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Skills Gap Analysis in the Gostivar Municipality

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Skills Gap Analysis in the Gostivar Municipality THE EUROPEAN UNION'S CROSS-BORDER COOPERATION PROGRAMME THIS PROGRAMME IS FUNDEN BY THE EUROPEAN UNION Report of Skills Gap Analysis in Gostivar Municipality This project is financed by European Union Report of Skills Gap Analysis in Gostivar Municipality This report is a part of “Development of integrated touristic products for sustainable economic growth of Gostivar and Korca regions” 1 Report of Skills Gap Analysis in Gostivar Municipality Prepared by: My Career “This publication has been produced with the assistance of the European Union. The contents of this publication are the sole responsibility of Municipality of Gostivar and the partners My Career and Center for Mountain development Skopje and can in no way be taken to reflect the views of the European Union.” January, 2016 2 Content: I. Executive Summary II. Introduction a. Background b. Methodology III. Survey results a. Company profiles b. Current workforce situation c. Cooperation with educational institutions d. Future skills IV. Conclusions and recommendations 3 I. EXECUTIVE SUMMARY The EU Project “Development of integrated touristic products for sustainable economic growth of Gostivar and Korca regions” in Macedonia sought to assist the Gostivar Municipality, in general, and the sector based companies more specifically, so that the can improve the their competitive position in the market. To do this, MyCareer, a local NGO that works in the field of career counseling and internship program, as an implementer of the activi- ty completed the following; (1) undertook qualitative and quantita- tive skills gap assessments in the region, (2) provided recommenda- tions to Municipality of Gostivar for making the educational pro- gram more responsive to the needs of the private sector and (3) improve the cooperation between the academia and the businesses, including establishing a structured internship program. By assisting the business and educational communities take a systematic ap- proach to addressing the skills gaps in the region, the project will be helping to create jobs, start new businesses and improve the com- petitiveness of existing enterprises in the Gostivar region. For this reason, My Career prepared a survey/assessment analysis that focuses on workforce development in Gostivar region, with special focus on the tourism based sector and provided recommen- dations that are immediately implemented by the academia and the private sector to overcome some of the identified gaps. To obtain best results and get the necessary information a specific methodol- ogy was developed which included: (a) Determining target sectors though secondary research (b) Defining of survey sample, (c) Devel- opment of survey questionnaire, (d) Development of follow up 4 interview questionnaire, (e) Training of interview implementers, (f) Implementation of survey process, and (g) Implementation of follow up interviews. There were 65 contacted companies from three selected sectors, which responded to the questionnaire and provided specific rec- ommendation on what needs to be done so that the cooperation between academia and business community is improved. The ques- tionnaire was focusing to assess the following the interviewee and company profile, the current stat of the workforce, level and quality of education programs and future program to improve the skill-sets of recent students and future job seekers. Some of the key findings from the analysis of the questionnaires are that the size of companies in Gostivar region are small companies, majority of them employing less than 20 employees with more than 75% of them employing only full time employees with secondary education degrees (56%). The companies believe that current em- ployees are missing soft skills such as (critical thinking, foreign lan- guage, customer service) believing that this could be improved by offering job specific trainings and introduction of new technology and management practices in the training programs. The current state of cooperation between academic institutions and business community is not satisfactory for majority of the respondents there- fore they suggest new initiatives such as joint partnership programs, internship programs and other initiatives should be established so that this cooperation is enhanced. It is positive that majority of respondents (35%) believe that their company will grow in the next three years thus creating new job 5 opportunities for new entrants in the labor market however, half of companies (50%) indicate that the situation will remain the same in the next period. They indicate that the number of new jobs created will be up-to 5 as a result of their growth. It is interesting to note that companies consider that job opportunities predominantly will be for sales and customer services positions and professionals (technical staff). However, the predominant part of the respondents thinks that even though these jobs will be created it is very hard to retain them meaning that the company will experience a cost of developing a professional and companies with better financial indi- cators will have a free ride in “stealing” these readymade profes- sionals. The companies consider also that is very difficult to find employees in the market because of the absence of recruitment agencies and employment mediators. At the end, companies provided several recommendations and suggestions on how to overcome these hurdles that prohibit the growth of companies because of lack or absence of talents and skill- sets of job seekers in the companies. The recommendations were divided into two parts: quick fix (short term) and transformational (long term) activities that would improve the linkages for of talented workforce. The quick fix includes activities that build on career perspective of current talents as well as recruitment of these talents by companies. Whereas the transformational activities focuses on building long-term relationships between academic institutions and business community that focuses on providing the talented work- force that match the needs of fast growing companies and competi- tive sectors in the region. 6 II. INTRODUCTION a. Background Gostivar is located in the Polog valley, forty five minutes drive from Skopje. The land is fertile. The municipality is surrounded by high mountains, Shara, Bistra and Suva Gora. The biggest Macedonian river – Vardar has its springs here. Gostivar is situated on the route of the Corridor 8, projected to connect Varna to Skopje and Tirana. Agriculture and cattle-breeding contributed to the local economy. The number of inhabitants of the town grew constantly, from about 2.000 in 1874 to 7.832 in 1948. Today the Municipality of Gostivar has 35 inhabited settlements with a total population of 81.035 out of whom 35.847 live in the town of Gostivar. The Municipality is among the biggest in Macedonia. Gostivar has one of the lowest activity rates in Macedonia. This directly affects the low employment rate. The gradual rise in unemployment was the most eminent result of the transformation of the economy of Gostivar. The collapse of the “Gostivar’s” former socialist enterprises resulted in a loss of over 4.900 jobs. Although the big industry in Gostivar did not cease to exist overnight, its downfall was one of the most dramatic features of the transition. ndeed, few persons work in Gostivar today. The number of officially registered jobs in Gostivar has almost halved since the beginning of 90’s. Official employment in Gostivar is remarkably low, just 10.087 persons. Bearing in mind that there are 51063 persons aged 15 to 64, then we have a strikingly low activity rate of approximately 21,3%, among the lowest in the country. Many of those who are employed hold jobs in the public sector, either within the municipal administration, or in the local health, social, cultural, educational and judiciary institutions. In fact, the single biggest employer in the Municipality of Gostivar is the local hospital with about 650 employees, followed by HPS “Mavrovo” with 360.59 The various bodies of 7 the municipal administration employ around 100 persons, whereas the municipal enterprise for Water Supply “Komunalec” employs another 200 people. Moreover, Gostivar lacks qualified labor force that would make the economic activities in the municipality move to a higher value added production and services. Considering the low level of education in Gostivar it is not surprising that few people are employed. Among those who are registered as unemployed, only a fraction has degrees from universities (2%). About 21% of the job seekers have secondary education degree, the other 77% holding a diploma from primary school if that. The small and medium enterprises (SME’s) make more than 99% of all business subjects in Gostivar. There are just seven companies employing more than 100 workers. The number of companies employing more than 10 workers is also extremely low, not bigger than 40-50. What prevail are sole proprietors or companies engaged in petty trade and services employing 2-4 persons, including the owner and manager. The construction sector and related activities such as manufacturing and trade of furniture, windows, doors, floors bathroom’s equipment as well as processing of different construction materials (marble, cement, and granite) is the most vibrant part of the economy. The major reason for that is the huge demand on behalf of the Gostivar’s emigrants. Popularly referred to as guest-workers these people invest part of their savings earned abroad building houses
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