LABOR MARKET ANALYSIS LEADS TO DEMAND-DRIVEN TVET PROGRAMS

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1 LABOR MARKET ANALYSIS LEADS TO DEMAND-DRIVEN TVET PROGRAMS November 2012

2 LABOR MARKET ANALYSIS LEADS TO DEMAND-DRIVEN TVET PROGRAMS Jill Elkins, Chris Krzeminski, and Carl Nink Management & Training Corporation, USA AUTHOR CONTACT INFORMATION Jill Elkins, , Chris Krzeminski, , Carl Nink, , Management & Training Corporation is located at the following address: 500 N. Marketplace Drive Centerville, UT 84014, USA 2012 Management & Training Corporation, All rights reserved. ABSTRACT Management & Training Corporation (MTC) developed an approach which created more viable Technical Vocational Education and Training (TVET) programs by using labor market information to inform and design courses and approaches for training. The use of primary and secondary data collection and the value of industry input through employers and industry councils, and associations participating as partners in TVET Training Networks establish a framework for optimum performance. The authors include information and examples of industry forums, questionnaires, and data collected in Haiti, Liberia, and Palestine. Ways to utilize the LMI for informing donors and government entities, as well as guiding and counseling TVET administrators, teachers, and students are also presented. Finally, limitations and solutions for using LMI to influence development and upgrades of TVET programs in developing countries are explored.

3 TABLE OF CONTENTS Introduction...1 LMI Enhances TVET Programs...2 Informed by Labor Market Needs, Training Programs Can Be Demand-Driven and meet the Needs of Local or Regional Employers...2 Demand-Driven Programs Usually Offer Training in Vocations that will be Viable Over the Long Term...3 TVET Graduates Can Develop Adaptive and Transferable Skills that Can Apply Within and Across Viable Sectors...4 Employers Are Encouraged to Offer On-the-Job Training and Work Attachments When TVET Institutions Provide Demand-Driven Training...5 Demand-Driven Training is More Cost Effective Where High Volume-High Demand Occupations Create Greater Income For Employers and Institutions...5 Data Collection... 6 Ways to Use LMI to Inform Donors, Schools, and Communities...9 Solutions to Limitations of LMI...11 Conclusion...12 References...13

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5 INTRODUCTION Management & Training Corporation (MTC) is a private training and development company that was founded in MTC s training roots go back to the mid-1960s when, as the Education and Training Division of Thiokol Corporation, it began operating training centers for the Job Corps program of the U.S. Department of Labor. Today, MTC employs almost 10,000 employees in the U.S. and internationally, with just under 700 million in annual sales. MTC is known for its excellent training programs, superb management systems and innovative ways to educate youth and adults for successful entry into the workforce. In addition, MTC also operates privatized correctional facilities with an emphasis on training offenders for successful re-entry into society. In 2004, MTC decided to adapt its already successful U.S. workforce training programs to the international arena in both developed and developing countries. To date, MTC has conducted programs or evaluation in the following countries: Australia, Canada, Iraq, South Sudan, Tunisia, Mongolia, Armenia, South Africa, Zambia, Jordan, Palestine, Egypt, Indonesia, China, Haiti, Pakistan and Liberia. The following article is a discussion about MTC s approach to developing more viable TVET programs by using labor market information (LMI) to inform and design courses and methodologies for training. Included is a discussion of five major ways that training programs are enhanced by conducting LMI and adapting TVET programs accordingly. The authors will discuss the use of primary and secondary data collection and the value of industry input through employers, industry councils, and associations participating as partners in TVET Training Networks 1. Included will be information and examples of industry forums, questionnaires and data collected in Haiti, Liberia, and Palestine in 2011 and The authors also address ways to utilize LMI for informing donors and government entities, as well as guiding and counseling TVET administrators, teachers and students. This paper will also provide solutions for limitations to using LMI to influence the development and upgrades of TVET programs in developing countries. To date, MTC has conducted programs or evaluation in the following countries: Australia, Canada, Iraq, South Sudan, Tunisia, Mongolia, Armenia, South Africa, Zambia, Jordan, Palestine, Egypt, Indonesia, China, Haiti, Pakistan and Liberia. In many developing countries, training generally has no relevance to the labor market or opportunities for employment post-completion of program. While any form of training contributes to life-long learning and is better than no training at all, particularly in very poor economies, it can lead to wasting precious funding and resources. Further, it may only minimally contribute to the well being or livelihood of the participants. It is imperative that educators and trainers research and understand the current and potential labor market of their region before deciding on which courses to provide in facilities offering technical-vocational programs. 1- The basic premise is that all relevant stakeholders in a community create a formalized network for the purpose of developing the workforce that supports that community, hence the name Training Network. Stakeholders gather together to focus on developing the workforce needs and on how to prepare and train the workforce through a wide range of possible training outlets. Management & Training Corporation 1

6 Training in high demand vocations usually results in students being trained in more market relevant skills and ultimately, higher employment (World Bank, 2006). In Skills for Productivity: Vocational Education and Training in Developing Countries, Middleton, Ziderman, and Adams (1993) support the theory that training should be tied to labor demands. They state that while some training modes notably training by employers are more efficient than others, most modes of training can yield good returns when jobs for graduates are available and training is closely linked to employment demand (p. 38). LMI ENHANCES TVET PROGRAMS There are five major ways that training programs are enhanced by conducting LMI and adapting TVET programs accordingly: 1. Informed by labor market needs, training programs can be demand-driven and meet the needs of local or regional employers. TVET institutions have better relationships with local and regional employers, which usually leads to more job placements in a shorter period of time following program completion. 2. Demand-driven programs usually train in vocations that will be viable over the long term. 3. TVET graduates can develop adaptive and transferable skills that can apply within and across viable sectors. 4. Employers are encouraged to offer on-the-job training and work attachments when TVET institutions provide demand-driven training. 5. Demand-driven training is more cost effective where high volume-high demand occupations create greater income for employers and institutions. INFORMED BY LABOR MARKET NEEDS, TRAINING PROGRAMS CAN BE DEMAND-DRIVEN AND MEET THE NEEDS OF LOCAL OR REGIONAL EMPLOYERS When working in developing countries, MTC has found that many TVET Institutions are providing courses that are very outdated and not relevant to their labor market. They continue offering the programs because, that s the way we have always done it. In countries where women are not traditionally trained for work, institutions provide limited courses for women in occupations such as sewing, cooking, handicrafts, or hairdressing. In such countries the demand for those occupations may be very weak, but for the sake of offering something to women, the courses continue. Often the instructors have had limited or no formal training in the vocations and the quality of teaching is poor. As a consequence, student learning suffers. Women are not successful when trying to find work or start their own businesses because the quality of the products they produce is inferior. 2 Management & Training Corporation In some cases, countries don t conduct labor market assessments or analysis and in other cases where LMI is collected, it is not accurate data and is only collected sporadically. Even when good LMI exists, institutions are not trained in how to use the data and analysis to inform their programs and assist them in identifying demand occupations. In countries where governments include labor market analysis and training for demand occupations as part of the accreditation process

7 of TVET Institutions, there is evidence that students are trained better, more employable and find employment quickly after graduation (Prasad & Bahr, 2010). TVET institutions have better relationships with local and regional employers, which usually leads to more job placements in a shorter period of time following program completion. The Germans are leaders in vocational/technical training. The German Federal Ministry for Economic Cooperation and Development (2005) agrees that labor market information is vital for developing demand-driven training. In their strategy paper, Technical and Vocational Education and Training and the Labour Market in Development Cooperation, the German Ministry states that reliable labour market information and monitoring of employment impacts are extremely important in developing needs-related technical and vocational education and training and labour market policy measures (p. 4). DEMAND-DRIVEN PROGRAMS USUALLY OFFER TRAINING IN VOCATIONS THAT WILL BE VIABLE OVER THE LONG TERM In developing countries, automobile repair and construction are two of the demand occupations. Iraq is an example of a country that prior to the occupation, had very few cars because of the cost and also the embargos on imports to Iraq. After the end of the Saddam regime, more people found the opportunity to own a vehicle. Unfortunately, the automobiles that were purchased were mainly older U.S. models and not in great repair. Further, there was a lack of mechanics that could work on cars of any make and model. Automobile repair quickly became a demand occupation and TVET Institutions began searching for updated curricula and machinery to provide auto mechanic training. With knowledge gained from a labor market analysis in 2005, institutions were informed that not only was it highly likely that the number of automobiles would increase in the next 5-10 years, but that repairing newer model cars would also require training in computer diagnostics. Through donor funding, the Ministry of Labor and Social Affairs was able to finance the upgrades and training needed for this new demand occupation. There is, and always will be, a high demand for workers in the construction trades in almost every country. Whether in response to a natural disaster, a conflict, years of severe poverty, or economic growth, construction trades almost always end up on the most in demand occupations list. LMI research can inform TVET institutions about which skill sets and specific jobs will be in demand within the construction sector. If an institution only has enough funding to either train in welding or plumbing for example, an LMI analysis can identify the numbers and help project future need for either vocation. The German Federal Ministry for Economic Cooperation and Development states that reliable labour market information and monitoring of employment impacts are extremely important in developing needs-related technical and vocational education and training and labour market policy measures. LMI research can inform TVET institutions about which skill sets and specific jobs will be in demand within the construction sector. Workers who are trained in a demand occupation not only possess the skills which will be attractive and in need by employers, but they will have increased self confidence that they will be employed longer and in an occupation that will be around for awhile. In a recent study conducted for USAID by The Aguirre Division of JBS International, we learn that workforce development programs that include apprentice- Management & Training Corporation 3

8 ship, classroom vocational skills training, life skills, vouchers and job match or mediation more often see influences on employment and earnings. Program beneficiaries are more likely than non-participants to find employment and oftentimes end up in more formal arrangements that include benefits (Olenik & Fawcett, 2012, p. 5). Students who learn adaptive and transferable skills in high demand occupations will also be more employable in neighboring countries where demand is similar. Graduates can develop career ladders and participate in industry associations and unions within their vocation because they are working longer in the sector and developing long term relationships. If they are ever unemployed, they have a greater chance of finding work through their network of employers and workers in the trade. Companies whose products or services are in demand, are usually more stable and can afford to keep workers on the job longer. Demand-driven programs can reduce incidences of high turn-over as well. TVET GRADUATES CAN DEVELOP ADAPTIVE AND TRANSFERABLE SKILLS THAT CAN APPLY WITHIN AND ACROSS VIABLE SECTORS TVET students who are trained in non-demand sectors can experience very limited job opportunities and risk becoming chronically unemployed unless they also receive adaptive skills (i.e. ability to read, write, and perform requisite mathematical work) and transferable skills (general technical knowledge and technical skills). Whereas, when students train in an occupation that is in demand, not only will there be more jobs available, but most likely their vocation has multiple layers and skill sets where they can transfer skills from one job to another. In today s marketplace, workers with adaptive and transferable skills and who complete employer recognized credentials will also be able to transfer their skills to the next iteration of the job. For example, someone who has been working in the construction trades in vertical structures would have carpentry skills that apply to form building for bridges, embankments, safety barriers, etc. A pipefitter has skills that can apply to plumbing. As industries grow, more opportunities become available within the company and the value chain. A carpenter might become a shop foreman. A machine operator might become a machine repairman. A worker might leave and start his/her own business because demand is high. Students who learn adaptive and transferable skills in high demand occupations will also be more employable in neighboring countries where demand is similar. With a large number of migrating populations due to conflict and natural disasters, it is even more imperative that workers are trained in vocations that require skills which are needed regardless of where they are located. Yoo Jeung Joy Nam (2009) of the World Bank agrees that transferrable skills are important. In a Social Protection & Labor/World Bank Discussion Paper, Joy Nam says, there has been a shift from a more narrowly defined vocational training (VT) that is dominated by technical skills to a broadly viewed technical and vocational education and training (TVET) where generic or transferable skills thrive alongside the technical (p. 3). 4 Management & Training Corporation

9 EMPLOYERS ARE ENCOURAGED TO OFFER ON-THE-JOB TRAINING AND WORK ATTACHMENTS WHEN TVET INSTITUTIONS PROVIDE DEMAND-DRIVEN TRAINING Employers with in demand occupational areas, like and use TVET training institutions who provide prospective employees with content which is directly related to improving their business performance and profits. Employers will more likely hire workers who have received training in demand occupations. In addition, some employers offer onthe-job training and work attachments as a way to try-out potential employees. An emerging trend in TVET training includes employers involved in the training of the future workforce through Training Networks. Training Networks include a partnership formed through an agreement and signed Memorandum of Understanding (MOU) where TVET Institutions, employers, industry associations, education entities and community stakeholders all contribute to the training of the emerging and incumbent workforce. Training opportunities are many and varied. They may occur: in the classroom, in the field at employer sites through on-the-job training or apprenticeships, through employer s company/industry training, in partnership with secondary schools or NGOs, industrial zone companies, or on the job after a student has officially been hired by an employer. Typically, employers participating in Training Networks ultimately hire students out of such collaborative training processes. Partners in Training Networks are more likely to participate in a Training Network if the training is focused on growth industries in demand. In many cases, employers and stakeholders contribute to the research and LMI data that validates the demand occupations. Usually demand industries require a larger number of hires and thus a larger number of trained and skilled workers. Employers in demand occupational areas are much more interested in TVET institutions that offer training in their business areas. DEMAND-DRIVEN TRAINING IS MORE COST EFFECTIVE WHERE HIGH VOLUME-HIGH DEMAND OCCUPATIONS CREATE GREATER INCOME FOR EMPLOYERS AND INSTITUTIONS When there is a demand for goods or services, businesses use more goods, hire more workers, and have opportunities to expand. When employers need more workers, there is a greater demand for training. With increased enrollment, TVET institutions usually have more revenue to invest in technology or up-to-date equipment. Employers and institutions can pool resources as mentioned above through Training Networks. When companies are doing well and expanding Management & Training Corporation 5

10 they are willing to put more resources into training and keeping employees, thus there is less turn-over of employees. Middleton, Ziderman, and Adams also suggest that demand-driven training is cost effective. They ve said, overall, any mode of training for industrial and commercial occupations can be cost-effective when the institution is well linked to employers, adequately financed, efficiently organized, and sufficiently autonomous to adjust the size and content of courses to meet the quantitative and qualitative dimensions of employment demand (1993, p. 49). Well designed labor market studies follow traditional methods for data collection and analysis. Students trained in demand occupations are less likely to end up in dead-end jobs or face multiple layoffs. Donors are more interested in providing money for TVET programs that train in high-demand occupations as larger numbers of students can be funneled through the program and placed in jobs quickly, which hopefully will stimulate the economy. As businesses grow, so do the companies in their value chain as demand increases. Frequent analysis of LMI helps employers and institutions know where to grow their business and training, leading to greater income and longer term employees. DATA COLLECTION Well designed labor market studies follow traditional methods for data collection and analysis. There are three types of data collected in any analysis: primary-quantitative, primary-qualitative, and secondary data. Usually researchers start with secondary data to gain an overall understanding of the subject and the research done so far. Project Management for Non-Governmental Organizations (PM4NGOS), an international NGO promoting project management skills in the development sector, created a guide that discusses the different types of data collected. PM4NGOS Guide to the PMD Pro (2011) describes secondary and primary data in the following manner: Secondary data is the first source of information and is the most cost effective. Secondary data is information available through published and unpublished sources, including literature reviews, surveys, evaluations, assessments, reports from NGOs, agencies and stakeholders, international organizations and government offices. Secondary data can be very cost effective. Unfortunately, access to secondary documents is often limited and care is needed when interpreting secondary data. Sometimes selective primary data collection will be necessary to verify the reliability and relevance of secondary data to the specific context, or to obtain deeper, more specific information (p. 23). 6 Management & Training Corporation

11 Primary quantitative data is collected via quantitative assessment approaches (surveys, questionnaires, tests, standardized observation instruments) that focus on information that can be counted and subjected to statistical analysis. Primary data is scalable, objective, promotes accurate results and researchers can use standardized approaches to compare results to other data. The shortcomings of quantitative data are that this approach sometimes misses the depth of the situation and can be difficult to collect essential contextual information (p. 23). Primary qualitative data captures participants experiences using words, pictures and objects (even non-verbal cues provided by data providers). The strengths of qualitative data collection are that greater depth and detail can be discovered, it creates openness and can simulate people s individual experiences. Qualitative data is most often collected as an openended narrative, unlike the typical question and answer format of surveys, questionnaires or tests (p. 24). Another very good resource for labor data collection is employers and cohorts of employers. There are several sources for collecting quantitative and qualitative data for information on a country s demand occupations and potential future markets. Many countries have a Bureau of Labor and Statistics that collects and analyzes data concerning labor, economic, and social phenomena. Ministries of Labor are often responsible for conducting Labor Market Studies. Universities and institutions, as well as industry associations often collect labor data. Donors, such as USAID, World Bank, UN and others, fund labor market studies and analysis tied to training and development programs. Some TVET institutions even conduct their own labor analysis to design their courses and programs. Another very good resource for labor data collection is employers and cohorts of employers such as companies collaborating in an industrial park or on a large construction project. One contribution of employers partnering in Training Networks is to inform the TVET institutions on emerging industries, new job openings, and skills needed for demand occupations. Information directly from employers is often more accurate and up-to-date than statistics from bureaus or government entities. Industry councils and associations, such as the Chamber of Commerce or the National Council for Construction Education and Research are also excellent for collecting employment and industry data. When industries learn that TVET institutions are interested in labor information, they are usually very eager to help by providing input that will lead to better and more relevant training of future workers. Industry councils and associations, such as the Chamber of Commerce or the National Council for Construction Education and Research are also excellent for collecting employment and industry data. MTC s approach to workforce training in developing countries is to always start by conducting a labor analysis and follow up with a Gap Analysis of the training entities in the country or region. Unless institutions know the history and context of the workforce and the demand occupations in the area, they will not be as successful in upgrading and improving their programs. Likewise, development companies should not even attempt to provide any Management & Training Corporation 7

12 kind of technical assistance until they have researched the labor market, industries, and people who influence the future workforce. MTC takes seven (7) steps when analyzing LMI: 1. Assess any current secondary data such as labor bureau reports, Chamber reports, current data from donors or projects, industry newsletters, NGO reports, student/teacher surveys, etc. 2. Make appointments with key stakeholders and leaders in education, training and workforce. 3. Hold specific Industry Forums with company owners and staff. 4. Meet with members of the emerging workforce (youth), students, families and relatives to learn their perspective on the world of work in their communities and what occupations they are interested in pursuing. Financing and government regulations are seen as the major barriers for employers. 5. Provide MTC s Workforce Development Questionnaire to employers and aggregate data. 6. Validate data collected with TVET institutional leaders and key employers in the anticipated growth sectors. 7. Write a General Labor Analysis report to develop a Gap Analysis for TVET Institutions to inform their training programs. In , MTC conducted industry forums with the construction sector employers in Haiti and Liberia. In Haiti, MTC met with 27 employers and a few TVET providers. In Liberia the forum included a two part series where 80 employers and staff attended a small forum and completed an initial survey and then a few months later, 70 employers and several employees from the Ministry of Education attended a more intensive workshop with training and a lengthy questionnaire of their needs, views and skills for the emerging and incumbent workforce. In Palestine, MTC completed Labor Market Questionnaires with over 500 employers in multiple vocations through one on one interviews. Although MTC used different methodologies in the three countries to gather market information from employers and industry associations, there were several themes that appeared across all surveys and interviews. General themes that emerged included: Most employers expressed a need for their staff to be trained in the latest technology of their vocations, and in general, computer usage. Most employers believed that their greatest problem with employees was the lack of soft skills such as lack of punctuality, poor attitudes, employee theft, conflicts between staff and supervisors and low numeracy and literacy levels of the staff. 8 Management & Training Corporation

13 Many employers mentioned that their current employees lacked the skills for the jobs they occupy. Employers are looking for management and leadership skills in their employees, particularly mid-management skills. The majority of employers are looking for employees with either TVET certification or Bachelor s degrees. A high school diploma is no longer enough, which has significant implications for countries where most youth drop out of school in grades one through sixth. A large number of employers are interested in work attachments with a workforce training or TVET center. Financing and government regulations are seen as the major barriers for employers. While in Haiti and Liberia it had already been determined that construction sector jobs were in high demand, while MTC s labor analysis in Palestine allowed us to identify seven major growth industry sectors including: banking and financial services, property development and construction, hospitality and tourism, service technician and maintenance, automotive, agriculture, and information technology/computers. WAYS TO USE LMI TO INFORM DONORS, SCHOOLS, AND COMMUNITIES LMI should be considered before any donor allocates funding for the establishment or upgrade of schools, educational institutions, or community projects related to the enhancement and training of the labor force. Many employment training programs are designed to just keep youth off the street and engaged in positive activities. There is nothing wrong with that approach, but it does not lead to sustainable and long term employment which ultimately improves the economy. Long term employment increases the likelihood that youth and adults will not engage in crime or unproductive activities. Knowing what vocations will be viable in the near future and what gaps are present between what employers need their workers to know and what education and training institutions provide, assists communities in producing a better workforce and ultimately reducing poverty. Long term employment increases the likelihood that youth and adults will not engage in crime or unproductive activities. When using LMI to inform donors and schools of which vocations are in high demand, it is equally important to determine if the vocations are suitable for youth or for workers who do not have a Management & Training Corporation 9

14 higher university degree such as in engineering. Aga Khan Foundation of Canada has been working on a project in Pakistan to develop a toolkit for Youth Employability Projects. After determining the labor market, Aga Khan feels it is equally important to determine the suitability of youth for vocations that may be in high demand. In Aga Khan s toolkit, they identify three stages in their LMI assessment: Designing and Carrying Out Youth-Centered Market Research Assessing Youth Suitability and Selecting Interventions Building Youth Suitable Partnerships with the Private Sector In their Youth Suitability Survey, Aga Khan includes such indicators as: One of the best ways to inform donors, schools and communities about labor market needs is to hold forums, focus groups, and meetings with training networks. Involvement or potential for youth and women Acceptable conditions Unmet market demand Potential for self-employment Employment opportunities Environmental sustainability Attainable capital and quick monetary impact Matched youth interests Appropriate vis-a-vis family obligations and peer perceptions Economic growth potential Aga Khan not only conducts surveys and focus groups with youth and TVET providers, but they also include a Youth Perception Survey to determine how youth perceive the current workforce and what is required of them on the job (Markel, Denomy, & Yordy, 2012). One of the best ways to inform donors, schools and communities about labor market needs is to hold forums, focus groups, and meetings with training networks. At the forums, stakeholders can discuss the current labor statistics and assist with the analysis of the upgrades or changes that may be needed in TVET training methodologies or curricula to meet the market needs. After large public stakeholder forums are held and input is gathered from all concerned, it will be necessary to work individually with TVET schools and employer networks to provide technical assistance for modifications and curricula upgrades. 10 Management & Training Corporation Students can be informed of current labor demands through career courses and participation in labor survey processes. Likewise, TVET Centers should include Career and Employment Centers in their facilities where employers can visit and interview potential graduates and youth can research information on potential jobs and occupations. Job shadowing is a great way for students to learn first-hand how an employee spends their day on the job and what skills are needed for work in a specific company culture.

15 Another excellent way to inform others about labor market needs is to hold a TVET Workshop on LMI, sponsored by the TVET institution. If students are included in the research and presentation, employers are exposed to youth who not only are training for work, but are aware of the labor market and employer expectations. This is an opportunity for youth to showcase their skills and their positive attitudes towards the work environment. MTC uses industry approved skill sets for over 100 vocations to inform employers and TVET institutions of the latest and cutting edge skills needed by employers in various career clusters. SOLUTIONS TO LIMITATIONS OF LMI Some of the limitations to LMI include non-availability of data, inaccurate/outdated data, limited access to key informants, lack of technology or ability to collect and process data, government control of information, lack of experts to analyze data, and resistance to using LMI as it is seen as a threat to the old way of doing things. Another present limitation is that LMI data is typically historical unless an entity surveys employers as part of a project. Therefore, LMI may not reflect high growth fields (e.g. energy, technology, etc.). It is also important to look at time on task, skill sets, and the application of those skills in order to get a complete picture of the employer workforce demand. In many developing countries the technology is very limited and the ability to collect or process data is hindered. Most researchers look first for secondary data to provide an initial context for more in-depth research. Labor studies completed by a ministry or government body are one of the best resources for national level labor data, depending on how dated they are. Industry associations are another good source to consider. However, if no labor data exists or inaccurate/ outdated data is all that is available, the only solution is for the researcher to conduct a labor market study themselves. One could look at other studies done in the region, but that might not provide specific information about the area where training is to occur. A labor study can be completed fairly quickly depending on the number of people surveyed and the extent to which one hopes to analyze the data. It is vital to strategically think through and then undertake training on the assessment/survey process and how to analyze data to make informed decisions based on the results and to improve inter-rater reliability. Survey process training is important before ever considering a labor market study. After reading available reports on the labor market, the best way to validate the information is to interview key informants such as employers (both large and small), government officials, labor bureau staff, TVET instructors, university staff, members of industry associations, etc. However, in some cases access to key informants is limited because of confidentiality laws, availability of staff or the lack of people who understand LMI. One solution to address lack of access to key informants is to hold an industry forum and provide a questionnaire that will produce data. Management & Training Corporation 11

16 In many developing countries the technology is very limited and the ability to collect or process data is hindered. However, countries are now making use of cell phones and social media to collect and collate information. This provides an increase in the opportunities to reach populations in remote areas. Also, as local staff are becoming more educated on the ways to conduct research and use data to inform decisions, more local NGOs and individuals are participating in community outreach and labor studies, including analysis. Governments, universities, and TVET institutions need training to better understand the value of researching the labor market. Some governments limit access to information as a way to control their citizens. In some countries labor data may be collected by the government, but not shared with the population. Limited funding and lack of experts to analyze data is another reason governments fall behind on conducting labor market studies. In Mongolia, for example, the Ministry of Labor has authorized the funding and the process for selecting a private firm every year to develop and analyze a labor market study. However, no one in the ministry follows up on procuring a study each year, so the country may go two to three years without a study. Governments, universities, and TVET institutions need training to better understand the value of researching the labor market. Researchers must tie the results to the development of a demand-driven system that trains the incumbent and emerging workforce in vocations that will be sustainable and provide further job opportunities. One solution is for donors and funding sources to insist on labor analysis and programs that match employer needs. Another solution is for employers to also own the problem and insist that high schools, universities and TVET schools put their limited and valuable resources towards training for viable and growth occupations. Through Training Networks employers assist in guiding training institutions to teach the skills for current and future jobs. CONCLUSION As was noted in this manuscript, the collection and use of LMI is instrumental in business growth and sustainability through linkages with TVET programs. The authors believe it is important to develop more viable TVET programs by using labor market information (LMI) to inform and design courses as well as methodologies for training. Included was a discussion of five major ways that training programs are enhanced by conducting LMI and adapting TVET programs accordingly. The use of primary and secondary data collection will enhance the outcomes. The value of industry input through employers and industry councils and associations participating as partners in TVET Training Networks is vital to success. Information and examples of industry forums, questionnaire results and data collected in Haiti, Liberia and Palestine in 2011 and 2012 were also included. The authors also addressed ways to utilize LMI for informing donors and government entities, as well as guiding and counseling TVET administrators, teachers and students. This paper also provides solutions for limitations to using LMI to influence the development and upgrades of TVET programs in developing countries. 12 Management & Training Corporation

17 REFERENCES German Federal Ministry for Economic Cooperation and Development. (2005). Technical and Vocational Education and Training and the Labour Market in Development Cooperation (Strategies 140). Retrieved from bmz.de/en/publications/topics/education/strategies140.pdf Jwiles, Z. (2012) A Proposed Model for Palestine to Build A Partnership Between the Institutions of the Technical and Vocational Education and Labor Market In Light of Reality and Contemporary International Experience [Abstract]. MacDonald, S., Nink, C., & Duggan, S. (2010). Principles and Strategies of a Successful TVET Program. Centerville, UT: Management & Training Corporation (MTC) Institute. Markel, E., Denomy, J., & Yordy, R. (2012). Investing in Young People Part 2: A Start-Up Toolkit for Youth Employability Projects. Aga Khan Foundation Canada Draft Paper. Middleton, J., Ziderman, A., & Van Adams, A. (1993). Skills for Productivity: Vocational Education and Training in Developing Countries (A World Bank Book No ). New York, NY: Oxford University Press. Retrieved from Nam, Y.J.J. (2009). Pre-Employment Skills Development Strategies in the OECD (SP Discussion Paper, No. 0923). Washington, DC: Korean Ministry of Labor & Social Protection Unit of the World Bank. Retrieved from Olenik, C., & Fawcett, C. (2012). USAID Youth Policy and Learning Project Briefing Paper: Examining the Evidence in Youth Workforce Development. JBS International Inc., Aguirre Division. PM4NGOS. (2011). A Guide to the PMD Pro: Project Management for Development Professionals. Retrieved from Prasad, G., & Bhar, C. (2010). Accreditation system for technical education programs in India: A critical review. European Journal of Engineering Education, 35 (2), The World Bank. (2006). World Development Report 2007, Development and the Next Generation (Report No ). Washington, DC: The World Bank. Retrieved from SContentServer/IW3P/IB/2006/09/13/ _ /Rendered/PDF/359990WDR0complete.pdf Management & Training Corporation 13

18 NOTES

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20 Labor Market Analysis Leads to Demand-Driven TVET Programs 500 North Marketplace Drive P.O. Box 10, Centerville, UT Phone: (801)

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