This study examines six factors in the relation between the objectives of Philippine higher education and those of the country's economic planning, and then derives implications for future development of higher education in the Philippines. An analysis of the Philippine socioeconomic framework as a whole draws a profile of the country's economic history, demographic characteristics, and current development strategy. Factors affecting the development of the whole educational system, including enrollment trends and administrative policy, are then identified, and the consequences of the expanding educational system on the absorptive capacity of the labor market are noted. Citing the characteristics of the present labor force, the authors estimate the demand for and supply of highly qualified labor, and make suggestions for improving educational planning for employment purposes. The qualitative factors of student aspirations and expectations are also examined through a survey of the university admission requirements, student backgrounds, chosen specializations, sources of funding, career objectives, and reasons for abandoning career objectives. Studies of two further influences in the employment process--employees' perceptions of the employment situation (its relation to training, for example, and the degree of job mobility) and employers' views of the labor pool (including recruitment problems and hiring criteria)--draw out the relationships between types and levels of education and job market offerings. Finally, implications are noted for the reform of educational planning in order to improve the employment outlook for university graduates. (JW)