Skills for the Labor Market in the Philippines by Emanuela di Gropello & Hong Tan & Prateek Tandon

Author:Emanuela di Gropello & Hong Tan & Prateek Tandon [di Gropello, Emanuela; Tan, Hong; Tandon, Prateek]
Language: eng
Format: epub
ISBN: 978-0-8213-8489-3
Publisher: The World Bank
Published: 2010-09-15T00:00:00+00:00

Source: Survey of Overseas Filipinos 2003.

Note: HH = household; agric = agriculture; occups = occupations.

Figure 3.24 Occupation of Emigrants before Emigration, by Gender

Source: Survey of Overseas Filipinos 2003.

Note: HH = household; agric = agriculture; occups = occupations.

Figure 3.25 Occupation of Emigrants after Emigration, by Gender

Source: Survey of Overseas Filipinos 2003.

Note: HH = household; agric = agriculture; occups = occupations.

From the perspective of the domestic market, emigration of skilled workers can contribute to domestic skills gaps in certain sectors.4 In others, such as education, health care, and personal services, emigration can probably explain the excess supply in the first place. Modern and developing services subsectors, where skills are in increasing demand, are probably in part suffering from emigration of skilled workers, as are some manufacturing subsectors (“brain drain”). The fact that most overseas jobs are regulated under a term contract and are therefore temporary in nature can probably alleviate this phenomenon. However, years of working in “underqualified” jobs are not particularly helpful in granting a successful reinsertion of emigrants in skilled positions upon their return to the Philippines. On the other hand, it is likely that the excess supply of some other professionals, such as teachers and nurses, is partly driven in the very first instance by the prospects of a job abroad.

Summing up, difficulties in finding the right skills for the job appear to have different possible explanations: from strictly labor market-related ones such as staff turnover, low wages, emigration of skilled workers, and lack of diversification of recruiting practices, to strictly skill-related issues. Emigration is an important factor that can condition both quantity and quality of available skilled workers. The quality of education and training is confirmed to be a key constraint, while quantity is only a secondary issue—although still relevant to some extent for the services sector.

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