THERE is a growing recognition in the Philippines that rapid developments in technology, particularly areas affected by artificial intelligence (AI), are putting greater pressure on the country’s labor market. Already, the skills gap has become critical; according to an analysis by the World Economic Forum last year, an estimated 68 percent of the Filipino workforce will need additional training by 2030 to remain viable, far above the 47-percent global average. As a consequence, much of the government’s strategy toward job creation has been to focus on “upskilling” the workforce, and to update training for entry-level workers through platforms such as the Technical Education and Skills Development Authority (Tesda).
The government recognizes the rapidly evolving technological landscape created by the growth of generative AI and increasing digitalization, and most of its efforts toward upgrading the Filipino workforce are directed along those lines. However, this may be self-defeating. AI and other forms of increasing automation, despite the wildly optimistic projections of unlimited jobs to result from developments such as the “Pax Silica” initiative and the tech-oriented Luzon Economic Corridor have only led to the reduction of human jobs, and will continue to do so. It is already happening; according to data last year from the International Trade Administration, the human share of work tasks in the Philippines is expected to decline from 43 percent currently to just 26 percent by 2030, while the share of job tasks done by completely nonhuman, automated technology will increase to 38 percent.
AI-proof job
While upskilling the workforce through the standard and vocational education systems to stay in step with the march of technology is important and should be given structured attention by the government, making it the priority in policy management of workforce development is a focus on diminishing returns. The government should instead throw more of its supporting efforts toward “AI-proof” jobs that are substantial economic drivers, of which nursing is perhaps the most productive.
Data from the Asian Development Bank reveals just how profoundly effective the nursing profession is in supporting the national economy, and doing so in such a way that reaches down to the level of individual households. Globally, there are approximately 65 million healthcare workers of all types — which already represents a shortage of some 10 to 15 million — and almost half of those, about 29 million, are nurses. The nursing profession is one of the most job-creating economic sectors in existence (in stark contrast to the job-reducing tech sector), creating 3.4 jobs across related industries for each nursing job.
There is a large untapped potential for employment as well. According to World Bank data, across Asia and the Pacific, health employment accounts for only 4 to 7 percent of total jobs, compared with up to 20 percent in advanced economies. Nursing professionals here in the Philippines have estimated the need for new nurses at about 200,000 a year — taking into account those who would work here and those aiming for overseas employment — and emphasize that the shortage complicates the government’s broader public health aims, such as the universal healthcare framework. Globally, the current shortage of nurses is estimated to be 5.8 million workers; with each nursing job returning about 10 times the initial investment — whether it comes from the government or individual families, not making nursing a top priority in skills and job development is, as the saying goes, leaving a lot of money on the table for the nation as a whole.
Another benefit of nursing is that it provides a great deal of formal job and career opportunity for women, although the work itself is gender-neutral. About 70 percent of all healthcare jobs worldwide and 85 percent of nursing jobs are held by women. While there are still income equalities, using nursing as part of a formula to close the employment gap between men and women could increase gross domestic product by as much as 35 percent, according to an analysis by the International Monetary Fund.
Finally, nursing is one of the very few professions for remittance-dependent countries like the Philippines, where overseas and domestic work actually complement each other. Nurses who work overseas and then return, which is the career path for a significant majority of them, bring with them a great deal of knowledge transfer, as well as their economic contribution, and are able to help improve the domestic health system.
