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Skills’10 Project Specialized Vocational Training Centers
Project (UMEM Beceri’10)
Prof. Dr. Serdar Sayan TOBB University of Economics and Technology
Director, Center for Social Policy Research
TOBB, Ankara
11 January 2012
Framework
• Skills development for economic development
• Unskilled workforce as a major problem in Turkey
• Important role for the private sector
• UMEM Skills’10 Project
• Relevance to Other Countries
• Conclusions
Serdar SAYAN
Skills Development
• Skills development for economic development
• Unskilled workforce as a major problem in Turkey
• Important role for the private sector
• UMEM Skills’10 Project
• Relevance to Other Countries
• Conclusions
Serdar SAYAN
Skills Development
• Improvement of the vocational education system:
– improves human capital and productivity
– reduces skills mismatches in the labor market
– increases competitiveness of the economy
– reduces unemployment and poverty
– promotes economic growth
Serdar SAYAN
Unskilled Workforce in Turkey
• Skills development for economic development
• Unskilled workforce as a major problem in Turkey
• Important role for the private sector
• UMEM Skills’10 Project
• Relevance to Other Countries
• Conclusions
Serdar SAYAN
Unskilled Workforce in Turkey
• 3.4 million unemployed people in December 2008 (14% of the workforce) – As of September 2011, 2.4 million people are unemployed (8.8%
of the workforce)
• Skills mismatch due to low-skilled work force – One of the main reasons behind unemployment
– Firms have difficulties in hiring qualified staff
• The global financial crisis exacerbated the situation – Mostly unskilled people lost their jobs
Serdar SAYAN
Role of the Private Sector
• Skills development for economic development
• Unskilled workforce as a major problem in Turkey
• Important role for the private sector
• UMEM Skills’10 Project
• Relevance to Other Countries
• Conclusions
Serdar SAYAN
Role of the Private Sector
• Two sides of the unemployment problem
– Unemployed people do not satisfy the requirements of firms, due to their low skills.
– Although there are vacancies, firms can not find qualified candidates in the labor market.
• The private sector organizations can contribute to reduce these mismatches
– Taking an active role in the vocational training system
– Serving as a mediator between firms and job seekers
Serdar SAYAN
UMEM Skills’10
• Skills development for economic development
• Unskilled workforce as a major problem in Turkey
• Important role for the private sector
• UMEM Skills’10 Project
• Relevance to Other Countries
• Conclusions
Serdar SAYAN
UMEM Skills’10
• A unique example of Public-Private-University Partnership
• Local Labor Market Analyses are being conducted for the first time in Turkey
• In the new design, private sector is located at the center of the Vocational Training system through the Chambers of Industry and Commerce
• Courses for the unemployed are designed according to the requirements of the private sector, to increase their employment opportunities.
Why Skills’10 is Different?
Serdar SAYAN
• Firms get involved in the creation of the course curriculum
• Firms can choose the trainees they want to employ
• Firms’ own foremen can act as trainers in the courses
• Firms can observe trainees during the whole process
• Firms can provide in-house trainings
Serdar SAYAN
UMEM Skills’10 Flexible Project
UMEM Skills’10
• Strengthening the Infrastructure – Renewal of the equipment, Revision of the curricula, Training of
the trainers
• Labor Market Needs Analysis – 19 cities selected as pilot, Capacity building for the remaining
cities
• Matching the trainees with the firms – Selection of the trainees, Matching the trainees with the firms
• Implementation of the courses – Internships provided for successful trainees, Job placement for
successful interns
UMEM Skills’10 Activities
Serdar SAYAN
UMEM Skills’10 Process
Needs Analysis
Matching trainees and firms
Theoretical and Practical Training
Job Placement
Infrastructure
Supply of skilled labor (applicants for
training courses)
Demand for skilled labor
Serdar SAYAN
Course identification according to the demands and curriculum revision
Course announcements and application collection
Determination of the trainees according to the interviews
Initialization of the courses – max. 3 months and Evaluation of the courses
Initialization of the internships – max. 3 months (in the factories – full time)
Evaluation of the internships (will be evaluated by the employer)
Employment of the Successful Trainees
Serdar SAYAN
UMEM Skills’10 Process in Detail
UMEM Skills’10 Incentives to Promote the Project • Theoretical and practical training period
‒ Daily 15 TL, monthly 360 TL allowance ‒ Public health insurance
• When successful trainees are employed ‒ employer’s insurance contribution is paid by government for up to 4.5
years
Female /30 yr old or younger Male
Employee 30+ Male Employee
Has vocational competence certificate 4,5 years 3,5 years
Does not have vocational competence certificate 3,5 years 2,5 years
Serdar SAYAN
UMEM Skills’10
• In all 81 cities, 100 million TL (app. 57 million USD*) is invested on the infrastructure of 140 vocational high schools.
• Local Course Administration councils were established • The instructors of these schools have been trained to train
the unemployed. • In 19 provinces that constitute 80% of the work force,
Labor Market Needs Analyses are performed. • 5,000 firms are surveyed, their requirements concerning
their employees and vacant positions are detected.
Achievements-1
Serdar SAYAN
*Expenditure is converted into dollars using the average annual exchange rate for 2011 which is published by CBRT
UMEM Skills’10
• In 5,000 firms, the demand for intern positions are also identified. • Analysis results were shared with public by meetings in 19
provinces. Problems of labor market were discussed with industrial employers of 19 provinces.
• Central Information System studies have been completed. The labor demands are collected through this system. (www.beceri.org.tr)
• Advertisement activities (posters, brochures, TV programmes, etc.) • A 7/24 call center was established in order to respond to
informational inquiries. Result: Successful trainees are getting their certificates.
Achievements-2
Serdar SAYAN
UMEM Skills’10
“Course management” structure:
– Empowering local stakeholders
• Retrieving the labor market information
• Deciding the courses to be opened
• Modifying curricula according to local needs
• Selecting suitable candidates for the courses
• Quality assurance for the courses
• Matching local unemployed with local firms
– Forcing them to work together
• Local MoNE representative
• Local İŞKUR representative
• Local Chamber representative
New Governance Mechanism
Serdar SAYAN
UMEM Skills’10
As of 10.01.2012;
• 1,987 courses have been opened for 29,247 trainees. – At the moment 5,531 people are being trained.
– 1,434 courses have been completed, 17,842 people graduated.
– The successful people are being employed.
• 4,740 firms have demanded 50,608 interns so far.
• 35,001 unemployed people applied to these courses.
Current Situation
Source: Skills’10 Administration System Serdar SAYAN
Aged 16-24 49%
Aged 25-34 39%
35-44 11%
45+ 1%
Female 19%
Male 81%
Primary Education
47% Secondary Education
41%
Higher Education
12%
Profile of the Course Participants
UMEM Skills’10
Serdar SAYAN Source: Skills’10 Administration System
Occupation Demand for Interns (persons)
Sewing Machine Operator 764 Gas Metal Arc Welder 376 Sewing Machine Operator (fabric) 337
Weaving Machine Operator 314
Confection Worker 303 CNC Operator 278 Thread Maker (Ring/Vater/Vargel) 276 Quality Controller (Textile) 273 Welder (Oxygen and Electricity) 233 Presser 231
Plastics Injection and Molding Machine Operator 219
Other Sewer and Embroiderer 212 Mechanical Maintenance-Repairer 201 Lathe Operator 201 Overlock Machine Operator 197 Pirn Folding/Bending Machine Operator 192
Most Demanded Occupations by Firms
UMEM Skills’10
Serdar SAYAN Source: Skills’10 Administration System
Most Demanded Occupations in Provinces
UMEM Skills’10
Serdar SAYAN Source: Skills’10 Administration System
Relevance to Others
• Skills development for economic development
• Unskilled workforce as a major problem in Turkey
• Important role for the private sector
• UMEM Skills’10 Project
• Relevance to Other Countries
• Conclusions
Serdar SAYAN
Relevance to Others
• How do countries perform in terms of labor market efficiency?
• What is the demographic structure?
• What does this tell about the need for labor market transformations?
Serdar SAYAN
Relevance to Others TURKEY
- Labor market efficiency is a constraint, - Young population’s share shrinks but number increases.
26 26 25 25 25 24 23 22 21
55 58 61 63 64 63 63 62 60
18 22 25 28 31 34 36 37 37
0
20
40
60
80
100
120
140
2010 2015 2020 2025 2030 2035 2040 2045 2050
Po
pu
lati
on
by
Age
Gro
up
s (m
illio
ns)
50-64
25-49
15-24
18% 17% 16% 15% 14% 14% 13% 12% 12%
38% 38% 38% 38% 37% 36% 35% 34% 33%
12% 14% 15% 17% 18% 19% 20% 20% 20%
0%
10%
20%
30%
40%
50%
60%
70%
80%
2010 2015 2020 2025 2030 2035 2040 2045 2050
Shar
e o
f A
ge G
rou
ps
in T
ota
l (%
) 50-64
25-49
15-24
Sources: WEF GCR 2010-11, UN Population Division Serdar SAYAN
Relevance to Others
Sources: WEF GCR 2010-11, UN Population Division
CAMEROON - Labor is as efficient as the average but, - Young population’s share and number increases.
8 9 9 11 12 12 13 13 14
11 13 15 17 19 21 23 25 27
3 3
4 4
5 6
7 8
9
0
10
20
30
40
50
60
2010 2015 2020 2025 2030 2035 2040 2045 2050
Po
pu
lati
on
by
Age
Gro
up
(m
illio
ns)
50-64
25-49
15-24
21% 20% 20% 20% 20% 20% 19% 18% 18%
28% 29% 31% 32% 32% 33% 34% 34% 35%
7% 7% 7% 8% 8% 9% 10% 11% 12%
0%
10%
20%
30%
40%
50%
60%
70%
2010 2015 2020 2025 2030 2035 2040 2045 2050
Shar
e o
f A
ge G
rou
ps
in T
ota
l
50-64
25-49
15-24
Serdar SAYAN
Relevance to Others
Sources: WEF GCR 2010-11, UN Population Division
EGYPT - Labor market efficiency is a constraint, - Share of young people remains fixed but number increases 60% in the next 40 years.
32 32 33 35 36 36 35 34 34
53 61 67 72 77 79 81 84 85
18 20
23 25
29 34 40 43 44
0
20
40
60
80
100
120
140
160
180
2010 2015 2020 2025 2030 2035 2040 2045 2050
Po
pu
lati
on
by
Age
Gro
up
(m
illio
ns)
50-64
25-49
15-24
20% 18% 17% 17% 17% 16% 15% 14% 14%
33% 34% 35% 36% 36% 36% 35% 35% 34%
11% 12% 12% 13% 14% 15% 17% 18% 18%
0%
10%
20%
30%
40%
50%
60%
70%
80%
2010 2015 2020 2025 2030 2035 2040 2045 2050
Shar
e o
f A
ge G
rou
ps
in T
ota
l
50-64
25-49
15-24
Serdar SAYAN
Relevance to Others
Sources: WEF GCR 2010-11, UN Population Division
INDONESIA - Labor is as efficient as the average but, - Share of young people decreases but number increases.
86 85 85 86 83 79 76 73 70
184 194 201 203 205 204 202 199 195
53 66 79 91 100 108 112 114 113
0
50
100
150
200
250
300
350
400
450
2010 2015 2020 2025 2030 2035 2040 2045 2050
Po
pu
lati
on
by
Age
Gro
up
(m
illio
ns)
50-64
25-49
15-24
18% 17% 16% 16% 15% 14% 13% 12% 12%
38% 39% 38% 37% 37% 36% 35% 34% 33%
11% 13% 15% 17% 18% 19% 19% 19% 19%
0%
10%
20%
30%
40%
50%
60%
70%
80%
2010 2015 2020 2025 2030 2035 2040 2045 2050
Shar
e o
f A
ge G
rou
ps
in T
ota
l
50-64
25-49
15-24
Serdar SAYAN
Relevance to Others
Sources: WEF GCR 2010-11, UN Population Division
KYRGYZ REPUBLIC - Labor is as efficient as the average but, - Share of young people remains fixed but number increases.
2.4 2.2 1.9 2.1 2.3 2.4 2.4 2.3 2.3
3.6 3.9 4.4 4.6 4.7 4.9 4.9 5.0 5.2
1.0 1.3 1.5 1.6 1.7 1.9 2.3 2.6 2.7
0
2
4
6
8
10
12
2010 2015 2020 2025 2030 2035 2040 2045 2050
Po
pu
lati
on
by
Age
Gro
up
(m
illio
ns)
50-64
25-49
15-24
23% 19% 16% 16% 18% 17% 16% 15% 15%
33% 35% 36% 36% 35% 35% 34% 33% 33%
9% 12% 13% 13% 12% 13% 16% 18% 17%
0%
10%
20%
30%
40%
50%
60%
70%
2010 2015 2020 2025 2030 2035 2040 2045 2050
Shar
e o
f A
ge G
rou
ps
in T
ota
l
50-64
25-49
15-24
Serdar SAYAN
Relevance to Others
Sources: WEF GCR 2010-11, UN Population Division
MOROCCO - Labor market efficiency is a constraint, - Share of young people remains fixed but number increases slightly.
13 12 12 11 12 11 11 10 9
22 24 26 27 28 28 27 27 26
7 9 10 11 12 14 15 16 16
0
10
20
30
40
50
60
2010 2015 2020 2025 2030 2035 2040 2045 2050
Po
pu
lati
on
by
Age
Gro
up
s (m
illio
ns)
50-64
25-49
15-24
20% 18% 16% 16% 15% 15% 14% 13% 12%
35% 36% 37% 37% 37% 36% 35% 34% 34%
12% 13% 14% 15% 16% 18% 19% 20% 20%
0%
10%
20%
30%
40%
50%
60%
70%
80%
2010 2015 2020 2025 2030 2035 2040 2045 2050
Shar
e o
f A
ge G
rou
ps
in T
ota
l
50-64
25-49
15-24
Serdar SAYAN
Relevance to Others
Sources: Sayre and Daoud
PALESTINE
Unemployment Rate for Men Unemployment Rate for Women
Serdar SAYAN
Relevance to Others
Sources: WEF GCR 2010-11, UN Population Division
SENEGAL
5 6 7 7 8 9 9 10 10 7 8 10
11 13
14 16 18 20
1 2
2 3
3 4
5 6
7
0
5
10
15
20
25
30
35
40
2010 2015 2020 2025 2030 2035 2040 2045 2050
Po
pu
lati
on
by
Age
Gro
up
s (m
illio
ns)
50-64
25-49
15-24
21% 20% 20% 21% 21% 20% 19% 19% 18%
27% 29% 30% 31% 32% 33% 33% 34% 35%
6% 6% 7% 7% 8% 9% 10% 11% 11%
0%
10%
20%
30%
40%
50%
60%
70%
2010 2015 2020 2025 2030 2035 2040 2045 2050
Shar
e o
f A
ge G
rou
ps
in T
ota
l
50-64
25-49
15-24
- Labor is as efficient as the average but, - Young population’s share and number increases.
Serdar SAYAN
Relevance to Others
Sources: WEF GCR 2010-11, UN Population Division
TUNISIA
4.0 3.5 3.2 3.3 3.4 3.4 3.2 2.9 2.7
8.0 8.8 9.2 9.2 8.9 8.6 8.3 8.1 8.0
2.6 3.1 3.5 3.9 4.5 5.0 5.5 5.6 5.2
0
2
4
6
8
10
12
14
16
18
2010 2015 2020 2025 2030 2035 2040 2045 2050
Po
pu
lati
on
by
Age
Gro
up
s (m
illio
ns)
50-64
25-49
15-24
19% 16% 14% 14% 14% 14% 13% 12% 11%
38% 40% 40% 39% 37% 35% 33% 32% 32%
13% 14% 15% 17% 18% 20% 22% 22% 21%
0%
10%
20%
30%
40%
50%
60%
70%
80%
2010 2015 2020 2025 2030 2035 2040 2045 2050
Shar
e o
f A
ge G
rou
ps
in T
ota
l
50-64
25-49
15-24
- Labor is as efficient as the average but, - Share of young people decreases as number increases and then decreases.
Serdar SAYAN
Conclusions
• Skills development for economic development
• Unskilled workforce as a major problem in Turkey
• Important role for the private sector
• UMEM Skills’10 Project
• Relevance to Other Countries
• Conclusions
Serdar SAYAN
Conclusions
• Skills development is essential for economic development • Skills development can be seen as a next step for
Millennium Development Goals ‒ Improving human capital beyond primary education ‒ Creating equal opportunity for men and women
• Private sector should have a key role in the skills development process
• Skills’10 Project seems as a successful start for Public-Private Sector Partnership (PPP) in vocational education and training
• Empowering local stakeholders, while forcing them to work together is a key success factor
Serdar SAYAN