The National Demand-Driven Workforce Readiness Program in the Philippines (#InDemandPH)

Currently, a locally-employed skilled worker earns, on average, a monthly minimum wage of 140 USD. This is used to support an average household of five members with over 60% of funds just going towards food expenses. Many graduates of the Philippine Technical-Vocational Education and Training (TVET) system fall in this situation. This is primarily caused by a supply-driven TVET education system that does not reflect the actual needs of the industries. In turn, many TVET graduates are still unemployed, or are employed in jobs below their skill levels.

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Given the fourth industrial revolution, the Philippine industry is shifting and now requires workers with greater competencies. Workers without the desired competencies will continue to earn minimum wage and have little opportunity to progress their jobs.

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Since 2018, Bayan Academy has been working with the Technical Education and Skills Development Authority (TESDA) in revamping the TVET system in the country. The external assessment, organizational diagnosis, and organizational development that we did for TESDA has resulted in the issuance of TESDA Circular No. 42 series of 2021 or the Implementing Guidelines on Area-Based and Demand-Driven (ABDD) TVET. This policy allows TESDA to be responsive to the critical needs defined by the industries and employers to produce correctly skilled workers that the industry can hire. This policy also requires TESDA to prioritize the establishment of lasting relationships and to provide for a simpler and more flexible approach on training development and delivery.

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To further ensure the delivery of quality and relevant TVET in the country, Bayan Academy is assisting TESDA with the implementation and institutionalization of the ABDD TVET Policy by developing TESDA’s ABDD TVET Operations Manual and Knowledge Management System, delivering an organizational development program for TESDA’s regional and provincial directors, and by establishing the industry boards for priority industries in key regions in the country.