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Role of Moldovan Higher Education in Building Skills for Labor Market

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Role of Moldovan Higher Education in Building Skills for Labor Market Role of Moldovan higher education in building skills for the labor market: challenges and prospective World Bank Group May 2019 Higher education is the leading factor of economic and social progress and development 2 Higher Education structure in Higher Moldova: Education According to art. (76) of the Moldova Education Code, higher education is organized in two fields: • academic, and • advanced professional. The higher education is structured in three cycles: • cycle I – Bachelor’s (BA) degree (ISCED level 6) with a duration of 3 to 4 years; • cycle II – Master’s (MA) degree (ISCED level 7) with a duration of 1 to 2 years; • cycle III – Doctoral (PhD) degree (ISCED level 8) with a duration of 3 years. Art (79) of the Education Code stipulates that the higher education institutions shall have the status of university autonomy. 3 40 35 30 17 14 14 15 15 13 12 12 25 14 14 14 11 10 10 Higher 20 Private Education 15 Number Public institutions, 10 19 19 19 19 19 19 19 19 19 19 18 17 17 17 2005-2019 5 0 • There are 29 higher education institutions in Moldova: • 19 public ones and • 10 private institutions. • 25 institutions in Chisinau municipality and by one in each locality: Balti, Comrat, Cahul, and Taraclia. Source: National Bureau of Statistics 120,000 80,000 Higher Education 40,000 students, 2000-2018 - Students in public HE institutions Students in private HE institutions Source: National Bureau of Statistics Youth’s enrolment rate in higher education is decreasing 40 35 36.2 30 35 34.2 32 31.6 31.8 33 32.8 32 31.2 30.8 29.9 25 28 % 20 15 10 5 0 at the beginning of the school year; as a percentage of population of the age-group 19-23 years Source: National Bureau of Statistics 400 357 351 344 322 308 303 292 288 273 252 Students and 230 graduates of higher 218 210 185 education institutions 200 per 10,000 83 75 80 78 75 inhabitants, 70 68 67 62 48 47 56 56 2000 - 2017 24 persons per 10,000 per 10,000 persons inhabitants 0 Students per 10,000 inhabitants Graduates per 10,000 inhabitants Source: National Bureau of Statistics 7 Higher Education students by field of study, 2005-2018 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 Economic Sciences Law Engineering Education Sciencies Humanities Architecture and Construction Medicine Other Source: National Bureau of Statistics Challenges • Effective partnerships between universities and the private sector are limited; • Lack of clear accountability procedures and transparency; • Financing mechanism for universities gives no incentives to provide graduates with skills that help them obtain good jobs. 9 The weak connection between higher education and the labor market harms individuals and the economy 10 Literacy Numeracy University Analytical % problem solving Work ethic graduates’ skills Working independently do not match Learning Communication what employers Teamwork seek, 2016 Motivation Technical/Job-specific Computer Russian English or other FL 0 5 10 15 20 25 30 35 40 45 % of firms Moderately insufficient Substantially insufficient Source: Moldovan Labor Market Forecast Survey, 2016 11 Skills shortages are a constraint for private sector development & growth in Moldova • Inability to find sufficiently qualified staff is viewed as the main cause of labor shortages – over 25% of firms reported experiencing labor shortage due to inability to find qualified staff* ✓ Consistent with earlier surveys • Firms face shortages of skilled workforce forcing many to scale down operations and eschew growth plans:** ✓ Some claim they could have easily doubled their production if they had sufficient supply of skilled workforce • Medium-sized & large firms are more acutely affected by shortages, e.g. transportation companies lack up to 20-25% of drivers; in apparel sector 10- 40% of workstations are empty; ICT firms lack over 20% of software developers** ✓ Small firms have better agility opting to distribute responsibilities among existing personnel, unlike medium-sized & large firms Sources: *Missing skills. Jan Rutkowski, Victoria Levin, Ali Bargu. World Bank. 2017. ** Assessment of private sector skills demand and the extent of private sector engagement in creating a demand-led skills ecosystem in Moldova. Magenta Consulting. 2017c 12 Desired learning outcomes, described in terms of skills, should be agreed with employers • National Qualifications Framework in place • Occupational and Qualification Standards developed with employers participation The autonomy shall be accompanied by sound Prospective information on universities’ performance • For the government to make informed decisions on policy reforms, financing, and student placement • For students and household to make study choices The financing tools shall include performance contracts and output-oriented per-student funding formulae • Allocation methods and the definition of indicators require careful consideration 13 Thank you!.
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