THE Philippine Institute for Development Studies (PIDS) said skills mismatches and shortages indicate a need to improve forecasting with the aid of a Labor Market Information System (LMIS).
In a statement on Monday, PIDS, a government think tank, said outdated and incomplete labor market information may be behind the problem of skills mismatches, undermining productivity and economic competitiveness.
“A comprehensive labor market data system should provide a framework for anticipatory skills mapping, connecting current educational outputs to future labor needs and ensuring that national skill sets evolve with the economy,” PIDS Senior Research Fellows Connie Bayudan-Dacuycuy said.
An LMIS could serve as a “central database” that collects, analyzes, and disseminates data on labor market trends, skills demand, and workforce needs, PIDS said.
Ms. Dacuycuy said an LMIS will enable government agencies and industries to identify skills shortages, align educational programs with labor market needs, and make informed policy decisions.
She also highlighted the need for establishing a skills data foundation, starting with a comprehensive skills taxonomy aligned with the Philippine Standard Occupational Code.
“A strong LMIS, supported by standardized data taxonomies and sector collaboration, is important to bridge information gaps and prepare the workforce for future job demands,” she said.
Ms. Dacuycuy was presenting the findings of her study, “Inputs to the Philippine Labor Market Information System and TESDA’s Skills Anticipation and Prioritization of Skills Requirements Framework.”
Technical Education and Skills Development Authority (TESDA) Executive Director Charlyn Justimbaste called LMIS “essential for anticipating skill requirements and ensuring our education outputs meet the evolving needs of the economy, and addressing the critical skills mismatch that hinders growth.”
She also highlighted the need for a regional, demand-driven approach through the National Technical Education and Skills Development Plan 2020-2028 to boost global recognition of Philippine technical and vocational education.
“To bridge the skills gap, we must enhance our apprenticeship and dual training systems, as these models have proven effective in aligning educational outcomes with industry needs,” according to Emily Christi Cabegin, professor at the University of the Philippines School of Labor and Industrial Relations.
