MANILA, Philippines (Sep 2026) – The Philippines could be bleeding up to 10 percent of its gross domestic product every year simply because skilled Pinoy workers are not being allowed to do what they do best.
According to Michael Ralph Abrigo, a senior research fellow at the Philippine Institute for Development Studies (PIDS), talent misallocation happens when educated and capable employees perform tasks far below their capabilities or get buried under work outside their core expertise.
Speaking at the 2026 Development Policy Research Month kick-off press conference on Sept. 1, Abrigo explained that the country’s main struggle is no longer just about producing trained professionals, but actually deploying them properly.
When teachers spend more time on paperwork than teaching
Public school teachers offer a clear look at how this problem plays out daily. Instead of spending their energy inside the classroom, many educators are forced to complete administrative reports and run various committees before they can even begin teaching.
Abrigo noted that teachers in other countries can walk straight into classrooms and focus entirely on their students, whereas Pinoy teachers face constant administrative detours that drain their time and productivity.
Biases and administrative hurdles hold qualified talent back
The bottleneck goes beyond official duties. Informal workplace habits, corporate skepticism, and arbitrary rules also restrict how Pinoy workers are utilized.
When senior high school was first introduced, many private employers doubted whether graduates were ready for the job market. Once companies began hiring them, however, employers realized these young workers were remarkably efficient. A subsequent study revealed that senior high school graduates ended up earning roughly 15 percent more than workers who only completed junior high school.
Health and education are economic engines, not just social programs
PIDS Senior Research Fellow Valerie Gilbert Ulep highlighted that viewing health and education strictly as social concerns misses the bigger picture. Both functions serve as fundamental economic infrastructure.
Poor health directly causes absenteeism and reduces worker output across entire industries. Meanwhile, expanding access to schools is not enough on its own; educational policies must focus on actual learning quality and practical skills so workers can thrive in modern jobs.
Building a system that works together
To fix these systemic gaps, PIDS Senior Research Fellow John Paolo Rivera stressed that government policy must treat education, healthcare, and economic planning as interconnected parts of one single machine.
Businesses also require regulatory predictability and clear rules to invest confidently and create quality opportunities. Fixes will not come from simply creating more government programs, but from aligning incentives so every Pinoy worker can contribute at their full potential.
“The goal is not simply to do more things. It is to make the system work better together,” Abrigo said.
