Philippines drops to near bottom in IMD World Talent Ranking 2025

The Philippines fell to near bottom in an annual global ranking of countries’ ability to attract and retain a skilled workforce, amid a decline in the quality of life, the Institute for Management Development (IMD) World Competitiveness Center said.

In the IMD’s World Talent Ranking (WTR) 2025, the Philippines slipped a spot to 64^th out of 69 countries. Last year, it ranked 63^rd out of 67 economies.

This was the Philippines’ worst showing in 20 years or since 2005.

The Philippines’ talent competitiveness also continued to lag behind Asia-Pacific neighbors. It ranked 13^th out of 14 Asia-Pacific countries, better only than Mongolia (69^th overall).

Hong Kong (4^th) was the highest-ranking economy in the Asia-Pacific. It was followed by Singapore (7^th), Taiwan (17^th), Australia (19^th), Malaysia (25^th), New Zealand (33^rd), South Korea (37^th), China (38^th), Japan (40^th), Thailand (43^rd), Indonesia (53rd), and India (63^rd).

The global talent index was again dominated by European economies led by Switzerland (1^st overall), Luxembourg (2^nd), and Iceland (3^rd).

The WTR rankings are based on three factors: “appeal,” or the ability of the economy to attract foreign talent and retain local talent; “investment and development,” which refers to the measurement of resources allotted to develop a homegrown workforce; and “readiness,” or the quality of the skills in a country’s talent pool.

The Philippines saw a decline in all factors, dropping two places to 66^th in investment and development. It slipped two spots to 56^th in appeal and fell six places to 58^th in readiness.

“Generally speaking, the Philippines is a net exporter of talent. And it means that it will always find it difficult to retain the homegrown talent in the country,” Arturo Bris, director of the World Competitiveness Center and professor of finance at IMD, said at a hybrid press briefing.

“At the same time, interestingly, if you look at our indicators, the Philippines ranks 13^th in the availability of skilled labor in the country. So, it seems that executives and leaders in the country do not feel that they don’t find the talent that they would need,” he added.

LOW QUALITY OF LIFE

Mr. Bris noted the country has steadily declined in the rankings over the last few years and lagged in competitiveness mainly due to low quality of life in the Philippines versus its regional peers.

“I think the main driver is a declining quality of life. And again, remember that quality of life encompasses many different factors,” Mr. Bris said.

“The quality of life in the country, especially compared to other neighbors, like Thailand, Singapore, or Indonesia, is lower,” he added.

In particular, he said that the quality of life in the Philippines ranked 60^th out of 69 economies. It ranked 49^th in exposure to pollution, and 31^st in management remuneration.

Philippine Institute for Development Studies Senior Research Fellow John Paolo R. Rivera said that the country’s low ranking in the talent index “reflects chronic underinvestment in education, weak training systems, and poor talent retention.”

“Compared with Asia-Pacific peers like Malaysia or Singapore, we lag behind in both talent readiness and quality of life. To catch up, we must improve public spending on education, build industry-relevant skills, and make our economy more attractive to high-value talent,” he said in a Viber message.

Misiek Piskorski, dean of executive education and professor of digital strategy, analytics, and innovation at IMD, said that much of the Philippines’ success is mainly due to its cheap labor.

While many multinational companies set up back-office operations in the Philippines, this is now under threat due to increasing adoption of artificial intelligence (AI) in the business process outsourcing sector.

“One of the big worries that I have for Manila… is to what extent, again, AI will substitute many of these jobs,” Mr. Piskorski said.

“Will the Philippines be ready with enough workforce and enough skilled workforce to provide the next generation of services? That is my big concern,” he added.

To address these concerns, he said that there is a need for more focused investments.

“To me, the Philippines is always Manila, and the rest of the country is very, very different. And so, we also have to start thinking about what we do in Manila and what we do across other islands that might be far away from Manila and upskill people there to get things going,” he said.

Management Association of the Philippines (MAP) President Alfredo S. Panlilio said the quality of the workforce can be addressed by improving curricula across schools.

“I think an important aspect is how do you fix the curricula of the schools, from public to private, to make it relevant to the demands of the current workforce,” he told reporters on the sidelines of the 23^rd MAP International CEO Conference on Tuesday.

“Because although there are a lot of available positions, the companies cannot hire or don’t hire because they can’t find the talent that they’re looking for. So, it’s really about human capital,” he added.

During his stint with the Private Sector Advisory Council, Mr. Panlilio said he recommended focusing more on science, technology, engineering, and mathematics programs.

“Because AI is technology, we have to have the skill sets for our youth to develop those kinds of skills,” he said, adding that it is still uncertain what jobs will be created in the future,” he said.

He said the MAP taps academics to join committees within the organization, especially when doing research and in understanding data.

“So, we’re trying to bridge that, making sure that there’s a link or alignment between the educational system and what the corporates, and even the public sector, need down the road,” he added.

Source: Business World

Basic literacy among Filipinos is at 90%

The basic literacy rate among those five years old and older Filipinos was estimated at 90%, the Philippine Statistics Authority (PSA) reported, citing data from latest survey results.

According to the PSA’s 2024 Functional Literacy, Education, and Mass Media Survey (FLEMMS), about 93.1 million Filipinos out of 103.5 million of the total population are considered to be literate on a basic level.

The PSA defines “basic literacy” as the ability of a person to read and write a simple message in any language or dialect with understanding, and to compute or perform basic mathematical operations.

On the other hand, functional literacy is classified as the ability of a person to read, write, compute and comprehend and includes higher level of comprehension skills, such as integrating two or more pieces of information and making inferences based on the given information.

Functional literacy rate was at 70.8% or about 60.2 million Filipinos out of 85 million aged 10 to 64, the PSA said.

Females recorded a basic literacy rate of 90.9% while males posted a basic literacy rate of 89%.

Those in the 20-24 age group were the most literate at the basic level with a 96.1% rate, while those aged 60 and over were the least at 76.2%.

Seven out of 18 regions posted higher basic literacy rates than the national average.

Central Luzon led with a basic literacy rate of 92.8%. It was followed by Cordillera Administrative Region (CAR, 92.7%), Calabarzon (92.6%), Central Visayas (92.1%),

National Capital Region (NCR, 92%), Northern Mindanao (90.8%), and Davao Region (90.2%).

Meanwhile, four regions surpassed the functional literacy rates at the national level. These were CAR (81.2%), NCR (79.9%), Calabarzon (77.3%), and Central Luzon (73%).

The FLEMMS is conducted every five years, and the latest edition is the seventh in the series of literacy surveys that started in 1989. The 2024 survey was conducted between September to October 2024.

Source: Business World

19M illiterate Filipinos should jolt authorities to prioritize education

A report showing that about 19 million Filipino high school and senior high school graduates are illiterate should be considered as a “national emergency” and prompt authorities to prioritize education reforms, a congressman said.

Around 18.9 million Filipinos who completed secondary education from 2019 to 2024 may be considered illiterate, as they struggle to read and comprehend a simple story, according to a Philippine Statistics Authority (PSA) report discussed in a Senate hearing on Wednesday.

“This is not just a crisis — it’s a national emergency,” Party-list Rep. France L. Castro said in a statement. “When one out of five senior high school graduates cannot comprehend a simple story despite years of schooling, we are looking at a systemic failure that threatens our country’s future.”

A 2022 World Bank report showed that nine of 10 Filipinos are unable to read and understand age-appropriate text at age 10.

“It’s alarming that despite the K-12 program, millions of young Filipinos still struggle to understand what they read,” Ms. Castro said.

A new curriculum, introduced in August 2023, sought to streamline learners’ education by focusing on reading, literacy, and numeracy in the first three schooling years of a student.

In 2024, Education Secretary Juan Edgardo M. Angara said the curriculum, launched by Vice-President Sara Duterte-Carpio during her stint as education chief, will continue to be revised based on the experience of teachers and students.

The Philippine government’s failure to ensure a sufficient budget to the education sector have left schools underfunded and teachers with inadequate salaries, Antonio L. Tinio, a party-list nominee in the midterm elections, said in the same statement.

“The government has consistently failed to meet the UN-recommended education budget allocation of 6% of GDP,” he said in Filipino. “The truth is simple: if investment in education is lacking, teachers and education support personnel receive inadequate salaries, and in turn, students learn less.”

The Philippines only allocated 3.6% of its GDP to education in 2022 according to World Bank data, below the 4-6% benchmark set by the Incheon Declaration.

“We need to double our current education budget to address classroom shortages, hire more qualified teachers, increase the salaries of teachers and education support personnel, provide quality learning materials, and implement effective literacy interventions,” said Ms. Castro.

In 2025, the combined budget of the Department of Education, Commission on Higher Education, Technical Education and Skills Development Authority, and state universities and colleges stood at P913.3 billion.

Meanwhile, an education advocacy group on Thursday said that political candidates for this year’s midterm election should prioritize education in their policy agenda.

“It is time to rise above politics and champion education. We urge the candidates to present concrete plans and real solutions that tackle the learning crisis, workforce readiness, and systemic reforms,” Philippine Business for Education Executive Director Hanibal Camua said in a separate statement.

“Education agencies cannot fix this crisis alone — and without bold, sustained support from elected leaders at every level of government, our most critical goals will remain out of reach,” he added.

Source: Business World