Philippines: Post-Covid-19 Business and Employment Recovery Program - Subprogram 1

approved

This Program will provide a policy-based loan under the COVID-19 Crisis Recovery Facility of the Bank and will be co-financed with the Asian Development Bank (ADB). The pandemic shock to the Philippines' economy created a longer-lasting negative impact on private sector employment in the country and has persisted even after the economy has started to recover. Working-age population and elders, especially women, have been the most negatively affected. Against the backdrop of this labor market situation, the government launched the National Employment Recovery Strategy (NERS) in May 2021. NERS is to improve access to employment, livelihood, and training opportunities; and to support existing and emerging businesses to create sustainable employment opportunities in light of the pandemic-induced job losses. The Program is anchored on NERS, combining business, skills development, and employment-related reforms. Through the Program, landmark regulations and reforms will be put in place. The Program will support three reform areas: (1) active labor market programs expanded to meet post-pandemic employment needs; (2) pandemic-induced skills mismatches addressed and institutional linkages between skills training and employment strengthened; and (3) post-pandemic business and investment framework liberalized for a job-rich recovery. Reform area 1 facilitates matching good quality, more sustainable and greener jobs with jobseekers while providing targeted help to women: a jobs transition program tailor-made for the needs of women will be piloted, including skills training, livelihood grants, and childcare assistance. Reform area 2 enhances the quality of labor by linking skills training with demand. Reform area 3 supports increased job creation in private businesses by introducing structural reforms, making tax policy efficient, removing impediments to foreign investment, and creating ecosystem for innovation.