1. INTER-AMERICAN DEVELOPMENT BANK The Bahamas: challenges ahead for skills development, and some elements to move forward Laura Ripani IDB July, 2015 TRANSFORMATION Forum Nassau, The Bahamas

2. Agenda 1. Three key challenges 2. The skills gap 3. Ingredients for an integrated solution

3. 1. Key challenges

4. I.Low productivity Source: Samuel, W (2013) based on World Economic Outlook Productivity Growth in The Caribbean, 2000-2011 (average, percent)

5. II. High Youth Unemployment Source: Labour Force Survey, DOS. Note: 15-24 years old.

6. III. Skills Gap There is a disconnection between Education and Training System and Employers

7. 2. Skills Gap

8. Wages and Productivity Survey (2012) brings new evidence on:

9. Sample All business establishments in New Providence and Grand Bahama with 5 or more employees 722 firms

10. Main findings in four facts

11. Fact 1. Technical, basic and soft skills: most important criteria for hiring, more than formal education Source: 2012 Wage and Productivity Survey

12. Fact 2. Lack of specific skills, lack of experience and soft skills are the top three most cited as the greatest difficulty for hiring Source: 2012 Wage and Productivity Survey

13. Fact 3. Skills gaps are also perceived as one of the main barriers to productivity Source: 2012 Wage and Productivity Survey

14. Fact 4. Main reason for dismissal of staff: problems with behaviour, pointing to the lack of soft skills

15. Training in firms: how firms are investing in skills

16. 50% of employers invested in training in the past 2 years, but not to the level they think is needed

17. Employers: need training for employees mainly to improve production

18. Employers: validated results on skills + highlighted need of more public-private integration

19. Next steps

20. National Development Plan Vision 2040: skills at the center of the construction of the country’s future

21. We need to unlock the country’s talent…

22. …meeting the employers’ needs

23. Collective efforts are needed to prevent a skills trap for youth - 23 - Lack of attitude and skills for first job Fewer job opportunities Less on- the-job experience

24. 3. Some ingredients

25. Skills demand identification Identify and systematically review private sector needs in terms of skill – Examples: sector skills councils, information systems.

26. Information to job seekers about what skills the labour market demands

27. On-the-job training strategies to align workers’ skills with specific skills demands

28. Soft skills training to improve attitudes and behaviour in the workplace

29. Integration of actors into a skills system to improve productivity Government Education & Training YouthWorkersPrivate Sector

30. Performance Management Results and impacts: learning and re-designing as needed

31. We should act now and together

32. Some questions for the debate today 1.What do you think are the main reasons why there is a skills shortage in The Bahamas? 2.What are the bottlenecks to developing these skills for specific sectors? 3.How can we improve the skills orientation to private sector needs? 4.Is more public-private integration feasible?

33. THANK YOU! Contact: Laura Ripani: laurari@iadb.org Maria Victoria Fazio: mfazio@iadb.org