How schools influence employability and future earnings

The role of educational institutions in shaping employment outcomes and career trajectories has long been a subject of interest in labor economics. Studies have consistently shown that the quality of education, institutional reputation, and access to specialized programs influence employability and future earnings. The recent inclusion of thirty-five Philippine universities in the 2026 QS Asia University Rankings, alongside the findings of the Second Congressional Commission on Education (EDCOM 2), offers a valuable lens through which to explore the relationship between educational institutions and labor market outcomes.

Rankings and Reputation: A Double-Edged Sword

The 2026 QS Asia Rankings highlight the growing global recognition of Philippine universities. While institutions like the University of the Philippines (UP), Ateneo de Manila University, De La Salle University, and the University of Santo Tomas (UST) remain prominent, the inclusion of schools like the Polytechnic University of the Philippines (PUP) and the University of San Carlos reflects shifting employer preferences. Traditionally, graduates from top-ranked universities were favored for their academic rigor, industry connections, and prestige, often securing higher-paying jobs and faster career growth. However, employers are increasingly valuing attributes like work attitude, technical skills, and adaptability.

Despite this shift, the rankings reveal ongoing disparities in access to quality education. Elite universities often charge higher tuition fees, which limits opportunities for low-income students and perpetuates socioeconomic inequality. Consequently, graduates from prestigious schools continue to dominate higher-paying industries, while those from less renowned institutions face greater obstacles in the job market. Addressing these inequalities remains crucial to ensuring a more equitable and inclusive education system that aligns with labor market demands.

The “Diploma Mill” Problem and its Implications

While the QS rankings highlight the achievements of Philippine universities, EDCOM 2 raises urgent concerns about the rise of low-quality graduate programs, especially in teacher education. Policies incentivizing graduate degrees for career advancement, such as DepEd's point-based promotion system, have unintentionally fostered a “diploma-for-promotion” culture, fueling the growth of diploma mills that prioritize quantity over quality.

EDCOM 2’s findings reveal that over half of graduate enrollments are in education programs, yet basic education outcomes remain alarmingly poor, with Philippine students ranking among the lowest globally in TIMSS and PISA assessments. This disconnect shows how poorly regulated programs fail to prepare educators to address systemic challenges in education.

The labor market impact is significant. Employers, particularly in government, often cannot differentiate between degrees from reputable institutions and diploma mills, devaluing advanced degrees and eroding public trust. Additionally, the overemphasis on education degrees has marginalized specialized fields like STEM, worsening skills shortages in critical sectors.

EDCOM 2 highlights the pressing need for systemic reform in higher education governance, advocating for a tiered regulatory approach by CHED to take into account institutional capacity, program quality, and regional contexts. This would help distinguish diploma mills from reputable institutions, ensuring that graduate programs enhance professional development. CHED’s proposed "white list" of quality programs is a promising move toward transparency, guiding students and employers in identifying credible institutions. Additionally, EDCOM 2 urges DepEd to revise promotion policies, prioritizing degree quality over mere completion, shifting incentives from transactional credentials to genuine skill-building aligned with labor market demands.

School-to-Work Interventions and Employability

School-to-work interventions, such as labor market guidance and work-for-pay opportunities, are proven to boost employability and future earnings but remain underutilized in the Philippine education system, particularly in public schools and less prestigious institutions. The QS rankings and EDCOM 2 findings stress the importance of integrating these programs into curricula through stronger industry partnerships, internships, and career counseling. These initiatives would not only enhance graduate employability but also address employer concerns about work readiness.

The 2026 QS Asia Rankings and EDCOM 2’s report highlight both progress and persistent challenges in Philippine higher education. While the growing global recognition of local universities signals improvement, issues such as the proliferation of diploma mills and the neglect of specialized fields remain critical. As employers increasingly value skills, attitude, and work readiness over institutional prestige, policymakers must prioritize quality assurance, expand school-to-work programs, and address structural inequalities in the education system. These reforms are essential for creating a more equitable and effective system that equips graduates for success in a dynamic labor market.