Matching VET in Georgia with Labour Market Needs “The Mismatch-Study” German House Tbilisi, 08. July 2010 George Welton (GeoWel Research) & Peter Wunsch (Private Sector Development Program Georgia)

GTZ in Georgia since 1992 Team: 78 8 programmes / 17 Mil. € (2010) 3 topics Governance/Legal Reforms; Biodiversity; Private Sector Development (with VET) team: 52 NP, 18 AMA, 8 CIM Region = Georgien, Armenien, Aserbaidschan Geringe Ownership für regionale Integration im SK → keine Regionalorganisation; Deshalb: Regional im SK = Mehrländeransatz mit regionalem Dach und nationalen Pfeilern Regional: -Rechts- und Justizreformberatung; - Kommunalentwicklung; - Wirtschaftsförderung, - Biodiversität; - Agrarausbildung  Bilateral: Kontrollkammer; Privatwirtschaftsförderung, Degradierte Landschaften (BMU) Presentation "Mismatch-Study" 08. July 2010

Private Sector Development Georgia Private Sector Development South Caucasus C 1 C 2 C 3 Regional Armenia Azer-baijan Georgia a b c d a b c d - Bilaterales (Neu-)Vorhaben – verbesserte Rahmenbedingungen für Privatinvestitionen - K1 „on demand“: flexibel (ENP-ausgerichtet), u.a. Wettbewerb, Förderpolitik, Wirtschaftsrecht, verbesserte wi´polit. Steuerungsfähigkeit - Regionalvorhaben – verbesserte Rahmenbedingungen für Handel innerhalb des SK + mit der EU - Inhaltliche Komplementarität zum TZ-Vorhaben „Wirtschaftsförderung Südkaukasus“ - Arbeitsteilige Grundausrichtung: reg. / Geo: Exportförderung (u.a. Handelshemmnisse, Lebensmittelsicherheit, Sektor- / Messeförderung) bil.: kmU-Investitionsförderung (s.o.) → Handel + „Tiefenintegration“ - Synergien etwa in den Bereichen Wettbewerbspolitik, Stärkung des MoED zur Export- und Investitionsförderung, Stärkung Analysekapazitäten, Nationale Wirtschaftsstrategie, Cap. Dev. Lawi-min., Einbindung von Verbänden Economic & Financial Policies Export Promotion Food Safety Competition Policy C1: Economic Policy C2: Labour-Market orientated VET-Policy C3: LRED

C2: Labour market orientated VET-Policy Matching Financing Social dialogue Policy-Study Costing-Study (Budgeting) Country-Analysis Round tables „VET-Financing Dialogue“ Mismatch-Study „Sector Dialogue“ Meetings IDP-training on the job Gori Tourismus-Training Zugdidi (Dialogue-Study) Flanking VET-Strategy (Sector Comittees) Round tables „VET-Policy Dialogue“ VET-competition „skills@work“ PPP „construction“ Makro Meso - Schwache – starke Unterlegung = Intensität bei Kooperation mit Privatwirtschaft (…) = künftig, aber noch nicht begonnen COSTING Uneinheitliche / nicht existente Berufsstandards erschweren Vergleichbarkeit  Unterschiedliche Kostenstruktur rehabilitierter / nicht rehabilitierter VET-Center  Vernachlässigung von Instandhaltungskosten  Kaum strategische Finanzplanung  → Kostenstruktur noch zu uneinheitlich/ungenau als Grundlage für financing policy-Entscheidungen  Gutes Zahlenmaterial  Große Offenheit  ANALYSE Kostenerhebung (aus Unternehmenssicht) & Kosten-/Nutzenanalyse Beruflicher Bildung Mikro Presentation "Mismatch-Study" 08. July 2010

Objectives Identify mismatch between labour demand and VET sector provision Look at the labour matching process Recommend ways to improve the process Two main parts of the research. The first looked at the existing mismatch. The second looked at existing processes for developing the match. Both were aimed at providing recommendations to improve the situation. In the process we odenti Presentation "Mismatch-Study" 08. July 2010

Methodology – Labour Mismatch VET Centre Provision Quantitative analysis of national VET training provision Interviews with VET Directors in Tbilisi, Shida Kartli, Batumi, and Poti Labour Market Needs Analysis of Primary Geostat data Detailed review of existing skill needs analysis Interviews with 96 businesses, 9 business associations, 6 trade unions in key sectors Review of recent survey by IOM in Shida Kartli I would not want to put 6+7 together as this makes the second part of the research appear incidental whereas it was actually our priority. Presentation "Mismatch-Study" 08. July 2010

Methodology - Matching Strategy Examined law and government policy Interviewed Government Existing social partners Member of sector Committees VET Centers Possible social partners Reviewed UK and Estonian VET systems for comparison Presentation "Mismatch-Study" 08. July 2010

Existing Courses 2009/2010 Processed the information provided by MoAg. They have great information but the information is hard to process for a range of practical reasons. Presentation "Mismatch-Study" 08. July 2010

A few are very good... Processed the information provided by MoAg. They have great information but the information is hard to process for a range of practical reasons. Presentation "Mismatch-Study" 08. July 2010

A few are less good... Processed the information provided by MoAg. They have great information but the information is hard to process for a range of practical reasons. Presentation "Mismatch-Study" 08. July 2010

Labour Market Needs: Standard Statistics Integrated Household Survey Business Survey Clearly any labour market matching would ideally go through government surveys since they are done regularly and they are identical. So, we looked in detail at the two main surveys that GeoStat conducts. The IHS is based on a nationally representative household survey, the BS is a survey that only approaches formally registered people and companies. We focused on the business survey because even though it only covers 22% of those considered employed it does represent formal employment which most people seem to want. We got vastly more detail on this breakdown of employment. Presentation "Mismatch-Study" 08. July 2010

The Mismatch Our analysis identified the following sectors as priorities for employment in areas where VET might provide. We don’t consider education, medicine or government since these are big employers that are not generally provided by the VET system. Agriculture and tourism are considered here because while they are not considered large informal sectors they are big enough informal sectors that we felt they should be included. Presentation "Mismatch-Study" 08. July 2010

Examination of the Matching Process Government policy Sector Committees VET Centres Presentation "Mismatch-Study" 08. July 2010

Government understands the problem Policy already highlights key weaknesses: Provides no training opportunities for a number of professions Lacks a system for studying the labour market on a regular basis Has weak (or no) link between educational programmes of VET schools and regional demand Has weak social partnership generally Presentation "Mismatch-Study" 08. July 2010

Sector Committees Presentation "Mismatch-Study" 08. July 2010

At the VET Level lots going on: Praktikums Business Advisory Boards Employment Centers Website Advertising and outreach to schools But it is sporadic.... Presentation "Mismatch-Study" 08. July 2010

6 Areas for Improvement Use of data for identifying on-going mismatch Improvements in Sector Committees Assistance to VET Centres Incentives for business involvement Better coordination with international organisations and donors Strengthened linkages between government and intermediary social partners Presentation "Mismatch-Study" 08. July 2010

Area 1: Use of Data Simplify and standardise collection of information from VET Centres Re-organise information to offer clearer macro insights Identify sub-sectors of interest to VET Get data on changing employment patterns List companies by region that relate to each sector/region Conduct a small skills needs assessment jointly with Geostat’s annual business survey Presentation "Mismatch-Study" 08. July 2010

Area 2: Sector Committees Re-organise Sector Committees to reflect categories of skill needs Use list of active businesses to identify likely members Deepen engagement of intermediary social partners Ensure minimal administrative and time requirements on businesses Allocate funds to facilitate broadening of sector committee responsibilities Presentation "Mismatch-Study" 08. July 2010

Area 3: VET Centres Help VET Centres identify businesses for praktikum with a central list sorted and disseminated by region and skill Provide standardised and simplified procedure for engagement Act as a conduit for collaboration with large firms Consider developing pilot for apprenticeships to further involve businesses Presentation "Mismatch-Study" 08. July 2010

Area 4: Incentives for Involvement Engaging businesses is hard, but could become easier by: Offering income-tax breaks Ensuring minimal demands on time and paperwork Distinguishing levels of engagement and understanding who is likely to engage at what level Demonstrating with finances and government involvement that VET is a priority Imparting skills to VET trainees that are in demand by business Presentation "Mismatch-Study" 08. July 2010

Area 5: International involvement Huge amounts of time and money providing training to support development projects – particularly in agriculture Sustainability is a problem But… VET centers can offer institutional framework and sustainability Presentation "Mismatch-Study" 08. July 2010

Area 6: Use of intermediaries Strengthen connection of government and intermediaries Business associations Employers associations Trade unions Professional associations This is difficult everywhere but UK case suggests… Needs to be sectoral Needs clear pay-off Needs to be realistic in the goals Presentation "Mismatch-Study" 08. July 2010

3 immediate suggestions List specific sub-sector information from GeoStat and talk to them about additions to the annual household survey. Make new sector committees match skill categories. Use same skill categories for collecting information. One extra member of the VET MoES team should be Manager of Business Relations. Presentation "Mismatch-Study" 08. July 2010

Let´s face the challenge Didi Madloba Presentation "Mismatch-Study" 08. July 2010