EDCOM 2 Report: A Wake-Up Call for Business

The recently released EDCOM 2 Year Two Report, titled Fixing the Foundations: A Matter of National Survival, has laid bare the critical issues plaguing the Philippine education system.

A Classroom in Crisis – Overcrowded classrooms and a lack of learning materials continue to hinder basic education in the Philippines, leading to poor literacy and numeracy rates among students. I Illustrator: Riz

The findings reveal an alarming reality: foundational gaps in early childhood education, deficiencies in basic literacy and numeracy, misalignment in higher education and technical-vocational training, and a struggling teacher education system.

These educational weaknesses have direct and long-term repercussions on the country’s workforce and economic growth.

For the Philippine business sector, this report is not just an educational crisis—it is an economic and competitiveness crisis. A poorly trained workforce translates to decreased productivity, higher training costs, and an inability to meet the demands of rapidly evolving industries.

If left unaddressed, these issues will stifle the nation’s ability to compete in the global market, particularly in key sectors such as Business Process Outsourcing (BPO), technology, manufacturing, and financial services.

Challenges in Education and Workforce Readiness

The report highlights severe deficiencies in early childhood education, particularly in access to quality learning and nutrition programs.

A staggering 30% of Filipino children under five suffer from stunting, impairing their cognitive and academic development. Early childhood education is a critical determinant of workforce readiness, yet government funding remains inadequate.

In basic education, literacy and numeracy skills are at alarmingly low levels. The most recent Programme for International Student Assessment (PISA) results indicate that only 24% of Filipino students meet the minimum proficiency in reading, while only 19% meet proficiency in math.

The chronic lack of educational infrastructure, including overcrowded classrooms and inadequate learning materials, continues to hinder students from reaching their full potential.

Higher education and technical-vocational training also face a crisis of misalignment. Despite Technical and Vocational Education and Training (TVET) graduates having an 85.8% labor force participation rate, underemployment among them is at 22.6%, suggesting that many are employed in roles that underutilize their skills.

A large percentage of college graduates enter the workforce ill-equipped for industry demands, with high attrition rates of 39% in higher education nationwide and as high as 93.4% in the Bangsamoro Autonomous Region (BARMM).

Compounding these problems is the declining quality of teacher education. Only 36% of teachers in the Philippines specialize in the subjects they are assigned to teach, weakening instruction quality.

Teacher education programs in the country also rank among the shortest globally in terms of required training, affecting classroom readiness and long-term student learning outcomes.

EDCOM’s Recommendations for Reform

To address these challenges, EDCOM 2 proposes several key reforms. Prioritizing foundational learning is essential, which means investing in early childhood education and ensuring that all children achieve literacy and numeracy by Grade 3.

There is a need to realign curriculum standards and teacher training programs to better equip graduates with relevant workforce skills. Strengthening enterprise-based training and fostering closer partnerships between businesses and technical-vocational institutions will help bridge the job-readiness gap.

Expanding digital transformation initiatives in education will also reduce disparities in learning access and resources. Enhancing teacher education through stricter professional licensing and specialization standards will improve classroom instruction and student performance.

The Business Sector’s Role in Bridging the Gap

The private sector has a critical role to play in addressing these educational deficiencies. Industry-academia partnerships must be strengthened to ensure that universities and training institutions produce graduates who are workforce-ready.

Businesses should collaborate with higher education institutions and TESDA to co-develop curricula, create internship opportunities, and provide on-the-job training. Employers must also invest in upskilling initiatives to keep their workforce competitive in an era of rapid technological advancements.

Expanding corporate training programs and offering scholarships for skill-based learning will be key to ensuring a steady pipeline of talent.

Supporting early childhood education initiatives can also be a game-changer. Companies can contribute to corporate social responsibility efforts focused on improving access to education, funding school feeding programs, and providing teacher training workshops.

Investing in public-private partnerships to enhance school infrastructure and learning resources will further improve education outcomes. The business community must also take an active stance in advocating for policy reforms.

Business leaders should work closely with policymakers to push for increased government funding in education, particularly in foundational literacy, STEM (Science, Technology, Engineering, and Mathematics) education, and workforce upskilling. Creating strong linkages between the labor market and educational institutions will help address high underemployment rates and better match graduates with job opportunities.

Securing the Future of Philippine Competitiveness

The Philippine education crisis, as outlined in the EDCOM 2 Report, is an urgent challenge that requires immediate intervention.

This is not merely an academic issue—it is a national economic priority that will determine the country’s global standing and business competitiveness in the years to come.

The future of the workforce, innovation potential, and the overall productivity of industries depend on the success of these educational reforms. Businesses must go beyond being passive consumers of talent and become active stakeholders in shaping the education system.

By investing in workforce readiness today, the private sector plays a crucial role in building a sustainable, competitive, and resilient Philippine economy for future generations.