ADB loan to boost youth employment in the Philippines
It is a “policy-based” loan – a type of lending where the funds will go to support policy reforms in a developing member country of ADB.
The fund will aid the Department of Labour and Employment (DOLE) in strengthening the job facilitation capacity of Public Employment Services Offices (PESOs) and labour-market programmes, enhancing the development of workplace skills, and creating a healthy work environment.
“This new loan reflects our long-term commitment to ensuring that young people find jobs to improve their lives and create a wider employment base for post-pandemic economic growth,” said Jose Antonio Tan III, ADB director for public management, financial sector and trade for Southeast Asia, adding that there is an urgent need to help the youth find work through innovative programmes and initiatives.
ADB said the loan will support reforms, including the creation of a US$200-million (₱10.06-billion) Tulong Trabaho Scholarship Fund, unemployment insurance scheme, and the First Time Jobseekers Act,
In addition, the loan is expected to strengthen labour market policies and provide help to overseas Filipino workers who lost their jobs due to the pandemic via group-livelihood and entrepreneurship programmes, said Stephen Schuster, ADB principal financial sector specialist for Southeast Asia.
“The third sub-programme will also strengthen government measures to address the impact of the pandemic on youth employment,” said ADB. The earlier two loans in 2017 and 2019 financed reforms leading to the operationalisation of PESOs and the establishment of DOLE’s flagship programme JobStart Philippines, according to CNN Philippines.