‘Window for demographic dividend gain narrowing’

The Philippines' demographic advantage is not guaranteed. Metrobank states that a large workforce only becomes an economic asset with skilled, productive workers. Without sufficient productive jobs, the young population risks underutilization, undermining potential economic gains from consumption. The country's total fertility rate of 1.7 children per woman, down from 4.1 in 1993, shows the urgency. This is a challenge across Southeast Asia, not just in Manila. Other nations like Vietnam and Thailand also face aging populations and declining birth rates. They too must improve workforce productivity to sustain growth.

The real test for the Philippines is whether it can match its growing labor pool with high-value employment. This means prioritizing education and skills development that align with a digital economy. Investment in infrastructure and technology adoption is critical for businesses to create these productive roles. Otherwise, the demographic dividend will only manifest as increased consumption, not sustained economic progress.

The thing to watch is the government's 2025 National Demographic and Health Survey. Its findings will show if current policy efforts are effectively addressing the skills gap. A failure to show progress will mean a lost opportunity for the Philippines to fully leverage its young population.