PIDS expert Michael Ralph Abrigo has warned that the Philippines could lose up to 10% of its GDP due to the misallocation of workforce talent. The warning comes as part of a broader analysis of economic challenges facing the country. Abrigo highlighted that many workers are not matched with the right industries, leading to inefficiencies and reduced productivity.
The expert pointed to a mismatch between the skills available and the needs of the economy, particularly in sectors like technology and manufacturing. This gap, he said, is holding back the country’s growth potential. The analysis also noted that the education system is not fully aligned with market demands, further exacerbating the issue.
Government officials have acknowledged the problem but say reforms are underway. Policies are being developed to better align education with industry needs and to encourage more skilled workers to move into high-demand fields. However, experts say progress will take time and requires sustained investment in training and infrastructure.
The warning underscores the need for urgent action to ensure the Philippines can fully capitalize on its human capital.
