1. DEVELOPING THE MINDANAO TVET ROADMAP, 2010-2015 Mindanao TVET Stakeholders Forum October 30, 2009 Davao City

2. THE EXTERNAL ENVIRONMENT TRENDS, HOTSPOTS & SCENARIOS

3. POPULATION OF MINDANAO, 2007 As of 2007 Census, Mindanao has a total population of 21,584,540

4. POPULATION OF MINDANAO, 2007 It is projected to increase to 22.3 million by 2010, and 24.6 million by 2015

5. POPULATION OF MINDANAO, 2007 Population Growth Rate of Mindanao has generally decreased from 2000-2007

7. One-third of the labor force is employed in the agriculture, fishery and forestry sectors (AFF).

8. Mindanao contributes more than 30% of the national food requirementsMajor Regional Agri Products oil palm Mindanao is an Agri-based Economy Source of Raw Data: NSCB/GVA per sector Processed by: MEDCo Secretariat

9. Region 10Pineapple High-value crops Aqua-marine Tourism Fiber-base (silk, abaca) Banana Jathropacurcas Sugar Cane Palm Oil Major Industries Region 9Processed fish products Rubber, Seaweeds Bottled Sardines Ceramics, Shellcrafts Region 11Pineapple, Banana,Coconut Processed fruits Processed food products Wood Industry Tourism Housewares Region 12Rubber Palm Oil ARMM Seaweeds Fish/fish products Region 13Banana,Palm Oil, Coffee Fish/Fish products Citronella Oil Wood & Wood Products SOURCE: DTI; MEDCO

10. Mindanao’s economy grew within 4.5% - 5.5% in the year 2009 due to sustained growths in the agriculture and services sectors, and exports. Source: National Economic Development Authority, 2009 Data

11. Gross Domestic Regional Product (GRDP) in Mindanao (at constant prices) has increased in a span of 10 years in an average growth rate of 4% from 1997-2007;

12. DISTRIBUTION OF MINDANAO OUPUTS As of 2008, 37% of the total Mindanao output came from the agriculture sector while 36% came from the services sector. The remaining 27% of the total output came from the industry sector.

13. Investment growth reached 72%, from PHP 7.958 billion in 2007 to PHP 13.709 billion in 2008;

14. Foreign Equity in BOI Registered Investments in Mindanao grew in value from P1.65B in 2006 to P1.7B in 2008, a growth rate of only 5.6% per year….

15. The bulk of equity for BOI registered investments came from local capital, which jumped from P3.55 billion in 2006 to P12 billion in 2008, an average growth of 85% per year.

16. The same local capital is fueling the rapid growth in SMEs. In 2006, SEC registered local investments grew from 145M in 2006 to 1.3B in 2007 with a growth rate of 794%. The SME sector is growing rapidly versus BOI registered.

17. MINDANAO ECONOMY SMEs account for 99.6% of the country’s total business enterprises (811,589) and generate a 69.1% share of total employment (Source: DTI). Economic development plans of the Mindanao regions have also placed emphasis on MSME development as “a potent force for job creation and generation.”

18. LABOR & EMPLOYMENT

19. EMPLOYMENT DISTRIBUTION Employment distribution in Mindanao (2008) shows that 50% are employed in the Services sector, 35% in Agriculture, and 15% in the Industry sector

20. EMPLOYMENT DISTRIBUTION Mindanao-wide employment rate is generally increasing from 2005-2008;

21. EMPLOYMENT DISTRIBUTION Labor force participation rate in Mindanao increased from 94.37 in 2007 to 95.45% in 2008

22. EMPLOYMENT TRENDS Increase in employment rate is seen in the agricultural and service sectors, but this is largely among laborers and unskilled workers; they comprise 32% in the employment distribution in Mindanao; Laborers & Unskilled workers, 32%

23. EMPLOYMENT TRENDS Absorption of skills is seen more in the deployment of OFWs in the Industry sector rather than local Industry employment...

24. Deployment of Overseas Workers for Electricals and Electronics occupations (Wiremen, Riggers, Assemblers, Fitters, Lineman, etc.) significantly increased in 2006....

25. EMPLOYMENT in INDUSTRY Trends in recruitment and hiring among big firms show that they “generally hire trainable applicants and train them on the job rather than hire certified graduates of TVET courses” e.g. agri-business firms, BPOs, firms in Ecozones, etc.

26. EMPLOYMENT in INDUSTRY Feedback from big Industry and Chambers (during Regional consultations) says that while there is willingness to absorb TVET graduates for employment, most of TVET graduates do not meet competency and acceptability requirements of employers…. …. and even if they are willing to absorb TVET graduates, their absorption capability is limited.

27. EMPLOYMENT IN AGRICULTURE 50% of agricultural workers are own account workers, 25% are wage and salary workers and 25% are unpaid family workers…

28. SKILLS DEMANDS 4 According to DOLE, the top four (4) sectors with demands for skills for 2006-2010 are: Agribusiness (2,044,161), Cyberservices (1,383,390), Hotel & Restaurant (400,280); and Medical Tourism (128,150). 2 1 3

29. SKILLS DEMANDS 4 These are followed by the Health Services sector (58,003); Mining Industry sector (39,382); and Aviation (27,581) 2 1 3

30. SKILLS DEMANDS Labor demands for agribusiness was estimated to reach 1.3 Million for Crop Production, 451 thousand for aquaculture, and 135 thousand for livestock/poultry for the period 2006-2010…

31. SKILLS DEMANDS Tesda’s TVET Outlook for 2006-2010 likewise estimated shortage of skills in Agriculture reaching to 3.3Million

32. SKILLS DEMANDS For Cyberservices, labor demands was estimated to reach 1.3Million with Customer Contact Agents topping the list of occupations.

33. SKILLS TRAINING (SUPPLY) AND SKILLS REQUIREMENTS (DEMANDS)

34. EDUCATION & TRAINING

36. 30% of students/OSY in Mindanao are not in school because of “lack of interest” ; 20% prefer to work or are looking for work; 19% is due to high costs of education and 11% because they are in housekeepingSource: DepEd

37. EDUCATION COHORTS SURVIVAL RATE Only 43% finish high school and of that number only 23% would pursue higher education while 10% enter TVET; of that 10%, only 7% would graduate.. Source: Dept of Educ

38. 2007-08 NCAE Results show that high school graduates have moderate-high aptitude for technical-vocational and entrepreneurial skills. 2007-2008 NCAE RESULTS

39. More high school graduates prefer higher education courses (college) over TVET courses.. JOB-SKILLS MISMATCH

40. TVET IN BASIC EDUCATION Integrating tech-voc in the Basic Secondary Curriculum is viewed by DepEd as priority and an alternative solution to increasing dropout rates, addressing issues on the present job-skills mismatch and reduction of poverty; Source: DepEd

42. There are 282 tech-voc public and private high schools offering/operating the specialized tech-voc high school curriculum;

43. The skills trained under this curriculum are certifiable skills and high schools students may be assessed by TESDA and earn certificates of competencies;Source: DepEd

44. TVET IN BASIC EDUCATION With TVET in basic secondary education, high school tech-voc graducates now have wider career options to include becoming an entrepreneur after graduation or be employed. Source: Department of Education

45. TVET ENROLMENT, GRADUATES, ASSESSED & CERTIFIED, 04-05 TO 06-07, By Regions Source: TESDA

46. Mindanao Private schools with TVET courses grew from 2005 to 2009 in an ave. growth rate of 22%; public schools with TVET courses had a lesser growth rate of 3%. AGR=.22 AGR=.03