TVET Outlook

THE PHILIPPINE TVET OUTLOOK
2005-2010
Table of Contents
Page
I. INTRODUCTION
A. The TVET Development Context 2
1. The Medium-Term Philippine Development Plan 2
(MTPDP 2004-2010)
2. The National Technical Education and Skills 2
Development Plan (NTESDP) 2005-2009
3. The Provincial Skills Priorities (PSPs) 2005-2007 3
4. The National Manpower Summit 2006 4
B. Implications on TVET 7
II. THE TVET PROFILE

A. TVET Capacity
1. The TVET Capacity 8
2. TVET Enrolment, Graduates and Employment 11
3. The TVET Trainors 12
B. TVET Quality Assurance Mechanisms
1. Training Regulations 13
2. TVET Registered Programs 14
3. Assessment and Certification 16
C. Mechanisms in TVET
1. Ladderized Education Program 17
2. Youth Profiling for Starring Careers 18
3. PGMA Training for Work Scholarship Program 19
III. MANPOWER DEMAND AND SUPPLY

A. Overall Manpower Demand and Supply Situation 21
B. Sectoral Manpower Demand and Supply Analysis 28
IV. RECOMMENDATIONS
A. Financial Interventions 74
B. Non-Financial Interventions 76
ANNEXES
Table 1. Medium-Term Macro Economic Targets (Growth Rate, in percent)
Table 2. Medium Term Philippine Development Plan Priority Sectors: 2004-

2010
Table 3. Second Cycle NTESDP Harmonized Priority Sectors: 2005-2009
Table 4. Training Regulations by Priority Sector
Table 5. Registered Programs by Priority Sector
Table 6. Assessment and Certification by Priority Sector, 2005
Table 7. Critical Skills Demand by Region and Priority Sector: 2005-2007
Table 8. Summary of Demand and Supply by Priority Sectors: 2005-2010

I. INTRODUCTION
1.1 Employment Challenges
Winning the war against poverty remains to be the most daunting

challenge of the Administration of President Gloria Macapagal-Arroyo. At the
core of poverty in the country is joblessness. People without jobs and without
sources of income will remain poor unless they are given the opportunity to get
out of the shackle of poverty. The creation of six to ten million jobs in the next six
years which is at the forefront of the development agenda of the President is a
strategic response to this challenge.
The MTPDP, 2004-2010 indicates that with the domestic economy

growing by at least 7 percent, total job generation is expected to reach 9.7 to
11.5 million by 2010. This accounts for an average 1.4 to 1.6 million new jobs
every year. Most jobs will be created in the services sector at 5.8 to 7 million or
about 60 percent of total job generation. The agriculture sector comes next and is
expected to create 2 to 2.3 million jobs with the development of 2 million hectares
of agri-business lands. Industry is expected to create 1.9 to 2.2 million jobs. See
Annex Table1. Medium-Term Macro Economic Targets and Table 2. Medium-Term
Philippine Development Priority Sectors: 2004-2010).
Based on agency programs and estimates, tourism is expected to create 3

million; agribusiness 2.8 million; housing 1 million; ICT 0.8 million; exports 0.7
million; and mining 0.2 million. The realization of these employment projections
from the different sectors is expected to contribute to bringing down
unemployment in the country which is targeted to be at 8.9 percent by 2010, 3.2
percent lower than the 2004 level of 12.1 percent.
As of October 2005, employment increased to 32.9 million from 31.7

million registered in the same period in 2004. Statistics also show that
employment grew across all three sectors of the economy: services, agriculture
and industry. The highest employment growth is registered by the services sector
reaching 739,000, followed by agriculture with 390,000, and industry with 6,000.
Despite marked improvement in employment and the prospects of

generating more jobs, challenges remain but opportunities are likewise available.
It is noted that unemployment rate is still significant at 10.3 percent as of October
2005. The bulk of unemployed is among the youth in the age bracket 15- 24
years old, accounting for 48 percent of the total unemployed. Majority of the
unemployed in this age group (42.6 percent) have at least high school education.
They are unskilled, inexperienced, and naturally, unemployable. With the
magnitude of unemployed placed at about 3.8 million, this is translated into more
than 1.8 million youth without jobs and without proper education. On the other
hand, about 34 percent of the unemployed in this age bracket are those who
have reached college levels. This is approximately 600 thousand educated
people not finding employment. Based on statistics, the incidence of
unemployment tends to increase with the years of education. In 2002, only 6.7
percent of those with at least elementary education are unemployed; 13.2
3
percent, with at least high school education; and 15.4 percent with college
education. This is an indication of our educated unemployment problem.
This situation is an indication of structural unemployment problem. This is

a result of: first, skills mismatch between the requirements of the available jobs
and the skills possessed of those seeking employment; second, geographic
mismatch between locations of job opening and job seekers; and third, not
having the right quality and right quantity of manpower at the right time This kind
of distortion is highly evident in the Philippine labor market. There exist labor
supply-demand gaps. While shortages of skills are pronounced in certain
occupations and areas in the country, oversupply of other skills are likewise
observed. Therefore, a surplus and shortage of manpower exist at the same
time.
1.2 Development Context
The direction of the TVET sector today is anchored on the following:
The Medium Term Philippine Development Plan (MTPDP) 2004-2010
The Medium-Term Philippine Development Plan (MTPDP) 2004-2010 sets

the larger frame within which efforts of both public and private sectors shall be
pursued. The MTPDP is the government’s roadmap to alleviate poverty for the
greater number of the Filipino people. It spells out the essential tasks in
attaining this vision . Essentially, it states that the country must open up
economic opportunities, maintain socio-political stability, and promote good
stewardship – all to ensure a better quality of life for its citizens.
The MTPDP envisions the following 10 point-legacy of the Arroyo

administration by year 2010:
1. Ten million jobs shall have been created. It expects three million
entrepreneurs to have received support through loans, helping them
become good managers and making them more productive by developing
thru agri-business, two million hectares of land.
2. Everyone of school age will be in school. This means that provision of
additional school buildings shall be built to create an uncrowded
environment and in surroundings conducive to learning.
3. The budget shall have been balanced with the right revenue collected and
spent on the right things is ensured.
4. The network of transport and digital infrastructure to connect the entire
country is established.
5. Electricity and water for all barangays have been installed.
6. Metro Manila will have been decongested .
7. The Subic and Clark corridors will have become the most competitive
international service and logistic center.
8. Automated elections will no longer raise doubts about their integrity.
9. Peace will have come to Mindanao and all insurgency areas.
10. The divisive issues generated by EDSA 1, 2, and 3 will have had a just
closure.
4
The Technical Vocational Education and Training (TVET) plays a vital
role in addressing the poverty alleviation thrust of the MTPDP. TVET is seen
as a major element in the country’s development as it addresses the skills
training requirements of those who are already in the labor market and those who
would need to upgrade or develop new competencies to enhance employability
and improve productivity in accordance with the needs of the industry. This is
expected to contribute to the overall economic development of the country.
The National Technical Education and Skills Development Plan (NTESDP)

2005-2009
With MTPDP as the backdrop , the Second Cycle NTESDP 2005-2009

was formulated through multi-sectoral participation and was approved by the
Social Development Committee-Cabinet level on June 2, 2005. It provides the
framework that will guide and unify all TVET initiatives into a common thrust
which will enhance the country’s resources and alleviate Filipino workers from
the claws of poverty through job and livelihood generation that will eventually
propel economic growth.
The Second Cycle NTESDP 2005-2009 envisions to develop a globally

competent Filipino workforce. The Filipino workers shall be highly sought after,
capable of providing quality goods/products and services in the workplace, both
in local and international labor markets. To achieve this vision, the NTESDP
shall guide the achievement of the following national development objectives:
Decent and Productive Employment. This means that productive

employment is available, from which is derived adequate income for all at work.
Sufficient productive employment is available and workers have full access to
income earning opportunities. Essential to decent employment is a continuous
enhancement of competencies through building up of capabilities for skills
training on global competitiveness and positive work ethics. Industry and
employees shall support this process by pursuing their institutional human
resources development programs for their workers.
Quality TVET Provision. Standards on systems, processes and

procedures among TVET providers will be applied accordingly to ensure quality
graduates/workforce.
Supply Matches Demand. It is recognized that economic growth triggers

socio-economic improvements. However, the provision of training programs will
be guided by adequate and timely labor market information, both in terms of
quantity and quality set by industries, especially in critical occupations and in
areas where there is high demand.
The Plan focuses on three key result areas :
Improved Access and Equity in TVET. Opportunities shall be made

available and affordable for all clients to include but not limited to special clientele
groups like women, differently-abled persons, and indigenous people, among
5
others. Relevant and timely information on training opportunities will be made
available for prospective beneficiaries.
Improved Assessment and Certification. There shall be an increased

number of TVET graduates with verified/validated competence to perform a
particular skill according to quality standards defined by industry. Moreover, the
registry of certified TVET graduates is readily available to prospective employers,
both for local and overseas employment.
Enhanced Employability of TVET Graduates. This is the environment

where TVET graduates have improved access to employment opportunities both
here and abroad. Graduates will also have improved prospects for
entrepreneurial and self-employment endeavors.
Provincial Skills Priorities (PSP) 2005-2007
The PSPs serves as the twin document of the NTESDP. The PSPs
outlines the critical skills in the 23 priority sectors in the provinces nationwide
which were identified in consultation with industry partners and endorsed by the
TESD Committees in the provinces and regions. The Policy-oriented, Sector-
focused, Area-based and Labor Market-driven (PSALM) Approach in TVET
Planning was used as guide in the identification of critical skills that would
respond to the requirements for national and international competitiveness.
(See Annex Table 3. Second Cycle NTESDP Harmonized Priority Sectors:
2005-2009)
2.1 TVET Capacity

The TVET Providers
There are 4,510 TVET providers in the country today, majority of which are
private. Sixty two percent (2,786) of the providers are private and 38% (1,714) are
public. The public TVET providers include the 121 TESDA Technology Institutes
composed of 57 schools, 15 Regional Training Centers, 45 Provincial Training
Centers and 4 Specialized Training Centers.
The NTESDP 2005-2009 targets to increase the number of TVET providers to

9,079 by the end of the 5-year plan period particularly among the LGUs and the
enterprises.
6
Figure 1. TVET P
TVET Providers (4,510

Pu
Private 1
2,796
TVET Enrolment Graduates and Employment 3
The convergence strategy in TVET is continually being adopted to further
62%
increase access to training opportunities. Efforts towards this end result to the
increasing number of persons trained in various TVET programs. The data for 2005
indicate that TVET has a total enrolment or training capacity of 1.68 million which
Public TVET
is provided in four delivery modes: school-based (665,214), center-based (65,214),
enterprise-based (101,650), community-based (680,917), and others/not classified
LGUs
(157,718). The distribution of TVET providers and the corresponding number of
graduates by delivery mode in 2005 as shown in the table below is 1.35 million.
844 (49%)
Graduates
No. of
TESDA
Delivery Mode Providers
TVETSector Institutions Grand Total
Total 4,510 1,354,322
School-Based 227,424 334,235
TESDA Technology Institutes 57 106,811
Private TVIs 974
DepEd Supervised Schools 259
HEIs with non-degree programs 724
Center-Based (15 RTCs, 45 PTCs, 4
64 65,214 65,214
Specialized TCs)
Enterprise-based 1,031 101,650 101,650
Community-based (LGU's, NGOs) 1,057 555,272 555,272
Others/Notclassified 344 297,951
HEIs/SUCs 297,951
With Non-degree Progra

146 (9%)
7
The training capacity includes the outputs of the Kasanayan at Hanapbuhay
(KASH) Program with a total of 101,650 apprentices and learners. Majority of these
apprentices and learners are trained in the following occupations:
APPRENTICESHIP / LEARNERSHIP
SECTOR
PROGRAM OUTPUTS
Shop Tailor 29,479 29,479 GARMENTS
Baker 7,116
Cook 1,616 10,165 TOURISM
Waiter 1,433
Wire Harness Assembler 9,149 9,149 AUTOMOTIVE
Electronic Assembler 6,099 6,099 ELECTRONICS
Furniture Maker 5,082 5,082 FURNITURE & FURNISHINGS
Salesman/Saleslady 1,830
WHOLESALE & RETAIL
General Clerk 1,606 4,828
TRADE
Counter Sales Clerk 1,392
Fish processing/canning
4,066 4,066 AGRICULTURE & FISHERIES
worker
Sheet Metal Worker 1,115
2,335 METALS & ENGINEERING
Plastic Moulder 1,220
Candy Maker 1,687 1,687 FOOD PROCESSING
The ultimate outcome of skills training is employment, whether in paid

employment or self-created jobs. Tracer studies have been conducted to measure
the absorption of TVET graduates into the mainstream labor market. The latest
study shows that overall employment rate of graduates joining the labor force is
60%.
Figure 2. T
Others
297,951(22%)
8
The TVET Trainors
To date, the current pool of TVET trainors, who are central in the delivery
of TVET in the country, reached 22,000. Of the total, 1,300 or 6% are TESDA
trainors who are currently manning TESDA’s network of 121 technology
institutes. The remaining 20,700 (94.1%) are employed in other public and
private TVET institutions.
2.2 TVET Quality Mechanisms
Training Regulations
The Training Regulations are being developed in consultation with industry
leaders and promulgated by the TESDA Board. The training regulations consist of
the competency standards, training standards and assessment and certification
arrangements. These provide the basis for the development of curriculum and
instructional materials and competency assessment packages for competency-
based technical education and skills development. To date, there are 72 Training
Regulations promulgated and rolled out for adoption by TVET institutions. Sixty-
two (62) Training Regulations are for development in 2006 (See Annex Table 4).
TVET Registered Programs
The system of registration of TVET programs under the Unified TVET

Program Registration and Accreditation System (UTPRAS) defines the standards for
compliance of TVET providers. This is mandatory to ensure quality and adherence
to set standards of TVET provision particularly for programs within the formal
system. To date, there are 13,098 registered programs nationwide. The
registration of programs is based on Training Regulations developed. The
distribution of registered programs by priority sector is shown in Annex Table 5.
Assessment and Certification
From 2000-2005, there are already 519,675 certified Filipino skilled workers
out of the 874,162 assessed representing a certification rate of 59.45%.
For 2005 alone, a total of 223,984 skilled workers and TVET graduates were
assessed. Of this number, 108,361 were certified as competent and job-ready, or a
certification rate of 48.40%. Across sectors, Decorative Crafts registered the
highest certification rate at 95.45%. However, it appears insignificant given the
actual number of assessed persons which is only 66. In contrast, in the maritime
sector, out of the 52,295 persons assessed, 48, 274 were certified or a certification
rate of 93.17%). It is noted that of all sectors, information technology got the
lowest certification rate at 19.13% (See Annex Table 6).
9
Assessment and Certification by Priority Sector, 2000-2005
Priority Sector No. of Assessed No. of Certified

Persons Persons Certification Rate
Automotive 71,522 25,083
35.07
Construction 86,171 36,838
42.75
Electronics 36,500 12,854
35.22
Metals and Engineering 16,114 8,041 49.90
Heat Ventilation and Air- 11,439 6,322
conditioning
55.27
Tourism 44,368 20,221 45.58
Health, Social and Other 30,817 19,604
Community Services
63.61
Information Technology 139,453 32,919 23.61
Garments 13,052 6,655
50.99
Furniture and Fixtures 1,667 1,074
64.43
Processed Foods 6,532 1,357
20.77
Agriculture 420 165
39.29
Maritime 214,315 200,567 93.59
Decorative Crafts 370 364
98.38
OPAS 198,663 145,860 73.42
Others 2,759 1,751 63.47
Total 874,162 519,675 59.45
In May 2006, TESDA embarked on a rapid deployment of assessment and

certification program to respond to the demand for assessment services. This
involves the accreditation of more assessors, rolling out of assessment packages,
qualification of TVET trainors as assessors, recognition/accreditation of National
Assessment Boards across various sectors, among others.
1
III. THE SKILLS SUPPLY AND DEMAND
Through a series of consultation processes using the PSALM approach,

the priority sectors were outlined in the Provincial Skills Priorities (PSPs) and
are consistent with the MTPDP. A particular skill/occupation identified in priority
sector is defined as critical if it is essential and indispensable in the operations of
a firm in an industry. The NTESDP identified 23 priority sectors.
In these 23 priority sectors, the skills demand and supply landscape in

the local areas as embodied in the PSPs was used in the determination of priority
occupations to be addressed by TVET intervention.
The demand for skills is categorized into two: (1) critical mass and
emerging skills; and (2) highly critical skills.
Critical mass represents the skills to be maintained/continually developed

because of natural attrition, vertical and lateral skills progression, natural growth
of existing economic sectors; while emerging demands are brought about by
technological changes, occupational shifts, new sectors and rapid expansion that
can be pro-actively addressed in the short-term, and will also require upgrading
of trainors both in technology and instructional methodology.
The highly critical skills are urgently needed and should be addressed
immediately. Any delay in action would cause economic and job opportunity
losses. Examples of these are the demands of the BPO industry and the
demand due to rapid manpower turnover in the aviation industry. Based on the
National Manpower Summit (NMS), an additional 1.06 million skilled worker is
required in sectors like aviation, cyber services, mining, medical tourism and
agri-business.
The development of all these skills will require a corresponding increase

for trainors who are central in the delivery of various TVET programs.
In summary, for the critical mass and emerging skills, there is an

estimated 6.33 million additional demand for 2005-2010 across the fourteen (14)
priority sectors as shown in the summary table.
Programs and other strategic responses to address the critical mass and
emerging skills are carried out via the ladderization system, enterprise-based
program particularly the Apprenticeship and Learnership Programs and the
scholarship programs such Private Education Student Financial Assistance
(PESFA) Program, the Asian Development Bank-Technical Education and Skills
Development Project (ADB-TESDP) Scholarship Program and the Jobs-Directed
Scholarship Program. These are supported primarily through TESDA Funds,
private sector investments and the Invigorating Constituent Assistance in
Reinforcing Employment (I-CARE), a fund-sharing scheme with the Legislators
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July 2006 V2
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and Local Chief Executives to support TVET programs in their respective
localities.
Summary of Demand and Supply by Occupation and Priority Sectors: 2005-2010
Projected Current
Projected Gap (Projected
Supply Stock of Shortfall/ Over
SECTORS / CRITICAL SKILLS Demand Demand - Current
(2005- Certified Supply
(2005-2010) Stock)
2010) Workers
AGRICULTURE 4,349,764 950,676 165 4,349,599 (3,398,923)

Poultry Farm Worker 5,435 1,188 5 5,430 (4,242)
Fish Farm Worker 4,773 1,043 35 4,738 (3,695)
Livestock Farmer 826 181 75 751 (570)
Swine Production 2,822 617 50 2,772 (2,155)
Others 4,335,908 947,648 - 4,335,908 (3,388,260)
HEALTH, SOCIAL & OTHER
COMMUNITY SERVICES 78,079 722,443 19,604 58,475 663,968
Cosmetologist 1,581 14,629 4,087 (2,506) 17,135
Caregiver 29,458 272,567 15,034 14,424 258,143
Domestic Helper 1,897 17,552 255 1,642 15,910
Security Guard 1,265 11,705 - 1,265 10,440
Others 43,878 405,991 228 43,650 362,341
ICT 368,435 1,206,768 32,919 335,516 871,252
Data Encoder 6,037 19,772 22,490 (16,453) 36,226
Computer Service Technician 14,466 47,383 9,713 4,753 42,629
Computer Programmer 8,790 28,792 653 8,137 20,655
Auto CAD 1,636 5,358 11 1,625 3,733
Others 337,506 1,105,464 52 337,454 768,010
TOURISM 451,922 334,214 20,221 431,701 (97,487)
Food and Beverage Attendant 98,359 72,740 5,833 92,526 (19,786)
Cooks 84,212 62,278 4,287 79,925 (17,647)
Chambermaid/Housekeepers 81,164 60,024 166 80,998 (20,974)
Bartenders 26,020 19,243 489 25,531 (6,288)
Waiters 28,741 21,255 975 27,766 (6,511)
Front Desk Clerk 26,697 19,743 67 26,630 (6,887)
Baker 7,302 5,400 7,396 (94) 5,494
Pastry Maker 4,321 3,196 150 4,171 (975)
Others 95,106 70,335 858 94,248 (23,913)
DECORATIVE CRAFTS 42,586 253,773 364 42,222 211,551
Ceramics 2,241 13,352 364 1,877 11,476
Jewelry 4,753 28,325 - 4,753 23,572
Gifts, Toys & Housewares 35,592 212,094 - 35,592 176,503
CONSTRUCTION 333,315 282,479 36,838 296,477 (13,998)
Finish Carpenter 7,493 6,350 831 6,662 (312)
Rough Carpenter 8,950 7,585 720 8,230 (645)
Draftsman 312 264 2,130 (1,818) 2,082
General Carpenter 1,572 1,332 1,074 498 834
General Mason 85,815 72,727 1,425 84,390 (11,663)
Plumber 33,001 27,968 1,802 31,199 (3,231)
Construction Painter 1,771 1,501 568 1,203 298
Pipefitter/Fabricator 609 516 301 308 208
HEO-Bulldozer 776 658 288 488 170
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July 2006 V2
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Projected Current
(2005-2010) Stock)
2010) Workers
HEO-Crane 198 168 92 106 62
HEO-Wheel Loader 4,497 3,811 1,011 3,486 325
HEO-Motor Grader 697 591 175 522 69
HEO-Payloader 63 54 52 11 42
Heavy Equipment Operator 38,567 32,684 289 38,278 (5,593)
Steelman(Rebar) 6,309 5,347 87 6,222 (875)
Building Wiring Electrician 16,804 14,241 20,994 (4,190) 18,431
Industrial Electrician 1,567 1,328 1,942 (375) 1,703
General Electrician 4,837 4,099 64 4,773 (674)
Rigger 421 356 34 387 (30)
Others (Rig rapping, Electric Motor
Rewinder etc.) 119,056 100,898 2,959 116,097 (15,199)
AUTOMOTIVE 37,443 315,732 25,083 12,360 303,372
Auto Body Painter 228 1,920 20 208 1,712
Auto Body Repairman 339 2,862 18 321 2,540
Auto Electrician 2,894 24,405 536 2,358 22,047
56,468
Automotive Mechanic 5,025 42,375 19,118 (14,093)
Automotive Servicing 9,142 77,089 223 8,919 68,170
Diesel engine mechanic 211 1,777 2,328 (2,117) 3,895
Driver 2,281 19,232 1,401 880 18,352
Diesel Fuel Injection Technician 25 213 28 (3) 216
Heavy Equipment Mechanic 42 354 137 (95) 449
Motorcycle Mechanic 3,267 27,549 110 3,157 24,392
Small Engine Mechanic 750 6,324 57 693 5,631
Others 13,239 111,637 1,107 12,132 99,505
ELECTRONICS 81,439 270,100 12,854 68,585 201,515
Electric Repair Technician 538 1,783 53 485 1,298
Electronics Assembler 565 1,874 45 520 1,354
Appliance Service Technician 1,709 5,670 11 1,698 3,971
Consumer Electrician Mechanic 37,462 124,246 12,185 25,277 98,969
Others 41,165 136,527 560 40,605 95,922
METALS & ENGINEERING 24,466 78,400 8,041 16,425 61,975
Lathe Machine Operator 2,209 7,079 1,899 310 6,769
Gen. Machinist 3,088 9,895 187 2,901 6,994
Electric Arc Welder - SMAW 14,214 45,548 5,734 8,480 37,068
Gas Welder 263 843 32 231 612
Plant Maintenance Mechanic 333 1,067 5 328 739
Others 4,359 13,969 184 4,175 9,794
PROCESSED FOOD AND
BEVERAGES 107,020 207,221 1,357 105,663 101,558
Meat Curer 460 891 226 234 657
Smoke Fish Processor 44,772 86,691 720 44,052 42,639
Fruit Processing 1,435 2,779 29 1,406 1,373
Others 60,353 116,860 382 59,971 56,889
MARITIME 25,632 41,389 200,567 (174,935) 216,324
Deck Rating 796 1,285 115,473 (114,677) 115,962
Engine Rating 278 449 59,426 (59,148) 59,597
Catering/Stewarding 2,677 4,323 25,668 (22,991) 27,314
Others 21,881 35,332 - 21,881 13,451
GARMENTS 102,741 606,674 6,655 96,086 510,588
Dressmaker 1,594 9,412 3,864 (2,270) 11,682
Industrial Sewing Machine Operator 20,868 123,223 390 20,478 102,745
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Projected Current
(2005-2010) Stock)
2010) Workers
Garments Sewer 63,420 374,488 2,134 61,286 313,202
Tailor 575 3,395 230 345 3,050
Others 16,284 96,155 37 16,247 79,908
FURNITURE and FIXTURES 45,594 30,062 1,074 44,520 (14,458)

Furniture and Cabinet Maker 5,272 3,476 480 4,792 (1,316)
Upholsterer 299 197 594 (295) 492
Wood Carving 3,354 2,211 - 3,354 (1,143)
Others 36,669 24,178 - 36,669 (12,491)
Heat Ventilation
1,250
Aircon/Refrigeration (HVAC/R) 42,424 6,322 (5,072) 47,496
Refrigeration Mechanic 42 1,425 889 (847) 2,272
Commercial RAC Mechanic 36 1,222 12 24 1,198
Window Type AC/Domestic Ref 584 19,820 64 520 19,300
RAC Service Transport AC & Ref. 398 13,508 10 388 13,120
RAC Service Centralized Aircon
-
Mech. - - - -
Others 190 6,448 5,347 (5,157) 11,605
Other Sectors 199,332 2,856,164 147,611 51,721 2,804,443

GRAND TOTAL 6,249,019 8,198,520 519,675 5,729,344 2,469,176
Note: *including OPAS: Assessed (198,663) and Certified (145,860)
Sources: Provincial Skills Priorities 2005-2007
Registry of Workers Assessed and Certified 2000-2005
V. RECOMMENDATIONS
To ensure that the required skills are adequately addressed, the following
options and recommendations are being put forward:
4.1 Scholarship Programs
As a direct response to the challenge of increasing access to TVET, TESDA

is implementing scholarship and other assistance programs to qualified TVET
students and trainees through:
• Continuing PGMA-Training for Work Scholarship Program (PGMA-

TWSP) to fill the gaps created by highly critical skills. In particular, continuing
the provision for scholarship grants in short-term courses particularly in the
business process outsourcing (BPO) industry: call center, medical and legal
transcription, animation, software development; and other industries with
critical skills requirements. In general, PGMA-TWSP aims to (1) provide skills
and competencies to job seekers through appropriate training programs that
are directly linked with existing jobs that lead to immediate employment, and
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July 2006 V2
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(2) empower private education and training institutions to offer relevant
training programs that meet job requirements.
• Expansion of the PESFA Program to be directed in areas where

mismatch of skills exist. To date, only a total of 13,414 qualified and
deserving beneficiaries per annum benefit from the Program
• A P500 Million Scholarship Program for the CHED-TESDA

ladderization program. Scholarship grants for students from SUCs as
well as HEIs going into ladderized education system would provide impact
on the relevance of EO 358.
4.2 Massive Trainors Development Program
With the emerging and highly critical skills needed in the medium-term, there
is a need for TVET trainors to be competently equipped both in terms of technology
and teaching/instructional methodology. To date, the current stock of TVET trainors
of 22,000 needs to be upgraded.
4.3 Increase the number of private Technical Vocational Institutions (TVIs)

through incentives and technical capability build up
The number of private TVIs is expected to increase from 2,082 to 3,353 in

2010 or an increase of 1,271 TVIs. The expansion of private TVIs is necessary to
provide the skills training interventions in response to the demand. This shall be
directed in critical areas where impact is expected.
4.4 Ladderization System
In the area of ladderization, there are a number of handles that need to be

drawn to fully realize the goal of increasing access to education and training.
Among these are the provision of more avenues for trainees to acquire skills in
the workplace and mechanism to ensure that TVET qualification is recognized in
a professional qualification.
In addition, the proposed issuance of an Executive Order that would require

on-the-job training (OJT) without compensation for students of ladderized
programs and provision of tax incentives for enterprises accepting and absorbing
the OJT, and for PRC to recognize TVET qualification in a professional
qualification is being recommended for consideration.
4.5 Apprenticeship Program
The capacity of Apprenticeship Program to provide opportunities for

training in the workplace and facilitating transition from training to employment
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should be expanded. To achieve this, certain policy gaps in the provisions of the
Apprenticeship Law should be looked into, particularly in the determination and
declaration of apprenticeable trades and incentives for participating companies.
I. INTRODUCTION
A. The Development Context
1. The Medium Term Philippine Development Plan (MTPDP) 2004-2010
The Medium Term Philippine Development Plan (MTPDP) 2004-2010 sets

the larger frame within which efforts of both public and private sectors shall be
pursued. The MTPDP is the government’s roadmap to alleviate poverty for the
greater number of the Filipino people. It spells out the essential tasks in attaining
this vision. Essentially, it states that the country must open up economic
opportunities, maintain socio-political stability, and promote good stewardship – all to
ensure a better quality of life for its citizens.
The MTPDP envisions the following 10 point-legacy of the Arroyo

administration by year 2010:
1. Ten million jobs shall have been created. It expects three million
entrepreneurs to have received support through loans, helping them become
good managers and making them more productive by developing thru agri-
business, two million hectares of land.
2. Everyone of school age will be in school. This means that provision of
additional school buildings shall be built to create an uncrowded environment
and in surroundings conducive to learning.
11. The budget shall have been balanced with the right revenue collected and
spent on the right things is ensured.
12. The network of transport and digital infrastructure to connect the entire
country is established.
13. Electricity and water for all barangays have been installed.
14. Metro Manila will have been decongested.
15. The Subic and Clark corridors will have become the most competitive
international service and logistic center.
16. Automated elections will no longer raise doubts about their integrity.
17. Peace will have come to Mindanao and all insurgency areas.
18. The divisive issues generated by EDSA 1, 2, and 3 will have had a just
closure.
2. The National Technical Education and Skills Development Plan (NTESDP)

2005-2009
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With MTPDP as the backdrop, the Second Cycle NTESDP 2005-2009 was
formulated through multi-sectoral participation and was approved by the Social
Development Committee-Cabinet level on June 2, 2005. It provides the framework
that will guide and unify all technical-vocational education and training (TVET)
initiatives into a common thrust which will enhance the country’s resources and
alleviate Filipino workers from the claws of poverty through job and livelihood
generation that will eventually propel economic growth.
The Second Cycle NTESDP 2005-2009 envisions to develop a globally

competent Filipino workforce. The Filipino workers shall be highly sought after,
capable of providing quality goods/products and services in the workplace, both in
local and international labor markets. To achieve this vision, the NTESDP shall
guide the achievement of the following national development objectives:
Decent and Productive Employment. This means that productive

employment is available, from which is derived adequate income for all at work.
Sufficient productive employment is available and workers have full access to
income earning opportunities. Essential to decent employment is a continuous
enhancement of competencies through building up of capabilities for skills training
on global competitiveness and positive work ethics. Industry and employees shall
support this process by pursuing their institutional human resources development
programs for their workers.
Quality TVET Provision. Standards on systems, processes and procedures

among TVET providers will be applied accordingly to ensure quality
graduates/workforce.
Supply Matches Demand. It is recognized that economic growth triggers

socio-economic improvements. However, the provision of training programs will be
guided by adequate and timely labor market information, both in terms of quantity
and quality set by industries, especially in critical occupations and in areas where
there is high demand.
The Plan focuses on three key result areas:
Improved Access and Equity in TVET. Opportunities shall be made

available and affordable for all clients to include but not limited to special clientele
groups like women, differently-abled persons, and indigenous people, among others.
Relevant and timely information on training opportunities will be made available for
prospective beneficiaries.
Improved Assessment and Certification. There shall be an increased number

of TVET graduates with verified/validated competence to perform a particular skill
according to quality standards defined by industry. Moreover, the registry of certified
TVET graduates is readily available to prospective employers, both for local and
overseas employment.
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Enhanced Employability of TVET Graduates. This is the environment where
TVET graduates have improved access to employment opportunities both here and
abroad. Graduates will also have improved prospects for entrepreneurial and self-
employment endeavors.
3. Provincial Skills Priorities (PSP) 2005-2007
The PSP serves as the twin document of the NTESDP. It outlines the critical
skills in the 23 priority sectors (Table 1) in the provinces nationwide which were
identified in consultation with industry partners and endorsed by the TESD
Committees in the provinces and regions. The Policy-oriented, Sector-focused,
Area-based and Labor Market-driven (PSALM) Approach in TVET Planning was
used as guide in the identification of critical skills that would respond to the
requirements for national and international competitiveness.
Table 1: Second Cycle NTESDP Priority Sectors: 2005-2009
11 Agriculture and Fishery 12.Decorative Crafts – Gifts, Toys and

(including Rubber) Housewares
11 Tourism (including Hotel & 13.Processed Food and Beverages
Restaurant Management) 14.Mining
11 Construction 15.Decorative Crafts – Jewelry
11 Information and 16.Decorative Crafts - Ceramics
Communications Technology (ICT) 17.Shipbuilding
11 Furniture and Fixtures 18.Maritime
(including Handicrafts and Wood 19.Wholesale and Retail Trading
Carvings)
20.Heating-Ventilation and Air
11 Metals and Engineering Conditioning/Refrigeration (HVAC/R)
11 Health and Social Services 21.Electrical
11 Automotive 22.Logistics
11 Garments 23.Footwear
111 Electronics
111 Land Transport
Source: Second Cycle NTESDP 2005-2009
4. The National Manpower Summit, 2006
4.1. Employment Challenges
The National Manpower Summit on March 02, 2006 was held to address the
employment challenges confronting the country. The Summit is an aggressive step
toward the formulation of a deliberate Action Plan that would ensure that 1) jobs with
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specific competencies and are in demand at present, in the short-term and the
medium-term are identified; 2) linkages between schools, training institutions and
industry are working; and 3) the types of workers needed by emerging industries in
the country and the rest of the world are generated.
In the Summit, it was reported that with the domestic economy growing by at
least 7 percent, total job generation is expected to reach 9.7 to 11.5 million by 2010.
This accounts for an average 1.4 to 1.6 million new jobs every year. Most jobs will
be created in the services sector at 5.8 to 7 million or about 60 percent of total job
generation. The agriculture sector comes next and is expected to create 2 to 2.3
million jobs with the development of 2 million hectares of agri-business lands.
Industry is expected to create 1.9 to 2.2 million jobs. (Source: National Manpower
Summit, March 02, 2006.)
Based on agency programs and estimates, tourism is expected to create 3

million; agribusiness 2.8 million; housing 1 million; ICT 0.8 million; exports 0.7
million; and mining 0.2 million. The realization of these employment projections from
the different sectors is expected to contribute to bringing down unemployment in the
country which is targeted to be at 8.9 percent by 2010, 3.2 percent lower than the
2004 level of 12.1 percent. (Source: National Manpower Summit, March 02, 2006.)
As of October 2005, employment increased to 32.9 million from 31.7 million

registered in the same period in 2004. Statistics also show that employment grew
across all three sectors of the economy: agriculture, industry and services. The
highest employment growth is registered by the services sector reaching
739,000, followed by agriculture with 390,000, and industry with 6,000.
Despite marked improvement in employment and the prospects of generating

more jobs, challenges remain but opportunities are likewise available. It is noted that
unemployment rate is still significant at 10.3 percent as of October 2005. The bulk of
unemployed is among the youth in the age bracket 15- 24 years old, accounting for
48 percent of the total unemployed. Majority of the unemployed in this age group
(42.6 percent) have at least high school education. They are unskilled,
inexperienced, and naturally, unemployable. With the magnitude of unemployed
placed at about 3.8 million, this is translated into more than 1.8 million youth without
jobs and without proper education. On the other hand, about 34 percent of the
unemployed in this age bracket are those who have reached college levels. This is
approximately 600 thousand educated people not finding employment. Based on
statistics, the incidence of unemployment tends to increase with the years of
education. In 2002, only 6.7 percent of those with at least elementary education are
unemployed; 13.2 percent, with at least high school education; and 15.4 percent with
college education. This is an indication of our educated unemployment problem.
This situation is an indication of structural unemployment problem. This is a

result of: first, skills mismatch between the requirements of the available jobs
and the skills possessed by those seeking employment; second, geographic
mismatch between locations of job opening and job seekers; and third, not having
the right quality and right quantity of manpower at the right time. This
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kind of distortion is highly evident in the Philippine labor market. There exist labor
supply-demand gaps. While shortages of skills are pronounced in certain
occupations and areas in the country, oversupply of other skills are likewise
observed. Therefore, a surplus and shortage of manpower exist at the same time.
4.2. Labor Market Opportunities
Against the backdrop of these challenges, the National Manpower Summit

found labor market opportunities in nine sectors: 1) Cyberservices; 2) Mining; 3)
Health Services; 4) Hotel and Restaurant; 5) Agri-business; 6) Medical
Tourism; 7) Creative Industries; 8) Aviation, and 9) Overseas Employment.
However, given the lack of specific data in overseas employment and the creative
industries, employment projections were done only in the 7 sectors.
Among the sectors, agri-business and cyberservices show the two largest
employment projections. Agri-business is expected to generate about 2.04 million
employment prospects in the next five years. Cyberservices, on the other hand will
account for approximately 1.38 million employment opportunities during the same
period. Hotels and restaurants rank the third highest with an employment projection
placed at about 400,000 workers. The medical tourism sector is expected to
generate 128,150 employment opportunities while mining and aviation will account
for 39,382 and 27,581 employment prospects, respectively. Table 2 details the
employment opportunities by sector for 2006-2010.
Table 2: Employment Opportunities by Sector, 2006-2010

SECTOR 2006 2007 2006-2010
Agri-business 329,609 372,317 2,044,161
ICT/Cyber services 148,350 204,146 1,383,890
Hotel and Restaurant 56,001 69,028 400,280
Medical Tourism 25,310 25,310 128,150
Health Services 8,066 9,455 58,003
Mining 6,672 7,298 39,382
Aviation 3,710 4,450 27,581
TOTAL 577,718 692,004 4,081,447
Source: National Manpower Summit 2006
Data on specific occupations for each priority sector were also generated
during the consultation for the National Manpower Summit. In the cyberservices
sector, customer contact agents posted the highest with 735,500 employment
prospects for the period 2006-2010. This is followed by finance or accounting
transaction skills under the back office processing sub-sector with 137,585
employment prospects over the five year period. Substantial share is also registered
by software developers or programmers which account for 122,100 employment
prospects during the same period. Table 3 summarizes the employment
opportunities by sector and by occupation.
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Table 3: Employment Opportunities by Sector and Occupations, 2006-2010
SECTOR Occupation 2006 2007 2006-2010

Agri-business
Butcher 550 550
Aquaculture Technician 61,498 64,774 338,091
Crop Production 231,897 267,338 1,480,260
Cyber services
Animator 2,640 3,600 23,600
Legal Transcriptionist 4,000 4,000 20,000
Medical Transcriptionist 4,410 7,046 61,900
Software Developer 12,200 17,200 122,100
Call Center Agent 103,000 132,600 735,500
Hotel and
Restaurant
Bartender 4,081 4,861 27,852
Cooks 9,663 14,208 85,726
Housekeepers 13,420 15,739 88,258
Medical Tourism
Spa Therapist 180 300 1,000
Massage Therapist 900 1,500 7,500
Health Services
Health Aide/Nursing
2,370 3,691 22,509
Aide
Aviation
Aviation Technician/
2,040 2,448 15,177
Mechanic
Ground Equipment
230 276 1,710
Operator
Mining
Skilled Workers* 6,556 7,218 39,054
Source: National Manpower Summit 2006
* Mining is a cross-cutting sector. Workers are accounted for in Construction, Metals and
Engineering, Land Transport and Automotive sectors
B. Implications on TVET
The role of Technical-Vocational Education and Training (TVET) has grown in

importance, particularly in addressing the PGMA priority agenda of creating 6 to
10 million jobs in the next 6 years. The TVET sector, therefore, shall be guided by
the national, sectoral and areal priority skills requirements that can proactively
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and significantly respond to the skills and competency requirements of the new jobs
that will be created. Further, the TVET sector shall provide the necessary
intervention in the prospective occupational skills shifts, upskilling, career
shifting and multi-skilling of the current stock of workers.
Central to all this work is a continuing response to the job skills matching
and best job skills fit in the SEEK-FIND-TRAIN strategy.
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A. TVET Capacity
1. The TVET Providers

The training and development of the Filipino workforce for skilled employment is
provided mostly by the TVET institutions. There are 4,510 TVET providers in the
country today, 62% (2,796) of which are private and 38% (1,714) are public. The
public TVET providers include the 121 TESDA Technology Institutes composed of
57 schools, 15 Regional
Training Centers, 45
Provincial Training Centers
and 4 Specialized Training
Figure 1. TVET P Centers. Other public TVET

providers
offering
include SUCs
non-degree
programs, DepEd supervised
schools, LGUs and other
government agencies
providing skills training
programs. The private
T V ET P roviders (4,510) providers, on the other hand,

are composed of privately
owned schools, companies
participating in the
government’s enterprise-
P u b lic
based training programs and
non-government
organizations offering training
P rivate
sector.
programs for the marginalized
1 ,7 1 4
2 ,7
Among 9 6
the TVET providers mentioned above, a total of 3,294 public and38%
private schools and training centers have their programs registered under TESDA's
62%
Unified TVET Program Registration and Accreditation System (UTPRAS). UTPRAS
is a mechanism installed by TESDA to ensure that programs offered to the public
are quality assured and comply with the minimum standards set forth by the
government. On the other hand, 922 companies are participating in the
P ublic T V E T P
Apprenticeship and Learnership Programs and likewise have their programs
registered under the UTPRAS.
LGUs
By priority sector, the spread of TVET providers with registered programs
shows that 41% offer programs in information and communication technology; 32%
in health and social work; 21% in other community, social and personal services;
844 (49% )
14% in tourism; 13% in electronics; 12% in automotive; 11% in construction; 5% in
real estate, renting and business activities; 5% in metals and engineering; 5% in
heat, ventilation, airconditioning and refrigeration and 5% in maritime (Table 4).
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Table 4: TVET Providers with Registered Programs By Sector
As of December 2005
SECTOR / REGION TOTAL %

AGRICULTURE AND FISHERY 76 2.3
AUTOMOTIVE 408 12.4
AVIATION 14 0.4
CONSTRUCTION 361 11.0
DECORATIVE CRAFTS 8 0.2
ELECTRONICS 436 13.2
FOOTWEAR 1 0.03
FURNITURE AND FIXTURES 26 0.8
GARMENTS 111 3.4
HEALTH AND SOCIAL WORK 1046 31.8
HVAC/R 147 4.5
ICT 1338 40.6
LAND TRANSPORT 20 0.6
MARITIME 147 4.5
METALS AND ENGINEERING 156 4.7
PROCESSED FOOD AND BEVERAGES 22 0.7
REAL ESTATE, RENTING AND BUSINESS
ACTIVITIES 164 5.0
TOURISM 471 14.3
OTHER COMMUNITY, SOCIAL AND
PERSONAL SERVICES 678 20.6
OTHERS 393 11.9
The companies, on the other hand, open up their training facilities mostly in
operations involving labor-intensive activities. A significant increase of more than
100% in the number of participating companies in the Kasanayan at Hanapbuhay
Program is noted from 2004 to 2005. These companies are engaged in the following
areas: garments (27%), electronics (13%), metals and engineering (12%),
construction (12%), automotive (8%), tourism (7%), furniture and furnishing (5%),
wholesale and retail (4%), footwear and leathergoods (3%), utilities (2%), processed
food and beverages (2%), printing (1%), and agriculture and fishery (1%). Please
refer to Table 5.
Table 5: KASANAYAN AT HANAPBUHAY PROGRAM (KASH)
Number of Participating Companies By Sector
2004-2005
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2004 2005
SECTOR NO. % NO. %
AGRICULTURE AND FISHERY 2 0.45 11 1.19
AUTOMOTIVE 34 7.73 75 8.13

AVIATION 1 0.23 3 0.33
CONSTRUCTION 88 20.00 106 11.50
DECORATIVE CRAFTS - CERAMICS 3 0.68 1 0.11
DECORATIVE CRAFTS - GIFTS, TOYS 4 0.43
AND HARDWARES
DECORATIVE CRAFTS - JEWELRY 1 0.23 1 0.11
ELECTRONICS 42 9.55 123 13.34
FOOTWEAR AND LEATHERGOODS 10 2.27 29 3.15
FURNITURE AND FIXTURES 11 2.50 46 4.99
GARMENTS 114 25.91 251 27.22
HEATING - VENTILATION AND AIR 6 1.36 8 0.87
CONDITIONING/REFRIGERATION
INFORMATION AND 6 0.65
COMMUNICATION TECHNOLOGY
LAND TRANSPORT 1 0.23 1 0.11
LOGISTICS 3 0.33
METALS AND ENGINEERING 56 12.73 107 11.61
PRINTING 13 2.95 13 1.41
PROCESSED FOOD AND BEVERAGES 13 2.95 15 1.63
SHIPBUILDING 2 0.22
TOURISM 29 6.59 62 6.72
UTILITIES 15 3.41 16 1.74
WHOLESALE AND RETAIL TRADING 1 0.23 39 4.23
TOTAL 440 100 922 100
The NTESDP 2005-2009 targets to increase the number of TVET providers to

9,079 by the end of the 5-year plan period particularly among the LGUs and the
enterprises. This is intended to address the projected increase in TVET enrolment in
the next 5 years.
2. TVET Enrolment, Graduates and Employment
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Through the various delivery modes, TVET training opportunities are
continuously being provided to different clientele. The 2005 data indicate that TVET
enrolment reached a total of 1.68 million which represents a 38% increase from
2004 enrolment of 1.22M.
Total TVET graduates in 2005, on the other hand, is placed at 1.35 million
(representing a 61% increase from 0.839M graduates in 2004) coming from 4 major
delivery modes: school-based training program; center-based training program;
enterprise-based training program; and community-based training program. Majority
of the graduates came from community-based training programs (41%), while
24.68% were from school-based TVET programs. Enterprise-based training
programs and center-based training programs accounted for only 7.5% and 4.8% of
the graduates, respectively. Other training programs, mostly from other government
training centers and other providers, contributed 22%.
The marked increase in the enrolment and graduates data can be ascribed to
the convergence strategy among TVET stakeholders and the recognition for TVET to
develop and enhance specific competencies of individuals in the shortest possible
time to make them employable.
School-based program –
usually refers to regular TVET
programs (1-year, 2-year and
3-year courses) and short-
term courses (less than 1
Figure 2: 2005 TVE

year) offered by a TVET
school.
Center-based program –
this applies mainly to the
TVET programs of TESDA
training centers; also includes
programs of skills training
centers of other government
agencies such DA-ATI.
Enterprise – based
program – refers to
O therG As apprenticeship and

learnership programs which
are in short duration
297,951(22% )
conducted in the workplace by an enterprise and other providers.
Community-based program – this refers to short-term programs conducted or

coordinated by LGUs, NGOs and other providers which are intended to address
the specific needs of a community. Such programs are usually conducted in
informal settings such as barangay hall, basketball courts and other
available venues in a community.
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Table. 6: Top 10 Sectors in Enterprise-Based
Training Program
(Apprenticeship/Learnership Programs)
SECTOR/OCCUPATION NO. OF
APPRENTICE
S
The training capacity includes
GARMENTS 29,218 the outputs of the Enterprise
Shop Tailor 29,218 Based Training (EBTs) with a
TOURISM 11,183 total of 101,650 apprentices
Baker 7,248 and learners. This translates to
Cook 1,619 about 8% share of enterprise-
Waiter 2.316 based program to the total
AUTOMOTIVE 8,778 outputs of the TVET system,
Wire Harness Assembler 8,778 which is the lowest among the
ELECTRONICS 6,585 delivery modes.
Electronic Assembler 6,585
FURNITURE & FIXTURES 5,110 The top 10 sectors and
occupations in EBTs with the
Furniture Maker 5,110
highest number of graduates
WHOLESALE & RETAIL TRADE 6,207
out of the 101,650 in 2005 are
Salesman/Saleslady 2,826
found in garments, tourism,
General Clerk 1,907 automotive, electronics,
Counter Sales Clerk 1,474 wholesale and retail,
AGRICULTURE & FISHERIES 4,090 electronics, processed food and
Fish processing/canning worker 4,090 beverages, furniture and
METALS & ENGINEERING 2,559 furnishings, metals and
Sheet Metal Worker 1,344 engineering, construction and
Plastic Moulder 1,215 agriculture and fishery (Table
CONSTRUCTION 2,322 6).
Welder 1,168
Plywood Builder 1,154
PROCESSED FOOD & 1,683
BEVERAGES
Candy Maker 1,683
The ultimate outcome of skills training is employment, whether in paid employment
or self-created jobs. Tracer studies have been conducted to measure the absorption
of TVET graduates into the mainstream labor market. The latest study shows that
overall employment rate of graduates joining the labor force is 60%.
3. The TVET Trainors
The TVET trainor is central to the delivery of various TVET programs in the
country. To date, the current pool of TVET trainors in the country, is estimated at
22,000. Of the total, 1,300 or 6% are TESDA trainors who are currently manning
TESDA’s network of 121 technology institutes. The remaining 20,700 (94.1%) are
employed in other public and private TVET institutions.
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Qualifying the TVET trainors through the Philippine TVET Trainor
Qualifications Framework is one of the major challenges in TVET. This is to ensure
that standards are met and quality is maintained. TESDA has embarked on a
National TVET Trainors and Assessors Qualification Program this year. A total of
4,000 trainors will undergo the program in 2006. This consists of 1,300 TESDA
trainors and the remaining 2,700 trainors from institutions with programs progressing
from No Training Regulation (NTR) to With Training Regulation (WTR) status as well
as those who will implement Ladderized programs starting SY 2006-2007.
B. TVET Quality Assurance Mechanisms
1. Training Regulations
The Training Regulations (TRs) are being developed in consultation with

industry leaders and promulgated by the TESDA Board. The training regulations
consist of the competency standards, training standards and assessment and
certification arrangements. These spell out the parameters for ensuring quality in the
delivery of a TVET program. The training regulations also serve as the basis for the
development of curriculum and instructional materials and competency assessment
packages for competency-based technical education and skills development. To
date, 72 TRs covering 14 priority sectors and other sectors have been
promulgated and rolled out for adoption by TVET providers. Health and social
work sector; other community, social and personal services sector; agriculture and
fishery; automotive; construction; tourism; maritime; and heating, ventilation and air-
conditioning/refrigeration have the biggest number of TRs promulgated as of April
2006. Additional 26 TRs were developed in 2006, majority of which are in the
Metals and Engineering sector particularly welding in response to the growing
demand for highly skilled welders.
For the remaining period of 2006, 38 TRs will be developed, with 9 in the
Electronics sector and 8 in the Tourism sector, while 135 more are scheduled for
development from 2007 to 2010. By the end of 2010, there will be 172 additional
TRs developed covering 21 priority sectors for promulgation by the TESDA Board.
Table 7 provides the number of TRs developed, promulgated and for development
by priority sector.
The selection of priority qualifications for TR development is based on the

needs manifested by the industry as reflected in various documents such as the
NTESDP, the PSP, the National Sectoral Skills Plans (NSSP), and the NMS 2006
report. It is expected that more priority qualifications shall be added over time based
on critical and emerging needs of the various sectors. The role of the industry
groups shall be harnessed to the fullest through the existing partnership
mechanisms of TESDA such as the industry working groups to ensure that TR
development process is facilitated and competency standards are responsive to
industry requirements..
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Table 7: Training Regulations by Sector
No. of No. of No. of TRs for

TRs TRs Development
PRIORITY SECTORS Develop
Promulga 2007-
ted ed 2006
2010
1. Agriculture and Fisheries 8 5 3
2. Automotive 8 1
3. Aviation 2
4. Construction 8 24 6 25
5. Decorative Crafts 1 3
6. Electronics 9 12
7. Footwear 1
8. Furniture and Fixtures 2 11
9. Garments 2 2 6
10.Health and Social 15
12 1
Services
11.HVAC/R 3 4 2 1
12.ICT 6 4 1
13.Land Transportation 2
14. Manufacturing 1 9
15. Maritime 6 4 5
16. Metals and Engineering 4 10 6
17. Mining 1
18. Processed Foods and 1 5
1
Beverages
19. Shipbuilding 1
20. Tourism 8 1 8 6
21. Wholesale and Retail Trade 7
22. Others 3 15
TOTAL 72 47 38 135
2. TVET Registered Programs
The system of registration of TVET programs under the Unified TVET

Program Registration and Accreditation System (UTPRAS) defines the standards for
compliance of TVET providers. This is mandatory to ensure quality and adherence
to set standards of TVET provision. To date, there are 13,098 registered
programs nationwide (Table 8).
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Table 8: Registered Programs by Sector as of December 2005
PRIORITY SECTORS Total

No. %
ICT 5585 42.6
Health and Social Work 2110 16.1
Tourism 778 5.9
Automotive/Land Transport 559 5.6
Electronics 673 5.1
Performing Arts 605 4.6
Construction 586 4.5
Maritime 317 2.4
Metals and Engineering 285 2.2
HVAC/R 194 1.5
Language 193 1.5
Garments 167 1.3
Agriculture and Fisheries 159 1.2
Furniture and Fixtures 27 0.2
Processed Foods and Beverages 24 0.2
Decorative Crafts - Ceramics 11 0.1
OVERALL TOTAL 13,098 100.0
The bulk of the registered programs is in the ICT sector comprising almost
43% of the total registered programs while 16% are in the Health and Social
Services sector. On the lower strand, only a few (approximately 0.5%) are aligned
with Furniture and Furnishings, Processed Foods and Beverages and Decorative
Crafts.
As of December 2005, out of the total number of registered programs, only

3,523 were registered under WTR status in accordance with the promulgated TRs.
For 2006, all other programs initially registered under NTR status shall be re-
registered under WTR status to ensure that they comply with the standards
contained in the appropriate TRs.
The conduct of compliance audit is regularly being done to ensure that TVET
programs offered by institutions remain compliant to the standards set in the
registration system.
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3. Assessment and Certification
Table 9: Registry of Workers Assessed and Certified

2000-2005
CERTIFICATION
SECTOR ASSESSED CERTIFIED
RATE
AUTOMOTIVE SECTOR 89,019 31,925 36%
CONSTRUCTION SECTOR 81,052 35,299 44%
METALS AND ENGINEERING 23,327 9,574 41%
HEATING, VENTILATION,
AIRCONDITIONING and REFRIGERATION 11,436 6,117 53%
(HVAC/R)
ELECTRONICS 36,500 12,854 35%
TOURISM 44,348 20,614 46%
INFORMATION AND COMMUNICATION
138,553 26,838 19%
TECHNOLOGY
GARMENTS 13,030 6,655 51%
HEALTH, SOCIAL & OTHER COMMUNITY

31,746 19,361 61%
DEVELOPMENT SERVICES
FURNITURE AND FIXTURES 1,699 1,106 65%
FOOD AND BEVERAGES 3,343 1,357 41%
MARITIME 214,386 200,590 94%
AGRICULTURE 360 115 32%
DECORATIVE CRAFTS 188 185 98%
OVERSEAS PERFORMING ARTISTS (OPA) 49,472 41,973 85%
UTILITIES 2,364 1,516 64%

PRINTING 395 235 59%
GRAND TOTAL 741,218 416,314 56%
From 2000 to 2005, there are 416,314 certified Filipino skilled workers out of
the 741,218 assessed representing a certification rate of 56% (Table 9).
For 2005 alone, a total of 218,994 skilled workers and TVET graduates were
assessed. Of this number, 106,209 were certified as competent and job-ready, or a
certification rate of 48.40%. Across sectors, Decorative Crafts registered the highest
certification rate at 98%. However, the actual number of assessed persons is only
185. While in the maritime sector, out of the 52,295 persons assessed, 48,274
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were certified or a certification rate of 93.17%. It must be noted that among the
sectors, information technology got the lowest certification rate at 19.13%. The fast
technological development in this sector is a crucial factor which necessitates more
frequent updating or development of training and competency standards.
In May 2006, TESDA embarked on a rapid deployment of assessment and

certification program to respond to the demand for assessment services. This involves
the accreditation of more assessors, rolling out of assessment packages, qualification
of TVET trainors as assessors, recognition/accreditation of National Assessment
Boards across various sectors, among others. The TESDA Board has set the policy
for mandatory assessment of TVET graduates for each of the qualifications covered in
the promulgated TRs. This provided the impetus for the accelerated implementation
of competency-based assessment and certification program.
C. Mechanisms in TVET
Poverty continues to plague a large segment of our society. Poverty

incidence in the country or the proportion of families with per capita incomes below
the poverty threshold increased from 28.1% in 1997 to 28.4% in 2000, or an increase
of 0.3 percentage points. This means that a growing number of people do not have
the capacity to provide for their basic needs more so to acquire education that will
empower them to get a decent job and lead a better quality of life. The issue on
access to education and training opportunities comes to the fore.
Responding to this challenge, TESDA shall expand its scholarship and

other financial assistance program to provide access to training opportunities for more
TVET beneficiaries. Other mechanisms to enhance access and also to ensure best fit
between jobs and skills shall likewise be pursued in partnership with other major
players in the education sectors. Among these mechanisms are the Ladderized
Education Program, the Youth Profiling for Starring Careers and the PGMA Training
for Work Scholarship Program.
1. Ladderized Education Program
The present system of education in the country does not provide for
permeability between technical-vocational and degree programs. Under the present
arrangements, a tech-voc graduate needs to go back to first year to pursue a degree
program because tech-voc is considered as a terminal course. It is recognized,
however, that a link between tech-voc and degree program is highly necessary as
the statistics show that the Philippine education and training has been producing
unemployed educated graduates every year while there exist occupations that are
critical and remain hard to fill up. This is a clear indication of skills mismatch situation
in the country.
Under this premise, Executive Order 358 entitled “To Institutionalize a

Ladderized Interface Between Technical-Vocational Education and Training (TVET)
and Higher Education (HE)”, issued by President Gloria Macapagal-Arroyo on
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September 15, 2004, and is indeed imperative. It is a timely response in the midst of
poverty, unemployment problems and labor and skills mismatch.
The purpose of Ladderization is to open up pathways of opportunities for

career and educational progression of students and workers. It intends to create a
seamless and borderless education and training that allows mobility in terms of
flexible entry and exit into the educational system. In essence, ladderized education
is an empowering tool because it provides options or choices to the students and
workers on when to enter and to exit in the educational ladder. More importantly, it
creates job platforms at every exit and provides the student an opportunity to get a
job and earn income.
The Ladderized Education Program has been rolled out by TESDA and
CHED for the Academic Year 2006-2007 covering eight (8) priority disciplines. The
list of priority disciplines shall be expanded in the future based on the needs and the
recommendation of the Technical Panels on Ladderization.
a. Agriculture and Fisheries

b. Health and Medical Services
c. Information and Communication Technology
d. Maritime
e. Tourism/Hotel and Restaurant Management
f. Criminology
g. Education
h. Engineering
2. Youth Profiling for Starring Careers (YP4SC)
In the Philippines, it is an accepted societal norm that career choices are to a

large extent influenced by parents who view the education of their children as their
major obligation. While children have interests, inclinations, ambitions and role
models, a lot of them are just too happy to ascribe to the ambitions of their parents
for them.
Education is a ticket for employment.

The right education or training is one
which yields employment opportunities
that fit to the one’s strengths and
competencies, thereby, maximizing
the investments put on it and
minimizing the incidence of dropouts
and jobs-skills mismatch.
Making the right career decision is

very crucial to mitigate the persistent
structural unemployment condition
where labor market demands are not
matched by the available manpower
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YP4SC’s framework of an optimal career decision-making
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supply. Banking merely on aspirations might cloud one’s objective judgment. This
is where TESDA comes in. It aims to facilitate intelligent career decisions for
parents and children. This gave birth to a program called “Youth Profiling for
Starring Careers (YP4SC)”, a complete guidance delivery system to help young
Filipinos make the right career choices based on an objective assessment of their
strengths and interests coupled with provision of information on what work will place
them in a “starring role”, updated information on what job and employment
opportunities that are and will be in demand and information on education and
training choices where the job can be learned. In the end, the students and parents
are equipped adequately in making the right career decision. Ultimately, it will lead
to a greater job fit and greater value to education and training. To ensure the
program’s success, a tracking mechanism is installed. It will trace the graduates
from profiling to the first instance of employment to determine if the intervention was
indeed helpful in their career path.
One hundred thousand (100,000) graduating high school students nationwide

were profiled in the first year of implementation. For 2006, the program targets the
same number of third year high school students. It is envisioned that this program
will be able to cover all third year high school students annually.
The program is one in the many strategic packages of TESDA towards

becoming more pro-active, job-facilitative, quality-assured and relevant. Under
TESDA’s Proactive Job-Skill Matching (SEEK-FIND-TRAIN) Paradigm Shift, the
program, through the labor market information it generates, influences TVET to be
market-driven, competency-based and sensitive to industry standards.
3. The PGMA Training for Work Scholarship (TWSP) Program
The PGMA-TWSP is a facility to provide the necessary supply to address the

skills demand of the industries. Specifically, it aims to provide skills and
competencies to job seekers through appropriate training programs that are directly
connected to existing jobs for immediate employment. It also seeks to empower
private education and training institutions to offer relevant training programs that
meet job requirements.
To realize the objectives of this program, the President provided an initial

P500 million which will fund 100,000 full or partial scholarship grants to high school
graduates, those employed but ready for a career change, underemployed or
unemployed, with or without experience and ready to undergo training in the
selected priority sectors covered in the NMS and other sectors with identified highly
critical skills requirements, namely:
• Agri-Business
• Aviation
• Construction
• Cyber Services
• Medical Tourism (Wellness Sector)
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• Metals and Engineering
The PGMA-TWSP shall also be directed to special programs to address

training needs of specific clientele groups such as the disabled soldiers, OFWs,
Special National TVET awardees, the Philippines Retirement Authority and the
beneficiaries of the Special Employment Program for Mindanao.
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III. MANPOWER DEMAND AND SUPPLY
A. Overall Manpower Demand and Supply Situation
1. The Demand
The aggregate demand for the period 2006-2010 is placed at 6,426,128. It

covers 4,209,740 local demand and 2,216,388 overseas demand. Out of the total
demand, sectors with highly critical skills as identified in the National Manpower
Summit accounted for 3,532,467, while 2,893,661 will be accounted by the critical
mass and emerging skills in the other priority sectors (Table 11).
The highly critical skills are those that are urgently needed and should be
addressed immediately. Any delay in action would cause economic and job
opportunity losses. Examples of these are the demands of the BPO industry and the
demand due to rapid manpower turnover in the aviation industry
Critical mass represents the skills to be maintained and continually

developed because of natural attrition, vertical and lateral skills progression, natural
growth of existing economic sectors. Emerging skills, on the other hand, are
brought about by technological changes, occupational shifts, new sectors and rapid
expansion that can be pro-actively addressed in the short-term, and will also require
upgrading of trainors both in technology and instructional methodology.
1.1. Local Demand
The critical occupations in the priority sectors covered in the National

Manpower Summit - - Agribusiness, Hotel and Restaurant, Health Services,
Medical Tourism (Wellness Sector), Cyber Services, Mining and Aviation - - logged a
projected local demand of 3,432,236 additional jobs for 2006 to 2010 (Table 12).
Other priority sectors identified include Automotive, Construction, Decorative

Crafts, Garments, HVAC-R, Metals & Engineering, Furniture & Fixtures, Food &
Beverages, Footwear, Social & Community Services, ICT, Tourism, Electronics,
and Land Transportation. The critical occupations in these sectors logged a
projected local demand of 777,504 additional jobs for 2006-2010 (Table 13).
1.2. Overseas Demand
The preference of overseas employers for the Filipino worker cannot be

overstated. The estimated Filipino migrants’ annual remittance of USD 10B
represents a critical source of the much needed revenue to fuel the Philippine
economy afloat. Such amount is estimated to represent 10% of the GNP and about
50% of the total government budget.
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Table 11
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Table 12
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Table 13
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POEA records show around 250,000 new hires of the total average 800,000
deployed workers per annum. Recent demand figures reveal a marked optimism for
overseas employment prospects with an annual average of a million OFWs for the
next 5 years. Land-based workers continue to dominate the employment
opportunities with a ratio of 7 for every 10 deployed workers. It is noteworthy that
nine of every ten employment opportunities are skilled jobs.
As reflected in Table 10, the most dominant sector for overseas employment
is Social Services Sector representing 34.5% followed by the Tourism sector
(11.73%) as a far second, followed by Maritime (10.88%), and the Construction
Sector (10.64%).
Table 10: Projected Overseas Employment

2006-2010
Sea Based
Land
Total % Distn. Work experience still remains
Based
SECTOR
1,310,857 3,809,669 5,120,526 100% as a basic criterion and
25.60% 74.40% preference in overseas
Agribusiness 10,918 1,078 11,996 0.23%
Aviation 3,707 3,707 0.07%
employment. This implies that
Cyber Services 0 0.00% the replacement factor has to
Health 1,994 55,987 57,981 1.13% be considered seriously by the
HRM 329,501 175,670 505,171 9.87%
Medical Tourism 0 0.00% sectors and companies most
Mining 0 0.00% affected by overseas
Automotive
Construction
6,086
65,023
30,895
479,662
36,981
544,685
0.72%
10.64%
employment factors. Included
Decorative Arts 19,746 19,746 0.39% in the considerations in the
Electronics 37,246 37,246 0.73% post-NMS discussions is
Food&Beverages 19,731 19,731 0.39%
Footwear 0 0.00%
considering an amendment in
Furniture & Fixtures 1,225 3,028 4,253 0.08% the composition of the POEA
HVAC-R 209 5,302 5,511 0.11% Board to reflect the interests of
Garments 541 109,936 110,477 2.16%
ICT-IT 9,393 9,393 0.18% the domestic industry.
Land Transport 35,592 35,592 0.70% Likewise, there is a felt need
Maritime 553,991 3,116 557,107 10.88%
Metals&Eng 5,326 51,483 56,809 1.11%
for a workable and effective
Pers. Svcs. 17,707 17,707 0.35% mechanism by which some
Social Services 32,669 1,731,726 1,764,395 34.46% resources from overseas
Tourism 3,997 596,451 600,448 11.73%
Shipbuilding 517 517 0.01%
employment are plowed back
Financial Services 10,825 10,825 0.21% for the development of skilled
Others 6,627 232,277 238,904 4.67%
workers to mitigate the
Non-TVET 292,304 43,596 335,900 6.56%
Professionals 446 134,998 135,444 2.65% depletion effects of overseas
employment.
2. The Stock of Certified Workers
For the period 2000-2005, TESDA’s Registry of Certified Workers recorded a

total of 416,314 certified workers. Of this total, 352,367 certified workers, or six of
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every seven certified workers, correspond to the identified critical and emerging
skills in the priority sectors under study. Around 21,502 of the certified workers
address the mission critical occupations identified in the National Manpower Summit,
and the bulk totaling to 330,865 workers address the other priority sectors (Table
11).
On the other hand, 63,847 certified workers are in occupations deemed not
mission critical or skills belonging to sectors that were not prioritized.
Considering that the registry covers a span of 5 years, the annual average of
about 83,000 certified workers is definitely wanting. The Second Cycle National
TESD Plan period 2005-2009 has one of its major Key Result Areas the enhanced
Assessment and Certification System. This equates to more workers and TVET
graduates subjecting themselves to National Competency Assessment, and more
Filipino workers being certified as competent. The Plan targets an average of at
least 300,000 workers and TVET graduates getting assessed, more than half of
whom get ting certified per annum.
Strengthening of the Competency Assessment and Certification System, one

of the pillars of TESDA as an authority, remains to be a priority agenda in TVET. As
mentioned earlier, TESDA is currently pursuing measures towards this direction.
3. The Manpower Supply
From the realized 1.35M TVET capacity registered in 2005, and consistent
with the NTESDP 2005-2009 target of expanding the TVET capacity, an optimistic
annual ten percent increment is expected to result to a total aggregate TVET
capacity of 8.80M graduates for the period 2006-2010.
Looking at the same priority sectors identified above, the projected supply for
the occupations covered reached a total of 2,998,150 broken into 1,854,730 for
sectors with highly critical skills and 1,143,420 for other priority sectors. The total
projected supply represents only 34% of the aggregate TVET capacity of 8.80M.
This means that almost two thirds or 66% of the TVET capacity can be redirected to
address the requirements in specific sectors where large gaps are expected to arise.
A part can likewise be redirected in the conduct of livelihood and extension
programs towards resource-based self-employment endeavors, in convergence with
National Government Agencies, NGOs, the enterprises, and other TVET providers,
to create employment opportunities especially in the communities (Table 11).
4. Addressing the Gaps
The comparison of the demand and supply projections provides a net result
of 3.08M shortage - - i.e., 1.66M shortage in sectors with highly critical skills (from
NMS) and 1.42M shortage in other priority sectors.
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Across the various sectors covered, there is a mix of shortages and
surpluses. Surplus exists in 8 sectors while shortage is manifested in 13 sectors.
The entire manpower demand for one sector, the Medical Tourism (Wellness), will
be adequately met, thus, neither surplus nor shortage is expected.
SURPLUS - Health, Automotive, Food and Beverages, Footwear,

HVAC-R, ICT, Metals and Engineering and Tourism
SHORTAGE - Agri-Business, Aviation, Cyberservices, Hotel and

Restaurant, Construction, Decorative Crafts, Electronics, Furniture and
Fixtures, Garments, Health, Social and Other Community Services, Land
Transport and Maritime
Given the above scenario, TESDA is purposively seeking measures to

lessen the shortages and redirect the surpluses in the supply of skilled manpower.
Guided by the parameters of the strategy PRO-ACTIVE JOB-SKILLS MATCHING,
stronger linkage with TVET providers and employers, more efficient labor market
intelligence system, scholarship programs and stronger advocacy for TVET, among
others, have been instituted.
One specific measure is the PGMA-TWSP which is a facility to provide the

supply to meet the demand particularly in highly critical skills. The specific
occupations that the PGMA-TWSP will address include the following:
Agri-Business Butchers 2,500

Cyberservices 2D/3D Animators 6,105
Software Developers 18,315
Call Center Agents 366,306
Medical Transcriptionists 15,363
Legal Transcriptionists 6,105
Aviation Aviation Technicians/ 15,177
Mechanics
Ground Equipment 1,710
Operators
Health Biomedical Equipment 1,000
Technicians
Hotel and Restaurant Baristas 7,658

Cooks 4
Medical Tourism Spa Therapists 400

(Wellness Sector) Massage Therapists 7,500
Pinoy Hilots 4,500
Metals and Gas Metal Arc Welders 12,210

Engineering
Construction Heavy Equipment 6,000

Operators
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Other scholarship programs such as the Private Education Student Financial
Assistance (PESFA), the ADB-TESDP Scholarship Program, the Jobs-Directed
Scholarship Program and the I-CARE Program shall focus on programs and courses
which will enskill the trainees with competencies required by available jobs. This is
expected to result to immediate employment for the trainees after the training.
C. Sectoral Demand and Supply Analysis
1. Sectors With Highly Critical Skills
1.1. Agribusiness
The Philippine agriculture and fisheries sector contributed about one-fifth of

the country’s economy. In 2005, the gross value-added (GVA) in agriculture and
fishery sectors amounted to P777 M at current prices, accounting for 14 percent of
the country’s gross domestic product. The value of agri-fishery production is
continually rising. From P656 M in the year 2003, it went up to P772 M in 2004 and
in 2005 the total value of agricultural production was recorded at P816 M. The 2005
value of production figures showed that agricultural crops contributed more than
P407 M. This was followed by livestock at P154 M, fishery with P147 M and poultry
accounting for another P108 M.
The agribusiness sector is comprised of aquaculture, crop production,

livestock/poultry, agri-product processing, and other related sub-sectors.
Projected demand for the sector is expected to reach 2,047,755 for the period
2006-2010. By sub-sector, occupational demand for crop production is projected at
1,480,263 for the five-year period. This is equivalent to more than 72.2 percent of
the entire demand for the agri-business sector. The aquaculture sub-sector
registered a projected demand of 338,287 or 16.5 percent of the total agri-business
demand. Demand projection for the livestock sub-sector is 141,898 (6.9%). This
includes the overseas demand for butchers (e.g. Australia) which is placed at
1,119 for the 5-year period. Manpower demand for agri-product processing is
registered at 60,822 (3.0%) (Table12.1).
In the aquaculture sub-sector, high demand is seen for inland and coastal
fishermen and aqua-culturists. As to crop production, farmers for vegetables, fruits,
rice, root crops, coconut, among other crops, comprise the bulk of the demand. The
same configuration holds true for livestock/poultry raising where producers or
farmers comprise the majority of the demand projections. In agri-product
processing, high demand for food and fish processors is expected along with
substantial requirements for meat processors, among others.
The projected manpower supply will reach a total of 1,073,302 for the period
2006-2010. The biggest chunk of the supply will come from aquaculture at 613,828
(57.2%), and crop production placed at 292,551 representing 27.2 percent of the
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total estimated supply. In terms of projected supply for the livestock/poultry sub-
sector, it is calculated to reach 30,659 or 2.8 percent while for agri-product
processing was at 117,776 (11%).
The biggest chunk of supply figures in aquaculture will be inland and coastal
fishermen at 529,643, and aqua-culturists with 58,087. For the crop production sub-
sector, the bulk of the supply will be farmers (vegetables, crops, fruits, rice and root
crops). For livestock and poultry, the supply will be comprised mostly of livestock/
poultry producers, farmers, swine production technicians and artificial inseminators.
The top agri-product processing occupations include processors of food, fish, meat,
cured meat and smoked fish.
The projected manpower demand gap in the agri-business sector for 2006-
2010 will reach 2,047,727 given a stock of certified workers of only 1,147.
Based on the estimated manpower demand gap and projected manpower

supply for the agribusiness sector, there will be manpower surpluses in aquaculture
and agri-product processing for the 2006-2010 period. Overall, however, there will
be a shortfall of 974,425 workers for the next five years. The bulk of the shortage is
in the crop production sub-sector (1.19 million), livestock/ poultry (111,135 workers)
and other agricultural support services (9,116 workers).
Skills shortages will be experienced in the different agribusiness sub-sectors.

In the aquaculture sub-sector, skills shortages are pronounced for seaweed
producers/farmers and fish farm cultivators. For crop production, large manpower
shortages are anticipated for farmers (fruit trees, rice, vegetables, tree nut and root
crops). Occupations in short supply for livestock and poultry will be for livestock and
poultry producer, cattle and dairy farmer, poultry farmer, swine production
technician, and butchers. Skills shortage in agri-processing sub-sector will be mostly
food processors. Also in demand will be post-harvest handlers and technicians.
Shortages are likewise expected for laborers, drivers, rice and fish growers, small
engine repair/maintenance and other agri-related sectors.
Through the President Gloria Macapagal-Arroyo–Training for Work

Scholarship Program (PGMA-TWSP), 2,500 of the total demand for butchers for the
period 2006-2010 shall be addressed.
Clearly, a purposive expansion of the capacity of agri-fishery related

programs is in order. TESDA’s network of 23 Agri-fishery Technology Institutions
nationwide Agri-fishery Technology Institutes shall continue to contribute to the
development of skilled agri-fishery technicians. By adopting the Village Technology
as one of its paradigm shifts, use of appropriate technology in this sector shall
enhance entrepreneurship activities in the countryside. In addition, the State
Universities and Colleges (SUCs) offering agriculture-related programs shall also be
supplying the manpower required and the application of agri-related researches
through their extension programs.
Bulk of the training interventions shall continue to be provided by the

Department of Agriculture through its network of Agricultural Training Institutes
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Table 12.1
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(DA-ATI) and Fishery Training Centers. The DA-ATIs offer training programs for rice,
corn, high value crops and vegetables, fishery and capability build-up interventions.
Likewise, the training programs for the fisher-folks offered by the Bureau of
Fisheries and Aquatic Resources (BFAR) on aquaculture, fish capture, seaweed and
mariculture, among others should be vigorously pursued.
The LGUs are expected to provide continuous support to the Municipal

Agricultural Officers (MAOs) and/or Provincial Agricultural Officers (PAOs) in the
conduct of extension programs towards improving the knowledge and productivity of
agricultural workers.
TESDA needs to work on the integration of all agri-fishery training programs

of the Agricultural Training Institute (ATI) and the Bureau of Fisheries and Aquatic
Resources (BFAR) of the Department of Agriculture and other relevant entities. This
will help standardize the training programs in the agri-fishery sector across regions.
Concerns for quality, hygiene, safety and the challenge of Halal Food production
need to be carefully looked into. Thus, the role of the Bureau of Agriculture and
Fishery Product Standards, Bureau of Food and Drugs, the National Meat Inspection
Commission, among other regulatory bodies must be well amplified.
In addition, the government should consider granting incentives to encourage

private TVET providers offering agriculture-related programs.
1.2. Aviation (Air Transport)
The aviation industry is composed of two segments. The first segment is that
of the airlines consisting of scheduled and unscheduled carriers, charter and air taxi
operators, and the general aviation sector. The second segment is composed of
service providers consisting of the maintenance, repair and overhaul organizations
(MROs), ground handling agents, caterers, ticketing and reservations agents,
terminal services both for passengers and cargo, and aviation schools, among
others.
The Philippine Airlines (PAL) is the first and the Asia’s oldest carrier operating
in this field. Starting in 1995, five new airlines, namely, Grand International Airways
and Cebu Pacific Air, Air Philippines, Asian Spirit and Mindanao Express, joined the
aviation industry.
The Philippines has a network of four international airports, four alternate

airports, 12 trunk line airports, 36 secondary airports, 29 feeder airports and over
200 airstrips all over the archipelago from Basco, Batanes to Jolo, Sulu. Daily,
around 25,000 passengers and almost 500 tons of cargo traverse the 31
international and 21 domestic destinations of Philippine flag carriers.
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Table 12.2
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In 2005, the air transport industry has contributed some 5.3% to the Philippine’s
Gross Domestic Product (GDP). This, however, represented a decline of 11.6% relative
to 2004 GDP.
In July 2005, the sector employed a total of 27,000 workers composed of

professionals and associate professionals (25%), clerks and service workers (30%),
laborers and unskilled workers (22.22%) and special workers (1.85%). Of the total
37.521M employed persons accounted in 2005, the sector constituted a mere 0.07% of
the total employed in the country.
The aviation industry has a projected domestic and overseas manpower demand
in the next five years for 19,353 skilled aviation workers. A big majority of these are
Aviation Technician/ Mechanics with 17,643 (91%) while the remaining 1,710 (9%) are
Mechanics and Ground Equipment Operators (Table 12.2).
The Philippine aviation sector is threatened mainly by the overseas outflow of

skilled workers, e.g. aviation mechanics and technicians estimated at 2,466 in the next
5 years caused by the high salary being offered by other countries. The comparative
compensation given to aviation mechanics from three countries are as follows:
Philippines (Php30,000.00/month); Singapore (US$ 3,000/month) and UAE (Dhs
3,713/month or about Php 52,767).
There is an urgency to train more aviation mechanics/technicians, with

competency on maintenance and repair of avionics, airframe and power plant facilities.
In terms of training capacity, only two airline training providers can offer training
programs to achieve the required competencies for the aviation industry. These airline
training providers have a maximum capacity to train only 120 persons a year.
PGMA-TWSP intends to address the manpower requirements in these mission-

critical skills through a total of 16,887 scholarship certificates.
Other measures that should be looked into are the following:
 Airline companies to consider the establishment of their training centers to

cater to their specific needs;
 Encourage participation of the sector in the Dual Training System;
 Government to study measures to control the outflow of these skills overseas;
and
 Encourage training providers to offer training programs addressing the
mission-critical skills.
1.3. Cyberservices
Information technology has ushered in more efficiency in the global business.

Outsourcing has been a strategic way for business to survive. The sub-sector has
grown exponentially in the recent past. This business niche offers an opportunity for
the Filipino to earn on high value occupation while protecting himself from the
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possible social costs of overseas employment. A fast growing information
technology-based sector is cyberservices. Defined as services delivered over
cyberspace, this sector includes all of the following:
 Teleservices – services delivered via phone, such as directory inquiries or

credit card cancellations;
 E-Services – discrete transactions serviced via the internet, such as a tax
payment, an e-book download, or an e-learning session;
 IT Outsourcing – IT or ICT services, such as remote network diagnostics
or system administration;
 IT-Enabled Services or ITES – batched services, such as digital animation
or copy-editing or medical transcription;
 ICT-Enabled Services – real-time services, such as having office
receptionists located remotely; and
 Business Process Outsourcing – such as loans processing at a remote
location.
Cyberservices revenues reached US$1.3 B in 2004 and grew by 64 percent in

2005 as it registered revenues amounting to US$2.2 B. This is a fast-growing sector
and estimated revenues are expected to reach US$11.7 B by 2010.
The Business Processing Association of the Philippines (BPAP) has

capsulized the industry as follows: (1)The Philippines can excel in all of the e-
Services sectors due to the quality of service the Filipino provides; (2) English
proficiency is key to success as it is required by all sectors of the economy; (3)
Contact Centers have the highest demand but is also more advanced in terms of
Human Capital Development; (4) Areas of opportunity for empowering large number
of workers lie in Business Processing Outsourcing and Medical Transcription; (5)
Niche area for creative talent is in the area of Animation; and (6) Leveraging on our
level of IT and Technical proficiency in Software Development and Engineering
Design.
The opportunity lost in terms of cancelled Contact Center contracts due to

unavailable skilled workers is a cause for concern. The low intake rate of 2-3% of
applicants is attributed to their low level of competencies in the English Language
Proficiency compared to the requirements set by the industry.
Some BPO companies have set up their own training arm to ensure a
continuous pool of available workers which can be effective but cost prohibitive. The
existing capacity of the training providers in this sector is projected at 20,000 per
annum.
As projected, the manpower demand in the cyberservices sector for 2006-

2010 is 962,259. The highest demand is posted by customer contact agents at
735,500. It is followed by software developers (122,100), medical transcriptionists
(61,900), animators (22,759) and legal transcriptionists (20,000) projected demand,
respectively (Table 12.3).
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Table 12.3
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On the supply side, the total projection for the five-year period is only 406,089.
The bulk of the supply will be registered by customer contact agents (366,306)
followed by software developers (18,315). The sector is expected to have a shortage
of 556,170 workers for the same period. The highest shortage is posted by customer
contact agents at 369,194 and software developers at 103,785. All occupations
under the cyberservices sector posted significant shortages.
To address the shortages in the highly critical skills in cyberservices, a large

portion of PGMA-TWSP has been dedicated to the sector for the training of qualified
workers required by the industry. Critical occupations to be addressed by the PGMA-
TWSP include: 2D/3D animators (6,105); software developers (18,315); call center
agents (366,306) and medical/legal transcriptionists (15,363).
The following recommendations can also be considered:
 TESDA shall encourage TVET IT providers to re-direct their course

offerings to the critical skills needed by the sector;
 Slot allocation for the PESFA and ADB scholarships shall be prioritized to
address these critical skills especially in provinces covered by the
Philippine Cyberservices Corridor which has a spread of 600 miles from
Baguio City to Zamboanga City;
 TESDA should encourage firms in the cyberservices sector to avail of the

apprenticeship program and the dual training system as a training
mechanism to meet the shortages in critical skills; and
 The capacity of Korea-Philippine Training Centers for IT in Quezon City

and Bulacan shall be maximized in the provision of immediate
interventions.
1.4. Health
Health care in the Philippines is delivered in two networks. The Facility-Based

health units, which provide curative treatment and diagnostic services; and the
Community-Based health units which conduct primitive and preventive work.
The facility-based health units/hospitals are determined by bed capacity and

are distributed as primary, secondary, and tertiary. Of the three types of hospitals,
836 (47%) are primary hospitals with 13,917 beds, 654 (38%) are secondary
hospitals with 25,731 beds, and 248 (14%) are tertiary with 45,518 beds. While
government hospitals are fewer, they have on the average bigger bed capacities
than the private hospitals. A total of 45,395 beds are housed in the government
sector, accounting for 53% of total hospital bed capacity in the country.
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The community-based health units consist of municipal/rural health centers at
the municipal or village level of local governments. There are 15,800 community-
based health units, where 2,400 (15%) are municipal health centers, and 13,400
(85%) are rural health stations. They serve 1,496 municipalities and 41,943
barangays across the country.
According to the National Manpower Summit (NMS) statistics, the

public/private hospitals, sanitaria and other similar activities will have an estimated
demand of 23,587 health workers from 2006-2010. By occupational groupings,
health aides/nursing aides will comprise the majority of the manpower demand with
22,508 or a share of 95% (Table 12.4).
The country’s projected manpower supply for health sector 2006-2010 is

94,275. Out of this total projected supply, health/nursing aides will again post the
biggest share at 98.9% (93,275). This oversupply will result to stiff competition for
available health aide positions. On the aggregate, there will be a manpower surplus
of 70,861 for 2006-2010.
The continuing development of high quality health-related manpower needs to

be pursued in view of the increasing demand for health care services, both locally
and overseas. TVET provides an avenue for the development of more manpower for
the health sector. Several health-related TVET programs (2,110 or 16%) are now
registered with TESDA through the Unified TVET Program Registration and
Accreditation System (UTPRAS). To date, a Training Regulation for health care
services National Certificate II (NC II) was already promulgated. This leads to the
following occupations: health aide, nursing aide, nurse adaptation, assistance health
care, nurse assistant and attendant dispenser. The training regulation for biomedical
technician is being prioritized for development.
At present, out of the 3,682 TVET institutions in the country 1,167 are offering
health-related courses.
Ensuring the availability of qualified health care providers shall require the
following:
 Strengthen the linkage between hospitals and training providers to

address the employment mismatches (the linkage should focus on
providing information on labor market trends, curriculum development,
career guidance, and counseling);
 Formulate of competency-based curriculum with partner hospitals to be

used by the schools/institutions to enhance the quality of training provision
according to industry standards; and
 Promote mutual recognition of skills and qualifications between and

among countries in the field of health care services and medical
equipment technicians.
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Table 12.4
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1.5. Hotel and Restaurant
The Hotel and Restaurant, as a sub-sector of the Tourism Industry is

identified in the MTPDP 2005-2010 to have the potential to boost Philippine
economy. It includes accommodation and restaurant and bar services.
Accommodation includes hotel, resorts, inns, hostels, motels and accommodation in
cruise liners. Restaurant and Bar may be part of an accommodation establishment’s
operations or independently operated under a separate management outside or
inside the establishment. This also includes entertainment aspects of some
restaurants and bars.
The projected total additional manpower demand for 2006-2010 in the hotel
and restaurant sub-sector is 456,350. Of this projection, the top 5 occupations with
the greatest demand are: cooks (100,701), waiters (82,312), food and beverage
service attendants (64,400), food servers and handlers (44,251), and room
attendants/ chambermaids/ housekeepers (38,353) (Table 12.5).
The hotel and restaurant sub-sector has a stock of 20,355 certified workers,
with bakers accounting for 7,141 and cooks at 4,837 in 2000-2005. Given the
concern for quality, the low ratio of certified workers against demand suggests a dire
need to intensify competency assessment and certification in this sub-sector.
The projected manpower supply for 2006-2010 is 261,132 , with bakers,

cooks, attendants/chambermaids, food garnishers, and pastry and confectioner
makers topping the list.
Based on projections, manpower shortage is expected to reach 174,864 for

2006-2010 period. The five (5) occupations with highest manpower shortages are:
waiters (68,234); food and beverage service attendants (54,877); cooks (53,870);
food servers and handlers (44,251); and bartenders (22,341).
The POEA data on overseas employment reflect that one of the dominant
sectors for overseas employment is Hotel and Restaurant. According to the data,
the sector will be needing a total of 86,962 workers in the next five years. Overseas,
waiters will be the most sought after occupation with 52,605, followed by cooks at
14,975.
Meeting the manpower demand in the Hotel and Restaurant sub-sector will
entail the following initiatives:
 Encourage more training providers in the sector and possible expansion of

the capacity of the existing TVET providers;
 Encourage active participation of private sector in dual training system,

apprenticeship program, enterprise-based training, and more on-the-job
training (OJT); and
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Table 12.5
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 Promote assessment and certification especially in food and beverages
and particularly on standards of safety on food and beverage handling.
1.6. Medical Tourism (Wellness)
Medical Tourism is a developing concept whereby tourists from wealthy

nations in the west and the middle-east travel for cheaper medical and healthcare
services in other countries coupled with rest and recreation. The sector is a product
of improved medical skills, technology and facilities in the developing world. The
estimated value of the medical tourism industry is around US$ 40 B (ITC, Geneva).
There are three key occupational groups under the medical tourism industry:
(a) the medical/surgical (surgeon, ophthalmologist, dentist, trained nurse, geriatric
specialist, PT/OT therapist, radiologist and caregiver); (b) the wellness clinics (spa
and massage therapist, spa manager, acupuncturist, chiropractor, MD/alternative
medicine and herbalist); and (c) the support services (medical tourism personnel
assistant, IT and call center agents with health care background and
interpreter/translator).
The projected manpower demand for medical tourism (wellness) for 2006-
2010, which includes the spa therapists, massage therapists, and “Pinoy hilot” is
estimated at 12,400. The demand is attributed to those: (a) tourists who seek
medical services such as spa, massage, and related services while on tour; (b)
guests from developed countries who are in search of leisure, cheaper medical
services, and use of traditional medicine; and (c) ageing tourists who are looking for
permanent residence as their retirement haven (Table 12.6).
To meet the manpower requirements for the expected growth of medical

tourism in the country, the government, through the PGMA-TWSP, shall provide
scholarship to a total of 400 spa therapists; 7,500 massage therapists; and 4,500
“Pinoy hilots” for the period 2006-2010.
The following measures shall help ensure that the manpower requirements of
the sector are adequately addressed:
 Strengthen labor market information and career guidance counseling to

promote the sector;
 Create attractive packages for medical tourism-related courses that are in

demand and critical to the needs of the sector;
 Fast track registration of new TVET programs of training providers offering

medical tourism-related courses; and
 Develop package of incentives for students to enroll in the medical tourism

courses.
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Table 12.6
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1.7. Mining
The location of the Philippines being at the so-called Pacific “rim of fire”
makes it a mineral rich country. So rich is its mineral stock that the country ranks
third in the world in terms of gold deposits, fourth in copper, fifth in nickel and sixth in
chromite. The Chamber of Mines of the Philippines estimated that identified mineral
deposits at 2004 metal prices amounted to US$90 billion. These resources are
projected to even reach US$840 billion once its potentials are fully tapped. Figures
from the DENR cited that the mining sector contributed around P18 B to the
economy or 1.6 percent of total Gross Domestic Product. Current direct employment
numbered to 104,000 whose total benefits cost more than P5 B. For each mining job,
however, 4 to 10 allied jobs are created making mining an employment generator.
The Medium-Term Philippine Development Plan (MTPDP) 2004-2010

projected that the mining sector will be able to generate US$4-6 billion of
investments, US$5-7 billion of foreign exchange and at least 240,000 jobs in the next
six years.
The sector’s total projected demand for skilled workers is at 39,054 for 2006-
2010. Of these, stone splitters/cutters/carvers has the highest demand followed by
coal miners. Other skills which are also needed include: structural welders, heavy
equipment operators/mechanics, plant/machine operators, maintenance men, quarry
operators, mining and metallurgical engineering technicians, miners, shot firers,
blasters, mine samplers, drillers, crushers, and rough carpenters (Table 12.7).
It has to be noted that the skills in demand for the mining industry cut across
other sectors such as construction, metals and engineering, land transport and
automotive. Thus, in general, most of the workers needed in the mining sector are
also coming from these sectors.
Considering that the nature of the jobs in the mining sector is “difficult, dirty
and dangerous”, there is a need to enhance the competencies of the workers as
regards health and safety. The multi-skilling of the mining skilled worker is also
imperative to provide wider employment options.
2. Sectors With Critical Mass and Emerging Skills
2.1. Automotive
The Automotive Industry represents a significant portion of global economic

activity with extensive upstream and downstream linkages to many diverse industries
and sectors. In the past decade, the motor vehicle industry’s contribution in output,
employment, investments and exports have been increasing. Moreover, the synergy
within the industry has strengthened the linkages between the motor vehicle
assemblers and the motor vehicle parts and components manufacturers.
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Table 12.7
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The Philippines vehicle market is approximately 55 percent passenger
vehicles and 45 percent commercial vehicles. Japanese manufacturers dominate
this market with over 80 percent market share, while the Korean manufacturers hold
15 percent.
Projected skills demand for automotive sector is expected to reach 20,077 for
the 2006-2010 period. This covers local and overseas manpower demand. The
demand for automotive mechanics is projected at 5,025, followed by
mechanics/motorcycle mechanics at 4,017 and auto electricians at 2,894. For
overseas employment, the diesel fuel injection technicians and the auto electricians
topped the list at 2,954 and 2,068, respectively (Table 13.1).
The manpower supply for the automotive sector is projected to reach a total of
36,266 for the five-year period. Majority of the manpower supply will be composed
of automotive mechanics and heavy equipment mechanics. Based on available data,
the stock of certified workers in automotive is placed at 28,936 for the entire period.
Overall, manpower surplus at 45,125 is expected for the sector particularly in
automotive mechanics at 30,721 and heavy equipment mechanic at 8,255.
Workers in the automotive sector have to be upgraded to keep pace with the
technological developments in the sector. Training provision needs to be aligned with
industry requirements. Massive information dissemination on job opportunities in
other sectors has to be provided.
2.2. Construction
The construction industry’s primary role in the development process in the

country is to provide the necessary infrastructure facilities needed to stimulate,
sustain and support growth in the various sectors of the economy. Over the
years,the construction industry has exhibited its capacity to fulfill this vital role as an
active partner of government in its Public Infrastructure Program.
Data indicate that construction continued to recover in 2004, posting a

significant growth of 8.9% from the slump of negative 2.6% in 2003. The expansion
of the economy during the year translated to a much improved growth of GDP at
3.7% in 2004 from 2.3% in 2003. GVA for private construction increased by 6.84%
from 53,478 in 2002 to 57,138 in 2003. GVA for public construction on the other
hand go down substantially at 15.5% with 34,872 for 2003 and 41,266 in 2002.
A total demand of 262,995 construction workers is projected for the period

2006-2010. The demand covers 214,591 for local employment and an additional
48,404 for overseas employment (Table 13.2).
For local employment, demand by occupational area shows that general

masons rank highest at 85,815 or 26% while the lowest demand is projected for
draftsmen at 312 or 9% of the total. For overseas employment, demand is highest for
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Table 13.1
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Table 13.2
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riggers and plumbers with 12,882 (27%) and 12,082 (25%), respectively.
Operators for various types of heavy equipment have a collective demand of 20,094
(42%).
On the other hand, supply projection shows a total of 174,648. Supply of

general masons would reach 78,088 while plumbers and building wiring electricians
would total to 30,030 and 15,291, respectively.
The current stock of certified workers is registered at 34,325. This results to

an overall shortage of 54,023, the bulk of which is for heavy equipment operators
and riggers. The low ratio of stock certified workers to the prospective indicates the
need for purposive promotion of competency assessment and certification for the
sector.
Recognizing the critical need for heavy equipment operators, TESDA allotted
a total of 6,000 scholarship slots for various types of heavy equipment operators
under the PGMA-TWSP scholarship program. But the net shortage remains high and
would therefore necessitate further measures to minimize negative effects on the
growth of the sector considering its role in the overall development of the country,
and to maximize opportunities offered by overseas employment.
Strengthening partnership between government agencies and the private

sector in providing training opportunities and meeting global standards is one
measure that needs to be forged. Likewise, the promulgation, or updating if
necessary, of the developed Training Regulations on heavy equipment operation
and rigging, the demand for which is noted to be high, should be pursued . Such will
require the declaration of these occupations by the TESDA Board as priority
occupations. The inventory of developed TRs shows that there are already 15 TRs
developed for heavy equipment operation (for various types of heavy equipment)
and 1 for rigging as of 2004.
2.3. Decorative Crafts
The Decorative Crafts sector is composed of the following sub-sectors:

jewelry; gifts, toys and house wares (GTH); and ceramics.
The Philippines’ jewelry sub-sector is broadly classified into two categories:

a) fine and costume articles of personal adornment made of precious metals, stones,
pearls or combinations thereof; and b) articles made of precious metals, with or
without stones for personal use of a kind normally carried in the pocket, handbag or
in the person. The Philippines is ranked 14th among the largest exporters of costume
jewelry.
The GTH is a non-traditional export industry. It is labor intensive that is

continuously in need of skills critical to the business. It is experiencing difficulty in
obtaining skilled workers.
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Table 13.3
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The growth of the ceramics sub-sector has seen the increase in the
company’s capacity and capability in terms of improved production infrastructure,
more competent corps of managers and highly talented and skilled workers.
For the 2006-2010 period, manpower demand for decorative crafts is

projected at 61,725 workers. This is composed of 42,586 or 69 percent as local
demand and 19,139 or 31 percent representing the overseas demand. The sector’s
projected manpower supply is estimated to reach 50,000 for the 5-year period and
could experience a manpower shortage of 11,540 (Table 13.3).
By sub-sector, GTH, including embroidery has a high projected demand of

47,746 workers. Of this total, 12,154 will be for overseas demand and 35,592 for
local requirements. The GTH has a manpower supply of 30,000 for 2006-2010. The
sub-sector is expected to have a shortage of 17,624 for the same period.
The projected demand for ceramics assemblers and designers for 2006-2010
is posted at 7,941. Local demand is placed at 5,700 workers and overseas, 2,231.
The projected manpower supply for the next five years is 10,000 workers.
The jewelry sub sector manpower demand for the next five years will total to
6,038, with 4,753 workers expected to work locally and 1,285 workers to work
abroad.
The stock of certified workers listed in the manpower registry in decorative

craft for 2006-2010 is only 185. The planned development of TR in decorative crafts
should be assured.
The total projected manpower supply for decorative crafts is placed at 50,000
workers for the five-year period. The anticipated shortage of 11,540 workers will be
more pronounced among workers in the GTH sub-sector. As noted, manpower
surpluses will be felt in the jewelry and ceramics sub-sectors.
The focus of skills development efforts in this sector should be in product

design, local content and productivity improvement. Inter-sectoral complementation
to strengthen forward and backward linkages should also be pursued.
2.4. Electronics
The Philippine electronics industry covers the following sub-sectors:
1. Semiconductors (microelectronics) and other components

2. Electronic Data Processing (EDP) Equipment
3. Office Equipment
4. Telecommunication Equipment
5. Communications and Radar
6. Control and Instrumentation
7. Medical and Industrial
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8. Automotive Electronics
9. Consumers Electronics
The industry is export-oriented and dominated by foreign firms numbering to 515

or 72% out of 715 electronic firms in the country.
The total projected manpower demand for 2006-2010 is placed at 64,824 mainly
for local employment. The bulk of the demand is for consumer electronics mechanic
with 37,462 or 57.7% of the total demand. Another 15.7% is for electronics machine
operators (10,200). Demand for electronic assemblers accounts for 12.6% (8,215),
while demand for electronics component testers (6,700), appliance service technicians
(1,709) and electronics repair technicians (538) collectively accounts for 14.0%
(Table 13.4).
The total manpower supply for the same period is 44,064. Across the
occupations indicated above, the highest supply is for consumer electronics mechanics
which is placed at 15,000 or 34% of the total supply. The supply for electronics
assemblers comes second with 7,984 or 18%. The supply for the other occupations is
collectively placed at 21,080 or 48%.
The current stock of certified workers in the sector totals to 12,849, the bulk of
which is for consumer electronics mechanics (12,751 or 99%). The ratio of certified
workers to the projected demand figures suggests further strengthening of the
competency certification program in this sector.
Taking into account the projected supply, a total shortage of 7,911 workers in the
sector is expected for 2006-2010. Consumer electronics mechanics will have the
biggest shortage at 9,711. On the other hand, surplus is projected for electronics repair
technicians (2,515) and appliance service technicians (3,972).
The sector boasts of 436 TVET providers with registered programs totaling to
673 in various occupational areas. Full TVET capacity in this sector, i.e. total supply for
all occupations, is estimated at 140,649 for the 5-year period. This would mean that the
TVET providers in this sector can adequately address the gaps in the occupations
identified. The government through TESDA should induce redirection of TVET programs
especially those which register surpluses to areas where gaps are identified. In addition,
to fuel the growth of this sector, the TVET institutions should focus on convergence with
higher-end technologies in ICT and electronics.
2.5. Food and Beverages
Food processing is not a homogenous entity. It is composed of several

categories, as many as the varieties of products being consumed. The National
Statistics Office (NSO) classified food processing/ manufacturing to include:
 Cereal preparations;
 Meat processing;
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 Fish, marine products and seaweeds;
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Table 13.4
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 Dairy products and eggs;
 Processed fruits and vegetables;
 Non-alcoholic beverages;
 Cocoa, coffee and tea
 Other food commodities as sugar products, sauces and condiments and
cooking oil.
The food processing/ manufacturing sector comprises the largest segment of

the country’s manufacturing sector. In 2002, gross value added in food manufactures
reached about P402 billion, contributing 44% of the total GVA in manufacturing or
10% of GDP (NSCB). In addition, the GVA in beverage industries totaled P34 billion,
or about 4% of the manufacturing GVA or about 1% of GDP. During the same year,
the total personal consumption spending on food reached close to P1,249 billion
while those for beverages, P53 billion.
The shortage of skills is evident in highly industrialized food manufacturing

companies that have departmentalized and specialized jobs.
The food processing sector is projected to have a total manpower demand of

6,093 workers for the period 2006-2010. The bulk of the demand will be for
packers/repackers/handpackers and confectioners accounting for 3,649 workers and
1,265 of the total, respectively. Other demanded occupations are food processing
plant operators and meat curers (Table 13.5).
In terms of stock of certified workers that appears in the 2000-2005 manpower

registry, only the meat curer occupation has the record of certified workers totaling to
226. The sector is projected to have a manpower supply of 11,295 with the
estimated manpower demand gap of 5,867 workers, consisting mostly of packers/
repackers/hand packers and confectioners. These occupations will have an
aggregate surplus of 5,428 workers for the five-year period.
To support the requirements of sector to achieve its growth potentials, TESDA

should consider, in convergence with regulatory bodies such as the Bureau of Food
and Drugs (BFAD), Bureau of Agriculture and Fishery Product Standards, National
Meat Inspection Commission, the development of Training Regulations for the sector
giving emphasis on quality, hygiene, safety, packaging, entrepreneurship program
and other appropriate technologies.
2.6 Footwear
In MTPDP, the Footwear sector has 3,000 manufacturers generating an

estimated 60,000 employment. The priority occupations of the sector are: footwear
assembler, upper maker, sewing and closing workers, pattern maker, skiving
operator, bottoming worker, lasting worker and cutter.
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Table 13.5
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The October 2005 issue of LMIR revealed that most companies do not have
an in-house designer, thus, slowing down the process of product development in
most firms. In addition the industry needs training on:
 General management skills such as business planning, financing,

accounting and bookkeeping;
 Technical knowledge in materials and usage planning that could reduce
costs in the production of shoes from local leather
 Training skills in plastic shoe last grading
 Quality assurance procedures and cost-effective planning (for workers and
owner-manufacturers alike);
 Production and production methods
 Pre-production cutting process, and
 Standards and procedures in inventory and distribution management and
monitoring.
The projected manpower demand of the sector is 7,151 for 2006-2010. The
biggest demand is for upper makers and footwear assemblers. However, the most
critical occupations are the pattern makers and the skiving operators. The availability
of these types of workers should be ensured (Table 13.6).
The supply, on the other hand, is projected at 38,812 which consists mainly of
footwear assemblers. This projection leads to a surplus of 31,661 footwear
assemblers for 2006-2010. However, shortage exists in other specialized
occupations in the sector. It is noted that there are no available certified workers in
the sector.
The very strong competition posed by China threatens the survival of this
sector in the country. Faced with this tough competition, the sector should focus on
production. This will entail the following actions:
 Focus training programs on product design for mid-range to high-end

products and markets;
 Encourage local governments to provide/subsidize training programs of
footwear sector ;
 Strengthen research and development in the sector particularly in the
area of alternative/indigenous raw materials; and
 Prioritize the development of Training Regulations for critical occupations
and promote assessment and certification of workers.
2.7 Furniture and Fixtures
The Philippine furniture industry is still one of the biggest and reliable dollar
earners of the country. It generated export earnings amounting to US$ 316 million in
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2002 and US$ 278 million in 2003. The bulk of the sales came from products made
of wood, rattan and metal furniture.
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Table 13.6
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Although our furniture makers could not compete with mass-produced
furniture in the world market, industry leaders made a wise decision by moving from
medium to high-end market. Design became our competitive edge. When rattan and
local timber supply dwindled and importation of raw materials became too
prohibitive, the manufacturers used mixed materials to produce world-class furniture.
Also, the ban on wood compelled the sector to go to multi-media, shifting to other
inputs as bamboos and rattan, thus making weaving as a critical skill for the sector.
To date, there are 30 registered programs in the area of furniture and fixtures
industry offered in 27 technical vocational institutions producing approximately 5,000
graduates annually
Two (2) Training Regulations are now being developed and 11 more are
targeted to be developed for the period 2007-2008.
The total projected manpower for the sector is expected to reach 46,553
which includes overseas and local demand for 2006-2010. Of the 14 identified
occupations, the weavers registered the highest demand with 17,989 or 38.64%,
handicraft workers, 5,989, and furniture and cabinet makers, 5,272 (Table 13.7).
The additional total manpower supply, on the other hand, is registered at

32,271 for the same period. Weavers account for the highest share, contributing
11,969, followed by the handicraft workers with 5,989, and furniture and cabinet
makers, 3,731.
Manpower shortages will be expected in the sector which is placed at 13,176

for the same period. Of this, 6,020 or 42.15% are weavers, 2,070 or 14.49% are
bamboo and rattan crafters and the rest are from the remaining 10 occupations. At
present, the industry is already experiencing difficulty in finding specialized and
skilled workers.
To address the manpower requirements of the industry, the following

measures shall be pursued:
 Intensify training on product design and development, including research

and development on alternative raw materials;
 Revive the Furniture Training Center by entering into a co-management
with the Furniture and Handicrafts Entrepreneurship Training Center
(FHETC);
 Encourage government and non-government agencies such as DOST,
DTI, CITC, and other training institutions to provide training programs that
will address the manpower shortages; and
 Develop training regulations and promote competency assessment and
certification.
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Table 13.7
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2.8. Garments
The Philippine garments industry surpassed the growth of the entire

manufacturing sector between the years 1972 to 1980. As of 2003, the sector was
the biggest foreign exchange earner of the country, contributing and average of 7%
to the total earnings in 2001-2003. However, with the dismantling of quotas under
the General Agreement of Tariffs and Trade, new exporters threaten the survival of
the local garments industry. The situation is further aggravated by the negative total
factor productivity experienced by the sector. To become competitive,
recommendations given are policy reforms such as cutting down on bureaucratic
processes and the development of the textile industry as a support industry.
According to DTI report, there is a vast range of investment opportunities in

garment production-related services such as sampling making, fabric designing,
pattern making, washing, dying, printing, finishing and even fabricating machine
attachment. Garment industry requires upgrading of existing technologies and the
human skills associated with it to reap a positive technical efficiency contribution to
total factor productivity.
The Philippines is the first Asian country to implement social responsibility in

manufacturing to meet the demand for ‘clean clothes’. The export FOB value in 2003
reached US$ 2,265 million.
Competition has begun as early as the mid-90s. This is posed by China and
the emergence of new low cost suppliers and countries which enjoy preferential
treatment (quota-free and duty-free based on compliance with rules of origin) under
free trade arrangements. The Philippine garment and textile industries, however,
remain bullish despite the stiff competition.
For the garments industry, the total projected manpower demand for 2006-
2010 is 144,164. Garment sewers/ISMO remains to be dominant occupation needed
in the sector. This followed by dressmakers (39,700) and embroiderers/beaders
(17,259). The projected manpower supply, on the other hand, for the same period is
39,000. The sector will still experience shortages at the level of 98,546 in the next 5
years. These shortages will be registered by the following: garment sewers/industrial
sewing machine operators (52,219); dressmakers (33,836); embroiderers/beaders
(12,259); and product designers (1,887) (Table 13.8).
To remain competitive, the garments sector can benefit from the following:
Prioritize development of Training Regulations in product and fashion design;
Upgrade skills and adopt new technologies particularly on product designs;
and
 Conduct training programs in the commercial production of indigenous
fibers such as: banana, piña, abaca, ramie and silk.
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Table 13.8
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2.9. Health, Social and other Community Services
For the period 2006-2010, occupations identified critical in the Health, Social
and Other Community Services include Security Guards, Caregivers, Domestic
Helpers, Barbers and Hairdressers, Cosmetologists, Manicurists and Family Drivers.
An aggregate demand for this group of occupations reached a high level of
1,206,683. Ninety-seven per cent of this figure (1,173,000) represents overseas
employment demand. Ninety-one per cent of the overseas demand comes from the
demand for Domestic Helpers (1,100,332). A far second is the demand for
caregivers (51,010). Ninety-nine percent of the total demand for Domestic Helpers is
overseas demand (Table 13.9).
Data from TESDA’s Registry of Certified workers covering the period 2000-
2005 indicated a total of 416,314. Some 19,122 certified workers belong to this
group of health and social and community workers for a percentage contribution of
4.6 percent. Most of these certified workers come from the Caregivers, and
Domestic Helpers (91%).
The ratio of certified workers (19,122) to the total demand (33,683) is quite
high. This implies that a prospective employer will have a 57% chance of getting a
quality service worker in the market today. While the level of certification in this sub-
sector is quite high, there is a need for TESDA to look at the other occupations
where certification of quality service is imperative as in the cases of Family Drivers,
Barbers/hairdressers, and Security Guards.
The total supply of manpower for this sub-sectoral grouping is expected to

reach a total of 118,756. There is an anticipated surplus of 4,984 security guards,
surplus of 4,714 barbers/hairdressers, and a surplus of 2,130 manicurists.
There is a foreseen shortage of over a million domestic helpers in the next 5

years. The POEA has to provide signals on the forecast overseas demand for more
than a million DH so that the worker can optimize such opportunity of landing on a
safe and decent job overseas.
Strengthening of the existing orientation modules for caregivers and domestic

helpers should be pursued in order to provide more stable overseas employment
opportunities for these workers intending to work overseas. A stronger module on
language and culture will provide the prospective OFWs a more successful and
decent employment.
The government has to pursue its plans for a massive implementation of the
assessment and certification program for these service workers specifically for
domestic helpers, caregivers and security guards.
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Table 13.9
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2.10. Heat, Ventilation, Air-Conditioning And Refrigeration (HVAC/R)
Modernization and high technology require competent HVAC/R services to be

able to operate safely and efficiently. The construction of high rise buildings and
similar infrastructures, quality transportation and communication services, and state-
of-the-art facilities in the health, tourism, and related businesses have notably
shown need for more HVAC/R facilities. Workers in this sector are engaged in the
designing, control, repair and maintenance, and installation of HVAC/R
equipment/instruments to satisfy environmental regulations such as those provided
for under the Department of Environment and Natural Resources (DENR)
Administrative Order 2004-08 (Revised Chemical Control Order for Ozone-Depleting
Substances), among others.
For the period 2006-2010, the total demand for this sector is projected at
12,419. The demand is comprised mainly of commercial RAC mechanics (2,446)
followed by refrigeration Mechanics (1,740) and package-type AC technicians
(1,250) and RAC service mechanics (1,250). There is an existing stock of certified
workers of 6,117 in this sector. The available manpower supply is projected to be
46,589 for the 2006-2010 period. Overall, the HVAC/R sector will have a manpower
surplus of 40,287 for the next five years (Table 13.10). The projected data, however,
have not yet considered the implications of the full implementation of DENR AO
2004-08 and CFC phase-out. It is expected that there will be a surge in manpower
demand for HVAC/R technicians once these regulations are fully enforced.
There is a need to equip existing workers in the sector with the skills and
technologies required by the enforcement of the above-mentioned regulations. To
meet the anticipated manpower demand, the required training interventions and
assessment and certification of technicians should be undertaken.
2.11. ICT – Information Technology
The ICT industry is extremely varied and enables every other industry in a
major way to perform its core functions. Three broad categories make up the scope
of the ICT industry:
1. ICT Companies make up the vertical industry and consist of software

development houses, Telecom carriers, IT vendors, IT consultancies, ICT
service and repair, etc. These organizations have ICT as their core
business with other supporting activities such as sales, marketing and
training.
2. ICT Enabled Businesses are those which are reliant on ICT to achieve
their core business. This is the horizontal part of the industry with ICT
spread through all industry sectors. Industries heavily reliant on ICT
include financial services, communications, education, logistics, health,
retail, and government.
3. ICT Users who make use of ICT for a range of purposes including work,
personal interest, leisure activities, general transactions and on-going
learning.
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Table 13.10
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For the ICT-IT sector, the total projected demand for 2006-2010 is placed at
24,858. Majority of these workers is composed of computer service technicians
(14,466) and computer programmers (9,824). The manpower supply is projected to
reach 83,741 for 2006-2010, consisting mainly of cellphone technicians (50,000),
computer service technicians (16,000), and computer programmers (10,000).
Overall, the ICT-IT sector will incur a surplus of 83,741 for the five-year period
(Table 13.11).
Training programs in this sector should address and complement the

requirements of cyberservices and other IT-supported industries. The quality of
existing training programs should also be upgraded based on the standards of the
industry.
2.12. Land Transport
Data from the Land Transportation Office (LTO) showed that the number of
motor vehicles registered has been steadily rising through the years. From the
recorded figures of 4.3 million registered vehicles in the year 2003, it increased to
4.8 million registered vehicles in the year 2005. Generated revenues were also on
the rise as it reached to P7.5B in 2003 increasing to P8.9B by 2004 and stretched to
P9.6B in 2005. The GVA of the land transport and storage accounted to P 111,203 in
2003.
A total of 38,994 skilled workers is projected to be needed in the Land

Transport sector for the 2006-2010 period. Of the total projected demand, 35,061 will
be accounted by overseas employment while 3,933 will be for local employment. For
the next five years, the skilled manpower supply of land transport will total to 19,227.
There will be a shortage of skilled manpower registering 18,032. The occupations in
shortage will be heavy lift drivers (8,625); heavy bus drivers (4,460); heavy duty
drivers (4,445); trailer drivers (3,101); truck drivers (1,078); PSV bus drivers (1,344)
and bus trailer drivers (1,049). There will be surplus skilled workers in the sector
such as drivers and conductors (Table 13.12).
The following are the proposed TVET-related initiatives to support the Land
Transport:
 Implement of the TRs promulgated for the sector;

 Intensify assessment and certification; and
 Conduct specialized and upgrading training programs, in partnership with
the Land Transportation Office (LTO).
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2.13. Maritime
The country’s seafaring industry has succeeded in the gainful employment of

thousands of Filipino marine officers and ratings, serving aboard seagoing merchant
vessels. The Philippines today plays a very significant role in the international
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Table 13.11
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Table 13.12
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shipping as the principal supplier of seafarers. The country’s position as the
world prime supplier of seafarers is now being threatened by the growing share of
the deployment of seafarers from other countries such as India, China, Vietnam,
among others.
It is estimated that at any given time, the Philippines occupy about 25 percent
of the global market share for maritime workers in all ocean-going vessels. Around
200,000 sea-based Filipino workers are deployed annually. Data showed that around
16,410 vessels in 78 foreign flags are being manned by Filipino seafarers.
Remittances of seafarers reached US$1.7 B for the year 2005.
Projected demand for the maritime sector for the period 2006-2010 is
expected to reach 779,421. The deck department comprised the majority (380,855
or 49%) of seafarers going on board. Big demand is seen in occupations
categorized as ordinary seaman, general purpose, bosun, waiters and deck
stewards. The demand for workers in the engine department is expected to be at
214,749 or 27%, with oilers, engine ratings and wipers topping the list. For the
kitchen department, a total of 183,817 or 24% workers is needed with high demand
for cooks, general purpose and stewards (Table 13.13).
The 2000-2005 data on certified workers showed a total of 200,590 in three

categories: 1) Seafarers/roust about deck ratings (115,496 or 57.58%); 2) Seafarer
engine ratings (59,426 or 29.62%); and 3) Stewards/Catering (25,668 or 12.80%).
The total projected supply for 2006-2010 is 30,573, and will be comprised
mainly of 2,297 maritime workers in the deck department, 15,349 in the engine
department and 12,928 in the kitchen department.
Overall, the maritime sector will have a shortage of around 548,258 for the 5-
year period. For the deck department, all occupations will experience shortages of
263,062 seafarers except for deck rating which exhibits surplus of 113,099. The
engine department will have a shortage of 139,974, the bulk of which is for seafarer
engine rating. The kitchen department will have shortages as well in all occupations
totaling to 145,221, except for Steward/Catering where a surplus of 31,696 is noted.
The significant manpower shortages in the sector shall be addressed through

the following measures:
 Encourage all maritime training providers to continuously enhance and

upgrade their training facilities to ensure that they meet the requirements
international standards;
 Improve the assessment and certification of seafarer ratings for deck,
engine and steward; and
 Fast track the development of additional training regulations (TRs) and
increase the TRs to be developed to cover all occupations in the sector.
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Table 13.13
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13.14. Metals and Engineering
The Board of Investments (BOI) has categorized the metal industry into (a)
metal automotive parts, (b) metal machinery parts, and (c) other metal
manufacturers. Workers in this sector are those involved in the transformation of
metals into various products that could be used as parts of other industries and
finished products. The demand for this type of workers may be influenced by other
sectors which also utilize metals as their major raw materials or tools.
For the period 2006-2010, it is projected that a total of 61,888 additional

workers, including local and overseas, will be needed by the industry. Of these, the
highest demand will be for gas metal and arc welders (GMAW) at 31,100; millwright
workers, 1,698; shielded metal and arc welders (SMAW), 14,214; general
machinists, 6,260 and lathe machine operators at 2,209. The total available
manpower stock in these occupations consisting of certified workers is 9,574. (Table
13.14).
As projected, a total of 90,219 skilled workers will be available in the next five
years through the various training providers, including the enterprises. These will be
composed mostly of GMAW, 33,801; SMAW, 20,000 and general machinist, 10,682.
There will also be adequate supply of lathe machine operators, 7,642; millwright
workers, 3,000; and press machine operator, 1,500 in 2006-2010.
The total overseas manpower demand in the next 5 years will reach 4,870.
This is composed of 1,698 millwright workers and 3,172 general machinists.
Overall, it is expected that there will be a surplus of 37,905 skilled workers in

the sector for the next five years. There will be a surplus of 13,088 SMAW, followed
by 7,327 lathe machine operators and 4,609 general machinists.
The growing need for specialized welders to support other sectors such as
construction, shipbuilding, automotive and other related sectors is recognized. While
a surplus is noted for these occupations, the need to upgrade the level of
competencies of the existing workers to meet industry standards should be
addressed. In line with this, TESDA has embarked on providing subsidized training
interventions for a total of 12,210 GMAW through the PGMA-TWSP starting 2006. It
is expected that the demand for this type of workers will continue to increase.
Continuous support for the sector should be done through the following:
 Training programs for specialized welding in identified training institutions

should be strengthened and sustained; and
 Assessment and certification should be intensified including the
development and accreditation of competency assessors from the
industry.
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Table 13.14
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2.15. Tourism
Tourism industry (according to SMART Research Services Inc.) has sub-

sectors involved in tourism based on the definition of the World Tourism
Organization (WTO). They are Accommodation, Restaurant and Bar, Adventure and
Leisure, Tourism Transport, Tourism Spots, Tourism Services, Souvenirs, and
Special Events.
Outside of the Hotel and Restaurant sub-sector, three occupations were

identified as mission critical - tour guides, chambermaids/ housekeepers, and
homestay pension lodging workers.
Tour guides exhibited a 58,965 projected manpower demand for 2006-2010.

While the projected supply of tour guides (70,000) for the next five years is sufficient,
the absence of certified tour guides suggests quality tour guiding as an area of
development (Table 13.15).
Chambermaids/housekeepers posted an additional demand of 81,164.

However, its projected manpower supply for 2006-2010 of 100,000 is more than
enough to address this huge requirement. Homestay/Pension/Lodging House
Service Workers has a projected demand of 5,706 and a projected manpower supply
of 6,000 resulting in a surplus of 294.
TESDA data show that of the almost 2000 TVET schools and training centers,
there are 471 TVET providers offering Tourism-related training programs. For
enterprise-based programs, the tourism sector registered only about 40 companies
offering apprenticeship and learnership training programs and Dual Training
Programs.
The tourism sector is among the top 9 Sectors which makes use of enterprise-
based training as one of its training modalities. Considering the sector’s surplus
which is rather low, TESDA should still promote the dual training mode especially
apprenticeship and learnership.
Moreover, TESDA should intensify its assessment and certification system in

this service-oriented occupation. The widest implementation of the Training
regulation for Tour Guiding Services NCII promulgated in 2005 should usher in
quality training provision by both public and private TVET providers nationwide. The
Department of Tourism can likewise increase its capacity to train provide tourism
related skills.
The Local Government Units (LGUs) are expected to come up with different
strategies in enticing more tourists in their area. The Tourism Industry Working
Group (IWG), with the host of its Local Industry Bodies (LIBs) should look into the
area of quality training provision and the expansion of enterprise training programs.
Competency assessment is an area that the IWG for tourism should work very hard
for widest implementation at the local levels.
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Table 13.15
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IV. RECOMMENDATIONS
Critical to the attainment of the objectives of the National Manpower Summit,

2006, are purposive interventions that will ensure the availability of workers with
competencies that meet the skills requirements of industry. In the light of the
projected distortions in manpower demand and supply as previously described, the
following are the recommendations:
A. FINANCIAL INTERVENTIONS
The government has to provide the funding to implement certain measures

that have serious impact on the economy and those cannot be left solely to the
private sector. These include the training of workers in highly critical skills and the
provision of incentives to implement important education and training reforms.
TESDA, as the government agency that is primarily responsible for the development
of skilled manpower in the country recommends the following measures that will
require government financial support.
In summary, these will cover the following:
PGMA-Training for Work Scholarship Program

P2.5 B = 500,000 Scholars = 500,000 Jobs, New Jobs
Scholarship for Ladderization

P 150 M = 20,000 Scholars = 20,000 Jobs, New Jobs
PESFA Scholarships
P 1.45 B = 100,000 Scholars = 100,000 Jobs, New Jobs
YP4SC
P 500 M = 6.5 M High School Students Assessed for Career Guidance
Specific to the above are the following recommendations:
1. PGMA Training for Work Scholarship Project

The PGMA-TWSP Project must be continued up to 2010 at P500 million per
annum to produce 500,000 scholars for 500,000 jobs, new jobs to fill the gaps created
by highly critical skills. In particular, this involves the continuing provision of scholarship
grants in short-term courses particularly in the business process outsourcing (BPO)
industry: call center, medical and legal transcription, animation, software development;
and other industries with critical skills requirements.
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2. Ladderization
Priming the Ladderization program will require a P150 Million investment to

fund scholarship for 20,000 scholars for the CHED-TESDA Ladderized Programs.
This shall serve as a mechanism to encourage students to take up ladderized
programs while at the same time expanding their access to college education. This
scholarship shall allow the scholars to find easy entry and exit points leading to job
platforms.
3. Massive National TVET Trainors / Assessors Qualification Program
With the emerging and highly critical skills needed in the medium-term,
equipping TVET trainors both in terms of technology and teaching/instructional
methodology must be given priority. Scholarship shall be provided to upgrade the
competencies of TVET trainors in public and private TVET institutions and to expand
the pool of qualified trainors. As a support to PGMA-TWSP, this program shall be
partly funded by the project.
4. Expanding Capacity of Private TVET Institutions through Scholarships
While the number of private TVET Institutions may not dramatically increase
in the short-term, their capacity may be expanded through the provision of
scholarships.
The PESFA Program shall be increased to cover 20,000 scholars per annum
from the present level of 13,800. This Scholarship program shall be directed in
areas where there are massive supply shortages. It shall also be used to induce the
private TVET institutions to open up new programs relevant to the requirements of
the supply shortages.
Funding for the PESFA Program shall require P290 M per annum or a total of
P1.45B for 5 years.
5. Youth Profiling for Starring Careers (YP4SC)
To further enhance the skills-job match among students, career guidance

services need to be continuously provided. The institutionalization of the YP4SC
shall have to be pushed to cover the entire 1.3 million third year high school students
starting 2006.
An allocation of P100M per annum or P500M for the 5 year period shall be
required for the institutionalization of the Youth Profiling for Starring Careers
(YP4SC).
The groundwork has been established and the partnership among concerned
agencies and institutions has been firmed up with YP4SC’s 2005 implementation. The
encouraging feedback TESDA has been receiving from the schools and the students on
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the results of the assessment highlights the necessity of investing in career guidance
through YP4SC.
B. NON-FINANCIAL INTERVENTIONS
1. Ladderization System
In the area of ladderization, there are a number of handles that need to be

drawn to fully realize the goal of increasing access to education and training.
Among these are the provision of more avenues for trainees to acquire skills in the
workplace and mechanism to ensure that TVET qualification is recognized in a
professional qualification.
In addition, the proposed issuance of an Executive Order that would require

on-the-job training (OJT) without compensation for students of ladderized programs
and provision of tax incentives for enterprises accepting and absorbing the OJT, and
for PRC to recognize TVET qualification in a professional qualification is being
recommended for consideration.
2. Apprenticeship Program
The capacity of enterprise-based programs to provide opportunities for

training in the workplace and facilitating transition from training to employment
should be expanded. To achieve this, certain policy gaps in the provisions of the
Philippine Labor Code (PD 442) should be looked into. More flexible arrangements
must be pushed, particularly in the determination and declaration of apprenticeable
occupations. The duration of the programs must take into consideration the
complexity of the skills and the length of time needed to acquire such skills. More
and better attractive incentive packages must be provided to encourage employers,
especially those engaged in emerging skills, to provide training programs which the
schools and training centers could not quickly respond to.
There is a need to harmonize and integrate the various enterprise-based

training schemes for more efficient and effective implementation of the program.
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LIST OF TABLES
Table Title
1 Second Cycle NTESDP Priority Sectors: 2005-2009
2 Employment Opportunities by Sector, 2006-2010
3 Employment Opportunities by Sector and Occupation, 2006-2010
4 TVET Providers with Registered Programs by Sector
5 Number of Participating Companies in Kasanayan at Hanapbuhay Program
6 Top 10 Sectors in Enterprise-Based Training Program
(Apprenticeship/Learnership Programs)
7 Training Regulations by Sector
8 Registered Programs by Sector
9 Assessment and Certification by Priority Sector 2000-2005
10 Projected Overseas Employment 2006-2010
11 Summary of Aggregate Manpower Supply and Demand 2006 – 2010 (National

Manpower Summit and other Priority Sectors Inclusive of Overseas Employment)
12 Summary of Aggregate Manpower Supply and Demand, 2006-2010 (Highly Critical

Skills Based on NMS, March 2006 Inclusive of Overseas Employment)
Projected Manpower Supply and Demand 2006 – 2010
12.1 Agribusiness
12.2 Aviation
12.3 Cyberservices
12.4 Health
12.5 Hotels and Restaurants
12.6 Medical Tourism – Wellness
12.7 Mining
13 Summary of Aggregate Manpower Supply and Demand, 2006-2010 (Critical Mass

and Emerging Skills Based on PSP Data Exclusive of NMS and Inclusive of
Overseas Employment.)
Projected Manpower Supply and Demand 2006 – 2010
13.1 Automotive
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13.2 Construction
13.3 Decorative Arts
13.4 Electronics
13.5 Food and Beverages
13.6 Footwear
13.7 Furniture and Fixtures
13.8 Garments
13.9 Health, Social and Other Community Services
13.10 Heat, Ventilation, Air conditioning and Refrigeration
13.11 Information and Communications Technology – Information Technology
13.12 Land Transport
13.13 Maritime
13.14 Metals and Engineering
13.15 Tourism
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TVET Outlook

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THE PHILIPPINE TVET OUTLOOK

II. THE TVET PROFILE

III. MANPOWER DEMAND AND SUPPLY

Table 1. Medium-Term Macro Economic Targets (Growth Rate, in percent)

Table 2. Medium Term Philippine Development Plan Priority Sectors: 2004-

Table 4. Training Regulations by Priority Sector

Table 5. Registered Programs by Priority Sector

Table 6. Assessment and Certification by Priority Sector, 2005

Table 7. Critical Skills Demand by Region and Priority Sector: 2005-2007

Table 8. Summary of Demand and Supply by Priority Sectors: 2005-2010

1.1 Employment Challenges

Winning the war against poverty remains to be the most daunting

The MTPDP, 2004-2010 indicates that with the domestic economy

Based on agency programs and estimates, tourism is expected to create 3

As of October 2005, employment increased to 32.9 million from 31.7

Despite marked improvement in employment and the prospects of

This situation is an indication of structural unemployment problem. This is

1.2 Development Context

The direction of the TVET sector today is anchored on the following:

The Medium Term Philippine Development Plan (MTPDP) 2004-2010

The Medium-Term Philippine Development Plan (MTPDP) 2004-2010 sets

The MTPDP envisions the following 10 point-legacy of the Arroyo

The National Technical Education and Skills Development Plan (NTESDP)

With MTPDP as the backdrop , the Second Cycle NTESDP 2005-2009

The Second Cycle NTESDP 2005-2009 envisions to develop a globally

Decent and Productive Employment. This means that productive

Quality TVET Provision. Standards on systems, processes and

Supply Matches Demand. It is recognized that economic growth triggers

The Plan focuses on three key result areas :

Improved Access and Equity in TVET. Opportunities shall be made

Improved Assessment and Certification. There shall be an increased

Enhanced Employability of TVET Graduates. This is the environment

Provincial Skills Priorities (PSP) 2005-2007

II. THE TVET PROFILE

2.1 TVET Capacity

The NTESDP 2005-2009 targets to increase the number of TVET providers to

TVET Providers (4,510

With Non-degree Progra

The ultimate outcome of skills training is employment, whether in paid

2.2 TVET Quality Mechanisms

TVET Registered Programs

The system of registration of TVET programs under the Unified TVET

Assessment and Certification

Priority Sector No. of Assessed No. of Certified

In May 2006, TESDA embarked on a rapid deployment of assessment and

Through a series of consultation processes using the PSALM approach,

In these 23 priority sectors, the skills demand and supply landscape in

Critical mass represents the skills to be maintained/continually developed

The development of all these skills will require a corresponding increase

In summary, for the critical mass and emerging skills, there is an

Summary of Demand and Supply by Occupation and Priority Sectors: 2005-2010

AGRICULTURE 4,349,764 950,676 165 4,349,599 (3,398,923)

FURNITURE and FIXTURES 45,594 30,062 1,074 44,520 (14,458)

Other Sectors 199,332 2,856,164 147,611 51,721 2,804,443

4.1 Scholarship Programs

As a direct response to the challenge of increasing access to TVET, TESDA

• Continuing PGMA-Training for Work Scholarship Program (PGMA-

• Expansion of the PESFA Program to be directed in areas where

• A P500 Million Scholarship Program for the CHED-TESDA

4.2 Massive Trainors Development Program

4.3 Increase the number of private Technical Vocational Institutions (TVIs)

The number of private TVIs is expected to increase from 2,082 to 3,353 in

4.4 Ladderization System