Policy Issue and Objectives
Policymakers, educational institutions, training providers, employers, labor experts, and the government have long debated how to secure the youth’s future in the labor market. Global estimates highlight an alarming picture: one in four, or 262 million young people aged 15-24, are not in employment, education, or training (NEET) in 2025.1 This form of labor underutilization continues to manifest in the Philippines, as around 10.6 percent of the youth population are NEET.2 Another way that labor underutilization manifests is through the “educated jobless” phenomenon. This pertains to college graduates who constitute the largest share of unemployed persons in the labor market, ranging from 38 percent in 2021 to 44 percent in 2024, presenting a profound disconnect in the labor market that go beyond simple supply-demand imbalances. The following scenarios depict these mismatches:
- Where academic credentials do not align with industry-specific competencies needed in available positions.
- Where the economy and industry fail to generate quality jobs that utilize/require the education and skills of the available workforce.
The country experiences different forms of labor underutilization. Hence, more strategic and inclusive labor market policies and employment facilitation are required (Davern, 2020). Public employment services (PES) are considered key institutions that facilitate a wellfunctioning labor market in an inclusive and sustainable manner. Over the years, the range, depth, and quality of services offered by PES have increased, especially for groups that are normally excluded from the labor market, such as women and young people without experience (ILO, 2020).
Job placement offices (JPOs) exist within the PES ecosystem. They represent a targeted intervention to build employability and facilitate employment for the youth and jobseekers. DOLE Department Order No. 157-16 series of 2016 (Sec. 3) defined JPOs as “non-fee charging units within an education institution (EI) created under a memorandum of agreement (MOA) between an EI and DOLE that provides employment facilitation services to its students and graduates and coordinate its activities with the local government unit PESO.” JPOs are also referred to as “school-based/local PESOs” and are considered employment facilitation hubs, responding to the needs of industry and global community.
However, despite the JPOs’ potential and explicit mention as formidable strategic action points in the Philippine Labor and Employment Plan 2023-2028 and Trabaho Para sa Bayan Plan 2025-2034, empirical evidence on their performance and role in PES remains fragmented and scarce. To the author’s knowledge, no in-depth, holistic assessment exists on JPOs to inform labor market policy and program implementation.
It is in this context that this pioneering study defines the role of JPOs in PES. The study localizes the International Labour Organization’s PES Diagnostic Tool (2021) and its fiveclustered framework. The results of the scan are then used as a basis to propose a JPO Strategic Agenda in support of JPOs in achieving their full potential. The study also highlights collaboration points between JPOs, DOLE, and public employment service offices (PESOs) for a more responsive and innovative PES network capable of addressing labor underutilization.