The National Technical Education and Skills Development Plan NTESDP 2018-2022 © 2018 by Technical Education and Skills Development Authority All rights reserved. Any part of this publication may be used and reproduced, provided proper acknowledgement is made. National Technical Education and Skills Development Plan 2018-2022 Published by: Technical Education and Skills Development Authority TESDA Complex, East Service Road, South Superhighway, Taguig City Tel. No. +63 (02) 888-5641 to 46 E-mail: [email protected] About the cover: The cover design is a graphic representation of the intents and purpose of the NTESDP 2018- 2022. The GRID characterizes the planning processes involved in the crafting of the Plan. The central elements are the SUN and STARS, which symbolize the nationwide coverage of the Plan. The INNER CIRCLE and the GEAR represents the TVET Sector that plays a pivotal role in the country’s human capital development. A workforce attuned to the emergent digitalization of workplaces under the 4IR is symbolized by the HUMAN BODIES,. The digitalization is represented by INTERCONNECTED DOTS above them. The seven (7) icons surrounding the SUN embody the priority sectors covered by the Plan, namely: Construction; ICT and IT-BPM; Tourism; Transportation, Communication, and Storage; Agri-Fishery and Forestry; Manufacturing including Electronics; and Health and Wellness. TABLE OF CONTENTS EXECUTIVE SUMMARY ACKNOWLEDGMENT I. INTRODUCTION 1 II. PLANNING ENVIRONMENT 5 External Assessment 6 Global Trends 6 National Trends 12 Poverty Incidence / Poverty Threshold 14 Philippine Labor Situation 15 Underemployment and unemployment 20 Youth Employment 21 Overseas Filipinos Workers 22 Internal assessment 23 Policy environment 24 TVET Performance 26 Regulation, monitoring, and quality assurance 36 Other Programs 41 Implementation Gaps 46 TVET Client Segmentation 46 Synthesis of the External and Internal Analysis 48 Opportunities and Prospects 48 Threats and Challenges 50 Strengths and Advantages of TVET Sector 50 Weaknesses and Disadvantages 54 Generation of Strategic Options from Strengths and Weaknesses, Opportunities 55 and Threats III. EMPLOYMENT TRENDS, FORECASTS, AND SKILLS PRIORITIES 59 Industry Trends in the Philippines, 2005 to 2015 60 Major Employers 60 Major Occupation Groups 61 Employability Rates of Job Candidates (College Graduates Applying for Specific 61 Jobs) Highest Paid Jobs in Philippines 63 Impact of the Fourth Industrial Revolution (4IR) and Globalization to Industries 63 and Jobs Priority Industries and Employment Generators 64 Tourism 65 Construction 67 ICT and IT-BPM 69 Transport, Communication, and Storage 72 Agriculture, Fishery, and Forestry 73 Manufacturing 75 Health and Wellness 76 Other Subsectors 77 IV. STRATEGIC DIRECTION 79 Three Major Challenges in TVET and Strategic Responses 81 Two Corollary Challenges and Organizational Response 82 Continuing Efforts 83 Development Framework 84 Objectives, Strategies and Program Directions 85 V. MONITORING AND EVALUATION 95 Plan Implementation 96 Communications Plan 96 Action Programming 97 Legislative Agenda 98 Monitoring and Evaluation Framework 99 VI. ANNEXES Acronyms Glossary of Terms References Annexes Annex 1 : NTESDP 2018-2022 Annual Target Indicators Annex 2 : Philippine Employment by Major Industry, 2005 to 2015 Annex 3 : Philippine Employment by Major Occupation Groups, 2005 to 2015 Annex 4 : Forecast of Employment by Major Industry Group, 2016 and 2022 Annex 5 : Top Ten (10) Qualifications based on Enrollees of Training for Work Scholarship Program (TWSP), 2014-2016 Annex 5: Funding Requirements (Indicative) Message of the President My warmest greetings to the Technical Education and Skills Development Authority (TESDA) on the publication of the National Technical Education and Skills Development Plan (NTESDP) 2018-2022. The Philippines is proud of its relatively young workforce, a gem in human capital that should bolster our economic progress in the years to come. This realization has driven us to address the perennial problem of jobs-skills mismatch by investing in human capital development to advance the government’s socio-economic agenda. The NTESDP 2018-2022 is indeed a timely document and reference that will respond to the current needs of our Filipino workers. Anchored on the “AmBisyon Natin 2040” and the Philippine Development Plan 2017-2022, it complement s and ampliies our efforts to improve our people’s competencies as an effective strategy to unleash and maximize their potential as the catalyst for development. I enjoin TESDA and the entire technical-vocational education and training community to work together in achieving an economically strong, more prosperous and sustainably progressive Philippines that the Filipino people truly deserve. Again, congratulations and I wish you more power. Rodrigo Roa Duterte President Republic of the Philippines Message of the Cabinet Secretary It is my distinct honor and privilege to preside, as the Cabinet Secretary, over the presentation and approval of the NTESDP 2018–2022: the medium-term plan for Technical and Vocational Education and Training (TVET). The NTESDP 2018-2022 is the blueprint of policy directions for all TVET actors and stakeholders in advancing human capital development towards a “Vibrant Quality TVET for Decent Work and Sustainable Inclusive Growth.” As with any plan, the NTESDP 2018-2022 would not serve its useful purpose if not fully implemented. The Plan’s successful implementation hinges upon the concerted efforts of the National Government Agencies and all TVET stakeholders, including the industry, academe, and training providers. Essential in the realization of the Plan’s objectives is the continued cooperation and development of convergence programs among TVET stakeholders. Indeed, there are still challenges confronting the development of the TVET sector. Fortunately, the NTESDP 2018-2022 provides the sector with strategies that could guide workers, learners, academic institutions, industries, and government units in harmonizing efforts for skills development, training, and lifelong learning. The commitment of all the stakeholders in providing quality TVET is fundamental in ensuring that the Filipino workforce is readily equipped with the necessary high- demand skills and competencies for the global market. Congratulations to TESDA and its partners in the formulation of the NTESDP 2018- 2022! To the technical and vocational education and training community, let us continue to work together to ensure that the Plan is appreciated for what it seeks to accomplish: to bring greater beneits and opportunities for the Filipino people through TVET. Mabuhay! Leoncio B. Evasco, Jr. Cabinet Secretary Message of the DOLE Secretary We share with the Technical Education and Skills Development Authority (TESDA) the fulillment of having a brand new National Technical Education and Skills Development Plan (NTESDP). This plan for 2018-2022 is a boost to our nation’s workforce as it ires premium to the dignity of Filipino labor. The NTESDP 2018-2022 will contribute immensely to the attainment of the Department of Labor and Employment’s mission for Filipino workers to gain productive and decent employment. This Plan seeks to provide the country’s labor force with tools, guides, and resources that will enhance capacity to produce. I note with pride that the Plan does not view labor as a producer of capital, men and women who need to improve their skills set. The NTESDP 2018-2022 humanizes the idea of labor and capital by recognizing those especially who were in the periphery. I commend the Plan and its two-pronged strategic thrust which deliberately and purposely address the basic sectors. In its complete form, I am excited at how the plan will bring together the academe, government, industries and other TVET stakeholders in harmony to draw up the productive potentials of the Filipino workers. I join the rest of the oficialdom of TESDA in standing fully behind the NTESDP 2018-2022 and its strategies and courses of actions. I encourage other government-member agencies, organizations, and individuals, as well as the private sector industries and organizations, to support TESDA as it orchestrates the implementation of this comprehensive Plan. Congratulations! Silvestre H. Bello III Chairperson, TESDA Board Secretary Department of Labor and Employment Message of the TESDA Director General I am pleased to present to our clients and partners in the Technical-Vocational Education and Training (TVET) sector and to the Filipino workers, the National Technical Education and Skills Development Plan (NTESDP), 2018-2022. The NTESDP is the medium-term plan for the entire TVET sector, developed by the Technical Education and Skills Development Authority (TESDA) pursuant to one of its mandates. Now in its fourth cycle, the NTESDP 2018-2022 banners the theme, “Vibrant Quality TVET for Decent Work and Sustainable Inclusive Growth”. This Plan situates the realities that actors, players, and stakeholders of the TVET community face, and articulates these realities into directions, strategies, programs, and activities that respond to real human needs. It mirrors the TESDA’s experiences and presents lessons learned from the successes, as well as from failures, of past planning cycles. One of my irst actions after I assumed the TESDA’s leadership was to chart the Agency’s priorities. This gave birth to our Reform and Development Agenda which emphasizes social equity in the provision of TVET in the country, aside