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Session II: Engaging employers in skills development
and utilisation at the local level
8th Annual Expert Meeting of the
ESSSA and 4th Regional Policy
Dialogue on TVET
Kelly Bird, Director, Southeast Asia Department
11 October 2016, Cebu
How long does it take for a young Filipino to find a job
since leaving school/college in the Philippines?
(Based on an ADB survey of 500 households in Cebu and Metro Manila)
2 years for a
college
graduate
4 years for a
high school
graduate
What is the share of youth
employed since leaving school
in the Philippines?
High school graduates
• Only 20% of high school graduates
employed one year since leaving
school
• 60% of high school graduates
employed eight years since leaving
school
College graduates
• 75% of college graduates
employed one year since
leaving college
What is the share of Filipino
youth not in employment,
education or Training (NEET)?
One in four youths are in
not employment, education
or training
Risk Factors
1 in 3 young women in NEET
1 in 2 young women with low
education in NEET
Youth from low income households at
higher risk of NEET (National Capital Region)
Young Women Young Men
High NEET for
young women
from low-income
families
Share of youth
population in
NEET
High NEET for
young men
from low-income
families
Share of youth
population in
NEET
Wage Differentials by Education
(ADB study on earnings show)
College
Graduates
High School
Graduates
Wage Differentials by Gender
(ADB study on earnings show)
Male Female
THE EMPLOYMENT
FACILITATION FULL CYCLE
1. Registration and Client Assessment 2. Life Skills Training
(plus one-on-one career guidance)
3. Job-Matching
4. Referral for interviews with
JobStart Employers
5b. Technical Training
(up to 3 months)
6. Work Experience
(up to 3 months)
Pre-
qualifications
Internship
Offers
Training
Plans
Signing of
partnership
agreements
5a. Wage Employment
YESNO
Job Ready?
5c. Other DOLE youth
employment/training programs
5d. Further CG and job
matching
7. Referral for Job
Placement (PESO
available vacancies)
JobStart Philippines Rollout
4 Pilots
completed
(2013-
2015)
1,600 youths
Employment
rate of 70%
Average cost
per JobStarter
$800
RA 10869
JobStart
Act
Enacted
in June
2016
Nationwide
rollout
(2015-2020)
2016 – 14 LGUs
(Luzon, Visayas,
Mindanao)
Additional 10
LGUs each year
Targets
50 LGUs by 2020
At least 50,000
OSY entered JSP
by 2020
After 2020, at
least 30,000 OSY
placed in JSP
annually
“There is a unique program for
every JobStarter because they
have different capabilities.”
JobStart Program
Testimonials
− Employer
“I grow in more ways than just
my career.” − JobStarter
Skills Grants
Scheme
Employer
Outreach
Employers
form training
networks
Grants
Awarded
Employees
trained
Tourism Skills
Training Grants Program
Regional DOT
DOT HQ
• Forums
• Local chambers
• Ads/Flyers
• Industry
experts
• Private
providers
• TESDA/TVET
Institutions
 4 Pilots completed (2013-2015)
 Locations: Davao, Cebu, Palawan, Bohol
 48 Grantees (single enterprises and networks), total
of US 1.2 million awarded
 DOT Nationwide rollout (2017)
 Proposal: ISGS to be scaled-up across different
sectors or priority industries.
Key Results of the
Tourism Skills Grants Scheme
Average cost per trainee
US$131
Total participants trained
7,550
Engaging employers in skills development and utilisation at the local level
Calamianes Association of Tourism
Establishments, Inc.
The Calamianes Association of Tourism Establishments (CATE) is an
association of 126 establishments engaged in tourism services in the
Calamianes Islands based in Coron, Palawan. CATE has in excess of
1,300 employees engaged in tourism services.
• 120 employees were trained in Supervisory Skills
Notable Achievements:
• 5-10% reduction in operating costs (will vary from company to
company)
• 10% decrease in complaints and negative comments
• Increase to 10% in guest satisfaction for CATE system, and at least a
one star increase in the rating for those listed in TripAdvisor
• 10% increase in the satisfaction rating from mystery guests
Coron Restaurant Consortium
The Coron Restaurant Consortium is an association of restaurants in Coron,
Palawan, led by Santinos Grill and Restaurant. Collectively, it currently
employs 80 people. 72 employees were trained in:
• Technical Kitchen Skills and Hazard Analysis and Critical Control Points
(HACCP)
• Food and Beverages Services
Notable Achievements:
• 21 participants were certified in Hazard Analysis and Critical Control
Points (HACCP)
• Staff retention is indicated as 100% in 10 of the 12 participating
restaurants
• Staff retention is indicated as 50% in 2 of the 12 participating restaurants
• Average increase in food sales of approximately 8%
• Approximately 50% reduction in guest complaints
• 58% of participants reported a 5% reduction in operational costs
Lessons
• A network of public employment services offices (PESO) at the
local government level, and well funded.
• Strong coordination between Labor/employment department and
the local government, with national government responsible for
policy development and a supportive role through program
coordination and capacity development
• Governments should have a menu of interventions targeted at
different groups – public-private funded, employer led with simple
designs.
– Full cycle employment facilitation program to help OSY (career
guidance, life skills, technical training, internships, placements)
– Industry skills grant schemes that provides a subsidy to employers to
upgrade staff skills to raise productivity and competitiveness.
• Invest in establishing a good governance structure
www.adb.org

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Engaging employers in skills development and utilisation at the local level

  • 1. Session II: Engaging employers in skills development and utilisation at the local level 8th Annual Expert Meeting of the ESSSA and 4th Regional Policy Dialogue on TVET Kelly Bird, Director, Southeast Asia Department 11 October 2016, Cebu
  • 2. How long does it take for a young Filipino to find a job since leaving school/college in the Philippines? (Based on an ADB survey of 500 households in Cebu and Metro Manila) 2 years for a college graduate 4 years for a high school graduate
  • 3. What is the share of youth employed since leaving school in the Philippines? High school graduates • Only 20% of high school graduates employed one year since leaving school • 60% of high school graduates employed eight years since leaving school College graduates • 75% of college graduates employed one year since leaving college
  • 4. What is the share of Filipino youth not in employment, education or Training (NEET)? One in four youths are in not employment, education or training Risk Factors
  • 5. 1 in 3 young women in NEET
  • 6. 1 in 2 young women with low education in NEET
  • 7. Youth from low income households at higher risk of NEET (National Capital Region) Young Women Young Men High NEET for young women from low-income families Share of youth population in NEET High NEET for young men from low-income families Share of youth population in NEET
  • 8. Wage Differentials by Education (ADB study on earnings show) College Graduates High School Graduates
  • 9. Wage Differentials by Gender (ADB study on earnings show) Male Female
  • 10. THE EMPLOYMENT FACILITATION FULL CYCLE 1. Registration and Client Assessment 2. Life Skills Training (plus one-on-one career guidance) 3. Job-Matching 4. Referral for interviews with JobStart Employers 5b. Technical Training (up to 3 months) 6. Work Experience (up to 3 months) Pre- qualifications Internship Offers Training Plans Signing of partnership agreements 5a. Wage Employment YESNO Job Ready? 5c. Other DOLE youth employment/training programs 5d. Further CG and job matching 7. Referral for Job Placement (PESO available vacancies)
  • 11. JobStart Philippines Rollout 4 Pilots completed (2013- 2015) 1,600 youths Employment rate of 70% Average cost per JobStarter $800 RA 10869 JobStart Act Enacted in June 2016 Nationwide rollout (2015-2020) 2016 – 14 LGUs (Luzon, Visayas, Mindanao) Additional 10 LGUs each year Targets 50 LGUs by 2020 At least 50,000 OSY entered JSP by 2020 After 2020, at least 30,000 OSY placed in JSP annually
  • 12. “There is a unique program for every JobStarter because they have different capabilities.” JobStart Program Testimonials − Employer “I grow in more ways than just my career.” − JobStarter
  • 13. Skills Grants Scheme Employer Outreach Employers form training networks Grants Awarded Employees trained Tourism Skills Training Grants Program Regional DOT DOT HQ • Forums • Local chambers • Ads/Flyers • Industry experts • Private providers • TESDA/TVET Institutions
  • 14.  4 Pilots completed (2013-2015)  Locations: Davao, Cebu, Palawan, Bohol  48 Grantees (single enterprises and networks), total of US 1.2 million awarded  DOT Nationwide rollout (2017)  Proposal: ISGS to be scaled-up across different sectors or priority industries. Key Results of the Tourism Skills Grants Scheme Average cost per trainee US$131 Total participants trained 7,550
  • 16. Calamianes Association of Tourism Establishments, Inc. The Calamianes Association of Tourism Establishments (CATE) is an association of 126 establishments engaged in tourism services in the Calamianes Islands based in Coron, Palawan. CATE has in excess of 1,300 employees engaged in tourism services. • 120 employees were trained in Supervisory Skills Notable Achievements: • 5-10% reduction in operating costs (will vary from company to company) • 10% decrease in complaints and negative comments • Increase to 10% in guest satisfaction for CATE system, and at least a one star increase in the rating for those listed in TripAdvisor • 10% increase in the satisfaction rating from mystery guests
  • 17. Coron Restaurant Consortium The Coron Restaurant Consortium is an association of restaurants in Coron, Palawan, led by Santinos Grill and Restaurant. Collectively, it currently employs 80 people. 72 employees were trained in: • Technical Kitchen Skills and Hazard Analysis and Critical Control Points (HACCP) • Food and Beverages Services Notable Achievements: • 21 participants were certified in Hazard Analysis and Critical Control Points (HACCP) • Staff retention is indicated as 100% in 10 of the 12 participating restaurants • Staff retention is indicated as 50% in 2 of the 12 participating restaurants • Average increase in food sales of approximately 8% • Approximately 50% reduction in guest complaints • 58% of participants reported a 5% reduction in operational costs
  • 18. Lessons • A network of public employment services offices (PESO) at the local government level, and well funded. • Strong coordination between Labor/employment department and the local government, with national government responsible for policy development and a supportive role through program coordination and capacity development • Governments should have a menu of interventions targeted at different groups – public-private funded, employer led with simple designs. – Full cycle employment facilitation program to help OSY (career guidance, life skills, technical training, internships, placements) – Industry skills grant schemes that provides a subsidy to employers to upgrade staff skills to raise productivity and competitiveness. • Invest in establishing a good governance structure

Editor's Notes

  • #2: My presentation will cover two areas with a focus on the Philippines – first briefly discuss the youth school to work transition, and second on two programs that are designed to facilitate the transition; one on youth employment program and the other on industry skills grant scheme. Some lessons are drawing for other economies in the ASEAN region
  • #3: The school to work transition describes a series of events by young people in finding a job – can include short term skills training, periods unemployed or economically inactive, temporary work. I would like to present some statistics that describes the youth stw transition. GO TO SLIDE
  • #4: Highlight very slow transition for high school graduates – uncertain and full of anxieties for many
  • #5: Another way at looking at lm performance related to this transition is the NEET rate. More frequent and longer in NEET the more likely you’ll be trapped in low paying jobs throughout your life. Talk about some risk factors
  • #6: Gender gap Men are one in five
  • #7: Education gap
  • #8: Low income households Typically low education, les likely to do skills upgrading during the transition, lack life skills and have poor quality social contacts and rely on family and friend for fining a job.
  • #9: Consequences for many young persons – low education translate to low wage. ADB statistical study on earnings differentials
  • #10: Gender wage gap larger for low education – to some extent due to interruptions in women’s LM participation
  • #11: Now let me turn to programs piloted in Philippines that have had success and long term promise for helping t faciliate the stw transion. First is JobStart Philippines JobStart offers a number of pathways for young perons between 18 and 24 years to find decent jobs. Services offered: Client assessment done at application/registration Life skills training for 8 days including one-on-one career coaching Job matching Referral to wage employment (job ready) Referral to TVET training up to 3 months, if necessary Referral to internship with employer up to 3 months Jobstart fully funds lifeskills and provides a stipend to the JobStartr during life skills and provides a grant to employer to cover technical training, stipend to JobStrter and admin costs. Employer pays 75% of MW during the internship. How do employers participate? 1. Employers can register for the program anytime during the year through contacting DOLE or the participating PESO. 2. JobStart consults with interested employers on requirements and procedures. 3. After JobStarters complete life skills training, they are referred to employers for interview. 4. Employers advise JobStart on successful applicants accepted for internships in their firms, then submit a training plan. 5. Employers sign a Memorandum of Agreement with JobStart at the local PESO. 6. JobStarters undergo technical training with the employer or with a TESDA-accredited institution. 7. Upon completion of technical training, JobStarters undertake internship with employers. 8. Employers evaluate JobStarter performance during the internship. JobStart opens registration twice yearly: in April and in September. Registration takes place at the PESO on a first-come, first-served basis. For more information, see PESO contact detail list at the back.
  • #13: Rosemarie Left high school Single mother Informal activities- selling food Walk in to JSP registration in QC Was selected and went through lifeskills. Referred to Image Doctor Clinic and selected as a hair transplant technician. After 9 months she was, aling with 4 other women, absorbed by the climic as employees. Concisa is an owner of a garments factory in Cavite, export mainly to Germany, hs about 300 workers. Took on 5 trainees, most are retained.
  • #14: Blue arrows will be animated and added later.
  • #17: Coron Restaurant Consortium The Coron Restaurant Consortium is an association of restaurants in Coron, Palawan, led by Santinos Grill and Restaurant. Collectively, it currently employs 80 people. 72 employees were trained in: Technical Kitchen Skills and Hazard Analysis and Critical Control Points (HACCP) Food and Beverages Services Notable Achievements: 21 participants were certified in Hazard Analysis and Critical Control Points (HACCP) Staff retention is indicated as 100% in 10 of the 12 participating restaurants Staff retention is indicated as 50% in 2 of the 12 participating restaurants Average increase in food sales of approximately 8% Approximately 50% reduction in guest complaints 58% of participants reported a 5% reduction in operational costs