Skills For The Post Pandemic Labor Market Draft 3
Skills For The Post Pandemic Labor Market Draft 3
Skills For The Post Pandemic Labor Market Draft 3
BACKGROUND
TESDA as the primary government agency tasked to provide relevant, accessible, high
quality and efficient technical education and skills development (TESD) in the Philippines,
should be able to provide the necessary education and training support that is responsive
to these changes and impacts. This report seeks to provide insights and information on the
labor market in a post-pandemic situation, in order to provide guidance to the agency in
recalibrating its priorities for TESD.
II. ECONOMIC IMPACT
The following are the economic forecasts for the Philippines (as of August/ September
2020):
2020 2021
International Monetary Fund -8.3% 7.4%
Institute of International Finance -7.5% 7%
Asian Development Bank -7.3% 6.5%
Asean+3 Macroeconomic and Research Office -7.6% 6.6%
(Amro)
NEDA -5.5% 6.5-7.5%
The National Economic and Development Authority (NEDA) estimated that the foregone
revenues (excluding losses in the transport sector) during the 45-day Extended Community
Quarantine (ECQ) is roughly at PHP1.1 trillion, representing 5.6 percent of the GDP. While
the community quarantine rules have been generally relaxed since May 2020, some of the
economic activities have not been fully restored and operational. Thus, economic losses are
still being experienced. The latest report from the Philippine Statistics Authority (PSA)
showed that the Philippines’ Gross Domestic Product (GDP) has declined by 16.5% in the
second quarter of 2020. The sectors that have positive growth rates are the Public
administration and defense; compulsory social activities, Financial and insurance activities,
information and communication, and Agriculture, forestry and fishery. The possible reasons
for the positive growth rates in the sectors are due to the continuing demand for the goods
and services of the sectors. The accommodation and food service activities, other service
activities, and transportation and storage experienced the steepest decline, as these sectors’
activities have been limited, or not allowed, due to the strict quarantine measures imposed
to prevent the spread of the virus.
There is a general recognition for the need to open the economy to achieve growth.
However, critical to economic growth is the need for citizens to be confident that COVID-
19 is under control. Countries that have restored confidence—or are close to doing so—
have seen economic activity return or begin to return to pre-crisis levels. The OECD
estimates that “for every three months’ delay in getting the virus under control across OECD
countries, the recovery of GDP to pre-crisis levels could be delayed by as much as six
months.”
a. Employment Situation
COVID-19 will have far-reaching impacts on labour market outcomes, especially on the
sectors that have been severely affected by the lockdowns.
As shown in the latest Labor Force Survey results, the Philippines reached a record-high
unemployment rate of 17.3% in April 2020, accounting for 7.3 million unemployed Filipinos,
which reflects an employment situation aftermath of the COVID-19 economic shutdown.
But due to the ease in quarantine restrictions with more industries allowed to operate, the
unemployment rate in July 2020 has been reduced to 10%, accounting for 4.6 million
unemployed Filipinos. The Mining and quarrying, Construction, and Wholesale and retail
trade; repair of motor vehicles and motorcycles have experienced the largest growth in
employment between April and July 2020.
Table 1: Employment by Major Industry Group, Philippines: July 2020, April 2020 and July
2019
Total
Agriculture ('000) 10,870 9,731 8,743 11.7 24.3 10,870 9,731 8,743
Agriculture and Forestry (%) 9,752 8,313 7,647 17.3 27.5 89.7 85.4 87.5
Fishing and aquaculture (%) 1,117 1,418 1,096 (21.2) 1.9 10.3 14.6 12.5
Industry ('000) 7,785 8,053 5,745 (3.3) 35.5 7,785 8,053 5,745
Mining and quarrying (%) 243 204 154 19.3 57.8 3.1 2.5 2.7
Manufacturing (%) 3,373 3,701 2,702 (8.9) 24.8 43.3 46.0 47.0
Electricity, gas, steam and air
conditioning supply (%) 83 74 61 12.2 35.9 1.1 0.9 1.1
Water supply; sewerage, waste
management and remediation activities
(%) 52 55 48 (5.0) 8.6 0.7 0.7 0.8
Construction (%) 4,034 4,018 2,779 0.4 45.1 51.8 49.9 48.4
Services ('000) 22,651 24,737 19,276 (8.4) 17.5 22,651 24,737 19,276
Source: PSA
Measures that have been taken to mitigate the health crisis, such as social distancing
and closures in retail, transport, restaurants, hotels, and other service industries will hit
low-paid and insecure workers particularly hard. Low-paid workers (full-time workers
earning less than two-thirds of the national median) represent around 15% of all full-time
employees across OECD countries on average.
Teleworking may reduce some of the immediate economic impacts of social distancing
measures, but in practice it is restricted to a small share of workers. In the study of Dingel
and Neiman (2020) on the number and types of jobs that can be performed at home, 361
occupations out of nearly 1,000 occupations in the United States (US), or 37% of total
occupations, can be performed at home. In addition, Dingel and Neiman also reported that
only 26% of jobs in the Philippines are teleworkable.
Using the classification made by Dingel and Neiman, a similar study 1was conducted by the
Asian Institute of Management. According to their study,
Only 105, or 26% of occupations can be classified as teleworkable. This confirms the
initial findings of Dingel and Nieman.
1
Webinar entitled “Telework Potential in the Philippines” held on 21 October 2020
o Craft and related trades workers – 20%
o Managers – 17%
o Service and sales workers – 4%
Another development that was brought by the pandemic is the reliance on contingent or
gig workers. According to the Baruch College of the City University of New York, contingent
workers do not have an implicit or explicit contract for employment, or do not have an
employer- employee relationship. These workers are also considered independent
contractors, freelancers, or self-employed workers. The ILO attributes the rise of gig workers
“to long-term trends of non-standard work arrangements, and the rise of the platform
economy or gig economy which has become a major game-changer.” Gartner predicts that
reliance on these workers instead of hiring full-time employees is being undertaken as a
cost-saving measure. While the exact number of workers is difficult to estimate, the ILO
reports that available estimates range from 0.7 to 34% of workers. The United States’ Bureau
of Labor Statistics estimated that in 2017,
there are 5.9 million contingent workers, comprising 3.8 % of total US employment;
Age Percentage
16 to 24 years 27.5
25 to 54 years 55
55 years and older 17.4
Contingent workers aged 25-54 years old are found across all levels of educational
attainment
Educational attainment Percentage
Less than a high school diploma 13.50%
High school graduates, no college 22.1
Some college or associate degree 20.9
Bachelor's degree or higher 43.5
Status Percentage
Usually work part time 40.80%
Usually work full time 59.2
More than 30% of contingent workers are employed in Education and health
services industry
Industry Percentage
Agriculture and related industries 3.20%
Mining, quarrying, and oil and gas extraction 0.2
Construction 10.8
Manufacturing 6.3
Wholesale trade 1
Retail trade 6.2
Transportation and utilities 4.1
Information 1.6
Financial activities 2.6
Professional and business services 14.9
Education and health services 31.3
Leisure and hospitality 9.3
Other services 5.3
Public administration 3.3
More than 30% of contingent workers are in Professional and related occupations
Occupation Percentage
Management, business, and financial
operations occupations 7.90%
Professional and related occupations 31.2
Service occupations 17.1
Sales and related occupations 4.9
Office and administrative support
occupations 11.3
Farming, fishing, and forestry occupations 2.7
Construction and extraction occupations 10.6
Installation, maintenance, and repair
occupations 2
Production occupations 4.6
Transportation and material moving
occupations 7.7
However, more than half of the contingent workers prefer permanent employment.
One of the issues raised about contingent work and not being employed
permanently is the constant search for new contracts, and thus require continuous
development of skills.
Technological transformation has also accelerated during the pandemic, and this
development has changed the way things are done, and have definite implications on the
nature of work, stressing the need for adoption and adaptation. The need to adopt and
adapt will require skills that are not be limited to task-oriented or technical skills, but will
require more holistic job skills. The World Economic Forum reports that “companies want
people with an eye for detail, creative problem solving skills, a collaborative mindset and an
ability to deal with ambiguity and complexity.”2
b. Opportunities
i. International/Global
Burning Glass Technologies, a data analytics firm in the employment field, has coined the
term “Lifeboat Jobs”, which refers to jobs that can serve as “lifeboats” for at least some of
those who have lost work and that did not require advanced training, education, or a license,
as well as jobs that are growing, or declining at lower rates in the market. In addition, these
jobs are not dead-end occupations, and offer pathways for longer-term opportunities in
terms of salary increase and career development.
2
https://www.weforum.org/agenda/2020/09/reckoning-for-skills/
Occupation Job Postings from Growth from
week of 3/2 to week of 3/2 to
week of 4/20 week of 4/20
Shipping, Receiving, and Traffic Clerks 10,175 59%
Driver/Sales Workers 28,739 28%
Personal Care Aides 28,888 4%
Mental Health Counselors 9,312 4%
Computer and Information Research 6,637 -6%
Scientists
Janitors and Cleaners, Except Maids and 37,246 -7%
Housekeeping Cleaners
Cashiers 31,459 -12%
Respiratory Therapists 8,987 -19%
Stock Clerks and Order Fillers 51,948 -19%
Home Health Aides 17,305 -20%
Burning Glass has also generated data on the job postings by industry and
occupation in the following countries: Australia, Canada, New Zealand, Singapore,
United Kingdom and the United States of America. Industries with the highest
demand for workers, and the types of jobs can be inferred based on these data.
As to job postings by industry, the Health Care industry has the highest demand for
workers in 4 out of 6 countries.
As to occupations, the Professionals rank highest in 4 out of 6 countries, and health
care professionals is highest in the United States.
LinkedIn also provides insights on in-demand jobs. According to its September 2020
data, in-person essential workers continue to be in high demand. And as economies
start to reopen, some of the in-person work have started to increase. The Security
Officer has the highest demand, followed by Delivery Specialist, then Retail Sales
Specialist.
LinkedIn also reports while economies are reopening, jobs that limits in-person
interaction, as well as those that enable digital transformation, continue to be in-
demand. Delivery Specialist has the highest increase in demand, followed by Full
Stack Engineer and Javascript Developer.
ii. Local
The imposed lockdowns and community quarantines saw the limit to physical
interaction among peoples and goods. In the study of Cruz and Muyrong (2020),
they mentioned about sectors to be prioritized to adapt to efforts to combat
COVID-19. Apart from health services, the selected sectors are needed to ensure
food supply for households (e.g. agriculture, food processing), and services needed
to facilitate distribution of these supplies and transactions (e.g. land transport,
wholesale and retail trade, logistics, fuel products, financial transactions).
Based on the status of the sectors identified as high or low risk in the time of
pandemic, the following are the jobs that will be needed and will be created:
Source:http://timesofindia.indiatimes.com/articleshow/762
59292.cms?utm_source=contentofinterest&utm_medium=
text&utm_campaign=cppst
Marketing/Advertising skills
Digital marketing
Business intelligence and data
analytics
Branding and public relations
Creative design/graphic design
Other Skills
Social media coordination and
community management
Adopting innovation and new
technologies
Communication for Digital
Transformation
Business Continuity (Planning and
Management)
Customer Service
Emerging Skills/Jobs
Medical Coder
Robotics Processor
Automation
Artificial Intelligence
Cybersecurity
Data Analytics
Virtual Reality
Mobile Crane
o Crane Operator
3 https://www.dti.gov.ph/news/locally-manufacture-ppes/
At least 80% capacity utilization
Manufacture of machinery except electrical
Printing
Textile
Jobstreet.com, one of Asia’s leading online employment advertising platforms, said in their
August 2020 COVID-19 Job Report the following job functions that will most likely be in
demand in the next 6 months are in accounting (33%), sales/CS/business development (31%),
IT (26%), administration and human resources (24%), and engineering (20%). They are also
much more likely to be at a junior/entry level (78%).
IV. SKILLS NEEDS
Below are the skills needs based on the identified In-Demand Jobs during the Enhanced
Community Quarantine (ECQ) and their corresponding TESDA Training Regulations (TR):
Fundraiser
Industry/Sector Jobs/Skills Requirements Training Regulation
Janitors and Cleaners, Except
Maids and Housekeeping
Social, Community
Cleaners
Development and Other
Security Officer Security Services NC I
Services
Security Services NC II
Delivery Specialist
Documentation Clerk
Cashiers
Customer Service Associate Customer Services NC II
Driver/Sales Workers Driving NC II
Gasoline Girl/Boy
Grocery Bagger
Grocery Storekeeper
Janitor
Retail Sales Specialist
Salesperson
Shift Leads
Store Associate
Teller
Vehicle Mechanic Automotive Servicing NC I
Automotive Servicing NC II
Automotive Servicing NC III
Automotive Servicing NC IV
Motorcycle/Small Engine Servicing NC
II
V. TVET CAPACITY
Enrolled, Graduated, Assessed and Certified per Qualifications, 2019
2019
Industry/Sector Training Regulation
Enrollment Graduates Assessed Certified
Animal Production (Poultry-Chicken) NC II 4,449 3,442 5,707 5,452
Aquaculture NC II 401 281 1,590 1,531
Fish Capture NC II 80 48 89 89
Agriculture,
Forestry and Agricultural Crops Production NC I 3,702 3,120 6,449 6,302
Fishery
Agricultural Crops Production NC II 5,020 3,820 15,520 14,620
Agricultural Crops Production NC III 3,505 2,504 7,153 6,881
HEO (Paver) NC II
HEO (Hydraulic Excavator) NC II 3,773 3,368 7,994 7,795
Construction
Masonry NC I 2,032 1,565 2,087 1,963
Masonry NC II 6,716 5,246 9,449 8,975
Masonry NC III 50 43 84 78
HEO (Truck Mounted Crane) NC II 100 75 1,520 1,510
Warehousing Services NC II 68 59
21
Transportation, Driving (Articulated Vehicle) NC III
Communication and Storage
and Logistics 6
HEO (Forklift) NC II
58
Automotive Servicing NC I 292
Automotive Servicing NC II 331
Wholesale and Retail Trade Automotive Servicing NC III 11
Automotive Servicing NC IV 4
Motorcycle/Small Engine Servicing NC II 63
Customer Services NC II 14
Driving NC II 404
Multi-industry/Sector
Security Services NC I 49
Security Services NC II 70
Competency Assessment
Industry/Sector Training Regulation
Assessors Centers
Animal Production (Poultry-Chicken) NC II 119 39
Agriculture, Aquaculture NC II 30 9
Forestry and
Fishery Fish Capture NC II 2 1
Agricultural Crops Production NC I 68 47
Competency Assessment
Industry/Sector Training Regulation
Assessors Centers
Agricultural Crops Production NC II 189 87
Agricultural Crops Production NC III 98 38
Organic Agriculture Production NC II 275 121
Reinforcing Steel Works NC II 8 3
Carpentry NC II 206 113
Carpentry NC III 29 14
Heavy Equipment Operation (Bulldozer) NC II 39 26
HEO (Transit Mixer) NC II 5 4
HEO (Paver) NC II 2 1
HEO (Hydraulic Excavator) NC II 84 53
Construction
Masonry NC I 52 43
Masonry NC II 154 110
Masonry NC III 23 9
HEO (Truck Mounted Crane) NC II 17 13
Pipefitting (Metallic) NC II 44 2
Rigging NC I 18 14
Scaffolding Works NC II (Supported Type
29 30
Scaffold)
Financial and
insurance Bookkeeping NC III 300 276
activities
Health and Barangay Health Services NC II 22 21
Wellness
Contact Center Services NC II
Biomedical Equipment Services NC II 5 3
2D Animation NC III 35 12
3D Animation NC III 12 12
Animation NC II 28 15
Information
Medical Coding and Claims Processing NC III 1
and
Communicatio Game Programming NC III 1
ns Technology
Programming (.Net Technology) NC III
TESDA has crafted its operational plan in response to the COVID-19 pandemic
according to its mandate of providing Technical-Vocational Education and Training
(TVET). The mission of the plan is “for the agency to contribute to the nation’s food,
health and job security, and be able to adapt to a ‘new normal’ state in carrying out its
mandate of providing skills to Filipinos and a job and livelihood after.” The objective of
the plan is “to come up with relevant policies and programs to help society adjust to the
new normal that are agile and flexible.
In line with this plan, the sectors that will be prioritized in technical education and skills
development are Agriculture, Health, ICT, and Construction. Scholarship programs, as
well as development and review of TRs will focus on these sectors.
Flexible and dynamic training delivery methods are also being developed by utilizing
mobile training vans and mobile learning facilitators under the TTIs in the conduct of
trainings in the communities/barangays, along with multi-dimensional/cross sectoral
program packages, especially in agriculture which can be delivered in the communities
using the family farms or barangay lots as laboratories. ICT-based modality in the
conduct of training programs, including the TESDA Online Program (TOP), shall be
utilized.
The TESDA Online Program (TOP) is one of the TESDA's initiatives while face-to-face
trainings are not allowed. TOP can be accessed through the TESDA App, downloadable
from Google Play and Apple Store. Currently, the TOP offers a total of 68 online courses,
available to all who would like to acquire new skills in the convenience their own homes
thru computers and mobile phones.
TESDA has launched the Integrated Organic Farming System Program (IOFSP) which
aims to integrate production systems such as dairy, poultry, livestock, fishery,
horticulture, apiculture, sericulture, among others with agriculture crop production as
its base, increase farm resources-use efficiency, and maintain environmental quality and
ecological stability. The target beneficiaries are the farmer-beginners, farmers, out-of-
school youth, Overseas Filipino Workers (OFWs), Indigenous People, rebel returnees,
and other individuals who are interested to learn agri-fishery. In addition, qualified
trainees shall be trained for free. This program is essential as the need for food security
arises amid the coronavirus disease (COVID-19) pandemic, TESDA Technology
Institutions (TTIs), community farms, and farm schools will be utilized as organic farming
training grounds in the country. Family farms and other farm schools will be registered
with at least four integrated farm subsystem programs, while TTIs will serve as the
demonstration farm system of IOFSP. TTIs should have at least 500 square meters of
lot; IOFS Curriculum; Site layout based on actual inspection of training facilities, tools,
equipment, supplies, and materials; and List of qualified trainers.
The Rice Extension Services Program (RESP) is a component of the Rice Competitiveness
Enhancement Fund (RCEF) under RA 11203 otherwise known as the Rice Liberalization
Act. The beneficiaries of the scholarship program for RESP are all rice farmers,
farmworkers, and their dependents listed in the Registry System for Basic Sector in
Agriculture (RSBSA), rice cooperative and association members. TESDA shall collaborate
with other government agencies for the implementation of the program.
OFWs who have returned to the country, and/or who have lost their jobs during the
pandemic are among the target beneficiaries of TESDA’s scholarship programs for
training, as well as free assessment.
VII. WAY FORWARD
Re-skilling is identified as one of the key thrusts in the economic recovery of the country,
TESDA as the authority in technical vocational education and training will definitely play a
critical role to help the country rise from the devastating impact of COVID-19 to the
Philippines, especially to those individuals whose possessed skills became obsolete in the
“New Normal”.
In order for TVET programs to be responsive on the needs of the in-demand jobs during
the COVID-19 pandemic, the following are recommended for TESDA.
TESDA has to develop new TRs and training programs, as well as update the existing
TRs and training programs, to be more relevant and responsive to the labor market
needs. The updating of TRs and training programs should have the minimum health
standards in place and enforced. Continuous consultation with industry and other
relevant stakeholders is necessary to determine the skills priorities. The following
identified jobs still do not have TESDA TRs:
Delivery Specialist
Documentation Clerk
Transportation, Communication
Multimodal Transport Operator
and Storage and Logistics
Shipping, Receiving, and Traffic Clerks
Stock Clerks and Order Fillers
Cashiers
Retail Sales Specialist
Salesperson
Wholesale and Retail Trade
Shift Leads
Store Associate
Teller
On MSMEs, clear policy on the assistance that will be provided to this sector in terms
of skills training should be formulated. Dialogues with the players in the MSMEs
should be accelerated to determine the necessary interventions. This can be done
at the national and local level to quickly response to the need of this sector.
TESDA to continuously improve the content and other mechanisms of the TESDA
Online Program in providing learning opportunities to the Filipinos who would like
to learn new skills through online learning. Also, the development of online
programs on qualifications under the sectors with significant growth should be
prioritized.
Essential skills and socio-emotional skills would be very vital as the economy is
transforming into “New Normal”. These competencies once acquired would help
TVET graduates easily adopt in the fast-changing requirements in the workplace
brought by the current situation. TESDA’s role is not only in ensuring that this is part
of the standard but most especially in the delivery of training and evaluation of the
acquisition of learning.
VIII. REFERENCES
Burning Glass Technologies (2020). Filling the Lifeboats Getting Americans Back to Work in
the Pandemic. Retrieved from: https://www.burning-glass.com/research-
project/filling-lifeboats-getting-america-back-work-after-pandemic/
Burning Glass Technologies (2020). Tracking COVID-19 Impact in Six Countries. Retrieved
from: https://www.burning-glass.com/research/open-data-job-postings/
Dingel, J.I. and Nieman, B. (2020) How Many Jobs Can be Done at Home? Retrieved from:
https://bfi.uchicago.edu/working-paper/how-many-jobs-can-be-done-at-home/
International Labour Organization. Helping the gig economy work better for gig workers.
Retrieved from: https://www.ilo.org/washington/WCMS_642303/lang--
en/index.htm
Kosanovich, Karen. (2018) A Look At Contingent Workers. U.S. Bureau of Labor Statistics.
Retrieved from: https://www.bls.gov/spotlight/2018/contingent-
workers/pdf/contingent-workers.pdf
Lewis, Gregory. “The Most In-Demand Jobs Right Now”. Retrieved from:
https://business.linkedin.com/talent-solutions/blog/trends-and-
research/2020/most-in-demand-jobs