Purpose: The study aims to analyze education expenditure patterns and the impact of the number of graduates in the employment of the Philippines, and evaluate the integration of technological innovation and foreign direct investment and its relationship with employment. Moreover, future researchers can utilize this paper to understand the factors affecting employment in the Philippines. Methodology: This research utilized a descriptive-quantitative approach to explore and statistically analyze the relationships between the variables. Secondary data was collected mainly from the World Bank Database and Bangko Sentral ng Pilipinas and utilize Ordinary Least Square regression analysis using Gretl econometric software package to quantify the impact of the factors affecting the employment sector. Results were then presented in tables and graphs. Findings: The results showed that among the variables namely education expenditure, gross enrollment ratio, technological innovation, and foreign direct investment, education expenditure had a positive and significant impact on employment with a p-value of 0.0041. The findings show that education spending is rooted in the understanding that higher education strengthens human capital, thereby improving future employment prospects and helping to increase employment in the country. Additionally, technological innovation has a negative and significant impact on job mismatch with a p-value of 0.0104. The findings indicate that technological innovation in the Philippines lessens job mismatch and thereby positively impacts employment growth. Contribution to Theory, Policy and Practice: The study recommended that increased education expenditure, particularly for tertiary education, can significantly improve employment outcomes. It urged CHED to advocate for higher budget allocations to enhance access, quality, and relevance of education, ensuring curricula and training meet job market demands. Additionally, while technological innovation has direct impact on employment, policies promoting innovation, such as grants and public-private partnerships, could foster skill development and create a tech-savvy workforce. The government's ongoing efforts in R&D, digitalization, and broadband expansion are steps toward preparing the workforce for evolving industries and promoting innovation.
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