Technical Vocational Education and Training in Ethiopia

Mapping

Learn4WorkSchokland Programme on TVET

Edukans Foundation

January 2009Addis Ababa

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Contents1 General Background 12 Formal and non Formal TVET sector in Ethiopia

a Facts and figuresb Policiesc Education Sector Pland Main Actorse Key donors and interventionsf Demand and supplyg Issues

3 a Labor market in Ethiopiab Facts and figuresc Policiesd Formal and informal economye Employment and unemployment rates focus on youth,

genderf Main actors (private sector, supporting agencies)g Transition from school to work. Existing approaches to

improve transitionh Demand and supply from the labor marketi Issues

4 Lessons learnt from previous interventions/ approaches, good practices

5 Practical and policy challenges6 SWOT of key actors of TVET and labor market

7 Opportunities for the future for improved harmonization of different actors (TVET institution, labor market, donor organizations

8 The way forward: from understanding to practical supportRecommendations and niches

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1. General BackgroundThe Ministry of Education and the Regional Education Bureaus have shown their commitment to improving access to Technical Vocational Education and Training. After the introduction of the Education and Training policy in 1994, the number of formal and non-formal TVET provision centers has mushroomed. The Ethiopian government has recognized the importance and the need for establishing a large number of TVET institutions in the effort to promote economic and technological development in the country. Within a short period it has managed to increase the number of TVET centers from 15 in 1994n 10 388 in 2006/7. Realizing the importance of linking education and the world of work has finally bear fruit in Ethiopia, districts are requesting for the provision more and more TVET centers. Presently over the 200 districts don’t have TVET centers.

In the past, there have been attempts to investigate the status of TVET provisions in Ethiopia by different groups and individuals. Among the many others, the study made by Birhanu Dibaba (et al. 1992) came up with the major finding i.e. “there are no clear cut guidelines regarding plans, programs, and resources given to technical and vocational schools. Pior to 1992 TVET schools didn’t have the required qualified human power, in particular teaching staff. There was no planned or programmed contact between the training institutions and production/business enterprises. It has been more than two decades since these insight full findings were reported.

The need for more information on the link between TVET institutions and the world of work is required by policy makers, planners, employers, trainees and the research community. Recently another study was made on Non-Formal TVET mapping in Ethiopia whose findings have been incorporated in this study. This desk study is another attempt to cover the art of review of the status of formal and non-formal technical and vocational education and training in the country. It is initiated by the Educan foundation who works for the promotion of TVT provision based on market demand.

1.1 Rationale for the mappingConducting the present TVET mapping is taken as a strategic activity to map the existing stakeholders and their interests in TVET; past experiences and good practices regarding demand and supply of TVET; and strong and weak elements of the TVET sector. The importance of the mapping exercise lies in the establishment of future relevant partnership and design activities with them to improve TVET provisions. The results of the mapping process will function as a guide for TVET further development and strengthening partnership and produce partnership proposals.

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1.2 Objectives The overall objective of this study is to describe the policy environment and the current situation regarding demand and supply of TVET, as well as to identify the performances, problems, strengths, weaknesses, opportunities and threats, lessons learned and options for (coordinated) support for the TVET sector in Ethiopia. In addition, the mapping describes the main policies, actors and practices of the labour market and the relation of vocational education and work.

The specific objectives of the mapping are the following. a. Analyse the context of the labour market and the TVET sector: facts, figures, trends and

performances (TVET sector). b. Analyse the prospects on the labour market and employment rates. Formal and informal

economy, type of main labour, required skills, divided in rural and urban contexts. c. Assess lessons learned from past experiences, concrete results achieved in terms of

quality TVET, numbers of skilled workforce available for the labour market in the last decades, the transition from education to the labour market.

d. Review and evaluates in retrospective the experience of vocational education in terms of processes adopted and policy and practical challenges confronted both at (macro and micro) levels.

e. Analyse key players and their relevant policies and intervention strategies: the government, knowledge institutions, private sector, including local civil society actors and international donors and NGOs. What is the role of the labour market in relation to TVET (refer to both formal as the informal economy, and formal as non-formal TVET)? Role and function of knowledge and resource institutions, if involved.

f. Determine the strengths and weaknesses of different actors.g. Provide several options for better coordination among different actors and/or for

improving responsiveness to the specific needs that exist in the labour market. h. Present ideas for the way forward: from understanding to practical support.

1.3 MethodologyReviewing the available documents on TVET was one of the measures taken in generating data for this study. Discussions were made on issues of importance with key experts of the MOE, Oromia Regional state, Addis Ababa City Administration TVET officials. All together the key officials contacted were seven.

1.4 Reporting mechanismComposition of the study team: Ato Anbesu Biazen and Ato Amha have undertaken the study. Both have adequate experience in research and evaluation and are familiar with the TVET program.

This validation workshop is so that participants could reflect on existing status of TVET program and generate activities that could alleviate the provision of effective and efficient programs. Feedback given in the workshop will also be used to enrich the report.

1.5 The contextThe newly issued 2007 Central Statistics estimate indicated that the total population of the country was 79,221,000 of which 50.1 % were males and 49.9 % females. The

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population of the country is increasing at the rate of 2.7% every year and this has become an additional concern to planners, development workers and the government at large.

About 17 % of the total population lives in urban settings and 83 % in rural areas. About 50 % of the population is between the ages of 15 and 54 and 4 % of the population is over the age of 60.

Ethiopia is known as one of the poorest countries where its over 31 million people live below the defined poverty line of 45 US cents per day and millions of people are at risk of starvation every year (TVET Strategy 2006).

The Plan for Accelerated and Sustained Development to end poverty (PASDEP), Ethiopia second poverty strategy Paper, estimates that the country has to raise its average economic growth rate to 8% annually in order to achieve the Millennium Development Goals. According the MOE, the major barrier to economic and social development is low skill level and very low average educational attainment characterizing the Ethiopian work force of around 35 million people. It is said that over 26% of the work force is unemployed in urban areas and a much larger figure in the rural areas.

The way out from the problem of poverty is thought to be comprehensive capacity building and human capital formation. In this regard, the Non Formal and Formal TVET institutions are expected to play key role in building the needed skilled, motivated and competent work force.

The TVET strategy provides the following useful statistical information. 90% of the poor live in rural areas, most of them exclusively engaged in

agriculture. Out of the registered small and medium sized enterprises, for example, 85% are

grain mills. Most of the registered large and medium sized enterprises in the manufacturing sector (about 800 of them) are concentrated in Addis Ababa.

Only 27% of large-scale manufacturing industries in 2002/3 were privately owned.

Around 35 million people of the Ethiopian work force are characterized by low skill levels and very low average educational attainment.

Only 10% of the urban population has post-secondary school education. As a consequence, 75% of the workforce is concentrated in low skill employment sectors such as commerce, services and elementary occupations.

Less than half of the urban workforce is engaged in wage employment. A significant portion of the urban workforce works for unpaid family business.

More than 40% are self-employed in the informal economy, most of which live on the edge of poverty.

In urban areas, about 26% of the workforce is officially unemployed, a figure believed to underestimate the real situation.

The TVET strategy makes it clear that unemployment among the youth is significantly higher than the rest of the workforce. Generally it is said that there is a substantial skill

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gap throughout the economy, especially in economic sectors with a higher skill level and outside of Addis Ababa.

2. Formal, Non-formal and informal TVET sector in EthiopiaTVET is seen as an overarching term to describe all modes of formal, non-formal and informal training and learning below higher education provided by all government and non government providers. The TVET aims to provide more TVET opportunities to a wide range of different groups including, school leavers, dropouts, people without formal education including illiterates, entrepreneurs and employees, farmers and their families, people from marginalized ethnic groups and other groups.

Realizing the need for skilled human power, it has been envisaged that:“Technical and Vocational Education and Training (TVET) in Ethiopia seeks to create competent and self-reliant citizens to contribute to the economic and social development of the country, thus improving the livelihoods of all Ethiopians and sustain ably reducing poverty.”

It was with this vision that measures were taken to expand the formal and non-formal TVET program across regions and Woredas. Formal TVET has been provided mainly to secondary school leavers. Working people have also been benefiting from the program through evening classes and distance learning. Non-formal TVET has been offering training to a wide range of groups.

Informal TVET sector is also recognized and described as those operations which are unregistered and operating on a very small scale and with a low level of organisation. The informal sector operates without fixed locations or in small shops, outlets or through home-based activities. The government has little or no direct involvement in informal TVET in other words it is not supported, or regulated by the government.

2a. Facts and figuresThe Formal TVET SectorAccording to the Education and Training Policy (ETP), the formal TVET system of the country requires completion of a tenth-grade education to obtain certificate, diploma and advanced diploma upon completion of the levels 10+1, 10+2 or 10+3 of the TVT program. In order to provide options for the increasing number of school leavers, the Government embarked upon a massive expansion of formal TVET since 1993. Between 1996/7 and 2006/7, the number of TVET institutions providing formal and non-agriculture TVET increased from 17 to 388, and enrolment from 3,000 to 191,151. Of these, over 30% were trained in non-government TVET institutions. Around 60% of formal TVET is provided in the form of regular programmes and 40% in evening classes.

Despite the enormous expansion of formal TVET program, it only caters for less than 3% of the relevant age group. Enrolment figures in formal TVET programmes show a considerable gender disparity with about 43% female students. Besides girls are over proportionately represented in commerce and typical female occupations such as textiles and hospitality, and underrepresented in traditional technical occupations. In 2004/05,

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42,000 trainees were enrolled in agriculture TVET programmes and some 10,000 in teacher training institutes and colleges. It is believed that more students were enrolled in agriculture and teacher training institutes in the follow up years.

The growth of enrollment in formal TVET institutions could be observed from the table below.

Table: Number of students by sex and gender2002-03 2003-04 2004-05 2005-6 2006-07

Male 37,377 45,798 51,940 61,415 107,327Female 34,785 41,360 54,396 62,142 83,824Total 72,162 87,158 106,336 123,557 191,151% of females 48.2 47.5 51.2 50.3 43.9Average annual growth rate

30.2 24.6 27.6 30.0

Source: MOE, Annual Statistical Abstract 2008.Note! The actual enrollment data could be higher than that shown in the table above since data from Afar, Somali, Gambela and Harari regions was not included.

The table shows that there has been steady increase in the number of students enrolled in formal TVET training institutions. The total enrollment that was only 72,162 in 2002/03 became 191,151 in 2006/07. The annual average increase was 28.1%. Definitely this is a big success story. However, compared to the youth population in need of TVET training, there is a need for the establishment of a large number of formal and non-formal TVET institutions.

Gender: In the last seven years, female enrollment has also significantly increased in TVET centers. There have been years when the gender gap was in favor of girls and other times in favor of boys. It could be said that the gender gap was not consistent. The number of female students was lower than male students in 2003/03 and 2003/04 and it was greater in 2004/05 and 2005/06. It sharply widened in 2006/07. The reason for this is not yet clear.

Generally, it is important to examine the gender gap and take measures that could bridge the gap. It is also important to examine the types of trades girls are enrolled in. As it is often said girls should not be limited to traditional female stereotype roles. They need to equally participate in all vocational areas including the prestigious ones.

The following table provides a more detailed 2006/07 enrollment figures in TVET centers by region

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Table Distribution of enrollment by regionRegion Total

EnrollmentNO. TVET centers

No of teachers Teacher-student ratio

Tigray 19,420 40 862 1:23Afar - - - -Amhara 29,830 61 1,238 1:24OROMIA 52,596 103 1,768 1:30Somali - - - -Benshangul Gumuz

3,707 14 188 1:20

SNNP 36,198 63 1,155 1:31Gambela - - - -Harari - - - -Addis Ababa 45,195 98 1,742 1:26Dire Dawa 4,208 9 130 1:32Total 191,151 388 7,083 1:27

In 2006/07, the number of TVET institutions owned by the government and private sectors was reported to be more or less equal. The table also shows the disparity in terms of teacher student ratio the lowest being 1:20 and the highest 1:32.

TEVET CurriculumTwenty broad vocational areas have been identified for the TVET program by the MOE. Over 163 trades were also intended under the twenty vocations. The table below shows the number of the trades identified and the levels at which the trades are provided.

No. Occupations Number of trades

Levels at which the trades will be provided

1 Construction 18 Level iii (6); Level iv (7)2 Electricity/electronics 7 Level iii (3), Level iv(3)3 Metal manufacturing 3 Level (iii) (2); Level iv (1)4 Automotive 5 Level iii (2); Level iv (3)5 Textile technology 7 Level ii (1); Level iii (4); Level

iv (2)6 Leather technology 11 Level iii(6) Level 4 (5)7 Agro food processing 23 Level iii (3) Level iv (5)8 Industrial laboratory 5 -9 Business and services 10 Level iii (3); Level iv (5)10 Hotel and tourism 9 Level iii (3); Level iv (4), Level

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(v) (1)11 Information-communication

technology5 Level iii (2); Level iv (2), Level

v (1)12 Metrology 3 Level iii (1); Level iv (3), Level

v (1)13 Health 16 Level iii (1); Level iv (13);

Level (2)14 Culture 8 Level iii (4); Level iv (3) Level

v (1)15 Craft 116 Transport 14 Level I ( 2), Level ii (3) Level

iii ( 3); Level iv (6) 17 Defense 10 Level iv (10)18 Water technology -19 Agriculture -20 Sport -Total 163

The number of trades is not yet exhausted, more could be identified. Currently the formal TVET institutions are providing about 39 trades in regular, evening and distance learning. There is great disparity in terms of trades offered by the different regions. It ranges from 6-39 in regular classes 5-18 in evening classes and 2-11 in distance learning in government institutions. The training areas provided in non government organizations range from 4 - 28 in regular classes, 1-24 in evening classes and 6 to 16 in distance learning. A one year training program is organized for the 10 + 1 program certificate students, a two year program for 10+2 diploma students and a three year program for 10+3 advanced diploma students.

The Ministry of Agriculture runs 25 of the 388 TVET centers. It enrolled more than 20% of the students (35,365) in 2006/07. The percentage of enrolled female students from the total was 13%. The MOE also runs agricultural TVET programs. The major trainings are animal science, plant science, natural resources, animal health and co-operatives.

Curriculum developmentAt the beginning of the launching of the TVET program, the Ministry of Education was in charge of identifying the vocational areas and the specific trades offered under each vocation. It was also responsible for developing training materials centrally. It could be said all training centers were using similar materials for the same training areas. It is envisaged that taking existing experiences of other countries could promote the country to the technological and economic development level that others have reached as much as possible within the shortest period. Thus, with the technical support of GTZ experts, the experiences of Australia and Philippines have been adapted and used as a bench mark.

Occupational standards were developed for all the trades being provided in formal TVET institutions with the involvement of stakeholders. The Ministry of Education has also facilitated the development of occupational standards for vocational trainings provided by

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the Ministry of Agriculture, Ministry of Health, Ministry of Culture and Tourism, Ministry of Defense, Road Authority and a few others

TVET curriculum is no more centralized. Each training institution is accountable for developing its training materials based on the centralized occupational standards. It is facilitated, monitored and evaluated by regional TVET Bureaus or Commissions. Developing training materials has become a challenge for all TVET institutions. To curve the problem, model training materials have been developed and disseminated. However, training institutions are seen using old materials and the model materials without much change. The government expects all training institutions to develop materials that reflect local needs and environments.

The other major problem observed in curriculum development was the continuous change made in it. At the beginning, all training materials were prepared centrally and used by all institutions with similar in puts and processes. That was changed shortly by occupational standards which were prepared for 10+1, 10+2 and 10+3 program. Lately the development of the occupational standards has been re-categorized into five levels i.e. Level 1, Level 2, Level 3, Level 4 and Level 5 packages. This has created a feeling of discomfort on both developers and implementers and is seen as wastage of time and other resources.

The Level 1 and Level 2 training packages are developed for students who drop out before completing grade 10 and for those not entitled to enroll in the 10+1, 10+2 and 10+3 program. The Level 1 and Level 2 packages are short term programs for those who need to acquire specific skills and enter the world of work

Training As has been pointed out earlier, trainees are offered certificate, diploma or advanced diploma program that is provided for one, two and three years respectively. The program has career development opportunity for those who deserve it after giving service in the world of work. In this regard, one of the major challenges is trainers’ capacity. Many of the trainers are said to be old timers and lack the creativity and practical skills to competently give the desired training using the new equipments available in TVET centers.

A number of short term training has been organized to capacitate trainers. The government has made efforts to bring expatriate trainers who could bridge the gap. Yet many feel that care be taken in the selection and deployment of expatriates and more efforts be done to continually upgrade the capacity of local trainers.

The other challenge with regard to TVET training is the lack of opportunity for Practicum. There are no adequate number of factories, production units and other opportunities for attachment. The few that are available are not willing to provide attachment opportunities.

Facilities and equipment

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It is said that many of the government TVET training institutions are well equipped and furnished. Most contacted individuals appraise the effort made by the government to support and facilitate the formal TVET program.

Employment opportunities Experts feel that there is plenty of opportunity for self employment of TVET trainees. It is very difficult to accept this assertion unless labor market assessment and tracer studies are made. As it stands very little is known about the whereabouts of x-graduates since tracer studies have not been made.

The Non-formal TVETFor decades short-term non-formal technical and vocational training has been provided to different groups of youths and adults. Community Skill Training Centres (CSTC), prisons, farmers training centres, rural appropriate technologies, etc are known non-formal TVET training centres. The government, NGOs and the private sector have been running the different training programs. The purpose of all these organizations has been to build the capacity of the workforce and to alleviate poverty by providing skill trainings of the poor and improving their livelihood. Unfortunately the scale at which training has been given was so small that it has not made substantive change on the life of the majority of the poor

In Ethiopia, some of the known trades given in NFTVET centres include woodwork, metalwork, tailoring, embroidery, weaving, typing, computer training, driving, etc. These trades have been given in institutions like Community Skill Training Centres (CSTC), prisons and other government institutions. However experiences vary across regions in the country and in other countries regarding the types of trainings given and the modality under which it is given.

According EECE, Non–Formal TVET is any organized form of training for which the content and learning aims and targets have been defined. By definition, NF–TVET means training based on well-defined curricula, either within or without an institution, with or without guidance from a teacher or trainer.

From the general economic development and the demand for better livelihood point of view, NF-TVET is considered a broad area of learning that accommodates learning/training needs of various target groups both in content, scope and depth and goal orientations. It also includes informal training, e.g. learning on the job or self-learning.

NF – TVET designate every other form of formal technical and vocational education and training. This includes:

Training over different periods of time – from short-term courses of a few days to long-term programs of up to 6 months,

Training through different modalities: (institutional, community based, mobile, link and apprenticeship)

Life skills or add-on components for ABE / Primary Educations Training for a wide range of target groups:

o Unemployed, youth and adults,

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o School dropouts and those with grade 8 - education or lower including illiterate people,

o People potential /active in the informal economic sector, o People from urban and rural areas, o Landless poor, ando Disadvantaged groupso People with disabilities

Non-formal TVET differs from formal TVET in the following respects:

The educational background of the target groups is different and very diverse. Teachers/trainers/instructors are so far usually not certified or examined. There are no standardized curricula to be used in non-formal TVET provision. The duration of training is usually shorter and varies widely. Non-formal TVET is more cost effective than formal TVET.

The recent Non- Formal TVET mapping survey report showed that Non- formal TVET is provided in over 400 government, Private, community and non-governmental organizations. The number could be much more than this as there is one FTC at every Kebele (peasant association) level.

The recent Non- Formal TVET mapping survey report showed that Non- formal TVET is provided in over 400 government, Private, community and non-governmental organizations. The number is expected to be much more than this as there is one FTC at Kebele (peasant association) level. The highlights of the findings of mapping survey study could be observed from the following paragraphs.

Profile of data sources/respondentsNF_TVET training provision is characterized by lack of uniformity in profile of human power. Differences in qualification and experience of trainers and managers within government NGO, private and CBO considerably vary.

The majority (18 out of 19) of the NF-TVET coordinators, managers and trainers are males.

Trainers working in the private institutions have better qualification compared to those working in the government institutions although trainers in government institutions have long years of experience.

In Addis Ababa, trainers working in NGO and the private institutions have better qualification compared to Amhara region and Oromia

Profile of training Providers:The sample training institutions in the three regions mainly consisted of government, NGO, private and community owned. Of the known different modalities of training i.e. institutional, community based, mobile, link and apprentice the mobile modality is

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observed only in one case. The Save the Children UK is the sole provider of mobile training to the rural people on woodwork, tailoring, weaving and embroidery. Although it is known that apprenticeship is being exercised almost in all vocations, there is very little documentation on how it works, how many are trained and what the benefits are in terms of self-employment and improving the livelihood of trainees.

Objectives of the training institutions:There are lots of similarities between the objectives of government and NGO training institutions across the three regions. Most government and NGO institutions provide training that will enable poor youth and adults engage in self-employment with the ultimate goal of improved livelihood of trainees. Disabled persons, people with HIV/AIDS and poor women are among those who are given training opportunities\by NGOs and CBOs.

Types of trades providedCompared to the experiences of other countries, the types of trainings provided in Ethiopia are very few (only 26 types) in numbers although there is distinct variation in terms of types of trainings given in government, NGO and private institutions. The major types of trainings provided in government institutions are basic metal work, tailoring, knitting and embroidery.

Non- government organizations are giving training on leather craft, heavy machine operation, metal work, secretarial science and photographing, and private institutions provide training on wood work, embroidery, hair dressing, food preparation leather work, car décor, massage, driving, basic computer skills, computer maintenance, and beauty skills training. The training areas given by community-based institutions are few in number i.e. trading and family planning.

Target groups:The target groups of government organizations, NGOs and the private institutions are diversified. NGOs provide training to different groups. The government institutions in Addis Ababa provide training for students who drop out from grades 4-8. This includes HIVAIDS orphans, people living with HIV/AIDS and destitute women who meet the academic requirement. For women, the academic requirement ranges completion of grades 3-12.

In the Amhara region, the target groups are unemployed literate youths and adults and, land less rural women, HIV/AIDS orphans and victims and poor rural youths and adults depending on the training center.

All types of training are not given to all the poorest of the poor. Some kinds of trainings are open to all and some others only to literate youth and adults. For example trainings on metalwork, woodwork etc. is given mainly for literate youth and adults.

Selection Criteria:

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NF-TVET trainees are selected among the following groups. Actually, the training centers have their own criteria for selecting their trainees.

• Dropout youths and adults from grades 4-8.• Unemployed youth and adults• Farmers• Poor and marginalized adults who could produce supporting letters from Kebeles.• Disciplined and free form socially disvalued habits• Interested to get training.• Completion of grade 8 education• Orphans• Youth and adults with disabilities• Destitute women• Juvenile delinquents

No one criterion is sufficient for recruiting trainees. Most training institutions employ a combination of criteria to recruit their trainees. What is common to all institutions except the private ones is being poor and having the interest and potential to be self-employed after completion of the training programs? Since the private institutions are profit makers they enroll all those who could afford to register.

Availability of training manuals All the government, NGO and private NF-TVET providers develop or adapt the available TVET curriculum. The training institutions have reported that the available curricular materials i.e. modules and manuals respond to contemporary market needs. However, it has to be noted that market oriented training provisions require continually developing and renovating the curriculum. In this regard very little is known.

Accordingly, the curriculum materials used by most training institutions are adapted from those developed by the MOE, Education Bureaus or TVET Commissions. It is up to the training institutions to take the whole or part of training modules and adapt and prepare their training manuals. For example: training on welding could take more than six months whereas arch welding could take only three months. Thus a training institution that is interested to give training on arch welding could take that part from the module and provide the training.

Market assessment and training needs:All the government, NGO and private training institutions claim that what they have provided so far is need based training. However, none of them were able to produce evidences of need assessments they have made.

Trade preference of trainees:Trades given in government institutions are few in number and fixed. Trainees may apply for the available trades. Most of the time, the number of applicants exceeds the available space. In such instances training institutions are obliged to assign trainees using a lottery system and these forces trainees to accept what is available. The situation is quite

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different in the private institutions since trainees pay tuition fee. They have the freedom of choosing the trade they want. The private institutions also provide training based on current market demands. The situation in NGO institution is also somewhat different from government institutions. Trainees join trades they prefer. The problem in this regard is availability of limited space. This makes NGO and private institutions preferable and attractive compared to government institutions.

Physical FacilitiesIn Addis Ababa, facilities in the training centers are not adequately available. Most institutions lack ventilation and safety features, workshops, and in some cases latrine for trainers and trainees. There are problems in relation to maintenance and security of equipment. In contrast water and training manuals are available in all institutions.

In Oromia workshops, latrine, water, ventilation, training manuals, tools and equipment are available in the most of the training institutions. In contrast, the state of the conditions of classrooms, stores and safety features are categorized as poor.

In Amhara, most training institutions are poorly facilitated in terms of workshops, ventilation, training manuals, tools and equipment and safety features. 25% of the training institutions have poor water and latrine services.

Condition of BuildingsThe state of the condition of buildings of the training institutions fall under two categories. There are buildings that are in good condition and useful. There are also old and dilapidated ones that require maintenance though still being used. In some cases compounds are very narrow.

Equipment In most cases the available equipment are reported to be in good condition and are still useful. However, government institutions are known for using too old equipment that has been used for decades. The present situation requires the use of up to date and adequate equipment. In a fast changing technological world, it is important to bring in new equipment and make trainees familiar with and use them.

Running cost The main sources of fund for the training institutions are government allocations, donation, tuition and income generating activities. However, it was very difficult to get exact information on sources of budget and amount obtained.

Adequacy of the budget:Most government institutions have reported that they don't get adequate budget that enables them to give training all year round. They need adequate fund for the purchase of raw materials, payment of external trainers, follow up of x-trainees require adequate budget. The same thing is true with CBOs.

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Unit cost:The available data didn’t enable to calculate the unit cost in the training institutions. The unit cost and the length of training depends on the nature of the training. Generally, the issue of unit cost requires conducting a special an in-depth study.

Enrolment in training centers/institutions:There is no documented statistical data on enrolment, drop out and retention on NF-TVET institutions at Federal, Regional as well as institutional level. Very little is known about how many trainees have completed their training, self and wage employed and unemployed. The lack of statistical information is even more serious in private and NGO run training institutions.

Class-size: Generally class-size varies from institution to institution. In some cases the number of trainees is as low as 7 and 8. There are class-sizes in the ranges of less than 10; 10- 20; 21-30; 31-40; 41-50 and in a few cases 51-70. Teaching/Training load The class size varies with the type of training given in general, the availability of spaces and training materials and equipment. It could be said in most cases teaching loads are very low. For example in Oromia class-size ranged from 10-20 in 11 institutions, 21-30 in eight and was found above 30 only in a very few institutions. On the job training given to trainers:In most cases trainers were given only 3-5 days on the job training. In Addis Ababa, all training institutions had on the job training for trainers that lasted not more than three days. The trainers of trainers were employees of government, NGOs and private institutions. The training given covered the range of issues indicated in the above table.

It could be said that on the job training was not given to trainers in the Amhara and Oromia regions. The only exception was the Serbo CSTC that has reported of getting on the job training on welding and beekeeping. The training was given by Jima Teacher Education College.

NF-TVET personnelThere is an acute shortage of skill trainers, coordinators and supervisors in the country. The only college which has been giving training to NF-TVET personnel is the Jima Teachers Training College. Trainees successfully completing the training program become trainers and coordinators of CSTCs. The other college that is preparing itself to produce NFTVET trainers is the Debere Marcos Teacher Education College. The maximum number of TVET personnel that the two colleges could produce every year will not exceed more than 100. If all become trainers and train 20 persons every year, the total number of trained persons will become 2000 in one year and 20,000 in ten years. On the other hand the untrained labor force is currently estimated to be 26% of the 35 million work forces. Let alone the national need, the training personnel of the sample training institutions are not yet met.

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Duration of training and proportion of theory and practice The proportion of time investment on theory and practice is 20% and 80% respectively. It ranged from 30% to 70% in a few cases too. This demonstrates that more time is invested on practice rather than on theory as expected. Except the beauty skills and decoration training, the training period for the other trades range between 5 months to 8 months. What is common to all is the weekly contact hour, which is 20 hours.

Trainees’ centeredness of training:Most trainers claim that the training they give is based on market demand, training needs, institutional and trainers' capacity. The actual delivery of the training given is trainees centered. This is also acknowledged by most of the trainees. The very fact that most of the training is practical makes the training trainees centered since trainees are the main actors in the exercise.

Continuity of trainings given:Institution based NF-TVET providers are reported to have been under serving and resources are poorly utilized due to unclear local level policy directions and implementation strategy. Private and NGO based training providers are relatively working better due to their interest to make profit.

Assessment:Trainees' performance on technical trades is assessed based on their practical performance. Trainees taking metal work, woodwork, embroidery, etc are evaluated based on their competence. The performance of trainees is continually assessed using checklists and other techniques to evaluate their practical performance. In contrast trainees taking non-technical trades are assessed based on their theoretical knowledge and practical skills. However, training institutions that give computer, training, business training relies on continuous assessment. Assessment of trainees' performance could an issue for follow up study. There are some training centers like the Nazareth prison where assessment of trainees' performance is made on both theory and practice. In prisons like Nekemte and Jima, it is based on purely practical performance.

Quality of the trainingThe quality of training provided was evaluated using four criteria on a three point rating scale i.e. high (H), medium (M) and low (L) and it was found that both trainees and trainers are satisfied with the training given. However many raise the question why are x-trainees not productive or making use of their training? Some argue that X-trainees didn't develop positive attitude during their training and others feel that there are no job opportunities. This appears a serious issue for all training centers to consider. Community participation:In all the regions, Government, NGO and private institutions don't get any support in the form of cash, labor or material from the community with exception of Serbo CSTC in Oromia. This may not be due to lack of cooperation from the community. It appears that the institutions have not made attempts to get support from the community.

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Success storiesThere are a number of success stories. In many cases, NF-TVET x-trainees are organized in cooperatives and provided loans to start their own income generating activities. This has helped many to become successful entrepreneurs. For example the unemployed youth trained in Wonka CSTC got a loan of Birr 49, 283 to be paid in three years time through government collateral. The group bought their machineries and started its business. There are also many individuals who made fortunes by starting their own business.

Ownership: There are NF-TVET centers/institutions that are owned by the government, NGOs, private organizations and the community. The modality of delivery in some cases is institutional, community based, and apprenticeship. One of the training modalities was found also to be to be mobile.

Informal TVET training:Informal (on-the-job) training is widespread, but due to the absence of a systematic assessment and certification system there are currently no mechanisms to recognize informal occupational learning. Traditional apprenticeships in the small and micro enterprise sector constitute another presumably important, yet entirely un-researched, training environment.

2b. Policies: A number of policy documents related to TVET trainings are available. Some of these are the PASDEP, the TVET strategy and the Education and Training Policy. The main aspects of the documents are highlighted in the following paragraphs.

The PASDEP’s main thrust is to fight poverty through accelerated economic growth, to be achieved mainly through commercialization of agriculture as well as economic growth and employment creation through private sector development. To this end, TVET is expected to play a key role in building the required motivated and competent workforce. PASDEP envisages TVET to provide the necessary “relevant and demand-driven education and training that corresponds to the needs of economic and social sectors for employment and self-employment”. The Strategy stresses the need for an increasing role and involvement of the private sector and non-governmental organisations, as well as community based organizations in the delivery of desired educational services.

The TVET revised strategy: The overall objective of the National TVET Strategy is stated as “to create a competent, motivated, adaptable and innovative workforce in Ethiopia contributing to poverty reduction and social and economic development through facilitating demand-driven, high quality technical and vocational education and training, relevant to all sectors of the economy, at all levels and to all people.” This is more specifically stated as the National TVET Strategy aims to:

Create and further develop a comprehensive, integrated, outcome-based and decentralized TVET system for Ethiopia

Strengthen TVET institutions in view of making them Centres for Technology Capability, Accumulation & Transfer

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Create a coherent framework for all actors and stakeholders in the TVET system

Establish and capacitate the necessary institutional set-up to manage and implement TVET in ensuring quality management system (QMS)

Improve the quality of TVET (formal and non-formal) at all levels and make it responsive to the needs of the labour market

Facilitate the expansion of relevant TVET offers which are crucial to national development

Strengthen the private training provision and encourage enterprises to participate in the TVET system

Empower women and rural people through skills development

Ensure equal access of women and people with special needs to TVET

Strengthen the culture of self-employment and support job creation in the economy, in particular in the emerging regions

Develop a sustainable financing system for TVET with efficient and cost-effective delivery systems and management structures

Build the necessary human capacities to effectively manage and implement TVET

For guiding the development and implementation of the TVET system, the following guiding principles are also stated in the TVET strategy.

a) Demand orientation i.e. consideration of responding to the competence need s and qualification requirements in the labour market.

b) Quality relevance: Striving for the highest quality and relevance of TVET provisions.

c) Equal access and equal opportunity: Increasing access to learning opportunities for all target groups while ensuring quality.

d) Pathways: Creating the possibilities of career progression and continuation of learners.

e) Flexibility responding to the changing occupational requirement and accommodating different demands of various groups.

f) Life long learning: Extending opportunities for all time learning.

g) Gender sensitivity: Providing access to females to all TVET programs.

h) Contributing to fight against HIV/AIDS: Awareness creation and training about preventive measures in all programs.

i) Contributing to environmental protection.

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The Industrial Development Strategy of 2003 highlights the tremendous human resource deficits in Ethiopia being a major reason for the low state of industrial development. It calls for efforts to raise the quality of the Ethiopian workforce to international standards, to reverse the previous marginalization of industrial professions in the TVET system, and to put a substantial focus on building a culture of entrepreneurship and preparing people for self-employment.

2c. Education Sector PlanThe Education Sector Strategy Programme (ESDP) III outlines a comprehensive development vision for the TVET sector. It makes it clear that the TVET graduates were not meeting the expectations and demands of economic sectors at the time the document was developed and issued out.

ESDP III has allocated a total of 3,000 million ETB to TVET over a five-year period in order to further increase enrolment rates, strengthen quality assurance, improve teaching methods, invest in physical infrastructure, equipment, training materials, libraries and ICT facilities, build centres of excellence and assessment centres, curricula and training material improvements, and other investments.

The quantitative growth attained in terms of the number of TVET institutions and enrolment in the sector has been considerable.

2d. Main ActorsTVET operates at the interface of different sectors of society notably the education sector, the labour market, industry, MSE sectors, agriculture and rural development and public administration. Various actors are needed to play a major role in the following functions of TVET system.

• Policy development and policy drafting and reviewing through participation in different bodies and panels.

• Financing through contributing resources to the TVET system.• Quality assurance through active involvement in the setting or occupational

standards and conducting occupational assessment.• TVET delivery through the provision of training to their own staff, offering

internships to trainees and providing apprentice training.• Monitoring and evaluation

The most important actors identified by the MOE include:• Employers, both private and public• The business sector• Representatives from the MSE sectors• Workers and employees represented by trade unions and professional associations• Public and private TVET providers• Civil society and NGOs• People living and working in rural areas by relevant associations• Teachers and instructors in the TVET system

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• Trainees and their families.

2e. Key donors and interventionsThe GTZ is the major donor in providing technical and financial assistance for the formal TVET program. It has been facilitating local and abroad training for TVET training. Locally it organizes short term training by bringing trainers form Germany and other countries. German experts are involved in planning the TVET program and are considered as major support providers.

The Chinese government also provides technical and other forms of assistance for the formal TVET program. It has provided trainers that are assigned in various training institutions. The Chinese government has built and furnished the center of TVET excellence in Addis Ababa.

The government of Ireland has also been assisting the TVET program financially. The Korean and Italian governments have also been providing support in training trainers. Others like UNESCO have also shown some interest to support the TVET in terms of curriculum development although they didn’t pursue further their involvement. Nevertheless there appears a need for more support for the TVET program.

IIZ/DVV has also been supporting the Non-Formal TVET program. It has been capacitating colleges that provide training for CSTC coordinators and Women Associations facilitating trainings for livelihood earning. It has also been providing short term trainings and running workshop for different groups engaged in non formal education.

The TVET system encourages private investment in TVET institutions. Many private TVET centers have been created. Still the government is promoting the involvement of the private sector through the involvement of companies by:

• Stimulating private investment in TVET • Cost saving through increased efficiency in the delivery of training.• Government budgetary allocations and funds provided by foreign donors

f. Demand and supplyThe Available formal TVET institutions provide training only for less than 3% of the appropriate age group. As well known, only a small proportion of those who complete grade join colleges and universities. The rest enter the world of work unprepared after completing grade ten.

It has been pointed out that the youth unemployment in urban areas is considerably high. Similarly rural youth unemployment is also growing due to shrinking land holding. If the youth has to be self employed or engaged in microeconomic activities at family level and in cooperatives demand driven and market based Non Formal TVET programs needs to be extended for it.

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g. Issues: The development of training materials is left for trainers in both formal and non

formal TVET centers. The study has high lighted that the majority lack skills for developing their own training materials. They need to be guided and be given training on training materials development. Otherwise the current trend of relying old materials will continue affecting the quality of training provided.

Training of trainers is another issue that needs the attention of policy makers and planners. As it has been indicated earlier most trainers lack proficiency in planning and providing training to their trainees. This may require organizing more short term and long term trainings.

Facilities and equipments are lacking for providing diversified skill trainings at non-formal TVET centers. There is a need for the diversification of the vocational trades given at NF-TVET centers.

The need for Non formal TVET is enormous. It could take ages to meets the needs of the rural youth through institutional training. The modalities of Mobile and link trainings need to be explored. This could be facilitated by making CBO centers of training.

Unemployment is a serious problem. Those who got TVET training don’t find jobs or are self employed. It is obvious that the job market is not yet well developed and can’t absorb all. It appears that there is and need for more job creation. Those who would like to become self employed also need support in different forms i.e. financial, material, moral etc.

The number of NGOs supporting the TVET program is few. Advocay and lobbying work is required for soliciting more fund. The few local NGOs have serious budget constraints to support TVET programs.

3. Labour market in EthiopiaThis labor market study summarizes the status of the labor market in the main sectors of the economy including the share of the informal sector in employment and income creation in urban areas. The assessment summarizes the points outlined in the TOR using available data and official documents. Therefore, the picture provided here might not be full and complete with regard to depth of coverage and analysis, but it highlights what potential it has for the present and future development of the labor market.

3.1 Facts and FiguresAccording to the 2007 Central Statistics Report, the total population is estimated at 79,221,000 of which 50.1 % male and 49.9 % female1. About 17 % of the total population is urban and the remaining 83 % is rural. About 50 % of the population is between the ages of 15 and 54 and 4 % of the population is over the age of 60.

Twenty three percent of the urban population resides in the capital, Addis Ababa; the remaining urban population is distributed in 10 regions and administrative centers.

1 Statistical Abstract, CSA, 2007

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The economy is characterized by its dualistic nature: the traditional small holding subsistence agriculture and the modern sector which consists of public employment, manufacturing and service sectors.

The agricultural sector economic activities are dominated by subsistence crop and livestock productions. Exportable agricultural commodities including sesame, coffee, cotton, vegetable and spices are also cultivated in many parts of the country. In 2006/2007, the agricultural sector contributed 45 % to GDP and accounted for 80 percent of all exports, mainly coffee, oilseeds and processed and semi-processed hides and skins.

The modern economic activity is concentrated in urban areas. The sector includes all sizes of manufacturing agro processing industries, such as textile, beverage and food processing, construction, quarrying and service sector. The service sector activities are dominated by distributive and non production services including retail, hotel, health, education, banking and finance. In 2006/2007, manufacturing, mining, trade, tourism, construction, services and others made up 55 percent of GDP.

Over 36 percent of the urban population lives below absolute poverty line and urban unemployment rate is estimated at 16 percent. Unemployment is the highest in the age group 15 – 19 years and age group 20-24. About 80 percent of employed youth work in the informal sector, many of whom are unpaid family workers. Unemployment rate for women is higher than men both in urban and rural areas.

Self employment represents about 42 % of the total employment in the country, followed by government or public sector employment (18 %). Private business employment accounts for about 15.7 % of the total formal sector employment. The informal sector contribution to the GNP was estimated up to 40 % and its share of total employment is estimated at 70 %.

Generally, the capacity of the Ethiopian economy is small to absorb the growing labor force entering the market at various levels of the system. Over the past ten years, the urban economy grew at an annual rate of approximately 2 percent per capita, significantly lower than the average urban population growth. The highest growth was registered within the service sector, banking and insurance (9 percent), health and education (8 and 7 percent respectively), transport and communication (7 percent). Within industry sub sector, construction grew at 8 percent while manufacturing growth was limited to 3 percent.

3.2 Formal/Informal Economy and Employment Like elsewhere in developing countries, the labour market is highly segmented between the informal and formal sector employment. The official definition of informal sector economy and employment is household establishments not officially registered as business and do not have business licenses or fixed place of business. The informal sector economic activity generally overlaps with the small cottage industries and micro and small enterprises and absorbed the largest segment of the labour force. About half of the

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operators are in the age group of 25 to 44 years of age. A significant percentage of urban youth and women generate earning and employment from this sector economic activities.

Informal sector employment comprises the self employed mechanics, domestic workers, real estate and other financial intermediaries, daily labor, small food and beverage, clothing enterprises, street vendors of all types including neighborhood outdoor food markets, small scale bar and restaurant services and seasonal farm labor. Because of the heterogeneous nature of the sector, many of the operators engage in one or more line of businesses. The informal sector contribution to the GNP of Ethiopia is estimated up to 40 % and its share of total employment was estimated at 70 % (1999).

The formal sector urban employment and economic activities are comprised of self employment, public sector employment and private business employment. Self-employed people draw income from trade and service business activities they operate personally. Public sector employment play major role in job creation and in facilitating economic growth. The private business employment constitutes employment in industrial and manufacturing, service and trade and transport sub sectors.

3.3 Employment and UnemploymentEthiopia is confronted with rapid population growth and high rate of unemployment. Currently, the size of the population is estimated at 79,221,000. The average population growth is estimated at 2.9 % and urban population growth is projected at 4.9 % percent per annum.

a) Rural EmploymentAbout 83 % of the population is agrarian, where close to 80 % generate employment and income. Although it is difficult to assess the unemployment rate of the farming population due to the traditional and family-based nature of the sector, unemployment is likely to be high and productivity low as a result of outdated farming techniques, dependency on rainfall and limited development of farming infrastructure.

Table 1 – Rural Employment by Sex and Production Type (2005/2006 production year)

Production Type % of Women % of Men TotalCrop production 15.2 8.6 9.9Livestock 9.5 2.8 4.2Mixed Agriculture

75.3 88.6 85.9

Total 100.0 100.0 100.0

Source: Statistical Abstract, CSA (2007)

Of the total rural farming households, 9.9% are engaged in crop production, 4.2 % in livestock and 85.9 % in mixed agriculture (i.e. crop and livestock production). Percentages of women participating in crop and livestock production exceed percentage of men in both activities and slightly lower than men in mixed agriculture.

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b) Urban UnemploymentThe growth in population and higher unemployment rate puts constant pressure on urban economies for creation of new and additional employment opportunities and for effective service delivery systems to accommodate the growing urban needs.

Currently, over 36 percent of the urban population lives below absolute poverty line. According to the latest CSA report on Urban Employment Unemployment Survey, urban unemployment rate has declined from 20.6 % in 2005 to 16 % in 2006. The decline in unemployment rate could be due to increased employment created by Micro and Small Enterprises promotion and due to increase in number of persons attending school. Unemployment is the highest in the age group 15 – 19 years and age group 20-24. From the total unemployment, these two age groups together account for 45 % of the unemployment. Unemployment rate for women is higher than men both in urban and rural areas. The average employment rate is 56 percent. Underemployment is also the other major feature of the urban labor market.

Table 2 - Distribution of unemployment as percentage of total by educational level (2006)

Education level %Illiterate 10.8Literate Non formal 10.6Grade 1 -8 10.5General education 16.9General education completed

17.1

Certificate 19.5Diploma 25.4Above diploma 7.2

Source: Employment Unemployment Survey (2006), CSA

c) Urban EmploymentIn 2006, employment to population ratio was estimated at 48.8 %, of which 59 % for male and 40.7 % for female. The total employed urban population is estimated at 3,836,812, of which 54 % male and 46 % female. The dominant form of urban employment and economic activities are comprised of self employment, public sector employment and private business employment. Self-employed people are referred to as a person who works for himself/herself instead of an employer, drawing income from a trade or a variety of business activities they operate personally. In urban areas, a large portion of self employed businesses are engaged in service and trade related activities and occupations. As indicated below in table -2, self employed economic activities represent about 42 % of the total employment in the country, followed by government or public sector employment (18.3 %). The private business employment constitutes employment in industrial and manufacturing, service and transport sub sectors. Over the past ten years, the urban economy grew at an annual rate of approximately 2 percent per capita.

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The highest growth was registered within the service sector, banking and insurance (9 percent), health and education (8 and 7 percent respectively), transport and communication (7 percent). Within industry sub sector, construction grew at 8 percent while manufacturing growth was limited to 3 percent. The following table depicts the formal sector employment structure and composition by employer (sector) type.

Table –3 Structures / Composition of Employment by Type of Employer and Sex

Employer % of Total Male % Female

%

Government 18.3 21.2 13.2

Parastatal 2.1 2.5 1.3

Formal Private Sector 15.6 19.4 13.8

NGOs 1.9 1.8 1.4

Domestic 9.9 2.5 12.4

Self Employment 42 40.2 43.4

Un paid Family 8.6 8.7 12.7

Others 1.6

Total 100 100 100

Source: Employment Unemployment Survey (2006), CSA

Table 4 – Education Level by Employment Type Employment

Illiterate

Non F0rmal

Grade1-4

Grade4-8

Non Compt

GeneralComplt

Beyondgeneral

Somehigher

Total

Govt 5.4 0.7 3.7 13.6 6.1 28.6 18.3 23.6 100Para 13.7 2 6.7 20.3 6.8 26.13 10.6 14 100Pvt 17.8 1.8 11.3 29.8 7.4 21 4.5 6.6 100NGO 7 3.1 5 17.3 5.9 25.1 12.1 24.5 100Domestic 51.5 3.1 20.5 17.6 2.2 4.3 0.6 0.2 100Others 22.5 12.2 14 26 3.6 14.3 2.7 4.7 100Coop 18.6 4.8 14.7 36.6 4.3 16.4 2.4 2.2 100Self emp 40.4 4.1 12.6 26.9 4.4 9.5 0.9 1.1 100

Source: Urban labor Market in Ethiopia: Challenges and Prospects, the World Bank (2007)

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d) Public sector employmentThe public sector employment has expanded significantly after the introduction of the decentralization system of government. The expansion was concentrated at regional and local levels. As a result, the overall share of the public sector in total wage employment is relatively higher compared to regional level private sector wage and employment. At a national level, the sector’s employment represents about 17.5 % of the total urban employment, accounting for almost one in five of urban formal workers. The sector is a major market for skilled workforce, absorbing about 68 percent of employment among those with higher education. For positions below professional level, job security is a key advantage in public sector employment.

e) Private Business EmploymentAccording to 2008 CSA Report on Large and Medium Scale Manufacturing Industries Survey, In FY 2006/2007 there were 1443 industries engaged in manufacturing activities including food products, beverage, textiles, wood products and basic steel and equipment. In the same report, summary of operations of manufacturing industries by ownership indicated that about 10 percent of the large and medium industries are owned and operated by government.

Table 5 – Number of Establishment by Industry and Share of Employment, 2005/2006

Industry Type # of establishments % Share of Industry

No. of Empl.

% share of workforce

Food and beverage products

381 0.26 46,443 0.34

Textile and Garment, leather

145 0.10 37,740 0.27

Paper & Printing 117 0.08 8161 0.05

Wood & Furniture 270 0.18 7,979 0.005

Chemicals & Pharmaceuticals, Sanitation products

64 0.04 7055 0.005

Rubber & Plastic 64 0.04 7639 0.005

Non Metallic products

284 0.19 11,386 0.08

Basic iron & Metal products

70 0.04 5471 0.04

Machinery, Equipment & Vehicle assembly

47 0.03 3360 0.02

Others (tobacco) 1 - 755 -

Total 1443 1.0 136,043 1.00

Source: Report on Large & Medium Manufacturing Industries, CSA (2008)

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More than 26 % of the industries are concerned either with primary or processed food and beverage production, 19 % in non metallic mineral production, 18 % in wood and furniture products, 10 % in textile, leather and clothing and the remaining 27 % are engaged in plastic, chemicals and manufacturing of tools and equipments including vehicle assembly. Overall, establishments in the sub sector offered employment opportunity for about 136,043 persons. Women constitute 26 % of the total employment of the sector. From the total establishments, only 469 companies employ over 50 workforces, 390 between 20 and 49 employees and 584 companies between 10 and 20 employees.

Food processing is one of the dominant production activities in the manufacturing sub-sector. It includes 9 industrial groups consisting of 381 factories (26%) and 46,443 employees (34%) of the total share of the manufacturing sector. Sugar processing industries are the largest in food processing industries, the establishments jointly generates 35% of employment in the sub-sector.

Eighteen percent of food processing establishments are owned by government. They contribute 71% of employment in the sub sector. Foreign investment in the sub-sector constitutes only 5.3% of the total. The technologies employed in the sub sector are very old and productivity is rather very low.

The small scale manufacturing industries are broadly defined as establishments having less than 10 employees and use power driven equipment to their operation. According to the CSA report of small scale manufacturing industries survey of 2006, in FY 2005/2006 there were 39,027 manufacturing and processing industries including grain mills providing employment for a total of 129,592 persons2. The table below illustrates persons engaged in small scale manufacturing activities by employment type and sex.

Table 6 – Employment in small scale manufacturing by type and sex (2005/2006)

Type of Employee Total # % of Total

% of Male

% of Female

Unpaid family 51,476 37.0 37.99 52.43Unpaid apprenticeship 4,420 3.41 3.10 5.68Paid apprenticeship 2,965 2.29 2.47 0.09Permanent employee 62,193 47.99 48.95 40.93Seasonal & temporary employee

8,538 6.59 7.49 -

Total 129,592 100.0 100.0 100.0

Source: Report on Small Scale Manufacturing Survey, CSA (2006)

2 Report on Small Scale Manufacturing Industries Survey, CSA, 2006

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Of the total employees, about 76 % had training of various types including on the job training. Of the total trained workforce, those who have formal training including university level education constitute 93.2 % of the workforce.

Overall the manufacturing and agro processing sector is very small and weak to provide wide and open employment opportunities to the growing urban population.

F) Service Sector Employment

Economic activities concentrate on private health services, insurance and banking, whole sale and retail trade, hotels and restaurants, communications and information technology services as well as freight and public transportation services. Expansion in banking and insurance services as well as hotel and restaurant businesses provided employment and income to significant number of urban population and businesses. In 2005, the service sector employment represented about 20.7 % of the total urban employment.

g) Construction Sub-sectorConstruction and infrastructure development projects account for substantial portion of public investment in the local economy. Since the launching of Road Sector Development Program (1990), expenditure on road construction has significantly increased both in absolute and relative terms. Projects undertaken by the Federal and Regional Roads Authorities created employment and income for daily labor, micro and small businesses engaged in metal and woodworks, masons, drafts man, small and medium size building contractors and construction machinery and equipment rental service businesses. In 2005, employment in the construction sub sector represented about 5.7 % of the total employment.

h) Micro and Small business (MSE)The national urban development strategy treats MSEs as one of the main instruments for fostering urban economic development and creation of jobs. The MSE Offices under the Bureau of Trade, Industry attempt to broaden employment opportunities in the urban centers by encouraging and supporting self-employment through labor intensive workshops and businesses requiring low amounts of start-up capital. Examples are wood and metal workshops making furniture and low-tech agricultural implements.

Although official national documents are not used to measure actual performance of the MSE sector in creating jobs and employment, from news reports and region based survey results, there is a general understanding and consensus that the sector has helped in increasing employment and improving household incomes in many parts of the urban areas. For example, according to the November, 2004 survey conducted by the Micro and Small Enterprise Office of Tigray National Regional State (TNRS), of the total number of micro & small enterprises operating in the region, 71 % were engaged in wholesale and service activities and the remaining 39% were involved in a variety of handcraft and retail businesses. Of the total of 18,547 surveyed in 10 major cities of the region, excluding Mekelle, 5% of the businesses have a capital of over Birr 10,000, 4 % have a capital between Birr 5,000 and 10,000, 24 % between Birr 1,000 and 5,000 and

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the remaining have less than Birr 1,000 in capital. In terms of job and employment creation, based on the rough data collected in 23 surveyed cities, 85 percent of the businesses employ family members and 15 % are recruited from outside their families3.

i) AGE and Gender Specific EmploymentOnly about half of Ethiopia’s 2.4 million urban youth were employed in 20054. Many youth seem to enter the labor market via low quality jobs or unemployment. About 80 percent of employed youth work in the informal sector, many of whom are unpaid family workers. Youth with better skills have better access to employment: in 2005, only 27 percent of illiterate youth were in paid employment against 61 percent of the high skilled. Skills mismatch is another problem facing youth. In 2005, 36 percent of highly skilled 15-24 year olds were in non-professional jobs.

Women represent almost half of the total population and employment. Like elsewhere in other developing countries, rural women in Ethiopia are active in both domestic and farm activities. The share of women in non agriculture employment stands at 40.6 %. They are underrepresented among white collar workers – while they represent almost half of total population and employment, their combined share in “technicians and associate professionals”, “professionals” and “legislator senior officials and managers” does not exceed 30 percent. Women earn less than men: given the same observable characteristics, women are likely to be paid 22 percent less. At the same time, decompositions of inequality of earnings across gender and educational levels show greater heterogeneity among women, which means that some women do better, others do much worse5.

3.4 The Main Actors in Labour Market

The Ministry of Labor and Social Affairs (MoLSA) is responsible for planning and coordinating employment promotion activities and play significant role in matching labor demand and supply.

The Labor Advisory Board composed of representatives of the labor union and concerned ministries, such as Ministry of Labor and Social Affairs, Ministry of Justice and Ministry of Trade and Industry is concerned in matters related to labor law, labor condition, employment and occupational safety.

3 TNRS Urban Development Strategy, the Urban Institute, 20064 Urban labor Market in Ethiopia: Challenges and Prospects, the World Bank (2007)

5 Urban labor Market in Ethiopia: Challenges and Prospects, the World Bank (2007)

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The Confederation of Ethiopian Trade Unions is the only institute representing workers interest in the country. It consists of 9 federations organized under 445 basic units.

The Employers Association is composed 64 enterprises and 4 employers associations.

3.5 School to Work Transitional Services and PracticesPublic employment services are provided by Ministry of Labor and Social Affairs (MoLSA) and its regional branches. Through these offices suitable candidates are placed in available public sector positions in urban areas.

Graduates of government operated TVET programs focused on agriculture and health extension services are deployed as extension workers or Development Agents / experts in the rural areas with the respective government bureaus and offices of the ministries (MoH and MoRDA) upon graduation.

Through Micro and Small Business Development Offices, TVET graduates trained on construction areas are assisted to engage in self employment ventures, such as building construction material supply, sub contracting for installation of electrical and plumbing systems in government initiated condominium housing development projects in major urban centres.

For non agriculture non health TVET graduates and other regular schoolling fields, private sector employment recruitment is made through news paper ads, vacancy notices on bulletin boards and word-of-mouth referrals from family and friends. Employment seeking candidates also go door to door to inquire about employment opportunity or to submit their CV’s to potential employers for future considerations.

School to work transitional services, such as employment, orirnetation, counseling, training on job search skills, referrals and job placement are not available in many parts of the urban areas. Job fairs and career workshops are not regularly held to promote and facilitate adequately the labor market demand and supply information. Lacking adequate labor market trend information limits Job seeker’s ability to discover and learn about the labor market demand and skill requirements.

Currently, both private and public regular education and training institutions show less interest in linking education and training to labor market trends and directions. They have little or no information on the type and quality of skills demanded by the labor market. They have no mechanism to monitor and track their student transition to the labor market or they seem to care less for what happens to their graduates after leaving school.

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Absence of formal employment services and lack of basic labor market information resulted in mismatch of employment in the labor market; which also puts into question the quality of education and trainings as significant number of both TVET and regular school graduates become under employed or unemployed.

3.6 Demand and supply for the labour MarketPresently Ethiopia has not developed a good periodic Labor Market Information System for tracking the labor market activities and needs. Lack of this vital instrument makes it difficulty to produce a reliable projection of the labor market demand and supply as it exists now. However, general factors such as public and private spending on investment, introduction of new technology, population growth and distribution, education and training and availability and access to labor market information have significant impact on the demand and supply of labor. Mismatch on Labor demand and supply usually occur as a result of imbalances among the factors listed above.

CSA defines economically active population as all persons aged ten years and over who were employed or unemployed in a given period of time. Based on this definition, in 2006, the size of economically active population is estimated at 4,603,862 million, a 3 percentage point increase from 2004. Similarly, the urban population growth rate is estimated at 4.9 % per annum. This fact indicates that there are a large number of new entrants into the labor force.

The size and quality of urban labor supply is also reportedly increasing. In particular the skills profile of the urban workforce has been rising. In 2005 three quarters of youth had at least four years of schooling. Generally, the composition of employment and labor force is changing in line with the overall decline in illiteracy and increase in supply of skilled workforce.

Despite improvement in supply of quality and quantity of the workforce, the supply of labor seems to exceed the demand in formal labor market. The reason behind this disequilibrium is slow growth of formal private sector economy, particularlly the manufacturing sub sector development, to accomodate and absorb the fast growing urban population employment needs.

The 2005 National Labor Force Survey conducted by CSA indicate that although wages and benefits are lower, self employment appears to be the major source of employment to siginificant portion of the skilled labor force in urban areas. Therefore, given the nature and structure of the economy, currently demand for labor is majorly made up of the self employment and informal sector employment. Furthermore, absence of established insititutions to provide employment information and employment related services also constrained smooth flow of information on existing labor market.

3.5 Issues Related to Labor Market

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• Diversification and development of the manufacturing sector of the economy to play a very important role in creating and expanding employment opportunities for the growng population.

• As it stands now, the informal sector is one of the major providers of jobs and income for the urban and rural population. Efforts should be made to gradually and voluntarily bring informal-sector businesses into the formal sector, and use its potential to generate formal employment and increase household income.

• Inability to link education and traing to labor market demand reults in mismatch of employment or underemployment. Thus, Improvement in the quality of TVET trainings and structiral linkages to industries will increase chaces of employment for graduates.

To improve school to work transition;

• Concerned authorities should develop, insititutionalize and publish periodc labor market information and trends

• Formal education and TVET institutions should make an effort to learn and follow current labor market demand and trends to reflect and act according to industry needs and requirements

• Regular schools and vocational training instiutions producing candidates for the labor market should consider establishing career couselling and placement departments to assist graduates in finding employment and to monitor and track transition of students from school to work.

• To address youth unemployment and to facilitate easy entry into the labor maarket, well planned and monitired apprenticeship program shuld be developed and implemented.

4. Lessons learned from previous interventions/approaches and good practices The government has issued useful policy documents necessary for development

and implementation of both formal and non-formal TVET programs. This leadership role has to continue in consultation with stakeholders.

The vocational areas and the specific trades of training have been identified learning from the experiences of other countries that have rich experience and consulting representatives of stakeholders. This collaborative action is bases for linking training to the world of work

The decentralization of the development of training materials at training center level is a necessary introduction for producing skilled workers based on local demand. As has been stated in this document, better job opportunities available appears to be self employment, engagement in family business and small micro enterprises. Thus trainings provided need to be linked to these sub sectors of employment.

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A considerable number of the skilled labor force is facing problems of unemployment. Although the major reason for this is lack of employment opportunity, the efforts to provide need based and demand driven training has to continue.

Apprentice ship is said to be not as effective as desired. Industries, production units and offices are not committed in providing apprentice services to trainees. This may require introducing incentive mechanisms to apprenticeship providers and employers. Financial and other ways of providing incentives based on the experiences of other countries need to be introduced.

School to work transition is smooth only in situations where the government trains student for specific job opportunities. In other cases it is left for the student to find employment in the market. However most students lack knowledge f where to go and apply. In this regard, the problem could be alleviated by providing counseling services.

Studies made on the TVET program are almost inexistent. Documentation, research and evaluation outputs appear to be neglected. This needs to be the concern of all stakeholders.

Conducting tracer studies and providing counseling services could give learning opportunities for trainers to give run effective TVET programs.

5. Practical and policy challengesThe major challenges facing the TVET program have been well documented in the TVET strategy. With some little modifications the major ones are the following. 5.1 In a population of more than 79 million, it is unknown how many Ethiopians in total have access to relevant TVET in particular non- formal and informal TVET. It is assumed, however, that demand by far exceeds the current supply and that the majority of the population is not reached by TVET offers at the moment. In particular, TVET accessible to school-drop outs, unemployed, workers in industry and the MSE sector, prospective entrepreneurs, people living in rural areas and women is in very short supply.5.2 Most TVET provisions in Formal and Non Formal TVET institutions is said to be still of low quality and theory-driven due to resource constraints and lack of skilled TVET teachers. A systematic integration of TVET with the world of work has not yet been achieved. Most curricula used in formal TVET were not developed based on occupational standards.5.3 The plan for attaching the TVET programmes to industrial plants has not fully materialized. The cause problem is mainly lack of cooperation of the employers as they were not consulted during the planning process. Solving this problem requires further advocacy work.5.4 Studies have shown that many TVET graduates remain unemployed even in those occupational fields that show a high demand for skilled manpower. 5.5 Most TVET teachers/instructors have relatively low formal qualifications, severely affecting TVET delivery at higher qualification levels. Besides, existing TVET teachers/instructors are (mostly) inappropriately practically skilled, i.e. not competent to provide TVET in accordance with the occupational standards..

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5.6 Under-funding is a structural problem in the TVET sector, particularly in the public system. Costs of TVET will remain high, if it is to be provided as centre-based training, which is still the predominant mode of TVET delivery in Ethiopia. As a consequence of budgetary constraints, most urban public TVET programmes are under-funded while rural public TVET programmes suffered from poor facilities and shortages of training materials.5.7 The Non Formal TVET system has not been able to fully meet the training needs of the increasing number of youths and adults, Primary and Secondary school leavers, drop outs illiterate adults. This is further threatened by the deep rooted traditional attitudinal outlook towards crafts and craftsmanship. The latter is known as the main cause underutilization of Non TVET in particular CSTCs.5.8 There have not been documented evaluative studies ever since the new occupational standards have been implemented. The lack of adequate and appropriate quantitative and qualitative information on labour market needs and other areas has created a gap in the generation of information that could have been used for improving practice and policy.5.9 Resource shortage is a critical issue in the Non- Formal TVET centres run by the government. Lack of adequate place of work and running costs are the major challenges.

6. SWOT of key actors of TVET and labor marketIt is an obvious fact that training institutions have strengths, weaknesses, opportunities and threats for being more effective and efficient in delivering their services. These are summarized in the table below.

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ssue Strength Weakness Opportunities Threats Proposed intervention

Policy Available - Government commitment Lack of conducive environment

Conducting studies on policy implementation

Curriculum Availability of occupational standards

Lack of competency for preparing training materials at the grassroots level

Readiness to improve the occupational standards with the involvement of stakeholders

Lack of skill in developing training material

Providing training to trainers on training materials development

Facilities and equipment

Gvt formal institutions are better of compared to others

Up to date facilities and equipment are required

Government willingness Budget limitation Mobilize the support of stakeholders

Training of trainers

Availability of training institutions

Competency of trainers

Recognition of trainers in competencies

Lack of competent trainers of trainers

Provide continuous on job TOT. organize local and abroad experience sharing visits

Main actors Government organizations Private sector, NGOs, and Community are involved in the provision of TVET

Limited involvement of the private sector and NGOs

There is plenty of room for involvement of different actors

Lack of transparency

Create more and more opportunities for involvement of different stakeholders whenever necessary provide incentives

Transition from school to work

Some trainees have job guarantee

Not providing training on based on demand and supply principle

Self employment, micro enterprises and family business

A considerable number of graduates of the different training centers lack

Provide training based on market demandFacilitate opportunities for

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employment opportunities

self employment.Transform the informal sector to formal sector by creating trust and legal systems.

Demand and Supply

There are efforts to produce skilled labor force based on market need

In adequate job opportunities

The effort being made to attract local and external investors

The slow development of the economic sector

Create more job opportunities

Information Availability of Educational Annual Abstract, CSA publications

Lack of information Availability of consultants

- Generate up to date informations by conducting different types of studies, evaluations

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7. Opportunities for future improved harmonization of different actors (TVET) The availability of clear policy direction is a good opportunity for extending both formal and non-formal TVET programs for all those who would like to run the business. Measures taken by the government indicate that there is willingness to meet all policy gaps.

The Ministry of Education has been creating plenty of opportunities for involving different stakeholders in the planning and implementation of the TVET program. It has been closely working with other Ministries, Regional Education Bureaus, Universities, Colleges, and production units. It has also the support of a few NGOs and bi lateral and multilateral organizations. There is a strong need for the involvement of NGOs and donors.

The need for training trainers serving in the formal and non-formal TVET institutions is high. Facilitating and equipping the institutions with up to date training gadgets is also essential. These are areas in which stakeholders could give support.

One of the weaknesses of training institutions is linking training to market needs. NGOs and donors could play key role in providing technical and financial support to the training organization by entering collaborative agreements. Generally there is plenty of room for stakeholders’ involvement at regional TVET commission and training institutions levels.

As it has been explained earlier, the government, NGOs, private organizations and the community are running formal and non formal TVET programs. What they all have in common are the occupational standards. Otherwise, they all appear to be following different directions. There appears to be a need for good coordination so that quality services could be provided. This requires creating a forum (consortium) in which the different actors participate. In this regard the Amhara regional ATKLT for could be taken as the best example. The creation of the forum will help to share experiences, minimize resource wastage, conduct coordinated monitoring and evaluation activities, etc. 8. The way forwardThe majority of the Ethiopian labor force is not skilled. However high level, middle level and low level skilled human power is needed so that poverty could be alleviated, economic and technological development could be enhanced in the country. To this end, the various policy documents emphasize the need for expanding both the formal and non formal TVET programs so that the country could emerge as one of the countries where its people enjoy economic prosperity and improve their life conditions. However, this is confronted with a number of challenges that seek solution. The following recommendations are hoped to curve some of the problems being faced.

There is a big demand for TVET training as only one percent of age group is currently getting some form of TVET training. This makes it necessary to establish, facilitate and equip more and more TVET centers. In this regard, NGOs and the private sector need to play more role as the government has budget limitations.

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The increasing number of girls participating in the TVET program is encouraging. However, it is important to examine the gender gap in terms of trades and take measures that could bridge the gap. It is also important to ensure that girls are participating in all types of vocational training

There is variation in the number of trades across regions. A wide range of trades need to be available at training institutions so that students could get the opportunity to choose the area of their interest.

Trainers available at both formal and non-formal TVET centers are lacking practical competency. Alleviating the situation requires serious practical training for existing trainers. Care has also to be taken in the recruitment and deployment of trainers.

Well developed training manuals are lacking in both Formal and Non-Formal TVET centers. This is due to trainers’ inability to prepare their own training materials. Trainers need training and coaching in the development of training materials. In this regard the MOE should take the leading role and other stakeholders should provide supporting the form finance, availing trainers, etc.

Budget shortage is a cause for not providing training all year round at non formal TVET centers. It is also affecting the quality of training provided. In addition to government and NGO support, training centers themselves have togenerate their own fund.

The proportion of time spent for theory and practice seems sounding. However, one doubts its practicality since most of the trainers tend to make the training more theoretical since they lack practical skills. This could be amended by the apprenticeship program provided it is coordinated and made effective.

Apprenticeship is affected by lack of cooperation from factories and other production units. Winning their support requires more creating awareness, conducting advocacy work and introducing incentives.

Trainees are frustrated by the lack of employment opportunities. The economic development and the expansion of formal TVET centers need to be closely monitored. The idea of self employment sounds good but there are many practical problems that affect its realization like lack of land and shelter, lack of seed money and low level of community’s purchasing power. All these issues need to be carefully studied and solved.

Linking TVET provision to local development could also solve the problems of seed money, revolving fund, provision of land, etc.

The non government organizations, bi lateral and multi lateral organizations supporting the TVET programs are few in number. In this regard, the MOE needs to carry out intensive advocacy work and win their support.

Foreign investment in the sub-sector constitutes only 5.3% of the total. Winning foreign investment could create more job opportunities. Thus, the government needs to strengthen existing efforts to attract more and more foreign investment by introducing motivational mechanisms and loosening all bottlenecks.

Expanding the job opportunities require diversifying and developing the manufacturing sector of the economy. In this regard, the government needs to

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encourage private investment by loosening all bottlenecksand paving the way for its rapid growth.

The human power engaged in the informal sector has to be capacittated through short term tailor made training programs. For this the opportunities needss to be created, extended and advocated. The ultimate goal being gradually and voluntarily bringing the informal-sector to the forefront. The informal sector could provide plenty of opportunity for formal employment provided the government encourages the sector in terms of tax trust in becoming legal entities.

Linking TVET to the labor market demand is of prime importance for both employment and growth in the conomic sector. The two should feed with one another in harmony.

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References

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23. Urban Labor Market in Ethiopia: Challenges and Prospects, Vol I and II, the World Bank, 2007

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