The Asian Development Bank (ADB) has approved a USD500 million policy-based loan to support the Philippine government in enhancing labor market programs aimed at improving the productivity and employability of Filipino workers. The loan will also assist in transforming the country’s investment environment to better support job creation and inclusive economic growth.
The Business and Employment Recovery Program-Subprogram 2 targets several key reforms and initiatives to equip the workforce with relevant skills, including technical and vocational education and training (TVET) programs. Special attention will be given to increasing the participation of women and vulnerable youth in the workforce, while improving access to livelihood and employment opportunities through government job facilitation programs.
“While job recovery in the Philippines has been promising post-COVID-19, the quality of jobs remains a critical issue, with many workers facing underemployment, informality, and limited access to decent work opportunities,” said Pavit Ramachandran, ADB Country Director for the Philippines. He said that the program would help prepare workers for high-skilled jobs in industries such as artificial intelligence, software development, and business process management.
The government’s targets under this program include creating an average of 600,000 to 700,000 formal private sector jobs annually, and boosting skills training for 5,000 displaced workers. Additionally, the program aims to increase job placements by 120,000 annually through public employment service offices (PESOs) and expand the JobStart Philippines program for youth not in education, employment, or training.
This initiative builds on previous ADB-financed efforts and will further modernize the Philippine labor market, making it more competitive and sustainable in the global economy.
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