Growing importance of TVET programmes as youth unemployment rises in developing economies

Currently, TVET programmes lack efficiency as there is a wide mismatch in skills taught and the skills demanded by employers in today's job landscape.

A joint study by the World Bank, the International Labour Organization (ILO), and UNESCO, the Building Better Formal TVET Systems: Principles and Practice in Low- and Middle-Income Countries report analyses technical and vocational education and training (TVET) challenges and reforms in developing economies globally.

In a press release by ILO on 12 July 2023 (Thursday), Mia Seppo, Assistant Director-General for Jobs and Social Protection at the ILO, noted the unprecedented widening inequalities both within and between countries, a rise in poverty, a complex youth unemployment problem, and a risk of informalising the formal economy as among the challenges being faced globally at present.

In order to overcome these challenges and improve social justice issues, effective skills and lifelong learning systems are key mitigators. Additionally, this also encourages individuals to strive to have better jobs, pay, and lives. In efforts to develop resilient national skills policies and systems, ILO has recently released its Strategy on Skills and Lifelong Learning 2030, and adopted a new international labour standard on quality apprenticeships, supporting Member States in finetuning national apprenticeship systems.

Most prominently, the study revealed that TVET systems in many low- and middle-income countries are ineffective in providing skills demanded by the labour market, and are unprepared to meet the large rise in demand for TVET in the coming years.

Against the backdrop of evolving labour markets and skills, technological progress, demographic transformation, and climate change, the need for well-performing TVET is especially significant to ensure smooth job transitions. This is critical as global youth unemployment stands at 16% in 2022, significantly higher than the overall unemployment rate. These averages mask large disparities across countries, particularly in low- and middle-income countries.

Despite TVET's great importance and high potential, the report showed training often falls short of expectations in low- and middle-income countries due to difficulties facing learners, unsupported teachers, and weak incentives for providers. The findings also reveal that in the fast-growing youth population, almost one in four youths are not in education, employment or training worldwide, while this statistic raises to almost one in three in young women.

The report cites many factors affecting the performance of TVET, such as access, equity, quality, and relevance. Challenges were explained further as:

• Many institutions focus on what they know how to provide, which is often technical skills, which do not meet the needs of students or firms, which are cognitive, digital, or entrepreneurship skills.
• Moreover, students are also not well taught by under-prepared teachers and outdated equipment.
• Critically, TVET is commonly considered a second-tier educational track to which challenged learners take. This preconception can deter potential students from enrolling or firms from hiring TVET graduates.

While development priorities for TVET differ across countries, the report encourages countries to prioritise the needs of learners and enterprises, while realigning financing to reward reforms. As these reforms may take time to show results, the report recommends countries to identify and pursue quick wins by starting with priority sectors.

It notes that specifically in low- and middle-income countries, successful TVET reformation can be achieved by leveraging new data and technologies, and reflecting on lessons learned from earlier experiences, including from the COVID-19 pandemic. Given that low- and middle-income countries spend less than 0.2% of GDP in TVET compared to 0.46% in high-income countries, mobilising private financing can infuse additional resources into TVET.

Over the next two decades, demographic trends and higher completion rates at lower levels of education are likely to cause an exponential increase in the number of TVET students. In Burundi, Mali, and Uganda, the number of secondary TVET students is expected to more than quadruple, while in Niger, the number is expected to rise ten-fold. As of today, many of these countries already face increasing pressure from the high proportion of youths not in education, employment, or training.

"Youth unemployment is one of the biggest challenges of our times, and one that demands our unwavering attention, collective resolve, and full dedication to inclusive and accessible lifelong learning and upskilling," said Borhene Chakroun, Director, Division for Policies and Lifelong Learning Systems, UNESCO.

"Through TVET we can equip the youth with the skills and knowledge they need not only to excel in today’s job markets, but also to be able to capitalise on technological breakthroughs and stay one step ahead in a rapidly changing world."

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