The Asian Development Bank (ADB) is extending a $400-million policy-based loan to the Philippines to reduce the number of out-of-school and unemployed youth, according to a report by Business Reporter.
While some progress has been made in reducing unemployment in the country, one in five Filipinos between the ages of 15 and 24, including one-third of young Filipino women, are still not in employment, education, and training, compared with the average rate of 18 per cent in Southeast Asia and the Pacific.
The new ADB loan supports the government’s efforts to expand and transform operations of the Public Employment Services Offices in local government units (LGUs) across the country into more professional processes with quality standards, broaden the coverage of the Jobstart Philippines Program, and introduce skills development schemes targeting specific sectors.
The loan also supports labor policy reforms, such as the introduction of unemployment insurance as part of amendments to the Social Security Act and the Occupational Safety and Health Standards Act, which requires employers to comply with specific workplace standards.
“This new ADB loan seeks to address the skills mismatch between young job seekers and the competencies demanded by employers,” said ADB Southeast Asia Senior Economist for Public Finance Ms. Cristina Lozano. “It also strengthens labor regulations to provide income security and decent jobs.”
Read full story: ADB Approves $400m Loan To Boost Youth Education, Employment in PH