ADB OKs $500 million loan for employment recovery

December 23, 2024 | 12:00am

MANILA, Philippines — The Asian Development Bank (ADB) has approved a $500-million loan to the Philippines to support employment recovery through skills training and prepare the workforce for changing industry needs.

A document from the ADB showed the multilateral lender approved the loan for the Post-COVID-19 Business and Employment Recovery Program – Subprogram 2 on Dec.19.

The loan will be sourced from ADB’s ordinary capital resources.

“The program supports the Government of the Philippines in building a business environment that fosters sustainable, high-quality jobs, particularly in the aftermath of the coronavirus disease (COVID-19),”the ADB said.

In 2023, the ADB approved a $500-million policy-based loan for the Post-COVID-19 Business and Employment Recovery Program Subprogram 1, to assist the government in creating a more liberalized business and investment environment to encourage the private sector to grow and generate more jobs.

Subprogram 2 focuses on bridging the gap between skills training and employment to ensure that the workforce is ready to meet the industry’s evolving requirements.

According to the ADB, there are three binding constraints on effectively sustaining labor market improvement and creating quality employment in the country.

These are the limited coverage of labor market programs for job seekers, displaced workers, and vulnerable women workers; skills mismatches; and a restrictive business and investment framework for growth.

“By expanding active labor market programs and liberalizing the business and investment framework, the program aims to increase the share of private sector jobs among total employment, significantly above the pre-pandemic level,” the ADB said.

It said the program also aims to promote inclusive growth by getting more women to participate in technical and vocational education so they can have better employment opportunities.

Moreover, the program involves providing skills and technical training to young people currently not employed or not in schools and workers at risk of losing their jobs.

The program will also connect the youth to private sector opportunities.

“In doing so, it contributes to the country’s long-term vision of inclusive and resilient economic growth, as outlined in AmBisyon Natin 2040,” ADB said.