While most of us were being entertained by the national flood control circus, another bombshell suddenly dropped within our midst. The Philippines is now near the bottom of the 2025 IMB World Talent Ranking, being ranked 64th out of 69 economies covered in the report.

When we do investment roadshows abroad, we always showcase the Filipino talent. But what is actually being featured is the number of college graduates that we produce every year. It appears that we will need to revise our pitch decks to focus on what truly matters to investors and our nation’s economic progress now.

Finding ourselves in the current talent ranking, which is also reflected in the World Competitiveness Ranking, is an uncomfortable position that highlights deep structural challenges in how we develop, attract, and retain skilled individuals. This ranking is more than just a number; it is a mirror showing the state of our talent ecosystem and a warning about our future competitiveness and long-term economic health.

In the fierce global economy, the most valuable currency is not capital or technology—it is talent. Companies seek locations with a readily available pool of qualified workers. Nations that successfully cultivate, attract, and retain skilled individuals are the ones that innovate, grow, and lead. This is the stark reality presented by the IMD World Talent Ranking 2025, and for the Philippines, it is another critical wake-up call.

The annual talent report evaluates countries across three pillars: investment and development, appeal, and readiness.

The Philippines ranks 66th in the investment and development category, indicating a critical lack of public investment in education. And most of us are aware of why this is so. I do not need to say more, lest we delve into the current controversy surrounding the diversion of the education budget. The total public expenditure on education is low, and the pupil-teacher ratios in both primary and secondary education are high.

Furthermore, internship programs are not sufficiently implemented, and employee training is not a high priority for companies. The passage of the new Enterprise-Based Education and Training (EBET) law, along with its accompanying fiscal incentives, would likely entice more employers to implement skilling programs for their own employees.

Ranking 56th in appeal, the Philippines struggles to retain local talent and attract foreign professionals. While the cost of living is relatively low, this is offset by concerns about the inadequate transportation infrastructure and a high rate of brain drain.

The country stands at 58th in readiness, highlighting a mismatch between the available skills in the labor force and the demands of a competitive economy. However, we are beginning to see some initiatives, mostly from industry sectors, that aim to address the situation. For example, sectors such as supply chain and logistics, as well as technology, have developed their own skills frameworks, which are now being utilized by CHED, TESDA, and higher education institutions in designing their programs.

To improve its talent competitiveness, the Philippines can draw valuable lessons from the successes of neighboring economies that have consistently risen in ranking for years.

Most of them have been producing a high percentage of graduates in the sciences, management, and engineering, which are highly sought in this digital age. Some have benefited from policies that encourage foreign student enrollment and foster a more dynamic labor market. It has become evident that aggressive and well-funded national upskilling initiatives have significantly improved their talent pool.

Enhancing our talent ranking requires a comprehensive national approach that tackles both immediate skills gaps and long-term reforms. With government support, we should encourage all sectors to develop their own skills frameworks, following the example of Singapore. When their skills requirements are clearly defined, schools won’t have to second-guess which competencies to focus on.

Again, there should be a greater focus on STEM, engineering, AI, and digital skills by offering incoming students more incentives to pursue them. Most employers today prefer to see 21st-century skills over diplomas.

We should stop the current mentality of providing our labor force with training to get them to work abroad. We must focus on filling the thousands of jobs that our local industries need. We need to expand vocational and technical training to bridge the skills gap in manufacturing, logistics, and emerging tech sectors.

Finally, everything starts with basic education. An increase in our national budget for education is critical. More classrooms, better digital connectivity, and more teachers who are adequately trained on the use of digital technology for teaching. It is not just about a bigger budget but also about targeted spending to reduce class sizes and modernize curricula with a focus on STEM.

The Philippines’ greatest asset has always been its people. However, potential alone is not enough. The race for talent is global, and it’s accelerating. The question is whether the Philippines will be a spectator or a serious contender.