The Philippines is grappling with a persistent learning crisis that threatens not just its education system but its economic future. Despite decades of reforms, the gap between graduates and employment continues to widen, with students’ performance declining and teaching quality faltering, according to a recent assessment by the nonprofit Philippine Business for Education (PBEd) released on July 8, 2025. This disconnect, rooted in structural failures, has turned an education issue into a national productivity crisis, raising urgent questions about the country’s ability to prepare its workforce for a competitive global economy.
A Growing Disconnect Between Education and Employment
The core of the crisis lies in a stark mismatch between the skills graduates possess and the needs of employers. Hanibal Camua, PBEd Executive Director, highlighted this paradox, stating, “Our graduates cannot find jobs while industries cannot also find the right talent—so this paradox continues to define our education and labor landscape.” This skills mismatch is not merely a statistic; it reflects a deeper “structural failure” in what Camua described as the country’s “education to employment pipeline.”
The implications are profound. As Camua emphasized, “This is not merely an education concern. It is a national economic issue. The future of our country hinges on how well we prepare our people, not just in terms of credentials but in terms of skills and competence.” With industries struggling to find qualified workers and graduates facing unemployment, the economic cost of this disconnect is mounting, threatening the Philippines’ growth trajectory in an increasingly skills-driven global market. 
Overstretched Agencies and Systemic Fragmentation
Part of the problem stems from government agencies tasked with education being “stretched too thin,” as noted by PBEd in their assessment. Samantha Uichico, PBEd senior program manager, pointed out critical shortages within the Department of Education (DepEd), including a deficit of over 150,000 teachers and a backlog of 90,000 classrooms. Additionally, 55 percent of public schools lack an assigned principal or school head, hampering effective administration and oversight.
The challenges extend beyond DepEd. Thousands of senior high school graduates under the technical-vocational track remain uncertified due to a lack of assessors at the Technical Education and Skills Development Authority (Tesda). Uichico noted that 47,000 assessors are needed just to clear the existing backlog, underscoring the manpower crisis within the system. Moreover, the fragmented nature of the education system—where DepEd, Tesda, and the Commission on Higher Education (CHEd) operate in silos with little alignment—creates a “slow, fragmented, and difficult to steer” framework, as Uichico described it.
Funding exacerbates these issues. The Philippines invests less than the recommended 4 percent of its gross domestic product in education, limiting the resources available to address these systemic gaps. The result, as Uichico stressed, is a crisis born from “decades of neglect” that has now transcended generations, with impacts felt far beyond the classroom walls.
Alarming Data Reflects Deep-Rooted Challenges
The data paints a grim picture of the education system’s failures. According to PBEd, 9 out of 10 learners struggle to comprehend simple, age-appropriate texts, indicating a fundamental breakdown in basic literacy and comprehension skills. Completion rates are equally troubling: only 7 percent of students who enter Grade 1 make it through the full education pathway to college, while 4 in 10 college students drop out before earning their degrees.
These figures are not just numbers; they represent lost potential and a workforce ill-equipped to meet modern demands. The inability to retain students through the education system, coupled with the failure to impart essential skills, directly contributes to the unemployment and underemployment plaguing the country. For a nation with a young, growing population, this represents a missed opportunity to harness a demographic dividend that could drive economic progress.
Urgent Calls for Long-Term Reforms
PBEd’s assessment is clear: urgent reforms are needed, and they must “transcend and go beyond administrations.” Camua warned that a standard six-year political term is insufficient to address generational problems, noting, “With Edcom 2 (Second Congressional Commission on Education) ending soon, the risk of losing momentum on education reform is very high.” The fear is that without sustained effort, the progress made through commissions like Edcom 2 could stall, leaving systemic issues unresolved.
Chito Salazar, PBEd president, echoed this sentiment, urging political leaders to prioritize long-term goals over short-term gains. He cited the K-12 curriculum as an example, pointing out that its benefits will only materialize 12 to 15 years after implementation. “What we need are brave politicians who are willing to implement long-term changes and reforms, even if those won’t be immediately recognized,” Salazar said. This call for political courage underscores the need for a shift in mindset among policymakers, who often face pressure to deliver quick, visible results.
Decentralization and Localized Solutions
One of PBEd’s key recommendations is the decentralization of education governance. The organization argues that educational challenges vary significantly across regions, and a one-size-fits-all approach through DepEd is ineffective. Camua advocated for localized solutions, stating, “Solutions must come from those who understand the context best—our school leaders, our local governments. Decentralization is not just an option, it is a necessity.”
By empowering regional and local authorities to tailor education policies to specific needs, the Philippines could address disparities more effectively. For instance, rural areas may require greater investment in infrastructure like classrooms and teacher training, while urban centers might focus on aligning vocational programs with local industry demands. Decentralization, if implemented thoughtfully, could bridge these contextual gaps and create a more responsive education system.
Aligning Education with Industry Needs
Another critical reform area is aligning school curriculums with the evolving demands of the labor market. Camua emphasized the importance of this alignment, noting, “Even if someone graduates, if their skills don’t match what the industry needs, it becomes difficult for them to find a job.” This mismatch is particularly evident in technical and vocational tracks, where certification delays and outdated training programs leave graduates unprepared for employment.
Salazar also highlighted the foundational role of early childhood education in addressing long-term challenges. “If our children can read properly from Grades 1 to 4, everything else becomes simpler. And when students can’t read well, they fall behind,” he said. Investing in early education, alongside improving teacher quality, could lay a stronger foundation for lifelong learning and employability.
Teacher Quality as a Cornerstone of Reform
Salazar further stressed that no curriculum reform can succeed without addressing the quality of educators. “No matter how much we change the curriculum, what matters more is the quality of the teacher,” he said. Teachers are the backbone of any education system, yet many in the Philippines lack the training and support needed to deliver effective instruction. Addressing this gap through comprehensive professional development programs is essential to improving student outcomes and breaking the cycle of underachievement.
The scale of the challenge is daunting, but the stakes are too high to ignore. A well-trained teaching workforce could transform classrooms into environments where critical thinking, problem-solving, and practical skills are nurtured—skills that are directly applicable to the workplace.
Economic Implications of Inaction
The education crisis in the Philippines is not an isolated issue; it is intricately linked to the country’s economic health. A workforce lacking in skills and competence cannot drive innovation or attract investment, both of which are crucial for sustainable growth. As global economies increasingly prioritize knowledge-based industries, the Philippines risks falling behind regional peers like Singapore and Vietnam, where education systems are more closely aligned with economic priorities.
Moreover, the social costs of this crisis are significant. High dropout rates and unemployment among youth can fuel inequality, social unrest, and a cycle of poverty that is difficult to break. Addressing the education-to-employment pipeline is not just about economic productivity; it is about ensuring social stability and equitable opportunities for future generations.
Looking Ahead: A Call for Collective Action
As the Philippines confronts this multifaceted crisis, the path forward requires collaboration across government, industry, and civil society. PBEd’s assessment serves as a wake-up call, urging stakeholders to move beyond patchwork solutions and commit to systemic change. Whether through decentralization, curriculum alignment, or teacher training, the focus must be on creating an education system that equips students not just with degrees, but with the skills to thrive in a dynamic world.
The road to reform is long, and the results may not be immediate. Yet, as Salazar and Camua have argued, the future of the nation depends on the willingness to invest in long-term solutions today. As discussions around education reform continue, one question looms large: can the Philippines muster the political will and collective resolve to transform its education system before the economic and social costs become irreversible?
