potential. The program shall be made available
to livelihood start-ups, livelihood expansion, and livelihood restoration.

From 2019 to 2021, this program was able to provide livelihood grants to 24 groups of OFWs. In
comparison to the other reintegration programs of OWWA and NRCO, this program has fewer
beneficiary groups. This could be due to the requirements being more difficult to accomplish.

C. NSRP-PEIS, PJN, AND OTHER LMIS

To bridge the gap between job seekers and employers from various sectors, the DOLE has launched
several initiatives, including the National Skills Registration Program-PESO Employment Information
System (NSRP-PEIS), PhilJobNet, and the creation of other LMIs.

DOLE established the National Skills Registration Program (NSRP) with the primary goal of maintaining
a continuing nationwide skills registry through its Skills Registry System database. Subsequently, the
PESO Employment Information System (PEIS) is the enhanced version of the Skills Registry System. As
a database of active manpower, it contains the profiles of all individuals and employers who have
registered under the NSRP. It displays information about the applicant’s qualifications and skills as
well as the job vacancies posted by employers. The registry is maintained and updated by all
participating PESOs nationwide. The database can also be accessed offline to meet the needs of the
PESOs with slow internet connections.

Meanwhile, PhilJobNet is an internet-based job and applicant matching system which aims to expedite
jobseekers’ search for jobs and employers’ manpower needs. It provides job seekers with a listing of
job vacancies posted by accredited government and private employers as well as local and overseas
manpower recruitment agencies. Like the other job portals, applicants could create an account and
submit their resumes to employers for the job openings they wanted to apply for. However, the
system still has a limitation, wherein the employer cannot process the application directly through the
system.

On the other hand, the PEIS has integrated the functionalities of the Client Tracking System (CTS), a
system prototype developed under the JobStart Philippines Program that records client transactions,

JobsFit Labor Market Information Report – Region III | 44


services, and activities. It can also be utilized in tracking the number of employers, job vacancies,
applicants, and placements. Listed below are samples of the data that were generated through PEIS.

Total Number of Job Vacancies Posted in PEIS:


January 2018 to August 2022
January to
Province 2018 2019 2020 2021 TOTAL
August 2022
Aurora 4,669 4,956 124 209 515 10,473
Bataan 10,218 10,546 8,092 1,787 3,789 34,432
Bulacan 7,430 9,294 1,649 4,729 9,198 32,300
Nueva Ecija 12,530 28,262 9,572 8,219 8,321 66,904
Pampanga 26,070 28,597 8,998 12,202 11,760 87,627
Tarlac 9,259 10,338 7,599 11,632 16,731 55,559
Zambales 29,424 1,914 1,270 176 311 33,095
TOTAL 99,600 93,907 37,304 38,954 50,625 320,390

For the first two years before the pandemic, the number of job vacancies in the region had reached a
hundred thousand per year. However, due to the country’s economic slump in 2020 and 2021 because
of the pandemic, this number has plummeted to almost a third of the previous years. But as the
economy begins to recover this year, an upward trend in the total number of job vacancies in the
region could be observed from the table. The total number of vacancies posted from January to August
2022 has already surpassed the number of vacancies posted in 2021.

Report of Applicants Placed from January 2018 to August 2022


January
Province 2018 2019 2020 2021 to August TOTAL
2022
Aurora 900 713 36 0 213 1,862
Bataan 3,056 1,690 1,668 2,161 2,670 11,245
Bulacan 1,467 1,241 158 478 295 3,639
Nueva Ecija 12,212 9,869 1,967 1,860 784 26,692
Pampanga 7,103 17,955 5,378 9,366 5,866 45,668
Tarlac 3,958 9,567 3,142 5,437 3,821 25,925
Zambales 339 248 85 80 205 957
TOTAL 29,035 41,283 12,434 19,382 13,584 115,988
Source: PESO Employment Information System (PEIS)

Among the seven provinces in Central Luzon, Pampanga has the greatest number of applicants placed
from January 2018 to August 2022. The table above also shows that Pampanga has the most vacancies
during the same time period. This could be attributed to Pampanga having the second highest number
of establishments in the region in 2021 with a total of 32,478 establishments as provided by the
Philippine Statistics Authority (PSA). Although Pampanga has the greatest number of applicants
placed, this only accounted for 14.94% of their total registered applicants. Since Pampanga has more

JobsFit Labor Market Information Report – Region III | 45


than 2 million residents according to the 2020 Census of Population and Housing, it is a given that they
would have more registered applicants in PEIS.

Percentage of Applicants Placed from the Total Number of Job


Vacancies Posted and Registered Applicants from 2018 to 2021
60
50%
50 44%

40
33%
29%
30

20 15% 16%
12%
9%
10

0
2018 2019 2020 2021

Job Vacancies Registered Applicants

Source: PESO Employment Information System (PEIS)

From 2018 to 2021, the graph above does not show a linear trend between the percentage of
applicants placed versus the total number of job vacancies. It can be observed that while the
percentage in 2019 increased by 15 points from 2018, it decreased by 11 points from 2020 to 2019.
This decline could be attributed to the pandemic, wherein a lot of establishments were forced to shut
down their operations. In 2021, they were able to fill in around 50% of the job vacancies posted, but
nonetheless, it could be concluded that there are still a lot of vacancies that haven’t been filled in the
years due to the prevailing mismatch between the labor supply and demand.

On the other hand, the graph shows a decline in the percentage of applicants placed versus the total
number of applicants registered from 2018 to 2021. Due to the retrenchments of employees and
closure of establishments in 2020, the number of registered job seekers in 2021 almost doubled from
2020. This could explain why the percentage of applicants placed was only 9% even if they were able
to place more applicants in 2021 than in 2020.

Furthermore, labor market information was made accessible and available at the local level to ensure
the efficient delivery of the PESO’s employment facilitation service facility. Through Information,
Education, and Communication (IEC) materials, the LMI provides a source of information for
employers and job seekers about the future condition of the labor market by occupation, in-demand
jobs, and skill shortages.

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Number of Individuals Reached by PESOs
in Central Luzon
90,000
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
Aurora Bataan Bulacan Nueva Ecija Pampanga Tarlac Zambales

2019 2020 2021

Number of Establishments Reached by PESOs


in Central Luzon
2500

2000

1500

1000

500

0
Aurora Bataan Bulacan Nueva Ecija Pampanga Tarlac Zambales

2019 2020 2021

In 2019, a total of 322,187 individuals were reached by the Public Employment Service Offices in the
region. However, this number drastically decreased during the onset of the COVID-19 pandemic in
2020. With the lockdowns and restrictions brought about by the pandemic, the PESOs were only able
to serve a limited number of clients. Moreover, for at least three months since the quarantine
restrictions were imposed, people were only allowed to leave their residences for essential trips. With
the restrictions loosening up in 2021, the number of PESO clients also started to increase. A similar
trend could be seen with the number of establishments reached by the PESOs except that there is still
one province in the region in 2021 wherein the number of establishments reached is fewer than that
of 2020.

Another employment facilitation program implemented by DOLE is the Career Guidance Advocacy
Program (CGAP). It is an inter-agency initiative of DOLE with the Department of Education (DepEd),
Department of Science and Technology (DOST), Commission on Higher Education (CHED), Technical
Education and Skills Development Authority (TESDA), Professional Regulation Commission (PRC), and
the Federation of Career Guidance Advocates Network of the Philippines (FCGANP), Inc. The advocacy

JobsFit Labor Market Information Report – Region III | 47


program offers youth intermediation services in order to provide them with significant information
that can help them choose a career path. It aims to immerse parents and students in the realities of
the labor market and advocate for career counseling as an effective tool in addressing job-skill
mismatch. With the successful dissemination of the current landscape of the labor market to parents
and students, they will be influenced to make more appropriate career choices that could grant them
more opportunities upon their entry into the labor force.

D. SKILLS DEVELOPMENT

The challenges in the changing nature of work urge the government to shift into more strategic and
collaborative efforts to appropriately respond to the skills demand in the labor market considering the
emerging technologies, globalization, and the Fourth Industrial Revolution (4IR), which continues to
shape the future of work as it is expected to be volatile and complex. The educational, technical, and
vocational skills must be the key focus to enhance employability, labor productivity, and
competitiveness of our labor supply, which goes to point out the importance of skills development.
The importance of reskilling and upskilling of our workforce has been constantly recognized in every
consultation as one of the key solutions to help our workers gain relevant skills and be aligned with
the current trends in the labor market. However, this requires the strong collaboration of the public
and private sectors, and this denotes more investment in the education and training system. This
chapter will emphasize the public-private partnership and outline programs and strategies of the
government agencies to attain improvement of the skills development framework.

The Skills Gap and Challenges

Skills gap is a critical part in designing the skills development program. It serves as a bridge and
blueprint of the mismatch between the skills that employers rely upon on their employees, and the
skills that job seekers possess. It is vital to first determine and understand the skills gap therein and to
achieve this, this undertaking should transpire from the strong partnership of the government with
the business groups and Academe. Business leaders must champion an employer-led skills
development system in which they shall shift into proactively-led partnerships. This collaboration of
the government, education, and businesses can together better address the mismatch between jobs
and workers and should be periodically reviewed and analyzed to determine the labor market
progress and changes. The identified gaps will serve as a guide and basis for amending or if necessary,
formulating new policies and programs of the government.

However, taking on a leadership role in workforce development will require transformation for
employers, basically, identifying and signaling the government on skills they need, as well as
developing mechanisms in recruiting, training, and retraining employees. Businesses should rethink
their roles in nurturing workers. Strategically, forward-looking recruitment and hiring are important
elements of developing a skilled workforce and this is the primary challenge for companies. They lack
an effective system to recruit, hire, train, and retain a skilled workforce.

The human resource departments are possibly operational, rather than strategic because they lack
the time and resources necessary to focus on strategic recruitment. In addition, the lack of systematic
and internal training programs can make it difficult to develop personnel internally. Firms may not

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have systems in place for internal career advancement and the solutions should be taken through
several proactive steps to address the shortcomings. These strategies include investing in capacity or
skills planning through strategic HR initiatives, developing internal career ladders and internship
programs, and building partnerships with educational institutions and local chambers of commerce
and business associations, and trade groups. The employers must be also guided on the realistic
qualifications that they are looking for the jobs as this is becoming a major and increasing bottleneck
for their operations.

The Role of the Government

Determining the skills needed for jobs in every industry and assessing the education and skills of the
labor supply is being enjoined by the Department of Trade and Industry (DTI), Commission on Higher
Education (CHED), Department of Education (DepEd), and Department of Labor and Employment
(DOLE). The DTI leads the undertaking by having the mandate over businesses and enterprises,
investment and economic development opportunities, and competitiveness. It shall actively solicit
commitment and engagement from the private sector together with civil society organizations,
academic institutions, and other government agencies to draw the required skills of the industries.
The creation of Tripartism shall bridge the gaps and serve as a venue for mutual efforts and
shared goals; thus, strengthening the government’s thrust in ensuring the Filipino workforce is
locally relevant and globally competitive in global markets.

The Department of Trade and Industry (DTI) initiated the Philippine Skills Framework (PSF) ultimately
to build the skills and competencies of the human capital where employers can use the skills
framework to identify the necessary skills and competencies, while job seekers can define ways
forward or upward in a particular industry. The priority sectors for developing the skills frameworks
are manufacturing, construction, logistics and supply chain, health and wellness, food and agriculture,
creatives, tourism, and IT-BPM. This industry-led skills development consultation among the
stakeholders will not only help to cope with the new normal but will actually prosper in delivering
industry and sectoral-driven. This discussion could not have been more significant as we continue to
find ways to forge meaningful partners and industry through the implementation of our projects and
programs.

Furthermore, the Department of Education (DepEd) and Commission on Higher Education (CHED) are
directed to formulate curricular reforms integrating the 21st-century skills into the education system
and designing human resource development and training programs that shift to a skills-based
approach that can provide more efficient mechanisms. For educational institutions, the framework is
used to revise existing curricula and design new courses to bridge the skills and competencies of the
workers as they upgrade to desired occupations.

Whereas under the K-to-12 program, there is indeed a need to strengthen the senior high school
graduates to be readily employable, for instance, digital skills should be taught in senior high school,
thus, proposing the micro-credentialing system. This approach offers flexibility and inclusive short
course learning opportunities that help students to develop knowledge, skills, and competencies
rather than traditional qualifications.

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DTI also plans to establish a national artificial intelligence research that will help the private sector
develop new technologies. The National Center for Artificial Intelligence Research (NCAIR) is a private-
public partnership as once again strategy to turn the program successful. It will comprise regulations,
workforce development, research and development, and digitalization and infrastructure. It shall
serve as a driver in creating new and innovative products and services linking up to the skills
development of workers and entrepreneurs in partnership with the Commission on Higher Education
(CHED) and Department of Science and Technology (DOST) which will help solve issues and problems
affecting the operations and competitiveness of growing enterprises. The center will prioritize
agricultural technology and aquaculture, transportation and urban science, smart manufacturing,
healthcare, and resilience or disaster-management technology in its first three to five years.
Nevertheless, more needs to be done in terms of engaging local employers to ensure the curriculum
and delivery of the programs. It is hoped to work on comprehensive programs that will help create
higher value work in advanced technologies noting the lack of upskilling opportunities. DTI has
identified Clark International Airport as a potential area for aerospace development, Bulacan to Clark
for the health and life science (HLF) cluster for regional development.

Another government agency that will help fulfill the development of skills is the Technical Education
and Skills Development Authority (TESDA). The agency introduced its Area-Based and Demand-Driven
(ABDD) TVET Program in the year 2021 to respond to the critical needs in producing correctly skilled
workers. This serves as an alternative pathway to prepare for future jobs and training needs in the
area by allowing immediate program development and delivery through the development of
competency standards and curricula, rather than full-blown training regulations. It focuses on the skills
needs as characterized by the industries/ employers in a specific area or locality considering the rapid
changes in the labor market and the varying geographical characteristics and industrial layout of the
provinces, thus, a direct relationship is established with these industry partners keeping TESDA
informed on the workforce needs and development. This strategic concept of TESDA is a purposive
response that needs a series of focused group discussions and workshops with the industry drivers,
discussing workforce requirements and needs. The importance of a sustainable relationship with our
partners is given emphasis, as we manage the technical education system through relevant concepts
and directions according to area-based priority needs.

The area-based and demand-driven TVET program has three (3) main components. The first element
is the establishment of sectoral Industry Boards adopting new approaches toward the objective of
involving the industry in crafting policy directions for addressing skills requirements. The board aims
to help the workers, employees, educators, and government identify needed skills, narrow the skills
gap, and improve the training standards in particular sectors. Second is the training proper, the
Enterprise-based Training which shall ensure a steady supply of the best job-fit, ready, and highly
skilled workforce. The Competency Assessment and Certification System (CACW) is the last program
that aims to professionalize the workers by providing assessment and certification to industry
workers.

TESDA shall also align its strategies by adopting the skills mapping concept in the identification of skills
requirements, as well as the anticipation of the change in the labor market, which translates to new
and emerging skills also known as the Skills Needs Anticipation (SNA) process. The results of the SNA

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process can provide information on the current and future skills needs and requirements which can
be an input to the skills map.

TESDA Region III has identified the following priority industries under the Area-based and demand-
Driven TVET Framework based on the results of their TWG session conducted by Bayan Academy, in
partnership with TESDA and through the support of J.P. Morgan Chase Foundation:

▪ Construction Sector
• Mason, Carpenter, Welder, Painter, Safety Officer, Heavy Equipment Operator/Driver,
Electrician, Plumber, Pipefitter, Tile Setter, Scaffolder, BIM Manager, Supervisor,
Quantity Surveyor

▪ Manufacturing Sector
• Foundational Knowledge: foreman Training, Safety and compliance, operations, quality,
critical thinking and leadership, and people supervision
• Automotive: automotive body repair, electrical assembly, automotive metal working,
automotive motor working, automotive painting, automotive air-conditioning and
refrigeration systems, CADD operations for automotive drawing and design, electric
vehicle charging systems (as an emerging technology)
• Garments and Fashion: Fashion designing (sewers), high-speed sewers, bag
manufacturing, shoe manufacturing
• General Manufacturing: Forklift operator
• Electronics: Industrial electrician, building and wiring, general electrician/ marine
technician, industrial electrical technician, electronic components, IT peripherals
• HVAC: HVAC technician
• Metals and Engineering: welder, Machinist, Mold technician, Aluminum fabricators,
aluminum welders, CNC machine operator, CNC Machinist, CNC maintenance technician,
Mig welder, mold maintenance, Mold technician, Fluxed-core Arc welding, processing
technician
• Furniture: weaving, Upholstery
• Others: Shipbuilding and ship-repair-related skills

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Moreover, the Department of Labor and Employment (DOLE) continues to provide employment
facilitation services to the public consisting of job fairs; labor market information (LMI) dissemination;
the online job portal PhilJobNet; and the youth employment programs such as the Special Program
for Employment of Students (SPES), and the JobStart Philippines Program. Through the internet-based
job and applicant matching system known as PhilJobNet, the DOLE has made the applicants’ search
for jobs and the employer’s search for workforce more convenient.

The importance of providing and equipping the job seekers and students with the right labor market
information and advice must be the focus of the DOLE, ultimately, guidance as they choose their
career path or profession through the Career Guidance and Employment Coaching Seminars, a
program in cooperation with Public Employment Service Offices (PESOs) and School-based Guidance
Counselor (GC) networks.

The content in providing Career Guidance must be enhanced from the content of the labor market
information to the scope of the program. The LMI must be obtained from the results of the Skills
Development Framework of the DTI and the Area-based and demand-Driven TVET Framework of
TESDA to ensure preciseness and uniformity of information. Likewise, improvement must be also
realized in the conduct of career guidance seminars through integrating a qualitative and quantitative
assessment of the knowledge, skills, information, and experience of the students to identify career
options available, thus, shifting from just merely providing information but rather an extensive career
guidance approach.

DOLE must continue to strengthen the Public Employment Service Offices (PESOs) in providing
employment facilitation services in every local. Innovations and strategies to serve better in the
referral and placement, career counseling, trainings, and seminars.

Having declared the major programs and strategies of the different government agencies to build a
solid skills development framework for our workforce, it is profoundly important to have well-defined
roles and scope for every agency involved in this endeavor. This shall settle the duplications of
agencies’ programs and services and shall be able to directly address the factors that contribute to the
main problem of the job skills mismatch. Agencies shall also be able to quantify and qualify their
contributions in their respective mandates and commitments, while active collaboration shall be the
key in working together towards the attainment of inclusive economic growth.

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CHAPTER 4: JOBSFIT ACTION AGENDA
A. PROGRESS REPORT OF THE 2017 JOBSFIT REGIONAL ACTION AGENDA

On the recommendations and course of actions identified in the 2017 JobsFit Labor Market
Information Report, although with limited resources and other factors therein, respective government
agencies have carried out their shared responsibilities with great commitments in addressing and
aligning the gaps in the industry needs and manpower supply.

The government agencies have effectively implemented their commitments since they have anchored
on their regular programs and projects, however, some concerns still need to strengthen, particularly
in sustaining the strong engagement with the private sector and businesses and intensifying the
programs to fully guide the workforce, academe, and other interested parties.

Under the Human Resource Development designed for targeted sectors, the Philippine Skills
Framework (PSF) of the Department of Trade and Industry (DTI) has practically covered the objectives
to build the necessary skills and competencies of the human resource in accordance with the industry
needs and emerging technology. The framework prioritized the manufacturing, construction, logistics
and supply chain, health and wellness, food and agriculture, creatives, tourism, and IT-BPM sectors.
On the other hand, there is still a need to reformulate the educational system aligning to 21st-century
skills and expand the industry partnership for skills training programs. Nevertheless, the unceasing
challenge is the continuity and sustainability of the commitment of the stakeholders.

The infrastructure needed by companies is available, such as ports, airports, and road linkages, the
North Luzon Expressway, Subic-Clark-Tarlac Expressway, and Tarlac-Pangasinan-La Union Expressway,
hence, allowing inter-regional and intra-Central Luzon travel.

Region 3 is gradually becoming the next trade growth area outside of Metro Manila that investors and
companies are exploring or expanding to since Central Luzon has a lot of potential for agricultural
production, and industrial activity because of its resources.

B. NEW JOBSFIT ACTION AGENDA

Status quo has no place in the fast-changing landscape of work. This report posted several challenges
that the government is compelled to come up with an action plan and strategies to manage and control
the long-standing problems in the world of work. Apart from the strategies that have been mentioned
in the skills development, below are the additional areas to be accomplished by relevant stakeholders,
partners, and government agencies.

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Strategic Action Plan for JobsFit 2022-2025
Areas of Concern Strategic Action Responsible Agency
Involvement and support of Encourage LGUs to prioritize their DOLE BLE, DILG
the LGUs in the development partnership with their industry of (Policy issue for
of human resources in their jurisdictions to come up with a localized action at the
locality LMI analysis and strengthen their national level)
collaboration with the concerned
National Government Agencies in
developing their workforce according to
the needs of their industries.
LMI analysis not being PESOs must capitalize on the data and DOLE
maximized its coverage and information collected from the referral
use and placement service where job
vacancies are solicited and the placements
will be analyzed at the end of the year,
thus, coming up with a significant labor
market situation on the types of jobs that
remained vacant and industries that had a
hard time looking for workers.

This shall serve as a signal for the LGU,


DOLE, NEDA, DTI, TESDA, DOST, and other
relevant agencies that may be useful for
consultations and action planning.
Disassociation of efforts of the Synchronize and strengthen the DTI, CHED
government and universities/ partnership of DTI, and CHED with the
academe in preparing the universities/academe to minimize
graduates for future jobs repetition of undertakings with the
industries/establishments, as State
Universities/academe also conduct similar
endeavors to address the job mismatch
The need to reinforce the Enhance the Career Guidance Seminars in DepEd, TESDA
interdependent relationship an innovative way to help young people
between industries and understand job and career options and
schools incorporate relevant LMI and educational
offerings to form an effective vocational
higher education system.
Imminent problems on the Evaluate the impact of the virtual learning DepEd, CHED
quality of education acquired approach on the students and formulate
by students underwent and catch up methods.
others still undergoing virtual
learning systems due to
pandemic
Students resorting to any Inclusion of a list of scholarship grants DepEd, PESO,
courses due to financial from different agencies in the Career DOLE
constraints Guidance Advocacies for possible

JobsFit Labor Market Information Report – Region III | 54


educational assistance to encourage
students to pursue a relevant course.
Information Dissemination Intensify the government’s information All concerned
Plan dissemination on the LMI using digital Government
platforms for easy access and wider Agencies and
coverage. LGUs/ PESOs
Advocacy Program on the Tie up with DepEd and private schools on PRC
vanishing Professionals the advocacy program and utilize digital
platforms

Encourage establishments to hire licensed


professionals in accordance with the
profession to prevent job mismatch and
support HR on career professional
advancement

Inclusion of examination in Region 3 for in-


demand professions

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