Employability focus needed for vocational training programs

• ADB says SL vocational training employability on par with South Asia
• Policymakers should focus on long-term employability rather than landing jobs
• Despite new programs, little infusion of new tech for trainees

By Shailendree 

Wickrama Adittiya

The employment rate of vocationally trained graduates of programs funded by the Asian Development Bank (ADB) in Sri Lanka is around 70%, comparable to other South Asian regions like Bangladesh, Bhutan, and Nepal, a top official said yesterday, calling for evaluations to be focused more on employability rather than employment. 

ADB South Asia Department Human and Social Development Division Social Sector Economist Ryotaro Hayashi - Pic by Ruwan Walpola

ADB Social Sector Economist Ryotaro Hayashi told a gathering at the Centre for Poverty Analysis (CEPA) open forum on employment outcomes of technical and vocational training graduates in Sri Lanka that the job placement rate in Bhutan was 76%, 62% in Bangladesh, and 63% in Nepal. While Kerala, India had a single digit job placement rate, Hayashi explained this was because they were more focused on employability, as opposed to employment.

This meant that students continued their higher education having completed training courses, as opposed to immediately looking for employment, which could be a short term effort. In Sri Lanka, however, employment is often seen as an immediate step after a Tertiary and Vocational Education Commission (TVEC) training program.

“Whenever I talk to policymakers in South Asia, they expect TVET to reduce the number of people not in the labour force,” he said, adding, “TVET is trying to encourage labour force participation, especially in the case of Sri Lanka.”

He made the remarks while presenting data on ADB’s experience in South Asia, and added that the critical mass from TVEC is technician and associate professionals, plant and machine operators and assistance, and service and sales workers.

Also participating in the open forum was Marga Institute Chief Executive Officer Amar Gunatilleke, who spoke about the Self-Employment Promotion Initiative (SEPI), a loan scheme introduced in 2013 that offers up to Rs. 500,000 to borrowers.

Eligibility criteria for SEPI includes the completion of a national vocational qualification program or skill development program, as well as an entrepreneurship course under a recognised Vocational Training Institute registered under the Skills Development and Vocational Training Ministry.

The Marga Institute study looked at the success rate and effectiveness of the loans, and Gunatilleke shared that 1,259 people had applied for the loan. The sample size of the study was 500, of which 44% were between the ages 25 and 34 years.

A total of 52% were over 35 years of age, and Gunatilleke said this raised a question on the true purpose of the individuals taking out a SEPI loan.

While beauty culture (36%) and dressmaking (10%) were some of the popular industries for which loans were taken, he said, “Over 90% of the sample who received beauty culture training are currently working in that particular industry. The corresponding figures for dressmaking is 68%, electrical and mechanic is 65%, and carpentry is 84%.”

He added that 14% of those who received the loan for a particular industry are no longer working in that industry, and have changed their industry after receiving the loan. The reasons for this change include the failure of the business, as well as employment in other sectors. “Of them, 37% said it was difficult for them to find time to do a business while doing a job,” Gunatilleke explained.

While 68% of the borrowers have paid back the loans, only 54% have started a business after receiving the training, and 43% have used the loan to improve their existing business. A total of 3% never started a business.

The need for reform within TVEC programs, as well as the need for better trainers, was also discussed at the open forum, which also saw the participation of Skills Development and Vocational Training Ministry Skill Sector Development Program Program Reform Specialist Dr. W.G. Somaratne, Tertiary and Vocational Education Commission (TVEC) Deputy Director General Janaka Jayalath, and CEPA Senior Researcher K. Romeshun.

In response to a question on whether Sri Lanka’s vocational training sector is geared towards meeting the demands of the changing nature of work, Jayalath said, “The simple answer is no,” but TVEC and the institutes were working on introducing new programs on automation and mechatronics, but there was slow adaptation.