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Continuum towards modern tvet system
The document summarizes key policies and initiatives that helped skills development systems succeed in Republic of Korea, Singapore, and other countries. It discusses how the Republic of Korea established company high schools and provided tax incentives for private sector training. Singapore invested heavily in technical education and established industry-training partnerships. Both countries aligned education with economic planning and workforce needs.
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Continuum towards modern tvet system
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- 2. The government hasa vital role in initially funding and establishing effective technical and vocational education and skills development systems. Partnerships with the private sector that promote training contracts with mandatory placements improve job prospects of trainees. There is a need to increase the share of students benefiting from apprenticeships and traineeships with employers. Policies that enable user choice in training for employers and trainees help to increase competitiveness and effectiveness of training.
- 3. Workforce development fundsto finance training are powerful means of linking training with the world of work and improving relevance of training. The prestige of technical and vocational education and training can be enhanced through new credentials such as applied degrees as well as through higher wage realization for skilled workers-partnerships with employers is thus crucial. Several pathways for skills development need to be available to youth with flexibility and opportunity to acquire skills through modular qualifications. Flexibility and responsiveness of training institutions to the evolving needs of industry are crucial attributes of successful skills development systems.
- 4. The Global TalentIndex Report of the Economist Intelligence Unit (EIU 2012) reveals that more than half the employers surveyed are devoting more resources than 2 years ago to invest in talent development-a phenomenon more pronounced in Asia, with 60% of employers spending more on developing employees.
- 5. The Hays globalskills index incorporates seven indicators that provide an assessment of the efficiency of the skilled labor market in countries and whether employers find it easy or difficult to recruit skilled labor (Hays plc 2013):
- 6. Education flexibility: whethereducation systems can adapt to meet organizations’ future talent needs, particularly in the fields of mathematics, science, and literacy; Labor market participation: measures the degree to which a country’s talent pool is fully utilized; Labor market flexibility: assesses the legal and regulatory environment faced by businesses in filling talent gaps; Talent mismatch: measures the mismatch between skills needed by business and skills possessed by the labor force;
- 7. Overall wage pressure:whether wages are keeping pace with historic trends; Wage pressure in high-skills industries: the rate at which wages in high-skills industries outpace those in others; and Wage pressure in high-skills occupations: a measure of wage premium paid in high-skills occupations, indicating shortages of key talent. The analysis arising from the Hays index suggests that there is need for flexibility not only in education systems (i.e., whether the education system can adapt to meet the changing needs of employers) but also in labor market policies that allow employers to determine wages, adopt measures for short- term employment, and draw talent through immigration.
- 8. Partnership with industryis found to be fundamental to securing relevance of training: industry must play an active role and TVET and skills development need to be aligned with workforce needs. Availability of financing from different sources-government, students and employees, and the private sector-is vital for the success of TVET and skills development systems. Finally, since continuously matching supply and demand is never easy, crucial attributes of successful systems are flexibility and responsiveness to the evolving needs of industry.
- 9. brief descriptions ofthe historical journey and key features of skills development systems of Australia, Germany, the Republic of Korea, and Singapore. Partnership with industry is found to be fundamental to securing relevance of training: industry must play an active role and TVET and skills development need to be aligned with workforce needs
- 10. Republic of Korea Ittook the Government of the Republic of Korea only around 40 years to have a good skills development system, essentially because of a state-led system and enabling policies for private sector participation for training workers. In the 1960s, company high schools were established to allow employees to work in factories during the day and study at night. From the mid-1970s to the early 1990s, the government provided incentives in the form of exemption from tax levies, and in return companies were required to train the workers. The training support was supplemented with employment insurance that included a job placement service, skills and training service, and unemployment assistance service. Historical background
- 11. Republic of Korea Thegovernment has a comprehensive economic plan together with effectively combined economic and industrial forecasting and labor force planning. Industry forecasts of promising sectors in a 5–10 year horizon were combined with labor force planning. Forecasts of future demand in specific sectors were linked to investments in the education subsectors to expand and improve primary and secondary education. The government played a very important role in promoting skills development to match the economic aspirations of the country. Key policy priorities and initiatives that helped successful skills development In 2011, responding to high rates of college graduate unemployment, the government introduced the ”work first, study later” policy, which included incentives to companies to hire well-prepared high school graduates and offered counseling for students.
- 12. Republic of Korea Governmentpolicies enhanced the prestige of vocational education, continuing this policy to strengthen secondary vocational and technical training. Twenty-one Meister high schools were opened first in 2010, with 38 in operation in 2013. The aim is to encourage students to see Meister schools as a high-status alternative where students are labeled young “Meisters,” the German term for master craftsperson. As additional incentives, students enjoy free tuition and room and board. Meister schools account for less than 7% of all vocational high schools in the Republic of Korea, yet the early results are promising. At least 90.8% of the first generation “young Meisters” have jobs lined up, even though they have not yet graduated (McKinsey & Company 2013). Students learn both in school and in a practice environment. Students are also taught “soft skills.” They graduate with the equivalent of 2 years’ work experience and/or community college experience, which is an attractive blend. The Meister program can be a pathway to university as well as to the workforce. Key policy priorities and initiatives that helped successful skills development
- 13. Singapore Singapore’s industrialization programstarted in the 1960s. A number of initiatives were undertaken, and an important landmark was the establishment of the Industrial Training Board as a statutory board. Greater autonomy and flexibility were given to technical education, allowing a more coordinated and strengthened system of specialized education focusing on technical skills rather than on general vocational education. The government offered incentives through the Economic Development Board for the establishment of government training centers in collaboration with multinational companies in the 1970s. The government also received technical assistance from France, Germany, and Japan to establish institutes of technology in the late 1970s and early 1980s. Historical background
- 14. Singapore This gave riseto Singapore’s current vocational and technical education (VTE) model. Another crucial policy change was the decision by the Ministry of Education to upgrade and reposition VTE as a postsecondary educational institution, which led to the establishment of the Institute of Technical Education (ITE) in 1992 and its transformation as a world-class educational institution. Historical background
- 15. Singapore Singapore continues toinvest heavily in education and training, including VTE. Through the ITE, it exerts special efforts to address the needs of the lowest 25% of a school cohort who are less academically inclined. The ITE model added choices, diversity, and robustness to the Singapore education system. Various industry-based training schemes (i.e., traineeship, approved training centers, and certified on-the-job training centers) were established to ensure relevance and cost-effectiveness. The government helped to improve the image of TVET through campaigns on “using the hand,” “Top of the Trade” television competitions, and “Apprenticeship of the Year” awards. The government helped ITE to transform through organizational excellence and modern campuses. Key policy priorities and initiatives that helped successful skills development
- 16. Singapore Similar to theRepublic of Korea, Singapore put in place policies to align education systems with economic development. The economic development board identified key “winner” industries for which targeted efforts were made to develop the requisite skilled labor force. Although Singapore had its share of challenges, there were many successful areas, such as electronics, chemicals, precision engineering, and biomedical technology. In addition to the ITE, the government also set up a vibrant and responsive polytechnic sector to offer industry-relevant and demand-driven programs to train technologists to meet the changing workforce needs of industry as it moved up the value chain. Key policy priorities and initiatives that helped successful skills development
- 17. Singapore The joint establishmentof centers of excellence in various technologies facilitated exchange of technology, expertise, and training resources. The government funds and supports employment training for school graduates and school dropouts to continue their education and training. The Workforce Development Agency formed in 2003 was mandated to assist people in finding productive employment by providing new opportunities for training to augment skills. The government provides subsidies to cover 80%–90% of the training cost and the employee pays the rest. Singapore provides several government incentives for companies to send people for training. Key policy priorities and initiatives that helped successful skills development
- 18. Germany Germany’s TVET systemhas been heavily based on apprenticeship for centuries. Over time it has been modified and transformed as a very flexible and stable system. In Germany, because of the very long tradition and good reputation of the TVET system, TVET graduates can play important roles in the community or government. TVET graduates are highly skilled, and they enjoy increased labor market access and incentives. People trained are loyal to the company and vice versa because both benefit from this economically stable and profitable situation. Loyalty to a company means the return on investment of training has already been paid with two-way benefits. Historical background
- 19. Germany Germany’s TVET systemhas great appeal, unlike other countries where TVET systems lack attractiveness. In Germany, TVET covers between 50%–60% of an age cohort. The image and reputation not only of the TVET institutions but also of TVET graduates are excellent. The high salaries earned by TVET graduates and their many job opportunities contribute to the attractiveness of the system. The most important feature of the system is the role that companies play—it is basically a company-driven system. The companies share 75% of the costs of training while 25% comes from the government, which allows apprentices and trainees to be paid a salary that increases from year to year. Key policy priorities and initiatives that helped successful skills development
- 20. Germany Modular qualifications wereintroduced in order to make it easier for young people to enter training and gradually progress in qualifications. They are mainly aimed at socially disadvantaged young people and those who find learning difficult. The TVET system allows permeability along several pathways for skills development. In recent years, permeability improved, but in detail there are still some obstacles. Generally speaking, however, students can switch from one channel to another, such as from TVET to general education or vice versa. Another unique feature is the task sharing among companies, industry chambers, public institutions, and TVET schools. The TVET system is very integrated; students spend 1.5 days in school and 3.5 days in actual workplaces. Key policy priorities and initiatives that helped successful skills development
- 21. Germany A program called“Completion and transition—education chains leading to vocational qualifications,” launched in the summer of 2010, includes career-start counseling, a vocational orientation program, and the Job Starter program for initial vocational training to reduce dropout rates. The Employment Opportunities Act of 2010 introduced Training Bonus, a financial subsidy that decreases the cost of initial vocational training and is provided to employers that offer additional training places for young people (UNESCO–UNEVOC 2013). Key policy priorities and initiatives that helped successful skills development
- 22. Skills Development forDeveloping Asia–Pacific: Toward Promising Approaches Developing skills required for economic growth and moving from low to middle income and from middle to high income levels Issues and Areas for Action ”How To” Developing skills required for economic growth and moving from low to middle income and from middle to high income levels Strengthening the base of higher- order skills in the workforce Invest in science, technology, engineering, and mathematics at secondary and postsecondary education levels. Invest in postsecondary and tertiary skills with appropriate qualifications that attract students.
- 23. Skills Development forDeveloping Asia–Pacific: Toward Promising Approaches Enhancing private sector participation and partnerships to scale up training provision and increase relevance of training and job placements Issues and Areas for Action ”How To” Provide skill vouchers to finance training of target groups by private sector providers. Establish training contracts with private providers with placement based payments. Develop skills assessment systems that incorporate industry requirements.
- 24. Skills Development forDeveloping Asia–Pacific: Toward Promising Approaches Increasing opportunities for training for the disadvantaged and promoting TVET for inclusive growth Issues and Areas for Action ”How To” Undertake affirmative action to increase access to training for students and workers from poor and disadvantaged backgrounds. Support training of workers for the informal labor markets. Increase opportunities for training in high-growth sectors for the rural youth.
- 25. Skills Development forDeveloping Asia–Pacific: Toward Promising Approaches Strengthening soft skills, language skills, and information and communication technology (ICT) skills along with technical skills to improve job readiness Issues and Areas for Action ”How To” Incorporate into the curriculum the teaching of soft skills and ICT skills at the secondary stage with appropriate assessment mechanisms.
- 26. Skills Development forDeveloping Asia–Pacific: Toward Promising Approaches Issues and Areas for Action ”How To” Developing skills development pathways that enable acquisition of training and updating of qualifications Introduce modular training programs for skills updating and upgrading. Put in place recognition of prior learning and pathways between formal and informal learning and institutional and workplace-based training. Develop qualifications based on competencies required by industry.
- 27. Skills Development forDeveloping Asia–Pacific: Toward Promising Approaches Issues and Areas for Action ”How To” Improving employment services and job placements Reform and privatize employment exchanges; focus on ancillary services that link training with actual job placement.