TESDA scholarships aid jobs but miss poorest Filipinos

By Francis Allan L. Angelo

For decades, the Technical Education and Skills Development Authority (TESDA) has been instrumental in building the Philippine workforce by delivering accessible, high-quality, and efficient technical and vocational education and training (TVET).

Millions of Filipinos have benefited from TESDA programs by gaining the skills necessary for employment, entrepreneurship, and career advancement.

However, a recent study by the Philippine Institute for Development Studies (PIDS) reveals a concerning trend: while TESDA scholarships boost employability, the country’s poorest are increasingly left behind.

Authored by Dr. Maribel Daño of De La Salle University, the PIDS study titled “Assessing the Effectiveness of TESDA Scholarship Programs in Targeting the Poor” analyzed data from 2018 to 2022.

The study found a decline in the share of poor and disadvantaged scholars in TESDA’s scholarship programs, with increasing participation among wealthier Filipinos.

These disadvantaged scholars include individuals from low-income households, informal workers, out-of-school youth, and the unemployed—groups that TESDA is mandated to prioritize.

“The 2022 regional distribution of scholarship budgets does not necessarily align with regions with high poverty incidence, where most disadvantaged scholars are located,” Daño said.

The study warned that this pattern signals the gradual exclusion of poor beneficiaries, who are the intended primary recipients of TESDA’s poverty-targeting initiatives.

Despite the scholarships’ positive impact on graduate employment outcomes, the current system appears to disadvantage those with the greatest need for support.

To improve inclusivity and equity, the study recommended utilizing government databases such as the Department of Social Welfare and Development’s Listahanan and the Philippine Identification System to verify applicants’ poverty status.

Still, the study cautioned that poverty alone should not be the only criterion for awarding scholarships.

“Motivation has a significant positive partial effect on various outcomes across scholarship types,” the report stated.

According to Daño, applicants’ motivation to complete training and seek employment should also be assessed through interviews or scorecards during the selection process.

This dual approach—validating financial need and gauging commitment—could better ensure that support reaches individuals who are both poor and determined.

The study also urged policymakers to align TESDA’s budget allocation with provincial poverty data to improve geographic equity in program access.

“Budget allocation could use a scorecard that gives higher weights to regions with elevated poverty rates, in addition to weights for other criteria such as alignment with priority sectors,” Daño added.

This recommendation is consistent with the 2023–2028 National Technical Education and Skills Development Plan (NTESDP), which aims to ensure inclusive regional development.

Though targeting remains a challenge, the study acknowledged TESDA’s scholarships continue to positively impact graduates’ employment—albeit with a delayed effect.

“The scholarship has a positive effect on securing employment after one year, though not immediately after training,” Daño noted.

This lag is likely due to the location of many scholars in economically disadvantaged cities and municipalities where fewer jobs are immediately available.

Among the major TESDA programs, the Private Education Student Financial Assistance (PESFA) proved most effective in helping scholars gain employment right after training.

Both PESFA and the Universal Access to Quality Tertiary Education Act (UAQTEA) also demonstrated strong employment effects one year post-training.

However, while TESDA scholars generally passed assessments and obtained national certificates, the study found a mismatch between acquired skills and actual job roles.

“There is a significant negative association that the programs are not that useful in terms of the certification being required with the graduates’ jobs,” Daño explained.

In other words, while many graduates earned credentials, their employment often did not require or match those certifications.

Of the three major scholarship programs reviewed—Training for Work Scholarship Program (TWSP), PESFA, and UAQTEA—only UAQTEA showed a clear alignment between training and job outcomes.

PESFA scholars, meanwhile, reported that their training was still helpful, even if it was not directly related to their current roles.

These findings underscore the need for tighter coordination between TESDA, local governments, and industry players to ensure that training aligns with labor market demands.

The study recommends that TESDA enhance engagement with local employers, integrate labor market intelligence into course planning, and expand industry partnerships.

This would help reduce skills mismatch and make TESDA graduates more competitive in their local job markets.

TESDA’s scholarship programs remain one of the country’s most important tools for enabling social mobility through skills development.

However, if these programs are to fulfill their mission of promoting both productivity and equity, continuous evaluation is needed.

“If TESDA’s policy objective is to promote productivity and equity, then it is worth examining whether both goals are achieved, or one is sacrificed over the other,” Daño wrote.

She emphasized that ongoing policy reviews are essential to detect unintended outcomes and recalibrate programs to better serve poor and marginalized Filipinos.

In 2022, TESDA allocated PHP 7.77 billion (USD 134.68 million) across its three major scholarship programs, with TWSP receiving PHP 6.3 billion (USD 109.15 million), PESFA receiving PHP 765.5 million (USD 13.26 million), and UAQTEA getting PHP 707.3 million (USD 12.25 million).

These programs serve a diverse demographic, but the poorest Filipinos, particularly those in high-poverty provinces like the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM), Region IX, and Region XII, continue to face systemic barriers.

The study found that these regions—despite having high poverty rates—received lower shares of the total scholarship allocation compared to wealthier regions.

This misalignment raises concerns about equity and reinforces the call to reform budget allocation formulas based on poverty and employment data.

The study also highlighted institutional issues in how TESDA partners with training institutions and how those institutions select and support scholars.

According to the report, school-initiated screening processes often prioritize high-potential students regardless of financial background, potentially disadvantaging poor applicants.

Moreover, dropout rates were highest among TWSP scholars, especially in Regions IX and XII, suggesting the need for greater learner support and follow-up in these areas.

TESDA is also encouraged to revisit its scholarship evaluation frameworks by integrating longitudinal tracking of scholars’ outcomes and focusing on those from disadvantaged backgrounds.

This would enable better understanding of program effectiveness over time and support evidence-based decision-making.

As TESDA continues to evolve its strategies under the NTESDP 2023–2028, researchers and advocates urge stronger attention to inclusivity, data-driven targeting, and labor-market relevance.

The findings of this study offer timely insights as the government looks to improve the delivery of technical-vocational education and ensure no Filipino is left behind.

The full study can be accessed via the PIDS website at http://bit.ly/pidsdp2025-19.