1. Executive Director’s Speaking Notes BRIDGING THE SKILLS GAP BETWEEN EDUCATION, TRAINING AND EMPLOYMENT Jamaica Productivity Awareness Week Opening Ceremony Jamaica Pegasus Hotel Monday, October 7, 2013 1

2. SALUTATION: The Most Honourable Portia Simpson Miller, Prime Minister Hon. Derrick Kellier, Minister of Labour and Social Security Mr James Rawle, Chairman - Jamaica Productivity Centre 2

3. SALUTATION: Dr Charles Douglas, Executive Director, Jamaica Productivity Centre Special Guests Ladies and Gentlemen… 3

4. INTRODUCTION On behalf of the Board and Management of the HEART Trust/National Training Agency, I wish to commend the Jamaica Productivity Centre (JPC) for another successful staging of its annual National Productivity Awareness Week. 4

5. INTRODUCTION I also wish to use this opportunity to commend the JPC for its tremendous work in building partnerships as evidenced by those present today and participants of the Productivity Conference scheduled for October 8 & 9. 5

6. 6 i. Productivity is about the effective and efficient use of all resources. ii. Productivity is the ratio of output to inputs in production; it is a measure of the efficiency of production. Labour productivity = volume measure of output / measure of labour input used CONTEXT - WHAT IS PRODUCTIVITY?

7. CONTEXT - WHAT FACILITATES PRODUCTIVITY? 7 COOPERATION WORKFORCE TRAINING If all these are in place, will this result in productivity? JOINT INTERVENTION PRUDENT USE OF CAPITAL

8. EDUCATION, TRAINING AND EMPLOYMENT = PRODUCTIVITY 8 WORKFORCE TRAINING AND EMPLOYMENT – HEART TRUST/NTA’s CORE BUSINESS

9. 9 Statistical Institute of Jamaica

10. NO TRAINING VS EMPLOYMENT 10 PercentageYEAR 2012 YEAR 2011 YEAR 2010 YEAR 2009 YEAR 2008 YEAR 2007 YEAR 2006 YEAR 2005 YEAR 2004 Total No Training 741 90075 600783 400810 100831400840 500847 175807650801433 Total Employment 1 086 9001 0930001 094 9001,125,5001,164,2081,152,6001,123,6751,085,7501,055,200 Percentage 68%68.9%71.5%72% 72.9%75.4%74.3%76%

11. LABOUR PRODUCTIVITY GROWTH 11 From 2000-2012 labour productivity in Jamaica declined at an average of (- 0.7%) per annum Year Latin AmericaWorld BarbadosJamaicaSt. LuciaTrinidad & Tobago 20000.63-0.710.82-5.893.99 2001-0.71-3.960.62-2.711.94 2002-1.31.72.47-7.266.255.68 2003-0.12.51.260.65-4.2912.51 20041.63.1-0.491.1211.192.54 20051.92.83.01-2.16-43.23 20062.63.44.72-0.578.6512.03 20073.73.50.74-2.09-0.224.34 20081.11.3-0.41-0.612.710.62 2009-2.7-1.2-5.110.1-2.43-4.19 20103.13.6-0.471.28-1.58-1.02 201122.30.23-0.420.16-0.91 20121.21.80.33-0.65-0.291.28 Average 2000-20060.662.500.90-0.971.315.99 2007-20090.701.20-1.59-0.87 0.26 2010-20122.12.570.030.07-0.57-0.22 2000-20121.002.220.12-0.710.583.23

12. 12 During the period 2000-2006 Jamaica recorded an average decline in labour productivity at approximately -1.0% 2000-2006 period recorded the highest percentages of employed individuals having no training Over the period 2010-2012 labour productivity (although inconsequential ) increased at an average of 0.07%, representing a 120% over the period 2007-2009. ANALYSIS In fact, the 2010-2012 period reflected that fewer persons were employed having no training compared to other periods within the ten year span.

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14. 14 Vocational without Certificate 3,6003,3003,8004,5004,4003,9004,4505,2005,0675,133 Vocational with Certificate 30,70028,40024,55024,20021,30018,90017,45017,40016,73313,533 Professional without Degree or Diploma 600800350400500 425750867600 Professional with Degree or Diploma 9,1007,6008,4505,2004,8004,4504,0503,5504,6332,433 Apprenticeshi p 200300100 20075125400300267 On-the-Job Training 4,3004,5003,1005,0003,9003,0003,8504,9505,8006,733 No Training Received 123,000111,900113,550103,900101,50092,20098,025104,250105,300105,567 Training Not Stated 1,3001,5008001,0008009751,0258509001,334 TOTAL UNEMPLOYE D LABOUR FORCE 172,800158,300154,700144,300137,400124,000129,400137,350139,600135,600 Source: Statistical Institute of Jamaica 2,0122,0112,0102,0092,0082,0072,0062,0052,0042,003 Unemployment By Training Received

15. 15 OCCUPATION GROUPJanuary to March 2013April to June 2013 Calendar Year to Date Professionals, Senior Officials and Technicians1,4841,561 3,045 Clerks413564 977 Service Workers, Shop and Market Sales Workers1,4731,224 2,697 Skilled Agricultural and Fishery Workers1119 30 Craft and Related Trades Workers171189 360 Plant and Machine Operators and Assemblers189284 473 Elementary Occupations636673 1,309 TOTAL4,3774,514 8,891 VACANCIES BY OCCUPATIONAL GROUP ( January 1, 2013 – TO DATE)

16. 16 The main reason a work permit is approved is on the premise that local workers in specific occupations are in short supply. Demand for work permits during the April to June 2013 quarter was primarily for persons in the "Professional, Senior Officials and Technicians" category. An examination of approvals granted showed the top ten occupations were: 1. Managers 2. Machine Operators 3. Repairmen/Technicians 4. Mechanics 5. Fishermen 6. Entertainers 7. Directors 8. Supervisors 9. Chefs 10. Engineers Work Permit Approvals

17. HISTORIC DECLINE IN LABOUR PRODUCTIVITY 17 -1972- 2007 Jamaica Labour Productivity has declined 1.3% per year -Between 2002 and 2011 that decrease, increased by 3.2% per year. -While the rest of the region saw productivity increase by over 2% per year

18. The Work Permit figures suggest that there is a Skills deficit or skills mismatch. 18 http://www.televisionjamaica.com/Programmes/PrimeTimeNews.aspx/Videos/18339 DISCUSSION This was supported by statements by the former Director General PIOJ – DR. Gladstone Hutchinson (2012) - High vacancy rates in the presence of large scale unemployment confirm the existence of skills mismatches. Historically there has been a decline in labour productivity. THE DATA SUPPORTS THE PREMISE THAT THERE MAY BE A GAP BETWEEN EDUCATION, TRAINING AND EMPLOYMENT

19. Expansion of TVET institutes 19 HEART Trust/NTA restructuring Labour Market Research - BPO Sector Study, Animation, and Aviation Expansion of Higher level training programmes (Workforce Colleges) PRODUCTIVITY THROUGH TRAINING & EMPLOYMENT

20. of programme offerings to address industry needs Realignment of programme offerings to address industry needs 20 Creation of a flexible and responsive Technical and Vocational Education Training (TVET) System PRODUCTIVITY THROUGH TRAINING & EMPLOYMENT Widening and Deepening Strategic Partnerships

21. 21 STRATEGIC PARTNERSHIPS HEART has been broadening and deepening its partnerships to ensure that our outputs are in alignment with current industry needs. Some strategic partnerships include: - JAMPRO Partnership -Ministry of Education (MOE)- Technical and Vocational Education and Training (TVET) Integration - Jamaica Urban Transit Company (JUTC) Partnership - OECS Partnership - Business Processing Industry of Jamaica collaboration - CANTA Partnership PRODUCTIVITY THROUGH TRAINING & EMPLOYMENT

22. 22 Workforce Colleges Higer Level (4- 5) Training Programmes Internship Programmes Training Base Enterprise TVET Institute Levels 2-4 Training Programmes Support to Schools and Communities Flexible Training Laboratories

23. 23 Under education (Duncan and Hoffman, 1981) - breaks down the education level into three constituent components Required Over education PRODUCTIVITY THROUGH TRAINING & EMPLOYMENT Requires understanding of the kind of education, training and employment needed/on offer

24. 24 “Matching people’s skills to their jobs depends on better understanding the skills they posses and the precise ways in which these can be developed and used via training.” The critical aspect is not the quantity of training (i.e. provision of more courses) but linking training to performance. PRODUCTIVITY THROUGH TRAINING & EMPLOYMENT

25. 25 Consider ‘matching the right firms to the right workers (as well as matching workers to the most appropriate jobs within the firms PRODUCTIVITY THROUGH TRAINING & EMPLOYMENT A Lifelong Learning Culture Training and Skills Development

26. TRUE PRODUCTIVITY Can only be achieved if we train and equip people with the right skills, behaviours and attitudes for the right jobs, at the right place and at the right time. HEART Trust/NTA trains people with more applied skills which have allowed them to better equipped for employment.

27. Importance of National Productivity Growth 27 Productivity isn’t everything, but in the long run it is almost everything. A country’s ability to improve its standard of living overtime depends almost entirely on its ability to raise its output per worker. Paul Krugman, The Age of Diminishing Expectations (1994)

28. 28 HEART Trust/NTA is bridging this skills gap by improving the quality of training, broadening access to higher level programmes for more citizens which will lead to a stronger and a more productive economy. Importance of National Productivity Growth

29. CLOSING: In closing, I wish to thank the Jamaica Productivity Centre for its work in the promotion and facilitation of productivity in Jamaica. The HEART Trust/NTA is committed to supporting these initiatives for the benefit of all Jamaicans. I invite you to visit the HEART Trust/NTA booth for more information on our work in this area. 29

30. THANK YOU!! 30