Vocational Education and Training (VET) Background Report for Israel. OECD Project: Skills Beyond School

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1 Ministry of Industry Trade and Labor Manpower Training & Development Bureau State of Israel Vocational Education and Training (VET) Background Report for Israel OECD Project: Skills Beyond School Submitted by The Manpower Training and Development Bureau, The Ministry of Industry, Trade and Labour The report was prepared by Judith King and Yonatan Eyal from the Myers-JDC- Brookdale Institute at the request of the Ministry of Industry, Trade and Labour February

2 Contents Glossary Introduction Scope: Programs Scope: Institutional Arrangements Institutional Arrangements of the Vocational Track Practical Engineering and Technician Training Track Statistical Overview Vocational Courses Funded by the Bureau of Training The voucher program Vocational Courses Run by the Business Sector Practical engineering and technician training Drop out and completion rates Labour Market Outcomes Mix of Provisions The Governmental Sector The Business Sector Workplace Training On the Job Training in Industry (OJT) A Class in the Workplace Internship Access Routes, Second Chance Opportunities and Equity Admission Requirements Integrating Disadvantaged Groups Moving between Levels of Education Funding and Incentives Vocational Courses Training Track Practical Engineering and Technician Training Governmental Funding of the Post-secondary Vocational Tracks as Opposed to Academic Programs Social Partners

3 9.1 Employers Workers' Organizations: The New Federation of Labour (Histadrut) JDC - Tevet Academia IDF Teaching Professional Requirements for Teachers Teacher Training Teaching Aids Quality Assurance Shortage of Teachers Career guidance Sources of Information about the Courses Screening and testing prior to Start of Studies Quality assurance Requirement for Supervision Supervision by the Accrediting Authority Internal Supervision by the Educational Institutions Policy Development and Initiatives Strengths and Challenges of the VET System in Israel References (Hebrew) Appendix

4 List of tables Table 1: Institutional arrangements Table 2: Number of graduates in the various training institutional arrangements, Table 3: Total graduates of courses funded by the Bureau and their distribution by Gender, Education and Age, (%) Table 4: The rates of immigrants and non-jews among graduates of courses funded by the Bureau, Table 5: Graduates by main vocation, Bureau-funded courses (%) Table 6: The total number of participants in the voucher program, by year Table 7: The characteristics of the participants in the voucher program (%), Table 8: Total graduates of courses run by the business sector and their distribution by gender, education and age, (%) Table 9: The rates of immigrants and non-jews among graduates of courses run by the business sector, (%) Table 10: Graduates by main vocations, courses run by the business sector (%) Table 11: Students in practical engineering and technician track (first and second year combined) by main fields, Table12: Characteristics of graduates, practical engineering MAHAT, Table 13: Main reason for dropping out and non-starting of vocational training funded by the Bureau (%), Table 14: Main reason for dropout among practical engineering and technician students, 2007 (%) Table 15: The employment status at the time of interview of graduates of full time studies in government-sponsored programs (% of total graduates) Table 16: Rates of employment in vocation of training in various points of time, by vocation of training (%) Table 17: Average monthly wage (NIS) of graduates employed in vocation of training compared with those employed in a different vocation, by vocation of training, 10 yrs later (average) Table 18: Rates of employment in the field of training among practical engineering graduates and technicians in various points of time, by field of training (%) Table 19: Average monthly wage (NIS) of graduates employed in the field of training compared with those employed in a different field, by field of practical engineering training, 10 years later Table 20: Employment by eligibility for diploma, Practical Engineers (%) Table 21: Wages (NIS) by eligibility for diploma, Practical Engineering (NIS)

5 Table 22: Governmental funding and the tuition fees by the vocational training track, NIS,

6 Glossary Histadrut: The New Federation of Labour (Israeli Federation of Trade Unions) IDF: Israel Defense Forces (Israeli Army) IES: Israeli (Public) Employment Service MAHAT: Hebrew acronym for State Institute for Training in Technology and Science MOITAL: Ministry of Industry, Trade and Labour OJT: On the Job Training VET: Vocational Education and Training TEVET: A joint endeavor of the government and JDC Israel whose goal is to promote employment and advancement of disadvantaged populations. Tevet focuses on developing new strategies on an experimental basis that are later adopted by the government. 5

7 1. Introduction Vocational Education and Training is a tool for achieving both macro and micro goals. On the macro level, it seeks to improve the compatibility between the labour and the supply needs of the economy; on the micro level, it seeks to facilitate the integration of individuals into employment and to promote mobility in the labour market. Because of rapid and ongoing technological changes in modern economies, there is an increasing demand for educated and skilled workers. Even in traditional industries, such as the metal industry, development and production processes increasingly take place in technically demanding, science-based environments. In contrast, the number of unskilled jobs in the labour market in these economies is diminishing because most are being transferred to countries with low wages for unskilled labour. For example, in Israel in 2010, 5.5 unskilled job seekers competed for every job offer while among academic and skilled workers in industry and construction the ratio was only 1.8 and 1.5, respectively. This indicates a surplus of supply of unskilled labour, which will either not find jobs or only find low-paying jobs in the service sector, such as cleaning, food, security, and manpower services (Brand, in Natanzon et al (eds.) 2011). Even educated and skilled workers, who face less daunting job competition, must update their skills on a regular basis to maintain a level of job security. In Israel, despite the expansion in enrolment in higher education and in the number and variety of institutions that award academic degrees, over half of the young population does not pursue higher education. According to Ministry of Education data, eligibility for a matriculation certificate in the years 2004/5 2009/10 among the entire age 17 cohort varied between 44.4% and 48.3%. Eligibility for a matriculation certificate that meets the requirements of the higher education system was lower 38.5% %. For those not eligible or not interested in academic studies, many of whom often come from disadvantaged backgrounds, post-secondary vocational education and training continues to be of great importance for success in the labour market. In Israeli context, an advanced vocational education and training (VET) system serves two major goals: (a) Providing a skilled workforce that will enable Israel to compete in 6

8 international markets; (b) Increase employment among defined groups with low participation rates in the labour market, such as Arab-Israelis, especially women, and Ultra-orthodox Jews, especially men, through enabling them to acquire skilled jobs, and thereby promote their full integration in society in general and reducing poverty. This report provides a description of the adult vocational education and training (VET) system in Israel, not including academic education. The sources of information for this report include: in-depth interviews based on open-ended structured questionnaires with some 40 officials at various levels of the VET system; government reports and other policy and regulatory documents; follow-up studies conducted by the Research and Economics Administration in the Ministry of Industry, Trade and Labour (MOITAL); and special analyses of data collected by the of Manpower Training and Development Bureau according to our requests. The information is presented in accordance with the outline provided by the OECD. 7

9 2. Scope: Programs This report focuses on the governmental VET system for adults (aged 18+) in Israel which is primarily regulated by the Manpower Training and Development Bureau in the Ministry of Industry, Trade and Labour (hereafter referred to as "the Bureau of Training", "the Bureau"). While a large portion of the training courses are operated by the Bureau of Training itself, other ministries also independently operate courses in vocations that are related to their fields, often in coordination with the Bureau. In addition to governmental courses, private training courses are operated by the business sector, some of them regulated by the Bureau and others not. We have no data or systematic information about the non-regulated activity of the business sector. This report addresses forms of training that award a vocational non-academic diploma. It does not encompass university- and college-based vocational education and training that award academic degrees, such as teaching, nursing, or physiotherapy training. Throughout the report, we distinguish between two main tracks of adult training: a) Vocational courses. These range between 3-11 months and award vocational diplomas leading to occupational careers as skilled workers. b) Practical engineering and technician training. Practical engineering studies range between 2 years in full time studies and 3 years in a combination of evening classes and full-time studies ("mixed track"). They award a post-secondary diploma leading to careers as non-academic professional workers. Technician studies range between one year in full-time studies and 2 years in a combination of evening classes and full-time studies. They award a post-secondary diploma as well. Fields of study: Vocational courses track The VET system covers a broad array of manual and non-manual vocations. The vocations of training in the Vocational courses track include the following vocations: Electricity and Electronics Metal/Machines/Machinery IT, Computers Child Care, Elderly care Giver 8

10 Administration Hosting Construction and environmental professions Vehicles/Cars Beauty Professions Printing, Photography and Production Fashion and Textile Wood (furniture design and production technologies) Life saving and Marine Professions Drawing/Drafting Para-medical Professions (e.g. dental assistant) Others (e.g. business entrepreneurship, gardening, gold/silver crafting) Job readiness training Courses generally also include a module of job readiness, empowerment, job search skills and soft skills. This module receives special emphasis in courses targeting women with no employment history, such as Arab women. Fields of study: Practical engineering and technician track Mechanical Engineering Industrial and Management Engineering Civil Engineering Architecture Interior Design Electric Engineering Electronic Engineering Chemistry Engineering Agricultural Engineering Software Engineering Instrumentation and Control Engineering Environment Engineering Print Technologies Plastic and Polymers Engineering Refrigeration and Air Conditioning Engineering Biotechnology Engineering Multimedia Engineering Industrial Design Landscaping Architecture Sound Engineering Visual Communication Media Design Medical Engineering (Medical Instrumentation Design) Water Technology Engineering 9

11 Business entrepreneurship training Another department in MOITAL, the Agency for Small and Medium Size Businesses, operates business entrepreneurship training courses. This is done through some 25 local centers dispersed across the country. Training extends for 60 hours over 4 months and combines class learning with e-learning. It does not include individual couching. This is an open access program heavily subsidized by the agency, with students paying NIS for tuition. The agency and the Bureau are currently developing a joint package program which will offer both vocational training and business entrepreneurship training. 10

12 3. Scope: Institutional Arrangements 3.1 Institutional Arrangements of the Vocational Track There are four main institutional arrangements for providing vocational training. The first three are initiated by the government and the last one is initiated by the business sector. a. Courses financed by the Bureau of Training: Some of these courses are provided by governmental training centers while others are provided by the business sector. b. The voucher program: The courses are financed by the government and the students and provided by the business sector. c. Training that takes place only or chiefly at the workplace (discussed in detail in chapter 6): The courses are funded by the government and the employers and provided by the employers, sometimes in collaboration with the business sector. d. Courses provided by the business sector, and fully paid for by students. The four arrangements have some common components and are inter-connected. For example, courses financed by the Bureau can take place in five governmental training centers as well as in training institutions in the business sector, in which case the trainee who is referred by the Bureau does not pay for tuition. Courses Provided by or Financed by the Bureau of Training Target population The Bureau of Training primarily operates courses for job seekers who report to the Israeli Employment Service (IES) and are referred to vocational training. About half of the trainees receive income benefits from the National Insurance Institute. The rest are unemployed job seekers and persons with low-skilled, unsteady jobs who wish to upgrade their skills. 11

13 Special emphasis is currently given to groups known for their low rates of participation in the labour market and who require special study arrangements, such as ultra-orthodox men, Arab-Israeli women and people with disabilities. Governmental training centers The Bureau directly operates five training centers that serve different geographic areas: Jerusalem, Ashkelon, Holon, Carmiel, Tamra (in the Arab sector). The Israeli Government stipulated that the centers should focus upon training that requires heavy equipment (such as CNC machines in the vocations of metal and wood) and on vocations in which foreign workers are employed so as to replace them with Israeli workers (such as construction and metal works). The centers must submit an annual program for approval by the Bureau, but are exempt from using a tender process for each course. They employ their own home staff. The centers also operate courses for special groups in cooperation with external public organizations, such as the army and Tevet. The Center in Jerusalem operates special evening classes for ultra-orthodox men, and the Center in Tamra offers classes for Arab-Israeli men and women. Courses in the business sector funded by the Bureau of Training The Bureau "purchases" courses from the business sector using a tender process. The courses are operated according to a formal curriculum produced or approved by the Bureau s curriculum department. The Bureau also specifies the admission criteria, the theoretical and practical subjects to be studied, the tests, and diploma eligibility. The institution that wins the tender is subject to supervision by the Bureau. The Bureau has a right to update the curriculum as well as the admission criteria, testing requirements, and diploma eligibility. All training costs are fully covered by the Bureau on the basis of an hourly fee. The agreement signed between the Bureau and the provider is valid for four years and applies to all courses in a given subject area applied for by the provider. The courses are 'day courses' and are held five days a week and for at least 35 hours a week. Courses run on average for 6 months, though they can be as short as 3 months or as long as 11 months. Courses typically do not extend beyond 12 months because government-supplied vocational training has historically been linked to unemployment and income support benefits. According to the income support law, recipients may 12

14 receive their benefit during the training period and be exempt from reporting to the IES for up to 12 months. The Bureau informs the IES about the opening of a training course and the IES refers job seekers who meet the admission criteria to the provider of the course. If the desired number of students is not reached, the operator may admit other candidates who are not registered at the IES. The Bureau has a right to request that the training institution provide a preparatory course, often for special populations, to teach basic technological material required for the course that the students may lack (for details see chapter 7). The Voucher Program This is a relatively new program that started as a pilot project in The voucher is a written official commitment by the government to reimburse the trainee for the tuition fees. The vouchers are distributed only in vocational courses not funded by the Training Bureau. Under this program, training is supplied by the business sector, conditional upon approval of the curriculum by any of the following: the Training Bureau, the Higher Education Council, the Adult Education Bureau in the Ministry of Education and certain other governmental ministries e.g. Tourism and Health. The course can be full-time or part-time with durations of up to 12 months. The Bureau allocates funds for the operation of the Voucher Program to the IES, as well as the Ministry of Absorption of Immigrants. The IES targets unemployed job seekers who report to the Service. The Ministry of Absorption uses these funds for returning Israeli citizens. It is planned that in 2012 the Bureau will start operating the voucher program directly. Trainees are responsible to choose an appropriate training program, although this is done with the help and supervision of employment advisers of the IES and, if necessary, also through an assessment of an occupational psychologist. As courses are largely held in the evening, trainees are encouraged to work during the day, so that they can pay their share of tuition. A survey conducted by the Research and Economics Administration found that 13

15 56% of the students were working during their study period, 58% of them in the vocation of training. 58% of the students participated in evening classes while the rest took day classes (26%) or a combination of evening and day classes on Fridays (16%) 1 (Porat (3)). Trainees are reimbursed 80% (90% if trainee receives income support benefit) of the tuition fees up to 7,000 NIS 2 in three payments: following registration, after course completion, and after three months of work in the acquired vocation, conditional upon submission of three pay slips signed by the employer. Training in the Workplace The Bureau of Training cooperates with employers in operating training programs that involve training in the workplace. There are three main tracks: On the Job Training in industry (OJT) A class in the workplace Internship These programs are discussed in detail in Chapter 6. Courses Provided by the Business Sector and Paid for by the Students Institutions in the business sector offer evening courses to the general public, targeting especially working people who wish to upgrade their skills. The institutions have the option in certain courses to be recognized by MOITAL and issue an official professional diploma for their graduates. To receive the recognition of MOITAL, the institutions agree to teach according to the Bureau s requirements, submit their graduates to its tests, and be supervised by the Bureau. The Bureau does not pay for the training, and tuition is fully paid for by the students or subsidized by their employers. 1 Most of the employees do not work on Friday. 2 The average exchange rate of NIS in 2011 was 3.6 to the dollar and 5.0 to the Euro. 14

16 Courses offered by the business sector under this arrangement are no different from the courses in the same vocation offered and funded by the Bureau of Training, except that sometimes they are shorter in order to meet students' requirements. Table 1: Institutional arrangements Courses financed by the Bureau of Training Who is responsible? Who delivers the training? Government institutions in the business sector or governmental training centers The voucher program. IES and certain ministries institutions in the business sector Who pays? Government Trainees and government Training on the workplace Government and employers Employers, sometimes in cooperation with institutions in the business sector Government and employers Courses run by the business sector institutions in the business sector institutions in the business sector Trainees and employers Who chooses the training institution? Who regulates? Government Trainees Employers Trainees Government Government Government Part of the courses are supervised by government Vocational Training Provided by Certain Ministries Certain ministries also operate training courses independently, on a smaller scale in vocations related to their activities. Following are three examples. The Ministry of Tourism The Ministry of Tourism operates courses for training tour guides in 15 training institutions with an enrollment of 800-1,000 trainees annually. Admission criterion is a matriculation certificate, or 12 years of schooling without matriculation certificate for a candidate over age 30, and trainees pay 24,000 NIS out of their pocket. The training period is 18 months, consisting of 600 classroom hours and 80 touring days. At the end of 15

17 the course, students take a license test from the Ministry of Tourism. The license is valid for two years and in order to renew it one must take an in-house training. The training department in the Ministry of Tourism prepares the syllabus of the course, sets the criteria for hiring teachers, and supervises the course. It is in touch with the Bureau of Training with regard to other courses in the tourism industry operated by the Bureau, such as hotel management and reception desk clerk. The Ministry of Immigrant Absorption The Ministry of Immigrant Absorption finances short vocational training, such as drivers and cooks, in neighborhood centers serving Ethiopian immigrants. The Ministry s main activity, however, focuses on retraining immigrants with academic degrees, mainly from the former Soviet Union, who have been in Israel up to 10 years. In the past, Russian doctors were retrained as x-ray technicians. Nowadays, doctors and other academics are retrained as nurses, in response to the on-going shortage of nurses. This is done in cooperation with the Ministry of Health, with the Ministry of Absorption paying for living and travel expenses of the students. The ministry receives a special budget from the Ministry of Finance to implement the voucher program for new immigrants. As mentioned above, vouchers funded by the Bureau are also allocated by the ministry to returning Israelis. In contrast to the manner of implementation by the IES, reimbursement by the Ministry of Immigrant Absorption is not conditional on employment in the acquired or any other profession. The Ministry of Health The Ministry of Health is involved in a range of external vocational courses in the health field in two ways: a. Implementation of courses: including defining the admission criteria, the curriculum, implementation of the program, providing Ministry-approved certification. This model applies, for example, in training programs for dieticians and local authority sanitation workers. 16

18 b. Supervision of courses not directly implemented by the ministry and certification: these include, for example, courses in drinking water sampling and swimming pool operation. The selection of the training institutions is made according to criteria established by the Ministry and they are supervised by the district health supervisors. Where there are no such regulations, the courses are implemented by colleges without Ministry supervision. The decision whether to open courses is based on needs of the relevant departments at the Ministry of Health (environmental health, food and beverage services), of other ministries (such as the Ministry of Environmental Protection), or demand from people working in the field. The participants themselves or their employers pay for the courses. 3.2 Practical Engineering and Technician Training Track There are two separate training systems for technicians and practical engineers in Israel, one operated by MOITAL and the other by the Ministry of Education. MAHAT Technician and practical engineering training operates under MAHAT (Hebrew acronym for State Institute for Training in Technology and Science), which is part of the Bureau. As already mentioned, there are two main tracks of training: a full day track and a mixed track. About two thirds of the students attend the full time track while one third attend the mixed track (Porat (2)). The training occurs in 73 technical colleges across the country, 24 of which target ultraorthodox men and women (sometimes these are only 2-3 classes in a Teacher s Seminary for ultra-orthodox women) and 4 in Arab towns (Arab-Israelis, of course, study also in colleges located in Jewish localities). Training takes place at the colleges only; although the possibility of internship exists, it is rarely used because of the difficulty in finding employers willing to take interns. To receive a diploma, a student must pass 4 governmental final exams and complete a final project. 17

19 In general, enrollment in technician training is shrinking. In recent years they comprised about 5-10% of the students in this track. Most of the technician classes are operated in cooperation with specific employers. Students prefer to train as practical engineers, as the difference between the two tracks is not that great: Practical engineering training requires 2,200 hours, compared to 1,600 hours in technician training; admission requirements are similar, except that in technician training the requirement for matriculation certificate stops at age 30 instead of 35. The students in technician training are usually experienced industrial workers who wish to advance. Ministry of Education The Ministry of Education operates a separate training program in practical engineering for youth immediately out of high school. The colleges admit students who graduated from technological tracks in high school. This program differs from the MAHAT program in that the students are all 18 years old and quite homogeneous and a relatively high number among them are being trained to be technicians (about 30% of the graduates). This program is implemented in cooperation with the IDF: Army representatives serve on the committee that makes the decisions about the curriculum (together with experts from the ministry, academia, and industry); students are allowed to postpone their military service for two years and, following their graduation, integrate into the technological systems of the army; even before their draft, they can complete their project in the unit where they will later serve. 18

20 Table 2: Number of graduates in the various training institutional arrangements, 2011 Institutional arrangement Number of students Training centers and courses funded by the Bureau 4,850* Voucher program IES The Ministry of Immigrant Absorption Practical engineering and Technician Mahat Ministry of Education 1,450** 2,900** 9,400*** 3,500 Training institutions in the business sector not funded by 32,050* the Bureau * Refers to ** Refers to the number of number of participants. *** Refers to the number of students that started their studies in the track. 4. Statistical Overview This chapter describes training activity from three main aspects: - The number of trainees and their characteristics. - Dropout and completion rates. - Labour Market Outcomes with regard to employment and wage. The data are presented according to institutional arrangement and track. 4.1 Vocational Courses Funded by the Bureau of Training Tables 3-5 and Chart 1 below present the number of graduates and their characteristics for the years In order to describe the changes in the population distribution, the average of the first three years ( ) will be compared to the average of the last three years ( ). In general, the comparison will refer to changes in the percentage of the specified population. Average total number of trainees in each period and specified population, are cited in parentheses in the text. 19

21 Table 3: Total graduates of courses funded by the Bureau and their distribution by Gender, Education and Age, (%) Gender Education* Age Total graduates (N) Basic educati on** (N) Less than 10 years Year Women years years , ,231 1, ,351 2, ,030 1, , , , , , , ,873*** Average 13, Source: Special analysis of administrative data of the Bureau of Training. * In some years, education data are missing for a substantive part of the graduates, up to 31% in ** The basic education courses targeted unemployed persons and were funded by the Bureau of Training. The Ministry of Education funded courses targeting other groups which are not included in the database of the Bureau of Training. *** In addition, 1,220 job seekers participated in the IES voucher program, funded by the Bureau of Training. We have no full data yet on the participants' rate of graduation. 20

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