PRESENT LABOR MARKET CONDITIONS

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OUTLINE OF PRESENTATION. Present labor market situationEmerging labor market challengesThe youth employment and development framework. PRESENT LABOR MARKET CONDITIONS. In the July 2007 Labor Force Survey, total employment grew by 2.3 % or 735,000 additional employed personsThis growth was observ

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PRESENT LABOR MARKET CONDITIONS

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1. PRESENT LABOR MARKET CONDITIONS THE NEED FOR A MORE RESPONSIVE YOUTH DEVELOPMENT AND EMPLOYMENT FRAMEWORK

2. OUTLINE OF PRESENTATION Present labor market situation Emerging labor market challenges The youth employment and development framework

3. PRESENT LABOR MARKET CONDITIONS In the July 2007 Labor Force Survey, total employment grew by 2.3 % or 735,000 additional employed persons This growth was observed mainly in the services sector which grew by 5.6% (873,000) Industry sector remained sluggish growing only by 0.2 percent (+10,000) additional new jobs

4. PRESENT LABOR MARKET CONDITIONS Employment in the combined agri, fishery and forestry sector was down by 1.2 % (-149,000), after posting growth in the last two years Number of persons in full time employment went up by 3.6 % (719,000)

5. PRESENT LABOR MARKET CONDITIONS The number of unemployed persons in July 2007 was reported at 2.8 million, resulting to an unemployment rate of 7.8 percent. Two regions recorded a double-digit unemployment rate, namely, National Capital Region (NCR) at 13.1 percent and Central Luzon at 11.5 percent.

6. PRESENT LABOR MARKET CONDITIONS For every ten (10) unemployed, six (6) are males and four (4) are females The age group 15-24 years old account for 51.1 percent of the unemployed, its unemployment rate is 18 %, more than twice the national rate Unemployed persons who had attained high school level comprised 45.5 percent of the total unemployed; while those who had reached college level account for 39.4 percent

7. PRESENT LABOR MARKET CONDITIONS Unemployed are better educated than the employed workforce Incidence of unemployment tended to increase with the years of education Mean weeks looking for work has been getting longer

8. PRESENT LABOR MARKET SITUATION Mean monthly waiting time of graduates after actively looking for a job varies by school: UP graduate – 1.82 months DLSU graduates – 2.42 months Ateneo graduates –2.91 months Other Us/Cs graduates – at least 5.33 months

9. PRESENT LABOR MARKET SITUATION Results of content analysis on job adds: Bulk of job orders are mostly for accountancy-related fields, medical-related fields (mostly care-givers, doctors and nurses), engineering and IT-related positions. Big number ofng to an unemployment rate of 7.8 percent. Two regions recorded a double-digit unemployment rate, namely, National Capital Region (NCR) at 13.1 percent andtised require some level of skills proficiency Almost all jobs advertised require at least 6 months working experience

11. PRESENT LABOR MARKET SITUATION Globalization has collapsed several rigid-structures of employment; brought about patterns like shorter life cycles of jobs and faster onset of product and skills obsolescence while breeding greater premium for highly skilled, specialized and knowledge-based workers

12. PRESENT LABOR MARKET SITUATION Technological changes have made it possible to reshape production through new forms of industrial organization, including subcontracting and the spatial reorganization of production systems

13. PRESENT LABOR MARKET SITUATION This has also led to the emergence of new forms of work arrangements: Telework (both mobile and home-based) Virtual offices or telecenters Out-sourcing E-recruiting Multiple jobs/employers

14. PRESENT LABOR MARKET SITUATION Skill composition of the workforce is changing along with large-scale entry of women into the labor market and the emergence of a worker-competence divide Trend towards enterprise downsizing and a shift in industrial employment away from large enterprises, which is due in part to technological changes

15. PRESENT LABOR MARKET SITUATION Practices such as subcontracting, outsourcing and the hiring of flexible (temporary, casuals, contractuals and part-time) workers, long considered as atypical employment, are becoming more typical, especially at the lower end of the labor market

16. PRESENT LABOR MARKET SITUATION Other emerging forms of flexible works include teleworking, virtual offices, call centers, which are all made possible thru the information highway

17. WHERE REFORMS MAY BE MADE Issuance of individual employment contract is seen as adequate safety net Employment security vs. security of tenure Types of employment arrangements Hours of work Holidays Leaves Need for social protection

18. WHERE REFORMS MAY BE MADE Refocus labor relations to emphasize cooperation-based labor-management relations Shift nature of relationship from adversarial and legalistic to one founded on strategic partnership anchored on Filipino values of bayanihan, pakikipagtulungan, pakikipagkapwa, damayan

19. WHERE REFORMS MAY BE MADE Refocus labor education programs to veer away from traditional union and workplace issues. Emphasize need to educate both workers and employers on shared responsibility

20. CURRENT PROGRAMS ASSESSMENT AND RECOMENDATIONS

24. Other ASSESSMENT insights… Ensure that programs reach the proper targets – i.e., clearer targeting in terms of youth segments Establish program mechanisms autonomous from political influences Conduct evidence-based and evidence-informed assessment 

25. TOWARDS A STRATEGIC YOUTH EMPLOYMENT PROGRAM AGENDA FOR CY 2007-2010

26. Demand for work is the area of the private sector; mostly the economic-related agencies are really in-charge of the demand-related programs but not separate from supply; must be able to coordinate Youth Entrepreneurship and business enhancement program – key program – DOLE, DTI and LGUs; other agencies can be involved – like TESDA

27. Put more innovation on the WAP Revitalize and strengthen WYC Integration of education and employment planning; a solution to mismatch Implementation of common competency framework and standards across industries

28. Capability bldg for LGUs - database, gather statistics at all levels; actual training of LGUs on youth employment planning – DILG/DOLE Localization and broadening of access of youth to LMI, career and employment guidance, referrals, all components under improving labor market Integrated Youth Employment & Development Program – under one holistic program – various programs, retooling, etc, runs the whole gamut from formation of youth to employment

31. THANK YOU!

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