PROJECT JOBSFIT Consultation Summary Report

REGION 4-A

Region 4-A

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REGION 4-A

Employment Trends and Structures

ased on the Employment Trends and Structures by Industry in Region IV-A for the period 2003 – 2008. There were four (4) employment generators with double digit share in the total employment and these are the following:

Wholesale and Retail Trade Sector registered an increment of twenty four percent (24.3%) or 148 thousand workers;

Real Estate, Renting and Other Business Activity registered an increment of almost twelve percent (11.8%) or 72 thousand workers;

Manufacturing and Agriculture, Hunting and Forestry have all registered a 10.9% employment increment or 66 thousand workers.

Other sectors which have an ample percentage increment were the following:

Private Households with Employed Persons with 8.6%;

Construction sector with 6.7%;

Public Administration at 5.3%;

Fishing sector at 5.1%;

Education sector with 4.3%;

Hotel and Restaurant at 3.8%;

Transport, Storage and Communication sector with 3.6%;

Financial Intermediation and Health and Social Work shared the same spot with 2%;

Other Community, Social and Public Service Activities with 1.3%;

Mining and Quarrying sector at 0.2%.

Meanwhile, only one sector in the industry showed a decline in employment trend in the given period and these was Electricity, Gas and Water -0.2% or a decrease of 1 thousand workers.

Employment Trends By Industry, Region IV-A : 2003 - 2008 (in thousands, except rates)

Industry YEAR

Increment % to Total Increment

Ave. Annual G. R. (%) 2003 2008

All Industries 3,551 4,159 608 100.0 3.4

Agriculture Hunting & Forestry 559 625 66 10.9 2.4

Fishing 108 139 31 5.1 5.7

Mining & Quarrying 3 4 1 0.2 6.7

Manufacturing 661 727 66 10.9 2.0

Electricity Gas & Water 22 21 (1) (0.2) (0.9)

Construction 268 309 41 6.7 3.1

Wholesale & Retail Trade 700 848 148 24.3 4.2

Hotel & Restaurant 115 138 23 3.8 4.0

Transport Storage & Communication 355 377 22 3.6 1.2

Financial Intermediation 47 59 12 2.0 5.1

Real Estate Renting Business Activity 113 185 72 11.8 12.7

Public Administration 153 185 32 5.3 4.2

Education 112 138 26 4.3 4.6

Health & Social Work 45 57 12 2.0 5.3

Other Community, Social & Public

Service Activities

112 120 8 1.3 1.4

Private Households 177 229 52 8.6 5.9 Source of basic data: National Statistics Office, Labor Force Survey

Annual Growth Rate

From 2003 – 2008 some sub sectors in the industry have expanded faster than the other subsectors as regards the average annual growth rate. These are the following:

B

Real Estate, Renting and Other Business Activities (12.7%);

Mining and Quarrying (6.7%);

Private Households with Employed Persons (5.9%);

Fishing (5.7%);

Health and Social Work (5.3%);

Financial Intermediation (5.1%);

Education Sector (4.6%);

Wholesale and Retail Trade together with Public Administration, Defense and Compulsory Social Service (4.2% respectively);

Hotels and Restaurant with (4.0%).

Average annual growth rate covering the years 2003 -2008 for all industries in Region IBV-A is at 3.4%.

Sectors which registered an average growth rate lower than the regional average were the following:

Construction (3.1%);

Agriculture, Hunting and Forestry (2.4%);

Manufacturing (2%);

Other Community, Social and Personal Service Activities (1.4%);

Transport, Storage and Communication (1.2%).

There was a lone negative growth rate that have been observed among the sub sectors of the Industry, Electricity, Gas and Water posted a – 0.9% average growth rate.

For the period covering 2003 – 2008, most of the subsectors which belong to the Service sector which registered an average growth rate higher than the regional average growth rate. This makes the service industry as the most fastest to increase in terms of average growth rate.

Average Annual Growth Rate by Industry: Region IV-A 2003 – 2008

(In percent)

Source of basic data: National Statistics Office, Labor Force Survey

Employed Persons by Major Industry Group

The 2008 data from National Statistics Office (NSO) on Employed Persons by Major Industry Group in Region IV-A showed that the Service sector is the major employment driver in the region, followed by Industry and then by Agriculture. The distribution given below holds true to almost all regions where the bulk of employment is shared between Service and Industry sectors.

Employed Persons by Major Industry Group, Region IV-A 2008 (In thousands, except rate)

Industry 2008 % Share

Agriculture 764 18.4

Industry 1,061 25.5

Service 2,336 56.2

All Industries 4,159 100.0

Source of basic data: National Statistics Office,

The Key Employment Generators (KEGs) identified during the National Human Resource Conference (NHRC) of 2007, particularly in the Metro Luzon Urban Beltway where Region IV-A belongs were the following;

Agribusiness;

Cyber Services;

Health, and Wellness and Medical Tourism.

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However, actual average growth rate for the given period showed that Mining, Private Households with Employed Persons, Financial Intermediation have registered a growth rate much higher than the regional figure, this will serve as input to Project JobsFit findings.

Gross Domestic Product

The Gross Domestic Product for the period 2003 – 2008, revealed the service industry is the key growth driver in the GDP for the past five years in Region IV-A, with an average GDP growth rate of 6.4%. Major contributors in the said sector were:

Finance (12.2%);

Transport, Storage and Communication (7.4%);

Private Services (7.4%);

O. Dwellings and Real Estate (7.0%);

Followed by the Industry sector with an average annual GDP growth rate of 2.5%, main contributor in this sector are the following:

Electricity, Gas & Water (7.8%);

Construction (5.7%)

And lastly the Agriculture sector with an average GDP growth rate of 2.2% and the major contributor is the Forestry (40%).

Gross Domestic Product By Industry, Region IV-A: 2003–2008

(in million PhP)

Industry YEAR

Increment % to Total Increment

Ave. Annual G.

R. (%) 2003 2008

All Industries 140,742 168,302 27,560 100.0 3.9

Agriculture & Fishery 28,405 31,529 3,124 11.3 2.2

Forestry 1 3 2 0.0 40.0

Mining & Quarrying 781 518 -263 -1.0 -6.7

Manufacturing 46,622 50,311 3,689 13.4 1.6

Electricity Gas & Water 6,109 8,498 2,389 8.7 7.8

Construction 5,845 7,507 1,662 6.0 5.7

Transport Storage & Communication 6,910 9,456 2,546 9.2 7.4

Trade 27,030 34,368 7,338 26.6 5.4

Finance 3,519 5,667 2,148 7.8 12.2

Ownership Dwellings and Real Estate 6,624 8,946 2,322 8.4 7.0

Private Service 5,718 7,833 2,115 7.7 7.4

Government Service 3,178 3,666 488 1.8 3.1

Source: National Statistical Coordination Board

BOI and NEDA Industry prospects

Investment Priority Areas (CALABARZON) Investment

Priority Area Batangas Laguna Cavite Rizal Quezon

ICT ICT-related activities (BPOs, Animation, etc.)

Information and Communication Technology

IT enables services Information and Communication Technology

Information Technology

Health and Wellness

Retirement communities/villages, Medical Tourism, Tourism related activities

Herbal Medicine Medical Transcription Tourism Nature Parks/Mountain Resort

Infrastructure Port-oriented services

Transport and Warehousing

Road Network Development and Operation Water Supply Development and Operation Solid waste treatment/management

Accommodation Facilities Transportation Services

Investment Priority Area

Batangas Laguna Cavite Rizal Quezon

Industrial and Economic Zones Development

Food Sector Processed Food & Beverages

Processed Food & Beverages

Agribusiness Sector Restaurant/Food outlets

Agribusiness Restaurants/Food Outlets High Value Crop Production

Gifts, Houseware and Holiday Décor (GHHD)

Giftwares and Holiday Decors

Home Furnishings Manufacturing Manufacturing

Data Limitation Due to time and resource constraints, as well as limited stakeholders’ participation, facts and figures

gathered by DOLE RO IV-A are merely indicative. Data inputs from NSO and BLES surveys were used to substantiate some of the findings in Project JobsFit.

LMI data findings based on Regional Consultation

The Regional Consultation in Region IV-A was conducted on August 10, 17 to 25, 2009 with the assistance of DOLE Region IV-A officers and staff. The stakeholders from both the public and private sectors have identified Key Employment Generators (KEGs) with their Corresponding Skills and Assessment of Gaps and Challenges. These are enumerated below:

Identified KEGS with their Corresponding Skills Requirement and Assessment of Gaps and Challenges (based on Project JobsFit Regional Consultation in Region IV-A)

KEGS SKILLS REQUIREMENT ASSESSMENT OF GAPS AND

CHALLENGES

Manufacturing 1. Electronics

2. Ceramics

3. Metal Fabrication

4. Petroleum/Sugar Industry

QA Engineers, Mechanical Engineers, Cell phone Technicians Instrumentation & Process Control Technicians, Mechatronics Technicians, Mechanical Engineer, Operator, Modeler (Skilled Workers) Welders, Fitters, Scaffolders, Rigger, Equipment Operator, Blaster/Painter (Professionals - Engineer) Mechanical, Civil, Structural, Electrician, Metallurgical, Welding, Cost/Quantity, Heavy Lift & Transport, Planning & Scheduling, IT Engineer/Programmer (Manager & Supervisors) Project Managers, Piping Supervisors, Structural Supervisors, Welding Supervisors, Construction Manager Licensed Mechanical/Chemical Engineer, Chemists

Perceived as a male job and soldering is considered hazardous and not allowed for workers below 18 years old Schools provide only theoretical lessons not enough to develop skills Lack of English proficiency affecting report preparation and comprehending work manuals and verbal instruction of foreign employees/supervisors High turn-over due to outsourcing, overseas opportunities and pirating High turn-over due to overseas opportunities Decline in the number of students taking up engineering courses Lack of sense of values for work time and sense of responsibility Lack of sufficient experience & qualification Lack/limited qualified manpower supply High turn-over because of overseas opportunities Decline in the number of students taking up engineering courses

Construction Mechanical Engineers, Industrial Engineers, Quality Control specialists, Welders, Riggers, Safety Engineers, Heavy Equipment Operators, CAD

Inadequate supply of HEOs High mortality on trade test in safety, technical skills and knowledge assessment

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KEGS SKILLS REQUIREMENT ASSESSMENT OF GAPS AND

CHALLENGES

Operators High cost of safety trainings High turn-over because of overseas opportunities High preference for jobs in electronics, semicon, automotive companies due to nature and work environment

Agri-Business Veterinarian, Animal Husbandry, Agricultural Engineer

Applicants fail to pass series of examinations and interviews due to lack of supervisory and leadership potentials Theoretical knowledge but lacking in practical exposure Lack of awareness as an employment option Limited students prefer this career

Health, Wellness & Medical Tourism Food and Beverage Workers, Bartenders, Sales Accounts Executives, Massage Therapist, Entertainers, Cashiers

Needs Communication Skills improvement program Lack of decision skills making Salary expectation gap

Automotive Mold and Dye Engineer, Mold Technician

Limited provider of Dual Training System in Region IV Low hiring rate due to lack of qualified applicants Salary expectation gap

Mining Mining engineer, Geologist, Metallurgical Engineer, Geodetic Engineer

Limited schools offering the course Low enrollment due to lack of interest Lack of promotion/marketing the course Low salary

Emerging Industries in Region IV-A

There are two (2) emerging industries that surfaced along the conduct of the Stakeholders’ Consultation in Region IV-A which has potential of generating employment in the next five to 10 years.

Industries Skills Requirements

Cyber Services Call Center Agents, Computer Engineer, Inbound and Outbound

Sales Agents, Medical Transcriptionists, Team Leaders Port Oriented Services/Transport and Logistics (Operators) Crave, Radar Plotting, Radio Communication, Passenger

Boarding Bridges, Rubber Tyred Gantries, customer Service Officer,

X-Ray Technicians, Checker, Foremen Source: Project JobsFit Regional Consultation

Skills Availability

The regional consultation yielded a limited estimates as to the quantity available supply of skills per industry, except for the number of college graduates in the public and private institution as projected in the Region IV-A as a result of the consultation with the stakeholders and data on 2008 TESDA Enrolled, Graduates, Assessed, and Certified by Sector.

Top 10 Graduates by Program (2009 – 2014) Region IV-A

Program Name Graduates

2009 2010 2011 2012 2013 2014

B.S, in Information Technology 1,088 9,302 4,594 2,169 1,650 802

B.S. Hotel and Restaurant Management 1,522 6,669 4,041 2,659 2,317 83

B.S. in Computer Science 1,783 5,619 3,084 2,361 2,080 560

B.S. in Accountancy 855 4,694 2,486 1,343 1,087 223

Associate in Computer Technology 2,140 5,287 2,957 3 0 0

B.S. in Electronics & Communications Engineering 586 2,120 1,292 983 923 836

Associate in Hotel & Restaurant Management 563 3,831 2,761 5 0 0

B.S.in Computer Engineering 586 2,048 1,110 888 710 913

B.S. in Tourism 283 1,861 857 540 428 0

B.S. in Mechanical Engineering 277 965 201 701 516 691

Source Project JobsFit Regional Consultation

Presented table above are just the top ten graduates by program as projected in the consultation. There are 34 programs or disciplines that they have included in their projections and this resulted to the number of graduates per year. For 2009, total graduates as they projected, totaled to 11,748, for 2010 it jumped to 48,858, in 2011 it went down to 28,089, 2012 went down further to 14,950, for 2013, still it slightly went down to 12,108 and in 2014 it drastically went down to 5,968 graduates.

2008 TESDA Enrolled, Graduate and Accredited Skills: Region IV-A

Sector Enrolled Graduates Assessed Certified

Agri-Fishery 572 719 456 332

Information and Communications Technology 53,396 29,858 15,783 4,782

Tourism 22,058 12,798 9,108 5,275

Automotive 3,483 2,789 1,926 1,491

Building Construction 4,008 3,394 1,674 1,118

Electronics 5,363 3,970 - 595

Metals and Engineering 6,848 6,467 2,114 1,029

Process Food and Beverages 2,176 2,245 142 734

Grand Total 97,904 62,240 31,203 15,426 Source:TESDA

The additional labor supply for the in-demand occupations can be sourced from TESDA’s tech-voc graduates which totals 62,240. Of this, 50.1% or 31,203 have been assessed where 15,426 have been certified.

Assessment of Gaps and Challenges based on the Regional Consultation

Industry Description of Gap/Challenge Recommended Solutions Courses of Actions/Methods

to Implement the Recommendation

Industry

Description of Gap/Challenge

Recommended Solutions

Courses of Actions/Methods to Implement the Recommendation

1. Manufacturing Sector

Electronic/Semicon Perceived as a male job and soldering is considered hazardous and not allowed for workers below 18 years old Schools provide only theoretical lessons not enough to develop skills Lack of English proficiency affecting report preparation and comprehending work annuals and verbal instructions of foreign employees/supervisors Diploma is thought to be enough to get employed and get good salaries hence worker become choosy and cannot

Intensify Career Guidance to include gender awareness, current work practices, opportunities for both techvoc and four year courses to ensure effective career choices High school education to offer more practical training on basic soldering and welding among others for males and females Technical traditional Writing, English and Mathematics must be reviewed with the current computer aided teaching approaches Review school curriculum to address gap in English

DOLE to revise its Career Guidance module for the proposed inclusion of topics in the module DepEd to consider issuance of Certificate of Major Skill to student apart from identifying the aptitude for higher/professional college education DEPED and CHED to include skills competition among students at all levels and schools Govt to provide incentive to schools and full support to students with good record in national skills Olympics, English, Math and Science

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Industry Description of Gap/Challenge Recommended Solutions Courses of Actions/Methods

to Implement the Recommendation

adopt to difficult work environment Resistance to accept tasks other than job applied for (specialist) High turn-over due to outsourcing, overseas opportunities and pirating Hiring difficulty of occupational health nurses and nurses hired have no OSH training because industrial setting is not attractive to nurses because of low salaries Ceramic Industry High turnover because of overseas opportunities Decline in the number of students taking up Engineering courses Lack of sense of values for worktime and sense of responsibility Metal Fabrication Lack of sufficient experience & qualification Lack/limited qualified manpower supply

proficiency Continuous Learning Process like job rotation should form part of the Career Enhancement Program that must be included in company policy and well explained to workers for the multi skilling scheme to increase number of skilled workers Require local employment-hospital or industrial based experienced prior to overseas employment Review laws on existing compensation and benefits Adopt a talent development program Adopt in house curriculum of certain course (e.g. Ceramics Certificate course) Intensify Career Guidance to advocate for potential job opportunities In-house values, productivity motivation seminars counseling and coaching mechanism at the plant through induction/orientation and periodic HR development seminars Bridging industry standards to the classroom standards (inclusion of TGM/TPM & ISO Concepts, English Communication & Values

Competitions. DepEd and CHED to introduce ISTIV in high school through college DOLE to include in the Labor Education seminars formulation of Career Enhancement Program Strengthen tie up of TESDA and establishment or private company to ensure that trainings will be relevant to the needs of the industry CHED to put a cap on enrolees of oversubscribed courses CHED to regulate the accreditation of schools to ensure that courses to be offered will be relevant to the needs of the industry Stop the proliferation of fly by night schools and training institutions and government should have the political will to close schools with very low turn out on board exams. Education Skills Development Committee to include DEPED, CHED and DOLE and at the provincial level DepED/CHED/TESDA to device structural curriculum/trainings that will fit industry set-up

Industry Description of Gap/Challenge Recommended Solutions Courses of Actions/Methods

to Implement the Recommendation

2. Construction

Petroleum/Sugar Industry High turnover because of overseas opportunities Decline in the number of students taking up Engineering course Pre Fabricated Housing & Metal/Steel Fabrication for Export Inadequate supply of Licensed Forklift Operator High Mortality on Trade Test in Safety, technical skills and knowledge assessment High cost of safety trainings

formation. Including OJT Program (structured) in the curriculum Integration of hands-on training on industry Advocate for the implementation of TESDA’s ladderized program and enterprise based training programs through forging of partnership with industries Job Training Partnership with training Institution (e.g. TESDA, Academe/Dualtech, etc.) Adopt a talent development program. Adopt in house curriculum of certain course (e.g. Ceramics Certificate course) Intensify Career Guidance to advocate for potential job opportunities Registry of Licensed Forklift Operator must be made accessible Intensify safety trainings and to require advanced safety courses Critical positions in production must have safety training orientation Enforce policy on Accreditation of Safety Officers Supervisory and Leadership seminars for Safety Officers

Strengthen tie up of TESDA and establishment or private company to ensure that trainings will be relevant to the needs of the industry Strengthen tie up of TESDA and establishment or private company to ensure that trainings will be relevant to the needs of the industry CHED to put a cap on enrollees of oversubscribed courses CHED to regulate the accreditation of schools to ensure that courses to be offered will be relevant to the needs of the industry. Stop the proliferation of fly by night schools and training institutions and government should have the political will to close schools with every low turn out on board exams Review Training Program of BWC/OHSC/ and Accredited Safety Training Organizations

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Industry Description of Gap/Challenge Recommended Solutions

Courses of Actions/Methods to Implement the Recommendation

3. Agribusiness 3. Cyber Services

High turnover rate because of overseas opportunities High preference for jobs in electronics, semicon, automotive companies due to nature and work environment Applicants fail to pass series of examinations and interviews due to lack of supervisory and leadership potentials Theoretical knowledge but lacking practical exposure Lack of awareness as an employment option Limited students prefer this career Limited supply of qualified and competent applicant due to outmigration, compensation concerns and pirating Low level of English facility

Reliable and updated skills database is essential and made accessible to industry to reduce cost of sourcing and recruitment TESDA to increase number and scholarship grantees with rigid screening to ensure completion and competency of graduates Implement RA 6685 – Workers Hired in Infrastructure Project Advocate for Environment safety focused programs to address infra (house and buildings of the future us essential Leadership skills must be developed at all levels of education to prepare for supervisory work Invite industry experts to train people in the academe and the training, institutions. Universities/college professors/ instructors’ qualifications must include among others exposure or working experience in the business/corporate world so theories will be linked to actual practice. Intensify Career Guidance to include gender awareness, current work practices, opportunities for both techvoc and four year courses to ensure effective career choices Review school curriculum to address the gap ion English proficiency required Provide more training schools for Call Center Agents that would enhance their ENGLISH PROFICIENCY

TESDA-DEPED partnership in identifying target beneficiaries of its scholarship program Strengthen tie up of TESDA and establishment or private company to ensure that trainings will be relevant to the needs of the industry Forge DPWH-DOLE-BWC-BLE partnership DEPED, CHED, DENR, DOLE, TESDA to study the green jobs trend as employment driver More human factor integrated into the curriculum of technical and engineering courses. CHED to review qualifications for professors/college instructors. DOLE to revise its Career Guidance module for the proposed inclusion of topics in the module TESDA and CHED to review the Curriculum if it is competitive with the Asian countries. Strengthen tie up of TESDA and establishments of private company to ensure that trainings will be relevant to

Industry Description of Gap/Challenge Recommended Solutions Courses of Actions/Methods

to Implement the Recommendation

4. Health, Wellness & Medical Tourism 5. Automotive

Adaptability to graveyard work schedules High turnover due to stress and health reasons Needs communication skills improvement program Lack of decision skill making Salary expectation gap Limited provider of Dual Training System in RO IV-A Low hiring rate due to lack of qualified applicants

To promote ENGLISH LANGUAGE in the schools in order for students to be well versed in the language Prohibit kids from watching Filipino telenovelas but instead English-oriented programs Intensify Career Guidance to include gender awareness, current work practices, opportunities for both techvoc and four year courses to ensure effective career choices Review the laws relative to health/safety of workers in the call center (example women rights at the night work) Include on curriculum training modules topics on Communication skills and Leadership Lobby for more tourism infra development Intensify service Quality Improvement Programs Develop service oriented culture Leadership training programs Advocate for the implementation of TESDA’s ladderized program and enterprise based training program through forging of partnership with industries Continuous Learning Process like job rotation should form part of the Career Enhancement Program that must be included in company policy and well explained to workers for the multi skilling scheme to increase number of skilled workers Implementation of attractive

the needs of the industry Creation of industry supervisors/middle managers associations to take care of emerging issues/concerns in the industry such as skills and competitiveness, compensation and incentives packages, pirating practices DOLE to revise its Career Guidance module for the proposed inclusion of topics in the module DOLE/BWC to set work standards for BPOs Strengthen tie up of TESDA/CHED and establishment or private company to ensure that trainings will be relevant to the needs of the industry Strengthen of the Provincial Tourism Council Implement WAP during off season to enable young workers exposure to work settings and work values subject to strict monitoring of DOLE Strengthen tie up of and establishment or private company to ensure that trainings will be relevant to the needs of the industry DOLE to include in the Labor Education seminars formulation of Career Enhancement Program Intensify promotion of productive model/best practices and incentives available Encourage with urgency the

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Industry Description of Gap/Challenge Recommended Solutions

Courses of Actions/Methods to Implement the Recommendation

6. Post Oriented Services - Operators

Salary expectation Low hiring rate

commission and incentives programs Include in the TOR of Bidders for CH Services the Manpower Training Program for key port operators personnel

TESDA and CHED to devise short-term curriculum that will fir the needs of the port Performance evaluation including management and personnel audit as to their compliance per their training program