The Philippines scored a meager 0.52 in the World Bank’s updated Human Capital Index (HCI) last June 2024. This means that children born today in the country are expected to reach only 52% of their potential productivity by adulthood.
Compared to its ASEAN neighbors, the Philippines lags behind Vietnam (0.69), Malaysia and Thailand (0.61), and Indonesia (0.54). These differences reflect varying levels of health and education systems, which influence the capabilities of the future workforce.
The HCI measures how well a country is preparing its future workforce, focusing on factors like child survival, education access, and the quality of learning. A higher score suggests that a country’s children are more likely to survive, attend school, and develop the necessary skills for employment. A lower score, however, signals gaps in healthcare and education that could limit future productivity.
According to the World Bank’s report, there is a need for the Philippines to improve both its health and education systems. Although the country has made strides in child survival, it still faces significant challenges, particularly in early childhood health and nutrition.
“Stunting, which affects a quarter of all children in the Philippines, limits the cognitive and physical development of children, ultimately affecting their learning outcomes,” the report said, noting the issue of malnutrition greatly affects children’s ability to perform well in school and ultimately impacts the nation’s long-term development.
Education quality is another major area of concern. The report detailed that despite improvements in access to schooling, “learning outcomes in the Philippines are significantly below the regional average, indicating that many children are not learning the skills necessary for a productive future.”
The quality of education is also uneven, particularly between urban and rural areas.
“Educational quality gaps persist, particularly between urban and rural areas, where children in remote areas often do not have access to quality teachers or educational resources,” it added.
To address these gaps, the report urged the Philippines to invest in improving education quality through better teacher training and school infrastructure.
“Improving the quality of learning for Filipino children is essential to ensuring that they are prepared for the workforce of the future,” the report pointed out, as well as a call for stronger investments in healthcare, especially for mothers and children.
“Investing in human capital, especially health and education, is crucial to the Philippines’ long-term economic growth and prosperity.”
By focusing on improving nutrition, health, and education quality, the Philippines can better prepare its future workforce, reduce the gap with its ASEAN neighbors, and increase its overall productivity potential.
