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Making Skills Programs Work
Future Skills International Forum, Kazan
May 2015
Outline
I. Skills in the Global Context II. Key Features of ECA III. Skills Development as a Life-‐long Process IV. Lessons of Experience for Job-‐Specific Skills Development V. Moving Forward
2
I. Skills in the Global Context
3
Skills are a constraint around the world
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
World Sub-‐Saharan Africa
South Asia Eastern Europe & Central Asia
East Asia & Pacific
Middle East & North Africa
LaGn America & Caribbean
High-‐income OECD
% unskilled workers, out of all producGon workers
% firms idenGfying labor regulaGons as a major constraint
% firms idenGfying an inadequately educated workforce as a major constraint
Source: Enterprise Surveys 2010 4
Global Trends Related to Skills
• Wage differenGals are rising between skilled and unskilled workers in many regions
• Skilled jobs are growing faster than unskilled employment
• Knowledge-‐based industries are expanding rapidly and with them the demand for ‘new skills’
• Unskilled workers are increasingly more vulnerable to job loss, extended unemployment, and declining real wages
5
II. Key Features of ECA
6
The ECA region sLll faces specific challenges that impede progress toward reducing poverty and sharing prosperity
7
Poverty remains an issue
• Poverty remains high in some countries (e.g., Armenia, Georgia, Kosovo, Kyrgyz Republic, Tajikistan)
• Pockets of poverty remain in many countries/communiGes (e.g., Roma)
Risk of reversal in shared prosperity
• Ageing • Long term unemployment • Long term erosion of producGvity and
compeGGveness; lack of jobs
Specific challenges In EducaLon
• Increasing access /Inclusion (Pre-‐school and terGary) • Improving quality and relevance • Skills not just diplomas • EducaGon Finance Reform
Uneven access to early childhood educaLon and quality basic educaLon threatens progress
toward reducing poverty and sharing prosperity in ECA
8
61
57
45 44
42 41 39
30 28 27
26 24 23
21 20 20
14
11
0
20
40
60
Albania
Mon
tene
gro
Kazakhstan
Bulgaria
Turkey
Romania
Serbia
CroaGa
Hungary
Slovak Rep
ublic
Lithuania
Russian Fede
raGo
n
OEC
D mem
bers
Czech Re
public
Sloven
ia
Latvia
Poland
Estonia
% of 1
5 year olds s
corin
g at level 1 or b
elow
on
PISA 2012 M
athe
maL
cs assessm
ent
In some countries, half of students compleLng basic educaLon are funcLonally innumerate
103 103 101
94 91 90 90 90
87 85 83 80 78 78 77
69 64
61 58
56 54
51
29 26 25 25 25
16
9
0
25
50
75
100
Czech Re
public
Belarus
Ukraine
Sloven
ia
Slovak Rep
ublic
Russian Fede
raGo
n Latvia
Estonia
Hungary
Bulgaria
OEC
D mem
bers
Moldo
va
Poland
Ro
mania
Lithuania
Albania
CroaGa
Mon
tene
gro
Georgia
Serbia
Kazakhstan
Armen
ia
Turkey
Maced
onia, FYR
Azerbaijan
Uzbekistan
Kyrgyz Rep
ublic
Bosnia and
Herzegovina
Tajikistan
Pre-‐prim
ary gross e
nrollm
ent rate
(2012 or latest available year)
In some countries, 3 out of every 4 children are not enrolled in preschool
Source: EdStats.
9
0
1
2
3
4
5
6
7
8
9
Num
ber o
f Cou
ntrie
s EU10+1 and Turkey Western Balkans LI CIS MI CIS
AZE BIH KOS MKD SRB SVN
ARM GEO KGZ ALB BGR TUR
Mean = 30.2 TJK UZB CZE EST HRV LVA POL SVK
UKR MDA LTU ROM
MNE HUN
KAZ RUS
BLR
Countries where more than 40% of firms report “skills” as a severe constraint to
growth
ECA faces Supply Side LimitaLons
Ø Workers' skills had become a constraint on firm expansion by 2008 (percent of firms considering factor a 'major' or 'very severe' constraint).
Ø Available data mostly focuses on educaLon aeained, not the skills acquired.
III. Skills Development as a Life-‐long Process
Different Sorts of Skills
Many skills, diverse gaps • Different types of skills that maeer for employment and
producLvity: – Problem-‐solving skills – Learning (foundaGonal) skills: ability to acquire new knowledge – CommunicaGon skills – Personal skills: self management, sound judgment, managing risk – Social skills: team, manage client relaGons, leadership, resolve conflict,
etc. – Technical skills: job/producGon specific
• Skills are acquired at different stages in the lifecycle: across sectors and across generaLons.
11
Source: World Bank 2010.
AnalyGcal Framework: Stepping Up Skills for Employment and ProducGvity (STEP)
12
Source: World Bank 2010.
…where skills development is a cumulaGve life-‐cycle process
13
IV. Evidence of Lessons for Job-‐Specific Skills Development – Investment in Early IntervenGons and FoundaGonal Skills – Basic Skills – Role of Government – Role of Employers – Financing – Private Providers – Monitoring and EvaluaGon
14
A. Investment in Early IntervenGons and FoundaGonal Skills
– Invest in early intervenGons (e.g. nutriGon, health inputs, preschool educaGonal inputs), which is essenGal for school readiness
– Improving student learning for all through investment in access to quality primary educaGon for all
B. Basic Skills
• Introduce literacy and so0 skill development modules as part of programs… – In most countries, large numbers of school goers drop out early; and large parts of the workforce have liple knowledge and few skills that would make them more employable.
– Introducing modules focused on literacy and soq skills as part of basic and secondary educaGon and training programs can help break the vicious circle of the unskilled being trapped in jobs that require liple skills, establish accessible pathways for acquiring skills (e.g. Vietnam, Russia).
C. Role of Government
• Government has a cri:cal role to play… – mainly in regulaGon, standard serng , M+E, and selecGve financing (e.g. Australia, ArgenGna)
– Exploring innovaGve public-‐private partnerships to enhance provision of market relevant skills (e.g. Korea, Malaysia)
Role of Government
ArgenGna – Quality Assurance Systems
ArgenGna is developing the workforce skills of disadvantaged workers through: • Diversifying Pathways for Skills AcquisiLon for disadvantages workers-‐ Making qualificaGons
more transparent and portable through the Government face-‐liqing at the processes of serng standards by employers and workers,
– Providing credibility for skills tesLng and cerLficaLon -‐ Ensuring the funcGoning of qualified third-‐party assessment centers and cerGficaGon organizaGons • ExponenGal growth in non-‐state providers is a posiGve development but underscore the
importance for the development of clear standards to ensure quality training programs • Making qualificaLons more transparent and portable -‐ Developing a framework for
competency-‐based training and cerGficaGon
D. Role of Employers
• Ensure employers play a cri:cal role in system…. – Employers need to have an important voice at the table at the policy level
– At the insGtuGon level – employers need to be involved in management of insGtuGons and decide on how resources are spent and what type of investments to make
– Relatedly – this can only work if insGtuGons have the academic and financial autonomy to make decisions and are held accountable for them (e.g. Chile)
Delivery of subsidized training and technical assistance for Small Enterprises
– Promoters provide iniGal diagnosGc – Training on a cost-‐sharing and sliding basis: CIMO 70%, Firm 30%, declining
to 50-‐50 cost-‐sharing – Different modaliGes -‐-‐ (1) integrated training, (2) training plus
individualized consulGng services – Group training delivered by local training providers, as well as cluster-‐
based training
Compared to a control group, CIMO firms: – Increased investments in worker training, – Had higher rates of capacity uGlizaGon, – More likely to adopt quality control pracGces. – Increased wage and employment growth, and – Reduced labor turnover, absenteeism, and rejecGon rates for products.
** The most drama=c impacts were among micro and small firms.
Employers Mexico’s Comprehensive Quality and ModernizaGon
Program (CIMO)
E. Financing
• Introduce performance financing of programs … – Currently, nearly all public funding is input based. – A shiq in this relaGonship towards financing linked to outputs/outcomes will be criGcal to make training more relevant for labor market needs. (e.g., Brazil)
F. Private Providers
• Clear and lenient laws result in a vigorous response from private providers.
• Public funding can encourage private provision of programs – through leveling the playing field between public and private sector (e.g. Czech Republic).
• Business oriented skills are the first to proliferate the private market, but rapid industrial growth can lead to strong private supply of technical skills (e.g. Indonesia).
GOVERNMENT RECOGNITION § Approval § Licence INCENTIVES § Training Support (HRDF) § Double deducGon IncenGve § Tax ExempGon
INFRASTRUCTURE § FaciliGes § Building CAPITAL GRANT § Set Up Grant § Equipment Grant § Building Grant
INDUSTRY LEADERSHIP § New Concepts/Ideas § Processes & Systems SHARING § Resources/ExperGse § Technology § Trainers ACADEMIA TRAINING RESOURCE § Lecturers § Content Experts PROGRAM DEVELOPMENT § Training Materials
Private Providers
Malaysia -‐ The Penang Skills Development Centre (PSDC)
Roles of the Various Stakeholders
G. M+E
• Par:cipate in the interna:onal or develop a na:onal systems of tes:ng for competencies/skills: – Countries can make a start by considering parGcipaGng in a few systems that are present – for example, SABER and STEP (World Bank) and PIAAC (OECD) which will allow them to get valuable experience at relaGvely low cost.
– Always…evaluate programs -‐ feed lessons into improving design (e.g. India study)
Lessons of Experience: M+E India: Value of Measuring Performance of System • EvaluaGon of five flagship GoI Skill Development Programs (SDPs) in five States
• Although sGll fairly recent, these programs are not pilots, already more than five million people trained since 2011
• Push for expansion: Of the overall GoI target of skilling 500 million by 2022, the five SDPs
have a combined target of 285 million • Findings:
– Only 25-‐30% of trainees are placed with support from their TPs. About 2 years aqer training, the % of trainees with jobs remains roughly the same.
– SD programs give a posiGve earnings premium: trainees who have got a job earn on average about 21% more than non-‐trainees ( with same age, educaGon, marital status, state of residence)
– Work experience before training period (strong effect), knowledge of English, and
programs combining classroom training with pracGcal training in industry increase probability of employment aqer training.
• Findings of the Study have been presented to the PM’s office and our now a part of the naLonal dialogue on how to improve the skills development system.
V. Moving Forward
26
Moving Forward: Progress in Our Skills Development Work
• Strong demand for our skills development work across the
region as countries are apempGng to improve labor producGvity and employment
• Building evidence base on what works and incorporaGng into program design
• PiloGng skills development programs for increased producGvity of entrepreneurship and self employment in informal serngs
• SupporGng governance reforms of skills systems • SupporGng skills for innovaGons in more formal serngs • Leveraging work done with other GPs and DPs