A perspective from the Asia Pacific Region ILO Jobs & Skills - - PowerPoint PPT Presentation

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Assessing Skills Mismatches A perspective from the Asia – Pacific Region

ILO Jobs & Skills Mismatches Conference 11-12 May, 2017 Tania Rajadel

SLIDE 2

Outline

 A quick overview  Some evidence of skills mismatches in developing Asia and Pacific  Highlights from skills demand analyses in ADB education operations  Looking ahead

SLIDE 3

Overview

SLIDE 4

Developing Asia-Pacific: a middle- income region

Population living in low, middle, and high income economies

• Most of the developing Asia and

Pacific region has reached middle- income status

Developing Asia economies

• More than 95% of developing

Asia's population lives in middle-income economies

SLIDE 5

Improved access to education, but quality remains an issue

• Educational attainments have improved steadily
• Gross enrollments in secondary and tertiary

education are increasing

• Average years of schooling has doubled

from 4 in 1970 to 8 in recent years

• But
• Disparities remain, both between and within

countries

• Quality and relevance are a major concern

— —

PRC = People’s Republic of China. Source: ADB estimates using data from labor force surveys.

–

0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00 Share 2003 2012 2002 2011 2005 2011 2000 2012 2003 2013 2003 2013 2002 2013 2004 2013 2000 2010 2007 2013 Cambodia PRC Fiji India Indonesia Kazakhstan Pakistan Philippines Thailand Viet Nam S econdary Vocational S econdary General Tertiary Vocational Tertiary General

u n d e r q u a l i f i c a t i

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mi sma t c h

Youth with secondary education and above (age 15-29) — ’ —

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e e Da t a se t ( 1 9 7 – 20 1 ) u si n g a p p r

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c h b y H a n u sh e k a n d W o e ssma n n ( 20 8 ) .

–

฀4 ฀2 2 4 ฀4 ฀2 2 4 6 600+ 400+

Test scores across Asian and OECD economies

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Megatrends & challenges faced by developing Asia and Pacific

• Developing Asian and Pacific economies face specific challenges

linked to their recent transition to middle-income status…

• Drivers of growth and employment need to evolve, to focus more
• n improving productivity and promoting innovation
• … and must deal with global megatrends affecting all regions
• Fast-evolving technologies
• Globalization and shifting trade patterns, including global value

chains

• Demographic trends – urbanization, aging
• Climate change and exposure to disasters

SLIDE 7

Skills mismatches in developing Asia-Pacific economies

SLIDE 8

Routine and low-skilled occupations still predominate

K e y I n d i c a t

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s f

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Asi a a n d t h e P a c i f i c 20 1 5

’ – – – – – – ’ 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0 Viet Nam Thailand Philippines Pakistan Kazakhstan Indonesia India Fiji PRC Cambodia Share Agriculture Manufacturing Other Industry Services (Low-Skilled) Services (High-Skilled) ’ ’

Remains Predominantly Low-Skilled

0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0

Viet Na m Tha ila nd P hilippines P a kistan Ka zakhstan Indonesia India F iji P R C Ca mbodia Share Low-Skilled Mid-Skilled (Nonroutine) Mid-Skilled (Routine) Professional/ Technical Managerial ’

— ’ —

K e y I n d i c a t

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s f

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Asi a a n d t h e P a c i f i c 20 1 5

’ – – – – – – ’ ’ ’ 0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 Agriculture Manufacturing Other Industry Services (Low-Skilled) Services (High-Skilled) Share Cambodia (2012) People’s Republic of China (2007) Fiji (2011) India (2012) Indonesia (2013) Kazakhstan (2013) Pakistan (2013) Philippines (2013) Thailand (2010) Viet Nam (2013)

— ’ — Employment by sector Employment & skills content Share of employed workforce with secondary or tertiary education, by sector

PRC = People’s Republic of China. Notes: Only latest survey year available for each country is used. ISIC Rev. 4 industry groups. Agriculture = 1–3; Manufacturing = 10–33; Other Industry = 41–43; Services (Low-Skilled) = 49–56, 94–98; Services (High- Skilled) = 58–93, 99. Only latest survey year available for each country is used. ISIC Rev. 4 industry groups. Agriculture = 1–3; Manufacturing = 10–33; Other Industry = 41–43; Services (Low-Skilled) = 49–56, 94–98; Services (High-Skilled) = 58–93, 99. Source: ADB estimates using labor force surveys. Data for the PRC is based on published survey results from the Tabulation on the 2010 Population Census of the People’s Republic of China.

Mid-Skilled (Routine) Mid-Skilled (Nonroutine)

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Employers in Asia and the Pacific report difficulties in filling vacancies

Difficulty filling vacancies in Asia and the Pacific (in %)

PRC = People’s Republic of China. Note: Only latest survey year available for each country is used. Source: ADB estimates using data from labor force surveys.

F i g u r e 2. 6: Qu a l i f i c a t i

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M i sma t c h e s

0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0 Share M a t c h Ov e r q u a l i f i c a t i

• n

Un d e r q u a l i f i c a t i

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Vi e t Na m T h a i l a n d P h i l i p p i n e s P a k i st a n K a z a k h st a n I n d

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e si a I n d i a F i j i P R C Ca mb

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’ ’

F i g u r e 2. 6: Qu a l i f i c a t i

• n

M i sma t c h e s

M a t c h Ov e r q u a l i f i c a t i

• n

Un d e r q u a l i f i c a t i

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Vi e t Na m T h a i l a n d P h i l i p p i n e s P a k i st a n K a z a k h st a n I n d

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4 Si mu l t a n e

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PRC = People’s Republic of China Source: ADB estimates using data from labor force surveys. 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0 Share Primary Secondary Tertiary Viet Nam Thailand Philippines Pakistan Kazakhstan Indonesia India Fiji PRC Cambodia

Qualification mismatches Educational attainments in high-skilled occupations

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Assessing skills mismatches

SLIDE 11

Data collection across selected countries

K e y I n d i c a t

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s f

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Asi a a n d t h e P a c i f i c 20 1 5

Labor force data Enterprise data Collection ratea Occupational code detailb Industrial code detailc Field/ Education major informationd Collection ratea Vacancy informatione Occupational code detailb Occupation groupsf Industrial code detailc United States Republic of Korea Armenia Cambodia China, People’s Rep. of India Indonesia Pakistan Philippines Thailand Viet Nam

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SLIDE 12

Highlights from ADB’s project preparatory documents

Research Tools Employed Level of Analysis Employer Survey, in selected provinces

• 1. Priority sectors (construction, services,

manufacturing) in 9 industrial hubs

• 2. Focus on occupations in high demand
• a. Construction, e.g. overseers, special

construction machine operators, masons

• b. Services, e.g. housekeepers, marketing and

sales employees, IT support staff, chefs, waiters

• c. Manufacturing, e.g. steel industry
• ccupations, garment workers, wood workers
• 3. Questions on technical and general skills needed

Nepal – Skills development project

The survey included questions on employers’ future

• ccupations needs,

specific skills needed in main occupations, assessment of the quality and relevance of current education and training programs, migrant workers, etc Sample size: 306 employers Geographical coverage: 9 industrial hubs Sectoral coverage: 3 sectors – construction, services, manufacturing

SLIDE 13

Highlights from ADB’s project preparatory documents

Nepal – Skills development project

• The employer survey confirmed low educational

attainments and little technical training, particularly in the construction sector

Education and training in the construction, services and manufacturing sectors

SLIDE 14

Highlights from ADB’s project preparatory documents

Nepal – Skills development project

• Survey results highlighted missing skills in selected
• ccupations,
• But sample size was small, making it difficult to generalize

2 4 6 8 10 12 14 More general technical knowledge* More prac cal skills More theore cal knowledge Be er communica on skills (reading) Be er communica on skills (wri ng) Be er communica on skills (speaking) Be er mathema cal skills Computer skillsBe er and more energe c a tude to work Overseeing Dumper and special construc on machine Masonry and concre ng

Skills missing in selected construction sector occupations, as reported by employers

* such as codes and regulations to suit the enterprise

SLIDE 15

Highlights from ADB’s project preparatory documents

Nepal – Skills development project

20 13 29 32 35 34 10 20 30 40

Nepali workers are not skilled enough Imported workers accept lower pay for the same work Imported workers are more skilled Imported workers are easier to manage Nepali workers prefer to migrate Nepali workers who migrate get much better pay

81 40 97 110 142 138 40 80 120 160

Nepali workers are not skilled enough Imported workers accept lower pay for the same work Imported workers are more skilled Imported workers are easier to manage Nepali workers prefer to migrate Nepali workers who migrate get much better pay

40 18 50 52 65 61 20 40 60 80

Nepali workers are not skilled enough Imported workers accept lower pay for the same work Imported workers are more skilled Imported workers are easier to manage Nepali workers prefer to migrate Nepali workers who migrate get much better pay

Q: If employment opportunities in your line of business are good, why are they not filled by Nepali workers?

• Migration of Nepali workers
• Employers reported that workers

went overseas for higher wages

• Nepalese employers reported a

preference for recruiting foreign workers regarded as more flexible and easier to manage

SLIDE 16

Highlights from ADB’s project preparatory documents

Research Tools Employed Level of Analysis To complement labor force survey data,  Qualitative interviews with employers  Meetings with key stakeholders  Focus group discussions*

• 1. Occupations in demand (currently and in

the future)

• 2. Types of skills valued by employers for

specific occupations

• 3. Type of training provided by employers

for new hires

• 4. Forms of cooperation between TVET

schools and employers

Mongolia – Skills for employment project

Qualitative interviews to assess employers’ current and future

• ccupations needs,

specific skills needed in main occupations, as well as their views

• n the relevance of

vocational training programs Sample size: 101 employers Geographical coverage: 4 regions Sectoral coverage: 10 sectors**

* with TVET students, recent graduates, unemployed, and persons with disabilities ** 1) construction; 2) road construction and maintenance; 3) agriculture; 4) transportation; 5) manufacturing; 6) light industry /wool, cashmere, and food processing/; 7) mining; 8) power energy and heat processing and supply; 9) water supply, sewage, waste management remediation activities; 10) wholesale, retail trade, repair of motor vehicles /mostly equipment supplier, dealers and maintenance

SLIDE 17

Highlights from ADB’s project preparatory documents

Mongolia – Skills for employment project

• More than half of employers interviewed (58.4%) did not know how to

determine job-specific technical skills

Don't know how to specify

• ccupa onal

skills 58% Based

• n

job task analysis 27% Based

• n
• ccupa onal

standards 15%

How employers identify occupational skills

SLIDE 18

Highlights from ADB’s project preparatory documents

Mongolia – Skills for employment project

• More than half of employers interviewed (58.4%) did not know how to

determine job-specific technical skills for trade occupations

Only technical 9% Only so 52% Only founda onal 0% Both technical and so 10% All three (founda onal, technical, so ) 5% No specific response provided 24%

Type of skills emphasized by employers

SLIDE 19

Highlights from ADB’s project preparatory documents

Mongolia – Skills for employment project

• Over two-thirds of interviewed employers provide some training to new hires
• Most apprenticeship and on-the-job training focus on technical skills,

suggesting that training programs lack relevance

• Most firms do not develop specific training programs, providing ad-hoc

training

Does not provide training 31% On the job training 17% Appren ceship 41% On the job and appren ceship 6% Induc on 4% With training center 1% Provides training 69%

Training provided by employers

SLIDE 20

Highlights from ADB’s project preparatory documents

Bangladesh – Skills for Employment Investment Program

Research Tools Employed Level of Analysis

• 1. Primary data:

Employer surveys, focus group discussions, key informant interviews

• 2. Secondary data:

Quantitative data analysis using census, labor force surveys, and other administrative sources

• 1. Current and future demand

for different types of

• ccupation in each sector
• 2. Mapping and analysis of
• ccupations and

qualifications

• 3. Adequacy of current training

programs and training needs assessment Macro-level analysis – labor force projections Micro-level analyses - detailed sector assessments in 9 industries* Geographical coverage: nationwide

* Light engineering, construction, IT, shipbuilding, leather goods, agro-processing, healthcare, hospitality & tourism

SLIDE 21

Highlights from ADB’s project preparatory documents

• In the Ready Made

Garment industry, employers report skills shortages as the major constraint to growth

• Skills content of jobs is

also evolving towards more skilled occupations, requiring more autonomy

Skills content of jobs in the Ready-made garment industry

Bangladesh – Skills for Employment Investment Program

0% 20% 40% 60% 80% 100% 2010 2015 Skilled Semi-skilled Unskilled Unskilled Needs close supervision to perform any function and does not have an experience of any skilled/semi-skilled job in the RMG sector Semi-skilled Can perform only one function without supervision Skilled Can perform more than one function without supervision

SLIDE 22

Highlights from ADB’s project preparatory documents

• In the light engineering industry, surveyed employers appear

relatively satisfied with workers’ basic knowledge and technical skills

• However, they rated skills needed to achieve higher degrees of

mastery extremely poorly (e.g. accuracy, precision) and emphasized the absence of transversal skills, such as trouble shooting or communicating

Employers’ assessment of workers’ abilities in selected occupations, light engineering industry 0 = No ability to 10 = Full mastery

Bangladesh – Skills for Employment Investment Program

2 4 6 8 10 Lathe Machine Operator Welder Milling Machine Operator Industrial Electrician Master Cra sman Helper Heat

• Treatment

Plant Operator Electrician

• f

Discharge Machine (EDM) Basic Knowledge Job Skill Accuracy Knowledge

• f

Machine Maintenance Industrial Behavior Trouble Shoo ng Precision Manual Dexterity Working speed Communica on

SLIDE 23

Assessing skills mismatches Looking ahead

Need for a clear framework

• Defining skills and skills mismatches
• Concepts and understanding vary across regions, countries,

sectors

• Need for a common framework
• Proxies to assess skills mismatches
• Currently:
• Qualifications (level and field)
• Ad-hoc questions on skills
• Tools developed by PIAAC and STEP (more sparingly)
• Looking ahead:
• Refine and mainstream these new assessment instruments
• Explore other options as well (datamining)

SLIDE 24

Beyond traditional surveys

• Current sources…
• Labor force surveys
• Individual and employer surveys
• Tracer studies
• Qualitative tools (e.g. focus group discussions, key informant

interviews)

• … present many limitations
• Timeliness
• Cost
• Quality of survey instruments
• Sampling
• Alternatives?
• Data mining of professional networking platforms could provide

valuable data in real time

Assessing skills mismatches Looking ahead

SLIDE 25

https://www.adb.org/sectors/education/main

EDUCATION SECTOR GROUP