Edcom2: TVET pays off, but curriculum gaps, dropouts drag wages

MANILA, Philippines — Technical and Vocational Education and Training (TVET) in the Philippines showed that returns from graduates observed a successful rate, but there seems to be a slight dent when it comes to its curriculum revisions and wage penalties for those who failed to complete their programs, the Second Congressional Commission on Education (Edcom 2) has found.

In its final report titled “Turning Point: A Decade of Necessary Reforms,” the congressional education body stressed that graduates who managed to complete their TVET programs earn higher average wages than those who do not.

It found that TVET Level 5 graduates, or those who completed postsecondary, non-degree or short-cycle tertiary programs are considered “well-established” in the labor market.

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They also earn more than those who graduated from senior high school and, in rare cases, even outperform bachelor’s degree undergraduates in employment outcomes, according to Edcom.

“These findings demonstrate that advanced TVET qualifications can serve as a viable and sustainable middle-skill pathway, capable of producing competitive and industry-relevant workers in high-demand sectors,” the commission said in its final report.

However, the education body found, through studies, some setbacks faced by TVET graduates and the programs themselves, such as the curriculum revisions moving at a glacial pace.

The Edcom was able to speak with one TVET trainer, who was not identified, and pointed out how the programs’ contact center curriculum was “extremely outdated.”

“This curriculum lag undermines TVET’s ability to equip learners with current, industry-aligned skills–particularly in fast-evolving sectors such as business process outsourcing, digital technology and advanced manufacturing,” the commission said.

As for the wage penalties, the commission found that workers in the healthcare or information and communications technology sectors who took TVET but failed to complete their national certification (NC) earn substantially less than those with no TVET at all.”

This somehow implies that non-certification may serve as a “negative labor market signal,” according to Edcom.

Completers of the TVET program, nevertheless, are found to be “superior” in matched occupations, as well as ICT completers, the commission added.

`Most pronounced’

TVET completers are “most pronounced” among individuals with secondary education or below when it comes to wage premiums and this displays “positive labor market signal” to employers, resulting in higher wages compared to their peers with similar academic backgrounds but with no technical training, the Edcom found.

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“However, the study also noted that these benefits decline for individuals with higher levels of formal education and are minimal for those who have not completed secondary schooling,” the commission said.

This only means that there is a pressing need for concerned education agencies to integrate foundational education with technical training and ensure that students possess the skills in literacy, numeracy, and problem-solving skills for them to maximize their TVET qualifications, it added.

As part of its recommendations in its 10-year action plan for education, the Edcom suggested that the Technical Education and Skills Development Authority (Tesda) should expand and empower Industry TVET Boards and the Sector Skills Councils in high-growth and emerging sectors.

These sectors include advanced manufacturing, ICT, healthcare, construction, green industries, and the creative economy.

“These boards must be quadripartite in composition, involving government, industry, academe, and labor to ensure that training regulations, competency standards and assessment methods are industry-led and future-oriented,” the Edcom noted.

Tesda should also consider institutionalizing formal collaborations between the industry boards and the Commission on Higher Education’s technical panels through various mechanisms, such as the formation of a joint board on curriculum standards or discipline and sector skills councils.

“This alignment will harmonize TVET qualifications and higher education programs, support ladderized pathways and enable mobility within the Philippine Qualifications Framework,” the commission stressed. /mr