Bridging the Gap: Philippines Faces Skilled Worker Shortage in Ambitious Infrastructure Drive

The Philippines continues to grapple with a labor shortage, particularly in skilled workers, which poses challenges to the government’s infrastructure program. Secretary Arsenio Balisacan of the National Economic and Development Authority (NEDA) views this scarcity as a sign of improving labor market conditions, as it leads to rising wages in a rapidly growing economy. This shortage, initially highlighted during the Duterte administration, is still prevalent under the current administration, despite concerted efforts to address it.

The shortage has been a persistent issue, delaying key infrastructure projects and affecting housing prices. President Rodrigo Duterte had pointed out in 2019 that many skilled workers, including those in construction, were leaving the country for better-paying jobs overseas. Currently, the administration of President Ferdinand Marcos Jr. is overseeing 197 projects worth P9 trillion under its flagship infrastructure program, expected to drive economic growth significantly.

To tackle these challenges, the government is focusing on aligning education systems and upskilling programs with the needs of the private sector. Solutions include improving access to lifelong learning through apprenticeships and investing in Technical and Vocational Education and Training programs. There’s also an emphasis on collaborating with the private sector to identify and address skill gaps.

Senators have also urged the government to ensure the welfare of construction workers and provide opportunities for upskilling, especially those employed in government projects. Senator Alan Peter Cayetano suggested that the Department of Public Works and Highways (DPWH) establish a monitoring system to oversee workers’ welfare and ensure compliance with Social Security System (SSS) and Philippine Health Insurance Corp. (PhilHealth) contributions. Senator Raffy Tulfo advocated for mandatory liability insurance for accidental deaths or injuries in infrastructure projects, emphasizing the need for better protection and compensation for workers and affected individuals.

These labor issues reflect broader socio-economic challenges that the Philippines faces as it seeks to bolster its economy through extensive infrastructure development. The focus on aligning workforce skills with industry demands, ensuring workers’ welfare, and fostering public-private partnerships is essential for the sustainable growth and development of the country’s economy and infrastructure sector​​​​​​.