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Republic of (he Philippines

TECHNICAL EDUCATION AND SKILLS DEVELOPMENT AUTHORITY
ISO 9001: 2015 Certified
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BACONC PIUPIMAS

MEMORANDUM
No. s. 2025

FOR/TO : The TESDA Board Members

The Director General I Secretary
The Deputy Directors General
The Executive/Regiona! Directors
The Provincial/District/Assistant Directors
The Directors-in-Charge
The TTI Administrators

FROM : The Deputy Director General

Policies and Planning

SUBJECT : Dissemination of TVET Brief Issue No. 2, Series of 2025

DATE : 15 July 2025

This is to provide you with a copy of TVET Brief Issue No. 2, s. 2025, entitled
“Exploring the Shift to Skills-Based Training in Philippine TVET: Addressing
Mismatches Through Targeted Reform".

This issue explores the concept of “skilis-based" technical-voca tional training

as it is being applied in other countries, as well as how it can be useful in the
Philippine setting, which currently uses a competency-based approach. The issue
also explores the similarities and differences between the two approaches to TVET.

For your information.

ROSAMNA A. URDAWETA, CESO II

KayangKayO
East Service Road, South Luzon Expressway (SLEX), Fort Bonifacio, Taguig City 1630
Landline: (+632) 8888-5641 to 46 CP Number: (+63) 917-4794370 (text only) Telefax No,: (+632) 8893-2454
www.tesda.gov,ph, [email protected]
 Is it time for Philippine TVET to
embrace a skills-based curriculum?

I. Introduction

Economies, whether local or global, are always in a state of flux. As economies change, so too
do the foundations that support them, particularly the labor markets that determine how employers
find, hire, and maintain their workforce. As inferred by Dr. Tony Bates, in his 2014 open textbook
“Teaching in a Digital Age”, today’s employers are even more selective when hiring workers,
requiring them to possess various other traits for a specific job rather than merely matching
credentials.

Hence why there’s the relatively recent trend of job applicants being asked about their “skills” and
“competencies”, not just their qualifications. "Skills" are specific, measurable abilities required for
tasks, while "competencies" refer to broader capabilities including attitudes and behaviors. In this
paper, we distinguish skills-based approaches (focused on technical tasks) from competency-
based approaches (holistic and inclusive of attitudes, values, and soft skills).

The preference for skills and competencies instead of just qualifications is a relatively-recent and
still ongoing phenomenon. The Philippine job market, for example, has always favored those with
college degrees up until recently. Now, more and more industries are starting to evaluate their
prospective workers on their work experience, practical skills, and potential for talent growth over
their own academic achievements (Reyes & Cruz, 2022). This shift is said to be caused by
changing industry requirements, recent technological advancements, and arguably a prevailing
disconnect between education and the needs of today’s workspaces.

The last of those three is of particular importance, as skills mismatch is currently one of the biggest
labor problems in the Philippines. Recently, this issue was again raised by the Philippine Institute
for Development Studies (PIDS), where it discussed the findings of its paper discussing how skills
gaps affect the labor market. Here, it was indicated that while 39% of employed Filipinos are
overqualified for their jobs, 29% of them actually lack the necessary qualifications to perform their
jobs. The figures were from data presented by the Labor Force Survey (LFS) conducted regularly
by the Philippine Statistics Authority. Further, those who experienced mismatch are frustrated in
job hunting, because they themselves realize that they lack the right technical and digital
competencies being demanded in their industries. According to PIDS, many of them would gladly
reskill or retrain themselves if they had the chance, but they see the kinds of training/education
available to them do not always equate with what industries want.

This push to retrain may also have something to do with the evolution of job descriptions
themselves, in that employers are now more specific in detailing their job openings, by adding
descriptions of non-job roles and responsibilities such as attitude, enthusiasm, and skills
development. Additionally, a literature review conducted by Switasarra and Astanti in 2021 has
revealed that more and more job descriptions have actually started to emphasize the role of the
organization/company rather than the role of the individual worker in that particular
organization/company. This particular trend is likely a result of a push to improve human resource
management among all employers, making the recruitment process easier and decreasing
interpersonal conflicts with clear work expectations. All this stands in stark contrast to job
descriptions from previous decades, which focused solely on stating the worker’s role(s) and
expected task(s), then later adding desirable traits and competencies relative to one’s duties. The
evolution of job descriptions is in response to labor and market changes over the decades and
the need to better assess employee/worker performance (Switasarra & Astanti, 2021).

And the evolution persists until today, given the fact that current-day economies are still
competitive and fluid, perhaps now more than ever. Thus, it is important for policymakers to be
swift in addressing the issue of skills mismatch, and this can mean changing from a competency-
based TVET to a skills-based one, or perhaps to something else, in order to ensure that the labor
force will adapt faster to the future.

But first we have to ask: how can a mismatch of skills happen in the first place?

II. Job-Skills Mismatch: A Rationale for Change?

a. What is a Job-Skills Mismatch?

Simply put, this is when the skills that a worker possess does not translate well to the job they’re
holding. Job-skills mismatch, or simply “skills mismatch”, is perhaps the biggest employment
problem that the world faces today, as it is so widespread that it can go unnoticed and may not
even be deemed “problematic” because those affected by it are technically employed. “Skills
mismatch” generally refers to mismatches that impact currently employed-workers or
companies/industries seeking to employ workers. More to the point, skills mismatch is actually a
complex issue that covers various factors, such as demographics, technological advances,
formation of new job sources and different forms of work organization. According to the
International Labour Organisation (ILO), the cost of skills mismatch is threefold:

• “For workers - lower wages (for overqualified), lower job satisfaction, higher on-the-job
search, higher the risk of being out of employment”
• “For employers – lost productivity, lower growth, higher training cost, reduced capacity to
innovate and adapt to changing market conditions”
• “For society - sunk education costs, higher unemployment benefits, lost income tax
revenues”

That being said, job-skills mismatch is not as simple as the concept pertains to be. According to
Valentina Steovska of the ILO, mismatch can occur in at least one of two ways: either the person
themself is hired for a position or job that they are not qualified for due to a different level of
education or field of study (qualifications mismatch), or that their position or job fits their chosen
field of study or education level, but they still lack sufficient skills to perform well (skills mismatch).
And in any of these fields, the person in question may be considered overqualified or
underqualified, either would still count as a mismatch. Figure 1 better illustrates this concept.

Fig. 1 Concept of Mismatch of Persons on Employment1

Source: ILO (2021)

Given this illustration, “skills mismatch” then ultimately refers to any situation where an employed
person during a certain period is in a job whose skills requirements do not match the skills they
possess at the time. Skills mismatch is further classified into three categories, wherein an
employed person may be overskilled or underskilled by:

1
This assumes that the mismatch was identified according to the main job’s skills or qualifications
requirements (Steovska, 2021).
 ● their level of job-specific/technical skills
● their level of basic skills
● their level of transferable skills

According to the ILO, overskilling is a type of mismatch where the worker’s skills are more than
what their job requires, whereas underskilling is the inverse, i.e. the worker’s skills are less than
the job’s requirements. In terms of the types of skills being considered, the ILO defined job‐
specific/technical skills as skills that are directly related to an occupation, which may include
specific knowledge needed to perform a duty, specific knowledge of products or services being
offered, the ability to operate specialized tools and machinery, and specific knowledge on how to
work with certain materials. By contrast basic skills are foundational in a sense that they are
required to build upon the other skills types. Basic skills include literacy, numeracy, and ICT
(Information Communication Technology) skills. Lastly, there are transferable skills that are
relevant to a variety of industries and can thus be transferred from one occupation to another.
They include problem‐solving, cognitive skills, physical skills, language skills, and socio‐emotional
skills (to name a few).

Depending on the job’s requirements, particularly the range and complexity of duties expected
from the worker themselves, these three types of skills are needed by all industries in varying
degrees. However, determining whether or not they “mismatch” a particular occupation will require
gathering information on several factors.

b. Job-Skills Mismatch in Practice

As previously mentioned, the term “skills mismatch” is applied either to workers who are currently
employed or to firms/companies that are currently trying to hire workers. However, it can also be
argued that unemployment itself is a form of skills mismatch, in that prospective workers are
preemptively denied employment to a job or a position that simply does not match their current
set of skills (ILO, 2019). Of course, this does not apply to all cases of unemployment, as in other
such cases come the matter of competitiveness of wages or personal/interpersonal reasons that
should be considered.

From what has been gathered so far, overskilling appears to be more prevalent in the world than
underskilling, and thus receives more attention from various labor organizations in the world,
particularly in Australia. Overskilling is given a particular focus because it is one of the main
reasons for low job satisfaction among workers in that country, as well as the biggest reason for
job quitting, and (most importantly for the purpose of this paper) a huge reason why workers are
discouraged to gain new skills.

Thus, addressing the issue of overskilling is crucial for economies that constantly change, simply
because skills requirements become more complex as the economy also changes. If a country
sees low value-added industries dominating, the demand for low skills is higher than high skills.
This particular revelation was the subject of a 2021 regional study on labor productivity by the
Association of Southeast Asian Nations (ASEAN). The paper illustrated the dynamic of skills
availability in the region compared to skills requirements set by a particular economic structure
(see Figure 2).

Fig. 2 Skills availability in relation to skills requirements of economic structure

Source: ASEAN (2021)

The implication from this diagram is that a country’s skills development efforts need to be in-line
with its economy’s changing requirements in order to avoid any skills mismatch. Overskilling will
occur if skills development continues way ahead of its economy’s actual skills needs (Quadrant
B in Figure 2). Alternatively, if the level of available skills is higher than what is required, the
resulting skills mismatch will likely lead to poor utilization of human capital, thus also resulting in
underemployment. Furthermore, the possibility of jobs-skills mismatches to occur is much greater
if technological advancement goes on at a faster pace, primarily if the skills development
infrastructure is too slow or inflexible to catch up with this pace.

The impacts of skills mismatch in the world should not be ignored, which prompted ASEAN from
studying this phenomenon within its region. Citing a 2018 study by Cisco, ASEAN discovered that
the majority of all mismatches that the region has and will experience is centered on technological
advancement. In a 2021 publication, the ASEAN produced a study on the so-called ASEAN-6,
which constitute the biggest economies in the region, namely Indonesia, Malaysia, the
Philippines, Singapore, Thailand, and Vietnam. The study projected a total net loss of 6.6 million
current jobs (jobs created less jobs displaced) from 2018 to 2028 as a result of skills mismatches
in various forms, due to redundancy or technologies making certain jobs obsolete.

In particular, the Information and Communication Technology (ICT) sector is stated to be the most
volatile for job-skills mismatches, with as much as 41% of workers leaving on their own or being
laid off due to redundancies and the lack of acute ICT-related skills. Figure 3 provides a quick
breakdown of skills mismatches in the ASEAN-6, between redundant workers and vacancies
caused by technological advancement.

Fig. 3 Incidence of mismatches between redundant workers and vacancies caused

by technological advancement in ASEAN-6

Source: Cisco (2018), cited by ASEAN (2021)

In an ideal world, workers who were mismatched with their job, due to technological advancement
or other reasons, should have the chance to reskill or upskill themselves wherever appropriate,
and then be redeployed to take on new jobs. Despite this, it is understood that a country’s skills
development trends should always correspond to the prevailing skills requirements of its
economy. In fact, experts say it is important for a country to have its skills pool to be quite diverse,
as this is necessary for driving economic restructuring and increasing economic complexity. In
general, all countries should strive to have overall high skills match rather than a 100% matching
one, i.e. the skills level available to a country is matching to the skill level required by the industry
or sector (or Quadrant D in Figure 2).

True enough, the increasing adoption of digital technologies that lead to digital goods production,
remote work solutions, machine learning, generative AI and other advancements has provided
companies with the expertise needed to better understand the critical skills required to navigate
such rapid technological change. This is despite the fact that these advanced technologies have
recently disrupted the workforce, which has since stabilized at a high level. Still, employers expect
about 39% of their workers’ core skills to change by 2030, in anticipation of further technological
advancements; this figure is down from 44% in 2023. One element contributing to this finding by
the ASEAN is a growing focus on continuous learning, specifically in terms of upskilling and
reskilling, which enable companies to better anticipate and manage whatever changes to skill
requirements that may happen in the future. This is reflected by an increasing proportion of the
global workforce (50%) in 2025 that have undertaken and completed skills training programs,
compared to the figures in 2023 (41%) – a finding that is consistent across almost all industries
(WEF, 2025).

Of course, there is no “one-size-fits-all” solution to steer the direction of skills development and
deployment of human capital in all countries, which can hopefully avoid skills mismatches. This
is mostly due to the fact that each country’s economy is diverse and at different stages of
development currently. Therefore, each country that faces significant skills mismatch may have
to constantly formulate and implement policies that are grounded in their specific context, hoping
that such policies are robust and flexible as well to keep in tune with such sudden changes.

In this case of the Philippines, perhaps one course of action that its policymakers can consider is
changing how technical vocational education and training is being formulated in the first place,
thus getting one step closer to addressing the issue of job-skills mismatch.

III. Is Skills-Based TVET the Answer?

a. Definition

As the name implies, “skills-based TVET” is centered on enhancing a person’s technical and/or
vocational skills in order to meet an objective or a “learning goal”. The learning goal is used to
assess if said person is deemed skilled enough or not based on certain metrics. Through this
approach, learning is focused more on practical, hands-on instruction, intending to see if the
learner can replicate it. When it comes to workers’ skills, skills-based TVET is usually done to
meet their employers’ requirements and foster national competitiveness (Köpsén, 2020).

But as economies and labor demands transformed, skills-based TVET was later expanded upon
to include other personal aspects like knowledge and attitudes, all of which fall under the umbrella
term of “competencies”. Unlike the usual skills-based approach, this kind of “competency-based
TVET” is structured in a way that the learner is expected to perform both simple and complex
tasks according to specific standards. From here came the idea of occupational competencies,
where certain competencies are found to be relevant across different industry sectors.

In essence, a competency-led approach on TVET is more about an individual’s holistic

development and the fostering of different competencies relevant to a particular role or
organization that the individual is involved in. This approach prioritizes acquiring broad-based
knowledge and skills, which can then be applied in various environments. On the other hand, a
skills-based approach on TVET is much more about acquiring and demonstrating specific skills
that are relevant to a particular role or task, especially if the need is immediate. This approach
puts greater importance on specialization and technical proficiency, thus ensuring that the
individual is an expert on certain tasks. However, given that technological advancements and
changing labor demands can render certain skills obsolete quickly, there is growing advocacy for
a shift toward a skills-based approach. This approach prioritizes immediate, job-relevant skill
acquisition—especially in technical and digital areas—providing workers with a more agile and
readily adaptable skill set for modern industries.

b. Pros and cons of Skills-Based and Competency-Based

Deciding which approach is “best” may prove difficult, as both skills-based and competency-based
TVET have their own merits and flaws. The important thing for policymakers is to assess their
own situation and determine whether a change in TVET deployment is warranted in the first place.
As said earlier in this paper, the biggest considerations for this change is the rate of technological
advancement occurring within industries and the current skills pool available; both should be in-
sync with each other to avoid skills mismatches.

Regardless, the pros and cons of competency-based and skills-based learning in TVET are as
follows:

Table 1. Pros and Cons of Competency-Based and Skills-Based Learning

Pros Cons

Competency-based ● It meets the immediate ● It meets the immediate

needs of businesses and needs of businesses and
professions due to the fact professions, but not
that it facilitates in-company necessarily the learning
training. needs of the learner and
● It lets learners train/learn at therefore making him/her
their own pace. less flexible.
● It recognizes prior learning ● It may not apply on
(usually via certification) if certain traits/skills that do
the learner already has prior not yet have a
exposure in the competency for them.
competency. ● It takes an objectivist
approach to learning,
meaning that learners
aren’t necessarily
incentivized to think for
themselves or think with
 others (i.e. social
learning)

Skills-based ● It emphasizes the ● It may be more narrow in

importance of technical scope
proficiency and specialised ● It may not be as effective
expertise in addressing nuanced
● It prioritizes skills acquisition and complex challenges
that are needed encountered in labor
immediately and more ● It focuses on skill-
directly, making the courses specialization and
shorter technical proficiency, not
● It provides individuals with a in broad competencies
greater sense of
accomplishment and
mastery

Source: Bates, T. (2014) and SQEPtech (2023)

Competency-based and skills-based TVET both have several similarities and differences that
keep them separate as options for policymakers. The competency-based approach is more
holistic in its view of employee development, as it focuses more on developing the whole person
in terms of attitudes, values, and behaviors, alongside their technical skills. On the other hand,
the skills-based approach is more about meeting specific job requirements much quicker and
acquiring the most technical skills and knowledge needed at the moment.

Thus, competency-led TVET can create a more well-rounded and adaptable workforce, while a
skills-based one focuses more on efficiency and effectiveness in addressing immediate business
needs. Ideally, policymakers may wish to strike a balance between the two, specifically by
prioritizing the development of both broad-based competencies and specific technical skills to
ensure that they have their bases covered. This shall also ensure that the weaknesses of one
approach can be overcome by the other. By doing so, countries can create a workforce that is
both adaptable and productive, capable of meeting both immediate and long-term goals,
especially given how much their economy can change.

As said in the beginning of this paper, changes in economic and labor needs quickly lead to
changes in the skills needed by employers from their workers. The Philippines is currently
experiencing this as a side-effect of its positive economic growth, as more and more college
graduates are turning to TVET to supplement their credentials. According to a PIDS Policy Note
about the findings of the Second Congressional Commission on Education (EDCOM II), the
traditional recipients of TVET in the Philippines have always been those high-school graduates
who were, for one reason or another, unable to go to college for tertiary education. However, as
the demand for digital skills increase, and as more and more new occupations spring up as a
result of economic growth, college graduates have started taking TVET courses (Epetia and
Villena, 2023) for employment.

Even then, employment may not really be the primary reason why Filipinos take up TVET courses
in the first place. The same EDCOM II findings have also discovered that most Filipinos enroll in
TVET simply to improve their skills, with a growing number of them (17% in 2020) even saying
that they wish to use their skills for their hobbies or pastimes. One could make an argument that
skills-based learning will be most suited for these learners, as they wish only to improve their
current skills set without having to worry about if it is on par with industry demands or not.

EDCOM II has also discovered that college and TVET graduates are attracted to whatever are
the fastest growing sectors of the economy. When EDCOM II looked at the Philippines’
employment trends before the COVID-19 Pandemic, the information and communication
technologies (ICT) sector was the number one employment generator among all graduates. But
during and after the COVID-19 Pandemic, it was the agriculture sector that became the biggest
employer, with the ICT sector relegated to tenth place, despite the importance of ICT in driving
the country’s economic growth (Epetia and Villena, 2023). This trend was mostly attributed to the
lockdowns that occurred throughout the country that led to limited movement and the closing
down or the hindering of ICT operations due to said lockdowns. Still, the phenomenon goes to
show that labor needs may change dramatically over a short span of time, thus necessitating
workers to be very flexible and adaptive through their skills.

But perhaps the biggest argument that favors skills-based TVET in the country is the growing
need for “transversal skills”: skills that apply to multiple trades and industries, rather than specific
to a particular niche. These include communication skills, critical thinking, and management skills.
The World Economic Forum has stated that transversal skills are important in order to thrive in
the current and future economies. In some industries, transversal skills are more important than
technical ones. Hence, skills-based TVET is a part of the solution but not a silver bullet.

IV. Benchmarking on Skills-Based TVET

There are several TVET models that the Philippines may wish to look into if it wishes to adopt a
skills-based approach:

a. Australian Model

Australian TVET, referred to in-country as Vocational Education and Training (VET), is primarily
a skills-based system offered by industry experts at technical and further education (TAFE)
institutions. VET qualifications are classified according to the Australian Qualifications Framework
(AQF) for documentation, recognition of prior learning, and credit transfer. Australian VET was
competency-based when it was introduced into the country during the 1980s. However, the nature
of work in the country has undergone significant changes since then, with workers being expected
to undertake more cognitive and non-routine tasks, and as well as encouraging them to obtain
more skills to meet the growing need for better capabilities at work. While it is acknowledged that
many Australian VET qualifications are matched with current skills needs, and thus leading to
strong employment outcomes, other VET skills are foreseen to benefit from better design or
approach to further improve job prospects.

As reflected in the country’s 2022 and 2023 Skills Plans, the country sees the need to assist its
learners to make more informed choices when joining the workforce. To do this, VET is seen as
a medium to build foundational skills among the youth, expand upon current upskilling and
reskilling opportunities to enable the workforce to meet the demands of the economy, and foster
innovative solutions for future skills. The latter is a particularly important action point to equip
Australians with the skills needed for Digital transformation, as well as adapt to changes foreseen
in some of its most important industries in the coming years, such as construction, tourism, and
health care.

At present, Australian VET is tiered at six levels of qualifications that lead to certain competency
levels as recognized by various industries, which in turn lead to specific career outcomes upon
finishing a VET course. As seen in Table 2, the two highest levels are the equivalent of obtaining
a college degree, thus leading to higher job qualifications than the other levels.

Table 2. Levels of Qualification in Australian VET

Level of Qualification Duration Career Outcome
(AQF)

Certificate I 4-6 months Competent Operator

Certificate II ~1 year Advanced Operator

Certificate III ~1 year Qualified Tradesperson or Technician

Certificate IV 12-18 months Supervisor

Diploma 18-24 months Paraprofessional

Advanced Diploma 24-36 months Junior Manager

Source: Australian Trade and Investment Commission (2025)

Learning is measured via units of competency, which are born from the dual-training nature of
Australian VET. In other words, learners can undergo formal training via packaged skills sets or
skills sets designed by formal training institutions (i.e., TAFEs). Learners may wish to complete
their entire course and obtain a full qualification, or only finish a set number of units to obtain a
statement of attainment. This system applies to most if not all VET courses.

Over the years, however, this one-size-fits-all competency-based approach by TAFEs may be
putting learners at a disadvantage. Australia’s competency-based VET has so far focused on
performing specific tasks instead of improving the current knowledge base and fostering the
understanding needed across the workforce. As such, Australian policymakers are exploring other
models to improve the current VET delivery system, by redesigning current qualifications to better
meet learner and industry needs (Table 3).

For learners, the new models are envisioned to make the current Australian VET system easier
for them to navigate and support a much broader range of career pathways. For workers, the
models are designed to provide clearer focus on transferable skills, which can be acquired
through formal learning and on the job training, and hopefully help them transfer to different jobs
or working situations, as economic changes can still disrupt their current situation. And for industry
leaders, the new models are expected to produce more graduates with said transferable skills
who can be efficiently inserted into various roles and tasks within their industry, as the need arises.
Special focus is placed on the formation of digital skills, which are now deemed to be foundational
for the workforce, given that almost 90% of the country’s workforce is exposed to digital
technologies in some way. Introducing digital skills in occupation-specific and industry-specific
qualifications is normally done by TAFE, but more and more businesses are taking up the
responsibility themselves, with the increasing prevalence of internal or industry-specific training
programs. Thus, future qualifications in Australia are likely to be co-developed between TAFEs
and industry leaders, hence the need to streamline all current qualifications to make them fewer.

Table 3. Proposed new qualification models for Australian VET

New Model Description2
Occupation-specific These qualifications will continue to be highly specialized for occupations
qualifications that rely on specific technical skills, especially to meet regulatory or
licensing requirements (such as the licensed trades). Many of these
qualifications are working well and will be retained.

Industry-specific Industry-specific qualifications seek to provide learners with a common

qualifications core of (transferable) skills and knowledge needed across an industry and
improve intra-industry job mobility. Such qualifications could benefit a
range of sectors, including agriculture and manufacturing - supporting
Australia’s sovereign capability and food security.

The broader transferable skills that arise from these qualifications provide
a good base for re-skilling within an industry-through recognition of prior
learning or credit transfer for example – in response to emerging
workforce demands and structurally or technological changes within an
industry. Recognition of skills for industry-wide application also improves
workforce adaptability and supports industries with flexibility in deploying
skills.

2
Descriptions are taken verbatim from Victorian Skills Plan for 2024 into 2025
 Vocational learning These new qualifications will incorporate skills and knowledge applicable
qualifications across many industries to help individuals up-skill, for example in digital
and management skills. Such qualifications would lift the capability of
graduates to be effectively prepared for a broad range of roles in the
economy.

Source: Victorian Skills Authority (2024)

b. Singaporean Model

In Singapore, the National Manpower Council, comprising the Ministry of Manpower (MOM), the
Ministry of Trade and Industry (MTI), and the Ministry of Education (MOE), is responsible for the
planning and governance of TVET. The Minister for Higher Education and Skills oversees the
policy implementations introduced by SkillsFuture Singapore (SSG), a statutory board under the
MOE (UNESCO-UNEVOC, 2022).

Singapore Skills Framework (SSF) provides comprehensive career pathways, job roles, and the
skills needed for progression. It is an integral component of the Industry Transformation Maps
and is curated and continuously updated by the government and the industry with key
stakeholders such as employers, industry associations, unions, professional bodies, education
and training providers. It spans multiple sectors, covering 34 areas, including healthcare,
engineering, and information technology. Further facilitating skills recognition and support skills
and career development, SSG reviewed the generic skills and competencies and developed the
critical core skills (CCS) in 2019. They were able to formulate sixteen (16) most in-demand soft
skills (or CCS), or skills-to-build-skills, which are further organized into three clusters:

Table 4. Singapore’s Critical Core Skills

A. Thinking Critically - cognitive skills

Critical Core Skills Description3

1. Creative Thinking considers and connects multiple ideas and information to form
solutions or develop new ways of working.

2. Decision Making involves the process of implementing a structured decision or

course of action from multiple sources of information.

3. Problem-Solving refers to the ability to handle difficult or unexpected situations by

generating effective and efficient solutions.

4. Sense Making interprets and analyses information to identify or recognize

patterns and opportunities.

3
Descriptions in this table were directly lifted from the MySkillsFuture website.
 5. Transdisciplinary applies concepts from multiple disciplines to supplement their
Thinking knowledge to make decisions and solve problems.

B. Interacting with Others - being able to exchange ideas and build a shared understanding
of a situation

Critical Core Skills Description

1. Building Inclusivity represents the skill to manage relationships across diverse groups
within an organization.

2. Collaboration is being cooperative and a good team player.

3. Communication encompasses the art of conveying and exchanging information

effectively and clearly.

4. Customer Orientation is the ability to build relationships with customers, both internal
and external, to anticipate their needs and solicit feedback to
deliver an effective customer experience.

5. Developing People demonstrates a leadership quality that seeks to empower

themselves and others to learn, and develop their strengths to
enhance performance.

6. Influence comes from the ability to demonstrate empathy and communicate

well.

C. Staying Relevant - managing oneself effectively by navigating through trends impacting

work lives

Critical Core Skills Description

1. Adaptability is the ability to exercise flexibility in behaviors or approaches to

respond to changes.

2. Digital Fluency is knowing how to use the right digital tools, technology, and
software across work processes and activities to problem solve,
drive efficiency, and make information sharing easy.

3. Global Perspective demonstrates an awareness and understanding of global

challenges and opportunities.

4. Learning Agility has to do with continuous learning. People with learning agility are
able to deploy different learning approaches to facilitate
continuous career development.

5. Self-management is about taking ownership of one’s effectiveness, personal brand

and well-being.

Source: MySkillsFuture (2025)

Complementing the SSF by offering training and certification is the Singapore Workforce Skills
Qualifications (WSQ). It is a national credential system that trains, develops, assesses, and
certifies skills and competencies for the workforce. The WSQ system identifies essential skills for
different jobs in various industries: (1) generic skills relevant to all workers across all industry
sectors, (2) industry cluster skills common within a particular industry, and (3) occupational skills
are job-specific skill sets.

Building upon this framework of essential skills, the WSQ system also emphasizes a
comprehensive approach to workforce development through its five dimensions of competency:
task skills, task management skills, contingency management skills, job and role environment
skills, and transfer skills.

Fig. 4. WSQ Five Competency Dimensions

Source: SkillsFuture Singapore (SSG)

Albeit these clustering of skills, WSQ-accredited courses take reference from the skills classified
under the SSF, which provides key information on the job roles and skills that an individual needs
to perform various job tasks and stay transferable. Specifics on the skills demand per industry are
further studied in their Skills Demand for the Future Economy Report and the SkillsFuture Job-
Skills Insights (SFJSI).

c. USA Model

In the United States of America, TVET is often equated to “vocational education”, which is offered
in the secondary levels (i.e., middle school) of a learner’s early education path. Vocational
secondary education lasts for around six to eight years, after which a learner may pursue a post-
secondary vocational education course. The actual TVET programs themselves are offered as
career and technical education (CTE) programs, which are then aligned according to “National
Career Clusters”. CTEs, in this context, are typically taught in the following settings, though the
actual delivery varies from state to state, and even district by district:

● In high schools, via public education

● In community or technical colleges
● In various government programs
● In an apprenticeship system (miniscule or otherwise)
● In a large business-based training system (unrelated to the above)

The exact classification of CTE depends on their respective National Career Clusters, and even
then, some states may have more or fewer Clusters that their CTEs are aligned to. These Clusters
serve as a rough guide for the particulars of a CTE program, as there are currently no national
qualifications or skills framework that standardizes all CTEs nationwide. The currently recognized
National Clusters are as follows:

● Agriculture, Food & Natural Resources

● Architecture & Construction
● Arts, Audio/Video Technology & Communications
● Business Management & Administration
● Education & Training
● Finance
● Government & Public Administration
● Health Science
● Hospitality & Tourism
● Human Services
● Information Technology
● Law, Public Safety, Corrections & Security
● Manufacturing
● Marketing
● Science, Technology, Engineering & Mathematics
● Transportation, Distribution & Logistics

V. Is Skills-Based TVET Feasible in the Philippines?

To answer this question, the Philippine TVET situation must be analyzed first. The country’s TVET
qualifications are guided by the Philippine Qualifications Framework (PQF), which itself is based
on Australia’s AQF. PQF is described as a competency-based, labor market-driven system where
assessments are based on qualification recognition, providing eight qualification levels (see Table
5). Currently, Philippine TVET encompasses PQF Levels 1 to 5:
 Table 5. Levels of Qualification in Philippine TVET
Level of Knowledge, Skills and Application4 Degree of Independence4
Qualification (PQF) Values4

National Certificate I Knowledge and skills that are Applied in activities that In conditions where there is
(PQF Level 1) manual or concrete or practical are set in a limited range of very close support, guidance
and/or operational in focus. highly familiar and or supervision; minimum
predictable contexts; judgment or discretion is
involve straightforward, needed.
routine issues which are
addressed by following set
rules, guidelines or
procedures.

National Certificate II Knowledge and skills that are Applied in activities that In conditions where there is
(PQF Level 2) manual, practical and/or are set in a range of substantial support,
operational in focus with a familiar and predictable guidance or supervision;
variety of options. contexts; involve routine limited judgment or
issues which are identified discretion is needed.
and addressed by
selecting from and
following a number of set
rules, guidelines or
procedures.

National Certificate III Knowledge and skills that are a Applied in activities that Application at this level may
(PQF Level 3) balance of theoretical and/or are set in contexts with involve individual
technical and practical. Work some unfamiliar or responsibility or autonomy,
involves understanding the unpredictable aspects; and/or may involve some
work process, contributing to involve routine and non- responsibility for others.
problem solving, and making routine issues which are Participation in teams
decisions to determine the identified and addressed including team or group
process, equipment and by interpreting and/or coordination.
materials to be used. applying established
guidelines or procedures
with some variations.

National Certificate IV Knowledge and skills that are Applied in activities that Work involves some
(PQF Level 4) mainly theoretical and/or are set in range of leadership and guidance
abstract with significant depth contexts, most of which when organizing activities of
in one or more areas; involve a number of self and others
contributing to technical unfamiliar and/or
solutions of a non-routine or unpredictable aspects;
contingency nature; evaluation involve largely non-routine
and analysis of current issues which are
practices and the development addressed using
of new criteria and procedures. guidelines or procedures

4
Descriptions are taken verbatim from the Philippine Qualifications Framework presentation by ASEM
(2012)
 which require
interpretation and/or
adaptation.

Diploma (PQF Level Knowledge and skills that are Applied in activities that In conditions where there is
5) mainly theoretical and/or are supervisory, complex broad guidance and
abstract with significant depth and non-routine which direction, where judgment is
in some areas together with require an extensive required in planning and
wide-ranging, specialized interpretation and/or selecting appropriate
technical, creative and adaptation/ innovation. equipment, services and
conceptual skills. Perform work techniques for self and
activities demonstrating others. Undertake work
breadth, depth and complexity involving participation in the
in the planning and initiation of development of strategic
alternative approaches to skills initiatives, as well as
and knowledge applications personal responsibility and
across a broad range of autonomy in performing
technical and/or management complex technical
requirements, evaluation and operations or organizing
coordination. others

Baccalaureate Graduates at this level have Application in professional Independent and /or in
Degree broad and coherent knowledge work or research in a teams of related field with
(PQF Level 6) and skills in their field of study specialized field of minimal supervision guided
for professional work and discipline and/or for further by set procedures that
lifelong learning study frequently require judgment

Post-Baccalaureate Graduates at this level have Applied in professional Independent and or in teams
Program (PQF Level advanced knowledge and skills work that requires of multidisciplinary field with
7) in specialized or leadership and very minimal supervision
multidisciplinary field of study management in a that involves exercise of
for professional practice or self- specialized or leadership and initiative
directed research multidisciplinary
professional work,
research and/or for further
study

Doctoral Degree & Graduates at this level have Applied in highly Independent and/or in
Post-Doctoral highly advanced systematic specialized or complex teams of multi-disciplinary
Programs knowledge and skills in very multidisciplinary field of and complex setting with
(PQF Level 8) specialized or complex professional work, significant level of expertise-
multidisciplinary field of research and/or further based autonomy and
learning for multifaceted study that require accountability
research or professional management expertise,
practice or for the innovation and leadership
advancement of learning

Source: ASEM (2012)

As seen from this Table, the complexity of the skills being taught and the degree in which they
can be applied both increase as one goes up a level. Inversely, the higher one goes to the PQF
levels, the less guidance one is expected to require in performing at the indicated level.
Additionally, the fact that the PQF is labor market-driven is important to note, as it theoretically
ensures that each qualification is designed to meet the demands of industries and the changing
economy. Uniformity of PQF levels also ensures that workers can transition relatively quickly from
one sector to another, or from one trade to another, given their credentials–regardless of if they’re
TVET credentials or not.

In terms of actual TVET content, Philippine TVET currently follows a competency-based

curriculum (CBC) that develops each qualification, or “training regulation, as a set of units of
competencies. These units of competencies were created with inputs from industry stakeholders.
Simply put, CBC is designed to equip its learners with the right occupational competency, by
providing them with proper instructions to help them master the necessary knowledge, skills and
attitude demanded by a particular industry, and eventually help learners become productive
workers in the trades they trained for by gauging them according to units of competency. At
present, CBC covers up to PQF Level 5 (i.e., Diploma-level), with TVET qualifications being
created “with training regulations” (WTR) or “with no training regulations” (NTR).

Fig. 5. Components of Competency-Based Curriculum

Source: TESDA (2023)

 VI. Moving Forward

a. Observations

TESDA is the Philippines’ current authority for all matters relating to TVET, and it adheres to the
PQF for the formulation, delivery, and certification of its TVET courses. TESDA does this by
fostering strong ties with industry groups and other stakeholders, thus keeping abreast of
significant changes in their respective industries and their subsequent skills needs. Such
partnerships have led to the implementation of enterprise-based training (EBT), which basically
allows TVET students to obtain real, practical skills in a work environment, with the intention of
joining the workforce using firsthand experience they’ve learned throughout the EBT program.

While sufficient on paper, the standards set forth by EBET are not exactly the norm for the delivery
of Philippine TVET, something TESDA has acknowledged and is trying to improve upon. In a
2020 internal analysis conducted by the agency, it was discovered that the country’s TVET
qualifications are still supply-driven instead of enterprise-driven, which consequently meant that
most TVET courses are community-based, rather than EBT. This is despite the fact that the
competency-based nature of Philippine TVET means that the enterprises themselves determine
labor requirements that TVET courses cater to. This goes against the dual-training model that is
introduced elsewhere in the world, like in Australia, or the apprenticeship system offered in
American CTE.

The decline of EBT is attributed to a number of factors, namely the centralized process of review
and approval of memorandums of agreement (MOA) between TESDA and an enterprise partner,
which can often take months of delay in implementation of programs with said partners. Another
factor is the requirements of the TESDA-DTS Law pertaining to remuneration for trainees, as they
are considered on-the-job trainees qualifying for some compensation; the minimum compensation
for such trainees is about 75% of the actual minimum wage (depending on the region). This
amount, while generous to the trainee, is considered too much by smaller enterprises and actively
discourages them from engaging in EBTs. The last factor is the sheer magnitude of the workload
already undertaken by TESDA’s regional and provincial offices, which precludes them from
engaging with more firms and enterprises to participate in EBT.

Moreover, many companies willing to partner with TESDA for EBT tend to need technical support
to continue from the initial dual training program (or pilot stage) to the actual dual training system.
Very often, the challenge of regional or provincial offices is sustaining the initial year of
partnerships with these companies. In some areas, companies conducting DTPs were
experiencing declines in enrolment, hence, they too would need to improve training design or
conduct other supplemental programs. Meanwhile, large companies would be interested in
programs customized to their needs.

The same internal analysis also discovered that while the competency-based system approach
for Philippine TVET usually meets the skills needs of industries, employers constantly report back
to TESDA that their current crop of workers lack many of the necessary foundational skills defined
previously on this paper, such as communication skills, media literacy, and critical thinking. Many
of these foundational skills are crucial for some of the country’s most important sectors, such as
Tourism and ICT; these skills are especially crucial for those Filipinos seeking to find meaningful
employment overseas with their TVET credentials.

It is for this reason that TESDA regularly conducts employer satisfaction surveys (ESSs) in order
to obtain feedback from industries about their TVET-graduated workers, as well as to gauge the
effectiveness of the current TVET programs. An interesting metric found in ESSs is the proportion
of employers that still conduct additional in-house training for their employees; if these training
programs provide supplementary skills to TVET graduates, then that means that the current TVET
programs are sufficient in preparing the graduates for the workplace.

b. Recommendations

So, to answer the question “Is it time for Philippine TVET to embrace a skills-based curriculum?”,
one should keep in mind the current competency-based system in place. Yes, the Philippines
may want to adopt a skills-based curriculum to address the skills demands of industries
more quickly. However, the issues of the current curriculum must be addressed first.

In addressing whether Philippine TVET should adopt a skills-based curriculum, it is important to

first recognize that the current system remains competency-based. While a shift to a skills-based
model could enable a more rapid response to industry demands, it is imperative to resolve the
existing curriculum's deficiencies beforehand. Without addressing these issues, transitioning to a
skills-based approach could ultimately undermine the effectiveness of TVET development and
delivery.

Moving forward, TVET systems should undertake a thorough assessment of how skills-based
curricula can be adopted or adapted, guided by the following steps:

1) Consult with the relevant stakeholders regarding the issue

This goes without saying, but TVET policy makers must first ask the industries if they wish to have
a skills-based curriculum in the first place, or if they are satisfied with the current curriculum. It
must be kept in mind that transitioning to a skills-based TVET entails focusing first on critical skills
development, or in other words, developing specific skills that make workers better prepared for
the modern workplace. This approach may not necessarily begin with developing technical skills
or job-specific skills that are directly related to a particular role, but rather preparing the foundation
for workers to learn more, thus addressing one of the most common weaknesses found in today’s
workforce (at least according to employers).

Of course, this is easier said than done, as a transition to a skills-based curriculum will also result
in the upturning of existing systems and adapting them to this new approach. Not to mention,
current TVET courses that are primarily competency-based will have to be reviewed again and
reconfigured to fit the new curriculum, and the same shall be done with the trainers, training
centers, assessors, and the rest of the human resources involved in the courses’ implementation.
These efforts will be time-consuming and resource-intensive, so policymakers need to know for
certain if industries are willing to shoulder the burden during the transition.

2) Strengthen linkages between TVET policymakers and industries

In relation to the above, TVET policymakers need to strengthen their existing linkages with
industry groups and representatives. In the context of Philippine TVET, these existing linkages
are in the form of advisory groups, industry boards, and the regional and provincial technical
education and skills development committees (R/PTESDCs), the latter two of which are where
TESDA is especially active.

These linkages will serve as avenues where all parties can convene and discuss the matter of
transitioning to a skills-based TVET, especially when it comes to deciding if it is even needed in
the first place. In more practical terms, stronger linkages between policymakers and industries
will also ensure that all stakeholders are involved in the crafting of a Philippine-specific skills-
based TVET system and all the support systems (i.e., schools, assessment centers, funding, etc.)
are properly laid out before it can be implemented.

The key here is to ensure that TVET policymakers are made aware of every factor that may come
into play when transitioning into a skills-based TVET system; constant dialogue is important in
order to identify the correct foundational skills that employers need from their workforce. As
defined elsewhere in this paper, “foundational skills” may be a combination of certain soft skills,
such as interpersonal communication and critical thinking, as well as basic skills such as
numeracy and computer literacy.

3) Determine which skills-based system is the best, before transitioning to it

This paper introduced Australian, Singaporean, and American perspectives on skills-based

TVET, each of whom have its own features that may or may not be applicable to the Philippine
setting. The Australian model, for instance, gives credence to digital skills while also differentiating
which skills/competencies are deemed “occupation-specific” (i.e., are highly-technical for a
specific role), “industry-specific” (i.e., can be applied to other roles within the same industry, or
even outside of it), or simply “vocational” (i.e., not directly related to any industry, but can be used
for self-improvement). The Singaporean model, meanwhile, focuses more on the individual and
making them more well-rounded, without necessarily nudging them towards a specific career.
Through this model, learners are expected to be equipped with the right repertoire of cognitive
and social skills before they can transition to a particular trade or occupation. On the other hand,
the American model is looser and more flexible, but is more industry-specific; schools and
educators can design their curriculum based on different standards and approaches, as long as
their version of TVET is aligned with a specific National Career Cluster.
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