. Republic of the Philippines Mindanao Skills Development Strategy for Poverty Reduction World Bank, Philippines. August 2019 . Page | 0 Table of Contents About this Report……………………………...…………………………………………….…….1 I. Background and Rationale…………………………………………………………………….3 II. Policy Shifts Adopting to Changing Skills Requirements…………………………….………8 III. Regional and Sector Specific Skills Needs in Mindanao…………………………….………13 IV. Skills Development Challenges……………………………………………………………...21 V. Skills Development Agenda………...……………………………………………………….25 VI. Coordination and Implementation Structure…………………………………………………30 References...………………………………………………………………………………...……31 Page | 0 About this Report This report consolidates written outputs from the Technical Assistance to Support the Elaboration of Mindanao Human Resource Development (HRD) Strategy, which was requested by the Mindanao Development Authority (MinDA) and undertaken by the World Bank under the auspices of the Australia-World Bank Partnership Development Trust Fund. The task was to provide technical assistance and advice to MinDA and other government agencies with HRD related mandate, to develop a medium to long-term skills development strategy for Mindanao, as a critical imperative in securing jobs and enhancing productivity that will redound to poverty reduction in the island-region. Launched in 2017, the World Bank’s Mindanao Jobs Report presented a comprehensive strategy for regional development in Mindanao that will support sustainable peace and development, including job creation. Based on extensive consultations with stakeholders in Mindanao, one of the core recommendations of the report is to boost human development, specifically by addressing the growing skills shortage and rising inequality. Building on these efforts, the World Bank has been working closely with MinDA to generate discussions and identify priority actions on HRD, which were not highlighted in the Mindanao 2020 Peace and Development framework. In February 2019, MinDA and the World Bank organized a 2-day workshop participated by government agencies, Mindanao Business Council (MBC), University of the Philippines-Mindanao, and Food and Agriculture Organization (FAO) of the United Nations (UN). A follow-up technical support mission was conducted in April 2019, gathering feedback on HRD program priorities, challenges, and strategic objectives from the Regional Directors of Department of Labor and Employment (DOLE), Commission on Higher Education (CHED), Technical Education and Skills Development Authority (TESDA), and National Commission for Indigenous People (NCIP). Series of key informant interviews and meetings were also conducted with government agencies and chambers of commerce in the Bangsamoro Autonomous Region for Muslim Mindanao (BARMM), Northern Mindanao, South Central Mindanao, and Davao regions in May 2019. This report enumerates a set of priority actions to prepare the human resource needed for the development of Mindanao, across its different subregions' contexts and economic corridors. It can serve as both a blue print and a springboard for subsequent collaboration with various development partners to support interventions and long-term programs in Mindanao. On 13 June 2019, MinDA Undersecretary Janet M. Lopoz apprised the Department of Finance (DOF) about a potential partnership with the World Bank to support a long-term program on skills development and employment agenda in Mindanao. Spearheaded by MinDA, the preliminary draft report was presented to government agencies and MBC on 22 July 2019. It was agreed that MinDA will incorporate additional inputs and gather agency indicative commitments on the identified priority actions. The final report will be presented to the Human Development and Poverty Reduction Cabinet (HDPRC) Cluster in September 2019. The basic information of this technical assistance is summarized below. Title Support to Elaboration of Mindanao Human Resource Development Strategy Agency Mindanao Development Authority Page | 1 Partner Agencies Department of Labor and Employment Department of Education Commission on Higher Education Technical Education and Skills Development Authority National Commission for Indigenous People Main Objective Develop a Skills Development Strategy for Mindanao Key Activities 1. Workshop (11-12 February 2019, Davao City) 2. Technical Support Mission (22-25 April 2019, Davao City) 3. Field Visits (1-10 May 2019, Cagayan de Oro, Cotabato and Koronadal cities) 4. Workshop and Technical Support Mission (22-24 July 2019, Davao City) Implementation MinDA Arrangements - OIC-Chairman and Secretary Atty Nathaniel D. Dalumpines - Undersecretary and Executive Director (Janet M. Lopoz) World Bank - Task Team Leaders (Pablo Acosta and Takiko Igarashi) - Social Protection Specialist (Ruth Rodriguez) - Consultant (Melot Atillo) - Consultant (Arianna Zapanta) - Team Assistant (Regina Calzado) Page | 2 I. Background and Rationale 1. Poverty is high and widespread in Mindanao. In 2015, more than a fifth of the country’s population, equivalent to 22 million individuals, are living below the poverty threshold. By island-region, Mindanao has the highest number of poor residents (8.9 million) with poverty incidence of 36.2 percent (Table 1). By basic sectors1, poverty is high among fisherfolks, farmers, children, women, self-employed and unpaid family workers (Table 2). All regions in Mindanao have poverty incidence numbers that are higher than the national figure of 21.6 percent. ARMM or the Autonomous Region in Muslim Mindanao has the highest poverty incidence at 53.7 percent, which means that more than half of ARMM’s population are considered poor. In addition, three of the five poorest provinces are in this region i.e. Lanao del Sur (71.9%), Maguindanao (57.2%), and Sulu (54.9%) (Table 3). These figures account for large numbers of Mindanawons who live below the poverty line2. Table 1. Population, Magnitude of Poor and Poverty Incidence by Island-Region: 2015 Island-Region Population Magnitude of Poor Poverty Incidence (%) Luzon 57,470,097 7,527,595 13.1 Visayas 19,373,431 5,542,620 28.2 Mindanao 24,135,775 8,856,794 36.2 Total 100,981,437 21,927,009 21.6 Source: 2015 Census of Population and 2015 Family Income and Expenditure Survey (FIES), Philippine Statistics Authority (PSA). Table 2. Poverty Incidence of Basic Sectors by Mindanao Region: 2015 Poverty Incidence (%) Self- Migrant Employed and Individuals Region Senior Farmers Fisherfolks Children and Unpaid Women Youth Formal living in Citizen Family Sector urban areas Workers worker Philippines 34.3 34.0 31.4 25.0 22.5 19.4 13.4 13.2 11.5 Mindanao 46.8 40.1 47.1 38.0 37.4 33.1 24.5 25.3 22.7 Region IX 46.2 34.2 42.8 37.4 33.2 29.8 22.8 22.3 10.6 Region X 54.0 47.6 40.6 36.7 32.3 26.6 23.1 21.1 Region XI 29.3 43.8 31.7 22.1 22.6 19.1 12.8 13.3 11.9 Region XII 45.7 48.4 37.6 38.2 32.4 26.9 24.1 26.4 CARAGA 46.0 38.9 49.1 37.8 38.7 34.2 28.4 30.8 29.7 ARMM 59.4 43.4 63.1 52.4 55.1 50.8 29.7 38.5 36.3 Source: FIES- Labor Force Survey (LFS) 2015, PSA. Note: The poverty incidence estimates for fishermen in Regions X and XII were excluded due to very low level of precision and small sample size. 1 Republic Act 8425 also known as the “Social Reform and Poverty Alleviation Act “refers to the basic sectors as “the disadvantaged sectors of Philippine society, namely: farmer-peasant, artisanal fisherfolk, workers in the formal sector and migrant workers, workers in the informal sector, indigenous peoples and cultural communities, women, differently-abled persons, senior citizens victims of calamities and disasters, youth and students, children, and urban poor. 2 Although the First Semester 2018 Poverty Statistics was recently released, it is not the primary data used as full year estimates are more reliable. See Annex for comparison of FY 2015 and 1 st Semester 2018 poverty incidence. Page | 3 Table 3. Magnitude of Poor Population, Poverty Incidence and Ranks by Province: 2015 Rank by Poverty Rank by Number of Poor Region Province Magnitud Incidence Poverty Individuals e of Poor (%) Incidence Region IX Zamboanga del Norte 588,451 4 51.6 6 Zamboanga del Sur 476,765 7 24.8 23 Zamboanga Sibugay 164,230 21 31.7 18 Isabela City 45,211 26 25.1 22 Total 1,274,657 33.9 Region X Bukidnon 732,027 1 53.6 5 Lanao del Norte 415,967 9 44.3 9 Misamis Oriental 338,972 12 19.3 25 Misamis Occidental 197,324 19 36.9 13 Camiguin 36,182 27 34.0 16 Total 4,269,786 36.6 Region XI Davao del Sur 450,012 8 15.6 26 Davao del Norte 299,673 14 33.2 17 Compostela Valley 178,922 20 28.1 21 Davao Oriental 163,594 22 29.9 20 Total 1,092,200 22.0 Region XII North Cotabato 615,923 3 41.4 10 South Cotabato 411,404 10 24.6 24 Sultan Kudarat 393,833 11 48.0 7 Saranggani 233,164 17 55.2 3 Cotabato City 62,325 24 31.6 19 Total 1,716,649 37.3 CARAGA Agusan del Sur 318,638 13 47.3 8 Agusan del Norte 270,149 15 34.9 14 Surigao Del Sur 248,345 16 40.1 11 Surigao Del Norte 225,181 18 34.7 15 Total 1,990,920 39.1 ARMM Lanao del Sur 725,262 2 71.9 1 Sulu 577,987 5 54.9 4 Maguindanao 551,681 6 57.2 2 Basilan 75,019 23 37.0 12 Tawi-Tawi 60,555 25 12.6 27 Total 1,990,504 53.7 Source: FIES 2015, PSA. 2. Employment numbers are growing, but youth inactivity and underemployment persist. Although the country’s unemployment rate exhibited a downward trend over a ten-year period, Mindanao still contributes to 4 percent or more than 400,000 individuals without work or gainful employment (Table 4). Of the 9.6 million Mindanawons who have work, 4.5 million or 46.4 percent are either self-employed or an unpaid family worker (Table 5). More significantly, many of the underemployed are in poor quality, low-pay jobs. Youth inactivity remains prevalent particularly in ARMM, South Central, and Northern Mindanao3. Of the 5.1 million youth in Mindanao, about 22 percent or 1.1 million of Mindanao youth aged 15 to 24 are not in employment nor in education – an indication of unutilized labor with serious long- term and generational implications4. 3 Annual Poverty Indicators Survey (APIS), 2017, PSA. 4 LFS 2018, PSA. Page | 4 Table 4. Mindanao Key Employment Indicators by Mindanao Region: 2018 Populat ion Labor 15 In the Undere Employ Unempl Undere Force Employ Unempl Years Labor mploy ed oyed mploye Partici ment oyment Old Force ment (‘000) (‘000) d (‘000) pation Rate Rate and (‘000) Rate Rate Over (‘000) Philippines 71,339 43,460 41,157 2,303 6,734 60.9 94.7 5.3 16.4 Mindanao 16,859 10,054 9,646 408 1,717 59.3 96.0 4.0 17.6 Region IX 2,617 1,475 1,414 61 267 56.4 95.9 4.1 18.9 Region X 3,314 2,196 2,107 89 438 66.3 95.9 4.1 20.8 Region XI 3,505 2,112 2,022 91 312 60.3 95.7 4.3 15.4 Region XII 3,150 1,944 1,867 76 318 61.7 96.1 3.9 17.0 CARAGA 1,885 1,215 1,165 49 294 64.4 95.9 4.1 25.2 Source: LFS 2018, PSA. Table 5. Class of Worker in Share to Total Employed and Magnitude by Mindanao Region: 2018 Share to Employed (%) Magnitude (‘000) Wage and Wage salary Unpaid and Unpaid worker Self- family salary Empl Self- family s Employer employed workers workers oyer employed workers Philippines 63.8 3.6 26.9 5.6 26,257 1,489 11,090 2,320 Mindanao 50.1 3.5 37.6 8.9 4,833 337 3,622 854 Region IX 49.0 4.3 38.1 8.6 693 61 538 122 Region X 56.1 3.9 29.2 10.9 1,182 82 615 229 Region XI 64.4 3.7 28.7 3.2 1,301 75 580 65 Region XII 54.2 2.7 35.2 7.9 1,013 51 656 147 CARAGA 52.8 3.2 32.4 11.6 615 37 378 135 ARMM 24.1 3.1 61.8 11.0 258 33 662 117 Source: FIES 2015, PSA. 3. Percentage of Geographically-Isolated and Disadvantaged Areas (GIDAs) is highest in Mindanao. Based on latest 2019 data, two-fifths (41 percent) or 4,100 barangays, in Mindanao are classified as GIDA. This refers to communities with marginalized population physically and socio-economically separated from the mainstream society and characterized by physical factors (i.e. island, lowland, hard-to-reach community) and socio-economic factors (i.e. communities in or recovering from situation of crisis or armed conflict). By region, Region IX registered the highest percentage of GIDA barangays (57 percent) among all Mindanao regions, followed by Region XII (48 percent) and Region X (40 percent). Notably, Zamboanga del Norte has the highest number of GIDA barangays among all provinces in Mindanao with 596 barangays, which is a whooping 86.3 percent of the entire barangay population. Page | 5 Table 6. Number of GIDAs Barangays by Island-Region: April 2019 Number of GIDA Percentage of GIDA Island-Region Number of Barangays Barangays Barangays (%) Luzon 18,724 4,116 22.0 Visayas 10,928 2,663 24.4 Mindanao 10,101 4,109 40.7 Total 39,753 10,888 27.4 Source: Bureau of Local Health Systems Development, Department of Health. Table 7. Number of Barangays in GIDAs, Percentage of GIDAs and Ranks by Province: April 2019 Number of Rank by Rank by GIDA Region Province GIDA Number of Percentage of Barangays (%) Barangays GIDA Barangay GIDA Region IX Zamboanga del Norte 596 1 86.3 1 Zamboanga del Sur 243 5 35.7 19 Zamboanga Sibugay 153 10 39.3 17 Zamboanga City 56 25 57.1 4 Isabela City 29 28 64.4 3 Total 1077 56.6 Region X Bukidnon 196 7 42.2 14 Camiguin 27 30 46.6 12 Lanao del Norte 206 6 44.6 13 Misamis Occidental 124 12 25.3 28 Misamis Oriental 177 8 41.7 15 Total 730 38.5 Region XI Compostela Valley 112 13 47.3 11 Davao del Norte 77 22 34.5 20 Davao del Sur 67 23 28.9 24 Davao Oriental 100 15 54.6 7 Davao Occidental 86 18 81.9 2 Davao City 27 29 14.8 31 Total 469 40.4 Region XII North Cotabato 300 2 55.2 6 Saranggani 78 20 55.3 5 South Cotabato 106 14 53.3 9 Sultan Kudarat 94 16 37.8 18 General Santos City 0 - 0.0 Cotabato City 0 - 0.0 Total 578 48.4 CARAGA Agusan del Norte 48 26 28.7 25 Agusan del Sur 154 9 49.0 10 Dinagat Island 33 27 33.0 23 Surigao del Norte 90 17 26.9 27 Surigao del Sur 77 21 24.9 29 Butuan City 0 - 0.0 Total 402 30.7 ARMM Basilan 58 24 27.6 26 Lanao del Sur 275 3 23.7 30 Maguindanao 273 4 53.7 8 Sulu 136 11 33.2 22 Tawi-Tawi 84 19 41.4 16 Page | 6 Marawi City 12 32 12.5 32 Lamitan City 15 31 33.3 21 Total 853 32.4 Source: Bureau of Local Health Systems Development, Department of Health. 4. Effective skills development systems are essential to improve employment outcomes and reduce poverty. For poverty reduction efforts to be sustained over time, people must be at the heart of the development process as the critical assets of social capital. This means putting human capital and skills development at the center of economic ambitions. Attainment of economic progress requires unlocking the potentials of Mindanawons and creating enabling environment that will support job readiness skills for new entrants to the labor force and upskilling for existing workers to progress in their careers, and at the same time meeting the skills requirements of employers. Skills policies and programs must be designed to facilitate, and not constraint, private sector investments, recruitment strategies, and business efficiency. This will help to leverage additional resources and know-how to expand job opportunities and accelerate economic growth. Access to quality education, skills training, and lifelong learning will enhance employability and competitiveness of the labor force. 5. Investments on human development of Mindanawons will reinforce efforts to peaceful and progressive island region. As the overall coordinator of inter-regional development, MinDA is firm in its commitment to reduce poverty incidence in the island region from 37% in 2015 to 23% by 2022. This policy note aims to present an integrated framework that will serve as guide in framing a skill development agenda as a critical imperative in securing jobs and enhancing productivity. The framework will describe the interconnected pillars of job creation, workforce development, and labor market linkages to address skills gap and mismatches. 6. Ultimately, the objective is to provide a list of strategic options to the government and inform potential long-term financing support and interventions of the World Bank (and possibly that of the other development partners) in Mindanao. A sustained collaborative effort on skills development is required to positively contribute to employment outcomes and attain poverty reduction targets. Page | 7 II. Policy Shifts Adopting to Changing Skills Requirements 7. Multiple skills are needed to thrive in the labor market. Figure 1 provides a summary of the various skill formed throughout the life cycle, taking off from the World Bank Skills Toward Employment and Productivity (STEP) Framework. An efficient skills development system embraces all levels of education and training—from early childhood education through to university and TVET—and provides opportunities for lifelong learning of all types of skills. Skills development crosses institutional boundaries, can be taught in a variety of settings, engages a highly diverse clientele, is delivered in a variety of ways, and responds to constantly changing job requirements.5 With a dynamic labor market and fast-paced technological advancements, the types of occupations and skills requirements of industries and employers are also evolving. The challenge is to better understand these complexities and design policies that meet the growing demand for skills. Notable government policies and related-programs in response to changing labor demand for a mix of cross-sectoral and transferrable skills are described in the succeeding paragraphs. Figure 1. Skills Formation Across the Workers’ Life Cycle Source: World Bank, STEP, 2010. 8. Basic Cognitive and Foundational Skills. The Department of Education (DepEd) oversees the basic education system in the Philippines. Pursuant to the Kindergarten Education Act of 2012 (Republic Act 10157), Kindergarten education is mandatory and compulsory to all five (5)-year old Filipino children to sufficiently prepare them for Grade One by effectively promoting physical, social, cognitive, and emotional skills stimulation and values formation. 5 Building the Skills for Economic Growth in Sri Lanka, 2014, World Bank. Page | 8 The country also instituted the K-12 program with the passage of the Enhanced Basic Education Act of 2013 (Republic Act 10533) to provide enough time for mastery of concepts and skills, develop lifelong learners, and prepare graduates for tertiary education, middle- level-skills development, employment and entrepreneurship. The new K to 12 curriculum framework (Figure 2) aims to holistically develop Filipino with 21st century skills including a) information, media and technology skills; b) learning and innovation skills; c) communication skills and d) life and career skills. It is also designed to enable graduates to join the workforce right after graduating from Senior High School (SHS), and suitably prepare those who want to pursue further training or higher education. Further, to contextualize the K-12 program and to strengthen the institutional capacity in responding to learning needs of the indigenous peoples (IPs), the DepEd adopted the Indigenous Peoples Education Program to develop culturally responsive curriculum and learning resources. To complement this, DepEd has operated a parallel education medium for youth and adults who did not complete basic formal education called the Alternative Learning System (ALS). The ALS includes two core components, the Basic Literacy Program and the Accreditation and Equivalency (A&E) Program. The former aims to eradicate illiteracy among out-of-school youth and adults by teaching basic literacy and numeracy, while the latter targets people who are functionally literate but did not complete basic education. The goal of the A&E Programs is to equip students with the knowledge and skills necessary to pass the national A&E exam, which provides an academic credential equal to formal school’s diplomas in the elementary and junior high school education6. Pursuant to DepEd Order No. 003 s. 2019, an ALS Task Force was created to act as focal point for the coordination and integration of the range of activities under the ALS roadmap towards the full development and operationalization of the Version 2.0 of ALS. 9. Work Immersion. Per DepEd Order No. 30 s.2017, work immersion is a key feature of SHS curriculum. Students undergo work immersion to become familiar with work-related environment in their field of specialization and challenges of employment or higher education after graduation. Specifically, the immersion aims to enable students to: (i) gain relevant and practical industrial skills under the guidance of industry experts and workers; (ii) appreciate the importance and application of the principles and theories taught in school; (iii) enhance their technical knowledge and skills; (iv) enrich their skills in communications and human relations; and (v) develop good work habits, attitudes, and respect for work. Work immersion is a requirement for graduation from secondary education. 6 Igarashi, T. (2018). “A second chance to develop the human capital of out-of-school youth and adults the Philippines alternative learning system�. Page | 9 Figure 2. K to 12 Philippine Basic Education Curriculum Framework 10. Technical Skills. Since 1994, the TESDA has been the mandated government agency tasked to manage and supervise technical education and skills development in the country. In 2017, Republic Act 10931 or the Universal Access to Quality Tertiary Education Act was signed into law providing for free higher education, free TVET, tertiary-education subsidy and student loan program. Under the law, the TVET component gives students free access to training in state universities and colleges, local universities and colleges, TESDA training institutions, and local government run training centers that offer TESDA-registered training programs. In 2019, Republic Act 11230 or the Act Instituting a Philippine Labor Force Competencies Competitiveness Program and Free Access to Technical-Vocational Education and Training (TVET) establishes the Tulong-Trabaho Fund which provides free training fees and additional financial aid such as transportation allowances of qualified beneficiaries enrolling in selected training programs which may be school-based, center-based, community-based, enterprise-based or web-based programs. Beneficiaries include individuals at least 15 years old who are unemployed, not in education and not in training, and employed workers who intend to develop and expand their current skills and training. 11. 21st Century or Soft Skills. With the presence of disruptive technologies and the pace of a rapidly-changing work environment, development of 21st century will prepare the labor force to the future of work. The basic education curriculum incorporates 21st century skills across grade levels, with varying degrees and levels of complexity. There is greater emphasis for soft skills development for SHS students during work immersion. TESDA reinforces this effort by integrating 21st century skills in the basic competencies of various Training Regulations. More significantly, TESDA formulated the National Technical Education and Skills Development Plan 2018–2022 which aims to galvanize and strengthen the TVET sector Page | 10 through a two-pronged strategic thrust: (1) global competitiveness and workforce readiness; and (2) social equity for workforce inclusion and poverty reduction. The Plan’s goals are to create a conducive and enabling environment for the development and quality service delivery of the TVET sector to produce work-ready, globally competitive, green economy workers imbued with 21st century skills or soft skills which refer to personal attributes, personality traits, inherent social cues, and communication abilities needed on the job. Higher levels of socio-emotional skills are correlated with a greater probability of being employed, having completed secondary education, and pursuing tertiary education7. 12. Job-relevant Skills. To apply relevant knowledge and skills acquired from formal learning to actual work setting and become more responsive to the future demands of the labor market, the CHED requires college students to undergo internship in partner establishments for a maximum of five (5) months. The internship aims to develop the life skills of student interns, including those relevant to professionalism, work ethics, communication skills, financial literacy, interpersonal skills, etc. Similarly, the Government Internship Program (GIP) is a government that runs for three (3) to six (6) months to expose students in a real work government setting and equip them with necessary skills and knowledge to increase employability and augment the workforce. GIP is offered to youth aged 18-30, who are in high school or technical-vocational institutes, colleges, and out-of- school youth who are interested to pursue work in the public service sector, both in national and local government units. The National Youth Commission (NYC), the program’s Secretariat, positions GIP as a poverty alleviation program, with implementing government agencies providing allowances to interns amounting to 75 percent of the prevailing minimum wage in the region. 13. Life Skills. One of DOLE’s youth employment program coined as JobStart was institutionalized into law through the passage of Republic Act 10869 in 2016. The program aims to shorten youth school to work transition by offering a complete package of employment facilitation services to enhance employability through life skills training, career coaching, labor market information (LMI), job search assistance, and work experience in a matched employer guided by a customized training plan for up to six (6) months of technical skills training and internship. JobStart provides incentives to employers by subsidizing the technical skills training and administrative costs. The 10-day life skills training includes learning modules that teaches beneficiaries to know their personal aspirations and values to be more responsible in managing their time, money, health, and emotions. They are also taught on how to prepare for job interviews, establish networks, confidently interact with others, and deal with conflict in the workplace. The life skills component has been the center piece of the program with most beneficiaries reporting positive impact on improved confidence and positive job placement outcomes. The life skills training fine tunes the attitude and behavioral skills of young adults as they are about to enter the labor market. Overall, JobStart is a remedial program that reinforces the foundational skills that young adults are supposed to learn in school and at home. Unless and until the education and training curricula 7 “Developing Socioemotional Skills for the Philippines’ Labor Market�, 2017, World Bank. Page | 11 are responsive to the needs of the industry, bridging employment interventions such as JobStart is imperative in developing employable and competitive workforce. Unlike the GIP, JobStart provides opportunities in the private sector and not with the national nor with local government units. Compared to the Apprenticeship program and the Dual Training System which provides in-plant and in-school training, JobStart focuses on those who fall out or were left behind in the education system or those having difficulty getting in the labor market. 14. Digital Skills. The demand for skills is rapidly changing. Digital technologies are leading to automation of routine tasks and transforming jobs involving routine and manual tasks. The Philippines Digital Strategy developed by Department of Information and Communications Technology (DICT), calls for implementation of systems to ensure integration and interoperability of ICT infrastructure and programs across government agencies and support the government’s fight against corruption and poverty. Emphasis is placed on enhancing the capability of government structures and institutions as well as upgrading the ICT skills of the entire bureaucracy. The strategic thrust is on “Investing in People� to address not only the needs of formal sectors, but also of marginalized communities through innovative approaches. Programs will be put in place to support the unique requirements of differently-abled people, IPs, and island communities in the development of content and the method of delivering ICT trainings. Broadband internet access and integration of ICT in curriculum across all levels of education system is a priority to ensure that shortfall of digitally skilled workforce will be addressed. 15. Lifelong Learning and Skills Recognition. The Enhanced Basic Education Act triggered the policy shift from an input- and knowledge-based education and training approach to a learning outcomes approach and practical application of knowledge, skills, and competencies, and the much broader shift to a lifelong learning framework that further underscores the importance of non-formal and informal learning and the need for an expanded system of learning pathways, equivalencies, and credit transfers. In 2018, the Philippine Qualifications Framework (PQF) was enacted into a law, adopting a quality assured national system for the development, recognition and award of qualifications based on standards of knowledge, skills and values acquired in different ways and methods by learners and workers educated/trained in the Philippines. It describes eight (8) levels of educational qualifications differentiated by descriptors of expected learning outcomes along three domains: knowledge, skills and values; application; and degree of independence. The PQF also aims to align domestic qualification standards with the international qualifications framework, thereby enhancing recognition of the value and comparability of Philippine qualifications and supporting the mobility of Filipino students and workers. Page | 12 III. Regional and Sector Specific Skills Needs in Mindanao 16. Younger workers are increasingly active in services and industry. Over a four-year period, more young workers have taken up work in services and industry than in agriculture sector. The share of workers aged 20-29 in agriculture decreased from 38 percent in 2014 to 32 percent in 20188. The share of young workers in services and industry increased by two (2) percentage points and four (4) percentage points to 51 percent and 17 percent in 2014 and 2018, respectively. The employment expansion in industry and services was also observed in older age brackets, signaling a growing shift towards these sectors. Nevertheless, at 32 percent of jobs for youth in 2018, agriculture was the second largest employer of youth and young adults. 17. Despite this, agriculture remains an important sector across all Mindanao regions. While the shift is gearing towards services and industry, agriculture remains as a large employer of Mindanawons (Table 8). According to the 2018 LFS-PSA, 40 percent of the employed in the island-region are in the agricultural sector. In addition, regions with highly urbanized cities like Northern and Southern Mindanao identified manufacturing, power and utilities, construction, Information Technology–Business Process Management (IT-BPM), Banking and Finance, Real Estate, and Education as additional employment generators. This differed from other regions whose industries are mostly in food production and hospitality. Interestingly, the slowest growing regions in recent years, namely ARMM and CARAGA, rely on mining and quarrying for employment9. The hard-to-fill jobs, which include supervisor, engineers and agriculturists, generally require high-level competencies, particularly managerial and technical skills. 18. Agribusiness, Manufacturing, and Hospitality have been identified as key employment generators in Western Mindanao partly reflective of the large growth in these sectors. Manufacturing has remained the largest sub-sector contributing about 25.1 percent share to the region’s economy, followed by Other Services (12.8%) and Agriculture and Forestry (12.0%). While there is demand for engineers in agribusiness, other technical occupations such as agriculturist and farm technicians are hard to find. Competencies in metallurgical engineering, mining engineering and geology are also needed, given the presence of hard-to- fill occupations in these areas. In the hospitality department, the hard-to-fill occupations, such as tour guides, receptionists, and supervisors, require “people skills’, in addition to traditional technical skills in cooking, waitressing, and bartending. 19. Having one of the highly urbanized areas in Mindanao, the employment generator in Northern Mindanao cover various industries. Northern Mindanao or Region 10 recorded the highest labor force participation rate in 2018, which is notable in a region with the second highest population in Mindanao. Likewise, the sectors creating significant employment are 8 Results from LFS 2018 9 Growth is determined by averaging growth rates of gross domestic product from 2015 to 2018. CARAGA and ARMM yielded the lowest averages in Mindanao and in the country at 3.5 percent and 3.6 percent, respectively. Page | 13 vast and varied, with majority coming from the Services sector comprising of Health and Wellness, IT-BPM, Education, and Banking, among others. The Construction sub-sector under Industry is also a key employment generator and will likely remain as such in the medium-term, as it recorded the largest sub-sector growth rate of 16.3 percent in 2018. For Construction, mechanical engineer is both an in-demand and hard-to-fill occupation. 20. Similarly, Davao Region has a wide range of key employment generators, mostly from the Services sector. The occupations that are difficult to fill are mid- to high-level positions such as doctors, branch managers, human resource managers and account executives, which typically require managerial skills. The unprecedented economic activity in Region 11, recording a considerable 8.6 percent growth in 2018, may have stirred demand for new and higher levels of positions to accommodate the economic expansion. By sector, Industry grew the most in 2018, particularly in the Construction and the Electricity, Gas and Water Supply sub-sectors. This signals the need to prepare the workforce in various competencies such as encoding, clerking, geodetic and civil engineering to address the evolving challenges of the sector. 21. Key sectors in Central Mindanao mostly relate to the food industry. Agriculture (i.e. Cacao, Coffee, and Oil Palm), Fishing, Food Production, Food Processing and Aquamarine are among the key industries in Central Mindanao. This may be attributed to the still considerable contribution of the Agriculture sector in the region’s growth at 22 percent in 2018, which is a higher Agriculture share compared to other regions. The job vacancies that are recurrently needed to be filled are service-oriented such as driver, accounting staff, office staff, and electrician. On the other hand, the hard-to-fill occupations are highly technical such as food technician, fishery technologist, agriculturist, and chemist. This also includes those occupations that require professional license, such as veterinary and metallurgical engineering. 22. The in-demand and hard-to-fill occupations in CARAGA are low- to mid-level. The key employment generators in the northeastern region of Mindanao are generally like other regions, such as Agriculture, Fishery, Hotel and Restaurant, Wholesale and Retail, and Mining and Quarrying. However, the needed competencies are mostly low- to mid-level comprising of hotel cleaners, janitors, massage therapists, bookkeepers, and skilled construction workers. The combination of slow economic growth (recorded the lowest growth at 3.2 percent in 2018) and high underemployment (25.4% in 2018) in CARAGA partly reflect the lack of high-quality jobs available in the market. 23. Top industries in Autonomous Region Muslim Mindanao (now Bangsamoro Autonomous Region of Muslim Mindanao or BARMM), are agriculture, energy and petroleum, and mining and quarrying. From 2012 to 2018, the Regional Board of Investments (RBOI) approved investments worth Php 20 billion that recorded 15,507 job generation. Nearly three-fourths or 74 percent is concentrated in Maguindanao, one-fourth or 25 percent in Tawi-Tawi, and the remaining one (1) percent is shared by Lanao del Sur, Page | 14 Basilan and Sulu. By industry, the top industries are Agriculture, Energy and Petroleum, and Mining and Quarrying which comprised 82 percent of investments. In 2018, 1,510 jobs were recorded in ARMM. Table 8. Employment Generators, In-demand, and Hard-to-fill Occupations by Mindanao Region Indicator Region 9- Region 10- Region 11- Region 12- CARAGA ARMM/ Zamboanga Northern Southern SOCCSKAR BARMM Peninsula Mindanao Mindanao GEN Key Agribusiness Agribusiness Agribusiness Agriculture Agriculture Agriculture Employment Manufacturing Manufacturing Banking and Fishing Fishery Energy and Generators Hospitality Power and Finance Whole Sale Hotel, Petroleum Utilities IT-BPM and Retail Restaurant Mining and Construction Construction Trade and Services Quarrying IT-BPM Creative Food Wholesale Telecom Health and Education Processing and Retail Construction Wellness Health and Beauty and Mining and Logistics Hotel, Wellness Wellness Quarrying Trading Restaurant and Hotel and Cacao, Coffee Tourism Restaurant and Oil Palm Wholesale and Owner, Real Aquamarine Retail Trade Estate and Food Banking and Dwellings Production Finance Transport and Transport and Logistics Logistics Wholesale and Ownership, Retail Dwellings and Power and Real Estate Utilities Education Mining Manufacturing In-demand Professional Chemist Marketing Accounting Value- Occupations Engineers Mechanical Officer Staff Adding Electrical Engineer Customer Engineering Technologist Engineers Chemist Service Purchaser BPO Agricultural Call Center Assistants Cashier Managers Engineers Agent Inbound and Branch Virtual Heavy Dentist Outbound CSR Manager Assistants Equipment Front Office Administrative Electrician Hotel Worker Agent Clerk Service Crew Cleaners/Ho Cooks Sales Person Graphic Driver use Keepers/ Baristas Collector Designer Office Staff Utility and Skilled Waiters Automotive Teachers Sales Janitors Painter Nurse Associate Massage Licensed Broker Food and Therapists Accountant Beverage Autocad Manager Designers Senior Project and Engineers Operators Accounting Heavy Personnel Equipment Accountant Operators Linemen Skilled Mining construction Engineer workers Encoders Accounting clerks and bookkeepers Page | 15 Geodetic and Mining Engineers Teachers Hard-to-fill Agriculturist Chemist Budget Analyst Food Same as Occupations Agricultural Mechanical Accountant Processor/Foo above Engineer Engineer Officers d Technician Farm Chemist Reports Analyst Fishery Technician Call Center Branch Manager Technologist Metallurgical Agent Graphic Agriculturist Engineer Dentist Designer Veterinarian Mining Cook Teachers Mining and Engineer Leasing Doctor Metallurgical Geologist Manager Food and Engineer/Tec Tour Guides Collector Beverages hnician Receptionists Communication Manager Chemist Supervisors Specialist Business Machinist Licensed Broker Development Teachers Officers Human Resource Manager Account Executive Linemen Geodetic Engineer Civil Engineer Source: JobsFit 2022 Regional Reports, DOLE; 2018 Annual Comprehensive Accomplishment Report of the Regional Board of Investments (RBOI)-ARMM. Note: In-demand occupations refer to job vacancies posted recurrently by establishments and industries and have a high turnover or replacement rate. Hard-to-fill occupations refer to job vacancies where the company is having difficulty filling because applicants are not qualified or there is no supply of applicants. Page | 16 IV. Skills Development Challenges 24. High shares of unemployed graduates indicate skills mismatch and need for career guidance and mentoring. Unemployment is largely a problem of the youth (aged 15-24), as the youth unemployment rate is more than twice the national rate. Despite completing basic education, high school graduates have the highest share of unemployed youth (25 percent) in Mindanao, followed closely by those who did not complete high school (24 percent) and college graduates (20 percent)10. This suggests a pervasive skills mismatch between what the industry demands and what the graduates can provide as well as a need for adequate jobs counseling and mentoring catered to secondary and tertiary students to arrive at informed decisions in choosing a career track. In addition, high rates and prolonged periods of youth neither in education institutions nor employed (NEE) may damage labor market prospects and ultimately increase poverty risk. In 2018, youth in Mindanao was recorded at 22 percent. For males, the most common reason for not attending school is the lack of personal interest and the high cost of education, while it is mostly marriage or family matters for females11. 25. The magnitude of unemployed graduates may also be attributed to teachers’ limited delivery of academic and socio-emotional skills. A report using a nationally representative sample has indicated that Filipino elementary and high school teachers have a weak basic content knowledge, especially for Science and Mathematics12. Historical data of the Teachers’ English Proficiency Test and Process Skills Test in Science and Mathematics (TEPT-PSTM) confirmed the lower competencies in Science and Mathematics relative to English, fluctuating around the same level across all island-regions including Mindanao. This suggests that teachers may not have the full command of the curriculum as is ideal to teach the curriculum effectively. Another report focusing on teachers’ practices suggests that Mindanao teachers do well in terms of classroom management (opportunities to learn, supportive learning environment) but struggle with key aspects of instruction (asking thinking questions or prompt critical thinking, checks for understanding) and fostering socio-emotional skills (perseverance, social and collaborative skills, autonomy)13. 26. On the employer side, establishments confirm the applicants’ lack of competency for hard-to-fill jobs. Based on a nationwide survey of establishments with at least 20 workers, the most common reason why vacancies are hard to fill is because of the lack of needed competency or skill, comprising 31 percent of the total responses14. Over the past six (6) years, the number of firms that report inadequate workforce skills rose by 30 percent. Interestingly, two-thirds of the employers reported difficulty finding workers with an adequate work ethic 10 According to the January 2018 round of the LFS, students and graduates of primary school hold another 20 percent share of youth unemployed and those who did not complete college hold 12 percent. Only January 2018 round is used because succeeding rounds adopt exclusively the K to 12 levels, leaving out the high school graduate category. 11 Results from the 2017 APIS. 12 Al-Samarrai, Samer (2015). “Assessing Basic Education Service Delivery in the Philippines: The Philippines Public Education Expenditure Tracking and Quantitative Study.� World Bank. Washington, D.C. 13 World Bank (2018). “Teacher Practices in Mindanao: Results of the Teach Classroom Observation Study�. 14 Results from the 2015/2016 Integrated Survey on Labor and Employment (ISLE). Page | 17 or appropriate interpersonal and communication skills. Because the education and vocational training sector has been slow to meet the demand for socio-emotional skills development, the proportion of firms that provide worker training has doubled over the past six years, and firm- based training increasingly focuses on socio-emotional skills15. In sum, these suggest the key role of traditional cognitive and technical skills as well as socio-emotional skills in the Philippine labor market. 27. The poor are likely to have limited access to educational opportunities and technical- vocational programs. Children and youth from lower income households are more likely to be out-of-school, as about one-half of out-of-school children and youths belong to families whose income fall at the bottom 30 percent based on their per capita income16. In ARMM where close to 50 percent of youth and adults aged 16-30 are out-of-school (double of the national average of 23 percent), only 3 percent of these OSYA are covered by the ALS versus the national average of 10 percent, and financial issues is the top reason for dropping out among ALS learners17. About 88 percent of formal TVET trainees in Mindanao have completed secondary education or higher18. This high intake rate is mainly because TVET in the Philippines is regarded as a complement to basic education; thus, provided after trainees have completed secondary education. In contrast, there are only very few programs that cater to trainees with less than secondary education; an example is TESDA’s Special Training for Employment Program (STEP) which is a community-based specialty training program catering to OSYs as it is open to those at least 15 years old, regardless of whether they completed high school or not. However, this program is not regular like other TVET programs and the training courses that lead to certificates of competency tend to be recognized by only few employers. 28. The impact of Fourth Industrial Revolution and digital technologies poses challenges on skills obsolescence, automation of routine and non-cognitive jobs, and emergence of new forms of occupations. While this may depend on the industries’ speed of adopting to new technologies and digitalization, the current and future workforce must adopt a habit of lifelong learning in a time where skill demands are constantly shifting, and new occupations and technologies have yet to surface. Mid-level and high-level skills will be more in demand; ICT skills and soft skills are also increasingly becoming significant. The education system must ensure its learners and workers acquire foundational cognitive and socio-emotional skills as well as ICT literacy before developing technical and higher order skills. Continuous skills upgrading should be encouraged.19 15 World Bank Enterprise Surveys 2009, 2015; World Bank (2017). “Developing Socioemotional Skills for the Philippines’ Labor Market�. 16 Results from APIS 2017. According to the PSA, OSCY refers to family members 6 to 14 years old who are not attending formal school; and family members 15 to 24 years old who are currently out of school, not gainfully employed, and have not finished college or post-secondary course. 17 World Bank. “Unlocking the Potential of the Bangsamoro People through the Alternative Learning System�. Forthcoming. 18 Results using the LFS January 2018. 19 National Technical Education and Skills Development Plan 2018-2022, TESDA. Page | 18 29. This study also gathered stakeholder views on the skills development challenges in Mindanao. Below is a summary of key issues and concerns raised during the consultations and focus group discussions: a) K-12 program implementation challenges are numerous and complicated. The DepEd expressed challenges in matching resources with needs and in proper deployment of resources. The former relates to the kind of formal and non-formal education offered vis- a-vis the prevailing economic activities or employment opportunities in the locality while the latter implies low access to educational institutions by those residing in far-flung areas or country sides. Apart from access and skills need profiling, the quality of education is hampered by teachers’ lack of mastery of assigned subjects and familiarity with industry context; insufficient learning resources; delays in construction of school facilities; and availability of ICT packages. b) SHS enrollment is skewed to academic track. DepEd Region X reported that 47 percent of students preferred the academic track while only 37 percent for technical vocational- livelihood (TVL) track. Percentage of those who took the Arts and Design Track and Sports Track is negligible. This trend is validated by a tracer study the region conducted, showing majority of that SHS graduates proceeded to college while only 2.3 percent are engaged in entrepreneurial jobs and 17.5 percent are into wage jobs. However, both DepEd and TESDA admitted further improvements needed in tracking SHS graduates, specifically how many proceeded to further TVET, those placed in jobs, and into which industries they ended up working. c) The bulk of on-the-job trainees or interns to be accepted is more than the capacity of the industries. For this reason, there are only a few long-term internships that industries can handle. This also entails lesser exposure time of students in the workplace. d) There is limited labor market information. Labor market data is important for the academe to constructively align the expected learning outcomes of their existing degree programs with that of the needs of the stakeholders. Relevant labor market data can also be used as basis for career guidance sessions and mentoring. For example, enrollment in agriculture and other related fields is diminishing due to students’ preference towards “office work� in the services sector. e) For employers, job-skill mismatch is the top concern. Significant in-company trainings are still being done by employers because graduates are not job ready and most applicants accepted jobs different from their line of study or formal education. In the IT-BPM industry, despite meeting the requirements of the job, some applicants do not get hired because they failed the job interview. f) One observation shared by stakeholders is that high school and TVET graduates have less chances of being hired-on-the-spot when there are job fairs because prospective Page | 19 employers prefer to hire those that have graduated from four-year courses or have had previous job experiences. TVET graduates who are national certificate holders or TESDA certified workers are not the priority applicants of industries/companies as they prefer college graduates regardless of the position or skills requirement. In this case, employability of TVET graduates is in peril.20 g) The National Commission on Indigenous Peoples (NCIP) expressed its concern over the IP scholarship grantees who no longer desire to go back and work in their communities. Most of the IP graduates took courses not needed in the development of their ancestral domains like engineering and agriculture. The NCIP also lamented that there are no IP graduates in medical and legal professions to take care of the IPs’ health and defend them of their rights. h) In BARMM, the Ministry of Basic, Higher, and Technical Education (MBHTE) faces the challenge of identifying appropriate livelihood or employment activities to offer the decommissioned 40,000 rebel returnees as only a few of them can be absorbed either by the government or by private companies. At the same time, the MBHTE must transition into a new structure which practically covers the mandates of DepEd, CHED, TESDA and Madaris. For the newly-created Office of the Bangsamoro Youth Affairs or OBYA, they expressed the need for continuous capacity building (e.g. trainings for basket weavers on marketing/market linkage and promotions, product improvement and quality control) for beneficiaries of Livelihood and Employment Assistance Program. 20 Regional Development Reports, NEDA, 2018. Page | 20 V. Skills Development Framework 30. Mindanao Jobs Report: A Strategy of Mindanao Regional Development. In 2015, the World Bank engaged with a broad-based group of stakeholders to craft a strategy for regional development in Mindanao that will be critical in reducing the poverty in the entire island group and, ultimately, in the Philippines. The Mindanao Jobs Report emphasized that the central challenge for Mindanao is how to accelerate inclusive growth—the type that creates more and better jobs and reduces poverty. Following extensive consultations with Mindanao’s leaders and stakeholders, the report offered three main recommendations, namely: (1) raising agricultural productivity and improving farm-to-market connectivity; (2) boosting human development; and (3) addressing drivers of conflict and fragility and building up institutions in Autonomous Region in Muslim Mindanao (ARMM) and conflict-affected areas. 31. Mindanao 2020. Inclusive growth that translates to poverty reduction for all people in Mindanao is a central development policy consideration of the island region. It was on this same backdrop that the “Mindanao 2020� articulated the objective to attain a “sustainably uplifted quality of life� to narrow the development gap of the poor and vulnerable communities for “Mindanawons of all cultural and socioeconomic backgrounds�. The plan envisions a “Mindanao where no one is deprived – where people are able to develop their potentials as individuals and as communities; build trust and solidarity across regions and diverse cultural identities; and live and work in full respect of the ecological and spiritual systems of which they are part and draw sustenance from.� It aims to transform Mindanao into an integrated, cohesive, peaceful and dynamic area. Lasting peace is one of Mindanao 2020’s core goals that could be achieved when all combatants and private armies are demobilized and rendered non-existent within a gunless Mindanao society; with families, communities and institutions rebuilt and healed from conflict, war, epidemics, and past natural disasters. 32. Human Development Poverty Reduction Cabinet Cluster. Per Executive Order 43, s.2011, the Human Development and Poverty Reduction Cluster is mandated to focus on improving the overall quality of life of the Filipino by translating the gains of good governance into direct, immediate, and substantial benefits that will empower the poor and marginalized segments of society. In particular, the Cluster shall pursue the following goals: a) making education the central strategy for investing in our people, reducing poverty and building national competitiveness; b) recognizing the importance of advancing and protecting public health; c) building of the capacities and creation of opportunities among the poor and the marginalized; d) increasing social protection and engaging communities in their own development; e) Promotion of equal gender opportunities in all spheres of public policies and programs; and f) ensuring effective coordination of national government programs for poverty reduction at the local level. In 2017, Sub-Cluster 1 was formed with member agencies including, MinDA, DepEd, CHED, TESDA, National Commission on Culture and Arts (NCCA), Department of Agriculture (DA), National Anti-poverty Commission (NAPC), Department of Science and Technology (DOST), and Commission on Filipinos Overseas (CFO). The Sub-Cluster has the objective to “make education a central strategy for investing in people, reducing poverty and building national competitiveness� and identifies two outcomes, namely: 1) enhanced employability and 2) increased entrepreneurial competencies. Page | 21 The Sub-Cluster identified the following strategies: education towards lifelong learning; government assistance and subsidies; training and certification, and scholarship opportunities. 33. Institutionalization of the Whole-of-Nation approach. Per Executive Order 70, s. 2018, the Whole-of-Nation approach is institutionalized as a government policy for the attainment of inclusive and sustainable peace. This entails prioritizing and harmonizing the delivery of basic services and social development packages in conflict-affected areas and –vulnerable communities, facilitate societal inclusivity, and ensure active participation of all sectors of society. To this end, a National Task Force to End Local Communist Armed Conflict is created to formulate and implement a Whole-of-Nation approach-driven National Peace Framework and to ensure inter-agency convergence in the implementation in conflict-affected and –vulnerable communities. The National Peace Framework will contain principles, policies, plans and programs that will bring inclusive and sustainable peace, and address the root causes of insurgencies, internal disturbances and tensions as well as other armed conflicts and threats in identified areas. The Framework will include a mechanism for localized peace engagements or negotiations and interventions that is nationally orchestrated, directed and supervised, while being locally implemented. 34. JobsFit Labor Market Information (LMI) Report 2022. In 2019, DOLE published the “JobsFit LMI Report 2022� as part of the government’s convergent efforts to address prevailing job-skill mismatch underlying the unemployment and underemployment challenges of the country. It enumerates the industries that would create jobs as well as the in-demand and hard to fill skills needed for the future. The top employment generating sectors consistent with the Ambisyon Natin 2040 are IT-BPM; Wholesale and Retail Trade; Transport and Logistics; Manufacturing; Construction; Agribusiness; Banking and Finance; Hotel, Restaurant, and Tourism; Education; and Health and Wellness. JobsFit also includes an action agenda to address skills and labor market gaps and challenges. 35. National Technical Education and Skills Development Plan (NTESDP) 2018–2022. Spearheaded by TESDA, the NTESDP 2018-2022 is the medium-term plan for the entire TVET sector with a vision of “Vibrant Quality TVET for Decent Work and Sustainable Inclusive Growth.� Towards this end, the Plan promotes three strategic responses: 1) agility to keep pace with the future requirements of the Fourth Industrial Revolution; 2) scalability to provide industries with enough qualified work force to complement their economic growth; and 3) flexibility and sustainability to address the needs and demands of most of the population and basic sectors. This overall theme will be achieved through the three-pronged strategic response of (1) Agility, (2) Scalability, and (3) Flexibility and Sustainability. Agility would require preparing quickly the Philippine workforce for global competitiveness and future world of work. Scalability aims to intensify and scale-up TVET programs to address the growing demand for job-ready and quality workforce. Lastly, flexibility and sustainability components aim to deliver more practical, culturally-sensitive approaches to cater to the needs of the disadvantaged sector. 36. Guided by the Mindanao Jobs Report, Mindanao 2020, the Whole-of-Nation approach, and the HDPRC outcomes and strategies, Figure 3 illustrates a proposed Skills Development Page | 22 Program Framework for Poverty Reduction. The framework is built on the pillars of Education and Training, Employment Facilitation, and Workforce Development. 37. Education and Training. At the core of the pillar on education and training is the development of foundational and socio-emotional skills that will sufficiently prepare students to occupy high-productivity jobs while at the same time remaining adaptable to the evolving demands of the labor market. Basic education is a vital prerequisite to whichever career path a student will pursue. The full implementation of the K to 12 Program needs to be pursued and disparities among regions in terms of key performance indicators (i.e. provision of classrooms and teacher proficiency) shall be addressed. This also would include increasing efforts to keep children in school, as the failure to complete basic education can severely damage their labor market prospects in the medium- and long-run. Without key foundational skills, the prospects for jobs, earnings, and productivity gains are bleak.21 Another key component is enhancing the access and desirability of skills training through TVET (e.g. apprenticeship, STEP, etc) and youth employment programs like JobStart which can improve competencies and wages especially for OSY or inactive youth. University education, as the last stage of formal education, increases higher order thinking skills, fosters innovation, and promotes lifelong learning. Figure 3. Skills Development Program Framework for Poverty Reduction 38. Employment Facilitation. Employment facilitation covers a wide range of services including provision of timely LMI, career coaching, job search assistance, and job matching activities 21 Systems Approach for Better Education Results, World Bank Group Education Global Practice, 2016. Page | 23 whether face-to-face via job fairs or through online digital platforms. The objective of employment facilitation is to connect jobseekers to job opportunities and if needed, provide them with bridging programs such as training, coaching and mentoring. Employment facilitation also seeks to provide work for or increase the employability of people with certain disadvantages. A key element of a dynamic labor market is a high-quality and accessible Labor Market Information System (LMIS) that serves as a reliable platform to both employers and jobseekers, especially the vulnerable groups. The PhilJobNet serves as the government’s web-based LMIS, job search, matching, and referral portal. Career guidance and mentoring also play a key role in helping jobseekers particularly for prospective or new entrants in the labor force to gain confidence and make informed decisions about their desired trajectory, whether it is seeking employment locally or abroad. This includes developing targeted services and programs for special groups, such as the Overseas Filipino Workers (OFWs) who may aim to eventually reintegrate in the domestic economy and the persons with disabilities who may face difficulties in finding a suitable employer. Although created by Republic Act 8759 in 1999, not all local government units have established and operational Public Employment Service Offices (PESOs) as employment facilitation service machinery. To improve employment facilitation services at the local levels entails strengthening the service delivery, efficiency, and accountability of the PESOs. The effectiveness of the employment facilitation services can be enhanced through better linkages with academe and industry as the supplier and primary user of skills, respectively. Industry linkage can improve responsiveness of academic and skills training programs and better inform PESOs on the evolving demands of the workplace. 39. Workforce Development. The private sector is a major stakeholder and key partner of government and academe in skills development to meet the needs of the labor market. Skills constraints make it harder for employers to innovate and expand to more profitable business ventures. Therefore, employers need to invest in equipping workers with job specific skills and prioritize the career development to improve worker productivity. As the technologies of the Fourth Industrial Revolution create new pressures on labor markets, upskilling and reskilling initiatives are imperatives to ensure that businesses have the pool of talent for the jobs of the future. 40. Cross-cutting Themes. The program framework also considers the importance of responsive institutions, capacity development activities, efficient information systems, enabling skills policies and long-term plans, and regular monitoring and evaluation. Page | 24 VI. Skills Development Agenda 41. Taking off from the skills development challenges and anticipated skills needs in Mindanao described in the earlier sections and aligned with Mindanao 2020 aspirations, figure below illustrates the expected outcomes, goals and vision for skills development in the island region. In terms of specific strategies, Table 9 enumerates specific actions based from the inputs and feedback gathered from stakeholder consultations and workshops organized by MinDA in partnership with the World Bank. The strategy matrix also draws from the action agenda and programming strategies of the JobsFit Report 2022 and the National Technical Education and Skills Development Plan 2018-2022. Figure 4. Mindanao Vision, Strategic Goals and Outcomes on Skills Development Vision Goals Skilled and employable Mindanawons able to meet the human resource requirements across economic sectors and develop their full potential as individuals and as communities. They have productive work and competitive earnings to live peaceful and comfortable lives. Strategic Goals Medium-term: At least 400,000 unemployed individuals are provided with immediate jobs and 1.7 million underemployed individuals in Mindanao have quality long-term jobs by 2025. Long-term: Poverty incidence in the island region reduced to 20% by 2030. Outcomes Improved governance in Enhanced skills, employability and Increased involvement of implementation of employment entrepreneurial competencies of private sector in and skills development policies the labor force workforce development and programs 42. The priority beneficiaries of the Program Strategy will come from the basic sectors and former combatants. Republic Acts 8425 and 11291, also known as the “Social Reform and Poverty Alleviation Act� and the “Magna Carta of the Poor�, respectively, define “basic sectors� to include the disadvantaged sectors including farmer-peasant, artisanal fisherfolk, workers in the formal sector and migrant workers, workers in the informal sector, indigenous peoples and cultural communities, women, differently-abled persons, senior citizens, victims of calamities and disasters youth and students, children, urban poor and members of cooperatives. Further, considering the high percentage share of GIDAs in Mindanao and the disarmament/reintegration of thousands of rebel groups as a result of peace negotiations in conflict affected regions, it is also critical to reach out and provide skills development and economic opportunities to poor households and former combatants. Page | 25 Figure 5. Timelines for Mindanao Skills Development Program Targets Social preparation in Social preparation in place for the third place for the fifth batch batch of provinces of provinces Baseline Study Social preparation in 200 thousand 300 thousand place for the first batch individuals benefited individuals benefitted Program Beneficiaries: of provinces from the program from the program 2.1 million unemployed and 2020 2021 2022 2023 2024 underemployed indivuals Year 1 Year 2 Year 3 Year 4 Year 0 from the poorest provinces in Mindanao Social preparation in Social preparation in place for the second place for the fourth batch of provinces batch of provinces 100 thousand 200 thousand individuals benefitted individuals benefitted from the program from the program Impact Evaluation Mid-term Evaluation 2026 2028 2029 2030 2025 2027 Year 6 Year 8 Year 9 Year 10 Year 5 Year 7 Social preparation in Social preparation Social preparation Social preparation Social preparation Social preparation place for the sixth batch in place for the in place for the in place for the in place for the in place for the of provinces seventh batch of eight batch of ninth batch of tenth batch of eleventh batch of provinces provinces provinces provinces provinces 300 thousand individuals benefitted 200 thousand 200 thousand 200 thousand 200 thousand 200 thousand from the program individuals benefitted individuals benefitted individuals benefitted individuals benefitted individuals benefitted from the program from the program from the program from the program from the program Page | 26 Table 9. Skills Development Program Strategy Matrix. Outcomes Key Actions and Strategies Basic Sectors/ Lead Agencies 1. Enhanced Skills, Employability and Entrepreneurial Competencies of the Labor Force Graduating SHS and college Conduct policy review and evaluation of SHS work Children/Students students are getting into immersion and college internship programs Youth meaningful work immersion programs and internships. Mainstream socio-emotional, life skills and digital literacy modules in work immersion and internship programs Provide government incentives and recognition to DepEd, CHED companies and partner institutions that accept SHS and TESDA, DOLE college interns NYC Students and jobseekers are Improve career guidance advocacy by intensifying Children/Students making informed education, information on various SHS tracks and career Youth training, and career choices. pathways Develop compendium of TVET and colleges courses, and possible employment opportunities after course completion and certification Design and implement community and school-based youth mentoring programs DepEd, CHED Recognize successful IP graduates who went back to TESDA, DOLE their ancestral domains to help their communities NYC, NCIP Jobseekers have access to Promote information on key industry sectors as well as Children/Students relevant labor market current and future in-demand, hard-to-fill, and Youth information. emerging occupations Migrant and formal sector workers Utilize digital platforms to reduce transaction cost and Self-employed and shorten job search period Unpaid Family Workers Intensify public information on government assistance for returning OFWs/migrant workers DepEd, CHED TESDA, DOLE NYC Poor and disadvantaged groups Redesign and expand implementation of community- Youth have access to community-based based training programs (e.g. STEP) to respond to the IPs trainings. training needs of the basic sectors Women TESDA, NCIP NAPC Farm schools and agricultural Provide school vouchers and scholarships to student Youth training services are accessible to applicants interested in taking agriculture, fisheries, Farmers the most vulnerable sectors. eco-tourism and maritime related courses IPs Presence of TVET centers in the Women countryside through the farm Support the establishment of farm schools inside schools promotes appreciation to ancestral domains of IPs as a poverty reduction strategy agriculture sector among young under the Ancestral Domains Sustainable Development people. and Protection Plan (ADSDP) Page | 27 Rollout training of agricultural extension workers through Agricultural Training Institutes DA, TESDA, NCIP Coverage of and advocacy for Intensify information campaigns on various Youth government education and government scholarship offerings and financial IPs financial assistance are assistance to students, especially those from poor expanded. families in GIDAs Provide special financial assistance (not merit based) to DepEd, CHED children of IPs and rebel returnees NCIP, NYC Jobseekers utilize and trust the Develop policy requiring all schools to support Students PESOs. activities that will increase student awareness of PESO Youth services including field visits in their local PESO and Migrant and formal pre-employment seminars as part of work immersion sector workers and internship curriculum Senior citizens Individuals living in Conduct client satisfactory survey of PESO services to urban areas inform rebranding strategy IPs DOLE, DepEd Philippine Overseas Employment Agency (POEA) More young women are taking Increase scholarship grant allocation to support Women Science, Technology, enrollment of more women in TVET and STEM courses Engineering and Mathematics (STEM) courses. Women are Develop customized soft and technical STEM-related encouraged to participate in the skills and targeted mentorship and leadership program DOLE, TESDA labor market and advance career for women DOST, DTI, opportunities in STEM-related Philippine jobs in high-growth sectors. Identify and recognize Mindanao women who have Commission on been successful in STEM careers Women (PCW) Young Filipinos are encouraged Develop courses and training modules on social Children/Students to takes social entrepreneurship entrepreneurship and technopreneurship to cater to Youth and technopreneurship SHS and college students Conduct policy review on the implementation of Republic Act 10679 or the Youth Entrepreneurship Act of 2014 DepEd, TESDA Provide scholarship opportunities and free trainings to DTI, NYC, DOST. students from priority provinces who take the SHS Department of Trade entrepreneurial track and/or related college courses and Industry (DTI) 2. Increased Private Sector Involvement in Workforce Development Employers are investing more in Develop policy measure that enjoins companies to offer Migrant and formal the upskilling and re-skilling of training and education scholarship grants to their sector workers their workforce to improve employees for continuing professional development and Women productivity and career advancements Youth competitiveness. Senior Citizens Train employees for higher set of digital skills e.g. artificial intelligence (companies in IT-BPM) DOLE, POEA, TESDA, professional Regulations Commission (PRC) Employers hire more high Provide government incentives and recognition to Youth school and TVET graduates. companies who accept considerable number of high Page | 28 school and TVET graduates, especially for entry-level jobs DOLE, NYC There are models of effective Develop policy measure to institutionalize involvement Youth government-academe-industry of industry in influencing entrepreneurship curriculum Senior citizens collaboration that promotes design and internship programs for the youth Migrant and formal quality skills development, sector workers better job marching and higher Document good practices of effective government- Women job placement rates. academe-industry partnership DOLE, DepEd, CHED, TESDA 3. Improved Governance and Strengthened Partnership in Implementation of Employment and Skills Development Policies and Programs Un/underemployed and Conduct impact evaluation study of DOLE’s Tulong Displaced workers displaced workers have access to Panghanapbuhay Para sa mga Disadvantaged/Displaced Self-employed immediate and short-term jobs. Workers (TUPAD), main emergency employment workers (including program of government which implements social, farmers and economic, and agro-forestry community projects fishermen) who lost their livelihoods Redesign the TUPAD model and implement a regular because of natural community works program linked with active labor calamities/disasters, market policies economic crisis, armed conflicts Accelerate implementation of Bangon Marawi Women Comprehensive Rehabilitation and Recovery Program, Youth particularly the employment activities Low/minimum wage earners Provide immediate, short-term jobs to decommissioned Seasonal workers, rebel returnees Senior Citizens All affected in the Marawi Siege DOLE, MinDA TESDA, NAPC Public employment services are Customize employment facilitation services based on Youth responsive to the skills international good practices to cater to the special Senior citizens requirements of employers. needs of basic sectors Migrant and formal sector workers Women DOLE Teachers and trainers are Support for capacity building, industry immersion, and Children/Students competent to deliver skills professional development of teachers and TVET Youth development programs. trainers TESDA, DepEd CHED Government uses labor market Conduct graduate tracer studies to measure Children/Students and skills information to predict employability of graduates by SHS track, TVET Youth and develop policy responses to course, and/or college discipline future skills needs (skills anticipation). Constitute a Mindanao Skills Advisory Panel that will MinDA, DOLE tackle emerging labor market issues and develop skills TESDA DepEd related policies CHED Page | 29 VII. Coordination and Implementation Structure 43. The implementation arrangements incorporate core elements of identified strategies in Table 9, with emphasis on targeted approach and agency collaboration. Implementation will be informed by the context and needs of the poorest areas that require intervention. Figure 4 shows an inter-agency coordination structure that considers various levels of oversight from national to region-specific. Pursuant to Executive Order No. 32, the cabinet-level HDPRC will be the highest policymaking body to oversee the implementation of this Strategy. The core agency members will include the DOLE, DepEd, DA, DTI, CHED, TESDA, NCIP, and NAPC which will be regularly consulted on matters related to the implementation. The Mindanao-wide counterpart is the Steering Committee led by MinDA and participated by the same member implementing agencies. Unlike the preceding platforms which are existing and high-level, a new Technical Working Group (TWG) dedicated solely to policy-making program implementation oversight will be constituted to perform the initial analysis and response to issues for approval of the Steering Committee. Supporting the TWG is a Project Management Team (PMT) that will lead the execution of the Strategy on the ground. It is key that other implementing agencies also identify counterpart Project Management Officer who will serve as focal point for field concerns. The PMT will also manage the coordinators assigned to each region and will relay concerns to the TWG for advice and response. 44. At all levels of implementation, the platforms will observe the underpinning principles of culture sensitive programs (particularly with respect to IPs), advocacy for continuous/lifelong learning, and convergence of efforts as a poverty reduction strategy. Figure 6. Coordination and Implementation Structure Techncial National Regional Region- and Oversight Oversight Specific Project Platform Platform Platform Oversight Region IX Technical Human Working Region X Development Steering Group and Poverty Committee Reduction (Chaired by Region XI Cabinet MinDA) Cluster Project Management Region XII Team CARAGA BARMM Page | 30 References Al-Samarrai, Samer (2015). “Assessing Basic Education Service Delivery in the Philippines: The Philippines Public Education Expenditure Tracking and Quantitative Study.� World Bank. Washington, D.C. Commission on Higher Education. (2017). 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