P14.3B loan targets industry skills gap
A growing economy needs more than jobs to offer—it needs workers equipped to fill them, prompting the Philippines to seek P14.3 billion in World Bank financing to narrow the skills gap and build a workforce capable of meeting the demands of key industries.
The Department of Finance said Wednesday it has endorsed for approval the proposed $250-million loan from the World Bank’s International Bank for Reconstruction and Development (IBRD) to strengthen technical and vocational training in manufacturing, construction, information and communications technology, and agri-fisheries.
The financing, targeted for approval by the World Bank Board within the year, seeks to improve the employability of Filipino workers.
Finance Secretary Frederick Go said the funding would help expand access to quality training and create more career opportunities for Filipinos.
“The financing comes at an opportune time. This will provide a significant boost that will strengthen our efforts to provide equitable access to quality education and training. We thank the World Bank-IBRD for their continued partnership with the country as we pursue reforms to secure more career opportunities for our people,” Go said.
The loan will support the Boosting Employability in Strategic Technical and Vocational Education Training Sectors project, which seeks to improve the relevance of technical education to labor market requirements.
Under the program, the government aims to widen access to technical and vocational education and training, raise certification rates and equip more workers with industry-relevant qualifications.
The initiative targets four sectors considered strategic to economic development, where a stronger pool of qualified workers could help businesses improve operations, raise productivity, and support expansion.
The Technical Education and Skills Development Authority will lead the project’s implementation.
The program also aligns with the Philippine Development Plan 2023–2028, the National Technical Education and Skills Development Plan 2023–2028, and the Trabaho Para sa Bayan Plan 2025–2034.