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NICERIO, REGIE P. Dr.

Annie Cu-Gallardo
BSE-Eng II-I

Chapter 9
Education and Industry

Jobs and skills should match. One of the things that keep graduate students from finding a job
is the mismatch of skills possessed by these graduates and requirements of job. One example of this is
the establishment of call centers in the Philippines that has provided light in the uncertainties of these
new graduates. Call centers need to hire a lot of workers but only a small number pass because of the
stringent requirements of grammar and the manner of speaking needed. Therefore, the captains of
industry urgently need to coordinate with the Commission on Higher Education in matching the skills
required of the market and the training given by universities to meet these requirements.
To solve the problem in mismatch in skills and the requirements of the jobs, former President
Macapagal-Arroyo, issue an executive order creating a new path called ladderized system of education
and training, converging the TVET system of Technical Education and Skills Development Authority
(TESDA) and the higher education programs of the Commission on Higher Education (CHED).
The basic features of the system are as follows:
Students and trainees acquire technical and vocational skills from TESDA registered programs in
schools and training centers, public and private.
After the training, the graduates apply for jobs and get employed.
When they decide later to continue their studies to earn a college degree, the TVET training they
have completed will be credited in the college course they will take.
One of the outstanding features of the ladderized system is the portability of credits earned in a
TESDA registered program to a college course recognized by CHED. Similarly, college graduates who will
enroll in a related TVET program will earn the equivalent credits.
This innovative program of partnering for jobs is perhaps the solution to the problem of
mismatch in the competencies and skills of graduate and the requirements of the employers.




NICERIO, REGIE P. Dr. Annie Cu-Gallardo
BSE-Eng II-I

Three researches about Education and Industry.
Growing Gap Between What Business Needs and What Education Provides
There are all sorts of reasons to get an education. It gives you perspective on the world, it makes
you a complete person, and of course most importantly of all, it helps you build a career.
Unfortunately this link between education and jobs seems to be breaking down.
McKinsey just published a groundbreaking study of the impact of education on employment
(Education to Employment), and it demonstrates the challenging mismatch between our educational
system and the job skills employers need.
It demonstrates the tremendous need for skills in the workforce, and points out many gaps in
the educational systems ability to drive these skills.
(Makes me wonder if we need to rethink the purpose of education in general, frankly.)
Let me highlight a few of the key findings.
1. The paradox of high unemployment and a war for talent continues.
We dont have a jobs crisis in the world, we have a skills crisis. Some clear evidence from this report.
45% of US employers say lack of skills is the main reason for entry-level vacancies
Only 42% of worldwide employers believe new graduates are adequately prepared for work.
This data echoes the data we hear regularly from clients. Companies need to invest heavily in internal
development programs to stay competitive. Our research shows that the training industry grew by 12%
this year, the highest level in 9 years.
This research also shows that employers would be willing to pay new workers 22% higher
salaries if they did have the skills they need. Employers want ready made employees.




2. Worldwide educational institutions are out of sync with employer needs.
While 42% of employers believe newly educated workers are ready for work, 72% of educational
institutions do. This is an enormous mis-match. Primary and secondary educational institutions are not
keeping in touch with corporate recruiters and the needs of business.
Again our research validates this completely. Most of our clients are investing heavily in new
corporate universities, onboarding programs, and what we call continuous learning programs. In fact
the L&D industry is in the middle of a renaissance, as companies try to reinvent all types of training
around new internet technologies.
3. Students dont perceive that traditional education methods drive job skills.
The #1 cited way (60%) students believe they learn skills is through on the job training. (Our
reserach shows that 72% of business managers say the same thing.) 58% cite that hands-on learning is
best.
Lectures are the lowest rated learning method (30%) tied with traditional online learning
(30%).
Unfortunately most colleges still rely heavily on lectures and the for-profit distance learning
institutions rely heavily on traditional online learning. (Only 24% of academic program graduates say
that they use hands-on learning in their program.)
Again our research validates this completely. Corporate L&D managers blend lectures with a
wide variety of informal learning techniques, and today corporations spend less than 60% of all their
training budgets on instructor led training.
4. While vocational education appears to be a good solution, it has low or lesser perceived value
among students.
This was a fascinating finding, which I think gets to the ultimate point. The research compared
student perceptions of value between traditional education and vocational education and apprentice
programs. In the research every country values traditional education over vocational education except
for Germany, where 49% of respondents say academic education is more valuable.
Germany, of course, is a country filled with apprentice-based programs and has among the
lowest unemployment rate in Europe.

Unfortunately, vocational programs are not always the answer either. 23% of students
who attended vocational programs felt they attended the wrong institution and 42% are unsure
they took the right program.
5. Students have a weak understanding of the skills and degrees which will best help them
find a job.
The study also points out that most students are not sure what educational program
will help them find a good job. In fact the study finds a whole segment of students who have
given up on their ability to leverage education to find a job.
In my own case, my children had very little coaching from their colleges about possible
career opportunities and how to assess their aptitude for different potential careers. To me this
is a systemic problem with the educational system students need information and tools to
help them see the pathway from education to employment.
Bottom Line: Skills Matter, and its Hard to Get Them
This study which points out many important issues we talk with employers about every
day.
1. Investments in training pay off big-time. Both for you as an individual and for you as an
organization. So when you take a job, look for a place you can learn something. Early in your
career the learning is worth far more than the salary.
2. Young workers should seek out employers and managers who believe in training people.
Most of us enter the workforce with lots of book knowledge but very few working skills. Join a
company that will invest in you some will and some wont.
3. Educational institutions around the world are not keeping up with teaching styles and
general skill needs of the 21st century workforce. This is a very complex problem to fix, but at
least the issues are on the table. Education providers and leaders have to visit corporate
recruiters and learn about the needs of business.
4. Corporate L&D and HR managers must heed this message. If you dont take the time, spend
the money, or learn how to build world-class development programs, you will not be able to
compete. There is no real war for talent, there is a war for skills and what better way to
win the war than to build your arsenal internally.
5. The education industry itself must rethink its model. The coming technical disruptors (EdX,
Udacity, and other online education providers) are experimenting with new business models.
There are many reasons to get a good education, but ultimately it must provide a pathway to a
promising and successful career.





















Philippines creates opportunities in overhaul of K-12 education system
The Philippines is undergoing a major overhaul to bring it in line with education systems
worldwide, starting with the K-12 sector. This change to domestic education policy has far-reaching
consequences and is important for international educational institutions to consider when looking for
potential new student recruitment markets.
With the new 12-year curriculum in place, future Filipino students will be ready and better
equipped to join overseas universities at the undergraduate level. And with a K-12 student
population of 20.67 million, which will only increase over the next 20 years (see ICEF Monitorsarticle
New 2035 enrolment forecasts place East Asia and the Pacific in the lead), the Philippines is
shaping up to be an attractive recruitment destination.

Changes to basic education
The K-12 Basic Education Program aims to provide every Filipino child with the education
s/he needs to compete in a global context.
In May, President Benigno Aquino of the Philippines signed into law a basic education curriculum
that will see a mandatory kindergarten year and two additional senior high school years added to
what was a 10-year education curriculum to make basic education 12 years. The programme has
been adopted not only in schools in the Philippines, but also in Filipino schools abroad that follow the
departments curriculum. Gulfnews reports:
The goal of the new curriculum is to give Filipino students enough time to master skills and concepts
so that they are ready for tertiary education when the time comes.
Kindergarten was previously optional, and advocates of the K-12 programme argue that
students who went to kindergarten are better prepared for primary education than those who did not.
In addition, the K-12 programme provides for the use of the mother tongue language as the
medium of instruction for students in the basic and lower years to facilitate and expedite learning.
This fabulous interactive map of all public schools in the country could be a useful tool in planning a
recruitment strategy. It contains data on the schools budget, enrolment statistics, education
indicators, number of teaching personnel, furniture, textbooks, classrooms, plus the water and power
supply of some 45,000 schools nationwide.

10 Point Education Agenda
The move to the K-12 policy comes as part of the 10 Point Education Agenda which was set
out by the current government administration. The K-12 Basic Education Program, universal
kindergarten and instruction in mother-tongue languages are but three of the ten points Aquinos
administration want to implement in order to improve the overall quality of education in Filipino
schools.


The other seven points include:
Establish the Madaris Education as a sub-system in the current education system;
Make every child a reader by Grade 1;
Improve science and mathematics;
Expand government assistance to private education;
Better textbooks;
Build more schools in cooperation with local government units (LGUs);
Re-introduce technical and vocational education in public high schools.

Australia extends a helping hand
Australia has long been a friend to the Philippines donating time, funding and other
resources, as well as working with the nation to develop and ensure quality. Last month, the country
grantedPHP 8.4 billion (nearly US $193 million) to address basic education issues and support the
implementation of the K-12 programme.
They have also funded a project to enhance the skills of school officials in managing school
processes and turn schools into learner-centred institutions that continually improve and build on its
best practices.

In return, Australia is surely hoping Filipino schools and students will select Oz as their
destination of choice for partnerships and study. As ICEF Monitor reported in February, the
Philippines is one of the top ten student markets for Australian schools, colleges and universities.

Building classrooms and adding teachers
As mentioned, one of the ten points on the Education Agenda aims to address severe
overcrowding in Philippine schools and the shortage of classrooms.
In October of last year, the Department of Education signed an agreement with two winning
consortia which will undertake the construction of close to 10,000 classrooms.
The departments Public Private Partnership for School Infrastructure Project (PSIP) will give
schools the physical space they need and provides the private sector the business opportunity to
invest in the design, construction and maintenance of classrooms.
Philippine Education Secretary Armin A. Luistro has said he hopes that by doing so, the
classrooms would stand as a testament to Filipino capability and efficiency. Progress is well
underway; construction of more than 9,000 classrooms began in March of this year.
An increase in student enrolment which caused the shortage of teachers was due to an increase in
kindergarten students a result of the new K-12 curriculum, as well as students who were formerly
enrolled in private school transferring to public school because of tuition fee hikes.
Student enrolment in 2012/3 stood at 20.67 million: 1.77 million kindergarten students, 13.26
million elementary students, and 5.64 million high school students.

Increased focus on vocational education
A final point on the 10 Point Education Agenda calls for a re-introduction of vocational and
technical education in high schools, which has been designed to give Filipino students practical skills
to gain employment after graduation a key component in tackling the high youth unemployment
rate in the Philippines.
Some advocates are calling for the adoption of the German model of apprenticeship.
The Manilla Bulletin reported:

It is hoped that adopting the German model would help address the skills mismatch between
Filipino graduates and the jobs available. Ramon del Rosario, chairman of the PBEd, has said now
is the time to implement the apprenticeship system, because of the start of the K-12 curriculum: It is
a good time because of the development of the senior high school curriculum and that will have a
track towards technical vocational education.
In May, the Technical Education and Skills Development Authority (TESDA) announced it had
completed the K-12 technical vocational curriculum, and everything was in place for the start of the
new school year.

TESDA Secretary Joel Villanueva said, Technical vocational education and training (TVET)
will play a central role in the new education model that prepares students for tertiary education,
middle-skills development, employment and entrepreneurship. Courses include automotive
servicing, horticulture, welding, consumer electronics, dressmaking/tailoring, carpentry, food
processing and beauty care.
The Philippines as a study destination
Like many of its neighbouring countries, the Philippines has its eye on becoming a study
destination of choice for students from the Asia-Pacific region.
In January of this year, the Philippine Bureau of Immigration reported that of the 203,753
foreigners in the country, 47,478 are studying in schools and universities across the country (which is
14% higher than the 41,443 foreigners who applied in 2011). The bulk of those (31,000) are under the
age of 18 and studying at an elementary or high school or on a short-term (less than 1 year) course.

The Bureaus Commissioner Ricardo David Jr said: Our country is fast emerging as a new
educational hub in the Asia-Pacific region. More and more foreigners are coming here to study and it
demonstrates recognition of the improved quality of our educational system. He attributed the influx
of foreign students to the quality of teaching and the use of English as the medium of instruction.
Some of those students chose the Philippines to study English, and the government is hoping to
boost ESL student numbers by making it easier for them to stay and learn.

Last year, ICEF Monitor reported that for international students studying English in
Australia, the Philippines had entered the competition as a destination option for the first time in
2011. Backing that up, an article in The PIE News quotes Ruth Tizon, Programme Director of the
Philippines ESL Tour Program, as saying,
One thing is clear: the Philippines is looking ahead. With a growing population and a budding
economy, demand for quality education is high. Many Filipino parents welcome the basic education
reforms and are looking forward to more opportunities for their children in vocational and higher
education. We explore both in this follow-up piece.






















Schools, industries seek ways to reduce unemployment of college graduates
With sweeping basic education reforms set in motion, the countrys top university presidents
and industry leaders want to make sure the problem of unemployment among college graduates is not
overlooked.

The Philippines youth unemployment rate was placed at 16 percent in the second quarter of
2012, albeit lower than the 16.6 percent recorded in the same period in 2011.

*Studies show that+ the largest groups of unemployed or underemployed in the Philippines
today, despite the massive economic growth, are college graduates. That statistic alone should be a
wake-up call, said Mir Tillah, education specialist of the United States Agency for International
Development (USAID), in a recent meeting of the National Industry-Academe Council (IA Council).

The meeting, organized by the Philippine Business for Education (PBEd) and USAID at Shangri-
Las Boracay Resort and Spa, identified a three- to five-year industry-academe agenda toward higher
education reforms.

When college graduates could not find employment, their parents investment on four to five
years of education would go down the drain, the experts said.

*This] results in a massive inefficiency in our economy because these things could have been
put together to better use to supply the Microsofts, the IBMs, the SMEs (small- and medium-scale
enterprises), Tillah said.

While personal factors like attitude and behavior could adversely affect employment chances,
incompetency and the lack of skills for jobs available were often the reasons for graduates failure to
land jobs.

Business-ready graduates

University of the Philippines president Alfredo Pascual said the alarming figures of youth
unemployment and the pressures of globalization were compelling higher education institutions (HEIs)
to produce graduates that were business-ready.

He described these graduates as those who can be readily employed right after graduation
which, in effect, relieves the industry of its traditional function of providing the initial training for its
recruits.

A 2011 World Bank study, Skills and Research for Growth in East Asia, found that tertiary
education failed to meet its potential because HEIs were operating as disconnected individual
institutions, rather than as parts of a larger ecosystem that included employers and companies, said
PBEd president Chito Salazar.

The National Industry-Academe Council, established in July, is a forum where the academe and
industry can sit down and talk to discuss ways to bridge gaps in the school-to-work transition.
It resulted from PBEds Higher Education Summit earlier this year that was attended by
university presidents and representatives of the government and the private sector.

Industry involvement

The summit underscored again skills gaps and mismatches and the need for industry to be
closely involved in higher education reforms to reduce unemployment and prepare the countrys labor
force for the tough competition expected in the Association of Southeast Asian Nations (Asean) 2015.

Participants in the IA Council meeting said linkage between industry and HEIs should grow
beyond the 150- to 300-hour summer on-the-job training (OJT) and annual scholarships. Companies
should develop partnerships with HEIs not just as corporate social responsibility (CSR) programs but as
investments.

Industrys involvement in academic reforms should be a business strategy, not just a CSR
project, the IA Council added.

PBEd proposed a public-private partnership, the Philippine Pact for Youth

Employment, patterned after the German model of apprenticeship. Students would be
recognized as employees and would be regularly paid. They would spend 80 percent of their time in a
company and 20 percent in school.

Apprentices would be more like employees who studied rather than students who worked,
Salazar said.

The proposed Philippine Pact for Youth Employment would be a five-year social pact among
government, industry and education institutions that is intended for Filipinos aged 18-24 who are out
of school and unemployed but must have finished Grade 10 (fourth year high school).

Key industries in the country, such as business process outsourcing, electronics, agro-industry,
tourism, retail and fast foods, would commit to create 100,000 apprenticeship positions a year.

Students under the one-year apprenticeship scheme would receive 75 percent of the regional
minimum wage and would have to devote four days a week to the company to learn practical
competencies. They would be in school one day of the week to learn the theories and general skills.

PBEd is expected to present the proposal to the government soon.

Incentives needed

To make the proposal attractive to industry, the plan would include various incentives.

Private companies operate on an ROI (return on investment) framework and theyll not get
into an activity unless there are justifiable returns to their shareholders, Emilio Aguinaldo University
president Jose Paulo Campos said. *B+eyond future dividends in terms of competent staff, they at least
want to cover their costs.
University of Makati president Tommy Lopez agreed. It will be easier to forge a partnership
between the academe and the industry if incentives are provided.

Salazar said the adoption of the K to 12 curriculum and the anticipated Asean 2015, the
integration of the Asean market, prompted the Commission on Higher Education (CHEd) to review all its
programs to see if they met the needs and demands of todays industries.

While the CHEd was already working on curricular adjustments with technical panels that
included industry representatives, Commissioner Cynthia Bautista said some improvements were still
needed as far as industry engagement was concerned.

The system *of industry involvement+ is there, its just that its still only the CHEd that
*decides+ on who gets *to sit+ in the panel, she said .

Bautista added that proposed policies, standards and guidelines (PSGs) also had to go
through public consultation.

The CHEds membership and consensus-building processes could be improved, the
commissioner said.
PBEd had been heavily involved in the CHEds curricular reviews and PSG drafts to develop an industry-
led accreditation system, Salazar said. *This accreditation system+ is a way for industry to put its
stamp on schools.

An industry-stamped school, for instance, would mean that its curriculum was designed within
and driven by the demands of the particular sector, Salazar said.

This would suggest that graduates of the school were taught the skills and competencies
demanded by the industry.

Tillah pointed out that the education sector was an industry in itself and, thus, had a market to
serveparents and students. The partnership between companies and HEIs could contribute to
achieving the education sectors marketing goals.

IBM Philippines executive Delfin Jay Sabido said in a group report that there was a clamor for
companies to release employment figures to show the school demographics of those employed.

Meeting participants acknowledged that college education decisions were still made by parents
and students.

Jose Rizal University president Vincent Fabella said a thorough market study was needed to find
out what influenced parents and students decisions on college education.

He said by knowing how parents and their children made decisions HEIs, working with industry,
would be able to develop more relevant and practical solutions to skills gaps and mismatches plaguing
the work force.

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