Employment, HRD and MigrationEmployment, HRD and MigrationIssues and PoliciesIssues and Policies

bybySabur GhayurSabur Ghayur

ChairmanChairmanPolicy Planning Cell (PPC)Policy Planning Cell (PPC)

Ministry of Ministry of LabourLabour and Manpowerand Manpower

PIDE Nurturing Mind Seminar SeriesPIDE Nurturing Mind Seminar Series22 June 200622 June 2006

IslamabadIslamabad

This presentationThis presentation1. Introductory observations1. Introductory observations2. 2. Overview of employment and labor Overview of employment and labor

market situationmarket situation3. 3. Key questionsKey questions4. 4. Employment and development Employment and development

potentialpotential5. Skills needed 5. Skills needed 6. 6. Key areas & issues to be addressedKey areas & issues to be addressed7. Conclusions7. Conclusions

Turn around, Turn around, vibrancy & vibrancy &

wider optimismwider optimism““growth growth

consolidationconsolidation””

IntroductoryIntroductoryobservations observations -- II

Poverty reduction Poverty reduction targets &targets &

MDGsMDGsintegratedintegrated

InfrastrucInfrastruc--tureture, human, human

capital &capital &technologytechnology

Total factor Total factor productivityproductivity

Labour marketLabour marketindicators indicators &&

EmpEmp & HRD focus& HRD focus

MTDF & Vision MTDF & Vision 20302030

““enhancing competitiveenhancing competitive--nessness””,, policy policy

OutcomesOutcomes & & ecoecogovernancegovernance

Macro & secMacro & sec--toraltoral policies & policies & PSDPsPSDPs empemp

outcomeoutcome??

IntroductoryIntroductoryobservations observations -- IIII

Mismatch of Mismatch of educated andeducated and

trainedtrained

StrengtheningStrengthening& better & better

coordinationcoordinationof HRDof HRDUU

machinerymachinery

Labour marketLabour marketmonitoringmonitoring

HRDHRDlinkageslinkages

with policieswith policiesNeeds Needs

assessmentassessment??

Rising i) tradeRising i) tradegap, ii) deficit, gap, ii) deficit,

iii) pricesiii) prices

Low LFPRLow LFPRhigh high dependepen--

dencydency ratioratio[but[but hugehugeuntappeduntappedreservoir]reservoir]

Overview of employment & Overview of employment & LM situation LM situation -- II

Lit 50%, 1/3Lit 50%, 1/3rdrd < mat, < mat, 10% mat, 4% each inter &10% mat, 4% each inter &

degree, low vocdegree, low voc& tech competence of LF& tech competence of LF[[1) 22.6M lit & 1) 22.6M lit & eduedu 2) total 2) total

enrolment 25.98M; enrolment 25.98M; 3M 3M secondary & higher level butsecondary & higher level but

<1/2mn degree+<1/2mn degree+]]

1)1) LF 13LF 13--14% 14% manufacmanufac.,.,

2) 43% 2) 43% agragr, , 3) Largest in 3) Largest in

services services & mainly in& mainly indomesticdomestic

commerce (IFS?)commerce (IFS?)

DecliningDecliningFS, public sectorFS, public sectorShedding Shedding empemp & &

same for LSMsame for LSMSelf Self empemp & unpaid FH, & unpaid FH,

3/5th IFS3/5th IFS

1)1) underunder--utilization of 20%, 3.5mnutilization of 20%, 3.5mn

UE; UE; eduedu, trained &, trained &youth UE doubleyouth UE double2) Hours worked2) Hours worked

33% >65hrs33% >65hrs15% <15hrs15% <15hrs

Overview of employment & LM situation Overview of employment & LM situation -- IIIIUnemployment:Unemployment: Rising UE arrested, double digit amongst youth, Rising UE arrested, double digit amongst youth, higher in rural areas and amongst males, majority of UE women inhigher in rural areas and amongst males, majority of UE women in rural rural areasareas

4.00

4.50

5.00

5.50

6.00

6.50

7.00

7.50

8.00

8.5019

90-9

1

1991

-92

1992

-93

1993

-94

1994

-95

1995

-96

1996

-97

1997

-98

1998

-99

1999

-00

2000

-01

2001

-02

2002

-03

2003

-04

Overview of employment & LM situation Overview of employment & LM situation -- IIIIIISignificant proportion of Significant proportion of employed earning employed earning subsistence wagessubsistence wages2/52/5thth of employees of employees getting < getting < RsRs 2,500; 75% 2,500; 75% of womenof womenPoverty wages more Poverty wages more prevalent amongst prevalent amongst women >half of themwomen >half of themWages of skilled & Wages of skilled & unskilled construction unskilled construction workers; rural nonworkers; rural non--farm farm & even in & even in agragr sector?sector?[Monthly exp < [Monthly exp < 670/capita poverty line]670/capita poverty line]

3753752102105075071,2291,2292,3122,312FeFe--MaleMale(000)(000)

4,3824,3824,2684,2683,5053,5052,1052,10514,26014,260MaleMale(000)(000)

4,7574,7574,4694,4694,0124,0123,3343,33416,57216,572TotalTotal(000)(000)

4,0014,001& & aboveabove

2,5012,501--4,0004,000

1,5011,501--2,5002,500

UptoUpto1,5001,500

AllAll

Wage Groups in 2003Wage Groups in 2003--04 04 (in Rupees(in Rupees) )

Overview of employment & LM situation Overview of employment & LM situation -- IVIVOverseas migration around 150,000 (return Overseas migration around 150,000 (return flow?)flow?)Availability of old age benefit (civilians):Availability of old age benefit (civilians): public public sector sector employment 5.81mn in 2001employment 5.81mn in 2001--0202 + EOBI + EOBI coverage coverage about 3mnabout 3mnPlethora of labor laws Plethora of labor laws Complicated, Complicated, duplicated and poorly implemented duplicated and poorly implemented …… limited limited coverage; bycoverage; by--passing passing agriagri & IFS & IFS ……international obligations; ratification and international obligations; ratification and compliance compliance …… flexibility with employment flexibility with employment protectionprotectionAnnual flows to labor market 1.2 Annual flows to labor market 1.2 -- 1.5mn; more 1.5mn; more than half literate, educated & trainedthan half literate, educated & trained

Key questions Key questions -- IIHow to ensure productive employment of: a) new How to ensure productive employment of: a) new entrants (youth), b) backlog, c) under employed, d) entrants (youth), b) backlog, c) under employed, d) discouraged workersdiscouraged workers, e) women & f) re, e) women & f) re--trenched?trenched?Where is employment and development potential? Where is employment and development potential? What are the sectors and activities?What are the sectors and activities?How to tap the potential of employment overseas? How to tap the potential of employment overseas? What shall we do with regard to feminization of What shall we do with regard to feminization of migration migration –– untappeduntapped vast employment potential? vast employment potential? How to estimate/project manpower requirements How to estimate/project manpower requirements (given data limitations)? (given data limitations)? Can we Can we broadlybroadly match supplies with identified demand match supplies with identified demand –– in SMEs, in SMEs, agriagri, rural non, rural non--farm, urban IFS, farm, urban IFS, manufacmanufac, , domestic commerce, construction/housing, etc domestic commerce, construction/housing, etc -- by by gender, education/literacy, training/skills of the work gender, education/literacy, training/skills of the work force?force?Do we have responsive education and training system Do we have responsive education and training system to meet the requirements of the identified activities? to meet the requirements of the identified activities?

Key questionsKey questions -- IIIIDo we have an institutional mechanismDo we have an institutional mechanism??How to integrate How to integrate ““decent employmentdecent employment””, , poverty reduction and HRD with HRDpoverty reduction and HRD with HRDUU??How to link policy (How to link policy (iesies) formulation with ) formulation with HRDU and ensure implementation with a HRDU and ensure implementation with a focus on focus on CoordinationCoordination??How to address the How to address the disconnect disconnect policy policy ((iesies), education & training and ), education & training and industry/employer?industry/employer?How to address factors affecting growth How to address factors affecting growth and Pakistanand Pakistan’’s ranking?s ranking?

Employment and development potential Employment and development potential -- IIDomestic commerce Domestic commerce –– whole sale & retail, ware whole sale & retail, ware housing, distribution housing, distribution -- -- -- refrigerated transportation & refrigerated transportation & transportation (inter & intra city) transportation (inter & intra city) ------ (Organized) street (Organized) street vending vending …… cold chain services cold chain services -- -- -- CNG kit CNG kit installation & filling stationsinstallation & filling stations…… (also food kiosks & (also food kiosks & nurseries at bus stops) nurseries at bus stops) [[EduEdu/lit, youth, females, /lit, youth, females, males, clusters, skilled/lit/males, clusters, skilled/lit/eduedu, return migrants (, return migrants (RMsRMs))]]Consumer electronics & electrical appliances Consumer electronics & electrical appliances Call centers/PCOs, mobile phone sale & repairs, ISPs Call centers/PCOs, mobile phone sale & repairs, ISPs & broadband service providers (& broadband service providers (BBSPsBBSPs), internet ), internet cafes, cable services] [cafes, cable services] [EduEdu/lit, youth, females, males/lit, youth, females, males

↨↨ ↨↨ ↨↨ workers retrenched/laid off,workers retrenched/laid off, RMsRMs]]ICT, Software houses, inward & outward call ICT, Software houses, inward & outward call centers,centers,……Housing and construction Housing and construction –– housing schemes for housing schemes for large towns, tehsils, districts, metropolitan cities large towns, tehsils, districts, metropolitan cities [[largely male construction workerslargely male construction workers]]

Employment and development potential Employment and development potential -- IIIISecurity personnel and guardsSecurity personnel and guards(Emerging but largely untapped) leisure industry (Emerging but largely untapped) leisure industry ––beauty saloons, barbers, health clinics, indoor beauty saloons, barbers, health clinics, indoor swimming pools, message parlors, savanna/Jacuzzi,swimming pools, message parlors, savanna/Jacuzzi,……

rising urban population, middle & low middle rising urban population, middle & low middle income groups and remittances receiving households income groups and remittances receiving households [[EduEdu/lit, youth, females, males, clusters, skilled/lit//lit, youth, females, males, clusters, skilled/lit/eduedu]]Education especially schools for boys & girls (and Education especially schools for boys & girls (and even tech even tech eduedu & voc & voc trgtrg) ) private sector private sector Health care & health related Health care & health related private sectorprivate sectorTourism & hospitalityTourism & hospitalityAdvertising, marketing and creative services (including Advertising, marketing and creative services (including writing for computer games/others)writing for computer games/others)

Employment and development potential Employment and development potential -- IIIIII

Electronic and printElectronic and print media media Banking, leasing and insurance Banking, leasing and insurance Travel agencies, air line ticketing Travel agencies, air line ticketing Printing & publicationPrinting & publication[[above potential exists inabove potential exists in towns, urban centers & towns, urban centers & clusters for youth, males, females, skilled/lit/clusters for youth, males, females, skilled/lit/eduedu]]Furniture, wood work and craftsFurniture, wood work and crafts [[rural areas, rural areas, towns & urban centerstowns & urban centers]]Construction related industry Construction related industry –– stone stone crushing, brick kilns, machinery & equipments, crushing, brick kilns, machinery & equipments, cement, steel, pipes & cement, steel, pipes & cablescables, sanitary wares, , sanitary wares, tiles, ceramicstiles, ceramics…… [[towns, urban centers, clusters, towns, urban centers, clusters, production workers, skilled/lit/production workers, skilled/lit/eduedu]]

Employment and development potential Employment and development potential -- IVIVEnergy Energy –– renewable [biorenewable [bio--diesel, fuel ethanol, diesel, fuel ethanol, solar, wind, tidal (AEDB)] + LPG, CNG +++Coal solar, wind, tidal (AEDB)] + LPG, CNG +++Coal [[rural areasrural areas, , towns, road networks, urban towns, road networks, urban centers, production workers, skilled/lit/centers, production workers, skilled/lit/eduedu]]Huge coal reserves Huge coal reserves 185 billion MT but current use 185 billion MT but current use only a fraction only a fraction butbut 1/4th used imported; 99% deposits 1/4th used imported; 99% deposits in Sindh; Low ash low in Sindh; Low ash low sulphersulpher lignite discovered in lignite discovered in TharparkerTharparker –– coal could be used as a fuel for sugar; coal could be used as a fuel for sugar; saving 9 MT of saving 9 MT of bagassebagasse that could be used for medium that could be used for medium density fiberboard + gasification of coal can be useddensity fiberboard + gasification of coal can be usedfor chemicals including fertilizers +++ natural gas for chemicals including fertilizers +++ natural gas saved can be used for Trisaved can be used for Tri--Ethylene Glycol Ethylene Glycol && many many other chemicals can be manufactured from the natural other chemicals can be manufactured from the natural gas gas

Employment and development potential Employment and development potential -- VV

Chemicals, fertilizers, pesticides Chemicals, fertilizers, pesticides (pharmaceuticals)(pharmaceuticals)Light engineering, industrial clustering & Light engineering, industrial clustering & vendor industry vendor industry Marble industry Marble industry ------ all processesall processesPublic works programsPublic works programsWater reservoirs Water reservoirs Fruit & vegetable, livestock, sheep & goat, Fruit & vegetable, livestock, sheep & goat, dairy & milk, fisheries, horticulture, dairy & milk, fisheries, horticulture, floriculture,floriculture, olives, pomegranates, grapes, dates, figsolives, pomegranates, grapes, dates, figs[[rural areas/towns, urban centers, clusters, farmers, rural areas/towns, urban centers, clusters, farmers, males, females, skilled/lit/males, females, skilled/lit/eduedu]]Feed millsFeed mills

Employment and development potential Employment and development potential -- VIVI

Cotton value added Cotton value added ginning, thread, bleaching and ginning, thread, bleaching and coloring, coloring, textiles & clothing, garments, hosiery, bed textiles & clothing, garments, hosiery, bed linens,linens,…… [[towns, urban centers, clusters, towns, urban centers, clusters, framers/cotton pickers, males, females, skilled/lit/framers/cotton pickers, males, females, skilled/lit/eduedu]]Sports, surgical and cutlerySports, surgical and cutleryLeather Leather –– complete processcomplete processCarpets & rugsCarpets & rugsOverseas migration: 1) Arab Gulf Overseas migration: 1) Arab Gulf $1 trillion $1 trillion projects; more than half in construction projects; more than half in construction -- $228bn oil & $228bn oil & gas, $106bn petrochemicals, $70bn power & water dev gas, $106bn petrochemicals, $70bn power & water dev –– UAE alone $300bn projects (The Engineer May 2006, UAE alone $300bn projects (The Engineer May 2006, p/4), 2) Others p/4), 2) Others repair & maintenance, industrial & repair & maintenance, industrial & health (nurses in particular) technicians, domestic health (nurses in particular) technicians, domestic maids, ICT related,maids, ICT related,……..(other) Export oriented products(other) Export oriented products

Harnessing employment and development Harnessing employment and development potentialpotential

Awareness about Awareness about potentialpotential & constraints? & constraints? Actions/measures? Actions/measures? Policy (Policy (iesies) targeting potential?) targeting potential?Policy (Policy (iesies) inconsistencies?) inconsistencies?Regulatory framework, ownership titles, level Regulatory framework, ownership titles, level playing field, playing field, …….?.?InfrastructureInfrastructureInstitutional mechanism?Institutional mechanism?PublicPublic--private partnership?private partnership?Education and training systemEducation and training system??

Skills needed Skills needed -- IIFor manufacturing, repair & maintenanceFor manufacturing, repair & maintenance

Foundry & pattern making, metallurgy, electroplating, Foundry & pattern making, metallurgy, electroplating, tools & dies designing, tools & dies designing, mouldingmoulding, melting & casting, , melting & casting, metallic & composite material, installation and metallic & composite material, installation and electromechanical & assembly systems maintenance electromechanical & assembly systems maintenance [TUSDEC centers for tools, dies & moulds reported to be in [TUSDEC centers for tools, dies & moulds reported to be in Karachi & Karachi & GujranwalaGujranwala]]Welding; electric & gas (Welding; electric & gas (tigmigtigmig, seam & x, seam & x--ray ray espesp for for pipelines)pipelines)Computer aided design & Computer aided design & manufacmanufac (CAD/CAM) (CAD/CAM) -- civil, civil, electrical & mechanical electrical & mechanical –– and computer numeric and computer numeric controlled manufacturing (CNC) controlled manufacturing (CNC) [[eduedu/trained, males & also /trained, males & also femalesfemales] ] [TUSDEC centers for CAD/CAM reportedly in 8 cities[TUSDEC centers for CAD/CAM reportedly in 8 cities]]

Chip designing & testing Chip designing & testing [[eduedu/trained, males & females/trained, males & females]]

Skills needed Skills needed -- IIIIFor SMEs For SMEs --1 1

Light engineering Light engineering Metal industry relatedMetal industry relatedDiesel fuel skillsDiesel fuel skillsMining & quarry Mining & quarry ICT related skills ICT related skills [[above all needed inabove all needed in towns, urban centers, towns, urban centers, clusters, males, females, skilled/lit/clusters, males, females, skilled/lit/eduedu]]Garment makingGarment makingPrinting process Printing process

Skills needed Skills needed -- IIIIIIFor SMEs For SMEs -- 2 2

Construction industryConstruction industry--related related Steel fabricationSteel fabricationWooden furnitureWooden furnitureMarble finishing and processingMarble finishing and processingGems & jewelry Gems & jewelry CeramicsCeramicsCutleryCutlerySurgicalSurgicalSports goodsSports goodsLeather products/technologyLeather products/technologyBlue pottery Blue pottery

Skills needed Skills needed -- IVIVFor domestic commerce & service For domestic commerce & service -- 11

Entrepreneurship developmentEntrepreneurship developmentStarting and managing small businessStarting and managing small businessRunning stores, shops, departmental stores, Running stores, shops, departmental stores, distribution, cold stores,distribution, cold stores,……..Book keeping and accounts [certified Book keeping and accounts [certified accountant for sales tax/income tax]accountant for sales tax/income tax]Spoken English, correspondenceSpoken English, correspondence[[above all needed inabove all needed in towns, urban centers, towns, urban centers, eduedu/trained, /trained, males & females, workers laid off/retrenched, males & females, workers laid off/retrenched, employees having taken golden handshakeemployees having taken golden handshake]]Pattern drafting & machine sewing/embroideryPattern drafting & machine sewing/embroideryRepair & maintenance Repair & maintenance –– auto mobiles, auto mobiles, domestic appliances, domestic appliances, ……

Skills needed Skills needed -- VVFor domestic commerce & service For domestic commerce & service -- 22

Hospitality industry Hospitality industry –– hotels, restaurants, hotels, restaurants, caterers, chefs, tourist guides, butlers/cookscaterers, chefs, tourist guides, butlers/cooksHealth related Health related –– xx--ray & laboratory technicians, ray & laboratory technicians, nurses, dispensers, midwives, pharmacists, nurses, dispensers, midwives, pharmacists, dental care, dental care, ……Optical techniciansOptical techniciansLeisure industry/activityLeisure industry/activity--specificspecificEvent managementEvent management[[above all needed inabove all needed in rural area except leisure industry,rural area except leisure industry,towns, urban centers, clusters, males, females, towns, urban centers, clusters, males, females, skilled/lit/skilled/lit/eduedu]]Security personnel and guardsSecurity personnel and guards

Skills needed Skills needed -- VIVIFor agricultureFor agriculture

Seed technologySeed technologyCrop planning and productionCrop planning and productionPlant protection, integrated pest managementPlant protection, integrated pest managementBalanced application of chemical fertilizers and Balanced application of chemical fertilizers and pesticidespesticidesLand reclamation, farming & precision land levelingLand reclamation, farming & precision land levelingPressured irrigation systems, tube wells and pondsPressured irrigation systems, tube wells and pondsFarm forestryFarm forestryHigh value crops, fruits and vegetables (seasonal and High value crops, fruits and vegetables (seasonal and off season through tunnel farming)off season through tunnel farming)Certified fruit and vegetable nurseriesCertified fruit and vegetable nurseriesFloriculture (cutFloriculture (cut--flower)flower)

Skills needed Skills needed -- VIIVIIFor agroFor agro--relatedrelated

Farm machinery Farm machinery Processing industry (fruits, vegetables, Processing industry (fruits, vegetables, oilseeds, pulp)oilseeds, pulp)Inedible oil extraction from rice bran (important Inedible oil extraction from rice bran (important raw material in manufacturing of soap, raw material in manufacturing of soap, washing powder, etc)washing powder, etc)GinningGinningGrading, packing, processing and waxing of Grading, packing, processing and waxing of fruits fruits -- mango, orange, dates, etc mango, orange, dates, etc

Skills needed Skills needed -- VIIIVIIIFor nonFor non--farm sectorfarm sector

Livestock development (dairy farming, Livestock development (dairy farming, animal fattening, breeding through animal fattening, breeding through artificial insemination and meat artificial insemination and meat processing)processing)Fisheries (farms, processing and Fisheries (farms, processing and preservation of fish and shrimps)preservation of fish and shrimps)Forestry and agroForestry and agro--forestry products forestry products

For overseas migrationFor overseas migrationSkills as indicated in the Skills as indicated in the ““potentialpotential””

Key areas and issues to be addressed Key areas and issues to be addressed -- IIFavorable environment for domestic commerce Favorable environment for domestic commerce

and SMEs developmentand SMEs developmentProduct/activity specific policies as well as Product/activity specific policies as well as for developing markets/malls,for developing markets/malls,……Tackling 1) largely indifferent attitude towards Tackling 1) largely indifferent attitude towards domestic commerce, and 2) poor quality domestic commerce, and 2) poor quality output, marketing bottlenecks, lack of output, marketing bottlenecks, lack of integration, linkages and absence of a voiceintegration, linkages and absence of a voiceAccess to infrastructural support, finance and Access to infrastructural support, finance and input marketinput marketBuilding institutional mechanism; Building institutional mechanism; government supported & private sector led government supported & private sector led [SMEDA?; SMEDA alone!][SMEDA?; SMEDA alone!]

Key areas and issues to be addressed Key areas and issues to be addressed -- IIIITechnical education and vocational training Technical education and vocational training --1 1

Low enrolment, low capacity, qualified instructors & Low enrolment, low capacity, qualified instructors & career progression, relevance to market needs, career progression, relevance to market needs, equivalence, equivalence, rigid enrolment and examination systemrigid enrolment and examination systemCentral control and guidanceCentral control and guidanceCoordinationCoordination, standardization, regulation & , standardization, regulation & certificationcertificationMaterials & equipments Materials & equipments Autonomy & flexibility (within set standards)Autonomy & flexibility (within set standards)Role of private sector, Role of private sector, CC&IsCC&Is, business associations, , business associations, exporters [exporters [OEPsOEPs & Business organizations abroad]& Business organizations abroad]OJT, apprenticeship, mobile training especially for OJT, apprenticeship, mobile training especially for the IFS, rural areas and small repair/manufacturing, the IFS, rural areas and small repair/manufacturing, ““OstadOstad--ShagirdShagird”” system (its upsystem (its up--gradation?), gradation?), replication of TREE of ILOreplication of TREE of ILOCost sharing (stipend) Cost sharing (stipend)

Key areas and issues to be addressed Key areas and issues to be addressed -- IIIIIITechnical education and vocational training Technical education and vocational training -- 2 2

Skills dev/Skills dev/upgradationupgradation of workers of workers retrenched/laid off due to restructuring & retrenched/laid off due to restructuring & privatization, and of return migrantsprivatization, and of return migrantsTargeting schools drop outs + those not Targeting schools drop outs + those not enrolled enrolled Untapped vast reservoir of Untapped vast reservoir of manpower and potential for TEVTmanpower and potential for TEVTStock taking of skills dev Stock taking of skills dev –– formal, nonformal, non--formal formal & informal& informalAssessing skills and training needs [& Assessing skills and training needs [& shortages] shortages] industry, banking & finance, industry, banking & finance, tourism, tourism, elecelec & print media, SMEs including & print media, SMEs including domestic commerce, agriculture related, agro domestic commerce, agriculture related, agro processing, cottage processing, cottage indind, rural non, rural non--farm, farm, ……

Key areas and issues to be addressed Key areas and issues to be addressed -- IVIV

Technical education and vocational Technical education and vocational training training -- 33Introduction of technology, vocational & Introduction of technology, vocational & commercial stream in school education commercial stream in school education (or integration?) (or integration?) –– what, why, where & what, why, where & how?how?Designing skills dev strategy Designing skills dev strategy –– overall & overall & sectoralsectoral -- with adequate considerations with adequate considerations on publicon public--private partnership, OJT, private partnership, OJT, OstadOstad--shagirdshagird systemsystem

TEVT institutions: type, numbers and CapacityTEVT institutions: type, numbers and CapacityProvince Type of Institute No. of Centre Capacity

TEVTA Punjab Technical and Vocational

402 83,000

Punjab Training Council Vocational 60 15,000 DMT Sindh Vocational 33 3,740 Directorate of Technical Education

Technical 53 9293

TE and M&T NWFP Technical and Vocational

35 3,300

DMT Balochistan Vocational 12 1,730 Skill Development Council Technical and

Vocational Contractual

Basis 25,000

Federal Ministry of Labour 2 1,500 Federal Ministry of Education 2 1,400 Private Sector & Apprentice

70,000

Total 599 213,670 DMT = Directorate of Manpower and Training of Labour Source : ADB

(2005)

TEVT potential

Higher SecondarySecondary MiddlePrimary

Dropouts

11.05

3.25

2.40

Age

Total : 17.00 Million

0.30

Class – 12

Class – 10

Class – 8

Class – 5

School Years TEVT Potential

17 Million places17 Years

15 Years

13 Years

10 Years

5 Years

11.05

3.25

2.40

0.30

Source: Planning Commission Report of Working Group on Basic andSource: Planning Commission Report of Working Group on Basic and College Education for MTDF 2005College Education for MTDF 2005--10 (taken from10 (taken from DG, NISTEDG, NISTE))

Key areas and issues to be addressed Key areas and issues to be addressed -- VVOverseas migrationOverseas migration

Retaining share in the traditional markets and Retaining share in the traditional markets and exploring markets in Far East Asia, East Asia exploring markets in Far East Asia, East Asia and countries with point system and countries with point system Effective utilization of an increasing Effective utilization of an increasing feminization of migrationfeminization of migrationSufficiently trained, disciplined and Sufficiently trained, disciplined and adequately informed intending workforceadequately informed intending workforceEffective monitoring of markets overseasEffective monitoring of markets overseasTimeliness in demand processingTimeliness in demand processingWorking and living conditions overseasWorking and living conditions overseasManaging reverse flow and productive Managing reverse flow and productive utilization of remittancesutilization of remittances

Key areas and issues to be addressed Key areas and issues to be addressed -- VIVIRural areas Rural areas ““War for employment generation and poverty War for employment generation and poverty reductionreduction”” has to be fought and successfully won in has to be fought and successfully won in rural areas and surrounding small towns, National rural areas and surrounding small towns, National Manpower Commission 1989Manpower Commission 1989

Confronted with Confronted with ““development bottlenecksdevelopment bottlenecks””Conditions that help in raising nonConditions that help in raising non--farm activities farm activities

crucialcrucialConditions that help in raising agricultural Conditions that help in raising agricultural

productivity and remove impediments productivity and remove impediments Can Can ““growth trianglesgrowth triangles”” –– govtgovt supported & private supported & private sector managed sector managed -- in the form of 1) a focal point in a in the form of 1) a focal point in a cluster of villages, 2) a multicluster of villages, 2) a multi--purpose rural purpose rural development and industrial support centre (RDISC) in development and industrial support centre (RDISC) in a cluster of focal points, and 3) a mini/small industrial a cluster of focal points, and 3) a mini/small industrial estate in a cluster of estate in a cluster of RDISCsRDISCs be an answer to create be an answer to create conditions and tackling bottlenecks?conditions and tackling bottlenecks?

Key areas and issues to be addressed Key areas and issues to be addressed -- VIIVIISetting up a well functioning LMISSetting up a well functioning LMIS

Capable of 1) generating detailed and disaggregated Capable of 1) generating detailed and disaggregated reliable data, 2) undertaking employment counseling reliable data, 2) undertaking employment counseling and vocational guidance, 3) providing feedback to and vocational guidance, 3) providing feedback to education and training institutions, and 4) providing education and training institutions, and 4) providing employment servicesemployment servicesStrengthening and streamlining of employment Strengthening and streamlining of employment exchangesexchanges

A well integrated and coordinated 4A well integrated and coordinated 4--tier LMIS with a focal tier LMIS with a focal point as suggested by the NMC & others needs to be point as suggested by the NMC & others needs to be carefully looked intocarefully looked into

Local bodiesLocal bodiesImportant player in suggested 4Important player in suggested 4--tier LMIS & growth tier LMIS & growth triangles as well as for triangles as well as for TameerTameer--ee--PakistanPakistan and and KhushalKhushal Pakistan programsPakistan programsStrengthening capacityStrengthening capacity

Key areas and issues to be addressed Key areas and issues to be addressed -- VIIIVIIIMinimum wagesMinimum wages

Applicable at all work placesApplicable at all work placesFixation mechanism consultative/tri partiteFixation mechanism consultative/tri partite

Balanced labor policyBalanced labor policyMinimum standards & safeguards; global complianceMinimum standards & safeguards; global complianceFlexibility with protectionFlexibility with protectionLabor inspection participative & not intimidating; Labor inspection participative & not intimidating; conditions of work, OHS measures, social securityconditions of work, OHS measures, social security……““Labor regulations and strong protection of workersLabor regulations and strong protection of workers’’rights key factors in achieving equitable growth and rights key factors in achieving equitable growth and development development ------ LM are generally not competitive LM are generally not competitive ……and can lead to unfair and inefficient outcomes when and can lead to unfair and inefficient outcomes when bargaining position of workers is week bargaining position of workers is week ------ countries countries should not introduce reducing should not introduce reducing empemp protection protection without improving social protection and job creation without improving social protection and job creation schemesschemes”” WDR 2006WDR 2006

In conclusion; collaborative efforts are needed for:In conclusion; collaborative efforts are needed for:

1. 1. preparing an employment policy that not only provides guidelinpreparing an employment policy that not only provides guidelines es but a mechanism that facilitates generation of but a mechanism that facilitates generation of productive and decentproductive and decentemployment opportunities. employment opportunities. 2. 2. preparing an overseas migration policy that helps in tpreparing an overseas migration policy that helps in tapping (vast) apping (vast) employment potential overseas. employment potential overseas. An institutional mechanism with publicAn institutional mechanism with public--private partnership that also ensures 1) regular monitoring of private partnership that also ensures 1) regular monitoring of development in the major labor importing countries, and 2) practdevelopment in the major labor importing countries, and 2) practices of ices of other labor exporting countries other labor exporting countries 3. 3. Consolidating, simplifying and classifying labor laws thereby Consolidating, simplifying and classifying labor laws thereby furthering cordial industrial relations and conducive working furthering cordial industrial relations and conducive working environment as well as meeting international obligations in a glenvironment as well as meeting international obligations in a globalizing obalizing environmentenvironment4. 4. developing best practices in the area of social security and redeveloping best practices in the area of social security and related lated fundsfunds5. 5. developing a mechanism for the universal availability of old adeveloping a mechanism for the universal availability of old age ge benefit benefit 6. 6. preparing HRD policy with a focus on demand driven skills preparing HRD policy with a focus on demand driven skills development with a mechanism that ensures well integrated and development with a mechanism that ensures well integrated and coordinated delivery of vocational training, and technical and ccoordinated delivery of vocational training, and technical and commercial ommercial educationeducation7. 7. Making suggestions in tMaking suggestions in tackling the ackling the disconnecdisconnect between macro & t between macro & sectoral policy formulations with the users (employers) and prodsectoral policy formulations with the users (employers) and producers ucers (education & training institutions) (education & training institutions)

EmployEmploy--mentment

PolicyPolicy

MigraMigra--tiontion

PolicyPolicy

HRDHRDPolicyPolicy

Pension/Pension/WorkersWorkersFundsFunds

LabourLabourLawsLaws

PolicyPolicyPlanning Planning

CellCell

TasksTasks

(Planned) Output of the PPC(Planned) Output of the PPC1. 1. Employment policy draftEmployment policy draft2. 2. (Overseas) Migration policy draft(Overseas) Migration policy draft3. 3. HRD policy draftHRD policy draft4. 4. Recommendations on simplification Recommendations on simplification

and rationalization of labor laws and and rationalization of labor laws and classification into 5classification into 5--6 categories6 categories

5. 5. Recommendations on sustainability Recommendations on sustainability & more effective/beneficial use of & more effective/beneficial use of pension and workers welfare funds pension and workers welfare funds as well as extending coverageas well as extending coverage

Source: Global Competitive Index, World Economic Forum, 2005

Ranking in Terms of Key Factors Affecting GrowthRanking in Terms of Key Factors Affecting Growth

6161

4242

116767

4343

2626

5252

33

88

22

Availability

Availability

of of

Scientists Scientists

&

&

EngineersEngineers

142142

8888

127127

9494

5959

1010

2828

2222

88

1313

Hum

anH

uman

Developm

eD

evelopme

ntntIndex Index (H

DI)

(HD

I)

8787

6767

3737

3232

2323

2727

2626

2222

11

22G

lobalG

lobalC

ompetitiv

Com

petitivenessenessIndexIndex

7373

5252

3030

4747

2323

2222

2424

2121

11

22

Business

Business

Com

petitivC

ompetitiv

enessenessIndexIndex(B

CI)

(BC

I)

102102

6262

5353

5555

3838

1717

4141

2424

2121

33

Public Public

InstitutionInstitution

IndexIndex

6767

8484

5252

2424

2020

2121

3535

4343

1515

33

Macro

Macro --

Economic

Economic

EnvironmEnvironm

’’ tt ..IndexIndex

8787

5252

6363

6262

2727

3737

99

88

11

33

Technology Technology

IndexIndex

Dynamic Dynamic adopters adopters

Potential Potential leaders leaders

LeadersLeaders

CategoryCategory

9191PakistanPakistan

6666TurkeyTurkey

5555IndiaIndia

4646ChinaChina

3131MalaysiaMalaysia

3030IrelandIreland

2929KoreaKorea

1919IsraelIsrael

22USAUSA

11FinlandFinland

Grow

thG

rowth

Com

petitivC

ompetitiv

enesseness

IndexIndex -- (G

CI)

(GC

I)

CountryCountry

Building virtuous circle of linksBuilding virtuous circle of links(Higher)

Economic growth

Higher income including of poor risingdemand

Higher exp on health, edu and skills espby poor Human Dev

Better Better institutionsinstitutions

& good & good GoverGover--nancenance

Increased produc-

tivecapacity

More employment with rising

productivity

Savings & Investment

Increased Productive Capacity