The Asian Development Bank is providing a US$500 million loan to the Philippines to enhance workforce skills and improve job quality.
Dubbed the Business and Employment Recovery Programme Subprogramme 2, the initiative seeks to future-proof Filipino workers – particularly young professionals and women – by equipping them with in-demand skills in artificial intelligence, software development, data analytics, and business process management.
The programme hopes to boost private sector employment and accelerate post-pandemic economic recovery by bridging the gap between education and industry needs, the ADB said.
Preparing Filipinos for higher-skilled jobs
At the heart of this initiative is a push to turn dead-end jobs into stepping stones for career growth.
“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. This new programme addresses that need and will help in preparing Filipino workers for higher-skilled jobs,” said Pavit Ramachandran, ADB’s country director for the Philippines.
The ADB programme tackles this challenge head-on by offering technical and vocational training, particularly for women and disadvantaged youth. This effort builds on past successes, such as JobStart Philippines and the Facilitating Youth School-to-Work Transition Programme, both of which provided structured training and job placement services to those struggling to find stable employment.
The programme also champions private sector-led initiatives like SkillsUpNet Philippines, designed to close the chasm between theoretical education and real-world employment. Ensuring workers are equipped with skills that industries demand, the initiative aims to shift the labour market away from low-quality, precarious jobs and towards stable, high-skilled roles.
Creating more jobs for Filipinos
Expanding private-sector employment is a major pillar of this effort. The government has set its sights on creating 600,000 to 700,000 formal jobs annually, a significant step up from the 49% share of private sector employment recorded in 2019. The goal is to push this figure to 51%, creating a stronger and more dynamic job market.
In addition, public employment services will be strengthened, with a target of 120,000 more job placements facilitated each year through local government offices. To keep up with the rapid pace of technological change, the programme also prioritises modernising technical and vocational training institutes.
The government hopes to ensure that workers are not just chasing yesterday’s jobs but are prepared for the careers of tomorrow. These efforts align with broader ADB-backed reforms designed to attract investment and reshape the employment landscape into one that is more robust, agile, and forward-looking.
Helping Filipino women enter lucrative industries.
A key aspect of the programme is its focus on inclusion and gender equality. Women will receive targeted training to help them break into high-demand, well-paying fields traditionally dominated by men. This aligns with global efforts to close the gender gap in STEM and business services, helping to unlock untapped talent and boost overall workforce productivity.
Meanwhile, the programme casts a safety net for young people who have fallen through the cracks – those not in education, employment, or training – by providing them with life skills and technical training. In helping these individuals transition into formal employment, the initiative strengthens long-term economic resilience and ensures the next generation of workers is adaptable, competitive, and ready to thrive in an evolving job market.
Beyond skills development, the programme supports sweeping policy reforms designed to make the business environment more attractive to investors. These include cutting red tape and making it easier to do business. The government aims to encourage private sector growth, leading to more sustainable job creation. – People Matters Asia Bureau
