ADB okays $500-M loan for Phl labor reforms

The Asian Development Bank (ADB) has approved a $500 million policy-based loan to support the Philippine government’s efforts in expanding labor market programs and boosting workforce skills.

According to the ADB, the Business and Employment Recovery Program-Subprogram 2 aims to equip Filipino workers with industry-relevant skills, enhance women’s participation in the labor force through technical and vocational education and training (TVET), and improve access to livelihood and employment opportunities via government job facilitation programs.

The initiative sets a goal of generating 600,000 to 700,000 formal private-sector jobs annually, raising the private sector’s share of total employment to 51 percent, up from 49 percent in 2019.

Additionally, the program will provide skills training for 5,000 workers, including those displaced by the pandemic, through private sector-led initiatives such as SkillsUpNet Philippines.

It also aims to increase job placements through public employment service offices (PESOs) in local government units (LGUs) nationwide by 120,000 per year and expand the implementation of the JobStart Philippines program, which provides training for unemployed youth.

“While job recovery in the Philippines has been encouraging in the post-Covid-19 period, the quality of jobs remains a critical concern, with many workers still facing challenges such as underemployment, informality, and limited access to decent work opportunities,” said ADB Country Director for the Philippines Pavit Ramachandran.

“This new program addresses that need and will help in preparing Filipino workers for higher-skilled jobs such as in analytics and artificial intelligence, software development and security, and business process management—industries where Filipinos have a proven potential to excel,” he added.

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