ADB approves new $400 million loan to support youth employment in PH

ABS-CBN News

Posted at Jul 27 2021 09:38 AM

ADB approves new $400 million loan to support youth employment in PH 1
The Asian Development Bank (ADB) in Ortigas City on June 17, 2021. Jonathan Cellona, ABS-CBN News/File

MANILA - The Asian Development Bank on Tuesday said it has approved a $400 million (P20.1 billion) loan to boost employment and skills programs for the Filipino youth.

The fund will assist the Facilitating Youth School-to-Work Transition Program Subprogram 3 to help "at-risk" young Filipinos find jobs faster, the ADB said in a statement. 

The Labor Department's Public Employment Services Offices (PESOs) programs such as labor market programs, workplace skills development and efforts to create a healthy work environment will also benefit from the fund, it said. 

Other reforms supported by the loan are the creation of a P1 billion Tulong Trabaho Scholarship Fund, an unemployment insurance scheme and the First Time Jobseekers Act, the ADB said.

“The pandemic has led to job losses in many sectors, especially among young people. There is an urgent need to help young Filipinos find work through innovative labor market programs and skills development initiatives,” said ADB Director for Public Management, Financial Sector, and Trade for Southeast Asia Jose Antonio Tan III. 

“This new loan reflects our long-term commitment to ensuring that young people find jobs to improve their lives and create a wider employment base for post-pandemic economic growth," Tan said. 

Unemployment in the Philippines ballooned in April 2020 due to the COVID-19 pandemic. The pandemic has also resulted in low-quality jobs, the lender said.

The new subprogram followed 2 loans approved in 2017 and 2019, the ADB said.

“This loan will help young job seekers, especially women, access training opportunities and enhance their skills development. It will strengthen labor market policies and provide assistance to returning Filipino workers who lost jobs overseas because of the pandemic through group livelihood and entrepreneurship programs,” said ADB Principal Financial Sector Specialist for Southeast Asia Stephen Schuster.

The ADB said it is preparing for "more support" for the labor sector in 2022.

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