Creating an effective workforce

The latest statistics about the state of education and youth unemployment paints a bleak picture in Pakistan. Shockingly, more than 26 million children are out of school, a number greater than the individual population of 150 countries in the world.

Alarmingly, about 70 per cent of children in the country cannot read and understand text, as reported by Unicef. The youth unemployment rate is double the national average unemployment rate and further exacerbated by the annual influx of more than 1.5 million new individuals into the labour market.

The economy cannot absorb such a great labour force with a mere 2-3 per cent growth rate. In the real term, the growth rate is negative as compared to the rise in population. The country and the economy cannot afford uneducated and unskilled labour anymore. That is why the prime minister has recently declared an education emergency in the country. However, a clear implementation strategy for reform remains elusive.

In the context of rapidly changing labour markets and evolving skills requirements due to technological progress, globalization, climate change and demographic transformation, the imperative to educate and skill our youth has never been more urgent. The conventional educational approaches are proving inadequate in preparing our workforce for the evolving demands of the modern world.

Drawing lessons from some successful models of countries that have effectively overcome similar problems, it becomes clear that a robust TVET (technical and vocational education and training) system is essential. Such a system can ensure job creation and productivity rise. Unfortunately, the existing TVET system in the country cannot fulfil the needs of the market and should be completely revamped.

A new joint report by the International Labour Organization (ILO), World Bank and Unesco shows that the TVET system in low- and middle-income countries do not match the current skills and labour market needs. Resultantly, students are also not well-served and training often falls short of expectations due to outdated curriculum and equipment, underprepared or unsupported teachers, difficulties facing learners, and weak incentives for providers.

TVET is commonly considered a second-tier educational track to which challenged learners are directed. This can discourage potential students from enrolling or firms from hiring TVET graduates. The low capacity of enrollment in the TVET sector is also one of the major hurdles. The TVET sector in Pakistan has only the capacity to absorb 0.45 million students, making it hard to accommodate out-of-school children.

At the intermediate level, 60 per cent of students are deprived of education. They need effective skills and lifelong learning systems to empower them to aspire to better jobs, better pay, better lives and ultimately social justice. To gain the most benefit from the demographic bulge, the country needs to follow some successful TVET systems of the given countries for empowering and providing skills to young people.

For instance, Germany’s TVET sector is considered one of the most successful ones in the world. In Germany, 9- or 10-year (general) education is compulsory, starting from the age of six and completing at the age of 15 or 16 years, finishing lower secondary education. For upper secondary education, 52 per cent attend general education courses, while 48 per cent of students enrol in vocational programmes, highlighting the importance of technical education.

Students in vocational programmes are trained in the dual TVET, where theoretical classroom instruction is combined with practical workplace training. According to the Organization for Economic Cooperation and Development (OECD), youth unemployment is not a problem in Germany due to the country’s strong ‘dual’ apprenticeship system.

Similarly, in Austria, compulsory education starts at the age of six and lasts for almost nine years. After which the students can choose between two pathways, either the vocational training track or the general education track. Only 20 per cent of students continue the general education track, while 40 per cent are trained in the legally recognized apprenticeship occupations in the dual system and the remaining 40 per cent opt for a VET school or college. Overall, 80 per cent of students choose TVET education while only 20 per cent go for general education. Students in TVET spend 80 per cent of their learning time in the company and only 20 per cent of their learning time in the vocational school.

Likewise, in Switzerland, compulsory schooling begins at the age of four and is completed typically at the age of 15. After completion of compulsory education, only 34 per cent attend general education while 66 per cent are enrolled in a vocational programme. Sixty per cent of the 66 per cent take part in a combined work-based and school-based dual programme. Also, in the Netherlands, only 30 per cent of students opt for general education while 70 per cent join the TVET pathway. In Norway, 48 per cent of students go for general education and 52 per cent select technical and vocational education.

In these countries, the TVET sector is strong and plays a vital role in empowering the young people of these countries. Skilled labour means high productivity and a strong economy. The rate of youth unemployment is extremely low in these countries because their education system is structurally linked with industries through an apprenticeship system. The individual transition from the educational system to the job market is smooth.

Developing countries like Pakistan are creating an army of unemployed youth due to the absence of an effective TVET system. According to a PIDE report, more than 33 per cent of country-educated young people have no jobs. The main reason is that in Pakistan, 96 per cent students are enrolled in general education while only 4.0 per cent get enrolled in technical or vocational education.

If the country wants to improve its economy and reduce the unemployment of young people, unwavering attention, and full dedication should be diverted towards technical education. The country needs to spend more on TVET as currently it is spending far below the average 0.2 per cent of the GDP spent by developing countries. Proper investment in this sector can stop the ever-falling HDI ranking of the country which has moved down to 164 out of 193 this year.

Policymakers need to think about converting the youth bulge into an opportunity for sustainable economic growth and prosperity rather than making it a liability. This can be done through an effective and efficient TVET system, which provides hands-on experience. It will not only equip the youth by imparting basic skills and knowledge required for today’s job markets but also be able to adapt to the technological breakthroughs of the rapidly changing world.

The writer is a lecturer of

economics at KP-TEVTA and tweets/posts @wajidislam01