International Labour Organization Promoting decent work for all
Background Paper for the Regional Workshop: “Quality Apprenticeships and Work Experience Measures to Improve the School-to-Work Transition”
Theo van der Loop, Phnom Penh, 6-7 October 2015 1. Problem Statement 2. Background & Objectives 3. The Apprenticeship Life Cycle 4. Definition & Potential of QA 5. Comparison with Internships 6. Four Building Blocks 7. Cross-Cutting Issues 8. Steps to Set-up/Improve a QA System
2 “The number of young people out of work globally is nearly as big as the population of the United States.”
The Economist, April 27th 2013.
3 Globally 75 mln. young people are actively looking for a job (ILO 2013).
But many more (290 mln.) are NOT in Employment, Education or Training (NEETS).
=25% of the planet’s youth.
Almost equal to the US Population of 311 mln.
Source: The Economist, April 27th 2013.
4 The economic crisis has hit youth in a disproportionate way: ‘last in, first out’
There are almost 8 Million more unemployed youth since the start of the crisis
Source: ILO 2012.
5 Unemploy- Youth Philippines(Q3) Country ment Unemployment (in %) (in %) Indonesia(Aug)
Thailand (Q2) 0,6 2,2 New Zealand (Q3)
Singapore (Q3) 2,5 6,8 Pakistan Macau, China (Aug) 2,6 6,7 Korea, Rep.of (Oct) 2,9 8,3 Australia (Oct)
Japan (Sep) 3,3 7,2 Taiwan, China(Sep) Sri Lanka (Q2) 4,2 19,0 Taiwan, China(Sep) 4,2 13,8 Sri Lanka (Q2)
Australia (Oct) 4,3 10,3 Japan (Sep) Pakistan 5 10,6 New Zealand (Q3) 5,7 16,2 Korea, Rep.of (Oct) Indonesia(August) 6,56 19,9 Macau, China (Aug) Philippines(Q3) 6,6 17,9 Singapore (Q3) Sumber: Publikasi ILO. Keterangan: Thailand (Q2) 1. Tingkat Pengangguran Terbuka: Umur 15+, kecuali 0,00 5,00 10,00 15,00 20,00 25,00 Macau,China (16+), Pakistan (10+), dan Sri Lanka (10+). 2. Tingkat Pengangguran Terbuka Usia Muda: Umur 15- Tingkat Pengangguran Terbuka Usia Muda 24 tahun, kecuali Hongkong, China( 15-19), Macau, Tingkat Pengangguran Terbuka China(16-24), Pakistan (15-19), Singapore (15-29). Source: BAPPENAS 2013. 6 G20 – 2012
SDGs 2016 – 2030
7 Landmark decision by the G20 Labour and Employment Ministers to: “…promote, and when necessary, strengthen quality apprenticeship systems that ensure high level of instruction and adequate remuneration and avoid taking advantage of lower salaries.”
QA as one of the key policy tools to promote effective school- to-work transitions.
8 17 sustainable development goals and 169 indicators One dedicated goal - SDG 8 - to Decent Work for All.
9 35
30 Ireland Italy y = -0.5601x + 31.633 R² = 0.6499 25 France
20 US UK
15 Denmark Canada Australia 10 Switzerland Austria Germany Youth unemployment rate 2011 in (%) 5
0 0 5 10 15 20 25 30 35 40 45 50
Apprentices per 1000 employees
Source: Axmann and Chatani (2014). 10 11 The objective is to develop a comparative analysis of existing apprenticeships programmes in view to catalyse thoughts and inspire dialogue.
The present background paper is focused on what apprenticeships and other work based training programmes exist in the region and beyond.
12 Source: UNESCO 2012. UNESCO Source:
13 14 Stage 1: Apprentices are mostly recruited directly by employers based on their labour needs.
Exceptions: e.g. Australian Group Training Organisations.
15 Stage 2: Dual systems: combination of on-the-job and off the- job training, typically in Germany. Singapore and China: the “Train and Place” model. India: a laddered system. Stage 3: Support fro the apprentice, e.g. from an external training provider, or from the employer. Stage 4: In some countries (Australia) it is common for completed apprentices to remain with their companies, but in others (India) it is not.
16 A "job interview from hell"
17 A unique form of vocational education/training Combining on-the-job training and school-based learning Gaining professional experiences Learning applied knowledge as well as soft skills Defined competencies and work processes Regulated by law Based on an oral or written employment contract Includes a compensatory payment Includes a standard social protection coverage Formal assessment Recognized certification at completion A clearly defined duration.
Source: ILO 2015a. 18 G20 Task Force on Employment (OECD 2012): 16 Key Elements (Annex 1) 10 key Features (Table 3, page 8)
World Bank & ILO (2013) Study of 11 countries: 9 principles (Table 3) Measures of Success (Annex 2)
Interrelation between these frameworks attempted in Table 3.
19 Five Reasons You Should Consider an Apprenticeship 1. You will learn valuable job skills 2. You will earn a salary 3. You will gain independence 4. You will jump-start your career 5. You will open doors
Potential for Employers: Raise level of workforce skills cf. needs of companies Raise competitiveness and productivity
Potential for Society: Avoid skill shortages and tackle skills mismatch Reduce unemployment. Raise school enrolment rate and avoid school drop-outs. Support economic growth
20 21 Wage Legislative Program Off-the- Social Formal Recog- Duration framework of learning job Security assess- nized training ment certific- ation Trainees- Maybe No No No Yes No No 12-24 hip months
Internship Maybe No No *) No No No *) No *) 3-6 months
Informal Pocket No No No No No No Variable apprentice money or in kind -ships
Industry Yes Maybe Maybe No Maybe No No Variable attach- ment Apprentice Yes Yes Yes Yes Yes Yes Yes Fixed -ships 1-4 years
22 Internships are typically short-term ways of acquiring work experience often for white-collar & professional careers, while: A QA is a complete and comprehensive study in itself whereby one earns a structured wage as well. Six differences: 1. Internship programs outnumber apprenticeships (esp. US) 2. Apprenticeships are longer term 3. The pay is greater than with an internship 4. Apprenticeships give you hands on training 5. Classroom training is tied to the apprenticeship 6. You’ll come out of the apprenticeship with a job. Another difference: Internships do not require a direct investment in training by the employer, like in the case of QA.
23 A UN intern camping in Geneva.
Other Types of Internships: An International Student aiming for an Internship in the U.S. (interview). US College Students increasingly take up Internships in China. Virtual internship, in which the intern works remotely.
24 1) Social Dialogue 2) Roles & Responsibilities 3) Legal Framework 4) Financing Arrangements
25 A necessary pre-condition. Not in all countries there is a tradition of active cooperation between social partners in this area.
Step 1: Promote Social Dialogue and Coordination ◦ Multiple layers of coordination ◦ QA work best if they are jointly managed by the social partners and relevant institutions (e.g. reluctance of TU in Indonesia).
Step 2: Launch a broad, national Socialization Campaign.
26 Proved very effective in the World Bank supported Lifelong Learning and Training Project in Chile, entitled Chile Califica
Objectives of Campaign: Explain roles & responsibilities of the main actors, Make employers aware of their crucial role to make sure skills learned are needed in the labour market, and that this is beneficial for their productivity and innovation capabilities. Make apprentices more aware of their social and labour rights and obligations. Reduce social stigma, broaden youths’ perspectives, and improve impressions about apprenticeships and jobs.
27 Reach out to training institute in the cities/districts Media socialisation by briefing key journalists. Media visits to the boards of selected major media outlets in the provinces. Radio-spot campaigns at a large number of radio stations (e.g. 12 times a day for 40 days). Run a radio talk show program on major networks. Use of social media and website development. Involvement of celebrities and issuing of awards. ADECCO Group’s Global Street Day (54 countries). ‘The Apprentice Asia”: another example of media attention. Involve networks such as GAN, EAfA, EYF, ILO/CINTERFOR, SENAI, and FKJP.
28 1) Employers: Should be in the driver’s seat (social dialogue).
2) Government: Co-pilot, or temporary in driver’s seat.
3) Training providers: work closely with enterprises.
4) Chambers of Commerce / Associations of small business owners: Support enterprises by sharing knowledge & training workshops.
5) Trade Unions: key role in design & implementation and in safeguarding the rights and welfare of apprentices.
6) The Apprentice him/herself: Pro-active participation; Payment as employee, or receive a stipend/allowance.
29 Step 3: Involve Small Enterprises
Step 4: Take a Sector Approach
Step 5: Formalize the Informal Economy
30 MSMEs typically make up 90% or so of enterprises in many countries; both formal and informal.
Most apprenticeship programs in Germany and Austria are offered by SMEs (more Medium-sized).
Constraints for SMEs to take on more apprentices: 1) Operations are too limited to provide sufficient scope; 2) Concern that trained apprentices would be “poached”; 3) High costs of training by experienced workers and of meeting regulations on training quality and working conditions.
EC: 7 Guiding Principles for support for SMEs which offer QA: page 20. Case Study: Apprenticeship pays off for SMEs in India, if apprentices are retained 31 Traditionally in manufacturing & construction.
Expanding apprenticeships to: Service sectors: Retail, Tourism & Banking (Women) Higher-up in the Value Chain Computer technology
Key Success Factor for QA: Sector-based approaches sustain PPP, and assure the quality of apprenticeship training and the quality of apprentices’ employment.
Multinational companies can be Drivers of Change to expand QA: exporting the BMW system to the US.
32 The informal economy is dominating employment in many developing countries: 50 to 70% of labour force.
Informal apprenticeships function as an important training mechanism.
Based on an oral training agreement, a young person acquires the skills of a trade or craft from a master craftsperson while working in a SME.
33 ‘Transition from the informal to the formal economy’ is now firmly on the ILO agenda: an official ‘Recommendation’ (ILC).
Seven Key Messages identified to upgrade informal apprenticeships ◦ Message 1: Capitalize on the existing system ◦ Message 2: Strengthen the apprenticeship contract ◦ Message 3: Bring new skills into informal apprenticeship ◦ Message 4: Enhance the quality and reputation of informal apprenticeship ◦ Message 5: Improve equal access to informal apprenticeship ◦ Message 6: Include informal apprenticeship in the national training system ◦ Message 7: Take a step-by-step approach.
ILO (2012): Upgrading Informal Apprenticeship: A Resource Guide for Africa.
34 Selected initial steps in such a transition process:
1) Link informal apprenticeship with formal training provision
2) Support local actors spearheading initiatives, esp. SICOs – ‘Small Industry and Community Organizations’ (ILO 2015 Resource Guide)
3) Use competency-based log books and standardisation of informal apprenticeships through a Code of Practice signed by master craftsmen and apprentices
35 Apprenticeships are work placements, and apprentices are considered as workers, not as students, and thus given employment contracts.
Formal laws and regulations ensure decent working conditions, and avert exploitation.
Assessment at the end of QA should be tripartite and certification of successful completion recognized nationally.
Responsibility often shared between two or more Ministries.
Interesting case of Indonesia: The pillars of a comprehensive skills training system are solidly in place, And they are institutionalized through laws & regulations.
36 The pillars of the skills Regulations on Skills Training training system exist: exist:
The Manpower Law No.13/2003 Competency Standards The Manpower Ministerial Decree Competency Based Training No.247/2004 on Skills Training The Government Regulation Third Party Certification No.23/2004 on National Board for Complements of the Professional Certification (BNSP) System: The Government Regulation No.31/2006 on National Skill Training Accreditation System (SISLATKERNAS) Labor Market Information The Presidential Regulation No.8/2012 (Bursa Kerja) on Indonesia National Qualification Framework (KKNI)
But the system is not functioning well…..
37 1) The development of competency standards is not demand-driven, but largely government-driven; Sector associations are not taking the lead;
2) Little information on the use of Competency- Based Training, but it is not yet very widespread;
3) The accreditation system is fragmented;
4) Professional certification is not used widely, mainly because of its relatively high cost.
38 Long-term process, to be started simultaneously with some of the other steps.
Consultation with social partners & training providers should precede legislation.
Regulation of the contract.
National recognition of apprenticeship certification, and flexibility remains important, e.g. European Qualifications Framework (EQF).
Alternative: In Benin, provincial governments have concluded agreements with local business associations to organise joint end-of-apprenticeship assessments for youth twice a year.
QA require good governance to prevent misuse as a form of cheap labour
39 Key Success factors leading to QA: 1) Incorporate entrepreneurship with technical training; 2) Combine training with earnings, access to social protection and respect for labour rights, 3) Combine classroom and workplace training which enables employers to match training to their needs. Key Features of a QA program: QA should have a strong training component. QA provide training that is not too narrowly focused. QA should operate according to competence-based completion rather than time-based completion QA should be certified and well integrated with the formal schooling system. Examples of Japanese Job Cards system & European Skills Passport:
40 Source: Ministry of Health, Labour and Welfare, Japan (2009).
41 Source: https://europass.cedefop.europa.eu/en/documents/european-skills-passport
42 Full public funding of apprenticeship systems is not an option in the long run. Therefore: Step 8: Explore Shared Financial Arrangements
Shared between firms, apprentices and the government.
Usually, it involves government funding of off-the-job training, & Employers directly provide on-the-job training.
To support companies that offer QA positions, Funds are established in many countries: All employers are required to pay into the fund, while the host companies of QA receive funds per apprentice they take on.
43 The government may also introduce tax incentives for host companies. Other forms of incentives can also be envisaged: during the apprenticeship, for example: lower taxes social security contributions direct subsidy to the firm or the apprentice at completion if the apprentice is hired; in Spain, employers can count on a reduction in social security contributions if trainees are hired on permanent contracts. Differentiation of the subsidies should be considered to encourage take up of low-skilled apprentices.
44 Step 9: Pay Special Attention to Gender & Disability
45 One of the main challenges of QA systems is to make sufficient apprenticeships available for women. Women are mostly in the minority in apprenticeships, disproportionately to their labour market participation. Proportions of women in apprenticeships: England 54% of apprentice commencements Australia 44% of apprentices in training Germany 41% of commencements France 31% Various countries 10 and 25% Canada the lowest at 17%. Indonesia and Egypt: predominantly male (no clear figures). Social dialogue and socialization should break down gender stereotypes, but at the same time also make sure that apprenticeships are offered in sectors young women prefer (e.g. the service sector).
46 QA should facilitate participation by disadvantaged youth. Low participation rate of apprentices with a physical or learning disability: England 8%, Germany 2.2%, Australia 1.5%, and France 1%. Different types of arrangements for apprentices with a disability exist: Special schemes for apprentices with a disability, e.g. additional subsidies could be offered to employers hiring workers with disabilities Extra support for apprentices with a disability Admission requirements that can preclude people with a disability pre-apprenticeship schemes could be offered to prepare them for apprenticeship training
47 Step 10: Identify Risks of Rapid Expansion
48 Some countries have chosen to modernise their apprenticeship system by rapid expansion through:
1) Increasing the number of occupations for which apprenticeships are available;
2) Opening up apprenticeships to broader groups of people;
3) Providing incentives or funding to employers, training providers and/or apprentices
4) Funding third parties to help grow the system.
49 Potential risks are (cf. the ‘Model Framework’ of ILO/WB):
1) A rapid increase can lead to quality problems.
2) Employers may be persuaded to participate without being fully aware of their responsibilities.
3) Completion rates may be low unless quality is properly managed.
4) Rapid establishment in new occupational areas without a tradition of formal training can lead to the risk of low-quality qualifications and workplace curriculum.
5) The establishment of different systems should be avoided, as it can lead to the newer systems being viewed as inferior.
Extensive stakeholder consultation and involvement can assist greatly in reducing most of these potential risks.
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