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Enhancing Skills in the Eastern Caribbean Cynthia Hobbs, Sr. Education Specialist World Bank, November 2007 Overview • Why should we care about skills? • School matters • Preparing youth for the labour market • Improving the link between school and work The OECS economy is changing 100% 90% 19 16 15 Govt. services 80% Private services Share of GDP 70% 60% 53 61 64 50% Other industry 40% 30% 20% 10% 12 7 14 7 Manufacturing 17 14 10 6 7 1980 1990 2000 0% Agriculture Source: World Bank (2005) based on ECCB data New service jobs demand skilled workers Workers by education level per economic sector (Caribbean) Agriculture Food processing Textile & garments Electric & electronics Other Manufacturing Professionals Tourism Skilled Workers Financial services Unskilled Workers ICT-enabled services Medical services Professional Services Transport Construction Energy Retail/wholesale Services 0 20 40 60 80 100 Overview • Why should we care about skills? • School matters • Preparing youth for the labour market • Improving the link between school and work Education is the most important asset and can be a way out of poverty OECS (St. Vincent & Grenadines): Salary by education level 50,000 45,000 University (1618) Post-secondary (13-15) Secondary (8-12) Wage EC $ per year 40,000 35,000 30,000 25,000 Primary (4-7) 20,000 Primary (1-3) 15,000 10,000 5,000 0 15 - 19 20 - 24 25 - 29 30 - 34 35 - 39 40 - 44 45 - 49 50 - 54 55 - 59 Age Source: Population and Household Census 2001, St. Vincent and the Grenadines Proficiency in literacy and numeracy skills is key Examination pass rate CXC Pass Rates, 2003 70% 60% 50% 40% 30% 20% 10% 0% 66% 62% 56% 61% 58% 45% 37% 34% 58% 39% 57% 39% English A 53% 39% 53% 46% 52% 45% 46% 35% 41% 30% Math 37% 24% 80% end schooling with secondary • Secondary education is still very focused on preparation for tertiary (academic) studies • School leavers enter labour market without strong basic skills • Few labor market-oriented courses, little career counseling, and little help in transitioning to the world of work Overview • Why should we care about skills? • School matters • Preparing youth for the labour market • Improving the link between school and work Youth 39% 39% 24% 13% St. Vincent & the G. St. Lucia 11% St. Kitts and Nevis •Carries economic costs Adult Grenada •Social inequality and deviant behaviour 56% Dominica •Lost human capital 60% 50% 40% 30% 20% 10% 0% Antigua & Barbuda Youth unemployment leads to: % unemployment Youth unemployment is high Source: National Labor surveys and Population and Household Censuses from different years, 1991-2004 Life skills for jobs Caribbean: Employers’ assessment of most desired skill set Honesty/integrity 86% Work ethic 86% Problem solving / efficiency 82% Communication skills 79% The ability to work well on teams 77% Taking individual responsibility 68% Dependability 47% Computer skills 45% 0% 20% 40% Source: Caribbean Knowledge and Learning Network: Labor Market Survey, 2006 60% 80% 100% Knowledge economy skills • Growing focus on “life skills” • Reliability, critical thinking, team work demanded by employers in the OECS • Gradually being incorporated into curriculum, teaching, and examinations (CCSLC, CVQ) • Quality and relevance of education (global assessment important) Overview • Why should we care about skills? • School matters • Preparing youth for the labour market • Improving the link between school and work How to close the career gaps? • Do needs assessment, adjust offerings and enrolment, expand trainee/internships • Broaden representation on external boards • Track demand and job performance of graduates How to close the career gaps? • Expand access to post-secondary programs • Enhance collaboration among small countries and regional institutions: CKLN, UWI • Shift institutional focus towards “drivers of the local economy” On-the-job training Low training of work force 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 85% % of firms training workers 75% 65% 54% 50% 41% Dominican Republic Latin America Belize Haiti Source: Caribbean Investment Climate Assessment, World Bank (2005) Grenada T&T Reasons for little training • Lack of emphasis and systemic approach • Poaching and small size of firms • Low recognition and value of training • Incipient market for private training How to enhance skills in the labor force Goal: Establish training programs with standards, financing and evaluations Standards: – Adopt regionally accepted standards (e.g. CVQ) – Inform workers and employers of standards (campaign) – Achieve regional recognition of education and training within CSME to facilitate professional mobility Finance: – Second chance education programs: 99% publicly financed – Increase labor unions’ focus on training – Employees: training levy? Monitoring and evaluation: – Expand successful programs Conclusion: Analysis points to key challenges Issue Wide spread poverty (still) Need Higher access for the poor (quality education for all; second chance programs for youth) Key challenges More investment (public and private) Learning and skills (i) Improved learning, are critical especially in basic skills (new knowledge economy) (ii) New “knowledge economy” skills -Accountability and testing -Teacher training and focus on competencies Increased specialization (new knowledge economy) -More collaboration between education levels and within the Caribbean -More employer participation (i) Better linkages with firms (ii) Lifelong learning Suggestions for the way forward • Improve equitable access to quality education • Broaden representation on governing boards of education institutions • Involve private sector more directly in curriculum/ program decisions and require monetary contributions • Expand use of CVQ and CCSLC • Increase access to post-secondary education • Improve monitoring and evaluation of student performance/ participate in global assessment • Establish programs that address skills issues.