PHILIPPINE EFFORTS to develop globally competitive workers may not be enough to retain skilled talent if domestic employers cannot offer comparable wages and opportunities, an analyst said, challenging the Marcos administration’s focus on upskilling as a response to labor migration.
The central problem was not a shortage of skilled workers but the limited capacity of the domestic economy to generate productive, decent-paying jobs, according to Jose Enrique A. Africa, executive director of think tank IBON Foundation.
“Filipino workers are only being rational in leaving the country to earn enough to support their families, build a decent future, and practice their professions under acceptable working conditions,” Mr. Africa told BusinessWorld via Viber. “A fundamental shift in economic policy is needed.”
The Palace said on Wednesday that young Filipinos seeking jobs overseas should not be prevented from doing so, noting that their earnings support their families and contribute to the economy.
Mr. Africa said the continued departure of skilled workers could limit the ability of domestic corporations to expand, innovate and move into higher-value production, leaving the Philippines more reliant on imported technology and foreign expertise.
He identified engineering and construction, manufacturing, digital industries and healthcare as particularly vulnerable to losing skilled workers.
The Philippine Statistics Authority (PSA) Survey on Overseas Filipinos estimated that 2.05 million Filipinos were working abroad in the three months to September 2025, down from 2.19 million a year earlier. According to October data, 41.8% were in elementary occupations, while service and sales workers accounted for 16.1% and plant and machine operators and assemblers 13.9%.
The data indicate that overseas employment spans various jobs and cannot measure skilled-worker outmigration alone.
Domestic wage data point to disparities across industries. The PSA’s 2024 Occupational Wages Survey, covering formal establishments with at least 10 workers, put the average monthly wage rate at P21,544.
Information and communications workers received the highest industry average at P43,676, while agriculture, forestry and fishing workers received the lowest at P14,615.
Mr. Africa said skills training alone could worsen the outflow if workers gain qualifications that domestic employers cannot use or reward adequately.
“Absolutely not,” he said when asked whether skills development alone could address labor supply concerns if employers cannot match overseas pay and opportunities.
He said the government should strengthen domestic agriculture and manufacturing, invest more in healthcare, education and research, and improve wages, working conditions and labor protections.
“Substantially higher wages, better working conditions and stronger labor protections can immediately stem some of the labor outflow,” Mr. Africa said.
“This means formal policy decisions to stop relying on cheap labor to attract investment and maintain competitiveness,” he added.
The PSA reported August unemployment at 5.3%, equivalent to 2.77 million people, against 3.9% a year earlier and 6% in July.
The Asian Development Bank, meanwhile, reported that Philippine labor productivity grew by an average of 2.9% a year from 2010 to 2023, with agriculture lagging industry and services. — Erika Mae P. Sinaking
