THE Philippines is well-positioned to capitalize on demographic changes reshaping economies given its burgeoning working-age population, but it should address critical shortcomings in education and job preparation according to a World Economic Forum (WEF) report.

While many high-income countries have aging populations and shrinking labor forces, the Philippines continues to enjoy an expanding working-age demographic, which is an advantage as industries worldwide get transformed by technology, climate change and economic shifts, the WEF said in its Future of Jobs Report 2025.

“Many economies’ actual ability to leverage demographic dividends will depend on their accompanying success or otherwise, in inclusive job creation,” it said in the Jan. 8 report.

This potential can only be unlocked if investments are made in education and skill development to enhance talent availability.

Employers around the world in the WEF survey identified the top five public policy priorities to enhance talent availability in the Philippines. At the top is flexibility in hiring and firing practices (57%), followed by provision of reskilling and upskilling (52%), funding for reskilling and upskilling (48%), improvements in public education systems (48%) and changes to immigration laws (44%).

Two-thirds of employers in the Philippines identified skill gaps as a significant barrier to business growth in the next five years, prompting many to scale up reskilling initiatives.

The upskilling and reskilling outlook showed that 32 of 100 Filipino workers would not need training by 2030, 28 will be upskilled in their present roles, 29 will be upskilled and redeployed and 10 were unlikely to upskill.

“Employers operating in the Philippines anticipate that almost three in 10 workers will be upskilled and then redeployed to new roles,” it added.

The study also showed the top core skills in 2025 and the skills expected to grow the most by 2030 in the Philippines. These are skills in artificial intelligence (AI) and big data at 85%, followed by resilience, flexibility and agility (77%), creative thinking (76%), networks and cybersecurity (73%) and technological literacy (65%).

It said technology-related roles are the fastest-growing jobs in percentage terms.

These include professionals such as big data specialists, fintech engineers, AI and machine learning specialists and software and application developers. 

In the next decade, about 1.2 billion young people in emerging economies would become working-age adults, the WEF said, citing the World Bank. The job market in these economies is only expected to create 420 million new jobs, leaving nearly 800 million young people in economic uncertainty.

Aging and expanding working-age populations are the two demographic shifts seen transforming global economies and labor markets, according to the report.

Higher-income economies predominantly have aging working-age populations, while lower-income economies like the Philippines are experiencing expanding working-age populations.

“These trends drive an increase in demand for skills in talent management, teaching and mentoring, and motivation and self-awareness,” it said.

“Aging populations drive growth in healthcare jobs such as nursing professionals, while growing working-age populations fuel growth in education-related professions, such as higher education teachers,” it added.

The report gathered insights from more than 1,000 global employers, representing more than 14 million workers across 22 industries and 55 economies.

It explored how macroeconomic trends will affect jobs and skills, and outlined workforce transformation strategies employers plan to implement from 2025 to 2030. — Chloe Mari A. Hufana