Outlook and Policy Options for Philippine Employment Towards 2040

Abstract

The Philippine labour market is characterized by a large and diverse workforce but faces significant issues, including adoption to continuing global technological changes in production. Addressing these challenges requires policies that target vital strategic industries for sustainable economic growth and job creation to fulfil its ambitions for the Filipino people in 2040. Using a computable general equilibrium model, we simulate the labour market in the 2024–2040 period, assuming growth targets with modest capital and technological factor productivity changes. The results show an increase in employment shares and presumably the share of value added overall in skilled and unskilled workers. The conduct of multi-sectoral employment planning summits from the national to regional levels as mandated by the recently passed employment law called the Trabaho Act would address issues related to productivity growth.