The Department of Labor and Employment (DOLE) and the Commission on Higher Education (CHED) has recently signed a memorandum of agreement (MOA) to jointly address the persistent mismatch between graduates’ skills and labor market demands.
Labor Secretary Bienvenido E. Laguesma and CHED Chairperson Shirley C. Agrupis formalized the, which seeks to ensure that higher education programs respond more closely to evolving industry needs.
The MOA outlines mechanisms for better labor market information, curriculum alignment with emerging skills, and bolstered youth employment initiatives, including the Government Internship Program (GIP) and the Special Program for Employment of Students (SPES).
Under the agreement, DOLE regional offices will deliver labor market data and career guidance, while CHED will support in raising awareness of employment services and share monthly reports on its own job placement efforts.
The partnership comes as the country faces a sudden spike in joblessness.
In July 2025, data from the Philippine Statistics Authority (PSA) showed that the national unemployment rate climbed to 5.3 percent, or 2.59 million Filipinos without work.
This was 1.6 percentage points higher than the 3.7 percent (or 2.38 million individuals) recorded in the same month last year.
Meanwhile, the number of unemployed Filipinos aged 15 to 24 rose to 1.08 million in July 2025 from 1.02 million a year earlier.
This pushed the youth unemployment rate to 18.1 percent, up from 14.8 percent in July 2024.
The proportion of youth not in education, employment, or training (NEET) also rose to 15.9 percent from 13.9 percent, while labor force participation among young people dropped to 29.5 percent from 34.2 percent year-on-year.
DOLE Undersecretary Carmela I. Torres said the agreement with CHED is meant to directly confront the country’s employment challenges by aligning education with labor market needs.
‘This partnership turns the policy goals initiated by the President into concrete actions for stronger employment and workforce readiness with the adverse effects of climate change, rapid technological developments, and the persistent challenges posed by job skills mismatches,’ Torres said.