FOR years now, I have continually sounded off an alert that such megatrends as technology, demographic shift, and climate change/global warming are changing the skills required for work in the future.
We are glad that the Department of Labor and Employment (DOLE) has taken note of this reality and, together with DepDev (formerly NEDA) and DTI, crafted the Trabaho Para sa Bayan Plan that aims to address skills shift and other emerging employment issues.
Recent newspaper reports noted the emerging dearth of talent in the Philippines, including news about 18.9 million functionally illiterate Filipinos. The Philippine Statistics Authority (PSA) clarified, “Based from the 2024 Functional Literacy, Education and Mass Media Survey (FLEMMS), the 19 million refers to the estimated number of 10 to 64 years old who are basically literate but not functionally literate because of lack of comprehension skills, regardless of highest grade completed. It does not also refer to the ‘functionally illiterate’ high school graduates (old and K to 12 curriculum) and junior high school completers (K to 12 curriculum).”
Moreover, the estimated number of not functionally literate high school graduates, including junior high school completers aged 10 to 64 years, is 6.45 million in 2024. On the other hand, the number of the not functionally literate among the 10 to 64 years old, regardless of highest grade completed, is estimated at 24.83 million.” (PSA Release, Ref 2025-185, May 19, 2025)
Another newspaper reported, “The country’s labor market is shifting towards skilled occupations, prompting the DOLE to intensify its efforts in sustaining jobs creation through its newly-launched 10-year employment strategy.
“Notable gains were recorded in sectors such as education, administrative and support services, arts and entertainment, fishing, aquaculture, and health and social work — generating more opportunities for skilled and semi-skilled workers.
“This shift signals an improving labor market that is better aligned with the evolving needs of the economy,” DOLE Secretary Bienvenido Laguesma said.” (Trixee Rosel, Manila Bulletin, May 9, 2025)
The right kind of skills
To create jobs, the country needs investments — foreign or domestic. Next, there must be available workers with the right kind of skills. That’s an oversimplification of the demand and supply sides of employment.
Following are excerpts from my May 6 interview with Michelle Ong on ANC’s program “Market Edge” on how the Philippines can bridge the skills gaps. I spoke from the viewpoint of the American Chamber of Commerce of the Philippines.
Addressing the skills gaps needs an all-of-society approach. In the 2020 Arangkada Forum of the Joint Foreign Chambers, Kaushik Das of McKinsey warned that 19 million Filipino employees’ jobs will be at risk unless they undergo a massive reskilling and upskilling. In the next five years, we expect that technology, demographic shift, climate change and geopolitical developments will continue to reshape the workplace and change the skills needed to do business and succeed in careers.
For the Philippines to be globally competitive, all stakeholders and social partners must collaborate to systematically assess the current level of skills, identify the specific skills needed in the future, and implement interventions to educate, train and develop the future Filipino workforce.
While it is obvious that there is a widening gap in digital skills today, Filipinos will also need social or enabling skills. While many of these skills are commonly required in the three major economic sectors — services, manufacturing and agriculture — there are also distinct and unique skills in each sector. Those involved in reskilling and upskilling should focus on developing technological and social skills.
Some foreign IT experts tell me that the Philippines’ typical IT collegiate course seems to lack the depth that will make graduates hit the ground running on day 1 in several IT-related occupations. Unfortunately, these jobs will be more in demand in the ongoing 4th and 5th Industrial Revolutions. While schools teach basic computing and applications, graduates will need more actual exposure in advanced computing, cloud computing, machine learning, blockchain, AI, and Internet of Things.
Social skills will be needed for workers to interact with each other, including such skills as communication, collaboration, customer orientation, etc.
Critical thinking is another soft skill for workers to solve problems, think creatively, and make good decisions. To stay relevant in the future, workers must develop adaptability, resilience and learning agility.
A one-size-fits-all strategy to develop these skills will no longer work. Education and training institutions must revisit their strategy of cramming 50 students in a classroom and just letting what teachers want to teach. They should consider offering learning solutions on demand, with micro-credentialing arrangements, at the time and pace of the learners to supplement formal education.
The author is chairman of the Human Capital Committee and the Publications Committee of the American Chamber of Commerce of the Philippines (AmCham); chairman of the Employers Confederation of the Philippines’ (ECOP) TWG on Labor and Social Policy Issues; and past president of the People Management Association of the Philippines (PMAP). He can be reached at [email protected]
