THE poorest workers are being left behind in the jobs market, even though Technical Education and Skills Development Authority (TESDA) graduates were found to have improved their employability overall, according to a study by the Philippine Institute for Development Studies (PIDS).
The report, released on Thursday, found that the share of poor and “disadvantaged” TESDA beneficiaries has declined in recent years.
Between 2018 and 2022, participation in TESDA training from wealthier demographics increased, while the number of poor beneficiaries fell, according to the “Assessing the Effectiveness of TESDA Scholarship Programs in Targeting the Poor” study, prepared by De La Salle University Assistant Professor Maribel Daño-Luna.
“The 2022 regional distribution of scholarship budgets does not necessarily align with regions with high poverty incidence, where most disadvantaged scholars are located,” the study found. “This limits the program’s reach among those who need it most.”
TESDA’s technical and vocational education and training programs have long been touted as a pathway to employment and entrepreneurship, particularly among out-of-school youth, informal workers and the unemployed.
But the findings indicate that the program’s poverty-targeting mechanisms may not be reaching many potential beneficiaries, undermining efforts to promote inclusive growth, PIDS found.
The study warned of the “gradual exclusion of the poor” from the scholarships, noting that the allocation of funds has not consistently matched areas with the highest poverty levels.
Labor groups have long noted uneven access to training as a factor in persistent inequality in the labor market.
PIDS recommended that TESDA use poverty databases maintained by the Department of Social Welfare and Development (Listahanan) and the Philippine Identification System to verify applicants’ eligibility and willingness to see the training through.
“Motivation has a significant positive partial effect on various outcomes across scholarship types,” the study said, suggesting that applicants undergo interviews or scorecard assessments to measure their drive to finish training.
The report also urged policymakers to align budget allocations with poverty data by directing more funds to provinces with higher poverty rates.
“Budget allocation could use a scorecard that gives higher weights to regions with elevated poverty rates,” it proposed.
Nevertheless, TESDA’s training programs were found to be delivering results in the labor market.
The study found that scholarships improved graduates’ chances of finding jobs — typically a year after completing their training, not immediately.
The Private Education Student Financial Assistance (PESFA) program resulted in the strongest short-term employment outcomes, while both PESFA and the Universal Access to Quality Tertiary Education Act (UAQTEA) scholarships led to higher employment after a year.
However, the study found that many graduates end up working in jobs unrelated to their training, highlighting a persistent skills mismatch in the labor market. Only UAQTEA graduates reported strong alignment between their training and current work.
“There is a significant negative association that the programs are not that useful in terms of the certification being required with the graduates’ jobs,” the study found.
PIDS called for closer coordination between TESDA, industries, and local governments to ensure that course offerings match labor market needs — a concern also shared by labor economists amid shifting demand towards digital and green skills.
The study concluded that continuous policy assessment is essential to prevent well-intentioned programs from reinforcing existing inequalities in the labor market. — Chloe Mari A. Hufana