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Technical and Vocational Education and Training in Workforce
Development
Anup Bhurtel
Managementt Program, Training and Education Department,
Training Institute for Technical Instruction (TITI)
Sanothimi, Bhaktapur, Nepal
Email for correspondence: abh@titi.org.np or anupbhurtel@gmail.com
There are many contributions of Technical and Vocational Education and Training (TVET) on a
nation’s economy. TVET has been proved as the key for skill development. With its feature focused
on specific occupation, it has allowed individuals to find skill related jobs or start own employment.
TVET stands a major player in economic growth of a nation through development of workforce and
rise in employment rate. On one hand, TVET’s role stands on employment generation in the job
market while on the other hand, TVET is regarded more significant to promote self employment
where employment opportunities are scare and individuals are enrolled in informal or agricultural
sector. This paper tries to explore different contributions of TVET on employment in the labour
market and in uplifting self employment through the development of relevant skills and the different
kinds of contributions it gives and importance it holds depending upon the economic development
of the nations.
Introduction
A nation’s economy is driven by its active labour
force. The utilization of the productive workforce
helps in development of the nation as a whole.
Education is identified as a significant factor in the
economic growth of a nation but the developing
nations find technical and vocational education and
training equally important due to poor results in
general education and substantial number of drop
outs (Adams, 2007). Unemployment due to skill
gaps or absence of appropriate skills is found even
in the labour market of developed nations. UNESCO-
UNEVOC (2013) has stated that the potential labours
find difficulties in getting employment in the labour
market due to lack of sufficient skills. The workforce
with higher general education also suffers rejection
for employment due to skill deficiency such as
cognitive or non cognitive skills and technical skills
demanded by the industries for entry level posts
which call for implementation of TVET programs
to such potential population.
Abstract
Key words: Technical education, vocational training, workforce, economic growth
Journal of
Training and Development
2015, Volume 1, Issue 1
ISSN: 2392-456X(Print)
ISSN: 2392-4578(Online)
TITI
The industry based education and trainings conducted
with the objectives of providing specific employment
in the labour market have been identified more
relevant and fruitful to cater the needs of unemployed
population. From economic perspective, TVET has
been termed as one of the major keys to unlock the
problems of unemployment and open the vault of
economic acceleration through skill development
both in developed nations or
developing/underdeveloped nations. TVET has
numerous contributions to economic sustainability
and growth which may or may not be similar in
countries across the world. With the skill
development, possibilities of employment
opportunities for them proportionally grow which
ultimately leads to workforce development. Some
individuals may choose to work in the job market
while some may prefer to work on his/her own and
such decisions vary with the country’s current
situation but either way it helps the nation’s economic
situation through income generation and tax revenues.
TVET and skill generation
The strength of workforce of any nation can be
defined by its skilled and semi-skilled labour forces
more than unskilled labour force and one of the key
characteristic features of TEVT is its courses which
impart skills applicable in particular employable
trade. Shreeve, Gibb and Ribeiro (2013) has identified
human capital is considered a driving factor for
economic progress and emphasized on Investment
in TVET to generate skilled resources.
Vocationalisation as an inclusion of TVET is a tool
for Human Resource Development significant for a
nation’s economic competitiveness. Human resources
are crucial as they mobilize other resources be it
financial resources, or natural resources to enhance
economic pace and skilling human resources is the
first step for its true effectiveness.
Australian government has set up nexus between
post-school qualifications and labour productivity
emphasized on optimum use of produced skills in
the labour market. Through a revised policy,
Australian government with its industry led TVET
has diversified qualifications with occupations
(Pavlova & Maclean, 2013). The authors remark on
observable relationship between TVET and Gross
Domestic Product (GDP) as well. The TVET system
in Singapore was restructured to address the high
technology and capital intensive industries in 1990s
and service sectors in 2000s and skilled labour
workforce was produced accordingly. Establishment
of ITE (Institute of Technical Education) and an
industry driven TVET system in Singapore has
allowed it to produce world class technical workforce
(Seng, 2011). TVET has been used by the
governments of advanced economies to produce
skills in a diverse occupations ensuring the nation
gets skills in all the fields required and modified
with the changing economies.
Hanushek and Wößmann (2008) explored that that
Vocational education plays important part in
developing skills related to jobs for specific
occupations. Malamud and Pop-Eleches (2010) found
a high scope for Vocational Education and Training
graduates in Romania in craftsmanship related
occupation. Similarly, Pongo, Effah, Osei-Owusu,
Obinnim and Sam (2014) advocate on positive impact
of skills development through Integrated Community
Centre for Employable Skills (ICCES) TVET in
Ghana. With various courses on Technical education,
agricultural and various other vocational courses
varying between 2 to 3 years among 5000 youths,
the acquisition of employable skills has allowed
them to access of the labour market, get employment
and generate income for socio-economic upgrades.
Netherlands Initiative for Capacity development in
Higher Education (2010) implements strategy for
capacity building in TVET in 23 developing countries
that include Afghanistan, Bhutan and Bangladesh
from South-east Asia; which confirms that TVET
can generate innovative capacity of such nations if
provided with career counselling and soft skills such
as creative skills that can be used nationally to found
new technological solutions or be exported to
developed nations. As an essential complement to
general education, TVET equips labour force with
necessary skills to grasp opportunities in the job
market. Despite having abundance of natural
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resources, underdeveloped or developing countries
fail to attract Multinational enterprises through
Foreign Direct Investments which cause the foreign
investors to relocate due to the dearth of pertinent
skills and knowledge in the labour market (Farstad,
2009). This scarcity of skilled workforce has therefore
caused development partner and donor agencies to
come up with projects on TVET and skill
development in knowledge-intensive economies such
as India, China and South Africa (European
Commission, 2012).
Identifying importance of TVET for skill
development
Developing nations with bigger economies require
skill development to maintain growth strategy while
developing nations with small economies and
underdeveloped nations need skill development for
entering new growing industries (Martinez-Fernandez
& Choi, 2012). Developing nations have been
emphasizing the need of TVET and including it in
the country’s policies and development plans. A
national Skills development policy has been
developed in Bangladesh in which TVET system
was classified into four segments which are 1: public
training provided by ministries, 2: private or
commercial training institutes 3: Non-government
organizations and 4: Industry based institutes to
serve more than 50 percent of the workers who have
no education (Tansen, 2012). Training programs are
conducted to develop skills in youths. National
Planning Commission Nepal 2010 has put forward
its objectives to develop and expand the skills for
employment. (Gajurel, 2011). TVET despite being
costlier than general education is considered more
industrious as it provides employable skills and thus
holds instrumental values for workforce development
(Neupane, 2011).
TVET and employment in the Job Market
The key purpose of TVET is to offer the courses
contained with relevant skills to fit in the labour
market. The set of skills the graduates acquire help
them be saleable in the industries and get
employment. Skill generation offers the graduates
with more opportunities to get well paid and
productive jobs thus increasing quality of lives
(Netherlands Initiative for Capacity development in
Higher Education, 2010). Karki (2011) argues that
both soft skill and hard skill development hold a
significantly positive nexus with employment. King
and Palmer (2008) also identify positive relationship
of skill development and productive workforce.
Productive and skilled workforce has access to labour
market for decent jobs which then has a chain effect
on economic growth. Properly functional TVET
makes the human resources skilful and skill
empowerment of the labour force therefore makes
them productive.
TVET is taken as a tool for generating job
opportunities and income both in formal and informal
sector and thus holds more significance to restore
economic stability during the financial crunch
(Netherlands Initiative for Capacity development in
Higher Education, 2010). TVET helps raise
employment opportunities for developing nations
especially in rural areas. TVET is taken as a strategy
to integrate youth in Cambodia’s deprived areas for
economic growth. The South Asian nations: Pakistan,
Nepal, Bangladesh and Sri Lanka that face high rate
of unemployment heavily relies on foreign
employments for sustainability and thus can benefit
from skill centred TVET programs to prepare for
foreign employment and also to implement youths
in the local market (Martinez-Fernandez & Choi,
2012). Tan and Chandrasiri (2004) has found out
that unemployment rate has declined through formal
trainings, and a significant positive relationship exists
between TVET sector and the labour market; higher
yield of earnings on investment of training and
facilitation of school to work transition in Sri Lanka.
The prevalence of Competency Based Training in
TVET in stronger economies has allowed the
individuals to move to other jobs within the industry
rather having to stick with one lifetime thereby
bringing flexibility in them to cope with new
environment and transferring skills and knowledge
to new situations and environment. This has thus
allowed the development of competencies in workers
more than just the knowledge acquirement
strengthening their opportunities for employment
while in poor nations, TVET still suffers poorer
image due to misalignment of curricula and the
labour market and poor resources making it
comparatively more difficult for creation of
employment opportunities (Netherlands Initiative
for Capacity development in Higher Education,
2010). Thus, a strong policy embedded TVET system
holds a substantial significance in underdeveloped
and developing countries where population
graduating in general education is minimal.
If stressed on industry-driven curricula, TVET can
be an impetus for reduction in unemployment and
achievement of Millennium Development Goals.
The potential labour force in developing nations face
a serious gap in knowledge about emerging
technologies and innovation in the respective
industries accessed by developed nations and the
transfer of knowledge and skills through TVET in
addition to soft skills can be the solutions to bring
technological consistency (Netherlands Initiative for
Capacity development in Higher Education, 2010).
TVET with implementation of improved curricula
with proper resources not only produces competitive
workforce in developing countries to make them
globally competent with high chances of getting
decently paid employment, but also benefits the
multinational enterprises and consumer markets of
developed nations which have been consuming the
goods and services produced by developing nations
be it in garment industries or IT industries through
enhancement of quality and reduction in overhead
costs with modern technology. The skill development
in developing nations therefore encourages FDI with
inflow of technology and capital necessary to boost
the country’s economy (Kurtishi-Kastrati, 2013).
TVET in Self Employment
With the swelling working population and thus
increasing competition, shrinking job opportunities
in public organizations, the number of self employed
individuals is on the rise (German Federal Ministry
for Economic Cooperation and Development, 2005).
The working population facing difficulties in finding
skill related jobs be in it a private or public
organization opt to migrate to places with better
opportunities, or be self employed starting up with
small or medium enterprises. King and Palmer (2008)
explain skills development and TVET as the means
to gaining employability in the job market or self-
employment and boosting productivity. TVET or
VET shares common significance of promoting
livelihoods, works and self employment.
Low unemployment rates have been discovered
among youth population with strong TVET policies
in nations such as Germany and Austria where TVET
programs are embedded with programs to promote
self employments and apprenticeship while Ireland,
Spain and Greece in the very Europe suffered around
50 percent unemployment due to lack of decent job
scopes discouraging the individuals and forcing them
to migrate within European Union (UNESCO-
UNEVOC, 2013). Thus, TVET has important part
to promote self employment to address such
productive population. In France, government not
only has continual vocational education that include
programs for individuals interested in small business
enterprises and self employment, but also aimed at
minimizing taxes and financial costs for the small
businesses and self employed individuals (UNESCO-
UNEVOC, 2015).
In underdeveloped and even developing nations that
face unemployment problems, TVET programs
included in national strategic plans can foster self
employment for economic growth. In Bangladesh,
empowerment of self employment through TVET
has already been included in national employment
policy (Tansen, 2012). The notable existence of self
employment and unorganized forms of employment;
and informal economic sector in Nepal without
counselling services has led CTEVT and ADB to
operate ‘skill for employment’ project as a strategy
to vitalize poverty reduction (Kafle, 2007). Some
projects are implementing enterprise based vocational
training in Nepal (Lamichhane, 2013). To promote
self employment, entrepreneurship courses are
equally felt necessary. Inclusion of courses related
to entrepreneurship in formal as well as informal
TVET institutions also foster self employment in
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poor countries (UNESCO-UNEVOC, 2006). The
labour market of Nepal characterized by lack of
skilled workforce for the local market, small portion
of employment opportunities and increasing number
of youths going abroad without adequate skills
required for decent foreign employment has made
the existing population realize the need of self
employment through family business or
entrepreneurship (Pant, 2008).
The informal sector featured by low level entry
requirements and operations in small scale, absence
of records, regulations, recognition and protection
is constantly expanding in developing nations (Onwe,
2013). There is a massive existence of informal
economy in African nations (Palmer, 2009;
Department of human resource science and
technology division of human resource and youth,
2007). Palmer (2009) has put forward the need of
skill generation through TVET to endorse self
employment in Ghana as the nation attempts to
coordinate the agencies concerned with skill training
and venturing self-employment and concentrates in
the formal sector to channelize the majorly occurring
economic activities for growth in private sector. Role
of self employment in informal sector was identified
more than a decade ago. ILO (1998) observed higher
opportunities of self employment in the informal
economies than the formal economies in the
developing countries and that training as a significant
means for those individuals in an informal economy.
Broussar and Tekleselassie (2012) states TVET in
Ethiopia has helped promotion of self-employment
through its course design to match the industry needs
and trainees’ needs to promote the graduates to
venture their own Micro and Small Enterprises.
Micro and Small Enterprises which largely represents
informal economic sector has been identified by the
Ethiopian government as important sources of
employment and job creation and TVET has helped
addressed the major economic sector of the nation.
Conclusion
It is necessary to mobilize the workforce into
productive employments to accelerate the velocity
of economic progress and for that, to equip these
labour forces with necessary skills and knowledge.
TVET provides youths with skills on specific
occupations which is vital for employability and
holds more significance for the youths without higher
level of education. Apart from natural resources and
market, multinational enterprises seek skills in local
workforce and TVET helps the potential workforce
with necessary skills to match job requirements in
such companies. It is taken as the tool for human
resource development through skill empowerment
and for restoration of economic stability during
financial crisis that leads to overwhelming rise in
unemployment.
The role of TVET is visible in each economy but
the importance is different in advanced economies
as compared to emerging or poor economies.
Developed nations with bigger economies require
skill development to maintain growth strategy while
developing nations with small economies and
underdeveloped nations need skill development for
entering new growing industries. TVET in developed
or booming economies allows youths who opts to
discontinue higher education and find suitable job;
and those who wish to start earning earlier since
general education leads to further education and
industry oriented TVET programs supported by
strong policies and resources help them find
occupation of their specialties. Besides, it allows the
labours higher mobility within the industries which
enhances their employment opportunity and makes
them competent through transfer of skills and
technology. In emerging or poor economies, TVET
holds different kind of significance. It is counted as
one of the important strategies to solve the problem
of unemployment and unskilled workforce. Many
south Asian nations that rely on remittance need
TVET programs to prepare the populations seeking
foreign employments with necessary skills or help
them compete in the local market. Self employment
has been encouraged through TVET with suitable
policies in advanced economies to maintain the
unemployment rate at minimal rate and promote
small and medium enterprises among its population
but it holds more significant in poor and developing
nations. Considering the facts extracted from
literatures showing inability of such nations to address
the rising population of unemployment, self
employment through TVET paralleled with
entrepreneurship courses is its only key solution.
Since the contribution of TVET in these nations has
still not felt comprehensively, it still has more roles
to play in employment sector.
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