Matching VET in Georgia with Labour Market Needs

1. 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)

2. GTZ in Georgia • since 1992 • Team: 78 • 8 programmes / 17 Mil. € (2010) • 3 topics Governance/Legal Reforms; Biodiversity; Private Sector Development (with VET) Presentation "Mismatch-Study"

3. Private Sector Development Georgia Private Sector Development South Caucasus C 1 C2 C 3 Regional Armenia Azer-baijan Georgia a b c d a b c d • Economic & Financial Policies • Export Promotion • Food Safety • Competition Policy C1: Economic Policy C2: Labour-Market orientated VET-Policy C3: LRED

4. C2: Labour marketorientated VET-Policy Matching Financing Socialdialogue • Policy-Study • Costing-Study • (Budgeting) • Country-Analysis • Roundtables „VET-FinancingDialogue“ • Mismatch-Study • „SectorDialogue“ Meetings • IDP-training on thejobGori • Tourismus-Training Zugdidi • (Dialogue-Study) • Flanking VET-Strategy (SectorComittees) • Roundtables „VET-PolicyDialogue“ • VET-competition „skills@work“ • PPP „construction“ Makro Meso Mikro Presentation "Mismatch-Study"

5. Objectives • Identify mismatch between labour demand and VET sector provision • Look at the labour matching process • Recommend ways to improve the process Presentation "Mismatch-Study"

6. 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 Presentation "Mismatch-Study"

7. 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"

8. Existing Courses 2009/2010 Presentation "Mismatch-Study"

9. A few are very good... Presentation "Mismatch-Study"

10. A few are less good... Presentation "Mismatch-Study"

11. Labour Market Needs: Standard Statistics Integrated Household Survey Business Survey Presentation "Mismatch-Study"

12. The Mismatch Presentation "Mismatch-Study"

13. Examination of the Matching Process • Government policy • Sector Committees • VET Centres Presentation "Mismatch-Study"

14. 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"

15. Sector Committees Presentation "Mismatch-Study"

16. 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"

17. 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"

18. 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"

19. 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"

20. 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"

21. 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"

22. 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"

23. 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"

24. 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"

25. Let´s face the challengeDidi Madloba Presentation "Mismatch-Study"