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IN.

496-20
16 December 2020

Performance Evaluation Report


Job Creation and Skills Development in the
Philippines
(TA 8164, 8334, 8335, and 8984)

The attached report is circulated at the request of the Director General, Independent
Evaluation Department. This report is also being made publicly available.

For Inquiries: Walter Kolkma, Independent Evaluation Department


(Ext. 4189)
Eungji Kim, Independent Evaluation Department
(Ext. 1297)
Performance Job Creation and Skills
Evaluation
Report Development in the Philippines

Independent
Evaluation
Raising development impact through evaluation
Technical Assistance Performance Evaluation Report
December 2020

Job Creation and Skills Development in the


Philippines

This document is being disclosed to the public in accordance with ADB’s Access to Information Policy.

Reference Number: Technical Assistance Numbers:


8164, 8334, 8335, and 8984
Independent Evaluation: TE-070
NOTES

(i) The fiscal year of the Government of the Philippines ends on 31 December.
(ii) In this report, “$” refers to United States dollars.
(iii) For an explanation of rating descriptions used in Asian Development Bank evaluation
reports, see Asian Development Bank. 2016. Guidelines for the Evaluation of Public Sector
Operations. Manila.

Director General Marvin Taylor-Dormond, Independent Evaluation Department (IED)


Deputy Director General Veronique N. Salze-Lozac'h, IED
Director Walter Kolkma, Thematic and Country Division, IED

Team leader Eungji Kim, Senior Evaluation Specialist, IED


Team member Michelle Angieline Dantayana, Evaluation Assistant, IED

The guidelines formally adopted by the Independent Evaluation Department (IED) on avoiding conflict of
interest in its independent evaluations were observed in the preparation of this report. To the knowledge
of the management of IED, there were no conflicts of interest of the persons preparing, reviewing, or
approving this report.

In preparing any evaluation report, or by making any designation of or reference to a particular territory
or geographic area in this document, the IED does not intend to make any judgment as to the legal or
other status of any territory or area.
Abbreviations
ADB – Asian Development Bank
AIM – Asian Institute of Management
ARTA – Anti-Red Tape Authority
ASEAN – Association of Southeast Asian Nations
BLE – Bureau of Local Employment
CPS – country partnership strategy
DMF – design and monitoring framework
DOF – Department of Finance
DOLE – Department of Labor and Employment
DOT – Department of Tourism
eSMP – electronic service management program
FGD – focus group discussion
HEI – higher education institution
IBPAP – IT & Business Process Association of the Philippines
ICT – information and communication technology
ILS – Institute for Labor Studies
ISGS – industry skills grant scheme
IT – information technology
IT-BPO – information technology and business process outsourcing
JSP – JobStart Philippines
LGU – local government unit
LST – life skills training
PDP – Philippine Development Plan
PEIS – Public Employment Information System
PESO – Public Employment Service Office
RIA – regulatory impact assessment
RIS – regulatory impact statement
SMEs – small and medium-sized enterprises
TA – technical assistance
TCR – technical assistance completion report
TISP – Tourism Industry Skills Program
TPER – technical assistance performance evaluation report
UPOU – University of the Philippine Open University
Contents
Acknowledgments ix
Basic Data xi
Executive Summary xiii
Map ix

Chapter 1: Introduction 1
A. Evaluation Purpose and Process 1
B. Technical Assistance Objectives 2
C. Technical Assistance Completion Reports 3

Chapter 2: Design and Implementation 5


A. Rationale 5
D. Cost and Financing 8
E. Executing Arrangements 8
F. Consultants 9
G. Scheduling 9
H. Design Changes 10

Chapter 3: Performance Assessment 11


A. Relevance 11
B. Effectiveness 17
C. Efficiency 21
D. Sustainability 23

Chapter 4: Other Assessments 27


A. Impact 27
B. ADB and Executing Agency Performance 30

Chapter 5: Overall Assessment, Issues, Lessons, and Follow-Up Actions 31


A. Overall Assessment 31
B. Issues 32
C. Lessons 33
D. Follow-Up Actions 34

Appendixes 36
1. Focus Group Discussions 37
2. Design and Monitoring Frameworks of Technical Assistance Projects 38
3. Summary of Accredited Hotels and Resorts 45
4. List of Regulatory Impact Assessment Statements 46
5. DOLE RIA Capacity Building Activities 48
6. Jobstart Summary Performance 49
7. List of Participating PESOs in Jobstart 50
8. Tourism Industry Employment and Share in Gross Domestic Product 51
9. Number of Inbound Visitors Arrivals, 2015–2019 52
10. Statistical Analysis Result from Deparment Of Labor and Employment’s JobStart Philippines Data 53
11. Lessons from the Job Creation and Skills Development Technical Assistance Projects 54
Acknowledgments
This evaluation was led by a team from the Independent Evaluation Department (IED) of the Asian
Development Bank. The final report was prepared by team leader Eungji Kim (Senior Evaluation
Specialist); supported by Michelle Angieline Dantayana (Evaluation Assistant); and consultants Clark
Dingcong and Imelda Baleta. Eungji Kim led the evaluation mission in the Philippines during February
2020. The team received technical feedback from Pablo Acosta, World Bank human development expert;
and comments from Ari Perdana, Evaluation Specialist, IED.

The report was prepared under the guidance of Marvin Taylor-Dormond, Director General; and Walter
Kolkma, Director, Thematic and Country Division.

The team would like to thank stakeholders, beneficiaries, government officials of the Department of
Tourism and Department of Labor and Employment, development partners from Canada and the
Republic of Korea who cofinanced some of the technical assistance, and staff from the Asian
Development Bank (ADB) Philippine Country Office and ADB headquarters for their time and sharing of
their opinions. The team would also like to thank the local government officials met in Bohol, Cavite,
Cebu, Davao, Palawan, Pampanga, and National Capital Region, who made invaluable contributions to
this evaluation through their participation in focus group discussions and surveys.

IED retains full responsibility for this report.


Basic Data
Key Information TA 8164 TA 8334 TA 8335 TA 8984
Title Strengthening Improving Employment Support for the
Knowledge-Based Competitiveness in Facilitation for Nationwide
Economic and Tourism Inclusive Growth Rollout of JobStart
Social Development Philippines

Implementation 2012–2016 2013–2017 2013–2017 2015–2020

Budget approved ($) 500,000 7,116,900 5,661,900 8,798,500


ADB 0 0 70,000 1,300,000
Cofinancing ($) 500,000 7,116,900 5,591,900 7,498,500

Budget disbursed ($) 385,012 5,915,142 4,789,220 5,200,909


(ongoing)

Cofinancing agency e-Asia and Canadian International Canadian Canadian


(Country) Knowledge Development Agency International International
Partnership Fund (Canada) Development Development
(Republic of Korea) Agency (Canada) Agency (Canada)

Executing agency Department of Department of Department of Department of


Finance Tourism Labor and Labor and
Employment Employment

Milestones

President’s or Board 14 Sep 2012 5 Mar 2013 5 Mar 2013 30 Oct 2015
approval

Signing of TA 18 Oct 2012 15 Apr 2013 16 May 2013 21 Jan 2016


agreement

Fielding of 19 Sep 2013 07 Nov 2013 16 May 2013 ...


consultants

TA completion
Expected 15 Oct 2015 28 Feb 2017 28 Feb 2017 31 Dec 2020
Actual 15 Oct 2016 31 Aug 2017 31 Aug 2017 ...

Account closing
Expected 15 Oct 2015 28 Feb 2017 28 Feb 2017 31 Dec 2020
Actual 9 Jan 2017 16 Aug 2017 18 Dec 2017 ...

Circulation of TA July 2018 May 2018 April 2018 ...


completion report
ADB = Asian Development Bank, TA = technical assistance.
Source: Asian Development Bank.
Executive Summary
This evaluation examined support from Asian Development Bank (ADB) to the Government of the
Philippines for interventions in skills development and job creation. It assessed four technical assistance
(TA) projects implemented from 2013 onwards: (i) Strengthening Knowledge-Based Economic and Social
Development, (ii) Improving Competitiveness in Tourism, (iii) Employment Facilitation for Inclusive
Growth, and (iv) Support for Nationwide Rollout of Jobstart Philippines. These projects were selected to
examine how ADB used TA projects to support skills development and employment in response to the
need for better opportunities for Filipinos, particularly the youth, as part of an effort to reduce poverty
and promote inclusive growth.

The evaluation assessed the first TA project less than successful, while ADB’s TA projects on tourism and
employment facilitation were found to be successful. The last TA project, on Jobstart Rollout, was not
rated as it is still ongoing. The preliminary development impacts and performance of both ADB and the
borrower were deemed satisfactory, except that the first TA was less than satisfactory. Despite
inconsistent performance and outcome of the TA projects, they all contributed to demonstrating the
impact of giving employers a greater role in the planning stage of the skills training. Overall, this
evaluation shows that ADB’s work on skills development is significant and could play a vital role in
shaping the government’s sectoral policy, regardless of the amounts spent.

Despite varied levels of performance and outcome, the four TA projects demonstrated the benefits of
improving the capacity of government agencies mandated to do skills development. Expanding Public
Private Partnerships in skills development is crucial—employers need to play a clear role in helping with
the skills training of their employees or trainees. Successful innovations need to be pursued and refined.
Continuity in ADB’s effort in developing skills across different fields of intervention is important, in order
to be contribute to government policy in this area.

The evaluation cites three issues to consider with respect to improving performance of skills development
and job creation TA projects in the Philippines: (i) procedural inefficiencies persist in ADB’s TA
implementation, as not enough has been done to streamline lending to local government units; (ii)
appropriate certification of training courses offered by the government was not incorporated into the
project design of the Tourism TA and the At-Risk Youth TA, affecting the TA projects’ effectiveness and
sustainability; and (iii) inadequate monitoring of key indicators during implementation made it difficult
for performance measurement, thereby undermining the process of learning and improving the
programs while undertaking them. In following up, ADB should ensure that (i) lessons from evaluations
feed into scale-up efforts in similar sectors or regions, and (ii) institutionalization of the life skills training
module is promoted to maximize the impact and sustainability of the JobStart TA projects.

Background most extreme in Southeast Asia. The prevalent


and wide income disparities across the regions
The Philippines is among the fastest growing indicate that the benefits of economic growth
economies in Southeast Asia and was on track to have been distributed unevenly.
achieving its target of becoming an upper middle-
income country by 2022 before the coronavirus
disease (COVID-19) pandemic struck in 2020. To reduce this inequality, the Asian Development
While national poverty incidence fell from 25.2% Bank (ADB) utilized capacity development
of the population in 2012 to 21.6% in 2015, the technical assistance (TA) projects to support job
poverty rate nevertheless translated to almost 22 creation and sustainable economic growth
million poor people and is considered high for a through education. The following TA projects
middle-income country. Furthermore, household were assessed: (i) Strengthening Knowledge-
income inequality in the Philippines is among the Based Economic and Social Development
xiv Job Creation and Skills Development in the Philippines

(information technology and business process development, improving the delivery of


outsourcing [IT-BPO] TA), (ii) Improving employment services for at-risk youths, and
Competitiveness in Tourism (Tourism TA), (iii) supporting a pilot for JobStart (providing
Employment Facilitation for Inclusive Growth (At- employment assistance to young job-seekers). The
Risk Youth TA), and (iv) Support for Nationwide JobStart Rollout TA sought to build on the results
Rollout of JobStart Philippines (JobStart Rollout and lessons learned from the JobStart pilot and
TA). These TA projects were selected to examine expand it nationwide.
how ADB has recently used TA to support skills
development and employment in response to the Assessment of Performance
development need for providing better
employment for Filipinos, particularly the youth. IT-BPO TA. Despite being well-aligned with
priorities of both the government and ADB, the
TA’s lack of clear management and reporting
Evaluation Purpose and Process structure aggravated the loosely integrated
implementing agencies and resulted in the mid-
This TA performance evaluation assessed the TA implementation departure of one of these, the
projects for relevance, effectiveness, efficiency, Asian Institute of Management, thus contributing
and sustainability to arrive at overall success to 12 months of delay. The ambitious project
ratings. The evaluation also assessed development outcomes could not be achieved within the given
impacts and the performance of ADB, the time frame. A lack of information technology (IT)
borrower, and the executing agency. The infrastructure in rural areas was not taken into
evaluation was based on desk review of project consideration, and this hampered deployment of
documents, consultations with the project teams IT-BPO industry-designed curricula in higher
at ADB headquarters and in the Philippine Country educational institutions outside the National
Office, development partners, and government Capital Region. Though the TA’s ambitious goals
executing agencies. Interviews, field visits, and included forming linkages between industry and
focus group discussions were conducted in 13 academia to provide relevant and up-to-date
locations in the country from December 2019 to training, no single executing or implementing
February 2020 to gain insights from agency had the capacity or mandate to link e-
implementing agencies and project beneficiaries. learning and job integration. The innovation
Also, a brief survey was conducted in parallel to required by the TA design simply outpaced the
gather additional assessments. realities of what was possible at the time in the
Philippines.
Expected Impacts, Outcomes, and
The IT-BPO TA was assessed less than successful,
Outputs as the prior design shortcomings made it less than
relevant and the TA’s underperformance in terms
The Strengthening Knowledge-Based Economic of both output and outcome made it less than
and Social Development TA was formulated to effective. The project’s completion delay and
address skills shortages in the high-growth abrupt departure of an implementing agency are
industry of IT-BPO. It aimed to develop a replicable among the factors making the TA less than
and sustainable system of information and efficient. It also was less than sustainable due to
communication technology knowledge hubs that lack of sustained outcome from the e-learning
would improve teaching and learning of IT-BPO modules and near total loss of institutional
industry-designed curricula in higher education knowledge within both executing and
institutions. The Tourism TA was intended to raise implementing agencies.
the level of competitiveness in tourism by
supporting the implementation of a regulatory Tourism TA. The project’s innovation was
impact assessment (RIA) program, a hotel and dependent upon public–private partnership (PPP)
resort quality assurance and accreditation system, between the Department of Tourism (DOT),
and a tourism industry skills program. The At-Risk employers, and tourism sector industry groups.
Youth TA was designed to boost job creation by The project successfully updated the hotel and
building capacity in labor market policy resort quality assurance and accreditation system
Executive Summary xv

and embedded the RIA component within DOT’s introduced an additional innovation: offering
policy framework. The recently formed Anti-Red different pathways for JobStart trainees and
Tape Authority has borrowed heavily from that JobStarters, as it had been observed during the
framework to develop and incorporate RIAs at a pilot that not all youths needed to go through the
national level. Regarding skills development, the full employment facilitation cycle. This innovation
TA laid the foundation for the Office of Industry made the design more flexible and responsive to
Manpower Development within the DOT and was the varying capacity and readiness of JobStarters.
instrumental in DOT’s allocation of PHP100 million
per year to support national rollout of a follow-up Although the TA design was deemed relevant, it
training program. was noted that both DOLE and PESOs were
sharing a greater burden of funding the technical
The Tourism TA was assessed successful, despite training and on-the-job training for the
poor selection of key performance indicators and JobStarters. Although it had been meant to foster
uneven monitoring. The TA and its innovations local ownership and long-term sustainability, it
were found to be relevant to the policies and resulted in the TA being vulnerable to
needs of the tourism sector. Outputs and unpredictable and inconsistent funding, which
outcomes were mostly achieved in a timely delayed implementation and even curtailed
manner and within budget, making the TA both program participation in some local government
effective and efficient. In view of the sustained units (LGUs). So far the TA was deemed effective,
policy and institutional framework within DOT but the evaluation noted that more effort is
and its continuing support for tourism sector needed to streamline administrative procedures
capacity development through its own follow-up while easing requirements for beneficiaries and
program, the evaluation assessed the TA most implementing partners to incentivize their
likely sustainable. participation in JSP.

At-Risk Youth TA. Besides supporting the capacity Overall Assessment


development of both Department of Labor and
Employment (DOLE) and Public Employment Despite showing varied levels of performance and
Service Office (PESO) officers in employment outcome, each of the four TA projects contributed
services and RIA, the At-Risk Youth TA’s most to demonstrating (i) the need to identify or
successful and visible component was the improve the capacity of government agencies in
JobStart Philippines (JSP) pilot in 4 PESOs, which the developing member countries (DMCs),
was expanded to 10 additional sites by project especially those that are mandated to do skills
completion. In 2016, the central government fully development; (ii) the importance and impact of
committed to JSP by enacting the JSP Bill and PPP in skills development—specifically by giving
allocating yearly funding for a nationwide JSP employers a greater role in planning and
rollout. coordinating the skills training of their employees
or trainees; and (iii) the need for continued
The At-Risk Youth TA was assessed successful, refinement of a successful innovation in order to
despite poor selection of key performance maximize impact while minimizing risk. This
indicators and uneven monitoring. The TA project evaluation also showed the significance of ADB’s
was relevant to the policies and needs of the labor work on skills development in a country, how
sector. Outputs and outcomes were mostly continuity in the effort across different fields of
achieved, making the TA effective. The intervention is important, and how the
implementation did not suffer significant delays interventions can play a vital role in shaping the
and produced most of the deliverables within government’s policy in this area.
budget, making the TA efficient. Considering the
impact of the pilot JSP, the ongoing follow-up TA,
and enactment of the JSP Bill, the TA was deemed
Issues, Lessons, and Follow-up Actions
likely sustainable.
Issues
JobStart Rollout TA. Based on the successful pilot
in the At-Risk Youth TA, the JobStart Rollout TA Issue 1. Procedural inefficiencies persist in ADB’s
TA implementation, as not enough has been done
xvi Job Creation and Skills Development in the Philippines

to streamline lending to LGUs. The Philippines performance. Furthermore, the selection of


Country Partnership Strategy Final Review performance indicators for future TA projects
Validation, 2011−2016 noted that ADB should should consider feasibility of the target as well as
explore new ways to resolve the existing practicality of monitoring to maximize the
challenges in effectively delivering traditional accuracy of performance measurement and the
project loans, especially when these are channeled chance for learning through evaluation.
through multiple government agencies or LGUs. It
should be noted that most beneficiaries of the Lessons
related TA attributed high dropout rates among
both trainees and employers to delays in training Lesson 1. The innovativeness of TA cannot make
caused by slow disbursement of funds from the up for lack of preparedness or capacity of the
central government agencies. ADB needs to think DMC agencies involved. In ADB’s Country
beyond simply providing support for nationally Partnership Strategy: Philippines, 2018–2023,
managed TA projects and start preparing the ADB planned to pilot test an enterprise-led
groundwork for streamlined, direct financing learning network project, which is exactly what
mechanisms for LGUs. the less-than-successful IT-BPO TA had set out to
do. ADB should avoid repeating the same
Issue 2. Appropriate certification of training mistakes by taking the following precautions:
courses was not incorporated into the project (i) verify soundness of the government’s policy
design of the Tourism TA and At-Risk Youth TA, framework and long-term strategy in any
affecting the TA projects’ effectiveness and pertinent nascent sector, (ii) carefully examine the
sustainability. Despite efforts to ease the burden feasibility of PPP arrangements in education and
for employers in coming up with the training plan labor market programs, and (iii) make sure that
for both JSP and the industry skills grant scheme, both private and public sectors are ready to
the learning curve for ADB’s TA projects proved to cooperate in delivering concrete and verifiable
be too steep for small and medium-sized outcomes.
enterprises in rural areas without standard
templates or technical support to fall back on. Lesson 2. Clear implementation arrangements
Also, without standardized training courses, with executing and implementing agencies are
JobStarters or employees ran the risk of limiting essential for the success of skills development
themselves to a very narrow slice of the job projects. Implementation arrangements should
market. By cooperating with the Technical have clear institutional roles and responsibilities,
Education and Skills Development Authority, the and the executing agency should have a clear and
government agency with the mandate to provide strong mandate for monitoring and enforcing
technical training, the TA project could have these roles. Strong leadership by the executing
maximized the effectiveness and sustainability of agency, supported by technically capable
the technical skills training support. implementing agencies, is vital for a project’s
successful implementation. This is illustrated by
Issue 3. Inadequate monitoring of key indicators the less than successful implementation of the IT-
during implementation made it difficult for BPO TA project under the leadership of the
performance measurement, thereby undermining Department of Finance.
the processes of learning and improving the
programs while undertaking them. TA completion Lesson 3. Poor identification of relevant
reports (TCRs) across the various projects were stakeholders can limit ADB’s engagement with
deficient in reporting the performance indicators them, critically affecting the project’s
as identified in the design and monitoring effectiveness, participation and support of local
frameworks, and some even failed to report businesses, and access to the domestic job
detailed ratings for the TA projects. This could market. For the IT-BPO TA, there was no
reflect an actual lack of monitoring of key government agency with a clear mandate for the
performance indicators during implementation. In sector and too many implementing agencies were
preparation of future TCRs, reporting of these brought in to fill the vacuum with their various
indicators and ratings should be required to goals. On the other hand, the other three TA
enable objective assessment of project projects did not identify sufficient partners
Executive Summary xvii

outside DOLE, DOT, and LGUs. Thus, they did not Project officers should support the local PESOs in
avail themselves of networks that could have (i) diversifying promotion channels, (ii) seeking
helped raise public awareness on the innovations out and proactively communicating with
or elevated the quality of technical training. unemployed, at-risk youths, (iii) actively
networking with local employers and promoting
Lesson 4. Overly ambitious project design can participation in JSP, and (iv) sharing and cross-
cause the implementation of interventions at referencing potential candidates for the various
inappropriate levels, resulting in suboptimal skills development and employment support
outcome for the project. Designing the TA programs within the PESO.
projects to initiate and embed RIA within the
existing DOT and DOLE frameworks during each Follow-Up Actions
project’s timespan was quite an ambitious
undertaking, especially considering that RIAs are Follow-Up Action 1. Lessons from previous
administratively and technically challenging. Also, evaluations should feed into scale-up efforts in
most of the RIAs formulated by DOLE and DOT similar sectors or regions. In large skill
were not fully implemented, because development TA projects that aim to scale up on
implementation of the RIAs’ recommendations certain innovations, the findings from earlier
often was beyond the mandate of each pilots of said innovation should be fed into the
department. By contrast, the recommendations design of the scale-up. The JobStart Rollout TA
from RIAs at LGU level were mostly implemented was already in mid-implementation when results
because they required passage of local ordinances of the impact evaluation from the At-Risk Youth
falling within the purview of the LGUs. TA were released. Consequently, these were not
effectively fed back into the scale-up.
Lesson 5. Processes need to be simplified to
minimize inefficiencies in scaling up pilots. Follow-Up Action 2. Institutionalization of the life
Documentation and reporting requirements for skills training (LST) module should be promoted
training participation were viewed as burdensome to maximize the impact and sustainability of the
and presented a barrier to entering ADB’s TA JobStart TA projects. LST was repeatedly
projects. This discouraged potential employers mentioned by various stakeholders as being the
and caused them to withdraw their interest from most effective and innovative component of JSP.
the program. This was especially true for small Although technical training and on-the-job
and medium-sized enterprises employers who training are not without merit, JSP is one of many
lacked dedicated personnel in their finance and programs in PESOs that offer such technical
human resource departments. Although training. Inasmuch as LST is a unique innovation
executing agencies and ADB might have been able introduced within the JSP, however, it runs the
to support and push a few dozen beneficiaries highest risk of being discontinued beyond the TA
through for the pilot, one cannot expect large- project cycle. The risk can be mitigated if the LST
scale rollout to succeed without first streamlining module is adopted by government agencies, such
procedures and requirements for the beneficiaries as DOLE, and carried on by developing a localized
and implementing partners. LST module, spearheading the regular update and
revision of LST training manuals, hosting and
Lesson 6. Concerted effort is needed to raise implementing the training of trainers programs,
public awareness concerning key innovations in ensuring quality control of LST programs, and
skills development projects. Advocacy and acquiring funding to roll out the LST at a truly
information dissemination campaigns should nationwide scale.
have been included in the TA project design.
Map
CHAPTER 1
Introduction
1. Since 2012, the Asian Development Bank (ADB) has approved four technical assistance (TA)
projects in job creation and skills development with the common goal of providing better employment
opportunities for Filipino youth as part of an overall effort to reduce poverty and economic vulnerability
of the non-poor to external shock. This Chapter outlines the purpose and process of the independent
evaluation and summarizes each TA project’s expected impact, outcomes, and outputs.

A. Evaluation Purpose and Process

1. Purpose. This TA performance evaluation report (TPER) examines ADB’s support to the Philippine
government’s intervention for skills development and job creation. It is intended to contribute to learning
and accountability, as well as to improving project design and effectiveness in country and sector
operations within ADB. The evaluation assessed the projects (i) Strengthening Knowledge-Based
Economic and Social Development, 1 (ii) Improving Competitiveness in Tourism, 2 (iii) Employment
Facilitation for Inclusive Growth, 3 and (iv) Support for Nationwide Rollout of JobStart Philippines
(ongoing).4 These TA projects were selected to examine how ADB recently has used such projects to
support skills development and employment in responding to the development need of providing better
employment for Filipinos, particularly the youth.

2. Objective. The overall objective of the evaluation was to assess how ADB’s support contributed
to enhancing the country’s economic capacity at national and provincial levels through skills development
and job creation projects. Specifically, it examined progress on related issues, including the extent and
sustainability of outcomes, ownership, and institutional capacity development for accrued impact and
outputs. The evaluation was based on the overarching question identified in the evaluation approach
paper: What are the limits and potential of a series of capacity development TA projects in developing
the necessary skills and creating jobs in the Philippines?

3. Scope. The TPER assesses the TA formulation, design, implementation, achievements,


sustainability, and development impacts. Specifically, it (i) assesses the TA relevance, effectiveness, and
efficiency in achieving its objectives and outputs, sustainability of its outcomes and outputs, institutional
development, and socioeconomic impacts; (ii) assesses the performance of ADB, executing and
implementing agencies, and other participating institutions; and (iii) identifies issues and lessons for
future ADB operations in this area.

4. Methodology. The TPER evaluates the TA in accordance with guidelines for evaluating public
sector operations using the evaluation criteria of relevance, effectiveness, efficiency, and sustainability. 5
The TPER made use of primary and secondary data and included (i) a desk review of relevant information

1
ADB. 2012. Technical Assistance to the Republic of the Philippines for Strengthening Knowledge-Based Economic and Social
Development. Manila.
2
ADB. 2013. Technical Assistance to the Republic of the Philippines for Improving Competitiveness in Tourism. Manila.
3
ADB. 2013. Technical Assistance to the Republic of the Philippines for Employment Facilitation for Inclusive Growth. Manila.
4
ADB. 2015. Technical Assistance to the Republic of the Philippines for Support for the Nationwide Rollout of JobStart Philippines.
Manila.
5
Independent Evaluation Department (IED). 2016. Guidelines for the Evaluation of Public Sector Operations. Manila: ADB.
2 Job Creation and Skills Development in the Philippines

concerning the TA; (ii) consultations with the project team at ADB headquarters and in the Philippines
Country Office, development partners, and other stakeholders; and (iii) consultations with government
and implementing agencies and other beneficiaries. As part of the independent evaluation mission, field
visits and focus group discussions (FGDs) were conducted in 13 locations in the Philippines from
December 2019 to February 2020 to gather the views of implementing agencies and beneficiaries in the
National Capital Region, Cavite, Pampanga, and as far as Bohol, Cebu, Davao, and Palawan. Forty-eight
FGDs were conducted, with 214 participants providing their views and information on the TA projects
(Appendix 1).

B. Technical Assistance Objectives


5. The four capacity development TA projects were formulated to support the government’s efforts
toward achieving inclusive growth at a sustained high rate while contributing to mass employment and
reducing poverty. Of the four TA projects, three were designed to support policy-based loans and one
was stand-alone.

6. Strengthening Knowledge-Based Economic and Social Development (information technology


and business process outsourcing [IT-BPO] TA). This TA was a stand-alone project developed to address
skills shortages within high-growth industries in the Philippines. Even though IT-BPO was the fastest
growing employment sector, the supply of high-quality labor had not kept up with demand. To help in
addressing this gap, the TA sought to achieve a replicable and sustainable system of information and
communication technology (ICT) knowledge hubs developed for improved teaching and learning of IT-
BPO industry-designed curricula in higher education institutions (HEIs). It aimed to align higher education
curricula with international standards and labor market demand while building on public and private
initiatives. The TA was focused on helping Filipino youths while strengthening partnerships between
industry and academic institutions.

7. Improving Competitiveness in Tourism (Tourism TA). This TA was attached to the policy loan on
Increasing Competitiveness for Inclusive Growth Program. 6 Philippine tourism had lagged against
neighbors such as Indonesia, Malaysia, and Thailand in terms of tourist arrivals and revenues. One reason
was deemed to be that the skills of youth and graduates entering the industry did not match the skills
required as a result of the industry’s standards being outdated and poorly implemented. In view of these
needs, the TA was designed to improve competitiveness in tourism by increasing employment in the
industry as one critical channel for inclusive, broad-based growth in the Philippines. To do so, the TA
supported implementation of a regulatory impact assessment (RIA) program, a hotel and resort quality
assurance and accreditation system, and a tourism industry skills program.

8. Employment Facilitation for Inclusive Growth (At-Risk Youth TA). This TA was also attached to
the policy loan on Increasing Competitiveness for Inclusive Growth Program (footnote 6). The TA was
envisaged to contribute to the employability of at-risk youths by improving the employment facilitation
systems to mitigate the difficulty high school graduates and dropouts were experiencing when entering
the labor market. It was designed to boost job creation by building capacity in labor market policy
development; improving delivery of employment services for at-risk youths; 7 and supporting
implementation of the pilot phase of JobStart, which assisted high school graduates seeking
employment.

6
ADB. 2012. Report and Recommendation of the President to the Board of Directors: Policy-Based Loan to the Republic of the
Philippines for Subprogram 1: Increasing Competitiveness for Inclusive Growth Program. Manila; and ADB. 2014. Report and
Recommendation of the President to the Board of Directors: Policy-Based Loan to the Republic of the Philippines for Subprogram
2: Increasing Competitiveness for Inclusive Growth Program. Manila.
7
At-risk youth are defined as those who are (i) Filipino citizens; (ii) 18–24 years of age at the time of registration; (iii) at least high
school graduates; (iv) not employed, studying, or undergoing training at the time of registration; and (v) with less than 1 year
of work experience. JobStart was initially called MyFirstJob during the pilot phase.
Introduction 3
9. Support for the Nationwide Rollout of JobStart Philippines (JobStart Rollout TA). This TA was
designed to continue building on the results and lessons learned from the preceding pilot included in the
At-Risk Youth TA. It supported the nationwide rollout of JobStart Philippines (JSP), which aimed to
implement the program in 64 local government units (LGUs) and targeted more than 64,000 out-of-
school youths. Twenty-four of these LGUs and 15,000 beneficiaries would be supported by the TA. The
TA supported the policy-based loan for Facilitating Youth School-to-Work Transition Program and is
currently ongoing.8

10. Table 1 summarizes the intended impact, outcome, and outputs of the ADB TA projects
supporting job creation and skills development in the Philippines. Appendix 2 provides details of the
design and monitoring framework (DMF) for each of the TA projects.

Table 1: Intended Impact, Outcomes, and Outputs of Technical Assistance Projects


Strengthening Improving Employment Facilitation Support for the
Knowledge-Based Competitiveness in for Inclusive Growth Nationwide Rollout of
Economic and Social Tourism (TA 8335) JobStart Philippines
Development (TA 8334) (TA 8984)
(TA 8164)
Improved alignment of Increased employment in Enhanced employability Enhanced employability
higher education programs the tourism industry of at-risk youths of at-risk youths
Impact

with needs of the economy


(specifically the IT-BPO
industry)
Establishment of replicable Improved Improved capacity of Effective JSP rollout by
Outcome

and sustainable knowledge competitiveness of PESOs to provide DOLE and PESOs


hubs for the instruction of Philippine tourism employment services to
IT-BPO industry-designed at-risk youths
curricula in HEIs
• Access to knowledge • Regulatory impact • Capacity for labor • Capacity development
resources for teaching assessment program policy analysis and of JSP units at DOLE
and learning IT-BPO implemented formulation headquarters and
industry-designed • Hotel and resort quality strengthened regional DOLE offices
courses increased assurance and • MyFirstJob (JSP) pilot strengthened
Output

• Higher education accreditation system project implemented • Life skills training


curricula and instruction implemented in four curriculum rolled out
enhanced regions nationally
• Partnerships between • Tourism industry skills • Capacity of 24 PESOs in
industry and academic development program JSP implementation
institutions strengthened developed and piloted developed
in four regions
DOLE = Department of Labor and Employment, HEI = higher education institution, IT-BPO = information technology and business
process outsourcing, JSP = JobStart Philippines, PESO = Public Employment Service Office, TA = technical assistance.
Source: Asian Development Bank.

C. Technical Assistance Completion Reports


11. Of the four TA projects, two were self-rated successful, one was self-rated less than successful,
and the fourth is ongoing. Key findings from TA completion reports (TCRs) for the three completed
projects are as follows:

(i) IT-BPO TA. The TCR rated the TA less than successful due to missed performance targets.
During the independent evaluation, a lack of mid-implementation assessment on the
relevance of DMF indicators, along with inadequate documentation on whether and how

8
ADB. 2017. Report and Recommendation of the President to the Board of Directors: Proposed Programmatic Approach and
Policy Loan for Subprogram 1 to the Republic of the Philippines on Facilitating Youth School-to-Work Transition Program. Manila.
4 Job Creation and Skills Development in the Philippines

these were achieved, made it difficult to verify the TA’s actual performance. The TCR
stated that the TA was challenged by limited human resources and low student demand
for business process outsourcing (BPO)-related courses. TA oversight and monitoring
were evidently weak, as the consultants relied heavily on their understanding of activities
and ADB relied heavily on the capacity of the consultants. Despite this, the TCR claimed
that the TA contributed to online IT-BPO industry-developed course offerings and opened
opportunities for strengthening partnerships between HEIs and industry. As such, the
TCR assessed the TA’s outputs as likely sustainable because strong frameworks had been
put in place to allow regular updating of courses and to solicit continued input from
local industry partners.
(ii) Tourism TA. The TCR rated the TA successful overall, relevant due to its alignment with
the priorities outlined in the National Tourism Development Plan, and also effective as
results achieved under the respective outputs areas contributed to the outcome of
improved competitiveness in the tourism sector. The TA’s support to the Department of
Tourism (DOT) on its RIA program assisted in improving regulations that reduced
regulatory compliance costs for tourism businesses. The implementation of a tourism
enterprise skills survey helped DOT identify key skills deficiencies and provided it with a
model to prioritize skills shortages through detailed labor market analysis in the sector.
The DOT national accommodation standards were piloted in 141 establishments. The
post-pilot review confirmed DOT standards to be robust and practical. It was rated
efficient, as the TA adhered to timely implementation and achievement of intended
outcomes. The TA funding was not fully utilized however, due to ring-fencing of funds
to cover for foreign exchange risk. The TA was rated most likely sustainable, as the
government of the Philippines took over funding of certain components of the program
and thereby demonstrated its long-term commitment in the sector.9
(iii) At-Risk Youth TA. This TA was also rated successful by the TCR. It was relevant based on
the TA’s alignment with the Department of Labor and Employment’s (DOLE) priorities,
country development priorities, and ADB strategies and policies at time of formulation
and completion, and effective as it achieved its performance indicators on support to
DOLE on developing RIA, labor policy review, and increased use of labor market
information. The pilot phase of JSP was successfully completed and expanded to cover
10 additional Public Employment Service Offices (PESOs). The significant progress
achieved under the JSP pilot led to a DOLE agreement for a national rollout of the JSP. It
was rated efficient, as changes made to program design and implementation were minor
and in response to additional resources required for the planned expansion of JobStart.
The TA was responsive to the needs of the government and the TA implementation unit
played an active role in sustaining momentum for implementation. Nevertheless, the TA
funding was not fully utilized due to ring-fencing of funds to cover for foreign exchange
risk. The TA was rated most likely sustainable as evidenced by the government of the
Philippines’ commitment to institutionalize the JSP in 2016 through enactment of the JSP
Bill and securing government funding.

9
DOT’s campaign resulted in $2 million being allocated by Department of Budget Management for national rollout and was
critical in ensuring sustained investments in skills development within the tourism sector.
CHAPTER 2
Design and Implementation
A. Rationale
12. Background and context. The four TA projects were aimed at developing systems and capacities
that would facilitate job placement in the IT-BPO industry, in the tourism industry, and specifically for
“at-risk” youth. These projects were formulated at a time when the Philippine economy needed to achieve
more inclusive growth, as it was experiencing average annual growth of 6.3%,10 and poverty incidence
was declining (from 26.6% in 2006 to 21.6% in 2015).11 This growth had contributed to substantial
decline in the unemployment rate from 11.8% in 2014 to 5.3% in 2018. Despite these improvements,
the poverty rate translated into 22 million poor people, which was still considered quite high for a middle-
income country,12 and wide income disparities were prevalent across the country. Some regions of the
Visayas and Mindanao were registering poverty rates of more than 33%. 13 Furthermore, income
inequality in the Philippines was greater than in its Southeast Asian counterparts, implying that the
benefits of economic growth were unevenly distributed.14 The government was pursuing a policy of
inclusive growth to address the failure of economic growth to benefit much of the country’s population.15

13. Project rationale. As part of The Philippine Development Plan (PDP), 2011−2016, the government
identified three broad strategies aimed at achieving inclusive growth: (i) attaining high, sustained
economic growth through a stable macroeconomic environment, rapid growth of industry, investments
in infrastructure, and curbing corruption and enforcing the rule of law; (ii) providing equal access to
development opportunities by investing in human capital, especially in education, health, and other basic
social services, and by leveling the playing field through improving access to infrastructure, credit, land,
technology, and other productive inputs; and (iii) formulating effective social safety nets to ensure both
the protection and promotion of extremely vulnerable groups (Figure 1). Meanwhile, ADB’s partnership
with the Philippines was based on the intersection of PDP priorities with Strategy 2020 and its key
objective of helping the Philippines achieve high, inclusive, and sustainable growth. While focusing on
infrastructure, environment, and education, ADB continued its approach of combining policy-based
lending with capacity development to support broader governance reforms while gradually expanding
sector-level policy and investment lending. The four TA projects aimed at supporting the PDP’s goal of
“increased productivity and efficiency” by intensifying the culture of competitiveness and focusing
interventions in key industry areas (such as IT-BPO and tourism) while being a part of ADB’s push to
increase testing of innovative and knowledge solutions and drawing on ADB’s position to identify and

10
During 2010–2018, economic growth averaged 6.3% per annum, a substantial increase from the 4.5% average annual growth
recorded during 2000–2009.
11
Government of the Philippines. Philippine Statistics Authority. 2016. 2015 Official Poverty Statistics of the Philippines . Quezon
City.
12
ADB. 2018. Country Partnership Strategy: Philippines, 2018–2023 – High and Inclusive Growth. Manila.
13
ADB. 2009. Poverty in the Philippines: Causes, Constraints, and Opportunities. Manila.
14
According to World Bank Development Indicators, the Philippine Gini coefficient declined from 0.46 in 2012 to 0.44 in 2015.
Gini coefficients were nevertheless lower for Indonesia (0.39), Viet Nam (0.38), Cambodia (0.31), and the Lao People’s Democratic
Republic (0.38).
15
Key outputs of the said policy are the Philippine Development Plan (PDP), 2011–2016 and PDP, 2017–2022. The former
emphasized high growth that is sustained, massively creates jobs, and reduces poverty, while aiming to achieve these through
massive investment in physical infrastructure, transparent and responsive governance, human resource development, and
employment generation. In the succeeding PDP, 2017–2022, the government sought to lay a stronger foundation for more
inclusive growth, a high-trust and resilient society, and a globally competitive knowledge economy. It intended to make growth
more inclusive by reducing poverty incidence in the rural areas, creating more jobs, making individuals and communities more
resilient, driving innovation, and building greater trust in government and society.
6 Job Creation and Skills Development in the Philippines

influence trends in Asia and the Pacific region, its capacity for interdisciplinary and integrated
approaches, its ability to blend knowledge with development finance, and its capacity to facilitate
knowledge exchange and cooperation among developing countries in the region.

Figure 1. Philippine Development Plan Strategic Framework for Industry and Services

Source: Philippine Development Plan, 2011–2016.


Performance Assessment 7
(i) IT-BPO TA: Shortage of high-quality labor in the sector. In the mid-2000s, IT-BPO was the
fastest-growing employment sector and ranked high for generating revenue,16 as IT-BPO
accounted for 34.5% of annual employment growth and 37.9% of revenues growth from
2004 to 2009. 17 Revenues reached $8.9 billion in 2010, and 638,000 workers were
employed in the IT-BPO sector by end of 2011. By 2016, the industry was expected to
generate revenues of more than $20 billion while providing 1.3 million jobs. Such outlook
for the IT-BPO sector increased the demand for high-quality workforce, which exceeded
the supply despite a steady influx of tertiary graduates into the IT-BPO sector. The
country’s educational institutions were unable to provide sufficient numbers of suitable
graduates to meet the rapidly growing labor demand of the IT-BPO industry. The IT-BPO
TA was formulated to counteract the widening talent-supply gap that was being
exacerbated by weak university–industry linkages and higher education programs. By
introducing an innovative, higher education program to ensure that appropriate skills
were sustainably developed, the TA sought to strengthen the country’s educational
system and make it relevant to the country’s comparative advantage in the IT-BPO sector.
(ii) Tourism TA: Skills mismatch and outdated standards in tourism industry. More than 3.7
million people were working in the Philippines tourism industry as of 2011, most of
whom were living outside the main urban centers.18 Nevertheless, the number of foreign
tourists visiting the Philippines in 2010 (3.5 million) was dwarfed by the numbers for
Malaysia (20 million), Thailand (16 million), and Indonesia (5 million). The 2011 World
Economic Travel and Tourism competitiveness index had ranked the Philippines 94th of
139 countries due to its poor regulatory framework, business environment, tourism
infrastructure, and service standards. The industry was beset by problems of low service
standards, skills mismatch of new employees, and an outdated hotel and resorts
assurance rating system that had been poorly implemented. Vocational training curricula
in the tourism industry were not regularly updated to keep pace with changing
international standards and practices. The Tourism TA was formulated to improve
competitiveness of the Philippines’ tourism sector, develop the skills of the industry’s
labor force, and increase employment.
(iii) At-Risk Youth TA and JobStart Rollout TA: Slow school-to-work transition among youth.
In 2008, unemployment among the youth (15 to 24 years old) was estimated at 21% and
accounted for 50% of all estimated unemployed persons in the Philippines.19 A 2012
study conducted by ADB on the youth labor market found that high school graduates
and dropouts had difficulty integrating into the labor market and that it took an average
of 4 years for a high school graduate to find a permanent wage job compared to 2 years
for college graduates.20 Frequent and extended periods outside the labor market without
training further damaged the future career and employment prospects of young people,
and this could perpetuate a lifetime of poverty for those from poor households. In this
context, the At-Risk Youth TA was formulated to help the DOLE improve the
government’s employment facilitation systems by improving the capacity of PESOs and
enhancing the employability of at-risk youths. The TA helped achieve policy actions on
implementing a regulatory review of the labor code, capacity development for the
institutionalized PESOs, and pilot implementation of JobStart in four LGUs through the
PESOs. The JobStart Rollout TA followed to build upon the gains from the pilot-testing

16
IT-BPO refers to the whole outsourcing industry in the Philippines and includes IT and engineering services outsourcing. BPO
refers to customer service (voice and non-voice), finance and accounting, human resources, transcription, legal processes, health
care information management, other knowledge process outsourcing, and other services not under IT or engineering services
outsourcing.
17
Government of the Philippines. Commission on Information and Communications Technology. 2010. The Philippine Digital
Strategy-Transformation 2.0: Digitally Empowered Nation. Manila.
18
Government of the Philippines. Department of Tourism. 2011. Philippine National Tourism Development Plan 2011–2016.
Manila.
19
Philippines Household Labor Force Survey, 2003–2008.
20
K. Bird. 2012. Are Filipino Youth Off to a Good Start? Youth Labor Market Experience in the Philippines. ADB. Manila.
8 Job Creation and Skills Development in the Philippines

of JobStart in the At-Risk Youth TA and to set up the institutional structure for the
national rollout of the JSP.

D. Cost and Financing


14. Table 2 provides details on the approved and disbursed funding amounts and the sources for
financing the four TA projects. Of the four, the IT-BPO TA was co-funded by the e-Asia Knowledge
Partnership Fund, and the other three by the Canadian International Development Agency.

Table 2: Amount and Funding Source of the Technical Assistance Projects


Approved Budget ADB Funding Cofinancing Cofinancing
Amount Disbursed Amount Amount Agency
Technical Assistance ($) ($) ($) ($) (country)
Strengthening Knowledge-Based 500,000 385,012 0 500,000 EAKPF (Republic
Economic and Social Development of Korea)
Improving Competitiveness in 7,116,900 5,915,142 0 7,116,900 CIDA
Tourism (Canada)
Employment Facilitation for 5,661,900 4,789,220 70,000 5,591,900 CIDA
Inclusive Growth (Canada)
Support for the Nationwide Rollout 8,800,000 5,200,909 1,300.00 7,500,000 CIDA
of JobStart Philippines (ongoing) (Canada)
ADB = Asian Development Bank, CIDA = Canadian International Development Agency, EAKPF = e-Asia Knowledge Partnership Fund.
Source: Asian Development Bank.

E. Executing Arrangements
15. IT-BPO TA. The Department of Finance (DOF) was executing agency for the TA. Chaired by DOF,
the steering committee was comprised of representatives from the Commission on Higher Education,
National Economic and Development Authority, and representatives from industry and academia. The
implementing agencies were the IT & Business Process Association of the Philippines (IBPAP), the
University of the Philippines Open University (UPOU), and the Asian Institute of Management (AIM). IBPAP
was given the task of managing overall implementation of the TA, UPOU designed and deployed e-
learning products for industry-designed courses in HEIs, and AIM was tasked with leading the TA
knowledge components.

16. Tourism TA. The DOT was executing agency for the TA, and, as such, the project implementation
unit was established at DOT and funded by the TA. The implementation unit was responsible for
coordinating TA activities, overall administrative tasks, project monitoring, and providing support to the
project steering committee and the national and four regional tourism skills project committees. The
steering committee, chaired by DOT, provided oversight functions. There were subcommittees reporting
to the steering committee as follows: (i) DOT’s RIA steering committee, responsible for implementing the
regulatory review and reform program; (ii) DOT’s Division of Accreditation and Regulation, responsible
for implementation of the hotel and resort accreditation pilot program; and (iii) the national tourism
skills project committee, responsible for implementing the skills development program and skills grant
scheme.

17. At-Risk Youth TA and JobStart Rollout TA. DOLE was executing agency for the TA. A project
implementation unit was established within DOLE’s Institute for Labor Studies (ILS) to oversee
implementation of the output on strengthening capacity for labor policy analysis and formulation, while
another project implementation unit in DOLE’s Bureau of Local Employment (BLE) oversaw
implementation of the JobStart pilot. The LGUs through their PESOs in the pilot areas were the
implementing agencies. In the follow-up TA, DOLE-BLE and the PESOs maintained their respective roles
as executing and implementing agencies.
Performance Assessment 9

F. Consultants
18. IT-BPO TA. The TA required 5 person-months of international consulting services and 56 person-
months of national consulting services. The IBPAP, UPOU, and AIM were engaged as consultants using
single-source selection in accordance with the ADB Guidelines on the Use of Consultants (2013, as
amended from time to time). ADB approved minor changes to the consulting service requirements of
these agencies to allow for more realistic implementation arrangements, such as adjusted person-months
and different expert specialization. Of the 14 expected person-months allocated to AIM (7 person-months
international and 7 person-months national), only 2 international person-months and 3 national person-
months were completed. An additional 28 person-months of national input was added to IBPAP from
the original 12 person-months, mainly due to responsibilities that were transferred to it from AIM. UPOU
was able to complete its consultations within the 25 person-months allocation of national inputs.

19. Tourism TA. The University of Queensland was contracted to implement the project, with a team
of 21 persons comprised of both international and national consultants. The TA planned for 114 person-
months of international inputs and 269 person-months of national inputs. The consulting team worked
well together and coordinately closely with DOT. It mostly conformed to the planned consultation, as the
team utilized 116 person-months of international inputs and 232 person-months of national inputs.

20. At-Risk Youth TA. To support DOLE-ILS in strengthening the capacity for labor policy analysis and
formulation, 8 international consultants (40 person-months) and 3 national consultants (42 person-
months) were planned for engagement. Meanwhile, 5 international consultants (53 person-months) and
7 national consultants (92 person-months) were planned to support DOLE-BLE in implementing the
JobStart pilot. Of the total 227 planned person-months for both outputs, 185 were utilized (91
international and 94 national). Only one international labor policy expert and two national consultants
were engaged to support DOLE-ILS, while Scope Global Pty Ltd. was engaged to work with DOLE-BLE.

21. JobStart Rollout TA. Scope Global Pty Ltd. was recruited to ensure continuity in policy advice and
capacity in transition from the pilot in the At-Risk Youth TA to the nationwide rollout of JSP. It was
envisaged to engage 2 international experts (15 person-months each) and 19 national specialists (total
of 265 person-months). The plan was to have five project coordinators based in the National Capital
Region and another nine project coordinators stationed in the rest of the country.

G. Scheduling
22. The first three TA projects took around 4 years to complete (Table 3), while the JobStart Rollout
TA is expected to take more than 5 years. The IT-BPO TA was extended by 1 year to accommodate
additional activities needed to complete full e-service and management program courses and to ensure
sustainability of activities. The Tourism TA was extended by 6 months to help DOT draft a concept paper
to support nationwide rollout of the skills grant program that had been piloted under the TA. The At-
Risk Youth TA was extended by 6 months to finalize preparations for the follow-up JobStart Rollout TA.

Table 3: Summary Schedule of Technical Assistance Projects


Original Revised Length of
Approval Effective Completion Completion Completion
Technical Assistance Date Date Date Date Extension
Strengthening Knowledge-Based
Economic and Social Development 14 Sep 2012 18 Oct 2012 15 Oct 2015 15 Oct 2016 +12 months
Improving Competitiveness
in Tourism 5 Mar 2013 15 Apr 2013 28 Feb 2017 31 Aug 2017 +6 months
Employment Facilitation for
Inclusive Growth 5 Mar 2013 15 May 2013 28 Feb 2017 31 Aug 2017 +6 months
10 Job Creation and Skills Development in the Philippines

Original Revised Length of


Approval Effective Completion Completion Completion
Technical Assistance Date Date Date Date Extension
Support for the Nationwide
Rollout of JobStart Philippines 30 Oct 2015 21 Jan 2016 31 Dec 2020 ongoing ongoing
Source: Asian Development Bank.

H. Design Changes
23. The three completed TA projects had minor changes in design during implementation. For the
IT-BPO TA, changes were in the consulting service requirements and an extension of 12 months to
complete the remaining activities. For the Tourism TA, changes included the addition of an international
labor market and skills forecaster, a human resource strategist, and an evaluation expert, as well as
engagement of a public relations firm and a national firm to conduct a visitors’ satisfaction survey. For
the At-Risk Youth TA, changes included an increase in inputs of the international employment expert and
of project coordinators to advise on the rollout process, shortening of the technical training offered by
employers, and redevelopment of the life skills training (LST) program in response to disparities in the
quality of content developed by providers.
CHAPTER 3

Performance Assessment
24. This Chapter assesses each TA project’s performance based on four core criteria: (i) relevance to
the development strategies of the government and ADB, and relevance to achieving the envisaged
objectives; (ii) effectiveness of outcomes and outputs; (iii) efficiency of the utilization of resources; and
(iv) sustainability of outcomes and outputs.

A. Relevance
25. The three TCRs rated the TA projects relevant except for the IT-BPO TA which was found to be
less than relevant. Although that TA was strategically aligned with the government’s development
priorities and constituted a timely response to the key development issues confronting the IT-BPO
industry, the design was not conducive to achieving the objective. That is because there were significant
deficiencies that affected the delivery of targeted outputs and the intended outcome. The other TA
projects were strategically aligned with the country’s development priorities and ADB’s strategies,
appropriately addressed the key issues and constraints identified, were well-designed to achieve the
expected outcomes, incorporated innovative features that were responsive to the identified development
issues, and eventually were scaled up. Based on assessments in the following paragraphs, the TPER
assessed the TA projects’ relevance as shown in Table 4.

Table 4: Relevance Ratings of the Job Creation and Skills Development TA Projects
Relevance Evaluation Subcriteria
Support Relevance
Strategic for Policy Innovations in Rating for
Technical Assistance Alignment Reforms Project Design TA Design each TA
Strengthening Knowledge- Not appropriate, E-learning was too
Based Economic and Social Fully Did not given the lack of ambitious in both Less than
Development aligned support IT-BPO leadership scope and execution relevant
Improving Empowering
Competitiveness in Fully Strongly employers aided
Tourism aligned supported Appropriate sustainability Relevant
Appropriate, but Packaging of LST and
Employment Facilitation Fully Strongly better integration career guidance
for Inclusive Growth aligned supported needed (i.e., RIA) raised employability Relevant
Support for the Appropriate, but Various pathways
Nationwide Rollout of Fully Strongly stronger M&E within JSP ensured
JobStart Philippines aligned supported needed for rollout flexibility for youths Relevant
IT-BPO = information technology and business process outsourcing, JSP = JobStart Philippines, LST = life skills training, M&E =
monitoring and evaluation, RIA = regulatory impact assessment, TA = technical assistance.
Source: Independent Evaluation Department.

26. Strategic Alignment. All four TA projects were strategically aligned with the government’s
development priorities identified in the PDP, 2011−2016, which emphasized sustained high and inclusive
growth, massive jobs creation, and poverty reduction. Based on the priorities identified in the PDP, ADB’s
assistance was well positioned in the IT-BPO sector, tourism industry, and youth employment subsector
as follows:
12 Job Creation and Skills Development in the Philippines

(i) IT-BPO TA. The TA aligned well with the government’s priorities, as IT-BPO had been
identified in the PDP as among the 10 priority development sectors with the highest
potential for promoting economic growth and job creation. It was also fully aligned with
the government’s knowledge strategy and program and ADB’s knowledge management
plan. 21 The TA’s push to match higher education programs to labor market demand
reflected the strategic priorities of ADB’s Education Sector Operations Plan for
strengthening postsecondary education. 22 The TA also aligned with ADB’s Country
Partnership Strategy (CPS) for the Philippines, which sought high, inclusive, and
sustainable growth for the country.23
(ii) Tourism TA. The TA was in line with PDP, 2011–2106, which pinpointed the tourism
sector for long-term development based on sector performance, job creation possibilities,
and potential positive spillover effects to other sectors. The TA was aligned with the
priorities outlined in the Philippine government’s National Tourism Development Plan,
2011−2016 that included adopting a framework for hotel and resort quality assurance,
tourism industry skills development, and regulatory review of the industry. 24 The TA was
also included in ADB’s Country Operations Business Plan (COBP,) 2013−2015 for the
Philippines.25
(iii) At-Risk Youth TA. The TA was aligned with PDP, 2011−2016, which promoted job
creation as a central theme of the country’s economic program and had set an ambitious
goal to create 1 million jobs per year in order to maintain the unemployment rate within
the range of 6.8% to 7.2%. The TA was included in ADB’s COBP, 2013–2105 for the
Philippines, which specified support to the government’s thrust for inclusive growth,
while also being aligned with ADB’s CPS, 2011−2016.
(iv) JobStart Rollout TA. The TA was consistent with both PDP, 2011−2016 and its successor,
PDP, 2017−2022. The latter emphasized accelerated human capital development as
critical for making growth inclusive and reducing poverty and income inequality. The
government’s blueprint for job creation prioritizes entrepreneurship, reducing youth
unemployment, education, and training, while aiming to create 7.5 million jobs in key
job-generating sectors. The TA was aligned with ADB’s CPS, 2018–2023 for the
Philippines that supported policy reform, institutional capacity development, and
financing investments that promote high and inclusive growth.26 It was consistent with
ADB’s Strategy 2030 that seeks to address remaining poverty and reduce inequality as
one of the strategy’s seven priorities.27

27. Support for policy reforms. Except for the IT-BPO TA, all TA projects supported policy reforms to
improve competitiveness for inclusive growth and facilitating youth employment. Specifically, the
Tourism TA and At-Risk Youth TA were associated with ADB’s programmatic approach and policy-based
loan to the Philippine government on Increasing Competitiveness for Inclusive Growth, 28 while the
JobStart Rollout TA was also linked to another programmatic approach and policy-based loan, the

21
ADB. 2012. Country Operations Business Plan: Philippines 2013−2015 . Manila (Supplementary Document: Knowledge Strategy
and Program, 2013−2015).
22
ADB. 2010. Education by 2020: A Sector Operations Plan. Manila.
23
ADB. 2011. Country Partnership Strategy: Philippines 2011−2016. Manila.
24
Government of the Philippines. Department of Tourism. 2011. Philippine National Tourism Development Plan, 2011−2016.
Manila.
25
ADB. 2012. Country Operations Business Plan: Philippines, 2013−2015. Manila.
26
ADB. 2018. Country Partnership Strategy Philippines, 2018−2023 – High and Inclusive Growth. Manila.
27
ADB. 2018. Strategy 2030: Achieving a Prosperous, Inclusive, Resilient and Sustainable Asia and the Pacific. Manila.
28
ADB. 2012. Report and Recommendation of the President to the Board of Directors: Proposed Programmatic Approach and
Policy-Based Loan for Subprogram 1 to the Republic of the Philippines for Increasing Competitiveness for Inclusive Growth
Program. Manila; and ADB. 2014. Report and Recommendation of the President to the Board of Directors: Proposed Policy-Based
Loan for Subprogram 2 to the Republic of the Philippines for Increasing Competitiveness for Inclusive Growth Program. Manila.
Performance Assessment 13

Facilitating Youth School-to-Work Transition Program. 29 Overall, the three TA projects contributed
significantly to the government’s broader policy reforms to improve competitiveness in tourism and
facilitate youth employment—mainly through the regulatory frameworks established by the RIAs, the
quality assurance system adopted for the tourism industry, and the skills developed to facilitate
employment.

Box 1. International good practices on anticipating future skills needs and stimulating growth

• Ireland: The Expert Group on Future Skill Needs (EGFSN) analyses future skill needs and develops proposals
for how to meet them through a broad membership that includes business representatives, educationalists,
trade unionists, and policymakers. The breadth of participation enables EGFSN to identify changing
occupational profiles within sectors and the demand for different occupations. EGFSN identified the key
elements to be included in a generic skills portfolio for the future: basic or fundamental skills (literacy,
numeracy, information and communication technology); people-related skills (communication, team-
working); and conceptual and thinking skills (collecting and organizing information, problem-solving,
planning and organizing, learning to learn, innovation and creative skills). It provides advice on how to
improve job-seekers’ awareness of sectors where skills are in demand and the qualifications required.
• Brazil: The wide replication of Brazil’s National Service for Industrial Training (SENAI) is a good measure of
success. SENAI is run by an association of industries, funded by a levy on the industrial payroll, and has sister
institutions serving various sectors (agriculture, small enterprise, service sector, etc.). SENAI’s “Prospecting
Model” adjusts training provision based on analysis of take-up rates for emerging technologies and new
forms of work organization. The model generates estimates of job requirements over a 5-year period based
on studies of technological and organization prospecting, tracking of emerging occupations, and monitoring
demand trends for vocational training. However, the proportion of young people able to take advantage of
training opportunities is limited by the quality of basic education.
• Republic of Korea: At the core of the country’s sustained growth pattern lies a government-led skills
development strategy. The rapid progress in closing the productivity gap reflected an economic development
strategy based on investment and on research and development. Investment in a well-educated and highly
skilled workforce was an integral part of encouraging the adoption of new technologies. A current challenge
is to avert shortages in the higher-end vocational occupations by increasing the attractiveness of
nonacademic skills-development paths.

Source: International Labour Organization. 2010. A Skilled Workforce for Strong, Sustainable and Balanced Growth: A G20
Training Strategy. Geneva.

28. Project design. The TA designs were generally appropriate for achieving the intended outputs
and outcomes, except in the case of the IT-BPO TA.

(i) IT-BPO TA. The TA addressed the skills shortage in the IT-BPO sector by helping align
higher education curricula with international standards and labor market demand while
building on public and private initiatives. The TA sought to increase access to industry-
designed courses on IT-BPO outsourcing and strengthen partnerships with industry and
academic institutions. The TA design, aimed at strengthening the higher education
system by introducing an innovative and creative program, was relevant to the country’s
competitive advantage in the IT-BPO industry but encountered shortcomings during
actual implementation. First, as there were no existing government agencies that could
lead the capacity development of IT-BPO during TA formulation, DOF was selected by
default as executing agency, despite lacking the public mandate and technical expertise
to oversee the sector. As DOF and the project steering committee that it chaired did little
to provide guidance and coordination needed for the three implementing agencies to
work in synergy, this left a vacuum wherein IBPAP had to step in, in an ad-hoc manner.

29
ADB. 2017. Report and Recommendation of the President to the Board of Directors: Proposed Programmatic Approach and
Policy-Based Loan for Subprogram 1 Republic of the Philippines: Facilitating Youth School-to-Work Transition Program. Manila;
and ADB. 2019. Report and Recommendation of the President to the Board of Directors: Proposed Programmatic Approach and
Policy-Based Loan for Subprogram 2 Republic of the Philippines: Facilitating Youth School-to-Work Transition Program. Manila.
14 Job Creation and Skills Development in the Philippines

Second, the TA design decision to contract multiple institutions as implementing agencies


brought to the table differing philosophies and approaches, which often clashed and
created unnecessary challenges during TA implementation. Aggravated by the lack of
clear management and reporting structure, loose integration among the implementing
agencies unraveled and resulted in the mid-implementation departure of AIM, with IBPAP
picking up where AIM had left off. Third, the timeline was too ambitious given the sheer
scope of the intervention and the expected outputs and outcomes. Steps necessary to
ensure sustainability and development impact—such as course accreditation and
acceptance by schools, twinning arrangements between foreign and domestic HEIs, and
piloting of a replicable and sustainable system of ICT-enabled knowledge hubs—could
not be undertaken without significant additional time. Fourth, the lack of IT infrastructure
in rural areas (i.e., availability of high-speed internet connection or e-learning labs) had
not been taken into consideration in the design. This hampered deployment of ICT-
enabled BPO industry-designed curricula in HEIs outside the National Capital Region.
(ii) Tourism TA. The TA supported operationalization of key interventions from the National
Tourism Development Plan addressing issues of low quality standards and skills
mismatch, specifically through capacity building for regulatory review and reform, raising
tourism and hospitality service standards, and developing a skills base to support growth
in the tourism sector. To do so, the TA design contained the following three main
components: (i) implementation of the RIA program to promote policy reforms, (ii)
implementation of a hotel and resort quality assurance and accreditation system to
improve service quality standards, and (iii) development of a tourism industry skills
development program and piloting it in four regions to improve capacity. Although the
design was relevant, such key performance indicators as reduction in the cost of
compliance with regulations in the tourism industry and tourism professionals achieving
mutual recognition under the Association of Southeast Asian Nations (ASEAN)
agreement were not monitored or reported. Moreover, the indicator on increased
employment in the tourism industry as a metric for impact was too ambitious as
employment was influenced by too many external factors outside the TA’s scope.
(iii) At-Risk Youth TA. During TA implementation, it was noted that some of the DMF
indicators, such as comparative indicators on the job placement rate of similar groups
that were not receiving JSP services and the number of employers that utilized PESOs not
offering JSP services, had not been monitored. In the TCR, progress was reported for only
7 out of 15 indicators identified in the DMF, thus indicating weak monitoring of
performance indicators. The TA could have benefitted from an assessment at the outset
as to the appropriateness and feasibility of generating and monitoring of the indicators
on a regular basis. Also, the project design could have better integrated the RIA
intervention into the rest of the TA.
(iv) JobStart Rollout TA. The TA aimed at scaling up on the JSP pilot model in the At-Risk
Youth TA by rolling out the LST curriculum nationally, building capacity of JSP units at
DOLE headquarters and its regional offices, and building capacity of PESOs participating
in JSP. The JobStart Rollout TA brought about its own set of challenges, however, as both
DOLE and PESOs were now sharing a greater burden of funding the technical training
and on-the-job training for the JobStarters. Although this was theoretically ideal, because
it was meant to foster local ownership and long-term sustainability, in actual practice
unpredictable and inconsistent funding from DOLE either delayed or curtailed
implementation in many LGUs, making it much more challenging to keep the LGUs
engaged and interested in the project. Also, documentation and reporting requirements
for training participation that were viewed as burdensome during the pilot have largely
remained, discouraging potential employers, and causing them to lose interest and
withdraw from the program. Although DOLE might have been able to support and push
a few PESOs across the finish line during the pilot implementation, doing so for a large-
scale rollout would severely strain DOLE’s administrative capacity. As such, the project
Performance Assessment 15

design could have benefitted had more efforts been made to streamline administrative
procedures and ease requirements for the beneficiaries and implementing partners,
thereby incentivizing more to buy into the JSP Rollout TA rather than to make it riskier
and more cumbersome.

Box 2. Lessons from Brazil’s SENAI in Skills Development Training

A review of Brazil’s National Service for Industrial Training (SENAI) experience over its most recent 6 decades
provided the following lessons independently of the country-specific context:

• Need for inclusive institutional framework: Training should not be provided within an institutional framework
that excludes the informal sector and is potentially subject to political uncertainty. To achieve this goal,
policymakers have to ensure that any intervention to create or modify the vocational training system is
oriented around offering each ethnic group the same development chances and that there is a focus on
finding the proper financing balance between flexible and fixed sources (sale of services and levy) that avoids
fluctuations and uncertainties. The set of interventions has to support (i) the reduction of occupational
segmentation, thereby encouraging women to move from labor-intensive towards capital-intensive sectors,
and (ii) promotion of opportunities of internal migration.
• Independent and decentralized governance structure: Training institutions should not be under exclusive
control of government officials. An independent and decentralized governance structure would encourage
the emphasis to be on improving labor market outcomes of all workers (including shop floor workers) while
ensuring training courses meet the demands of the private sector across the territory, independently of
whether they are in the informal or formal economy.

Source: C. Barría and S. Klasen. 2016. The impact of SENAI’s vocational training program on employment, wages, and mobility
in Brazil: Lessons for Sub Saharan Africa? The Quarterly Review of Economics and Finance. 62. pp. 74–96.

29. Innovations in TA Design. Each TA introduced its own set of innovations into its designs to
improve or reform existing policies and processes and that would increase effectiveness, impact, or
sustainability of the TA in its respective sector.

(i) IT-BPO TA. The TA introduced innovations meant to strengthen the access of potential
employees from remote or rural regions to IT-BPO industry training and education. These
consisted of developing and implementing web-based programs for teaching industry-
based courses in IT-BPO and establishing linkages between industry and academia to
provide relevant and up-to-date training. The pipeline to help facilitate job integration
into the IT-BPO industry through e-learning, however, was implemented separately by
one of the implementing agencies, as participation of other agencies in the ecosystem,
including the employers and community of practice, was missing due to their lack of
institutional capacity to scale up the training. Meanwhile, HEIs lacked both teachers and
capacity to upgrade the level of their service management program.30 The innovation
required by the TA simply outpaced the realities of what was possible at the time in the
Philippines.
(ii) Tourism TA. The TA was an innovative approach to skills development that involved
public–private partnership between DOT, employers, and industry groups. The program
was an employer-led initiative targeting four fast-growing tourist destinations in the
Philippines, namely Bohol, Cebu, Davao, and Palawan. The TA piloted the industry skills
grant scheme (ISGS), which provided grants to the tourism industry to help increase
efficiency, improve revenue, strengthen employee performance and confidence, and
boost customer satisfaction. A key innovation in the ISGS was the unprecedented level
of control and ownership given to owners in the local tourism sector, as they could define

30
The service management program was approved by the Commission on Higher Education in 2012 and was a 21-unit minor
degree course that could be taken by university or high school students intending to go into IT-BPO. It was designed by industry
practitioners to provide students with the required skills set.
16 Job Creation and Skills Development in the Philippines

the group to be trained, identify and request the type of training needed, and identify
the pool of candidate trainers to provide the training. DOT’s rollout program that
followed up the TA, the Tourism Industry Skills Program, retained this innovation, albeit
with a slight twist: it shifted the control away from individual owners to associations of
resort and business owners in order to improve coordination in selecting training
programs.
(iii) At-Risk Youth TA. The TA piloted MyFirstJob, which was renamed as JSP. JSP was an
innovative job facilitation scheme for at-risk young Filipinos and was conceived as a
demand-driven system in that the employers led the process of determining the skills
they needed, the technical training required, and the recruitment of interns. It adopted
an integrated approach that offered at-risk youth LST, career guidance, and
opportunities for technical training and internship with private sector employers.
(iv) JobStart Rollout TA. The successful piloting of MyFirstJob through the At-Risk Youth TA
led to a rebranding and the follow-up Support for the Nationwide Rollout of JSP. An
additional innovation introduced in the design was to offer different pathways for
JobStart trainees, or JobStarters, as it was observed during the pilot that not all youths
needed to go through the full employment facilitation cycle, and specifically there were
those who were relatively more job-ready and just need to be matched with or referred
to an employer. The innovation in the rollout by offering different pathways made the
design more flexible and responsive to the varying capacity and readiness of each
JobStarter. Furthermore, to facilitate transition to employment, the career guidance
component was merged with LST and the internship period was reduced from 6 to 3
months. Figure 2 shows the revised JSP cycle.

Figure 2. JobStart Philippines Training Cycle

Technical Training Internship


(3 months) (3 months)

Wage
Employment
Registration Life Skills Training & Job Matching
Career Guidance
(10 days)
Referral to Other Programs

Source: Department of Labor and Employment. JobStart.

30. Outreach. There was a lack of concerted effort to raise public awareness for JobStart. Despite the
TA project’s being meant to alleviate poverty for those most vulnerable, insufficient public relations
activities or campaigns were targeted to reach out to them. Instead, the LGUs and departments’ regional
offices used existing or familiar human networks in order to elicit participation from those less needy and
thus, less qualified, simply because they had greater access to information concerning the TA programs.
It was observed during the FGDs, for example, that a noticeable number of Jobstarters were college
graduates and as such had greater probability of becoming employed. In Davao, the use of such classic
media as television and radio advertisements was lauded but most JobStarters credited social media, chat
groups, and personal references as channels through which they first learned about JSP. Rural
communities with impoverished youths were reached through the barangay leaders’ personal networks.
In addition, social media should be used as a supplementary network to reach youths with greater access
to smartphones.
Performance Assessment 17

31. Across all four TA projects, outreach to women was nevertheless significant. In JobStart, 58% of
the beneficiaries were women. In the IT-BPO TA, 60% of teachers participating in the online teacher
training program and 49% of students that completed the online training modules were women. In the
Tourism TA, 45% of those trained in industry skills were women. These results indicate relatively
successful gender mainstreaming of TA projects. This was evidenced during the survey of FGD participants,
where there were no significant variations along gender lines, thus signifying that the TA projects made
sure no gender bias was “perceived” by the beneficiaries during planning and implementation.

B. Effectiveness
32. Assessment of the TA projects’ effectiveness looked at whether the intended outcomes were
achieved when evaluated against the targets specified in the DMF and the extent to which these
outcomes were attributable to each project’s intervention. Appendix 2 states targets and
accomplishments of each TA in relation to its DMF. Based on assessments in the following paragraphs,
the TPER assessed the TA projects’ relevance as shown in Table 5.

Table 5: Effectiveness Ratings for the Job Creation and Skills Development Technical Assistance Projects
Effectiveness Evaluation Subcriteria Effectiveness Rating
for each Technical
Technical Assistance Output Outcome Assistance
Strengthening Knowledge-Based Economic and
Social Development Not fully achieved Not fully achieved Less than effective
Improving Competitiveness in Tourism Mostly achieved Achieved Effective
Employment Facilitation for Inclusive Growth Achieved Achieved Effective
Support for the Nationwide Rollout of Mostly achieved Mostly achieved
JobStart Philippines (ongoing) (ongoing) Effective
Source: Independent Evaluation Department.

33. Outputs of IT-BPO TA. The TA’s expected outputs were all not fully achieved at completion.

(i) The output on increased access to knowledge resources for teaching and learning IT-BPO
industry courses was partly achieved. The training materials for teachers and five
electronic service management program (eSMP) courses were digitized and offered
online, but the target of establishing at least three knowledge hubs in HEIs was not fully
realized. Only one online knowledge hub was established at UPOU and only one physical
hub was completed at IBPAP. Meanwhile, the business model for operating and
sustaining the knowledge hubs was successfully conceptualized, but its delivery was
significantly delayed until the end of project implementation due to IBPAP’s having to
take over the task for AIM. As such, the proposed business model could not be piloted
due to lack of time remaining within the TA’s timeline.
(ii) The output on enhancement of higher education curricula and instruction was partly
achieved, as only 379 (42%) of the targeted 900 faculty members from the participating
HEIs completed the online teacher training on IT-BPO industry-designed courses and
2,276 (76%) of the targeted 3,000 students completed the online learning modules. The
shortfall for teachers could be attributed to lack of advocacy for the program and
incentives for teachers to get certified, as the trainings were neither formally recognized
nor were sufficient stipends available. The students suffered from the same lack of
advocacy, worsened by the lack of familiarity with e-learning during TA implementation.
(iii) The output on strengthening partnerships with industry and academic institutions was
likewise not fully realized. Although the TA did see the development of a partnership
framework between HEIs and industry and signing of memoranda of agreement between
IT-BPO companies and schools, the intended twinning arrangements between foreign
18 Job Creation and Skills Development in the Philippines

and domestic HEIs were not achieved due to the unrealistic timeline set under the TA
that did not provide enough time for that process to bear fruit.

34. Outcomes of IT-BPO TA. The intended outcome of a replicable and sustainable system of ICT-
enabled knowledge hubs developed for improved teaching and learning of IT-BPO industry-designed
curricula in HEIs was not fully achieved. UPOU conducted both in-person and online training for teachers,
but the extent to which HEIs adopted the industry courses was unclear due to poor monitoring. The
number of HEIs adopting the industry-designed online courses was not closely monitored or reported by
the project, and neither were there any indications that the industry-developed courses had been
adopted by the HEIs after TA completion. Furthermore, the global competitiveness assessment tool was
not adopted, as the HEIS lacked (i) funds for its administration, (ii) necessary e-learning infrastructure,
and (iii) a policy framework within which to assess the teachers’ capacities and to match them to the
industry needs. Due to shortcomings in the design and lack of infrastructure that resulted in the TA
underperforming in terms of both outputs and outcomes, the TPER assessed it less than effective.

35. Outputs of Tourism TA. The TA had three key outputs, namely implementation of the RIA,
implementation of a hotel and resort quality assurance and accreditation system in four regions, and
development of a tourism industry skills development program and piloting thereof. The outputs were
mostly achieved as follows:

(i) For implementation of the RIA, three out of the four indicators were achieved and one
was partly achieved. Although 10 regulatory impact statements (RISs) were completed
during implementation as planned,31 only 4 had been implemented because the 3-year
time frame was insufficient for recommendations in the remaining 6 RISs to be fully
manifested. Also, implementing the recommendations required enforcement powers
that did not rest with DOT but fell within the purview of the LGUs or other agencies.
(ii) For implementation of the hotel and resort quality assurance and accreditation system,
the National Accommodation Standards incorporating service, hospitality, efficiency,
friendliness, and food were revised and published, as were the Mabuhay standards
developed for small accommodation providers. 32 A quality assurance manual was
developed governing implementation of the new standards, and the performance targets
for training, assessment, and accreditation were all met or exceeded (Appendix 3).
(iii) For development of a tourism skills development program, development and piloting
within the four pilot regions were partly achieved, as two of the three targets were
reached. Development of a human resource strategy was achieved, with DOT completing
the first Tourism Human Resource Development Strategy and Action Plan 2015–2020.
The number of tourism workers under the program reached 7,500, which exceeded the
target of 5,000, but the ratio of female trainees was 47.3%, which was below the target
of 55%. Also, there were no monitoring data confirming whether the target of at least
500 tourism professionals being mutually recognized under ASEAN agreement was
achieved. It is highly unlikely that this was achieved.

36. Outcomes of Tourism TA. The outcomes of the TA were achieved, as described below. Because
both outputs and outcomes were mostly achieved, the TA was assessed effective.

31
A RIS is a public consultation document that is completed for all proposals on regulations considered to have a potential
significant impact on stakeholders. It is the second stage of impact assessment in the RIA process. The third and final stage is
the regulatory assessment summary (RAS), which is a summary document of the development process and outcomes of the RIS,
including compliance with regulatory best practice principles. It is prepared and attached to each proposed regulation for review
by the secretaries of concerned departments and other relevant decision makers (e.g., Congress, the President, Office of the
President) when approval is sought for a regulation.
32
Mabuhay is a general term used for a tourist inn, pension house, motorist hotel, bed and breakfast, homestay, or vacation home.
Mabuhay standards cover the minimum requirements in the operations of this accommodation category.
Performance Assessment 19

(i) The ranking of the Philippines’ tourism industry by the World Economic Forum jumped
by 15 places from 94 out of 139 countries in 2011 to 79 out of 136 countries in 2017. In
2019, the industry’s ranking improved further to 75 out of 140 countries. While these
improvements could not be attributed solely to the TA project, its support in aligning
accreditation and accommodation systems with international standards while providing
capacity development for DOT personnel and training skills for employees matching the
industry’s needs likely contributed to increasing the industry’s competitiveness.
(ii) The targeted 15% reduction in the business costs of compliance with regulations in the
tourism industry was likely achieved, as implementation of the four RISs had a favorable
effect on reducing the cost of compliance in areas where they were implemented. For
example, the online option for travel tax processing improved efficiency and reduced
costs to tourists overall, while at Puerto Princesa, the number of days to secure a Mayor’s
Permit for Travel and Tour Agencies was reduced by 70%.

Box 3. Philippines: Puerto Princesa’s Regulatory Impact Assessment

In January 2016, the City Tourism Department of Puerto Princesa applied for the local government unit (LGU)
regulatory impact assessment (RIA) Grant Scheme supported by Asian Development Bank (ADB) through the
Department of Tourism (DOT). The purpose of the grant was to review and update the Tourism Code of 2011
particularly those provisions related to travel and tour agencies, tourist transport operators, and tour guides.
The RIA intended to promote ease of doing business for the private sector by reducing documentary
requirements; encouraging unlicensed tour agencies, operators, and guides to secure licenses, and promoting a
tourist-friendly Tourism Code.

The RIA process involved extensive consultations with stakeholders. Review of the Tourism Code and
consultations yielded a recommendation to simplify the processes and requirements for obtaining a Mayor’s
Permit. The review concluded that cutting red tape would greatly support the tourism stakeholders by making
it easier to do business and reducing costs.

The RIA was implemented, resulting in a shortening of licensing time for travel and tour agencies from 10 to 3
days while reducing the number of documents required from 17 to 8. For tourist transport operators, the
number of days was decreased from 4 to 2 days and the number of documents was cut from 14 to 10. Shrinking
the number of processing days and documentary requirements diminished costs and resulted in savings both to
operators and the LGU.

After ADB’s technical assistance (TA) project implementation, the RIA process was mainstreamed in the
operations of the City Tourism Department, and the LGU has continually improved its internal business processes
by establishing a “Business One-Stop Shop” aimed at reducing the paperwork and time needed for local business
registration and renewal. The key factors for this success were (i) strong ownership by the LGU, (ii) an
institutionalized City Tourism Department that contributed to greater stability of TA implementation, (iii)
extensive consultation with stakeholders, and (iv) support of the local chief executive.

Sources: Independent Evaluation Mission; Focus group discussions; and Local Government Unit of Puerto Princess City. 2016.
Regulatory Impact Statement: Review of Local Ordinance No. 495 “Tourism Code” of Puerto Princesa. Puerto Princesa.

37. Outputs of At-Risk Youth TA. The project was expected to: (i) strengthen the capacity for labor
and policy analysis; and (ii) implement the pilot of MyFirstJob, later renamed JobStart. Based on the
results, both outputs were delivered. Nevertheless, the indicators identified to measure these outputs
were not well monitored. Of the 15 indicators specified in the DMF, 8 were not reported in the TCR. This
reflects poor monitoring of performance indicators. Actual data relating to the DMF indicators gathered
by the independent evaluation mission are presented in Appendix 2, Table A2.3.

(i) Of the six indicators for the output on capacity for labor policy analysis and formulation
strengthened, four were achieved, one partly achieved, and one indicator not reported
on in the TCR. The indicator not reported on was the protocols for early employment
recovery program, which had not been formulated for monitoring. The target for RIA
20 Job Creation and Skills Development in the Philippines

work plans was achieved, but the target on the number of completed RIAs was not. Of
the 10 RISs expected to be delivered under the TA, 9 RISs were completed. 33 Of these,
only two were applied to enhance existing labor policies while eight remained as
recommendations that had not been implemented as of December 2019. Although
DOLE’s ILS did the research work for the RIAs, their implementation was often beyond
the mandate of DOLE-ILS and political support from other agencies was needed for
effective follow-up on the RIA recommendations. In terms of RIA capacity building, an
implementation team was formed within DOLE comprising of the DOLE RIA Committee,
DOLE RIA Working Group, Agency RIA teams, and RIA Administrative Support Group.34 It
provided the structure for RIA implementation and building capacity for the RIA
processes and tools. The TA successfully conducted 10 training and capacity building
activities on the RIA methodology (Appendix 5).
(ii) The TPER assessed that all indicators for outputs on the JobStart pilot were achieved,
even though the performance regarding institutionalization of PESOs with standard labor
market information and employment systems was not directly verifiable. Of the four pilot
PESOs, two improved their labor market information and employment mediation by at
least 75%, and one improved by 60%. 35 The evaluation team directly observed that
standard labor market information system and reports were generally in place in all the
DOLE and PESO offices. The target for an impact evaluation was achieved with a
randomized impact evaluation completed on the pilot program. Though the number of
youth participants completing LST was 1,413, lower than the target of 1,600, during the
pilot phase of 2014 to 2015, that figure jumped to 3,398 in 2016 due to the expansion
to 10 LGUs (Appendix 6). Such success in piloting of the JobStart program resulted in an
agreement with DOLE for a national rollout and passage of a law in 2016 to
institutionalize it.36

38. Outcomes of At-Risk Youth TA. The outcomes of the TA were aimed at improving the capacity of
PESOs to provide employment as described below. Because both outputs and outcomes were mostly
achieved, the evaluation assessed the TA effective.

(i) The first indicator was the number of persons finding jobs through PESOs per year, and
this was overachieved. The number of persons finding jobs through institutionalized
PESOs increased by 15% annually from 1,936 per PESO during 2005–2010 to 3,844 per
PESO from 2010–2015 (target: 10% increase per year). However, the second indicator
(increase in participating PESOs’ number of employers using their services in MyFirstJob
over PESOs not offering the MyFirstJob project) was not verifiable, because monitoring
was not done on PESOs not participating in the TA.
(ii) Aside from the original indicators, there were other signs indicating achievement of the
envisaged outcome of PESOs’ improved capacity to provide employment. The successful
completion of the pilot phase of MyFirstJob led to an agreement with DOLE for a national
rollout of JSP that has covered 35 LGUs, and labor market information has been made
readily available in an online platform through the Public Employment Information
System (PEIS),37 which now facilitates intermediation of employment by the PESOs across
the country.

39. Outputs of JobStart Rollout TA. The ongoing TA is expected to deliver three outputs: (i) capacity
development of JSP units at DOLE headquarters and regional offices strengthened, (ii) life skills for

33
The RIAs undertaken under the TA are shown in Appendix 4, Table A4.2.
34
Department of Labor and Employment. 2012. Administrative Order No. 29-A Series of 2012. Manila.
35
Based on the final report prepared for the pilot phase of JobStart: DOLE. 2016. JobStart Philippines Program Pilot Phase Final
Report 2014−2016. Manila.
36
Republic Act No. 10869. 2016. An Act Institutionalizing the Nationwide Implementation of JobStart Philippines.. Manila.
37
Formerly Skills Registry System (SRS).
Performance Assessment 21

employability training curriculum rolled out nationally, and (iii) capacity of 24 PESOs in JSP
implementation developed. Most of the targets of these expected outputs had been achieved as of
December 2019.38

(i) As of December 2018, the output on capacity development of JSP units in DOLE
headquarters and regional offices had been delivered. The JSP unit was established in
DOLE-BLE and in the regional offices, formalizing the institutional structure for JSP within
DOLE for the long term. Regarding the output on life skills for employability, 13,158
youth had been trained and completed the LST, exceeding the target of 5,000. On
development of the implementation capacity of the PESOs, JSPs had been established in
35 PESOs, exceeding the target of 24. The only indicator that had not been achieved was
the training of PESO staff on delivering LST, for which 74 PESO staff had been trained
(target: 400).
(ii) The PEIS had been implemented and was operational in all 35 PESOs, exceeding the
target of 24. A total of 440 employers had participated in JSP in these PESOs,
substantially greater than the target of at least 10. Meanwhile, training of PESO staff on
JSP business operations, gender sensitivity, career guidance, and coaching are ongoing.

40. Outcomes of JobStart Rollout TA. The intended outcome was for the JSP rollout by DOLE and
PESOs to commence, which already had been achieved as of December 2019. By December 2018, a total
of 35 LGUs had signed memoranda of agreement with DOLE for JSP implementation, which exceeded
the target of 24. A total of 21,063 at-risk youth (58% female) across 35 PESOs had accessed or registered
for JSP services, substantially greater than the target of 10,000. Based on the observations that both
outputs and outcomes had been achieved except for a few interventions that were still ongoing, the
evaluation assessed the TA effective.

C. Efficiency
41. Based on the assessments below, the TPER assessed the TA projects’ efficiency as in Table 6.

Table 6: Efficiency Ratings of the Job Creation and Skills Development Technical Assistance Projects
Efficiency Evaluation Subcriteria Efficiency Rating for
Time Fund Process each Technical
Technical Assistance Utilization Utilization Efficiency Assistance
Strengthening Knowledge-Based 12-months Less than Less than
Economic and Social Development delay 80% Efficient Less than efficient
Improving Competitiveness in 6-months Greater than
Tourism delay 80% Efficient Efficient
Employment Facilitation for 6-months Greater than
Inclusive Growth delay 80% Efficient Efficient
Support for the Nationwide Rollout Not rated Not rated
of JobStart Philippines Ongoing (ongoing) (ongoing) Not rated
Source: Independent Evaluation Department.

42. Efficiency in Time Utilization. According to the TCRs, the completed TA projects were deemed
efficient with the exception of the IT-BPO TA. The resources used in that TA did not fully deliver the
expected outcome, while implementation was delayed by 12 months. The arrangements for
implementation and coordination among agencies were not the most efficient. On the other hand, the
other two completed TA projects did not suffer from such significant delays or inefficiencies. In the
ongoing JSP Rollout TA, three issues have been causing implementation delays. First, delays in
downloading of funds to LGUs from DOLE caused JobStart registrants to lose interest and drop out from
the program due to the long waiting time. Second, there were instances when the memoranda of

38
For output indicators and targets for TA 8984, refer to Appendix 2, Table A2.4.
22 Job Creation and Skills Development in the Philippines

agreement with employers were not ready in time for deployment of LST finishers to the technical skills
training and internship phase. Third, service providers were often not contracted in time for the LST due
to the government’s financial management processes. These issues have significantly delayed
implementation of the TA and could critically reduce its efficiency unless addressed before completion.

43. Efficiency in Fund Utilization

(i) IT-BPO TA. Of the $500,000 approved for this TA, only 77% was utilized. This was due in
part to outputs and outcomes not being fully realized. The funds were underutilized
despite a 12-month extension to ensure completion of the expected outputs on the
partnerships between industry and academic institutions, these being increased access
to knowledge resources for teaching and learning IT-BPO courses and enhancement of
higher education curricula. This indicates less than efficient use of resources in delivering
the intended outputs and outcome.
(ii) Tourism TA. Of the $7,116,900 approved for this TA, 83% was utilized to achieve the
intended outcome. The remaining 17% was unutilized due to ring-fencing of funds as
buffer for foreign exchange risk. During pilot testing of the ISGS, 7,500 industry workers
were trained at an average cost of $130 per trainee. That would be considered cost-
effective compared to other skills trainings.39 The TA successfully exploited economies of
scale in the delivery of training by providing matching grants to networks of employers
in order to address the constraint of small-scale operations’ inability to provide quality
training due to lack of resources. Furthermore, the RIAs from the TA helped the LGUs
introduce regulations that reduced regulatory compliance costs for tourism businesses.
As such, the envisaged outcome of improved competitiveness of the tourism industry
was realized with no cost overruns, indicating efficient utilization of resources.
(iii) At-Risk Youth TA. Of the $5,661,900 amount approved for this TA, 85% was utilized. The
remaining 15% was unutilized due to ring-fencing of funds for foreign exchange risk.
The amount utilized delivered the envisaged outcome of improved capacity of PESOs to
provide employment services while successfully piloting the JSP, thus indicating efficient
utilization of resources.

44. Efficiency in Process

(i) IT-BPO TA. This TA was extended by 12-months to accommodate additional activities
needed to complete the e-service and management program courses in their entirety.
IBPAP’s lack of project management experience and unfamiliarity with ADB processes
and procedures contributed to the delay, as evidenced by the 1 year it took to field the
first consultant from date of signing. The arrangement for implementation was not
optimal, as there was no single entity tasked with managing and coordinating the TA
activities. This was aggravated by lack of clear reporting structure for the three
implementing agencies involved. This deficiency of structure negatively affected the
working dynamics among implementing agencies and later resulted in AIM being unable
to execute its deliverables. This forced IBPAP to complete the development of a viable
business plan for the knowledge hubs in cooperation with the Asia Pacific College.
(ii) Tourism TA. This TA adhered to timely implementation and achievement of intended
outcomes. The first consultant was fielded after about 6 months and thereafter the
activities were on track. The TA was extended by 6 months to help DOT draft a concept
paper to support national rollout of a skills grant program similar to ISGS. The extension

39
Based on the 2015 State of Industry Report of the Association Talent Development (ATD), organizations spent an average of
$1,252 per employee on training and development initiatives. ATD is the world’s largest professional membership organization
supporting those who develop knowledge and skills, improve performance, and help achieve results for the organizations they
serve. Its members are drawn from more than 120 countries and work in public and private organizations in every industry
sector.
Performance Assessment 23

was reasonable to maximize the use of resources and benefits of the project while
improving sustainability of the intervention. The tourism industry was a well-organized
and coordinated industry, and that also helped in facilitating project implementation.
The process is assessed efficient.
(iii) At-Risk Youth TA. This TA suffered no significant delays in implementation. Consultants
were immediately fielded upon signing of the TA. By mid-implementation (November
2015), the TA had completed the scheduled registrations, career guidance, LST, and job
placements in all 4 pilot PESOs and expanded to 10 other PESOs. The TA was extended
by 6 months to finalize the follow-on TA for the national rollout of JSP,40 which is a
reasonable delay. In view of the efficient use of resources in achieving the intended
outcome and with no major setback in implementation, the TA is assessed efficient.
(iv) JobStart Rollout TA. In this TA, several administrative issues that could negatively impact
efficiency of implementation were noted. First, delays in disbursement of funds sourced
from government coffers led to service providers not being contracted in time, which in
turn led to significant number of youth registrants dropping out from the program.41
Second, there were instances when the memoranda of agreement with employers were
not ready in time for deployment to the technical skills training and internship phase.
Third, many of the JobStarters did not complete the full cycle because they found the
PHP200 allowance for LST and 75% of the minimum wage allowance not sufficiently
attractive. This caused between 45% and 68% of LST finishers to drop out during the
technical training and internship between 2017 and 2019.

D. Sustainability
45. IT-BPO TA. The TCR assessed the TA’s output likely sustainable, as strong frameworks were
supposedly in place to allow regular updating of courses and solicit continued input from local industry
partners. The TCR also posited that university and industry partnerships should continue to be relevant
in providing increased opportunities to students and a more appropriately skilled workforce for the
companies. After TA completion, UPOU was able to establish a knowledge hub. It continues to offer
courses but requires additional support to update and maintain the modules to meet the rapidly
changing needs of the industry. On the demand side, there was low demand for the e-learning modules
as the IT-BPO industry’s capacity has grown considerably to the point where firms have started directly
hiring undergraduate candidates and then providing them on-the-job training to fill in the talent gap.

46. The evaluation deems that the results of institutional capacity development are unlikely to be
sustained without further support from ADB. The TA helped strengthen IBPAP’s institutional capacity in
project management during implementation, but the team in charge of the TA was disbanded after its
completion and knowledge was not effectively transferred to those who remained. Furthermore, the TA
design did not include support for institutionalization of monitoring and evaluation system within IBPAP
or DOF. This can be attributed to a lack of leadership and mandate on the part of DOF. To sustain the TA
envisaged outcomes, it would have been vital to embed the skills development initiatives within an
institutional framework. Neither IBPAP nor DOF could provide the necessary framework, however, and
that contributes to the TA’s outcome being less than sustainable.

47. Tourism TA. Since completion of the TA, the updated hotel and resort quality assurance and
accreditation system has been set in place as well as the institutional arrangements to implement the
system. This is evidenced by the revised national accommodation standards that were aligned with
international standards. The RIA component has also become embedded within DOT’s existing policy

40
ADB. 2015. Technical Assistance to the Philippines for Nationwide Rollout of JobStart Philippines. Manila.
41
The LSTs could not be implemented immediately because the LGUs had not received funds yet, causing youth registrants to lose
interest in the program because of waiting time they could have spent searching for jobs. During implementation of the rollout
from 2017 to 2019, the initial drop-out (those that registered for JSP and eventually enrolled in LST) ranged from 15% to 27%
(See Appendix 6).
24 Job Creation and Skills Development in the Philippines

framework through the Office of Tourism Development Planning, Research and Information
Management. This office continues to conduct consultations and workshops on the use of RIAs with
various stakeholders for better quality of regulations in the industry. In August 2014, the DOT Secretary
issued an order enjoining the department and attached agencies to adopt the RIA manual developed
under the TA. Following the training conducted on the RIA, the National Economic and Development
Authority began the process of developing RIA guidelines for the whole government. This role was later
taken over by the Anti-Red Tape Authority (ARTA) when it was established in 2018.42 Since its inception,
ARTA has been drawing heavily on DOT’s RIA manual and experience in developing and incorporating
RIAs within the government policy framework.

48. With regards to institutional capacity for skills development, the TA helped form the foundation
for the Office of Industry Manpower Development within DOT, which had not existed prior to the TA.
This office enables DOT to have stronger focus on systematic development of human resource within the
industry. It periodically updates and implements the human resource development strategy and action
plan as well. As for the tourism sector’s overall capacity, DOT’s campaign to develop tourism-specific
skills resulted in the allocation of PHP100 million ($2 million) per year by the Department of Budget and
Management to support national rollout of a follow-up program from 2017 to 2019.43 The ISGS piloted
under the TA was renamed the Tourism Industry Skills Program (TISP), which brought about certain
changes in compliance with the shift in the overall policy direction from the new 2016 administration.
The changes introduced in the TISP were threefold: (i) allocation of an equal amount of budget per region,
regardless of each region’s capacity, need, or performance; (ii) removal of cost sharing by the employers
as a prerequisite for the grant application; and (iii) main focus on number of trainings completed and
participating trainees. The resulting TISP saw the innovative aspect of the TA’s ISGS significantly
undermined as it incentivized regional DOT offices to implement more low-cost, low-tech basic trainings
rather than offering customized, cutting-edge trainings based on the needs of the employers.

49. In summary, the institutional and implementation frameworks for quality assurance and
accreditation as well as for regulatory reforms using the RIA have been set in place. The Office of Industry
Manpower Development was established within DOT to support continued skills development of the
industry. These institutional frameworks introduced by the TA are likely sustainable. Although certain
elements of innovation on skills development introduced under the TA have been undermined by the
changes introduced in the TISP, these policy shifts can still be taken as evidence of flexibility within the
DOT to keep up with ever-changing government policies and to sustain its efforts at developing tourism
skills. In view of the sustained policy and institutional framework along with the continuing efforts at
capacity development in the tourism sector, the evaluation assessed the TA most likely sustainable.

Box 4. International Good Practices on Upgrading Skills of Workers

• France: National and particularly regional governments provided generous funding to help enterprises train or
retrain workers, often in combination with reduced working hours but without loss of salary, as an alternative to
retrenchment. A Social Investment Fund financed by the state, the European Social Fund (EUR 5 billion), and social
partners (EUR 500 million) was set up to finance measures promoting employment of young people, enabling
workers made redundant to reenter the labor market, and facilitating access to vocational training.
• Germany: If the employer devotes down time to staff training, the government reimbursed up to 100% of the
employers’ social security contributions.
• Canada: Individual training plans range from upgrading skills in current jobs, preparing for promotions, and even
training for jobs outside the company. Workers remain employed—helping retain aggregate demand in hard-hit
communities—and acquire new skills, while employers are able to retain staff and avoid having to train new
workers when markets pick up.

Source: International Labour Organization. 2010. A Skilled Workforce for Strong, Sustainable and Balanced Growth: A G20
Training Strategy. Geneva.

42
Republic Act 11032. An Act Promoting Ease of Doing Business and Efficient Delivery of Government Services, by Amending
Republic Act No. 9485, Otherwise Known as the Anti-Red Tape Act of 2007, and for Other Purposes. Manila.
43
In 2020, the allocation was reduced to PHP80 million due to the government’s other priorities.
Performance Assessment 25

50. At-Risk Youth TA. Toward building capacity for labor policy analysis and formulation, DOLE-ILS
staff was trained in the use of RIAs and applied the methodology to successfully formulate nine RIAs
through this TA. Though there is still a portion of the original group of core staff within ILS that have
been trained and is able to do the RIAs, there was no clear structure established within DOLE to sustain
the knowledge. Also, there was no champion within DOLE to provide leadership and help RIA processes
become mainstreamed during policy and regulatory formulation. Due to changes in administration and
priorities, RIA has not been sustained in DOLE, making the intervention less than likely sustainable.

51. The pilot phase of JobStart was successfully completed, then expanded to 10 additional PESOs.
It also led to an agreement with DOLE for the national rollout. The follow-up TA, Support for the
Nationwide Rollout of JSP, was formulated to build upon the gains of the pilot and reach more
beneficiaries. In 2016, the government committed to institutionalizing JSP through enactment of the JSP
Bill and allotted PHP106 million for the nationwide rollout. 44 To date, JSP has been rolled out to 35 of
more than 1,500 LGUs in the country (Appendix 7). These developments contributed to sustainability of
the project outcomes. Considering the relative weight of the pilot Jobstart, the ongoing follow-up TA,
and enactment of the JSP Bill, the TPER assessed the TA likely sustainable.

52. JobStart Rollout TA. In line with the national rollout and passage of the JobStart law, JobStart
was institutionalized within DOLE’s institutional framework at national and regional levels, with focal
persons assigned at field level. JSP was mainstreamed in the employment program of DOLE and the
institutional structure established provided the channel for long-term implementation. The evaluation
nevertheless noted issues that could negatively affect sustainability of the program. First is the political
risk posed by sudden shifts in priorities and human resource complement that often can be seen in LGUs
following an election. Such events have resulted in significant loss of institutional memory concerning
ADB TA and related innovations. This could be attributed to the lack of an enforcement system for
effective handover of knowledge among LGU personnel. 45 Second, it was observed that despite efforts
of the project management office, many of the PESO LGUs still lack capacity in implementing follow-up
programs and are heavily dependent on external service providers. This has been further aggravated by
the LGUs’ dependence on temporary, casual, or “job order” workers; lack of institutionalized PESOs; and
lack of local budgetary support for JobStart, all of which could diminish sustainability of the nationwide
rollout.

53. Based on overall feedback received during the FGDs at various PESOs and analysis of the official
performance data from DOLE (Table 7), it was evident that LST was the single most effective intervention
within the JSP at helping at-risk youths get hired. As such, ADB should consider concentrating on
developing the LST instruction capacity within DOLE and PESOs to ensure maximum impact and
sustainability after TA completion. Without additional efforts to institutionalize both PESOs and JSP while
streamlining the intervention, the TA would likely be less than sustainable.

Table 7: Ratings of the Job Creation and Skills Development Technical Assistance Projects
% Employed out of LST % Employed after TTI Statistical
Obs. Mean Std. Err. Obs. Mean Std. Err Significance
Variables
Employment rate for all JSP 81 36.4% 2.1% 81 21.7% 2.3% ***

Employment rate for pilot 12 47.0% 5.1% 12 12.6% 4.0% ***

Employment rate for rollout 69 34.5% 2.3% 69 23.2% 2.6% **

44
Republic Act No. 10869. 2016. An Act Institutionalizing the Nationwide Implementation of JobStart Philippines. Manila.
45
The Department of the Interior and Local Government circulated Memorandum No. 2019-39 (13 March 2019) requiring local
governance transition teams to ensure the smooth transition by gathering, securing, and preserving all official documents and/or
records of LGU official transactions. This memo has not been diligently complied with, however, and this has contributed to
extensive loss of knowledge in LGUs that have not been institutionalized.
26 Job Creation and Skills Development in the Philippines

JSP = JobStart Philippines, LST = life skills training, Obs. = number of observations, Std. Err. = standard error, TTI = technical
training and/or internship.
*, **, *** = difference is statistically significant at the 90%, 95%, or 99% level, respectively.
Source: Department of Labor and Employment, JobStart.
CHAPTER 4
Other Assessments
A. Impact
54. The impact of the three completed TA projects is assessed in this section. The impact of the
JobStart Rollout TA was not assessed or rated because it is ongoing.

55. Impact of IT-BPO TA. The envisaged impact was for the Philippine education system to score at
least 4.50 on the Institute for Management Development World Competitiveness Online Database, up
from 4.03 in 2009, by 2018. This was achieved with the score of 5.24 in 2018. This evaluation notes,
however, that the target was a higher order indicator that can be influenced by many external factors.
The shortfall in establishing viable knowledge hubs and the low demand for online courses reduced the
development impact of the TA. Also, the accreditation program developed for the eSMPs had minimal
impact on the industry. Of the 900 teachers targeted, only 379 (42%) faculty members received
certification using online teacher training programs. Additional training and employment opportunities
for students were opened through partnerships between HEIs and industry, but the extent of job
placement was not clear due to lack of monitoring by either DOF or IBPAP.

56. Nonetheless, the need to fill the talent gap in the industry was picked up by other HEIs. For
example, the Asia Pacific College took some of the lessons learned from the TA and is currently developing
plans to roll out eSMP courses to be taught in malls across the country. Another example is the Carlos
Hilado Memorial State College in Negros Occidental, which has continued to offer the service
management program courses since 2016. During 2016 to 2019, the college produced 1,795 graduates
of the program. Despite these unintended benefits of the TA to IT-BPO, the evaluation assessed the TA’s
impact to be less than satisfactory.

57. Impact of Tourism TA. The expected impact of the project was increased employment in the
tourism industry above the long-term average annual growth of 3.5% by 2020. During 2013 to 2018,
employment in tourism grew at an annual average of 2.8%, which was lower than the target. It should
be noted, however, that change in employment growth within the industry cannot be attributed to the
project alone, as there are several factors that affect the number of jobs. In terms of its contribution to
total employment, the share of tourism steadily increased from 12.1% in 2012 to 13.0% in 2018
(Appendix 8). During 2016 to 2019, inbound visitors grew by an average of 11.4% (Appendix 9. In terms
of its contribution to the economy, tourism as a proportion of gross domestic product grew from 7.9%
in 2012 to 12.7% in 2018 (Appendix 8).

58. In terms of institutional development, the TA helped develop the capacity of the DOT by building
the foundation for the Office of Industry Manpower Development, which institutionalized human
resource development within DOT. The support provided to DOT in developing RIAs assisted in improving
regulations that reduced regulatory compliance costs for those RIAs that were implemented. Despite the
difficulty in implementation, the RIAs have proven invaluable for the government at large, especially as
this has become a valuable tool for evidence-based policymaking at all governmental levels. At the LGU
level, in Puerto Princesa, the number of days for processing business licenses for travel and tour agencies
was reduced by 50%, while in Samal Island Garden City, officials have used RIA to improve an existing
environmental user’s fee scheme that had not been updated for more than a decade. At national level,
28 Job Creation and Skills Development in the Philippines

ARTA has been drawing heavily on the DOT’s experience to incorporate RIA into the government’s policy
on anti-red tape and ease of doing business.

59. The TA had unintended positive impacts on the industry. In Davao, various tourism associations
were formed to facilitate TA implementation and managed to remain active in their role well into the
implementation of DOT’s TISP. The networks formed among the employers in the associations brought
about sustained impacts that include peer learning through knowledge sharing, sharing of able trainers
through the peer networks, and reduced costs and risks of skills training through economies of scale. At
the national level, DOT, by coordinating closely with the tourism associations, managed to squeeze more
effective skills training programs from TISP’s comparatively limited budget and streamlined
documentation requirements. This effectively alleviated one of the major sources of employers’
discontent during ADB’s ISGS implementation. Considering these benefits and the impact that has been
sustained beyond the TA, the evaluation assessed the TA’s impact satisfactory.

Box 5. Philippines: Transforming South Palms Resort Panglao

South Palms Resort Panglao is a 90-room beach resort within the 5-kilometer stretch of the white-sand Alona
Beach. Prior to Asian Development Bank’s (ADB) technical assistance, the resort was saddled with negative online
reviews and ranked significantly lower in TripAdvisor compared to its comparable competitors. In 2014,
occupancy was below 50%, which negatively affected the resort’s revenue stream.

Under the ADB-supported Industry Skills Grant Scheme (ISGS), South Palms completed two batches of skills
training, significantly improving its food offering and the quality of service. To ensure that the lessons learned
were at par with international standards, both training sets used materials developed specifically for Tourism
Professional Certification Boards and National Tourism Professional Board of ASEAN Member States. After the
trainings South Palms saw immediate rise in its occupancy rate to 58% in 2015, 78% in 2016, steadily increasing
to 84% and 85% in 2017 and 2018, respectively, and peaking at 90% in 2019.

Success in training, however, also contributed to high attrition, as 60% of those trained left for better paying
jobs in other cities and countries. Those that remained were recognized for their developed skills and were
promoted, as they demonstrated high levels of loyalty, satisfaction, expertise, and eagerness to share their
knowledge with younger, less experienced colleagues. As such, most of them went on to take supervisory
positions and even assisted in developing in-house training manuals for the resort’s human resources
department.

Source: ADB Independent Evaluation Mission; South Palms Resort; and University of Queensland. 2017. Final Report on
Improving Competitiveness in Tourism. Manila.

60. Impact of At-Risk Youth TA. The intended impact of increasing youth employment was not
achieved. During 2010−2015 youth full-time wage employment increased by 1.3% per annum,46 which
was less than the target of 5.0%. This evaluation is of the view that the target was too ambitious given
the size and scope of the TA. There are too many external factors beyond the TA scope that could affect
youth employment.

61. Another impact indicator is the compared job placement rates of youths that received JobStart
services with a “control” group that did not receive the same services. The job placement rates for the
control group were not monitored, making it impossible to accurately measure. An impact evaluation
using a randomized control trial was performed after the TA implementation. Its findings indicated that
the JobStart pilot program significantly increased income levels but did not appear to have influenced
employment levels significantly.47 Furthermore, the pilot program’s impact was complemented by other
aspects of training in that beneficiaries were likely to have taken additional training other than from the

46
Based on data from the Philippine Statistics Authority, Labor Force Survey.
47
D. Jayasuriya. 2016. Impact Evaluation Study: PHI-Employment Facilitation for Inclusive Growth. Manila.
Other Assessments 29

program, believed that training was relevant to their jobs, and had greater satisfaction out of their job
choice.48

62. Without JobStart, it took an average 3 years for high school graduates to find a job while this
required only a year for college graduates. After going through JobStart, however, it took the
beneficiaries an average of 10 days to a maximum of 6.3 months to find their first jobs.49 This indicates
a significant impact of the program on facilitating employment of at-risk youth and in building their
confidence when entering the job market. On the other hand, on the technical training provided to
JobStarters by employers, both DOLE and PESOs were overwhelmed by the basic logistics of JSP and
could not effectively control the quality or standardize the training. Despite efforts by DOLE to ease the
burden on employers in coming up with training plans, the process of preparing these was often too
difficult for small and medium-sized enterprises (SMEs), while neither DOLE nor PESOs had the technical
expertise to review or assess the submitted plans. In hindsight, including the Technical Education and
Skills Development Authority into the initial project design would have enhanced the quality of technical
training and eased technical certification of employees, thereby further maximizing the impact on skills
development through JSP.

Box 6. International Good Practices on Certification and Quality of Training

• European Qualification Framework (EQF): The EQF is a “translation grid” between European Member States’
qualification systems to help employers and workers better understand European Union (EU) citizens’
qualifications. Intended to support mobility and lifelong learning, the EQF establishes equivalences between
qualifications and certificates obtained in different countries. It is a reference tool for both employers and
workers when comparing the qualification levels of different countries and various education and training
systems. The EQF includes eight broad categories of skills or “reference levels,” ranging from basic to the
most advanced. Each category includes descriptions of what workers should know and be able to do,
regardless of where their diplomas, qualifications, or certificates were obtained. In part, this responds to the
particular circumstance of opening labor markets at the Europe-wide level, where individual institutions’
reputations for quality of training are not known across the broader EU.

• Strategic Plan for Continuous Education, Innovation, and Employment, Argentina 2020: Argentina’s plan
focuses on improving training at the enterprise level through uses of its Tax Credit Regime to incentivize small
and medium-sized enterprises (SMEs) into investing in training workers. SMEs can finance training projects
up to the equivalent of 8% of the sum of total remuneration. They can also be reimbursed for costs incurred
for skills assessment and certification in addition to actual training, creating an incentive to boost recognition
of skills learned informally or on the job. This feature helps make the program (begun in 2007) attractive to
SMEs, which comprise 70% of the beneficiaries.

Source: International Labour Organization. 2008. Skills for Improved Productivity, Employment Growth and Development,
International Labor Conference, 97th Session, Report V, Geneva.

63. In terms of institutional impact, the project helped strengthen the capacity for labor policy
analysis and formulation of DOLE with nine RISs produced and staff trained on RIA processes and tools.
Institutionalized PESOs were able to set in place labor market information and employment
intermediation systems with the development of the PEIS. That system made labor market information
available to the LGUs in an online platform. Nevertheless, PESOs’ capability to carry out the complete
cycle of JobStart employment facilitation independently remains a challenge. Many of them lack
adequate capacity to implement JSP without support from the project. Although the TA had significant
institutional development impact on DOLE and positive effects on Jobstarters and employers, most of
the original impact targets were not achieved. As such, the TPER assesses the TA impact less than
satisfactory.

48
The study was limited by low statistical power of less than 0.80 due to the low proportion of control group participants in the
sample. Hence, the probability of concluding that there is no effect, when in fact there is, increases.
49
Based on official employment data from Department of Labor and Employment, JobStart.
30 Job Creation and Skills Development in the Philippines

B. ADB and Executing Agency Performance


64. Asian Development Bank. In the case of the IT-BPO TA, ADB should have done a more rigorous
feasibility study to better identify the risks in implementation and perhaps formulate a better design.
Oversight and monitoring of the TA was weak, as consultants relied heavily on their understanding of
the TA even as ADB relied heavily on the capacity of consultants who were experts only within their silos.
ADB should not have committed to the TA without identifying a lead executing agency that could provide
expertise and guidance for the IT-BPO sector. This would have been the Department of Information and
Communication Technology, which was established in 2016.50 Lastly, ADB should have more thoroughly
reviewed the DMF to determine if the targets and expected outcome were realistic and achievable given
the resources, timeline, risks, and constraints. As such, the evaluation deems ADB’s performance for the
TA less than satisfactory.

65. In the other three TA projects, ADB’s performance was assessed satisfactory. ADB engaged well
with the executing agencies and was responsive to issues during implementation. It established strong
relationships with the counterparts in DOLE and DOT while engaging closely with the tourism industry.
Supervision during implementation was adequate and periodic review missions were carried out to
monitor progress and issues. Analytic and diagnostic work during formulation was adequate. In the case
of the JobStart Rollout TA, ADB strove to incorporate most of the lessons learned from the pilot.

66. Executing Agencies. The performance of DOF as executing agency for the IT-BPO TA was assessed
less than satisfactory, as DOF’s performance was found to be inadequate in monitoring TA
implementation, encouraging cooperation among agencies, and delivering the expected outcome and
outputs. In the other TA projects, the executing agencies’ performances were assessed satisfactory. The
DOT demonstrated strong leadership and ownership of the project, as it had coordinated effectively with
stakeholders to ensure cooperation within the tourism industry while its officers and staff assigned to
the project demonstrated commitment to the aspirations of the project. DOLE also demonstrated strong
ownership of the two JobStart TA projects that it executed. DOLE engaged well with stakeholders,
including the PESOs that were the implementing agencies of JobStart.

50
Republic Act No. 10844. An Act Creating the Department of Information and Communications Technology. 20 May 2016. Manila.
CHAPTER 5
Overall Assessment, Issues,
Lessons, and Follow-Up Actions
A. Overall Assessment

67. The summary ratings for the four TA projects are presented in Table 8. Of the three completed
TA projects, only the IT-BPO TA was assessed less than successful, while the others were rated successful.
The JobStart Rollout TA was assessed only for relevance and effectiveness as it is ongoing.

Table 8: Ratings of the Job Creation and Skills Development Technical Assistance Projects
Support for the
Strengthening Improving Employment Nationwide Rollout
Knowledge-Based Economic Competitiveness Facilitation for of JobStart
Evaluation and Social Development in Tourism Inclusive Growth Philippines
Criteria TCR TPER TCR TPER TCR TPER TPER
Less than
Relevance Not rated relevant Relevant Relevant Relevant Relevant Relevant
Less than
Effectiveness Not rated effective Effective Effective Effective Effective Effective
Less than
Efficiency Not rated efficient Efficient Efficient Efficient Efficient
Likely Less than likely Most likely Most likely Most likely Likely
Sustainability sustainable sustainable sustainable sustainable sustainable sustainable
Less than Less than
Overall Rating successful successful Successful Successful Successful Successful

Development Less than Less than


Impact Not rated satisfactory Satisfactory Satisfactory Satisfactory satisfactory
Performance of
recipient and
executing Less than
agency Satisfactory satisfactory Satisfactory Satisfactory Satisfactory Satisfactory

Performance of Partly Less than


ADB satisfactory satisfactory Satisfactory Satisfactory Satisfactory Satisfactory
ADB = Asian Development Bank, TCR = technical assistance completion report, TPER = technical assistance performance
evaluation report.
Source: Independent Evaluation Department.

68. Potential and limitation of TA projects. On the overarching question of the TPER, the evaluation
observed that potential for TA success was very much dependent on external factors such as sustained
public and private investment in the sector, established technical and administrative capacity in the local
institution, and strong political leadership within the government counterpart agencies. On the other
hand, TA projects should be much more grounded in solving specific issues. Some of the goals in these
cases were overambitious, making it difficult to attribute many of the higher-level outcomes directly to
the TA projects as described in their DMFs. A TA project should be designed based on a clear theory of
change with realistic outcomes and with the aim that it serves as a testbed for piloting innovations and
raising local institutional capacity to ensure that any successful innovations could be expanded upon
afterwards, either through local governments’ own initiatives or supported by new loans.
32 Job Creation and Skills Development in the Philippines

69. Shared innovation among the TA projects. Despite the inconsistent performance and outcomes
of the TA projects, they should be commended for demonstrating the impact of a shared innovation:
giving the employers a greater role in the planning stage of skills training. It had been generally noted
that most teachers and trainers face the same problem: they tend to teach what they know instead of
what their students need to learn. To counteract this, all four TA projects were designed to involve the
employers in the planning and management of the training programs. That helped keep the trainers
abreast of the changing technologies and equipment in use at the workplace, as well as to track what
occupations and skills are declining or rising in demand.

B. Issues
70. Procedural inefficiencies persist in ADB’s TA implementation, as not enough has been done to
streamline lending to LGUs. The Country Partnership Strategy Final Review Validation, 2011−2016 for
the Philippines noted that ADB should explore new ways to resolve the existing challenges in effectively
delivering traditional project loans, and especially when these are channeled through multiple
government agencies or LGUs,51 as were the cases for most of the TA projects reviewed. The evaluation
noted that, except for the case of the IT-BPO TA, most beneficiaries of the related TA projects attributed
high dropout rates among both trainees and employers to delays in training, usually caused by slow
disbursement of the TA project funds by the central government agencies. ADB needs to think beyond
simply providing support for nationally managed TA projects and instead begin preparing the
groundwork for streamlined, direct financing mechanisms for LGUs.

71. Appropriate certification of training courses was not incorporated into the project design of the
Tourism TA and the At-Risk Youth TA, affecting the TA projects’ effectiveness and sustainability. Despite
efforts to ease the burden for employers in coming up with training plans for both JSP and ISGS, without
standard templates or professional support, the learning curve proved to be too steep for SMEs, especially
those in rural areas. Also, without standardized training courses, JobStarters or employees ran the risk of
wasting time and effort undertaking non-standard training that would prove useful to only a very narrow
set of industry employers. Moreover, without standardized training courses, JobStarters or employees
ran the risk of limiting themselves to a very narrow slice of the job market. The Technical Education and
Skills Development Authority, as the government agency most qualified and best equipped to support
both the LGUs and the employers in ensuring quality technical training, should have been given a greater
role in supporting and defining the standards for the technical trainings in the TA projects. That would
have maximized the effectiveness and sustainability of the technical skills training support provided by
the TA. Closer cooperation with the Technical Education and Skills Development Authority during the
training planning phase of the TA projects could ensure (i) more consistent, higher-quality technical
training; (ii) greater likelihood of employees acquiring national certification upon completion of training;
and (iii) less administrative burden for DOLE, DOT, and employers of the trainees.

72. Inadequate monitoring of key indicators during implementation made it difficult for performance
measurement, thereby undermining the processes of learning and improving the programs while
undertaking them. TCRs were deficient in reporting the performance indicators as identified in the DMFs,
and some even failed to report detailed ratings for the TA projects. This could be attributed to a lack of
actual monitoring of the DMF indicators during TA implementation cycle. In preparing future TCRs,
reporting of these indicators and ratings thereof should be required to enable objective assessment of
project performance. Furthermore, the formulation and selection of the performance indicators for the
DMF should take into consideration the feasibility of the target as well as practicality of monitoring in
order to maximize the accuracy of performance measurement as well and the chances for learning
through evaluation.

51
IED. 2017. Philippines: Country Partnership Strategy Final Review Validation, 2011–2016. Manila: ADB.
Overall Assessment, Issues, Lessons, and Follow-Up Actions 33

C. Lessons
73. Table 9 summarizes the lessons for job creation and skills development as noted for each TAs,
which are included in Appendix 1. The paragraphs following the table contain universally applicable
lessons for the sector.

Table 9: Summary of Lessons from the Job Creation and Skills Development TA Projects
TA
Project Lessons
IT-BPO a. Clear governance and leadership are essential for successful TA implementation.
TA b. Feasibility survey can reduce the risk of an innovative intervention’s failing.
c. TA project planning should be realistic when it comes to resources and time.
Tourism d. Outcomes of capacity development for LGUs can be most sustainable.
TA e. Spillover from capacity development could bring about significant long-term impact.
f. Provision of career path is essential for retaining trained personnel.
g. Innovation needs to be flexible to stay pertinent.
h. Shift in the government’s policy could undermine the TA’s innovations.
i. Institutionalization of innovation is needed for resilience.
j. Support for independent business owners needs to be incorporated into the TA.
k. Networking and empowering of local communities are key to sustainable intervention.
At-Risk l. Institutionalized PESOs are needed as focal points for intervention.
Youth m. Coordinated public relations campaigns need to be included in future interventions.
TA and n. Consistent monitoring of the beneficiary performance is needed to promote accountability.
JobStart o. Greater incentivization is needed for small and medium-sized enterprise employers.
Rollout p. Improvement is needed in the process for identifying potential JobStarters.
TA q. LST-centric evolution of the JSP should be actively explored.
r. Strong ownership and quality control are needed for LST.
IT-BPO = information technology and business process outsourcing, JSP = JobStart Philippines, LGU = local government unit, LST
= life skills training, PESO = Public Employment Service Office, TA = technical assistance.
Source: Independent Evaluation Department. Appendix 11.

74. The innovativeness of TA cannot make up for a lack of preparedness or capacity of the developing
member country agencies involved. According to ADB’s Country Partnership Strategy: Philippines,
2018−2023, ADB will “pilot test an enterprise-led learning network project—an innovative financing
model for training workers in sectors with skill shortages through enterprise-led models.”52 Noting that
this was exactly what the less than successful IT-BPO TA had set out to do in 2012, ADB should take
extreme care not to repeat the same mistakes just for the sake of being innovative. As the initiative in
the partnership strategy aims to “contribute to programs dealing with the fourth industrial revolution,”
ADB should verify the soundness of the government’s policy framework and long-term strategy in any
pertinent nascent sector, carefully examine the feasibility of public–private partnership arrangements in
education and labor market programs, and especially make sure that both private and public sectors are
ready and willing to cooperate for better delivery of concrete and verifiable outputs and outcomes.

75. Clear implementation arrangements with executing and implementing agencies are essential for
the success of skills development projects. Implementation arrangements should have clear institutional
roles and responsibilities, and the executing agency should have a clear and strong mandate for
monitoring and enforcing these roles. Strong leadership by the executing agency that is supported by
technically capable implementing agencies is vital for successful implementation of a project. This is
illustrated by the less than successful implementation of the IT-BPO TA under the leadership of DOF.

76. Poor identification of relevant stakeholders can limit ADB’s engagement with them, critically
affecting the project’s effectiveness, participation and support of local businesses, and access to the
domestic job market. For the IT-BPO TA, there was no government agency with a clear mandate for the

52
ADB. 2018. Country Partnership Strategy: Philippines, 2018−2023 – High and Inclusive Growth. Manila (p. 11).
34 Job Creation and Skills Development in the Philippines

sector and too many implementing agencies were brought in to fill the vacuum with their various goals,
which led to conflicting agendas, adding to overall inefficiencies. On the other hand, the other three TA
projects did not identify sufficient partners outside DOLE, DOT, and LGUs. That meant the projects failed
to take advantage of networks that could have helped raise public awareness on the innovations or
ensure quality technical training.

77. Overly ambitious project design can cause the implementation of interventions at inappropriate
levels, resulting in suboptimal outcome for the project. Initiating and embedding RIA within the existing
DOLE and DOT frameworks and within the timespan of the TA projects was quite an ambitious
undertaking. Considering that RIAs are administratively and technically challenging, the project timeline
might have been too short. Also, most of the RIAs formulated by DOLE and DOT were not fully
implemented, because implementing the recommendations of the RIAs was often beyond the mandate
of each department. In contrast, the recommendations from RIAs at LGU level, such as in Puerto Princesa
and Tagbilaran, were mostly implemented because they required passage of local ordinances within the
purview of the LGUs. Reflecting upon how ARTA has been benchmarking RIA methodology from DOLE
and DOT, it might have been overly ambitious to include RIA into the TA projects.

78. Processes need to be simplified to minimize inefficiencies in scaling up pilots. Documentation


and reporting requirements for training participation were viewed as burdensome and presented an
entry barrier to ADB TA projects, discouraging potential employers and causing some to withdraw from
the program. This was especially true for SME employers who participated in ISGS or JSP and which had
limited personnel in their finance and human resource departments. Although executing agencies and
ADB might have been able to support and push a few dozen beneficiaries across the finish line during
the pilot implementation, one cannot expect large-scale rollout to be successful without first streamlining
and simplifying administrative procedures and requirements for the beneficiaries and implementing
partners.

79. Concerted effort is needed to raise public awareness about key innovations in skills development
projects. Advocacy and information dissemination campaigns should have been built into the designs of
the TA project to deepen its outreach. For example, many of the JobStarters were contacted not because
they were the most in need but because they had greater access to information such as social media,
chat groups, and personal networks. Project officers should support the PESOs in (i) diversifying channels
of promotion to include social media plus various networks and associations; (ii) seeking out and
proactively communicating with unemployed, at-risk youths; (iii) actively networking with local
employers and promoting participation in JSP; and (iv) sharing and cross-referencing potential candidates
for the various skills development and employment support programs within the PESO.

D. Follow-Up Actions
80. Lessons from previous evaluations should feed into scale-up efforts in similar sectors or regions.
In large TA projects incorporating innovations to be scaled up or rolled out at a nationwide scale, design
formulation should incorporate a rigorous impact evaluation component to determine the actual impact
of the program on beneficiaries. More importantly, key findings from TA projects should feed into the
design of the follow-up interventions, especially for large scale-ups like the JobStart Rollout TA. Although
an impact evaluation using randomized control trial was included in the At-Risk Youth TA and concluded
that “JSP significantly increased income levels but didn’t significantly improve employment levels,” the
JobStart Rollout TA was already in mid-implementation and could not incorporate appropriate design
revisions to improve employment levels for the youths as originally envisaged. Even though timely
feedback was impossible due to the JobStart Rollout TA’s project timeline, future implementations, or
expansion of JobStart should actively consider significant revisions of the JSP model in light of both the
impact evaluation and this TPER.
Overall Assessment, Issues, Lessons, and Follow-Up Actions 35

81. Institutionalization of the LST module should be promoted to maximize the impact and
sustainability of the JobStart TA projects. Among the several components within JSP, LST was repeatedly
mentioned by many stakeholders as being the most effective and innovative. There were PESOs that
succeeded in getting their JobStarters employed without the technical skills training and internship. This
low-cost variation of “LST-only training” for JSP has been successfully adopted in Taguig and General
Trias, both of which are highly developed urban centers with ready pools of well-developed employers.
In these areas, not only did the employers prefer to hire LST graduates as soon as possible but they also
had the capacity to provide in-house technical training without further support from the PESOs. It was
also noted that JSP is just one of many programs in a PESO’s portfolio supporting skills development and
job training. As LST is a unique innovation introduced within the JSP, however, it runs the highest risk of
being discontinued in PESOs at the end of the TA project cycle or JSP. This risk could be mitigated if the
LST module will be adopted by government agencies such as DOLE. The government can further expand
upon it by developing a localized LST module, spearheading the regular update and revision of LST
training manuals, hosting and implementing the training of trainers programs, ensuring the quality
control of LST programs, and acquiring funding to roll out the LST at a truly nationwide scale.
Appendixes
APPENDIX 1: FOCUS GROUP DISCUSSIONS

Date Location Group Type Number of Participants


10 Feb 2020 Panglao, Bohol Tourism-LGU 2
Tourism (Employers) 1
Tourism (Employees) 9
11 Feb 2020 Tagbilaran, Bohol JSP-PESO LGU 5
JSP (Employees) 9
JSP (Employers) 6
12 Feb 2020 Cebu City, Cebu Tourism-DOT 3
JSP-DOLE 3
JSP-PESO LGU 6
JSP (Employers) 2
JSP (Employees) 1
13 Feb 2020 Lapu-Lapu, Cebu Tourism-LGU 3
Tourism (Employers) 8
Tourism (Employees) 1
17 Feb 2020 Davao City Tourism-DOT 4
Tourism-LGU 4
Tourism (Employers) 6
Tourism (Employees) 7
18 Feb 2020 Tagum City, Davao del Norte JSP-PESO LGU 5
JSP (Employers) 4
JSP (Employees) 4
Panabo City, Davao del Norte JSP-PESO LGU 4
JSP (Employers) 5
JSP (Employees) 8
19 Feb 2020 Davao City, Davao JSP-DOLE 8
JSP-PESO LGU 10
JSP (Employees) 5
JSP (Employers) 5
20 Feb 2020 Puerto Princesa, Palawan JSP-PESO LGU & DOLE 4
JSP (Employees) 5
JSP (Employers) 5
21 Feb 2020 Puerto Princesa, Palawan Tourism-LGU 3
Tourism (Employees) 2
Tourism (Employers) 3
24 Feb 2020 Manila, National Capital Region JSP-DOLE 3
Quezon City, National Capital
JSP-PESO LGU 4
Region
JSP (Employees) 2
JSP (Employers) 1
Taguig City, National Capital
26 Feb 2020 JSP-PESO LGU 4
Region
IBPAP 3
27 Feb 2020 General Trias, Cavite JSP-DOLE 2
JSP-PESO LGU 5
JSP (Employees) 2
JSP (Employers) 3
28 Feb 2020 San Fernando, Pampanga JSP-DOLE 5
JSP-PESO LGU 6
JSP (Employees) 6
JSP (Employers) 8
Total 48 Focus Groups 214
DOLE = Department of Labor and Employment, DOT = Department of Tourism, IBPAP = IT & Business Process Association of the
Philippines, JSP = JobStart Philippines, LGU = local government unit, LST = life skills training, PESO = Public Employment Service
Office.
Source: Independent Evaluation Department.
APPENDIX 2. DESIGN AND MONITORING FRAMEWORKS OF TECHNICAL
ASSISTANCE PROJECTS

Table A2.1 Design and Monitoring Framework for TA 8164—Strengthening Knowledge-Based


Economic and Social Development
Technical Assistance
Completion Report Independent Evaluation
Design Targets (July 2018) (March 2020)
Impact Philippine education Not reported. Achieved. Philippine
Improved alignment of system scoring at least education score by the
higher education 4.50 on the Institute for Institute for Management
programs with needs of Management World Development was
the economy Development World 5.24 (2018).a However,
Competitiveness Online impact indicator cannot be
Database by 2018, up solely attributed to the
from 4.03 in 2009 project.
Outcome
A replicable and IT-BPO industry-designed Partly achieved. Number Partly achieved. Indicator
sustainable system of ICT- courses adopted in at of designed courses not closely monitored, but
enabled knowledge hubs least 3 HEIs by Q3 2015. adopted in HEIs not there are indications that
developed for the reported. UPOU has industry-designed courses
improved teaching and developed a strong were adopted in HEIs.
learning of IT-BPO repository of digitized UPOU conducted both
industry-designed business communication face-to-face and online
curricula in HEIs. and service management models with teachers from
courses, and the 25 schools. It was not
knowledge hub provided clear, however, the extent
the framework for to which the HEIs adopted
sustainability of these the industry-designed
courses and continued courses. Sustainable and
alignment with the needs replicable knowledge hubs
of the IT-BPO industry. for IT-BPO were not fully
realized.
Adoption of GCAT in Not achieved. Adoption Not achieved. Schools
selected HEIs by Q3 2015 was no longer relevant were not ready to adopt
due to preference for the tool due to cost, as
other assessment tools. well as lack of
infrastructure and policy.

Outputs
1. Access to knowledge Business model for Partly achieved. Business Partly achieved. Business
resources for teaching operating and sustaining model was developed for model was conceptualized
and learning IT-BPI the knowledge hubs operating and sustaining but not fully implemented.
industry-designed developed by Q1 2013 knowledge hubs. Initial One online knowledge hub
courses increased target was to establish at at UPOU and a physical
least three knowledge hub in IBPAP were
hubs but only one online completed. The target was
knowledge hub was to establish at least three
established at UP Open knowledge hubs in
University and a physical selected HEIs.
hub at BPAP’s offices.
Digitized teacher training Achieved. Digitized Achieved. UPOU digitized
materials and study teacher training materials all five eSMP courses,
modules incorporated in and five study modules which were offered online.
the knowledge hubs by incorporated into these
Q3 2014 hubs and offered online.
Appendix 2: Design and Monitoring Frameworks of Technical Assistance Projects 39

Technical Assistance
Completion Report Independent Evaluation
Design Targets (July 2018) (March 2020)
2. Higher education 900 faculty members Partly achieved. Teacher Partly achieved. Blended
curricula and from participating HEIs, certification conducted teaching was conducted
instruction enhanced of which at least 50% are for 379 faculty members for certification of 379
women, completing (59.9% female) using faculty members against a
online teacher training online teacher training target of 900. Of these,
programs on IT-BPO programs. 59.9% were female
industry-designed against the target of 50%
courses by Q2 2015 female.

3,000 students, of which Partly achieved. Partly achieved. 2,276


at least 50% are females, 2,276 (48.9% women) students completed online
complete online learning students completed learning modules, of
modules and study online learning modules which 48.9% were women
guides on IT-BPO and study guides on IT- (against target of 50%).
industry-designed BPO-designed courses.
courses by Q2 2015
3. Partnerships between At least 3 partnership Achieved. Partnership Achieved. Several
industry and academic agreements involving framework developed. memoranda of agreement
institutions HEIs and industries Partnerships between were signed between IT-
strengthened signed by Q4 2012 HEIs and industry were BPO companies and
successful in securing schools.
additional training and
employment
opportunities for
students.
At least 2 twinning Not achieved. Twinning Not achieved.
arrangements between partnership not
foreign and domestic established.
HEIs established by Q2
2014
eSMP = electronic service management program, GCAT = Global Competitiveness Assessment Tool (a test for basic competency
of entry-level employees.), HEI = higher education institution, IBPAP = IT & Business Process Association of the Philippines, ICT =
information and communication technology, IT-BPO = information technology and business process outsourcing, UPOU =
University of the Philippines Open University.
a
Institute for Management Development, World Competitiveness Ranking, Philippines, 2019 (www.imd.org/wcc).
Sources: ADB. 2018. Technical Assistance to the Republic of the Philippines for Strengthening Knowledge-Based Economic and
Social Development. Manila; IT & Business Process Association of the Philippines. 2016. Technical Assistance Consultant’s Report:
Philippines Strengthening Knowledge-Based Economic and Social Development. Manila; University of the Philippines Open
University. 2016. Technical Assistance Consultant’s Report: Philippines Strengthening Knowledge-Based Economic and Social
Development. Manila.
40 Job Creation and Skills Development in the Philippines

Table A2.2 Design and Monitoring Framework for TA 8334—Improving Competitiveness in Tourism
Technical Assistance
Completion Report Independent Evaluation
Design Targets (May 2018) (March 2020)
Impact (By 2020) Not reported. Partly achieved. During
Employment increased 2012–2018, employment in
Increased above the long-term tourism industry grew by an
employment in the average growth rate average of 2.7% (Philippine
tourism industry (2000–2010 baseline: Statistics Authority).
average employment
growth of 3.5%)
Outcome
Improved By February 2017 Achieved. Ranking in the Achieved. In 2019, ranking
competitiveness of Ranking in the World World Economic Forum in travel and tourism
Philippine tourism Economic Forum travel and ranking increased from 94 competitiveness index
tourism competitiveness out of 139 countries to 82 increased to 74 out of 140
index improved by at least among 140 countries. countries.
15 places (2011 baseline:
94th of 139 countries)
Business cost of Not reported. Achieved. Of the 10 RIAs
compliance with formulated at the national
regulations in the tourism level, 4 were implemented.
industry reduced by 15% The 6 RIAs not implemented
(baseline 2013 business were beyond the purview of
regulation survey) DOT. In Puerto Princesa, the
updated Tourism Code was
implemented. Those RIAs
implemented helped reduce
business cost of compliance
in tourism.
Outputs
1. Regulatory By February 2017 Achieved. Achieved.
impact Annual work plans for
assessment 2012–2015 approved
program (2011 baseline: no data
implemented available)*
10 RIAs completed and Partly achieved. 10 RIS and Achieved. 10 RIS completed
published on DOT website 4 RIAs completed but only 4 were
(2011: no data available)* implemented.
At least 50 staff at DOT Achieved. 400 persons Achieved.
trained in RIA process and trained in RIA including
tools (2011 baseline: no 120 LGU staff
data available)*
Business licensing reform Not reported. Completion Partly achieved. Only 2 LGUs
action plans endorsed by report did not report that implemented RIAs. Actions
four pilot LGUs reform actions plans were were taken in Puerto
endorsed. 600 businesses Princesa to pilot
were surveyed as part of implementation of the red
the Business Licensing and tape reduction strategies
Permits Survey to inform and RIS through issuance of
selection of grantees and local ordinance. Panglao
implement RIA scheme in incorporated RIA in the
LGUs. municipal provincial
policymaking process.
Appendix 2: Design and Monitoring Frameworks of Technical Assistance Projects 41

Technical Assistance
Completion Report Independent Evaluation
Design Targets (May 2018) (March 2020)
2. Hotel and resort By February 2017 Achieved. National Achieved. Revised and
quality assurance Accreditation system accommodation standards published National
and accreditation established providing for revised and published. Accommodation Standards.
system certification of hotel and Mabuhay standards Mabuhay standards
implemented in resort standards (2012 developed for small developed for small
four regions baseline: no data accommodation providers. accommodation providers.
available)* Quality assurance manual Quality assurance manual
developed. developed.
100 hotels accredited Not reported. Completion Achieved. 2,146 hotels
under the new national report did not report on accredited under the new
hotel quality assurance the number of hotels quality assurance system
system pilot (2012 accredited. 25 small during 2012–2018.
baseline: no data accommodation providers
available)* assessed using Mabuhay
standards.
At least 60 assessors Not reported. Only the 35 Achieved. 100 DOT and
certified (2011 baseline: no DOT assessors trained using industry third party assessors
data available) Mabuhay standards were trained in the revised
reported. National Accommodation
Standards. 35 DOT assessors
DOT accreditation trained in Mabuhay
governance reviewed standards.
including
recommendations provided
for further improvement.
3. Tourism industry (By February 2017) Achieved. 7,550 program Achieved. 7,500 personnel
skills At least 5,000 tourism participants trained, of trained, 48 grantees.
development workers accessed skills which 47.3% were women
program development through the and 52.7% men. Tourism
developed and tourism industry skills Industry Skills Development
piloted in four development program Program launched. Tourism
regions pilot, with at least 55% enterprise skills survey
women workers (2011 implemented.
baseline: no data Implementation and pilot
available)* testing of ISGS, which
awarded 49 grants.
At least 500 tourism No data presented. No data.
professionals achieved
mutual recognition under
ASEAN agreement (2011
baseline=no data
available)*
Human resource strategy Not reported in completion Achieved. DOT completed
developed (2011 baseline: report. the first tourism human
no data available)* resource development
strategy and action plan,
2015–2020.
ASEAN = Association of Southeast Asian Nations, DOT = Department of Tourism, HEI = higher education institution, ISGS =
industry skills grant scheme, LGU = local government unit, RIA = regulatory impact assessment, RIS = regulatory impact statement.
* Work commenced in 2011 or 2012 where relevant.
Sources: ADB. 2018. Technical Assistance Completion Report: Improving Competitiveness in Tourism . Manila; University of
Queensland. Final Report: Improving Competitiveness in Tourism Project Philippines. Queensland; Independent Evaluation
Department.
42 Job Creation and Skills Development in the Philippines

Table A2.3 Design and Monitoring Framework for TA 8335—Employment Facilitation for Inclusive
Growth
Technical Assistance
Completion Report * Independent Evaluation
Design Targets (April 2018) (March 2020)
Impact By 2019 Not achieved. Youth full-
Employability of at- Youth wage employment time wage employment
risk youths enhanced increased by 5.0% per increased by 1.29% per
annum (1991–2008) annum during 2010–2015.
baseline: 3.4% per annum)
Job placement rate for Not reported. Impact evaluation indicated
youths received MyFirstJob that JobsStart pilot program
services 20% higher than for significantly increased income
similar group not receiving levels but did not appear to
MyFirstJob services influence employment levels
in a significant manner.
Job placement rate for Not reported. No data.
youths receiving MyFirstJob
services in jobs with social
protection benefits 20%
higher than for similar group
not receiving MyFirstJob
services
Outcome
Capacity of PESOs to By 2017 Overachieved. The number Overachieved. The number of
provide employment Number of persons finding of persons finding jobs persons finding jobs through
improved jobs through PESOs through institutionalized institutionalized PESOs grew
increased by 10.0% per PESOs increased by 15% by 15% during 2005–2010 to
annum (2010 baseline: from 1,936 per PESO during 2010–2015.
1,000 per PESO) 2005–2010 to 3,844 per
PESO from 2010–2015.
Participating PESOs Not reported. Unable to verify. No data for
increased the number of PESOs not offering
employers using their MyFirstJob.
services in the MyFirstJob by
20% over PESOs not offering
the MyFirstJob project
Outputs
1. Capacity for labor By February 2017 Achieved. Support to DOLE Achieved.
policy analysis and Annual regulatory impact in regulatory review of its
formulation assessment (RIA) work plans labor code following the
strengthened for 2013–2015 approved department’s RIA template.
(2011 baseline: no data
available)
Ten regulatory impact Partly achieved. DOLE Achieved.
assessments on the Labor produced 9 RIAs on selected
Code of the Philippines labor regulations in the
completed and published on Philippine labor code.
DOLE website (2011
baseline: no data available)
At least 60 DOLE staff Number of trained staff not Achieved. 10 training activities
trained on RIA processes and reported in completion conducted must have covered
tools, monitoring and report. DOLE staff trained in DOLE staff from the national
evaluation impact evaluation RIA processes and tools. to regional level.
methodologies, and policy
development (2011 baseline:
no data available)
Appendix 2: Design and Monitoring Frameworks of Technical Assistance Projects 43

Technical Assistance
Completion Report * Independent Evaluation
Design Targets (April 2018) (March 2020)
At least five labor policy Not reported. Partly achieved. Nine policy
research studies completed research studies were
and published (2011 undertaken for the RIAs.
baseline: no data available) Outputs were not published
because no RIAs were
implemented.
Impact evaluation Not reported. Achieved. Impact evaluation
assessment reports for at of JobStart pilot program
least one labor or conducted.
employment program
completed and published
(2011 baseline: no data
available)
Protocols for early Not reported. Not achieved. No information
employment recovery available.
program prepared (2011
baseline: no data available)
2. My FirstJob pilot Number of institutionalized Achieved. There was an Achieved. Of the four pilot
project PESOs with standard labor increase in number of PESOs PESOs, two improved their
implemented market information and with labor market LMI and employment
employment intermediation information and mediation by at least 75% and
systems in place increased to employment intermediation one improved by 16%.
100 (2011 baseline: 89) systems in place with the Standard labor market
development of electronic information system and
skills registry system (eSRS) reports were generally in
that automated manual place.
process and made labor
market information available
on an online platform.
At least 1,600 youth Partly Achieved. 1,413 Achieved. 1,819 beneficiaries
participants complete one or participants completed life completed full cycle during
more of the following skills training. 37.5% (or 2014–2015.
services: career counselling, 537) of 1,432 candidates
vocational training, and available for placement
workplace experience (2011 completed technical
baseline: no data available) training. 688 JobStarters
completed technical training
through 50 memoranda of
agreement with employers.
Gender responsive manual Not reported. Achieved. Gender action plan
for employment services developed.
produced
Impact evaluation reports Not reported. Achieved. Impact evaluation
for MyFirstJob pilot project completed.
completed
DOLE = Department of Labor and Employment, PESO = Public Employment Service Office, RIA = regulatory impact assessment.
a
Data not presented in the technical assistance completion report were taken from the project completion report on Increasing
Competitiveness for Inclusive Growth, which the TA supported.
Source: ADB. 2018. Technical Assistance Completion Report: Philippines Employment Facilitation for Inclusive Growth. Manila.
44 Job Creation and Skills Development in the Philippines

Table A2.4 Design and Monitoring Framework for TA 8984—Support for the Nationwide Rollout of JSP
(As of 31 December 2018)
Impact: The TA is aligned with the Nationwide Rollout of JSP based on the Philippine Development Plan 2011–2016
and will contribute to the government’s efforts to increase youth employment. In particular, the project will support
the government’s efforts to establish the nationwide institutional setup for the JSP rollout (2015–2020).

Performance Indicators with Targets Status


Project Results Chain and Baselines (DOLE)
Outcome
JSP rollout by DOLE and PESOs By December 2021: a. Achieved. 36 LGUs signed MOA
commenced a. 24 LGUs signed MOUs with with DOLE for JSP since
DOLE to implement JSP Program implementation.
in their PESOs b. Achieved. 21,063 at-risk youth
b. At least 15,000 at-risk youth across 36 PESOs accessed JSP services,
access JSP services through 24 of which 58% are female (cumulative).
PESOs and graduate from JSP
Outputs
1. Capacity development of JSP By December 2020: Achieved. JSP unit established at
units at DOLE headquarters and 1.a. JSP unit established in DOLE DOLE-BLE.
RDOs strengthened 1.b. JSP established in 4 DOLE RDOs Achieved. JSP unit established in
DOLE-ROs (with ongoing request for
permanent plantilla positions).
1.c. 100 DOLE staff trained in JSP Achieved. 461 trained JSP unit staff at
business operations (SOPs, SRS, DOLE-Head Office and Regional
employer MOAs and training plans, Office/Field Offices delivering services.
financial management, and the
monitoring system), at least 55% of
staff of which are female
2. Life skills for employability By December 2020 Ongoing. 74 trained PESO staff
training curriculum rolled out 2.a. 300 staff from DOLE, PESO and delivering LST.
nationally training institutes trained as trainers
in life skills delivery, at least 55% of
which are female
2b. At least 15,000 youth access life Achieved. 13,158 youth trained and
skills training course, at least 55% of completed LST.
which are female
3. Capacity of 24 PESOs in JSP By December 2020 Achieved. JSP established in 35 PESOs.
implementation developed 3a. JSP established in 24 PESOs
3b. At least 240 PESO staff trained in Ongoing.
JSP business operations (SOPs, SRS,
employer MOAs and training plans,
financial management and
monitoring systems), at least 55% of
which are female
3c. At least 80 PESO staff trained in Ongoing. 46 PESO trained in career
career guidance and coaching guidance and coaching techniques.
techniques, at least 55% of which
are female
3d. SRS (Public Employment Achieved. Public employment
Information System) implemented information system implemented and
and operational in all 24 PESOs operational in all 35 PESOs.
4e. At least 10 employers Achieved. 440 total employers
prequalified to participate in JSP in participated in JSP in 35 PESOs.
each of the 24 PESOs
BLE = Bureau of Local Employment, DOLE = Department of Labor and Employment, JSP = JobStart Philippines, LGU = local
government unit, LST = life skills training, MOA = memorandum of agreement, MOU = memorandum of understanding, PESO
= Public Employment Service Office, RDO = regional DOLE office, SOP = standard operating procedure, SRS = Skills Registry
System.
Sources: ADB. 2015. Technical Assistance to the Republic of the Philippines for the Support for the Nationwide Rollout of JobStart
Philippines. Manila; and Department of Labor and Employment.
APPENDIX 3: SUMMARY OF ACCREDITED HOTELS AND RESORTS

Number of Accredited Hotels and Resorts under the New


Quality Assurance System (2012–2018)
Year Hotels Resorts
2012 202 176
2013 236 189
2014 345 273
2015 295 289
2016 477 376
2017 179 112
2018 412 302
Total 2,146 1,717
Source: Department of Tourism.
APPENDIX 4. LIST OF REGULATORY IMPACT ASSESSMENT STATEMENTS

Table A4.1 Department of Tourism: Regulatory Impact Statements


Title Objective
1. Rules and Regulations Governing the To ensure that the health and safety of the sports SCUBA divers in
Business of Sports in SCUBA Diving in the the Philippines are appropriately managed and that persons
Philippines operating SCUBA businesses have the right skills and are ethical
practitioners.
2. Cost Recovery for Department of Identify mechanism and evaluate appropriate fee structures on
Tourism Hotel Accreditation accreditation to recover government costs in providing accreditation
services to primary tourism enterprises.
3. Rules and procedures governing the To protect marine wildlife and its habitats from tourism activities and
conduct of marine wildlife tourism to ensure the safety of tourists.
interactions in the Philippines
4. Travel Tax – Processing and Collection Reform the processing and collection of travel tax to (i) minimize cost
to the government and taxpayers, (ii) simplify and streamline travel
tax processing, and (iii) ensure sufficient funds collection to be used
for the purposes of the Tourism Act 2009.
5. Special Resident Retiree’s Visa Evaluate the proposal of the Philippine Retirement Authority (PRA) to
Application Fee adjust the Special Resident Retirees’ Visa Application Fee.
6. Duty Free Philippines – Improvement The objectives were to (i) augment the service facilities provided to
on Shopping Privileges tourists, (ii) improve the duty free shopping experience, (iii)
increasing foreign exchange earnings and revenue, and (iv) increase
the attractiveness of the country as a tourist destination.
7. Investment Options – Philippine Provide guidance on how to evaluate Philippine Retirement
Retirement Authority Authority’s proposal of providing bed and breakfast facilities for
current and prospective retirees.
8. Review of Ecotourism Standards Identify an option that would best achieve the following: (i) support
government policy to make the country a leading ecotourism
destination; (ii) increase resources from government, development
partners, and private companies; and (iii) provide efficiency in
administration and compliance of standards for ecolodges and
ecoguides.
9. Foreign Retiree Tracking System – Review the Philippine Retirement Authority’s tracking system of
Philippine Retirement Authority foreign retirees.
10. Small Accommodation Standards Identify an option that would best achieve the following: (i) support
(Mabuhay Standards) government policy on accreditation of small accommodation, (ii)
provide accommodation standards and criteria relevant to market
conditions, and (iii) provide efficiency and administration and
compliance with accommodation standards.
Source: Department of Tourism.
47 Job Creation and Skills Development in the Philippines

Table A4.2 Department of Labor and Employment: Regulatory Impact Statements


Title Objective
1. Apprenticeship (Technical Vocational Address the labor market mismatch, high and increasing number of
and Skills Development Authority) people not in employment, education, or training, and low
participation rate in existing apprenticeship program.
2. Security of Tenure (Bureau of Local Identify best option for rigidities in firing: costly and lengthy
Employment) litigation; proliferation of short-term employment; weakened security
of tenure; and weak Philippine competitiveness.
3. Employment Insurance (Institute for Address the problem of no unemployment related benefit scheme
Labor Studies) that facilitates re-employment and provides income support to
involuntarily unemployed workers. Present social security laws do not
cover unemployment as one of the contingencies.
4. Magna Carta for Seafarer (Bureau of To ensure protection and decent work for Filipino seafarers and to
Workers with Special Concerns) promote compliance with maritime regulations while minimizing
burden on the industry so they can remain competitive and
productive.
5. Public Employment Service Office To ensure that the employment programs of the Department reach
(Bureau of Local Employment) the target beneficiaries through the help of the Public Employment
Service Office (PESO). Strengthen the PESOs in performing their
mandated functions.
6. Productivity (National Wages and Identify legislative impediments to workers and enterprises
Productivity Commission) productivity.
7. Special Program for the Employment Address the following problems: (i) lack of mechanisms for
of Students (Bureau of Local facilitating absorption of trainees into the labor force, (ii) delay in
Employment) process-cycle time, (iii) difficulties encountered by potential
beneficiaries in complying with the requirements, (iv) high
government subsidy instead of maximizing private sector
participation, and (iv) lack of participation from small enterprises.
8. Overseas Employment (Philippine Address the problem of reported cases of abuses, exploitation, and
Overseas Employment Administration) violation of rights of migrant workers and overseas foreign workers.
9. Article 40 of Labor Code (Bureau of Address the issues on shortage of highly specialized skills, anticipated
Local Employment) increased mobility within an integrated Association of Southeast
Asian Nations (ASEAN) agreement, restrictions in complying with the
commitments on movement of natural persons, prolonged vacancies
for occupations requiring highly specialized skills, and restrictions on
employment of foreign nationals.
Source: Department of Labor and Employment.
APPENDIX 5. DOLE RIA CAPACITY BUILDING ACTIVITIES

Training Activity Date


1. RIA Training Session 30 April 2012
2. RIA Training Session 21 May 2012
3. DOLE Regional Seminar–Workshop in Mindanao 30 July 2012
4. DOLE Regional Seminar–Workshop in Visayas 31 July 2012
5. DOLE Regional Seminar–Workshop in Luzon 12 August 2012
6. DOLE RIA Technical Learning Sessions on Guidelines and Forms 22 November 2012
7. Convention of the RIA Committee and Constitutions of RIA Task Teams 20 February 2014
8. DOLE Seminar–Workshop on RIA 12–14 March 2014
9. DOLE Seminar–Workshop on RIA 21–23 May 2014
10. NEDA–DOT–DOLE–ADB Retreat Stock–take and Future Directions of
Regulatory Impact Analysis in the Philippines 29–30 April 2015
ADB = Asian Development Bank, DOLE = Department of Labor and Employment, DOT = Department of Tourism, NEDA = National
Economic and Development Authority, RIA = regulatory impact assessment.
Sources: Department of Labor and Employment; and Institute for Labor Studies.
APPENDIX 6. JOBSTART SUMMARY PERFORMANCE

LST
Registered Women Finishers With
Participating Registered Enrolled Finished that Finished TTI that Job National
Employers* for JSP in LST LST Finished Enrolled in LST Graduates Finished Placement Certificate
Year (number) (number) (number) (number) LST (%) LST (%) (number) (number) TTI (%) Rate** (%) (number)
2014–2015 50 5,424 1,819 1,413 78 34 na 539 38 75 0
2016 137 4,989 3,398 2,989 88 68 56 598 20 70 49
2017 174 9,221 7,803 7,077 91 85 56 2,580 36 68 410
2018 48 2,493 1,810 1,770 98 73 61 972 55 73 266
2019 72 2,156 1,673 1,570 94 78 58 770 49 67 na
Total 481 24,283 16,503 14,819 90 68 58 4,689 32 71 725
JSP = JobStart Philippines, LST = life skills training, na = data not available, TTI = technical training and/or internship.
* Employers with Memorandum of Agreement.
** Refers to beneficiaries that completed LST and found jobs, absorbed by partner employer, found jobs at other employers, and found jobs after referral to other programs.
Sources: JobStart Philippines, Bureau of Local Employment, Department of Labor and Employment.
APPENDIX 7: LIST OF PARTICIPATING PESOS IN JOBSTART

Region LGU-PESO
National Capital Region Caloocan City
Mandaluyong City
Muntinlupa City
Pasig City
Pasay City
Paranaque City
Makati City
Taguig City
Quezon City
Cordillera Autonomous Region Baguio City
Region 1 Rosales City
Dagupan City
Region 2 Santiago City
Tuguegarao City
Region 3 San Fernando City
Municipality of Marilao
Region 4 Binan City
General Trias City
Puerto Princesa City
Region 5 Legazpi City
Region 6 Iloilo Province
San Carlos City
Region 7 Cebu City
Dumaguete City
Bohol Province
Region 8 Tacloban City
Region 9 Pagadian City
Region 10 Cagayan de Oro City
Municipality of Manolo Fortich
Region 11 Davao City
Panabo City
Tagum City
Region 12 General Santos City
Kidapawan City
Region 13 Agusan del Sur Province
LGU = local government unit, PESO = Public Employment Service Office
Source: Department of Labor and Employment.
APPENDIX 8. TOURISM INDUSTRY EMPLOYMENT AND SHARE IN GROSS DOMESTIC PRODUCT

Indicator 2012 2013 2014 2015 2016 2017 2018 Average


Employment in tourism industry (‘000) 4,561 4,709 4,819 4,971 5,224 5,268 5,365 4,988
Share of tourism in total employment (%) 12.1 12.4 12.7 12.8 12.8 13.1 13.0 12.7
Growth of employment in tourism industry (%) - 3.2 2.3 3.2 5.1 0.8 1.8 2.8
Share of tourism to gross domestic product (%) 7.9 8.2 9.0 10.1 10.7 12.2 12.7 10.1
Sources: Labor Force Survey, Annual Survey of Philippine Business and Industry, and Census of Philippine Business and Industry of the Philippine Statistics Authority.
APPENDIX 9. NUMBER OF INBOUND VISITORS ARRIVALS, 2015–2019

Year Number Growth (%) over


previous year
2015 5,360,682
2016 5,967,005 11.31
2017 6,620,908 10.96
2018 7,168,467 8.27
2019 8,260,913 15.24
Average 6,675,595 11.44
Source: Department of Tourism.
APPENDIX 10. STATISTICAL ANALYSIS RESULT FROM DEPARMENT OF LABOR AND EMPLOYMENT’S JOBSTART
PHILIPPINES DATA

Group 1 Group 2 Statistical


Variables Obs. Mean Std. Err. Obs. Mean Std. Err Significance
01. Male Employment Rate (Post-LST vs. Later) 81 34.9% 2.2% 81 22.8% 2.4% ***
02. Female Employment Rate (Post-LST vs. Later) 81 37.7% 2.2% 81 21.2% 2.4% ***
03. Employment Rate (Post-LST vs. Later) 81 36.4% 2.1% 81 21.7% 2.3% ***
04. Male Employment Rate for Pilot (Post-LST vs. Later) 12 46.4% 5.3% 12 13.8% 4.5% ***
05. Female Employment Rate for Pilot (Post-LST vs. Later) 12 47.9% 5.2% 12 12.3% 3.9% ***
06. Employment Rate for Pilot (Post-LST vs. Later) 12 47.0% 5.1% 12 12.6% 4.0% ***
07. Male Employment Rate for Rollout (Post-LST vs. Later) 69 32.9% 2.4% 69 24.4% 2.7% *
08. Female Employment Rate for Rollout (Post-LST vs. Later) 69 35.9% 2.3% 69 22.8% 2.7% ***
09. Employment Rate for Rollout (Post-LST vs. Later) 69 34.5% 2.3% 69 23.2% 2.6% **
10. Post-LST Male Employment Rate (Pilot vs. Rollout) 12 46.4% 5.3% 69 32.9% 2.4% *
11. Post-LST Female Employment Rate (Pilot vs. Rollout) 12 47.9% 5.2% 69 35.9% 2.3% -
12. Post-LST Employment Rate (Pilot vs. Rollout) 16 41.5% 4.9% 69 34.5% 2.3% -
13. Non-Post-LST Male Employment Rate (Pilot vs. Rollout) 12 13.8% 4.5% 69 24.4% 2.7% -
14. Non-Post-LST Female Employment Rate (Pilot vs. Rollout) 12 12.3% 3.9% 69 22.8% 2.7% -
15. Non-Post-LST Employment Rate (Pilot vs. Rollout) 12 12.6% 4.0% 69 23.2% 2.6% -
16. Untraced Male Jobstarter Ratio (Pilot vs. Rollout) 12 39.9% 4.6% 69 42.7% 2.9% -
17. Untraced Female Jobstarter Ratio (Pilot vs. Rollout) 12 39.7% 4.4% 69 41.3% 2.9% -
18. Untraced Jobstarter Ratio (Pilot vs. Rollout) 12 40.3% 4.2% 69 42.2% 2.8% -
19. All Employed Male Ratio (Pilot vs. Rollout) 12 60.1% 4.6% 69 57.3% 2.9% -
20. All Employed Female Ratio (Pilot vs. Rollout) 12 60.3% 4.4% 69 58.7% 2.9% -
21. All Employed Ratio (Pilot vs. Rollout) 12 59.7% 4.2% 69 57.8% 2.8% -
22. Post-LST Employment Rate (Male vs. Female) 81 34.9% 2.2% 81 37.7% 2.2% -
23. Non-Post-LST Employment Rate (Male vs. Female) 81 22.8% 2.4% 81 21.2% 2.4% -
24. Untraced Jobstarter Ratio (Male vs. Female) 81 42.3% 2.6% 81 41.1% 2.5% -
25. All Employed Ratio (Male vs. Female) 81 57.7% 2.6% 81 58.9% 2.5% -
LST = life skills training, Obs. = observations, Std. Err. = standard error.
*, **, *** = difference is statistically significant at the 90%, 95%, or 99% level, respectively.
Source: Department of Labor and Employment, JobStart.
APPENDIX 11: LESSONS FROM THE JOB CREATION AND SKILLS DEVELOPMENT
TECHNICAL ASSISTANCE PROJECTS
TA
Project Lessons
IT-BPO a. Clear governance and leadership are essential for successful TA implementation. The TA lacked a
TA governmental agency with a clear mandate to lead the IT-BPO sector at the time of TA
implementation. The project’s implementation progress was overseen by DOF, which provided little
guidance or coordination for the three implementing agencies. This resulted in the departure of
one implementing agency and failure to deliver the majority of outcomes.
b. Feasibility survey can reduce the risk of an innovative intervention’s failing. Despite the efforts by
implementing agencies to develop and roll out online courses within the TA project cycle, provision
of training opportunities to rural regions through both online and physical knowledge hubs proved
impractical due to limited Internet bandwidth in the region. The situation has not improved
significantly years after TA completion, which begs the question as to whether the Philippines was
ready for such innovation in the first place.
c. TA project planning should be realistic when it comes to resources and time. Capacity development
in the IT-BPO sector required closely coordinated improvements in policy, training program, and
infrastructure. Assuming or expecting that policy and infrastructural prerequisites would fall into
place once ADB provided the training program was overly ambitious, especially with just a $0.5
million, 4-year TA project. More practically, this TA should have been a simple policy intervention
with a capacity development component for government counterparts and concluded with the
delivery of a long-term policy framework and preliminary plans for a pilot.
Tourism d. Outcomes of capacity development for LGUs can be most sustainable. The Panglao municipal
TA officers mentioned how the RIA framework was successfully incorporated into the municipal
policymaking process, and, as a result, more RIAs were being undertaken leading to innovation in
tourism operations, such as an online reservation and quota management system for scuba divers.
Tourism service quality and accreditation standards have been continually updated with
environmental, governance, and customer handling requirements while being enforced through
adoption by the LGUs of a “no accreditation, no permit” policy.
e. Spillover from capacity development could bring about significant long-term impact. In Puerto
Princesa, RIA implementation was successful when all the LGUs got involved in the pilot TA and
witnessed firsthand how RIA helped reduce inherent systematic inefficiencies and bureaucratic
processes. Years after completion of the TA, the LGU has continued improving its business
processes, establishing a “Business One-Stop Shop” to reduce paperwork and time needed by local
small and medium-sized enterprises for business registration and license renewal.
f. Provision of career path is essential for retaining trained personnel. The most resilient of trainees
were those given enough recognition for their developed skills and who also were fortunate
enough to be promoted by their employers. Despite seeing more than half of their training cohorts
leave for better paying jobs in other, larger cities or countries, those who remained expressed high
levels of loyalty, satisfaction, expertise, and eagerness to share their knowledge and skills with
younger, less experienced colleagues as trainers of trainees.
g. Innovation needs to be flexible to stay pertinent. The TA’s innovative approach to selection of
training programs gave an unprecedented level of control and ownership to the owners of the
local tourism sector operators. However, ongoing support from DOT for a follow-up to ADB’s
innovative program has shifted the control to associations of resort owners in order to improve
efficiency in coordinating selection of the training programs and to ensure the participation and
access to the support for the smaller resorts and establishments.
Appendix 11: Lessons from the Job Creation and Skills Development Technical Assistance Projects 55

TA
Project Lessons
h. Shift in the government’s policy could undermine the TA’s innovations. DOT had intended to
sustain the innovations introduced by ADB’s TA through the TISP, but, due to changes in
administration, the overall policy direction had shifted. As such, the following variations to the
implementation guidelines were introduced into the TISP: (i) allocation of equal amount of budget
per region, regardless of each region’s capacity or need; (ii) cost sharing by the employers was no
longer required in applying for the TISP grant; and (iii) a performance indicator based on number
of trainings completed and number of participating trainees. The resulting iteration of DOT’s TISP
has seen the innovative aspect of the TA significantly undermined, as TISP incentivized regional
DOT offices to implement more low-cost, low-tech basic trainings that cater to a larger base rather
than offering customized, cutting-edge trainings to meet the needs of a specific group of
employers.
i. Institutionalization of innovation is needed for resilience. It was noted that many LGUs had
complete personnel turnover following the results of the May 2019 local elections, resulting in
significant loss of institutional memory concerning ADB’s TA and related innovations. This could be
attributed to the lack of a system for enforcing effective handover of knowledge among LGU
personnel. Also, lacking career officers specializing in certain technical fields, some LGUs had shed
most, if not all, of their previous personnel that had supported ADB’s TA project implementation.
Designing future TA projects for resilience through institutional adoption of the key innovations
should be given foremost consideration.
j. Support for independent business owners needs to be incorporated into the TA. The evaluation
team encountered trainees who were self-employed in the tourism sector (e.g., tour guides, small
boat operators, a women’s group) who did not have access to the logistical support needed to
apply for ADB’s skill development program because support was only offered to employers. As
such, they had to do all the paperwork required of large employers while also working and being
trained as employees. In the future, ADB should lower the bar of entry for the self-employed, as
these are people who need the capacity development most but can least afford it.
k. Networking and empowering of local communities are key to sustainable intervention. In Davao,
various tourism sector associations had been formed to facilitate the implementation of ADB TA
and then managed to stay strong and active in their role well into implementation of DOT’s TISP.
The sense of community and camaraderie that exist among the employers in the said associations
brought about sustained impacts, including peer learning through sharing knowledge across the
private sector network, sharing a pool of able trainers, and reducing the cost and risk of skills
training through economies of scale. Larger, well-established resorts were incentivized to open
their ADB-supported training programs to smaller resorts in an arrangement that was referred to
as “big brother, small brother,” resulting in what can be termed a cascading of learning and sharing
of knowledge that has been perpetuated within Davao’s private sector tourism network.
At-Risk l. Institutionalized PESOs are needed as focal points for intervention. Despite efforts by the project
Youth management offices, some LGUs were not sufficiently equipped or trained to implement the
TA follow-up programs but relied heavily on external service providers or project coordinators. LGUs
and lacked personnel solely in charge of JSP or allocated casual or job order workers to the program.
JobStart This situation posed high risk for loss of ownership and disruption of knowledge transfer. Also, the
Rollout PESOs did not allocate budget for JSP, which diminished sustainability of the intervention.
TA m. Coordinated public relations campaigns need to be included in future interventions. Despite that
the TA projects were aimed at alleviating poverty for the most vulnerable, not enough of those
targeted were aware of them. This was because the PESOs used existing or familiar human
networks to elicit participation from those with greater access to information from the PESOs.
Future TA projects need PR campaigns tailored to the realities of the target area, as rural
communities with the most impoverished families were being reached through local community
leaders’ personal networks and social media was useful in reaching out to youths.
n. Consistent monitoring of the beneficiary performance is needed to promote accountability. As
PESO officials were required by the TA guidelines to periodically monitor the performance of the
JobStarters in person, they had to spend upwards of 60% of their working hours calling the
employers, visiting the JobStarters at their workplaces to ensure compliance by all parties, and
providing administrative support for them. Both employers and JobStarters who received these
check-ups expressed significant trust and confidence as a result of these personal interactions.
56 Job Creation and Skills Development in the Philippines

TA
Project Lessons
o. Greater incentivization is needed for small and medium-sized enterprise employers. Although
employers cited improved attitudes and work ethics among JobStarters as one of the biggest
benefits of the JSP, they also noted that the actual level of skills did not differ significantly between
the JobStarters and those who were hired without the training and that the prerequisites and
reporting required after LST dramatically heightened the cost of entry for the smaller business
owners. That was all the more the case if they only ended up with less than a dozen JobStarters.
Increasing fiscal support and simplifying logistics would incentivize greater participation and more
equitable impact on small and medium-sized enterprises in rural areas.
p. Improvement is needed in the process for identifying potential JobStarters. Instead of depending
on word-of-mouth, one-time events, and personal networks within the LGU, PESO officials should
diversify channels of promotion, seek out and proactively communicate with unemployed, at-risk
youths, and actively weed out overqualified, unqualified, or mismatched candidates. They also
should share and cross-reference potential candidates for PESOs’ various training and employment
support programs instead of having them compete against one another for the same candidates.
q. LST-centric evolution of the JSP should be actively explored. It should be noted that the acceptance
of “different pathways” after LST has somewhat diluted the original innovation of the JSP by
allowing JobStarters to be hired directly after only completing LST. This has reduced emphasis on
the holistic approach to skills development. Although a significant departure from the original
model, this variation could become a low-cost, high-impact, and sustainable program that is more
compatible with the situations in highly developed urban centers like Taguig and General Trias.
r. Strong ownership and quality control are needed for LST. The concern about achieving and
maintaining a minimal level of quality for LST training remains, and this would be impossible at
present without the support of external service providers. DOLE-BLE should establish itself as the
authority in LST by taking ownership of the training module, spearheading the regular updating
and revision of training manuals, hosting and implementing the training of trainers programs, and
ensuring quality control of the LST programs.
ADB = Asian Development Bank, BLE = Bureau of Local Employment, DOF = Department of Finance, DOLE = Department of
Labor and Employment, DOT = Department of Tourism, IT-BPO = information technology and business process outsourcing, JSP
= JobStart Philippines, LGU = local government unit, LST = life skills training, PESO = Public Employment Service Office, RIA =
regulatory impact assessment, TA = technical assistance, TISP = Tourism Industry Skills Program.
Source: Independent Evaluation Department.

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