Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. 2397 
Introduced by HON. MIGUEL LUIS R. VILLAFUERTE, HON. VINCENZO 
RENATO LUIGI R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. HORIBATA, AND 
HON. TERRY L. RIDON 
EXPLANATORY NOTE 
Job-skills mismatch, driven by outdated education systems and the rapidly evolving 
labor market demands, remains a persistent issue in the Philippines. On a micro level, it leads 
to unemployment, underemployment, wage inequality, and low morale of employees. An 
article published in the Philippine Institute for Development Studies mentioned that 39% of 
employed Filipinos are overqualified for their jobs, while 29% lack the necessary qualifications. 
It also highlighted that individuals affected by the job-skills mismatch often feel frustrated as 
they look for career opportunities with growth potential but realize they lack the necessary 
technical and digital skills that are now highly sought after.1 For industries, this dilemma results 
in labor shortages, reduced productivity, and diminished competitiveness as employers often 
struggle to find workers who possess the specific skills and competencies required for evolving 
job roles. When overall operational efficiency of industries is affected, job creation is stifled 
and economic growth slows down. 
This proposed measure mandates the establishment of a tripartite council which shall 
serve as a national coordinating body tasked in formulating policies and programs to address 
the job-skills mismatch in the country. Likewise, the Council shall submit an annual report to 
Congress on the status of employment of college students and new graduates for the last five 
years, as well as an assessment of the trends in the labor market and the skills required by 
various industries and business establishments. 
This bill is in line with the goals of Republic Act No. 12063, or the “Enterprise-Based 
Education and Training Framework Act” which boosts collaboration between education 
institutions and employers. It also supports the goals of the Philippine Development Plan, 
National Technical Education and Skills Development Plan, National Employment Recovery 
Strategy, and RA No. 11230, or the “Tulong-Trabaho Act,” all of which emphasize stronger 
industry-academe-government partnerships to address workforce needs and promote 
inclusive growth. 
A similar bill was approved by the House of Representatives and transmitted to the 
Senate during the 19th Congress. 
In view of the foregoing, the immediate passage of this bill is earnestly sought. 
1 Philippine Institute for Development Studies.  Skills mismatch hampers Philippine economic growth, experts say. Philippine 
Institute for Development Studies.  https://www.pids.gov.ph/details/news/in-the-news/skills-mismatch-hampers-philippine-
economic-growth-experts-say 
July 28, 2025
10:30 am


HON. MIGUEL LUIS R. VILLAFUERTE 
HON. VINCENZO RENATO LUIGI R. VILLAFUERTE 
HON. TSUYOSHI ANTHONY G. HORIBATA 
HON. TERRY L. RIDON 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. 2397 
Introduced by HON. MIGUEL LUIS R. VILLAFUERTE, HON. VINCENZO 
RENATO LUIGI R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. HORIBATA, AND 
HON. TERRY L. RIDON 
AN ACT CREATING A TRIPARTITE COUNCIL TO ADDRESS UNEMPLOYMENT, 
UNDEREMPLOYMENT, AND THE JOB-SKILLS MISMATCH PROBLEM IN THE 
COUNTRY, AND APPROPRIATING FUNDS THEREFOR 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1.  Declaration of Policy. – It is declared the policy of the State to promote the 
sustained development of a skilled citizenry and maintain a reservoir of national talents 
consisting of Filipino scientists, entrepreneurs, professionals, managers, high-level technical 
manpower, and skilled workers and craftsmen in all fields.  Skills development can reduce 
unemployment and underemployment, increase productivity, and improve the standards of 
living.  
To this end, the State shall ensure the relevance and adequacy of academic courses 
in the higher education curriculum and training programs offered in technical-vocational 
institutions in relation to the needs and requirements of the business and industry sectors and 
the over-all human resource requirement of the country pursuant to its economic development 
goals.   
SECTION 2. Creation of a Tripartite Council. – There is hereby established a Tripartite 
Council, hereinafter referred to as the Council, that shall formulate policies and programs to 
address the job-skills mismatch in the country. It shall be a coordinating body among the 
government, academe and industry sectors to primarily monitor economic trends in the global 
and domestic markets, including those pertaining to business and commerce and the local 
labor market, and to generate information relative to employment, unemployment, 
underemployment, and job-skills mismatch. The Council shall be made up of representatives 
from the government, academe, and industry.  
The government representatives shall be composed of the following: a Commissioner 
of the Commission on Higher Education (CHED); a Deputy Director-General of the Technical 
Education and Skills Development Authority (TESDA); an Undersecretary of the Department 
of Education (DepEd); an Undersecretary of the Department of Labor and Employment 
(DOLE); and an Undersecretary of the Department of Trade and Industry (DTI).   
The representatives of the academe shall be the presidents of the federations of public 
and private higher education institutions (HEIs), public and private technical-vocational 
institutions (TVIs), and accreditation bodies of higher and technical-vocational educational 
institutions, which include the following: Philippine Association of State Universities and 


 
 
Colleges; Association of Local Colleges and Universities; Coordinating Council of Private 
Educational Associations; Technical-Vocational Schools and Associations of the Philippines; 
National Network of Quality Assurance Agencies; and the Federation of Accrediting Agencies 
of the Philippines.  
   
 
The representatives of the industry sector shall be the presidents of the following 
business and industry federations: Employers Confederation of the Philippines; Makati 
Business Club; Semiconductor and Electronics Industries in the Philippines Foundation, 
Incorporated; Information Technology and Business Process Association of the Philippines; 
Philippine Business for Education; Management Association of the Philippines; Philippine 
Business for Social Progress; and the People Management Association of the Philippines.  
  
 
The Council shall be headed by a CHED Commissioner as Chairperson, and the 
Deputy Director-General of the TESDA shall be its Vice-Chairperson.  
 
The members of the Council, except for the ex officio members, shall receive per diem 
for every meeting attended in accordance with existing rules and regulations.   
  
The Council shall be attached to the CHED for administrative and budgetary purposes.  
  
 
The CHED shall provide a secretariat to the Council to be manned by the organic 
personnel of the CHED and may be augmented by the employees from the member-agencies 
of the Council through detail or secondment.  
  
  
SECTION 3. Powers and Functions of the Council. – The Council shall have the following 
specific powers and functions:  
  
(a) Monitor the trends in the labor market, both domestic and international, and the 
incidence of unemployment, underemployment and the job-skills mismatch problem 
in the country;  
  
(b) Formulate short-term and long-term policies, plans and programs that shall address 
job skills mismatch, unemployment, and underemployment;  
  
(c) Conduct an inventory, review and evaluation of courses, academic programs and 
curricula of public and private HEIs and training programs implemented by TVIs;  
  
(d) Conduct an assessment of qualifications, skills and competencies of students and 
graduates of higher education courses and technical-vocational education and 
training and benchmark these with national and international standards such as the 
Philippine Qualifications Framework, Association of Southeast Asian Nations 
Qualifications Reference Framework, other frameworks, and international 
agreements to which the Philippines is a signatory;   
  
(e) Conduct an inventory of job specifications and skills requirement of various 
industries;   
  
(f) Recommend to the President of the Philippines, Congress and other government 
institutions policy measures that need to be undertaken in addressing the problems 
of unemployment, underemployment and job-skills mismatch;   
  
(g) Hold regular quarterly meetings; and  
  
(h) Perform such other functions as may be necessary for its effective operation to 
achieve the mandate of this Act.  
  


 
 
SECTION 4. Annual Report and Assessment. – Upon the effectivity of this Act, the Council 
shall submit an annual report to Congress on the status of employment of college students 
and new graduates for the last five years, as well as an assessment of the trends in the labor 
market and the skills required by various industries and business establishments.  
SECTION 5. Appropriations. – The amount necessary for the implementation of this Act shall 
be included in the annual General Appropriations Act.  
  
SECTION 6. Implementing Rules and Regulations. – Within ninety (90) days after the 
effectivity of this Act, the CHED shall, in coordination with the TESDA, DepEd, DTI and DOLE, 
as well as other education stakeholders, issue the rules and regulations for the effective 
implementation of this Act.   
  
SECTION 7.  Separability Clause. – If, for any reason, any portion or provision of this Act 
shall be held unconstitutional or invalid, the remaining provisions not affected thereby shall 
continue to be in full force and effect.   
  
SECTION 8.  Repealing Clause. – All laws, presidential decrees, executive orders, rules and 
regulations, issuances or parts thereof, which are inconsistent with the provisions of this Act, 
are hereby repealed, amended or modified accordingly.  
  
SECTION  9.  Effectivity. – This Act shall take effect fifteen (15) days after its publication in 
the Official Gazette or in a newspaper of general circulation.    
  
 
Approved,