The competitiveness of the Philippine labor force declined in the past 10 years, according to the latest World Talent Ranking of the International Institute for Management Development (IMD).
The annual report, which calculated the talent rankings annually from 2005 to 2014, showed that the competitiveness of the Philippines labor force dropped 12 notches to 41st out of 60 countries ranked worldwide this year, from 29th in 2013.
Compared to 2005, the IMD said the Philippines’s ranking declined by three notches from 38th a decade ago.
“The best-ranked countries have a balanced approach between their commitment to education, investment in developing local talent and their ability to attract overseas talent,” IMD World Competitiveness Center Director Arturo Bris said. “Countries with smart talent strategies are also highly agile in developing policies that improve their talent pipeline.”
IMD used three factors as criteria to determine the rankings. These factors are investment and development, where the Philippines ranked 59th out of 60; appeal, 34th; and readiness, 21st.
To determine competitiveness based on the investment and development factor, IMD used the total public expenditure on education, total public expenditure on education per pupil, and pupil-teacher ratio in elementary and high school. The investment and development factor also includes apprenticeship, employee training and the percentage of females in the labor force.
The Philippines ranked last at 60th overall in terms of pupil-teacher ratio in the secondary level, and ranked 59th in the pupil-teacher ratio in the primary level.
The country did better in apprenticeship, where it ranked 29th overall; and the employee training, 31st out of 60.
Meanwhile, to determine appeal, IMD used criteria, such as the cost-of-living index; attracting and retaining talents; and worker motivation.
Other criteria included in this factor are brain drain; quality of life; and foreign high-skilled people.
The Philippines ranked the lowest in quality of life at 45th out of 60 economies, and drain at 44th overall.
The country ranked its highest in terms of cost of living at 19th out of 60; and worker motivation, 23rd.
On the other hand, to determine readiness, IMD used criteria, such as labor-force growth, skilled labor; finance skills, international experience, competent senior managers, and educational system.
Other criteria include science in schools, university education, management education, and language skills.
The Philippines ranked its lowest in science in school, where it ranked 32nd overall, and educational system, 31st out of 60 countries.
The country ranked the highest in terms of skilled labor, where it ranked fifth overall; and competent senior managers, 14th out of 60 countries worldwide.
“Fluctuations in a country’s ranking from 2005 to 2014 may stem from cyclical economic and sociopolitical issues that affect immigration policies and/or investment in education,” Bris said. “In some cases, such policies could reduce a country’s ability to attract overseas talent despite strong commitment to local talent development.”
IMD said the ranking is based on more than 20 indicators. Some of these are statistical, and others are drawn from an exclusive IMD opinion survey of 4,300 international executives.
It added that the World Competitiveness Center’s extensive historical database allows for an assessment of the ranking’s evolution from 2005 to 2014.
The 2014 IMD World Talent Ranking is led by Switzerland, followed by Denmark, Germany, Finland and Malaysia.