TECHNICAL AND VOCATIONAL EDUCATION AND ......EXECUTIVE SUMMARY The aim of this report is to contribute to a better understanding of the current status of technical and vocational education

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TECHNICAL AND VOCATIONALEDUCATION AND TRAININGAND THE LABOUR MARKETIN ISRAEL

THE EUROPEAN TRAINING FOUNDATION IS THEEUROPEAN UNION’S CENTRE OF EXPERTISESUPPORTING VOCATIONAL EDUCATION AND TRAININGREFORM IN THIRD COUNTRIES IN THE CONTEXT OFTHE EU EXTERNAL RELATIONS PROGRAMMES

HOW TO CONTACT US

Further information on our activities, calls for

tender and job opportunities can be found on

our web site: www.etf.europa.eu

For any additional information please contact:

External Communication Unit

European Training Foundation

Villa Gualino

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I – 10133 Torino

T +39 011 630 2222

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E [email protected]


The contents of this publication are the sole responsibility of the author and do not necessarily reflect

the views of the European Training Foundation or of any institution of the European Union.

Dr Eli Eisenberg

European Training Foundation

2006

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CONTENTS

EXECUTIVE SUMMARY 5

1. INTRODUCTION 9

2. OVERVIEW OF ISRAEL AND ITS PUBLIC VET SYSTEMS 11

3. CURRENT SITUATION AND FUTURE TRENDS IN HUMAN RESOURCES

DEVELOPMENT AND THE LABOUR MARKET 15

3.1 Economic context 15

3.2 Political and social context 20

3.3 Key features of the labour market 23

3.4 Summary of main findings 30

4. WHY TVET IS IMPORTANT FOR ISRAEL’S SOCIO-ECONOMIC DEVELOPMENT 33

4.1 The structure of Israeli TVET 33

4.2 What is being done to reform Israeli TVET 36

4.3 The role of lifelong learning 40

4.4 Summary of main findings 42

5. LITTLE INVESTMENT BY BILATERAL AND INTERNATIONAL DONORS IN

HUMAN RESOURCES DEVELOPMENT 45

6. CHALLENGES FOR TVET IN ISRAEL 47

6.1 Issues and priorities for HRD 47

6.2 Recommendations 50

ACRONYMS 55

BIBLIOGRAPHY 57

3

EXECUTIVE SUMMARY

The aim of this report is to contribute to abetter understanding of the current statusof technical and vocational education andtraining (TVET) for human resourcesdevelopment (HRD) and the labour marketin Israel. It describes the role andinvolvement of the various sectors in HRDand identifies the barriers, challenges,priorities, initiatives and programmes topromote HRD in Israel.

In 2004 the population of the state of Israelinhabited an area of 22,145 km2 andtotalled 6,869,500. This number comprised76% Jews, 16% Muslims, 2% Christians,1.6% Druze and 3.9% unclassified. Theaverage age was 28.3 years with 28%between 0 and 14 and 16% between 15and 24. The GDP per capita wasUS$16,400. The average net monthlyincome per household was US$2,178 withan average monthly wage of US$1,399.The employment rate was 70% amongthose aged 25–54, the unemployment ratewas around 10% and the percentage offamilies living below the poverty line was19%.

The Israeli economy has moved from anagriculturally based, largely collectiveeconomy to one that is technologicallyadvanced, with the information andcommunication technologies’ (ICT) industryacting as the frontrunner. Thegovernment’s main economic policiesconsist of privatising state-ownedcompanies, minimising the number offoreign workers, reducing the size of thepublic sector and encouraging people tomove from dependence on welfare intoemployment.

Some of the key findings are listed below.

1. The forecasts of demographic trends inIsrael indicate an absolute increase inthe proportion of Arab andultra-orthodox Jewish populations. Thisshows a need for greater investment inTVET for HRD in order to encouragethese groups into gainful employmentboth for their own sakes and as a boostto the productive workforce of theeconomy.

2. Poverty is steadily increasing in Israel.The number of low-income workers hasrisen to 18%.

3. Israel has lower labour forceparticipation rates (62.2%), loweremployment rates (55.7%) and higherunemployment (10.5%) than the US orOECD countries.

Israel has adopted various approaches totackling unemployment, most of these arefocused on the demand for work whileothers are designed to boost the supply ofjobs. One of the most significantprogrammes is the Mehalev nationalprogramme, which is based on theWisconsin model. Its main aims are toreduce the number of those on incomesupport and to increase the participants’motivation to find long-term jobs. Israelsees the development of small andmedium-sized enterprises (SMEs) asanother significant lever for the growth ofits economy. There are already some400,000 SMEs in Israel, comprising 98% ofall businesses and employing 1.2 millionpeople. Between them, they account for60% of all employment in the businesssector. Through the Israel Small andMedium-sized Enterprises Authority and itsCentres for the Promotion ofEntrepreneurship (CPEs), the Ministry ofIndustry, Trade and Labour (MOI) offers

5

advanced programmes and HRD servicesaimed at improving management skills,promoting innovation in SMEs andfacilitating access to sources of funding.

Technical and vocational education andtraining is the responsibility of twogovernment ministries: the Ministry ofEducation, Culture and Sport (MOE)through its department for science andtechnology, and the MOI through itsManpower Training and DevelopmentBureau (MTDB). There are two parallelprocesses of TVET under the supervisionof the two ministries: for young peopleunder the age of 18 who follow technicaltracks in comprehensive schools and inindustrial schools; and for adults who followcourses in colleges for technicians andpractical engineers. One of the moresignificant challenges facing Israel is howto develop a coordinated policy of TVET forHRD which can benefit from theexperience and expertise of bothministries.

The MOE has established two importantcommittees: the Dovrat Committee, anational task force for the advancement ofeducation in Israel; and the PriessCommittee, in charge of reviewing technicaltracks and subjects. They published theirfinal reports and recommendations at theend of 2004. The implementation of theDovrat report’s recommendations has comeup against difficulties, especially in gainingacceptance from educational bodies and theteachers’ unions. In order to implement thePreiss Committee recommendations, morefunding will be needed for the developmentof technical education, including researchand development curriculum, in-servicetraining of teachers and teacher trainers andthe renewal of equipment.

The current policy aims of the MOE fortechnical education in comprehensive highschools are as follows:

� developing and implementing a strongerscientific infrastructure for technicaltracks and subjects;

� developing curricula with standards thatare in accordance with the new rules ofeligibility for full matriculation currentlybeing determined at the MOE;

� implementing a five-year educationalprogramme for the Arab population toreduce gaps in attainment and topromote the participation of femalestudents;

� encouraging more female students tostudy science and technology subjects;

� regularly improving the skills andcapacities of technical teachers througha broad spectrum of in-service trainingcourses and study days.

The updated HRD policy for adults of theMTDB of the MOI emphasises the followingaims:

� TVET and HRD should be much morefocused on responding to the needs oftrade and industry rather than onservice industries.

� MTDB should provide cheaper andshorter courses that are partlyon-the-job training.

� MTDB should deal with the formulationand control of policy for vocationaltraining, while the actual implementationof TVET should be carried out byprivate or public companies andeducational and training networks.

MAIN RECOMMENDATIONS

1. TVET for HRD should include basiccompetence in four subjects: mothertongue, English, mathematics and ICT.It should also include lifelong learningskills, with a special emphasis onpersonal and interpersonal skills as wellas values and ethics. Some examplesof these skills and values are the abilityto listen and express oneself orally andin writing, the ability to learn as anindividual and as part of a team, theability to meet deadlines, reliability,integrity, responsibility andaccountability as well as a positive andcommitted attitude towards work ingeneral and towards one’s place ofemployment in particular.

2. Targeted resources should be investedin TVET programmes with an emphasison promoting affirmative action. This isneeded in order to help those groupscurrently at a disadvantage orunder-represented in the labour market

6

TECHNICAL AND VOCATIONAL EDUCATION AND TRAININGAND THE LABOUR MARKET IN ISRAEL

such as minorities, new immigrants,women, single-parent families, theunemployed, people on benefits andresidents of development towns. Theyshould be systematically encouraged totake advantage of the TVETprogrammes which have been designedfor their benefit. Only long-terminvestments and multi-year projects andprogrammes can bring about thechanges needed to ensure that Israelbecomes a more equal society.

3. A council or a national authority shouldbe set up to forecast HRD needs inIsrael. Such a council should function asa legally defined statutory body, withstructured methods and an adequatebudget for ongoing HRD needs analysisand forecasting. This report alsorecommends establishing a mechanismfor regular updating of TVET curricula.

4. The quality of the teachers and theteacher trainers in TVET is the mostimportant ingredient in producing skilled

and educated workers. The governmentmust recognise the value of technicalteaching as a profession, and shouldexpress this recognition via higher payand bonuses for outstandingachievements. At the same time, it isrecommended that the prerequisites forpeople wishing to enter technicalpre-service teacher training be madesignificantly higher than is currently thecase.

5. Just as every year the government setsgoals for inflation and budgetarydeficits, it should also set itself annualgoals for lowering levels ofunemployment and poverty and forbridging social gaps in Israel. Ifmeasurable criteria are used and theseare linked to specific work planscomplete with schedules and adequatebudgets, this could convey a messageof commitment and responsibility to allthe different groups and communitiesthat make up Israeli society.

7

EXECUTIVE SUMMARY

1. INTRODUCTION

The main objective of this country report isto present a clear picture of the currentstate-of-play in Israel’s national HRDsystems and to highlight what are the mainissues and challenges that should beaddressed.

The report describes the HRD and thelabour market of Israel. It focuses on HRDpolicy within the general educationsystem, technical education, highereducation and especially vocationaltraining in Israel. It covers the roles andinvolvement of the various actors in HRD:the government, the general public,NGOs, organisational councils and privatecompanies. It identifies the futurechallenges and priorities and whichinitiatives are currently in place to promoteHRD and TVET.

The report also touches on economicdevelopments that are likely to influenceHRD and the labour market. These include:

� the shrinking of the government and thepublic sector;

� privatisation processes;� employment policy for foreign workers;

� policy for small and mediumbusinesses;

� initiatives to boost the participation ofgroups currently under-represented inthe workforce such as women,single-parent families, immigrants andminorities;

� changes in the structure of variousbranches of the economy andemployment;

� demographic changes.

The report attempts to link developments inTVET to the wider political and socialcontext such as the incidence of poverty,unemployment and employment in thedifferent parts of society as well asattempts to reduce inequality in terms ofaccess to and participation in educationand vocational training.

The report describes the structures ofTVET. It covers recent and ongoingreforms and HRD programmes andprojects with an assessment of what stageof implementation they have reached andwhat impact they are having on the labourmarket. Similarly, the difficulties andconstraints are identified and examined.

9

1

Finally, the report draws severalconclusions and makes variousrecommendations on how to promote ahigher level of HRD and a more productiveworkforce that can in turn make itscontribution to a more advanced and equalsociety [1].

The methodology of this project hasinvolved several stages:

� planning the project and the structure ofthe report by the ETF country managerfor Israel and the EU expert assigned bythe ETF to the project;

� gathering and compiling preparatoryinformation by the local expert on thesocio-economic situation of the countryincluding HRD, the labour market andthe TVET system;

� organising and attending meetings withthe ETF country manager, the EUexpert, the local expert andrepresentatives of senior managementfrom the MOE and the MOI as well asfrom other organisations and NGOsinvolved in HRD and the labour market.

The sources of information used inpreparing the report are varied and include:books, articles, surveys and reports inHebrew and English; data from the CentralBureau of Statistics, government officesand independent research institutes; visitsand interviews with experts and peopleworking in HRD and in particular VET; aswell as the latest information found on theinternet. However it is worth noting thatmany of the published surveys and reportsare based on data that are two or threeyears old, while the social and economicreality in the world in general and in Israelin particular are changing at anever-increasing rate. Suffice it to say thatthe recent disengagement from the GazaStrip and settlements in the West Bank,which has meant the relocation of some10,000 people, calls for rapidreorganisation in terms of housing,employment, education and training.Current developments in the political arenaplace certain limitations on the ability of theauthor to analyse the findings of this report,especially with regard to conclusions andrecommendations for the future.

10


2. OVERVIEW OF ISRAEL

AND ITS PUBLIC VET

SYSTEMS

Data from the Central Bureau of Statisticsshow the following:

� In 2004 the population of the state ofIsrael inhabited an area of 22,145 km2

(excluding the West Bank and GazaStrip) and numbered 6,869,500.

� This number was comprised of:5,237,600 Jews (76%), 1,107,400Muslims (16%), 144,300 Christians(2%), 113,000 Druze (1.6%) and264,600 not classified by religion(3.9%).

� This comprised 3,392,500 males and3,477,000 females.

� The average age was 28.3 years with1,947,500 (28%) between 0 and 14;1,124,400 (16%) between 15 and 24;2,594,400 (38%) between 25 and 54;and the rest 1,203,200 (18%) between55 and 65+.

� The total number of immigrants from1990 onwards was 1,010,900. Of these,916,100 came from former Soviet Unioncountries and 69,400 from Ethiopia.

� The percentage of the urban populationwas 91.4% while 8.6% lived in ruralareas. The average number of people ina family in the general population was3.74. Of this number, there were anaverage of 3.54 in Jewish families and4.91 in Arab families.

� Some 52% of the population lived in thecentre of the country, 30% in the northand 18% in the south [2].

Data from the Taub Centre for Social PolicyStudies in Israel [3] show that in 2004:

� the GDP per capita was US$16,400;� foreign trade constituted 37% of GDP,

while government expenditureaccounted for 30% of GDP;

� government expenditure was brokendown as follows: 38% on socialservices; 17% on defence; 31% on debtrepayment; and 14% for otherpurposes;

� national expenditure on education was8.5% of GDP;

11

2

� median years of schooling:� in 1961: total, 8.0; Jews, 8.4; Arabs,

1.2;� in 1980: total, 10.7; Jews, 11.1;

Arabs, 7.5;� in 2003: total, 12.4; Jews, 12.6;

Arabs, 11.1;� school enrolment rates in the age group

14–17 were as follows: Jews, 98.1%;Arabs, 88.7%;

� national expenditure on health was8.5% of GDP, with 3.6 doctors per1,000 heads of population, 6.1 hospitalbeds per 1,000 heads of population and32.1 geriatric beds per 1,000 heads ofthe population aged 65+;

� life expectancy at birth was 77 for menand 81 for women;

� the average net monthly income perhousehold was US$2,178, with anaverage monthly wage of US$1,399;

� the percentage of families living belowthe poverty line was 19%;

� the employment rate of the populationaged 15+ was 60% for men and 50%for women;

� the employment rate was 70% amongpeople aged 25–54 and theunemployment rate was around 10%;

� expenditure on research anddevelopment accounted for 4.5% ofGDP;

� ICT accounted for 8.3% of jobs in thebusiness sector.

Responsibility for TVET is shared betweenthe MOE and the MOI.

MINISTRY OF EDUCATION,CULTURE AND SPORT

During the 2003/04 school year, 2,068,726students studied in institutions under thesupervision of the MOE [4], as follows:

� 390,000 in kindergartens and 775,587in primary schools (grades 1–6);

� 254,005 in junior high schools (grades7–9);

� 347,662 in senior high schools (grades10–12) of which:� 208,463 in the academic track;� 135,697 in technical and vocational

tracks;� 3,133 in the agricultural track;

� 369 in other tracks;� 251,972 students were in higher

education and 49,500 in otherinstitutions.

Within the MOE, the Science andTechnology Administration is responsiblefor the teaching and studying of science,technical subjects and ICT inkindergartens, primary schools, junior highschools, high schools and colleges fortechnicians and practical engineers (priorto compulsory service in the IsraeliDefence Force or IDF). Technical tracks inhigh schools cover a wide range ofsubjects including electronics andcomputer engineering, softwareengineering, mechanical engineering,biotechnology, computer-aidedmanufacturing systems, control and energysystems, industrial design, building andarchitectural engineering, industrialengineering and management, tourism andhealth systems.

The Science and TechnologyAdministration is in charge of developingcurricula, teaching and learning materialsand aids, teacher training courses,standards for equipping laboratories andworkshops and system-wide projects in thesubjects of science, technology and ICTfrom kindergarten to junior (pre-military)colleges for technicians and practicalengineers.

MINISTRY OF INDUSTRY,TRADE AND LABOUR

The MOI is responsible for developing andimplementing policy, strategies andprogrammes for training vocational andtechnical manpower for the labour market.It oversees two main streams: youthvocational (before military service); andadult vocational (after military service) [5].

In the area of youth vocational trainingthere are three sub-systems with about15,000 students between them aged 14–18in some 70 institutions [4].

1. Industrial schools, which operate incooperation with large industrialorganisations and companies including

12


the IDF, hotels and large vehicle repairshops, offer places to some 13,000students from grade 9 or 10 to grade 12studying academic subjects (14–16hours per week), theoretical vocationalsubjects (8–9 hours per week), practicalwork (22–30 hours per week) anddedicating three hours per week toeducational and social issues. Thestudents complete work placements inenterprise and receive a salaryaccording to the hours worked and theirvocational seniority.

2. Apprenticeship schools, withapproximately 1,800 students. Withinthis sub-system there are a number ofsmall factories that jointly operate astudy workshop in a regional centre – aschool for apprentices. Theapprentices work in the factories andstudy between one and three days aweek.

3. Work groups and courses foradolescents aged 15–17.5 who are notstudying or employed elsewhere,offered in collaboration with large publicinstitutions such as hospitals, the IDFand technical education and trainingnetworks. In this sub-system some 700students study at apprenticeshipschools between one and three days aweek over a period of one to threeyears.

Vocational training tracks for youthinclude building, computing, hairdressingand beauty care, administration(including secretariat and bookkeeping),care workers for day care centres,metalwork and machinery, vehiclemechanics and electricity, hospitality,electricity and electronics, textiles, woodand furniture technology and dentaltechnicians.

In the adult vocational system there are fivemain sub-systems training some 85,000students on hundreds of courses innumerous institutes, training centres,technical and vocational education andtraining networks, factories and publicsector organisations.

1. Vocational training courses at thevocational centres are spread aroundthe country. They offer courses indifferent fields such asdraughtsmanship, building, computing,printing photography and production,beauty care, maritime and shipping,administration, childcare, metalwork andmachinery, transport and vehicles,hospitality, electricity and electronics aswell as specific preparatory courses.

2. Training courses for handicappedpeople and their rehabilitation at work:this sub-system offers assessment andguidance on which training courses areappropriate for the participants and canhelp them find their place in the labourmarket according to their abilities anddegree of disability.

3. Training technicians and practicalengineers under the supervision of theNational Institute for Technical Training(see chapter 4 for more information onthis important organisation). Some25,000 students are currently enrolled in90 colleges.

4. Professional retraining for people withan academic degree (such as newimmigrants), as well as retraining forpeople leaving the security forces forcivilian employment.

5. In-house training for employee jobpromotion and also for unemployedpeople who are guaranteed a job at theenterprise in question after completingtheir training.

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2. OVERVIEW OF ISRAEL AND ITS PUBLIC VET SYSTEMS

Israeli education and TVET system

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3. CURRENT SITUATION AND

FUTURE TRENDS IN HUMAN

RESOURCES DEVELOPMENT

AND THE LABOUR MARKET

3.1 ECONOMIC CONTEXT

3.1.1 TRENDS IN THESTRUCTURE OF ISRAELIINDUSTRY

In the publication The Israeli economy at a

glance 2004 [6], the MOI states that theIsraeli economy has moved from anagriculturally based, largely collectiveeconomic system to a technologicallyadvanced economy in a liberalisedmarketplace.

Over the past 20 years, this transformationhas been made possible by thedevelopment of innovative

knowledge-based industries, particularly inresearch and development, and themanufacture of hi-technology.

Government policies encouragingindustrial research and development,capital investment, currency liberalisationand privatisation, as well as investment inhuman resources have allowedcompanies to develop and compete in theworld marketplace, often at the cuttingedge.

The following data which compares thecomposition of industrial exports in 2003 tothat of 1980 (excluding diamonds) wouldseem to bear this out.

15

3

A breakdown of industrial production bysector provides the following picture.

Industrial production

by sector

% of

total

Electrical, electronics andtransport

24.0

Chemicals, rubber and plastics 20.7

Food and beverages 14.7

Metal and machinery 12.3

Diamonds 10.5

Light industries (wood, paper,printing, furniture etc.) andmiscellaneous

8.9

Mining and minerals 4.6

Textiles, clothing and leather 4.3

Total 100.0

These figures pertaining to the Israelieconomy are very useful for suggesting thekind of workforce needed for an industrywhich is based on science andsophisticated technologies at all levels.This need for engineers, practicalengineers, technicians, and other positionsin research and development, assemblyand maintenance workers, and sales andmarketing staff will be discussed in detail inchapter 4.

Figures on civilian research anddevelopment expenditure as a percentageof GDP [6] in 2000 and 2001 show that at4.7%, Israel is one of the highest spendersin the world. In other countries the figuresare as follows: Sweden, 4.1%; Finland,3.4%; Japan, 2.9%; Germany, 2.4%; USA,2.3%; Denmark, 2.1%; France, 1.9%; andIreland, 1.1%.

These findings are a reflection of Israel’spolicy of investing in research anddevelopment in innovative products. Itsstrategy is to identify niche markets in othercountries and to develop products andprocesses for them which can offersophisticated functional added value at acompetitive price. Developing a highlyeducated workforce that is skilled inscience, engineering, marketing and salesis therefore a high priority for Israel.

As we can see from the following data, ICTis the leading industry in Israel’s high-techsector [6]:

� ICT products as a percentage of totalbusiness sector product, 2000: Israel,19.8%; Ireland, 16.1%; Finland, 15.8%;Korea, 9.9%; USA, 9%; UnitedKingdom, 8.2%; Netherlands, 8.1%;Japan, 8%; Italy, 6.5%; Germany, 6%;

� ICT exports as a percentage of totalgoods exports, 2001: Ireland, 40%;Korea, 31%; Israel, 27%; Japan, 24%;Netherlands, 23%; Finland, 17%; USA,17%; United Kingdom, 15%.

This data has significant implications forscience and technology human resourcesin Israel in the field of ICT, especially if weassume that this area will continue todevelop in the future (though probably notat the same rate as at the end of 2000).There will clearly be a need for moreeducation and training for the ICT branchof the labour market.

At the same time, the willingness of riskcapital funds to invest in the future potentialof hi-tech and ICT in particular, can beseen from the following [6]:

16


Industrial exports

by sector

1980 2003

US$ million % US$ million %

Electrical and electronics 490 15 7,745 40

Chemicals, rubber andplastics

851 25 5,874 30

Metal and machinery 761 23 2,798 14

Textiles, clothing and leather 473 14 993 5

Others 292 9 911 5

Food and beverages 298 9 510 3

Mining and quarrying 175 5 619 3

Total 3,340 100 19,450 100

� levels of venture capital investment inhigh-tech sectors (ICT andhealth/biotechnology) as a percentageof GDP, 1999–2002: Israel, 0.6; USA,0.4; Canada, 0.3; Sweden, 0.25; UnitedKingdom, 0.2; France, Ireland, Norwayand Denmark, 0.1; Japan, 0.04.

3.1.2 IMPLICATIONS OF THE2005 BUDGET FOR THEISRAELI LABOUR MARKET

In order to determine the government’sbroad aims for Israel’s economic policies,we will examine the country’s budget for2005 (government decisions of 15 August2004) [7]. Only those measures which arelikely to affect HRD and the Israeli labourmarket are listed below:

1. increasing flexibility in the labour marketby amending the law pertaining to theemployment of workers by HRcontractors, and postponing itsenforcement to the beginning of 2008;

2. aiming to create more jobs and increasethe rate of participation in the labourforce by reducing the amount of nationalinsurance paid by employers for theirworkers;

3. encouraging more Israelis into jobsinstead of foreign workers by: allowing aforeign worker to be hired only if thatperson has special expertise; ensuringa significant but gradual rise in theirmonthly wages (twice the averagemarket wage); allocating at least 40% ofthe budget for professional training tocourses in those professions thatcurrently employ a large number offoreign workers; allocating 40 millionshekels (about US$8 million) to fundmoves to encourage Israeli workers towork in the building sector; andorganising the departure of some70,000 foreign workers who reside inIsrael illegally;

4. reducing the bill for wages in the publicsector by: reducing salaries for directorsgeneral of government ministries andthose officials whose salaries are linkedto theirs; reducing the salaries ofworkers on personal contracts;

5. reducing the number of peopleemployed by the public sector (at an

average rate of 3% for 2005 and afurther 2% in the budgets for 2006 and2007), by reducing the number of staffin government offices, the NationalInsurance Office, employment agenciesand the local authorities; reducing theamount of overtime worked bygovernment employees; offeringfinancial rewards to government officesthat manage to reduce staff throughearly retirement comprising 75% of thecost of the annual salary expenses thussaved.

These government measures taken fromthe 2005 budget indicate a strong will toreduce the number of foreign workers whileencouraging Israelis to take on these jobs.At the same time, steps are being taken toreduce the size of the public sector.

3.1.3 PRIVATISATION OFSTATE-OWNED COMPANIES

One of the most consistent features ofIsraeli economic policy in recent years hasbeen the process of privatisation.

‘Privatisation procedures in Israel areregulated by the State-owned CompaniesLaw, under which the State-ownedCompanies Authority operates. The currentpolicy of the government is to acceleratethe process of privatisation, which is clearlyreflected in recent developments’[6]:

1. the privatisation of Israeli seaports;2. the privatisation of Bezeq – The Israeli

Telecommunication Corp Ltd;3. the privatisation of Zim Israel Navigation

Co Ltd;4. restructuring Israel Electric Corporation

Ltd;5. restructuring Mekorot Water Co Ltd.

This policy of privatising state-ownedcompanies is expected to produce a moreflexible workforce in Israel, improveproductivity and the quality of the servicesthey provide and introduce morecompetition between companies. However,there is a risk that this policy might lead tolower levels of maintenance and safety inthe products and services these companiesprovide, especially in the transport sector.

17

3. CURRENT SITUATION AND FUTURE TRENDS IN HUMAN RESOURCESDEVELOPMENT AND THE LABOUR MARKET

3.1.4 SMALL ANDMEDIUM-SIZED ENTERPRISESAND JOB CREATION

Several decades ago, prevailing economicwisdom tended to prefer larger companiesto smaller ones and saw great advantagein size, expertise, accumulated years ofexperience, financial solidity and the abilityto negotiate both with suppliers and withclients. However, already in the 1970s,people were beginning to see that smalland medium-sized enterprises (SMEs)have many advantages of their own suchas: less bureaucracy, more flexibility, rapidand dynamic decision-making, closenessto the market and personal contact with theclient.

And indeed, ‘small and medium businessesare considered, according to acceptedwisdom in both developed and developingcountries, as a key factor in economicgrowth and job creation. In Israel thegovernment sees these businesses as oneof the tools to make its economic goalsmore flexible and as one of thecornerstones of Israeli economy andsociety’[8]. Small businesses in Israel canoffer an appropriate solution toemployment problems in the periphery, forunder-represented groups such as women,immigrants, ultra-orthodox Jews andminorities, and as a response to thechanging needs of the Israeli economy. Atthe same time, we should remember thatsmall and medium businesses faceproblems of government bureaucracy, lackof managerial experience and difficulties ingetting access to capital.

A survey carried out on behalf of the IsraelSmall and Medium-sized EnterprisesAuthority produced the following findings[10]:

1. Some 98% of businesses in Israel areSMEs, they number around 400,000.

2. SMEs employ 1.2 million employees,accounting for 60% of all thoseemployed in the business sector.

3. Israel is in a reasonably good positionwith 60 small businesses per 1,000citizens, as opposed to between 40 and72 businesses per 1,000 people in otherWestern countries. For instance small

businesses in England and Finlandaccount for 98% of the total and theyemploy some 43% of those employed inthe business sector.

4. The Israeli SME sector has a total of175,000 employers, 140,000self-employed people and 85,000companies. Women account for 30% ofthe self-employed and 13% ofemployers and their participation hasbeen rising steadily in recent years.

5. The rate of growth of businesses hasbeen 2.6% per year, slightly higher thanthe rate of growth of the population at2.5% and that of the growth inproductivity at 3.6%.

6. In recent years in Israel, between40,000 and 47,000 new smallbusinesses are set up and between30,000 and 48,000 are shut down eachyear. These figures are not totallyaccurate however as some reflect achange in organisation or in ownership.The net addition of small businesses isactually 8,500 per year. The main areasof growth for small businesses are inbusiness services, health and wellbeingand personal services.

Four major problems for the developmentof SMEs have been identified [9]:

� the need to improve management skills;� difficulties in getting access to capital: a

very unequal distribution of credit by thebanks currently exists – 80% of loansare being granted to just 15% ofcustomers, leaving just 20% for theremaining 85% of customers, who aremostly SMEs;

� competition from cheap imports;� disadvantages when exporting due to

size.

In order to support SMEs, the MOI haslaunched sophisticated programmes aimedat improving management skills andpromoting innovation in businesses. Theseinclude:

1. The Business Tutoring Programmewhich helps SMEs with basicmanagement skills in areas such asfinance, marketing and humanresources. Eligible SMEs can be fromall sectors – industry, commerce,

18


tourism or agriculture. The SME pays25% of the costs for up to 150 hours oftutoring. Three experiencedorganisations were chosen to providethis tutoring – one each for the northern,central and southern regions of thecountry. They currently provide tutoringfor over 3,000 SMEs each year.

2. The Quality Management Programmewhich help firms to increase theirefficiency, by applying methodologiessuch as Kaizen or 6-Sigma. The tutorusually sets quantitative goals for thebusiness in order to improve. The SMEpays 50% of the costs (some US$400)for up to 400 hours of tutoring. Some100 SMEs participate in the programmeeach year.

3. The Marketing Tutoring Programmewhich helps SMEs that are starting toexport by providing information,know-how and contacts overseas. Anexpert in marketing tutors an SME inputting together a strategic plan andhelps with implementation. The SMEpays 50% of the cost for up to200 hours of tutoring.

4. During the last five years Israel hasdeveloped 24 methodologies to developinnovation and applies 11 of them on aregular basis. The programme is calledNITSOS (Sparks) for which the SMEpays 25% of the costs for up to150 hours of tutoring. Israeli success indeveloping tools to support innovation isshown by the fact that a plan for helpingan SME innovate can be drawn up overa period of just five days using a verystructured method. The methodologiesof innovation are designed to createnew ideas for new products, new andunique marketing methods and newstrategies for the SMEs.

5. One of the areas in which Israel isdeveloping programmes to promoteSMEs is in industrial design as it seesthis as a significant area for economicdevelopment for the 21st century. Onesuch programme is called Shatil whichmakes it easier for SMEs to take ongraduates with engineering degrees orpractical engineering diplomas inindustrial design as a means toimproving products. The programmepays the graduate a monthly stipendfrom the MOI for one year.

Israel saw the need to begin activelysupporting SMEs in the early 1990s whenhundreds of thousands of qualified newimmigrants arrived from the former SovietUnion needing jobs [8]. Together with theJoint, the Ministry of Absorption set upCentres for the Promotion ofEntrepreneurship (CPEs). Thegovernment later used the MOI to set upthe Small and Medium-sized EnterprisesAuthority that oversees these centres andhas set up new ones. Today there are 25such centres throughout the country. TheCPEs serve as a one-stop shop forbusiness owners or entrepreneurs wherethey can enjoy a variety of services atstate-subsidised prices or be referred toinstitutions and other relevant bodies. Themain HRD services provided by thesecentres are:

� professional counselling on how to setup a business, preparing a businessplan, management, marketing, financialadvice and human resources;

� training and courses on a variety ofsubjects such as entrepreneurship,public relations, how to set up an onlinebusiness, business English,e-commerce, time management andspecial courses for under-representedgroups such as ultra-orthodox women,the Arab population or single-parentfamilies;

� referral to special sources of funding forSMEs and help preparing a businessplan to apply for the funding;

� a wealth of information about theprogrammes, projects and otherinitiatives in Israel that can address theneeds of SMEs.

Access to finance is one of the mainbarriers for SMEs. The Israeli governmentis promoting a policy which makes workingcapital for investment more readilyavailable to SMEs. In September 2003 thegovernment revised an existing workingcapital fund and established a new statefund to encourage SMEs. Funds which canprovide help to SMEs include theIndependent Immigrant Fund (which helpsimmigrants during their first 10 years inIsrael), the Rashi Foundation, the KoretFund (for setting up new businesses), theMoshavim Fund (for businesses in small

19


rural communities) and the Fund forBusinesses in Distress [11]. However, thegreatest challenge for the government stillremains how to encourage banks toprovide suitable loans and credit to SMEson terms similar to those offered to largercompanies.

3.2 POLITICAL AND SOCIALCONTEXT

One of Israel’s major achievements since1990 has been successfully absorbing over1 million immigrants into an existingpopulation of about 5 million. This hascalled for the reorganisation of housing,employment, health and education serviceson a national scale. Israel still faces thesecurity challenge of how to cope with twointifadas and continuing terrorist attacksand, more recently, the disengagementfrom the Gaza Strip and the northern WestBank. Nevertheless the country is stillfacing what is perhaps the most importantchallenge to its continued existence andthat is how to develop a society of genuineequality and justice.

Employment is one of main areas in whichthe link between the economy and societyis the strongest. In this section we willexamine the erosion of earning power andthe growing incidence of poverty amongstfamilies of both employed and unemployedpeople. In a later section the report will alsoexamine the importance of the educationsystem for bridging social gaps in Israel.

Over the last five years, a look at per capitagovernment expenditure on social issuesreveals an accumulated decline of 15%. In2001 this expenditure stood at 21.3% ofGDP, but had dropped to about 20% in2003 and stood at only 18.3% in the 2005budget. This decline can also be seen inthe data on expenditure in absolute terms

at fixed prices – the total expenditure onsocial issues for 2005 stood at less than 97billion shekels as opposed to more than106 billion shekels in 2001 [12].

Since the 1985 stabilisation plan,successive Israeli governments havestriven to reduce the share of socialspending in the GDP and to redirect theseresources to its activities in the businesssector in order to promote sustainablegrowth. The weight of governmentspending within the GDP has droppedfrom 63% to somewhere in the region of50% [12]. Naturally, government spendingon welfare services has been cut back,but so have the services provided by thelocal authorities. As a result, welfareservices, especially in towns withsocio-economically deprived populations,have suffered. The welfare services mostaffected by the cuts are those which arenot protected by law.

The government’s policy of cutting back onspending such as welfare services while atthe same time encouraging people onbenefits to find work has not yet provenitself. Almost half of the poor that thewelfare system is supposed to help findthemselves in poverty because of the lowwages they receive, not because they donot work, and that is why it is so importantto invest in HRD for these specific groups[12].

3.2.1 DEMOGRAPHIC TRENDS,PRESSURES ANDFORECASTS

Demographic trends

The following data from the Central Bureauof Statistics [13] show the Israeli populationbroken down according to religion atvarious years, including future projections.

20


Population 1995 2000 2010 2015 2025

Total (in thousands) 5,612.3 6,365.8 7,542.3 8,922.2 9,261.7

Jews and others* (%) 82.1 81.4 78.9 77.7 74.9

Thereof: Jews (%) 80.6 77.8 74.5 73.0 70.3

Arab population (%) 19.3 18.6 21.1 22.3 25.0

*The ‘Jews and others’ category includes Jews, non-Arab Christians and those not classified by religion.

From the data we can see that the weightof the Jewish population in Israel coulddecline significantly in relation to the Arabpopulation. This forecast is significant forthe vision of Israel as a Jewish state. Forthis reason all Israeli governments havededicated significant efforts and resourcesin encouraging Jews to immigrate to Israelfrom their communities around the world.

Today there is real growth in the totalnumber of students, although in the Jewishpopulation – in state religious and secular,primary and secondary schools alike – thereis an absolute decrease in the number ofstudents. On the other hand, the proportionof students from the Arab and ultra-orthodoxJewish population is growing [12]. Lately wehave been witnessing a spurt in the growthof Arab student numbers for all age groups.This growth stems from two sources, naturalpopulation growth and also increased ratesof attendance in kindergartens andsecondary schools [4]. This finding is ofspecial importance for HRD in the Arabpopulation and its prospects of achievinggainful employment in the various branchesof the economy.

The increase in the ultra-orthodox sector ofthe education system is very marked; in2003 this group accounted for 24% of allprimary school children (and about 20% ofthe whole system). The data show that thevast majority of the increase stems fromnatural expansion (and not from a transferfrom the secular or state religious streams)[12]. Here the government must come upwith a policy promoting the study of coresubjects that are useful for them and fortheir families so that they can join theproductive workforce and contribute to theeconomy.

Foreign workers

Another important issue of demography forsuccessive Israeli governments in recentyears is the question of foreign workers. In astatement to the press, the Central Bureauof Statistics [14] announced that the numberof foreign workers at the end of 2004 wasestimated at some 188,000, of these 91,500had work permits while 96,500 did not.Some 96% of those with permits came from12 countries including Thailand, the

Philippines and Romania. Womenconstituted 28% of people entering Israelwith a permit. The number of salaried jobsfor workers from the West Bank and GazaStrip is about 11,000. The percentage offoreign workers in Israel is about 9%, a highfigure compared to European countriessuch as Austria and Germany. The averagewage of foreign workers in March 2005 wasNIS 4,103 (about US$912) as opposed tothe average wage in Israel of NIS 7,201(about US$1,600).

As a result of the intifada which preventedworkers from the West Bank and GazaStrip from entering Israel to work on aregular basis, the government increasedthe number of entry permits for foreignworkers, especially in construction,agriculture and food services. The use offoreign workers in the building trade hashad various knock-on effects. Theconvenient supply of cheap labour has heldback technological development, while atthe same time lessening the chances ofIsraeli workers without higher educationentering this kind of work. The relativelylow wages of the foreign workers offers agreat incentive to hire them. Since theseworkers are competing for jobs withunskilled Israelis, the wage for unskilledlabour in Israel, which was fairly low tobegin with, has also dropped [15]. Israel’sbudget report for 2005 [7] is one illustrationof the government’s tough and consistentpolicy of reducing the number of foreignworkers by imposing strict limitations ontheir employment, deporting illegal workersfrom Israel and encouraging Israeli workersto take on this kind of work.

Poverty in Israel

The poverty line in Israel is defined as alevel of income equal to 50% of medianavailable income. According to thisdefinition, any rise in the general incomemeans a rise in the poverty line. In 2001[16] the number of poor families reached319,000 comprising 1,169,000 people, ofwhom 531,000 were children. Thesefigures indicate a steady increase infamilies living in poverty compared to 2000and 1999. In 2001 the poverty index stoodat 38.5% before transfer and tax payments,at 26.9% after transfer and tax payments.

21


A close look at this data shows that poorfamilies are not necessarily those in whichfamily members are unemployed orreceiving state benefits such as the elderly,the sick or the disabled. In many poorfamilies, people are employed but theirjobs are too badly paid to help them out ofthe poverty trap.

The data show that poverty affects [12]:

� 9.6% of families where the head of thefamily is a salaried worker;

� 14.6% of families where the head of thefamily is self-employed;

� 18.6% of families with only onebreadwinner and 3% of families wherethere are two breadwinners.

At 18%, the proportion of low-incomeworkers in Israel has risen since the 1980sand is currently one of the highest in theOECD countries: this compares to14% inItaly, 11% in Britain and Ireland, 8% inAustria and 7% in Finland. The Israelieconomy is one of the few developedeconomies in which income gaps betweenskilled workers and those with highereducation and unskilled, poorly educatedworkers have actually increased since the1980s.

Government policy has aimed to wean fitpeople of working age off dependence onwelfare and into the job market by limitingtheir entitlement to unemployment benefitsand income support. This policy was basedon a series of assumptions such as [12]:

� the problem of poverty arises becausesome people choose not to work;

� it is possible to differentiate betweengroups of people who could work but donot and those who are unable to work;

� a lean government and low taxation willincrease economic growth;

� in a growing economy anyone who isforced to work will find appropriate workat a decent wage; hence poverty andeconomic gaps will be reduced.

These assumptions have not yet proventhemselves and what we are nowwitnessing is a steady increase in povertylevels in Israel. One of the most notable

developments is the increase in povertyamongst salaried workers where oneperson’s wages are not enough to keep afamily above the poverty line. In 2002 thisgroup accounted for 42% of all thosedesignated as poor. In 1990 they totalled34% of the poor.

Just as in other developed countries,economic growth in Israel is driven byadvanced technology such as ICT.Therefore, an increase in GDP per capitadoes not lead to a rise in relative wages forunskilled workers or to a reduction in wagedisparities. Moreover, the weakening of theunions in Israel and the decliningimportance of collective work and salaryagreements have made the income gapsworse. The strengthening of HRcontractors provides a third reason whywages have stayed so low for ‘weak’workers such as the unskilled, theuneducated, the very young or very old,women and immigrants.

Recently voices have been heard withinthe government that the country must tryharder to reduce these social andeconomic gaps and to reduce poverty.Consequently, as Zusman [12] points out,government policy must try and break theconnection between unskilled labour andpoverty. One of the tools that could beused to achieve this goal is a budgetsubsidy for low-wage workers, byinstigating negative income tax, amechanism that has proven successful in anumber of Western countries. Similarly, theregulation of the working conditions ofunskilled labourers employed by HRagencies should be tightened up, so thatthe status of these workers can beimproved through legal means andcollective agreements.

The trend in Israel for a increasing use ofadvanced technologies in industry and theneed to raise the wages of the unskilledworkers will require long-term investmentsin TVET for HRD. This is in order topromote workers to skilled jobs in moreadvanced branches of the economy thatpay better, and thus could help reduce theinequalities in Israeli society over the longterm.

22


3.3 KEY FEATURES OF THE LABOUR MARKET

3.3.1 STRUCTURE OF THE ISRAELI LABOUR MARKET

The table below shows the Israeli workforce broken down according to sector, populationgroup and gender. All data are supplied by the Central Bureau of Statistics [17].

23


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19

95

1,9

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0.7

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.59

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97

2,0

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.22

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9.7

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.03

.76

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2,1

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8.4

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5.7

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.43

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0.6

20

01

2,2

70

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7.5

0.9

5.2

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.36

.63

.31

2.3

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03

2,3

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.81

6.4

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5.6

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2.8

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–M

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6.4

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19

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.19

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99

5.5

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4.7

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20

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5.6

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4.8

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5.5

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3.2

0.3

As the table shows, those sectors thathave seen a rise in the numbers of jobs inrecent years are:

� business activities� health, welfare and social work� transport, storage and communication� wholesale and retail trade and repairs.

On the other hand, there has been a dropover time in the percentage of employees in:

� agriculture� manufacturing� building and civil engineering.

Part of this decline, in particular in thebuilding trade, is the result of theintroduction of new technologies.

The branches which employ more menthan women are, as expected:

� agriculture� manufacturing� building� transport, storage and communication.

There is a high percentage of femaleworkers in:

� education� health, welfare and social services� domestic services.

One of the reasons why women’s paytends to be lower than men’s is becausethey are employed as social workers,nurses and teachers, professions whichpay less than jobs in the hi-tech industries.There is therefore a need for a systematicand consistent policy of encouraging girlsto study and work in the fields of science,technology and engineering.

There are significant differences in theproportions of Jews and Arabs in differentkinds of work. Workers in building andagriculture tend to be Arabs rather thanJews, but in business activities, banking,insurance and finance, the proportion ofJews employed is higher than that ofArabs. HRD which specifically targets theArab population for these last sectors holdsthe key to better salaries and couldcontribute to creating a more cohesive andegalitarian society in Israel.

As mentioned in section 3.1.1,information-based hi-tech and ICTindustries constitute a growing part ofIsrael’s GDP and contribute 75% of allindustrial exports. This fact underlines theneed to equip people with scientific andengineering knowledge at all levels – fromthe assembly line workers, to thetechnicians and the marketers anddevelopment engineers.

3.3.2 LABOUR FORCEPARTICIPATION,EMPLOYMENT ANDUNEMPLOYMENT

Some 4,800,000 of the total Israelipopulation of 6,800,000 are of working age.Of these, about 2,600,000 work. This figureincludes: 2,400,000 Israelis, 180,000foreign workers (with and without workpermits) and some 20,000 Palestinianworkers (with and without work permits).There are also 150,000 soldiers on nationalservice and some 50,000 professionalsoldiers. The tables below compare Israeli2004 employment figures with those of theUS and other OECD countries [18].

As these tables show:

� Israel has a lower labour forceparticipation rate, lower employmentrate and higher unemployment thaneither the US or OECD Europe.

� Male participation in the labour marketis low in Israel compared to the US andOECD Europe.

However, Israeli worker work longer hoursand have a higher rate of productivity thantheir American or European counterparts.

The same report [18] provides the followingobservations and conclusions:

� Labour force participation rates riserapidly in line with the levels ofeducation for both men and women.

� When education levels are heldconstant, women’s participation ratesare lower than men’s among those withlower levels of educationalachievement, but equal those of men athigher levels.

24


� Labour force participation rates for menand women of all education levels dropsubstantially with age (especially after50).

� People with higher levels of educationretain higher labour market participationrates with age and are less likely toretire early.

� People with higher levels of educationare far less likely to be unemployed.

� When education levels are heldconstant – women’s unemploymentrates are markedly higher at lowereducation levels but equal those of menat higher education levels.

These findings point to the need formassive long-term investment in raising thelevel of education of women in Israel. Thisshould be done by means of affirmativeaction programmes in order to improve theeducational attainment of women and thusincrease their participation in the labourforce, reduce their risk of unemploymentand raise their retirement age.

The rates of unemployment from 1985 to2000 broken down by towns [12] show anaverage unemployment rate of 12% in thedevelopment towns as opposed to 7.5% inthe centre. A comparison of otherparameters such as length ofunemployment shows 27 weeks in theperiphery as opposed to 21 weeks in thecentre. By the same token, long-termunemployment (over 50 weeks) accountsfor 24% of the total in development townsas opposed to 15% in the centre.

There seem to be two main reasons forthese disparities. First, there aredifferences in the levels of education,experience and expertise of the workingpopulation. Second, there are differencesin the quality of industry and trade – forinstance the survival rate of factories in thecentre tends to be higher, while in theperiphery, problems with a particularindustrial enterprise can often affectemployment levels of an entire town.

25


Total – men and women (percentage)

Employment rateLabour force

participation rate

Unemployment

rate

Israel 55.7 62.2 10.5

US 71.2 75.4 5.6

OECD Europe 61.5 67.8 9.2

Men


participation rate

Unemployment

rate

Israel 60.4 66.8 9.6

US 77.2 81.9 5.7


Women


participation rate

Unemployment

rate

Israel 51.0 57.6 11.5

US 65.4 69.2 5.5


Other data show that Israel tends tocompensate people who are out of workrather than providing them with activeincentives to get back into jobs [12]:

� compensation for unemployment (asa percentage of GDP): Israel, 1.25;OECD, 1.1; EU, 1.45;

� spending on active labour marketmeasures: Israel, 0.3; OECD, 0.65;EU, 0.8.

Israel must invest much more in activelabour incentives as well as in developingand training human resources especially inthe development towns.

3.3.3 EMPLOYMENT POLICY,PROGRAMMES ANDCHALLENGES

Employment policy

The new world of work is characterised byglobalisation of both manpower andproducts and by a rapid rate of change inprofessions and the skills they require. Thegrowing reliance on new technologiesincreases the need for a skilled andeducated workforce and reduces the needfor unskilled workers. In Israel there areadditional factors contributing to the rise inunemployment such as a significantincrease in the number of foreign workersand growing levels of immigration from thecountries of the former Soviet Union andfrom Ethiopia.

Over the years, Israel has dealt withunemployment in several ways, most ofwhich addressed the demand for work,while some aimed to increase the supply ofjobs [12]. They include:

� subsidies for employers: subsidising thesalaries of new immigrants mainly in thefields of science and technology;

� grants to set up plants in developmentareas: aimed at reducing highunemployment rates in these areas;

� special projects of public works:activities such as building andmaintaining roads or the developmentor conservation of natural and

archaeological sites. The projects wererun mainly in the development towns oraimed at the Arab population, but due toinappropriate classification of workers,most were only partially successful;

� vocational training: one of the maintools for upgrading the supply of labour.In 2003 some 30,000 people studied invarious programmes of the MTDB in theMOI.

Recent years has seen criticism of thevocational training system on two counts:first that the range of courses do not fit theneeds of the labour market and thatteaching methods are out-of-date; secondthat past policy, which did not limit eligibilityfor unemployment benefit for peopleparticipating in vocational training, hadcreated a situation of ‘permanentstudents’[18].

Consequently, in July 2002 the governmentdecided to reduce the training budget andlimit the amount and length of entitlementto unemployment benefit during training.Today the courses are mainly for peoplereceiving income support andunemployment benefit who havecompleted less than 12 years of schooling.As a result of these changes, the numberof participants and courses declined byover 50% between 2001 and 2004.

The recommendations of this report can besummarised as follows.

1. The current period of relatively highunemployment should be seen as anopportunity to get large numbers ofunemployed people involved in trainingsince the loss of productivity is negligible.

2. Vocational training should be targetedat the low-skilled employed or theworking poor as well as the unemployedin order to provide better opportunitiesfor future employment and earnings.

3. Seeing as government training coursesare becoming shorter and more focusedon work, the government must ensurethey also provide some training inpersonal and interpersonal skills as wellas basic knowledge in English,mathematics and ICT as this will helpprepare people for a wider range offuture work opportunities.

26


4. All courses should include a period ofon-the-job training to provide traineeswith initial experience and put them incontact with possible employers.

Bar-Zuri [12] gives a number of proposalsfor tackling unemployment that havealready been tested in other countries andare now being considered for Israel. Theseinclude:

1. Reducing the length of the workingweek and redistributing work betweenemployees or introducing sabbaticalsfor employees. Integrating kinds ofunpaid employment such as voluntarywork and service jobs. Cutting out orstrictly limiting overtime can also helpadd more people to the labour force.These solutions have been tried inFrance and Holland. In Israel they couldhelp bring younger people into thelabour market while they are stillstudying and also help mothers join thelabour force. To the best of ourknowledge, the results in France havenot been successful. This mechanismincreases the aggregate benefits theemployer must pay while reducing theproductivity of the worker.

2. Incentives for employers. This proposalinvolves reducing the amount ofnational insurance payable byemployers as a way of encouragingthem to hire new workers. It has beenargued that this method does not focuson increasing the number of workersand that any reduction in nationalinsurance contributions will lead tocutbacks in welfare budgets andvocational training. It could also beargued that it is an incentive for the‘rich’ employer which does notnecessarily create jobs for the ‘poor’worker.

3. Incentives for employees. The idea ofoffering negative income tax foremployees, in other words, providing agovernment subsidy for low-wageworkers has already been mentioned.This could encourage people onbenefits to get back onto the job market,while people who are already workingfor low wages could improve theirstandard of living and get out of thepoverty trap.

4. Welfare to work programmes. Over thelast few decades the individualtreatment of the unemployed and thosereceiving income subsidies through thewelfare programmes has been steppedup, while the efforts to find them jobshave increased. There is no doubt thatthere exists a mutual dependencebetween the job market and the welfaresystem both from the point of view ofthe individual and of the state. The mostnotable programme currently operatingin Israel is called Mehalev (From theHeart) From Dependence on Welfare toEnsured Employability.

The Mehalev programme

Introduction and rationale

The Tamir Commission was set up in 2000to look into the continuing increase in thenumber of people on benefits, which ismuch higher than the increase in thepopulation. Its recommendations combinedmodels used in the US and Europe and inparticular proposed setting up experimentalemployment centres for a period of twoyears in four settlement regions aroundIsrael.

Subsequently, in 2003 the governmentdecided to implement the Mehalev

programme through the MOI, the Treasuryand the National Insurance Office. Theprogramme was launched on 1 August2005 and people receiving income supportare beginning to come to the centres to gethelp finding work.

Implementation process

The programme is designed to help some14,000 people receiving benefit (3,500households in each region) who will beobliged to report to the centre. Over time,the programme aims to reach the entireunemployed local population of workingage – people receiving unemploymentbenefits, income subsidies, mothers ofyoung children, child support recipients andthose on disability allowances.

The government put out a call for tender forthe Mehalev programme looking to appointtwo operating companies – one

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international and one Israeli – withexperience in running similar programmes.

The companies are only paid if the workersmanage to keep their jobs for more than sixmonths. It is estimated that the operatingcompanies can only earn a profit if over30% of the programme participantsmanage to find steady work. One of theweaknesses of the Wisconsin programmewas that it tended to create a revolvingdoor effect whereby people were recruitedfor temporary jobs and then fired. TheIsraeli Mehalev programme has taken noteof this problem and hopes to avoid makingsimilar mistakes by making long-termemployment one of the yardsticks of thesuccess of the initiative.

Characteristics

The employment test, taken by allparticipants, is another unique feature of theprogramme. It aims to build a profile of thejob candidate’s skills, abilities andpersonality. Based on this information, thecentre can develop a plan of action tailoredto the individual, including training injob-seeking skills, supplementing education,vocational training, job placements,assistance in getting to work andarrangements for childcare. Each person isgiven a personal plan of 30 to 40 hours aweek which includes all of the above, aswell as community service activities for aperiod of four months. As some of theunemployed have not worked for years, thecommunity work allows them to gainvaluable work experience and can increasetheir chances of finding work in other ways,such as by providing references from theircommunity employers. Through thiscommunity service in kindergartens,hospitals and retirement homes, participantscan acquire self-confidence, work habitsand may overcome emotional blocks asthey prepare for formal places of work.People who refuse to take part in theprogramme lose their right to incomesupport or unemployment benefit.

Criticism

The Mehalev programme has quite a fewopponents and has come in for criticism inthe media [20]. The committee of National

Insurance employees has threatened todisrupt the work of the centres due to theirdemands for more staff and higher salaries.The Employment Service sees theprogramme as a rival and has been criticalof the aggressive demands of the operatingcompanies in expecting employers andcompanies to create places of work.Non-profit associations that help the needyin the community, such as Yadid (Friend) orKol HaOved (The Worker’s Voice) whoworks with the Arab population, claim thatmany people on income support, who areobliged to participate in the programme, areaged 45 and over. They say that employersare unlikely to be willing to employ people ofthat age. Sometimes when unemployedpeople are called to an interview, they arenervous about attending. Many of them arenew immigrants such as women fromEthiopia and eastern parts of the formerSoviet Union, where they may never beenexpected to work outside the home. Somecritics of the initiative have pointed out thatthe success of the original Wisconsinprogramme was due to the fact that itcoincided with a period of growth in theAmerican economy, something which hasnot been the case in Israel in recent years.Others are concerned that manyparticipants could end up in temporary,part-time jobs with low pay that will notprovide steady jobs or a way out of thepoverty trap.

Success rates

During the two-year experimental phase ofthe programme, the government will investNIS 80 million (about US$18 million) inproviding support services for programmeparticipants. So far 70% to 80% of theunemployed asked to register at a Mehalev

centre have done so. This shows that themajority of the unemployed believe that theprogramme can help them. People want towork and find a meaning for their lives [19].

The main quantitative measure of successfor the programme is if it manages toreduce the number of people on benefit byat least 35%. However, it seems that aqualitative measure of success, which is noless important, would be to increasepeople’s motivations and expectations offinding and keeping a job. In October 2005,

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a comparative study of the modernisationof employment services in 28 countrieswas published [38]. The report provides anopportunity for sharing experience andexpertise between the EU and Israel andits Mehalev project. Israeli policy-makerswould do well to review the conclusions ofthis report.

Promoting SMEs and entrepreneurship

It has been claimed that the Wisconsinprogramme and others like it can onlysucceed when the market has plenty of jobvacancies due to a lack of suitably qualifiedworkers. Therefore a better way of tacklingunemployment would be to give theunemployed the knowledge and skills thatwill allow them to become self-employedand open their own businesses [21].

From the government’s point of view,investment in training people forself-employment is usually a one-off event,and as soon as they can stand on theirown two feet, the state does not have toinvest any more resources. On thecontrary, it begins to receive tax revenuesfrom them and their employees. As for theindividuals concerned, they can quicklybecome productive members of societyand regain a sense of worth and, if theirbusiness succeeds, they can often createnew jobs. The MOI’s Small BusinessDevelopment Centers (MATI) which wediscussed in section 3.1.4 could be set upin every town, especially in areas of highunemployment [21]. The real challenge isto find a director for the centre with thenecessary skills such as organisational andmanagement skills, economic andbusiness understanding especially in thearea of SMEs and the ability to workclosely with both government ministriesand the private sector.

The growth of SMEs in Israel is hinderedby two main difficulties. Registering a newbusiness is currently a complex,bureaucratic process which should bestreamlined as far as possible. A secondissue is the difficulties small businessesface in getting access to credit. This creditrestriction limits small businessespossibilities of growth, hinders thedevelopment of a productive workforce and

ultimately slows down the growth of theentire economy.

Challenges facing the Israeli labour

market

The Israeli Industrialists’ Association clearlyhighlights the difficulties and challengesfacing the Israeli labour force. TheIndustrialists’ Association, founded in 1921,is the sole organisation representing allsectors of industry in Israel: private, publicand the kibbutzes. Over 2,000 enterprises,employing about 340,000 workers, aremembers. The association is highlyinfluential in Israel’s economy intervening atthe macro level in legislation via its links withthe Knesset, at the implementation level viaits links with the government and theHistadrut (Labour Federation), and at themicro level by means of the variousenterprises that constitute its membership.The association’s HRD department dealswith issues such as permits for foreignworkers and helping immigrant scientistsfind work in industry. It also plays a role invocational training by analysing HRD needs,developing and implementing assessmentprogrammes and workshops on health andsafety and hygiene in the workplace as wellas projects for promoting HRD in industrialenterprises.

According to the association, a significantproblem stems from the fact thattechnology and engineering are seen inIsrael as essentially elite technology suchas the hi-tech computer industry. As aresult, there is very little vocational trainingfor traditional areas of industry such asmetals, machinery and building. Theforeign workforce is highly unstable,depending on the changing political andsecurity situation, and should be replacedby Israeli workers.

Another challenge is that personal andinterpersonal skills such as timemanagement, accountability and teamworkthat are so important for successfulemployment in industry, are not properlyaddressed by the vocational trainingsystem. Representatives of industry shouldhave much more systematic involvement inthe TVET committees that decide on thecurricula for the various vocations.

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Another difficulty is that TVET graduateslack knowledge and practical skills. Firstthere is a need to screen the unemployedand people receiving income support toselect only those who are really motivated tofind work. Second, training should include ahands-on component of at least one day aweek and a final project for technicians andpractical engineering students in theworkplace. The Industrialists’ Associationhas run several projects for training soldiersa few months prior to discharge from thearmy or at the beginning of national service.This is designed to provide them withpractical experience during military serviceso that they will be ready for jobs in industryon their release.

The public in general and young people inparticular still see industry as primarily forblue-collar workers and therefore do not seea career in industry as particularly desirable.The association runs a major programme forprimary and middle school pupils calledKnow Industry. The programme, which hasbeen underway for a number of years, aimsto introduce youngsters to the variousbranches of industry including thedevelopment, production and marketing ofindustrial products and to create a morepositive attitude towards industry in general.It provides teaching and learning materials,conducts in-service courses for teachersand takes students on study visits toindustrial plants.

Israel’s overly bureaucratic system isholding back the development of the Israelieconomy. Companies are required to fillout a large number of forms and obtainvarious certificates in order to open a newindustrial plant or to provide vocationaltraining in cooperation with governmentministries.

The plans of the Israeli Industrialists’Association for the coming years tacklesome of the major challenges facing IsraeliHRD and focus on three objectives:

� transferring some 60 industrial plantsfrom the centre of the country to thesouth;

� reducing government bureaucracy andsimplifying the procedures ofgovernment ministries;

� getting more involved in VET in order topromote HRD which is more tailored tothe needs of Israeli industry. Incooperation with vocational educationalnetworks and the MOI, the associationhas recently begun a number of initiativesto train production workers in metals andmachinery trades. It has also launched anaccelerated study programme for atechnician’s diploma that providesgraduates with a full matriculationcertificate in addition to the diploma, as ajoint venture with the MOE and ORT.

3.4 SUMMARY OF MAINFINDINGS

1. Over the past 20 years the Israelieconomy has moved from anagriculturally based, largely collectiveeconomic system, to a technologicallyadvanced economy in a liberalisedmarketplace. ICT is the frontrunner inthe Israeli hi-tech sector. This economyneeds a workforce that is educated andhighly skilled in science, engineeringand technology.

2. Government policy, illustrated by thebudgetary decisions of 2005, showsdetermination to sharply reduce thenumber of foreign workers by employingIsraeli workers in their stead. At thesame time, steps are being taken toreduce the size of the public sector.

3. The process of privatising state-ownedcompanies has been accelerated inrecent years to increase the flexibility ofthe Israeli labour market.

4. SMEs� SMEs are seen as a key factor in

promoting economic growth and thecreation of jobs, to meet thechanging needs of the Israelieconomy and increase employmentespecially in under-representedgroups such as minorities, womenand new immigrants.

� There are some 400,000 SMEs inIsrael, which comprise 98% of allbusinesses and employ 1.2 millionpeople, accounting for 60% of allemployment in the business sector.

� The major barriers for thedevelopment of SMEs are: the needto upgrade management skills; the

30


difficulty in accessing capital;competition from imports and thedifficulty of exporting.

� The MOI, through the Israel Smalland Medium-sized EnterprisesAuthority and its CPEs, has a varietyof sophisticated programmes andHRD services aimed at improvingmanagement skills, promotinginnovation in SMEs and referringthem to sources of funding.

5. Forecasts of demographic trends inIsrael predict an absolute growth in theproportion of the Arab and theultra-orthodox Jewish population. Thisindicates a need for greater investmentsin TVET in order to ease these groupsinto gainful employment both for theirown sake and as a boost to theproductive workforce of the economy.

6. There is a steady increase in theincidence of poverty in Israel. Thenumber of low-income workers hasrisen to 18%. Government policy isaimed at weaning fit people of workingage off dependence on welfare and intothe job market by limiting theirentitlement to unemployment benefitsand income support.

7. Israel has a lower labour forceparticipation rate (62.2%), a loweremployment rate (55.7%) and higher

unemployment rate (10.5%) than theUS or OECD Europe. Israel shouldinvest more in active labour incentivesas well as in TVET in developmenttowns and for women.

8. Israel has dealt with unemployment inseveral ways, most of which haveaddressed the demand for work whilesome have been aimed at increasingthe supply of jobs. One of the mostsignificant programmes is the Mehalev

programme, aimed at moving peoplefrom dependence on welfare to ensuredemployability. The programme is basedon the Wisconsin model and its mainquantitative target is to reduce thenumber of people on income support byat least 35%.

9. Some of the challenges of the Israelilabour market are a lack of TVETprovision for traditional industries suchas metals, machinery and construction;TVET graduates lack practical, personaland interpersonal skills; many youngIsraelis do not see a career in industryas an attractive option; there is a needto reduce government bureaucracy andsimplify procedures for setting up newSMEs; there is a need for conductingmore vocational training andtransferring industrial plants from thecentre to the south of the country.

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4. WHY TVET IS IMPORTANT

FOR ISRAEL’S

SOCIO-ECONOMIC

DEVELOPMENT

4.1 THE STRUCTURE OFISRAELI TVET

Section 2 described the managementstructure of the TVET system. Asmentioned, two government ministries areresponsible for TVET: the Ministry ofEducation, Culture and Sport (MOE) andthe Ministry of Industry, Trade and Labour(MOI).

In this section we will focus on an analysisof the implications of two parallelprocesses of technical education andtraining under the supervision of twoministries: for those up to the age of 18,and the training of students over 18 tobecome technicians and practicalengineers.

4.1.1 TVET FOR YOUNGPEOPLE

Comprehensive schools under the

supervision of the MOE

Technical education in comprehensivesecondary schools, (grades 10–12, ages15–18), is under the supervision of theMOE. About half of the schools aremanaged by technical education networkssuch as ORT, AMAL and the College ofAdministration. Some are managed byprivate networks such as Atid and Badarneh

while the rest are administered by the localcouncils. The operating budget, includingwages, is mainly paid for by the state, basedon student numbers, the range of studytracks and the occupational profile of theschool’s teaching staff such as expertiseand seniority.

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4

The curricula, the examinations and thecertificates are state-recognised and assuch are supervised by the nationalinspectors of the different technical tracksat the Science and TechnologyAdministration of the MOE [5].

At these comprehensive schools, studentsin the 10th grade may choose a technicalstudy track in addition to compulsoryacademic subjects. They may choosetechnical majors such as electronics andcomputer engineering, mechanicalengineering, control and energy systems orcomputerised manufacturing systems.About one third of the students in Israelischools study in a technical track. Eachstudy track has three subjects: the first is ascience subject (physics, chemistry orbiology) or the technology-sciencessubject. The second subject is the studytrack major and the third is a specialisationin which many students present a finalproject. The students’ main objective is tocomplete secondary school with a fullmatriculation certificate that allows them toapply for university and academic colleges.Those who are also successful in theirtechnical studies (with a minimum of sevencredits), have the option of studying to be atechnician or a practical engineer, even ifthey do not have the full matriculationcertificate. All students eligible for militaryservice require permission from the army todefer national service in order to continuestudying.

Studies in the technology track atsecondary school do not usually includeany element of vocational training, but areinstead based on providing technicaleducation. Studies are mainly theoreticaland may include laboratory experimentsbut will include very little, if any, workshopcomponents. The technical study tracksmainly concentrate on elite or advancedtechnologies and do not includeemployment vocations such as metalworking, car mechanics or automotiveelectrical systems.

Industrial schools under the auspices of

the MOI

In parallel, students in industrial schoolsunder the auspices of the MOI study from

class 9 or 10 to class 12. The aim of theseschools is to provide graduates withvocational training and a professionalcertificate as electricians, car mechanics,cooks, hair stylists or computermaintenance workers. Most courses arevocational and field work constitutes asignificant component of studies,accounting for about two days a week. TheMOI has an Institute for Teaching Methods(MEAH) which develops studyprogrammes, teaching materials andin-service courses for teachers as well asproviding national inspectors. They areresponsible for setting exams andproviding government diplomas. Severalsubjects such as mechanics and electricityare provided both in MOE andMOI-supervised schools, with very littlecoordination between the two systems.

Only recently has it become possible forstudents of MOI industrial schools to takethe MOE matriculation certificate exams. Insome of these schools, more time hasbeen allotted for academic subjects andstudy programmes have been modified sothat these students can sit for the NationalMatriculation Examinations. So far only avery small percentage of these studentsreach matriculation entitlement, but theirnumber is growing every year. Otherstudents are managing to acquire sevencredits in three academic subjects(mathematics, English and language) andanother seven credits in technical subjects.These 14 credits enable students to applyfor studies as technicians and practicalengineers. By increasing the academic andtheoretical content of their vocationalstudies, these changes broaden thestudents’ horizons and increase their socialmobility. According to a survey by marketresearchers of the GeocartographyInstitute on behalf of the ORT network [23],although attaining the vocational diplomaremains their primary goal, almost half ofthe students in industrial schools alsoattach great importance to the matriculationcertificate. At the same time, students atthe industrial schools still face obstaclestheir peers at schools under MOEsupervision do not, such as: they do nothave the benefit of a school mark and theyare not allowed to take the exam at othersittings.

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This situation should be reviewed so thatthe overlap between the two systems isincreased, thus offering equal opportunitiesto students at either type of school.Increasing the hands-on and workshopcomponents in technical tracks in thecomprehensive schools and increasing thetheoretical studies in the industrial schoolswould help individual students as well asimproving HRD and employment in Israelin general.

4.1.2 TVET FOR ADULTS

There are also two different routes fortraining technicians and practical engineersin Israel:

1. for young people, immediately after highschool but before military service, underthe supervision of the MOE;

2. for adults, usually after military service,under the supervision of the MOI.

The MOI training is carried out by theNational Institute for Technical Training(NITT). As this is an importantorganisation, we would like to provide thefollowing details.

The NITT was set up in 1970 to be a keyfactor in developing human capital and intraining technicians and practicalengineers, according to the needs of theeconomy and industry.

Around 25,000 students train to betechnicians and practical engineers peryear, according to Malul [25], head of theNITT’s department for planning, budgetingand control. They attend some 90 colleges.A technician’s diploma requires threesemesters of study, while a practicalengineering diploma requires four. TheNITT also offers preparatory courses forhelping students who do not have enoughqualifications to apply.

The most popular study tracks aremarketing and management, softwareengineering and electronic engineering.These tracks account for 75% of studentswhile the rest study tracks such asmechanical engineering, architecture,building, electrical engineering, interactive

communications engineering,biotechnology, chemistry and visualcommunications. Studies are offered indaytime or mixed day and evening formats.The institute also has special projectstargeting under-represented groups suchas immigrants, women, ultra-orthodoxJews and minorities. The breakdown ofstudents attending colleges under NITTsupervision is: Jews, 84%; Muslims, 12%;Christians, 2%; and Druze, 2%. This moreor less reflects the proportions within thegeneral population. About 53% of thestudents are under 25, 26% are aged 16 to30 and 21% are 31 and over. It is worthnoting that the majority of those studying tobe technicians (76%) are aged 31 andover. They are mainly industrial productionworkers who wish to improve theirqualifications and, of course, their salaries.

The tuition fees for technician and practicalengineering courses are around US$3,500a year. Half of this amount is paid for by thestate with students expected to pay theother half. The curricula are designed andupdated by the Pedagogical Division of theinstitute which, together with the variousinspectors in the Department of Inspectionand Information, is responsible formonitoring their implementation in thecolleges. The colleges are administered bytechnical educational networks such asORT, AMAL and the College ofAdministration or private networks such asAtid.

The NITT carries out the monitoring andsupervision before a college can beapproved to train technicians and practicalengineers. The evaluation and monitoringprocedures are based upon documentationprovided by the college and visits byinspectors. An accreditation committeeuses this information to approve or reject acollege’s request to be entitled to run thesecourses. The entire administration of thenational exams – writing, implementing,and marking – is carried out by the NITT.

At the same time, there are around 5,300young students who have just finishedsecondary school studying to betechnicians and practical engineers underthe auspices of the Science andTechnology Administration of the MOE.

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4. WHY TVET IS IMPORTANT FOR ISRAEL’S SOCIO-ECONOMIC DEVELOPMENT

This organisation is responsible forcurriculum development, study materials,exams and approval of technicians andpractical engineering diplomas. At somepoint in the past an Overall SteeringCommittee for Technicians and PracticalEngineers was set up to coordinate the twoministries concerning curricula,examinations and authorising diplomas inspecific subjects. However, to the best ofour knowledge, this committee has not metfor many years. Therefore it is clear that aunified government policy for trainingtechnicians and practical engineers isneeded and there must be greatercoordination between the two ministries insupervising the actual training.

It is worth noting that in the not too distantpast there were teacher training collegesunder the MOE which also dealt withretraining practical engineers as technicalteachers in secondary schools. Thesepractical engineers had experience andexpertise in industry and their additionaltraining related to teaching skills. When anew government policy was brought inwhich only allows people with a first degreeto become teachers, the collegeprogrammes for retraining practicalengineers to become teachers closeddown. This policy is aimed at raising thequalifications of teachers, especially forteachers of academic subjects. However,when it comes to technical subjects, thehands-on experience of these practicalengineers is extremely valuable, and couldmake a significant contribution to thequality of teaching given to technical trackstudents in schools.

4.2 WHAT IS BEING DONE TOREFORM ISRAELI TVET

4.2.1 THE DOVRATCOMMITTEE

In recent years the Israeli public hasbecome increasingly dissatisfied with theIsraeli education system. Israeli students’achievements in the international PISA andTIMSS reviews have shown a sharp declineand, what is even more worrying, is thegrowing gap between the best and theweaker students. The increase in violence

among young people and the inadequateschool climate have only heightenedcriticism of the system. The increasinginvolvement of industrial and economicfigures in education and the politicalpressure for change led the government inSeptember 2003 to appoint the DovratCommittee – a national task force forimproving the Israeli education system. Thecommission was asked to carry out acomprehensive review of education in Israeland recommend a programme for overallchange – structural, organisational andpedagogical. The plenary of this task forcehad 18 members including educators fromthe academic world and from the field,experts in economics and law, managersfrom business and public figures. It did notinclude any high-ranking officials from theMOE or representatives of the teachers’unions from primary or secondaryeducation. Eight sub-committees were setup comprising an additional 60professionals, with each committee incharge of a different key issue. In December2004 the national task force published acomprehensive report. It described thecurrent situation of the Israeli educationsystem and provided a new vision for thesystem including a programme of reformsand recommendations for implementation.

Below are listed a summary of theprogramme and its principalrecommendations [26]:

1. Strengthening public education:

Creating a shared cultural and valuesystem for the country’s citizens in orderto strengthen their social cohesion, bymeans of an obligatory core curriculumfor all groups of Israeli society.

2. Bridging the divide: The educationalsystem must bridge the divide stemmingfrom the socio-economic background ofthe students, their ethnic origin or placeof residence, with special emphasis onbridging the divide between the Jewishand Arab populations.

3. Significant improvement in the status

of the teaching profession: The qualityof teacher training must be improved, therange of teachers’ duties increased, andpay should be raised substantially. Ateacher should be at school for eighthours a day five days a week.

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4. Increasing the autonomy of schools:

Schools should be given full autonomyin pedagogical, financial andorganisational issues.

5. Target-oriented and result-driven

education: The educational vision andobjectives must be translated into clearpriorities, with measurable objectivesand long-term planning.

6. Decentralisation of management:

The MOE should become a body thatmakes policy, allocates budgets, setsstandards and oversees performance.Its operational functions should betransferred to regional educationalbodies that will run the schools andkindergartens. Schools will be heldresponsible for meeting a set ofpre-defined objectives and for the levelof achievement of their students.

7. Assessment, accountability and

transparency: These ideas must allbecome part of the management culturethroughout the education system.

8. Strengthening the early stages of

education: Considerable reinforcementof early childhood education andkindergarten and the first years ofprimary school is needed.

9. Pooling of resources and greater

efficiency: The teaching budget inkindergartens and schools will beallocated on a differential basis,according to the socio-economic statusof the student, with preference given todeprived areas. At least 90% of theeducation budget will be transferreddirectly to the schools andkindergartens and the managementoverheads of the ministry and theregional education bodies may notexceed 10%.

It should be noted here that concerningtechnical education and vocational training,the proposed method of budgeting doesnot give preferential treatment to technicalsubjects in comprehensive schools.

It is clear that teaching technical subjectsproperly calls for smaller class sizes thanfor academic subjects due to the additionallab work and workshops these subjectsrequire. Moreover extra resources areneeded for equipment for experiments andtechnical projects. Unless adequate

funding is provided, head teachers willhave no incentive to provide technicalstudy tracks for their students.

However the Dovrat Committee’s interimreport made no reference to technicaleducation in schools. The final reportmentioned the issue briefly, saying that inMOE-supervised comprehensivesecondary schools there should be nopre-vocational training in technical studytracks. It also stated that the DovratCommittee accepts the recommendationsof the Preiss Committee (of which theauthor of this report was a member). Thiscommittee was appointed in June 2004 toreview how technical tracks and subjectsare taught in the Israeli educationalsystem.

4.2.2 THE PREISS COMMITTEE

The main points of the committee’s report[27] that have implications for TVET arelisted below.

The committee believes that technicaleducation still has a valid role to play forthe following reasons.

1. The study of technical subjects isperceived by students as somethingrelevant and innovative that can helpthem undertake more in-depth study ofscientific subjects.

2. Studying the basics of a technicalsubject while young may help thestudent develop a vocational careerlater on.

3. Great importance is attached to theskills acquired in hands-on experienceduring technology studies, wheretechnical tools are used.

4. Technical or vocational studies at ayoung age may save governmentexpenditure on vocational training foradults later on.

The committee divided the technical studytracks into three categories.

1. Science and engineering tracks:

These constitute the basis for furthereducation in colleges or at university. Inthese tracks the first subject is a

37


scientific one – physics, chemistry orbiology. Tracks in this category are:mechanical engineering, computer andelectronic engineering, biotechnologyand technical sciences.

2. Technology tracks: These constitutethe basis for further education andfuture employment. The curricula inthese tracks should provide the learnerwith current knowledge and skills butshould also bear in mind the prospect ofdynamic change both in the vocationsthemselves and in the skills required infuture. The first subjects in these tracksare technical sciences, although thestudent may also choose a sciencesubject. Tracks in this category are:computerised manufacturing systems;control and energy systems; industrialdesign; communication technologies;construction engineering andarchitecture and industrial management.

3. Employment-oriented tracks: Theseconstitute the basis for a career that willallow the student and his family socialmobility. These tracks incorporate asignificant element of relevant,up-to-date practical work in order tohelp the student find work. The firstsubject in the track will be the‘technology sciences’. Tracks in thiscategory are hotel management;tourism and leisure; education; healthsystems and business management. Itis worth noting that the committee didnot take a stand on whether the tracksin this category should be continued ornot. It found that the content in thesetracks is not necessarily technical, butthat they do fulfil valuable social aspectswhich the MOE should take intoconsideration.

The committee stressed the importance ofthe final project in technical education. Theproject combines knowledge, skills andvalues in the planning and production of aprocess, product or technical engineeringplan. Through the project the learnerintegrates a number of technical andscientific subjects, applies the theoreticalknowledge studied and acquires skills suchas decision-making in an environment ofuncertainty, teamwork, responsibility and

accountability, a systematic approach,troubleshooting, initiative, creativity andinnovation.

The implementation of the Dovrat Report,which was due to begin on 1 September2005 came up against numerous difficultiessuch as obtaining sufficient resources forphysical infrastructure and salaries orsetting up regional educational bodies in anumber of towns and settlements.However, it seems that the main stumblingblock was due to the decision not toinclude representatives of the teachers’unions in the commission plenary. As aresult, at the time of writing this report, thereforms have only been partiallyimplemented and have only reached5–10% of Israeli school children.

In contrast, it seems that therecommendations of the Preiss Committeeenjoy a greater consensus among both theheads of the MOE and technologyteachers. However, if special funding is notprovided for head teachers who want to setup more expensive technology tracks, thecommittee’s recommendations may neverget off the ground and the quality oftechnical education will decline.

The Science and TechnologyAdministration in the MOE has set thefollowing goals for technical education incomprehensive high schools for the nearfuture:

� introducing better scientific equipmentfor technical tracks and subjects;

� developing curricula with standards thatare in accordance with the new rules ofeligibility for full matriculation currentlybeing drawn up by the MOE;

� implementing a five-year educationalprogramme for the Arab population toreduce gaps in educationalachievement and promote the role ofgirls;

� encouraging more girls to study scienceand technology subjects;

� improving and regularly updating theskills of technology teachers through abroad spectrum of in-service trainingcourses and study days.

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4.2.3 THE MOI’S NEW POLICYFOR HRD

In 2003, the Manpower Training andDevelopment Bureau (MTDB) wastransferred from the Ministry of Labour andWelfare to a new ministry called theMinistry of Industry, Trade and Labour(MOI). The Ministry of Welfare became aseparate entity. This change is not justsemantic, but rather reflects a change ofpolicy concerning HRD, employment andvocational training. Horesh, head of theMTDB, outlines the updated policy of TVETfor HRD in the MOI [29].

� TVET and HRD are to be much morefocused on responding to the needs oftrade and industry rather than those ofthe service industries.

� A forum of representatives of thegovernment, industrialists, the IsraeliIndustrialists’ Association and the tradeunions has been set up to formulateHRD policy in Israel. This forum doesnot meet according to a regularschedule, but as and when needed.

� Priority will be given to TVET aimed attraining people to replace foreignworkers in trades such as building.

� The government’s privatisation policy isalso being applied to the MTDB itself.This body remains in charge offormulating policy for training, controland supervision of training activities,exams, diplomas and qualifications.However training is carried out by eitherprivate companies or NGOs that applyfor government contracts.

� The government’s policy of reducing therole of the public sector has led to aconsiderable drop in the fundingavailable for vocational training. TheMTDB therefore has had to focus onproviding cheaper and shorter coursesthat are partly on-the-job training inorder to respond to the needs ofindustry.

� At the same time, in the MOI’s industrialschools, studies and vocational trainingare currently aimed at providingstudents with basic knowledge andskills that will give them greateropportunities to develop in theirvocation in the future or move to othervocations. The intention is to turn out

graduates who have the skills andabilities for lifelong learning as well asemployment.

Several key programmes and projects thatare a result of these policies are describedbelow [30].

1. Vocational training for the building

industry: This initiative providesin-service and on-site training for some2,200 building craftsmen to replacenon-Israeli workers. The trainingprogramme lasts six months. Groups ofabout 20 trainees participate in on-sitetraining at the building site. The MTDBpays for the training and half of thetrainees’ salaries. Those whosuccessfully complete the six-monthprogramme are taken on by the buildingfirm. The project is run as joint venturewith the Employment Services and theBuilders’ Association.

2. Pre-employment orientation

workshops: The candidates are peopleon income support who are not yetready for a vocational training course orable to get a long-term job. Theprogramme is designed to developemployment skills, motivation andpersonal attributes which prepare theparticipants for re-entry to vocationaltraining and the job market. Theprogramme strives to providetailor-made workshops which meet theneeds of each individual.

3. Employment greenhouse: These arecentres for empowering people, mainlyfor new immigrants, by developingemployment skills through training andworking in a protected environment. Theprogramme lasts for 600 hours andincludes a preparatory course (basiclearning skills, Hebrew, English,mathematics, basic ICT skills andemployment skills); work experience ina number of occupations and jobplacements. Many Ethiopian immigrantshave participated in this successfulprogramme – 80% are now working.

4. Programme for helping single

parents re-enter the job market [12]:In May 2003 changes were made inwelfare policy whereby benefits for thesingle-parent families were reduced andentitlement was made dependent on an

39


employment test. These changes wereaccompanied by a new programme tohelp single parents on income supportand child benefit re-enter the jobmarket. The programme began inAugust 2003 and was aimed at apotential population of some 100,000single-parent families in Israel, 90% ofwhich are headed by women. Theprogramme includes vocational training,an economic incentive for both theworking parent and the employer, helpin funding childcare and transport towork. The programme was put togetherquickly and was not sufficiently adaptedto the target population and many of theparents lacked the appropriatevocational skills and work habits. Up toApril 2004, over 600 parents hadattended the vocational trainingcourses.

ORT1 is one example of an organisationthat was given a franchise from the MOI toprovide study frameworks for techniciansand practical engineers, vocational trainingfor companies and for individuals. ORT isone of the educational networks operatingin Israel which include colleges andschools for advanced technologies andsciences.

Miller has summarised the maindevelopments arising from the MOI’supdated policy as follows [31].

1. Payment for vocational training coursescarried out for the MOI is based on theplacement rate of the participants.

2. The possibility of privatising technicalvocational training of soldiers, until nowdone by the IDF, is currently underdiscussion. In future this may betransferred to private and public trainingorganisations.

3. Developing courses for the commercialmarket is based on an analysis of jobvacancies in the newspapers, providingan up-to-date indication of present HRDneeds in the Israeli labour market.

4. TVET does not provide enoughmanpower for Israel’s low-techindustries.

4.2.4 PRIVATE SECTOR TVETCURRICULUM DEVELOPMENT

One innovative example of private sectorTVET curriculum development in Israel isthe Technical and Training Department forIsrael’s Aircraft Industries (MHT), acommercial organisation. MHT providestraining in a wide range of technicalsubjects and topics, as well asmethodologies of training needs analysisand innovative use of new technologies intraining such as e-learning or electronicdocumentation. It also uses methods suchas the Interactive Job PerformanceTraining (IJPT), Kaizen and Feuerstein’smethod of instrumental enrichment. Theaircraft industry has 15,000 employees andan annual budget of US$1.2 billion, whileMHT has 140 employees and an annualbudget is US$19 million [32].

A number of industrialists have claimedthat Israel has no national policy forforecasting the HRD needs of its labourmarket and its economy. It is certainly truethat Israel’s economic and social strengthdepends on the quality of its human capital.The sharing of the knowledge andexpertise accumulated by private bodiessuch as MHT, technical educationnetworks, the Industrialists’ Association,the trade unions and government ministriescould make a big contribution to theimprovement of HRD in Israel.

4.3 THE ROLE OF LIFELONGLEARNING

4.3.1 CURRENT TAKE-UP OFCONTINUING EDUCATION

The frequent changes that occur in skillsneeds and in the different professions ofthe modern job market can rapidly makepeoples’ training and qualificationsobsolete. At the same time, automation andthe introduction of new technology arereducing the number of labour-intensiveoccupations. This increases competitionand lessens job security. Therefore any

40


1 It should be noted that the author of this report is the deputy director general for research and development,and training of ORT.

discussion of vocational training coursesand their contribution to HRD must alsoaddress the issue of lifelong learning, bothwithin formal and informal education andtraining contexts, whether for workpurposes or for personal enrichment.

Sherri Pier’s 2004 study [33] looked at thevarious parameters of lifelong learning invocational training. The main findings aredetailed below.

1. In 2004, some 573,000 people of thegeneral population attended courses orvocational training. This represents13.3% of the population of more than 19years of age, 482,700 (20.6%) of theemployed, 29,500 (11.5%) of theunemployed and 60,800 (2.8%) who arenot part of the labour force.

2. Groups who are already in a strongposition in the labour market in terms ofemployment status, nationality, length ofresidence in Israel, education andincome, are more likely to participate invocational training than other groups.For example:� The proportion of Jews completing

courses and training is significantlyhigher than for non-Jews.

� Established Jews have a higherparticipation rate than newimmigrants, although the latter’sparticipation rate increases with theirlength of residence.

� The likelihood of an individualparticipating in lifelong learningincreases in line with his or her levelof educational attainment andincome.

It is possible that the low participationrate of weaker populations in coursesand vocational training is partly due totheir limited access to information abouttraining possibilities. Also, a history offailure during their formal education maymake people reluctant to undertakemore training. Some people may alsoneed to catch up on certain knowledgeand skills in order to get into thevocational training courses. This issueis discussed in section 6.1.4.

3. Older workers over 55 tend toparticipate less in courses and training.This is probably because employers arereluctant to invest in older employees as

they have less time left to work. Olderemployees are also likely to be lessmotivated as they are less likely to beable to take advantage of new skills infuture employment opportunities.

4. Women are more likely to participate invocational training courses than men,even though 47% of women funded thetraining by themselves as opposed to34% of men.

5. The choice of courses and vocationaltraining is very broad and ranges fromone-day workshops and study days tocomprehensive long-term courses.About 40% of the participants trained incourses of over 100 hours, about 23%in courses of 51–100 hours, 29% incourses of 11–50 hours and 8% studiedup to 10 hours.

6. Most of the courses (58%) are paid forby the employer, 9% are paid for bypublic funds and 41% are paid for bythe participants themselves (some ofthe courses were paid for by more thanone source). This finding reflects therecognition of the need for thesecourses, although they may also beseen as perks for employees.

4.3.2 BENEFITS OFIN-SERVICE TVET

TVET’s contribution to the economy and toindividual well-being is usually defined byeconomists in terms of the worker’simproved ability to contribute to the nationaleconomy and his or her higher salary.However, there is another, more qualitativeparameter that looks at TVET’s contributionto improving the trainee’s quality of life atwork. These variables may include thedegree of interest and enjoyment derivedfrom work, the level of job security and thechances of promotion. A survey conductedby Zvi Yogev [34] examined thesevariables and the following are the mainfindings relevant to TVET.

� A survey six months after the end oftraining found that half of graduates whohad found work believed theiremployment situation had improved.Most of them, about 80%, reported thatthere had been no deterioration in theirworking conditions.

41


� Graduates of vocational trainingreported that the improvement isexpressed mainly in terms of ‘the workis more interesting’, ‘the chances forprofessional advancement are better’and not so much in terms of ‘jobsecurity’ or ‘higher salary’.

� The results of training were better formen than for women, although thedifferences were slight.

� Vocational training produced betterresults for younger people than for olderpeople (aged 45 and above).

� The main factor that made a realdifference for people whose situationhas improved after vocational trainingand those whose situation hasworsened was ‘finding a job in the fieldstudied’. There is a big differencebetween those who found work in thefield they trained for and those whofound work in other fields. The ratiobetween the number of graduateswhose situation has improved and thenumber whose situation has worsenedis 3.16 (on average for all aspects), asopposed to only 0.96% for those whofound work in other areas.

Measuring the quality of work life gives adifferent perspective on TVET outcomesand their impact on HRD. Thisinterpretation takes into account thesubjective perceptions of the trainee aswell as objective results such as a rise insalary. This can provide a better insightinto a graduate’s behaviour anddecision-making and, what is possiblymore important, a person’s expectationsand motivation to advance and adapt tochanges in a modern labour market.

4.4 SUMMARY OF MAINFINDINGS

1. Technical and vocational education andtraining is the responsibility of twogovernment ministries: the MOE throughits administration for science andtechnology and the MOI through itsmanpower training and developmentbureau. There are two parallel TVETsub-systems under the supervision of thetwo ministries: for young people under18 in technical tracks in comprehensive

schools; and for adults in colleges fortechnicians and practical engineers. Oneof the more significant challenges is howto increase cooperation between theMOE and MOI in order to formulate anintegrated policy of TVET for HRD inIsrael, taking advantage of theexperience of both ministries.

2. The Dovrat Committee, a national taskforce for improving the Israeli educationsystem, and the Priess Committee forthe review of technical tracks andsubjects published their reports at theend of 2004.� The Dovrat Report describes the

current situation of Israeli educationand provides a new vision for thesystem via a programme of reformand recommendations such asstrengthening public education;bridging the gaps due to thesocio-economic background ofstudents; improving the status ofteachers and introducing atarget-oriented and result-drivensystem.

� The implementation of the DovratReport is coming up against manyproblems. During the academic year2005/06, it is being only partiallyimplemented, in no more than 10%of the education system.

� The Preiss Committee sees theneed for the continued existence oftechnical education andrecommends dividing the technicaltracks into three categories: scienceand engineering, technology andemployment-oriented tracks. It alsostresses the importance of the finalproject in technical education.

� It seems that the recommendationsof the Preiss Committee enjoy agreater degree of acceptance thanthose of the Dovrat report from boththe MOE and technical teachers.However, in order for the Preissrecommendations to succeed, moreinvestment is needed for developingtechnical tracks.

3. The updated HRD policy of the MTDBof the MOI contains the followingguidelines: TVET and HRD should bemuch more geared to responding to theneeds of trade and industry rather thanthose of service industries; the MTDB

42


should provide cheaper and shortercourses that include on-the-job training;MTDB will be responsible forformulating training policy, while privateor public companies and educationalnetworks will actually deliver thetraining.

4. The MTDB’s updated policy hasresulted in several new programmesand projects such as vocational trainingfor the building industry;pre-employment orientation workshops,employment greenhouses and aprogramme for helping single parents tore-enter the job market.

5. The MHT of Israel’s Aircraft Industriesprovides an innovative example ofprivate sector TVET curriculumdevelopment in Israel. The MHTprovides training in a wide range oftechnical subjects and topics, as well asmethodologies of training needsanalysis and innovative use of new

technologies in training such ase-learning or electronic documentation.

6. A study on the various parameters oflifelong learning found that groups whoare already in a strong position in thelabour market are more likely toparticipate in vocational training thanothers. Older workers are less likely toparticipate in training and theparticipation rate of women in vocationalin-service training courses is higherthan for men.

7. A survey six months after the end ofin-service TVET courses found thefollowing qualitative outcomes: abouthalf of the graduates believed theiremployment situation has improved; thisimprovement was expressed mainly interms of ‘the work is more interesting’,‘the chances for professionaladvancement are better’ and the mostsignificant factor for many is ‘finding ajob in the field studied’.

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5. LITTLE INVESTMENT BY

BILATERAL AND

INTERNATIONAL DONORS IN

HUMAN RESOURCES

DEVELOPMENT

The process of gathering material for thisreport involved interviews with andpresentations by policy-makers anddecision-makers, practitioners in the fieldand a comprehensive survey of theliterature on TVET and the labour market inIsrael. This search found no evidence ofsignificant investments by internationaldonors in HRD in Israel. We do not know ofany activities by the World Bank, theEuropean Bank for Reconstruction andDevelopment or the EU for the reform oftechnical and vocational training in Israel.

To the best of the author’s knowledge,some bilateral projects exist although theytend to be small in terms of scope andfunding. These include a project to train theunemployed to work with computertechnology and projects to developcurricula for the mechatronics andautomotive trades between Israel andGermany through the Israeli Ministry ofIndustry, Trade and Labour.

Technical education networks such asORT, Hadassah, WIZO and AMIT raise

their own funds of a few million dollars ayear from donors, private institutions andfoundations abroad. This money is mainlyused to upgrade their schools andcolleges, with some expenditure oncurriculum development and technicalHRD.

There are international supportprogrammes for research anddevelopment in innovative and creativetechnologies that often involvecooperation between Israeli and foreigncompanies [16]. Examples includebilateral funds such as BIRD (Israel–US),CIIRDF (Israel–Canada), and SIIRD(Israel–Singapore). We should alsomention Eureka, a European networkpromoting collaborative market-drivenresearch and development projects inmost fields of advanced civiliantechnologies and the European Researchand Development Framework AgreementISERD. Nevertheless, there are currentlyno projects for TVET reform involvingsignificant investments from internationalor bilateral donors.

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5

6. CHALLENGES FOR TVET

IN ISRAEL

6.1 ISSUES AND PRIORITIESFOR HRD

6.1.1 THE AIM – HOW CANTVET KEEP UP WITHCHANGES IN THE LABOURMARKET?

Modern sophisticated economies needworkers who are able to fill a variety ofpositions – production workers,maintenance men, technicians andengineers – people who are able toanalyse and synthesise, detect problemsand solve them, display creativity andoriginal thinking and who have themotivation and ability to adapt to changesand continue learning and developingthroughout their working lives. In contrast,most TVET systems, both in terms ofsubjects taught and methods used, cannotkeep up with the pace of change in modernindustry.

As Levinson puts it [35]: ‘Most vocationaleducation systems are still stuck in theformer “industrial economy” model, while

the trend of most industries is towards the“information economy” model’.

In order to bridge the gap between theneeds of a modern economy and thecapabilities of TVET, resources and effortsshould be channelled into the followingareas:

1. ongoing development of up-to-datecurricula, including teaching andlearning materials;

2. new methodologies;3. design and delivery of in-service

courses and training sessions forteachers and trainers in technical andvocational education;

4. regular upgrading of equipment andinstrumentation in TVET centres;

5. improving the professionalism ofteachers and trainers (discussed in thefollowing section).

Bridging this gap will call for awell-coordinated national effort involving allplayers: the MOE and the MOI, theIndustrialists’ Association, trade unions andthe public and private TVET systems.

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6

6.1.2 THE QUALITY OF TVETTEACHERS AND TRAINERS

Levinson poses the following question [36]:‘While the vocational language in modernindustries has changed, the vocationaltraining language has changed onlyslightly. One of the key questions is: howcan the technical teacher be exposed tothis new language and context when all ofus know that instead of being exposed to ithe is busy in his classroom?’

There is no doubt that, in any organisation,the quality of the workforce is the mostdecisive factor for success. In all countries,the quality of TVET teachers and trainers isthe key to the development of educated,skilled and valuable workers for theeconomy. Israel is no exception to the rule.

Facilities do currently exist in Israel forupdating the skills of teachers and trainersthrough in-service courses, study days,conferences and practical experience inindustry. However, some teachers andtrainers do not have the ability to keep upto date with new vocational or professionalcontent, to adopt new ICT teaching andlearning methodologies or to try out newequipment and instrumentation.

TVET teachers and trainers should haveflexibility, open-mindedness and acapacity for change, the ability to focus onthe process and not only on the result,curiosity, independence, self-confidenceand teamwork skills. All this, of course, isover and above mastery of content andteaching ability. There is a need forredefining the characteristics and abilitiesrequired of teachers and trainers in TVET,as well as designing a clear andsystematic sorting process that sets highstandards for selecting future TVETteachers.

Another no less important issue is theincreasing age of TVET teachers andtrainers. This phenomenon is true for manyEuropean countries as well as for Israel.The Taub Centre report [12] shows that26% of TVET teachers are over 50, 62%are between 30 and 49 and only 12% areunder 30. Moreover the average retirementage of teachers is 54. This reduces their

motivation to learn new things, as close to30,000 TVET teachers in Israel areexpected to retire within the next five years.Section 6.2 contains somerecommendations for raising the quality ofTVET teachers, trainers and teachertrainers.

6.1.3 WHAT SHOULD BETAUGHT – TVET IS NOT JUSTFOR IMMEDIATEEMPLOYMENT

Industrial enterprises and SMEs inparticular are looking to employ peoplewho can fit into their business and becomeproductive, efficient employees as quicklyas possible. In most cases, SMEs do nothave a training department for theiremployees. They therefore expect theirprior training to provide the knowledge,skills and practical experience needed fortheir work.

Personal and interpersonal skills

However, research from 20 years agoshow that then as now, like theircounterparts in other countries, Israeliemployers often find their employees lacksoft skills. They see the need for morepersonal and interpersonal skills such asthe ability to meet deadlines, to work ontheir own and in a team and to listen andexpress themselves in writing and orally. Inaddition, they must have significant basicliteracy in four areas: mother tongue,English, mathematics and ICT.

Values and ethical attributes

TVET systems are also expected to impartcertain values and ethics. In the age oftechnology, information, knowledge andmaterialism, we hear more and more of thedesire to base manufacturing, researchand development, marketing and sales onethical business standards. Education andtraining graduates should enter the labourmarket with values of reliability, integrity,responsibility and accountability and apositive and committed attitude towardswork in general and their place ofemployment in particular. Imparting suchvalues can be done through case-study

48


analysis and discussion of ethicaldilemmas in business, but also though therole models and behaviour of admin andteaching staff.

Compulsory core curriculum

In Israel there are hundreds of smallschools that reflect the increasing divisionsbetween different communities andminorities within Israeli society. Differentgroups, each with their own social,religious and ideological agendas havebeen allowed to apply these to education[12]. However this fragmentation makes itvery difficult to run a cohesive educationsystem. A compulsory core curriculum thatcan impart a shared body of knowledge,skills and values to all of Israel’s citizensmust be devised and applied in all schoolsthroughout the country.

Balanced curriculum

Committees for curriculum design includingrepresentatives from industry, universities,the army, the MOE and the MOI should beset up to produce balanced curricula andtraining programmes that can produce thenecessary knowledge and skills as well associal values. Their work should be basedon available research, forecasts of theIsraeli economy’s HRD needs and profilesof the skills and abilities required in thedifferent professions. Section 6.2.5provides suggestions on how a model forregular updating of curricula in technicaleducation and vocational training could bedeveloped.

6.1.4 WHO SHOULD WEEDUCATE?

It is the country’s duty to provide educationfor all its citizens regardless of race,religious belief or gender. In a situationwhere the educational divide betweendifferent parts of the population is great,wage differences between skilled educatedworkers and unskilled uneducated onesare growing and more and more familiesare living below the poverty line, there is aclear need for greater investment invocational education and trainingaccompanied by affirmative action to

ensure that the resources reach thosegroups in greatest need.

The broader picture of TVET is that itsbeneficiaries – people graduating fromTVET programmes, students benefitingfrom the introduction of new technologiesin teaching and learning, ordinary peopletaking advantage of the information madeavailable by government and public andprivate bodies via the Internet – tend to befrom the more privileged social groups.Therefore, if we really want to bridge thesocio-economic divide, we must targetinvestments at those less successfulgroups who need extra help to availthemselves of opportunities. This includesminorities, immigrants, women,single-parent families, ultra-orthodox Jews,the unemployed, people on income supportand the residents of development towns.

Access to TVET

First, education and training must be mademuch more accessible to under-represented groups. Making theinformation available via the Internet, thepress, radio and direct mailings is notenough to encourage people to participate.They need face-to-face meetings wherethey can be informed in a professionalmanner about the various training optionson offer: the contents, the organisation ofstudies and practical experience theyinclude, and of course, how this can benefitthem. These meetings could also help theplanners of TVET to understand the needsof these underprivileged groups in terms ofwhat skills they require and how coursesshould be organised, for instance takinginto account the special needs ofsingle-parents.

Preparing the ground – soft skills and

attitudes

Most members of these groups are notready to go straight into regular vocationaltraining courses. The gaps in theirknowledge, study habits and motivationthat may discourage them from signing upfor training or lead them to drop outhalf-way through must be addressed first.Preparatory courses must be provided asan integral part of the training courses, not

49

6. CHALLENGES FOR TVET IN ISRAEL

as an entry requirement, to fill in any gapsin learning and, even more importantly, todevelop their self-confidence and feeling ofbelonging. Only by developing soft skillsand attitudes such as these can people beempowered to study, motivated to carry onlearning once the training is finished andhelped to find stable, worthwhile jobs in thelong term.

6.1.5 HOW – POLICY ANDHOW TO IMPLEMENT IT

Many Western countries are currentlytrying to wean people off welfare andencourage them to stand on their own twofeet by returning to work. This is attemptedby short-term actions designed to increasethe demand for labour by bringing about areduction in the number of foreign workers,providing incentives for employers to takeon more workers and increasing thenumber of temporary jobs in buildinginfrastructure [12]. Longer-term actions aimto prepare people for the job market byinvesting in education from kindergartensto higher education and of course invocational training for technicians, practicalengineers and manufacturing workers.

Israel’s economy is increasingly reliant onthe hi-tech and information sectors, withthe bulk of industrial exports provided byelectronics, communications andbiotechnology. This calls for ahighly-qualified and skilled labour force.Advanced technology has also penetratedbranches of agriculture, food and buildingand they too need highly-qualified workers.

Long-term planning

Only long-term investments and multi-yearproject planning for education andvocational training can deliver the changesneeded to bridge the gaps betweendifferent groups in Israeli society andcontribute to HRD, particularly in the moredeprived groups and in areas where thelevel of socio-economic development islow. This means there is a need for a policyof long-term macro-economic planningaimed at promoting human capital andvocational training.

In recent years, the unstable political andsecurity situation has made it difficult forsuccessive Israeli governments to designand implement long-term policies foreducation and vocational training. But atthe time of writing this report, it seems thatthe government understands that thecentral issue on the national agenda todayis bridging the divide in Israeli society andfighting poverty.

National index for bridging the social

divide

While it is the government’s job toformulate a national policy for educationand vocational training and oversee itsimplementation, it should bring in publicand private institutions, organisations andcompanies to put it into practice. Israel hasmany organisations with a great deal ofexpertise in education and vocationaltraining, such as the technical schoolnetworks or the aircraft industry’s MHT whocould target their activities to deprivedgroups and people living in developmenttowns. Just as every year the governmentsets targets for inflation or deficits, it shouldalso set itself annual targets for reducingunemployment and poverty and bridgingthe social divide in Israel. Setting goals,together with work plans includingdeadlines and budgets for reaching them,could convey a message of commitmentand responsibility to all the groups andcommunities that make up Israeli society.

6.2 RECOMMENDATIONS

6.2.1 ESTABLISHING ANORGANISATION FORFORECASTING HRD NEEDS

Interviews held during the preparation ofthis report with stakeholders,decision-makers and TVET practitionersshowed that no single organisation orstructured procedure for forecasting theHRD needs of the Israeli economycurrently exists. When it came to planninghow TVET could meet the needs of theIsraeli labour market even in theshort-term, questions raised in the

50


interviews went unanswered. The MOI’svocational training policy is driven by thecurrent needs of the labour market and bythe government’s recent decisions toreduce the number of foreign workers andto get the unemployed, single parents andpeople on income support back to work.Meanwhile the MOE continues to providescience and technical education (mainlyscience education) from kindergarten to theend of secondary school, while steadilyreducing technical education at thesecondary school level. It also continues totrain young technicians and practicalengineers using long-standing curricula.

There is an urgent need for a new councilor national authority to forecast HRD needsin Israel. It should consist ofrepresentatives from:

� relevant government ministries: theMOI, the MOE and the Ministry forScience and Technology;

� the Industrialists’ Association;� heads of human resources in the Israeli

Defence Force;� the trade unions;� research institutes and universities

(such as the Institute for TechnicalForecasting at Tel Aviv University andresearchers from Ben-Gurion Universityin Be’er Sheva and Bar-Ilan Universityin Ramat Gan).

This organisation should function as alegally defined statutory body, withstructured mechanisms and adequateresources to allow for ongoing forecastingof the HRD needs of the Israeli economy.

Some would argue that it is very difficult topredict what will be the technologicalbreakthroughs of the future and which newprofessions will emerge in an era of rapidchange. Such arguments lead them toconclude that it is better to just let marketforces work and to concentrate on makingthe education and training system able toadapt rapidly to change. But even if thiswere the case, it is still possible to attempta reasonable forecast of the skills andabilities that will be needed in HRD inIsrael, without specifying in which specificindustry or trade people will actually beemployed. It is possible to make an

educated guess about whichcharacteristics will be needed in the future,and as a result design long and short-termpolicies for vocational education andtraining. These characteristics include theability to adapt to rapid change, the abilityfor lifelong learning and personal andinterpersonal skills such as team work,decision-making in situations ofuncertainty, turning information intoknowledge and knowledge into know-how,entrepreneurship and creativity. Theseskills are already needed today and willcontinue to be needed in the futureregardless of whether people are employedor self-employed or which particular branchthey work in. Having an organisation inIsrael which could define these skills andabilities would be a significant help to allthose involved in designing andimplementing TVET curricula.

6.2.2 ACHIEVING GENUINECOOPERATION BETWEENTHE TWO TVET MINISTRIES

One of the biggest challenges facing IsraeliTVET is how to persuade the MOE,through its Administration of Science andTechnology, and the MTDB in the MOI, towork together to draw up a coordinatedpolicy for technical education andvocational training in secondary schoolsand training for young technicians, practicalengineers and adults. Even though theaims of technical education inMOE-supervised secondary schools arenot the same as those of vocationaltraining in the MOI-supervised industrialschools, there are two compelling reasonswhy there should be closer coordination oftheir education and training policies.

First, every year a growing number ofstudents in industrial schools take theMOE-administered Bagrut (matriculation)exams trying for a full matriculationcertificate or at least to achieve the 14credits needed for admission to study fortechnicians and practical engineeringdiplomas. These students routinely sit thematriculation exams under worseconditions than regular MOE schoolstudents. This anomaly must be correctedif we want to offer genuinely equal

51


opportunities to all students in Israel,regardless of the government body incharge of their school.

Second, the recommendations of thePreiss Committee for the examination oftechnical tracks and subjects did notprovide the right answers concerning thecluster of employment-oriented studytracks currently studied at MOE-supervisedschools. It is actually the MOI that has agreat deal of experience and expertise inproviding employment-oriented studies.Real cooperation between the twoministries could lead to more up-to-dateemployment-oriented curricula which wouldbe implemented throughout the vocationaleducation and training system.

It has already been recommended [5] thatall training for technicians and practicalengineers, whether young or adult, shouldbe fully coordinated by the MOE and theMOI. As things stand, each of theseministries has separate bodies forcurriculum planning, supervisingorganisational and management proceduresand granting diplomas. However thegraduates of both systems are officiallyclassified as technicians or practicalengineers and should therefore possess asimilar quality of knowledge and skills tooffer their employers. Thus, even thoughadmission requirements are different foryoung candidates and adult candidates, theprofessional requirements are equivalent forgraduates of both systems. Therefore itwould seem logical to either unify the twosystems or, at the very least, to set up ameans of full coordination between them.

6.2.3 MORE RESOURCES FORMIDDLE SCHOOLS

Average class sizes in middle schools aremuch higher than in primary schools or theupper cycle of secondary schools. Inprimary schools the average number is 30,in upper secondary 27, yet the average formiddle schools is over 35. Such levels ofovercrowding are far from the norm in othercountries with a similar level ofdevelopment [12]. We would argue that it isat precisely this age – 12 to 15 – thatstudents’ attitudes towards their future

choice of studies in the upper cycle aretaking shape. The choices they make nowwill affect their chances of higher educationand a career. Subjects like mathematics,science and technology call for smallerstudy groups so that students can gainpractical experience in laboratories andworkshops. So there is a need for moregovernment investment to bring about asignificant reduction in class sizes at themiddle school level, at least for scienceand technology classes.

In terms of the curricula, we recommendintroducing a new obligatory subject inmiddle school classes in Israel covering thefollowing topics:

� Skills for lifelong learning: How tolearn, logical thinking, how to expressoneself in writing and orally, how towrite a CV and interview skills.

� Getting to know careers and the

world of work: Students will beexposed to different branches ofindustry, trade and services both intheory, and through practical hands-onexperience in the workplace.

� Entrepreneurship skills and social

awareness: There is no doubt thatacquiring an entrepreneurial attitude isextremely useful regardless of whetherthe graduate goes on to becomeself-employed or a salaried worker.Social awareness can give studentsfrom an early age an understanding ofweaker and under-represented groupswithin society and possible solutions forbridging the socio-economic divide.

� An interdisciplinary and

multidisciplinary approach: This kindof approach is an increasingly importantfactor in the design, manufacture andmaintenance of technical systems andprocesses. Students at this age shouldbe made aware of the overlaps betweendifferent fields of knowledge such asbiology, chemistry, physics, electronics,mechanics and computing and, ofcourse – the user interface – the humanbeing. One of the more successful waysof introducing this approach is using amultidisciplinary science-technologyproject. This approach should start in atmiddle schools and continue throughoutsecondary education.

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6.2.4 MAKING TVET TEACHINGA MORE ATTRACTIVE OPTION

Higher status and salaries

It is clear that the Israeli TVET systemneeds to attract better quality teachers andtrain them better. The profession calls forthe ability to teach abstract theoreticalscience and engineering topics, todemonstrate and explain complexsimulations and animations and tosupervise practical experiments inworkshops. Technical teachers andvocational trainers must be open-mindedand ready to update their knowledgethroughout their teaching career in order tokeep abreast of new developments inscience, technology and engineering. Theymust also be flexible and willing to integratenew teaching and learning methodologiessuch as e-learning which cross the bordersof space and time. Consequently they alsohave to be prepared to be contacted bystudents outside of formal teaching hours.

Another important aspect is the competitionwith industry to attract people with the skillsand abilities described above. Industryrewards high-quality manpower withsalaries and bonuses that are much higherthan those to be found in TVET.Furthermore, the social status of teachersand trainers in TVET is not high and iscertainly less than that of engineersworking in industry. This means that thegovernment must give this profession therecognition it deserves and back this up byimproving pay and giving bonuses forspecial achievement. Time for updatingskills should be counted as an integral partof their working day. Only then can wehope to attract the high calibre people theIsraeli TVET system needs.

Tougher admission criteria

At the same time, we recommend thatadmission criteria for people wishing to trainas technical teachers be made significantlytougher than they are today. Only thoseindividuals with above average personalskills and the ability to adapt to a fast rate ofchange should be chosen. This could bedone by raising the required scores in thepsychometric test commonly used in Israel,in the matriculation certificate in general orfor certain subjects in particular, or byadapting entrance exams and personalinterviews. Offering scholarships and othereconomic or professional incentives couldalso help attract outstanding students in thescience and engineering faculties to teachertraining.

6.2.5 THE IMPORTANCE OFSTRIKING THE RIGHTBALANCE

In conclusion, Israel stands at a significantcrossroads. The challenge it faces is howto strike a balance between two conflictingdemands. It must sustain an economybased on manufacturing industry and theexport of ICT and advanced technology, amarket-driven economy supported by askilled and educated workforce. But it alsoneeds to reverse the growing inequality ofIsraeli society and to give a chance toweaker populations in the periphery, theminorities and single-parent families. Amore balanced approach to socioeconomicpolicy implies substantial long terminvestment in TVET systems and HRD. Ifthis is done, it will contribute to the futuredevelopment of a more cohesive Israelisociety and a more advanced economy asa whole.

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ACRONYMS

CPEs Centres for the Promotion of Entrepreneurship

ETF European Training Foundation

EU European Union

GDP gross domestic product

HRD human resources development

ICT information and communication technologies

IDF Israeli Defence Force

Mehalev (From the Heart) From Dependence on Welfare to Ensured Employability

MHT Technical and Training Department (of Israel’s Aircraft Industries)

MOE Ministry of Education, Culture and Sport

MOI Ministry of Industry, Trade and Labour

MTDB Manpower Training and Development Bureau

NGO non governmental organisation

NIS new Israeli shekel (Israeli currency)

NITT National Institute for Technical Training

OECD Organisation for Economic Cooperation and Development

PISA Programme for International Student Assessment

SME small and medium-sized enterprise

TIMSS Trends in International Mathematics and Science Study

TVET technical and vocational education and training

US United States of America

VET vocational education and training

55

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EUROPEAN TRAINING FOUNDATION

TECHNICAL AND VOCATIONAL EDUCATION ANDTRAINING AND THE LABOUR MARKET IN ISRAEL

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TECHNICAL AND VOCATIONAL EDUCATION AND ......EXECUTIVE SUMMARY The aim of this report is to contribute to a better understanding of the current status of technical and vocational education