Transcript Skills Development for Informal Economy: Issue and emerging approach

Skills Development for
Informal Economy:
Issue and emerging approach
Akiko Sakamoto
Skills Development Specialist
ILO
Why skills in I/E?
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Over 90% of employment in
unorganized sector
Contributes to 60% of GDP
Large number of low-skilled people
Large number of survivalist MSEs
Skills -a step towards improving
working and living conditions
Preservation of traditional artisan
skills
Diversified profile and needs
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Farmers, rural
livelihood
Own-account
workers, home
workers
Casual labour
Child labour
SHGs
Survivalist
enterprises (1-3
workers)
Profitable micro
enterprises (0-10)
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Selfemployment
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Vocational training
Business training
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Life/soft skills
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Wageemployment
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Technology
Marketing
Literacy, communication
Labour rights, OSH
Self-esteem
Motivation/awareness
RPL
Placement support
Demand & Supply
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Over 10 million p.a.
entering I/E
Nearly 50% of
workforce has below
primary schooling
Demand-driven skills
Short-term modular
skills training
Life/soft skills
Post training support
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Formal training available for
2.6 million p.a.
ITI entry criteria class X, or
VIII
12-15,000 NGOs but no data
Largely based on ‘perception’
Public TIs –curriculum preset
SDI/MES scheme (GOI)
Largely provided by PPP,
NGOs
Skill formation process
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Learning from family, community
Own practice and experimentation
Traditional apprenticeship
Unstructured, often incidental, and
potentially a long process
Out of reach of the formal training
system
Some learning through sub-contracting
with formal sector companies
Emerging Features of
Skills Dev. for I/E
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Pre-training
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Training
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Post-training
4.
Systemic issues
1. Pre-training
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Knowing demands of skills
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national or state profiles may be too broad,
perhaps need local-area based, or sector-based
info.
Who should collect the info and fund?
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VD councils/panchayat/District office?
Industry associations/DIC/Sector Councils?
Training institutions?
community assessment in rural areas
Knowing demand is not straight forward --skills not
high priority for MSEs
Future demand is difficult to assess
1. Pre-training
Raising demands for skills
 For enterprises
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Drivers can be:
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Technology upgrading
New market/diversification of products
Sector/cluster/village development plan
Stipulation in public contract (Singapore)
Training voucher (Kenya)
For trainees
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Motivation is an issue
Need to raise self-awareness
2. Training
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Short, modular, practical skills training
Not only vocational skills, but also
business, soft/life skills
Flexible hours, locations
PPP (training-cum-production,
curriculum collaboration, internship,
employment link)
Recognition of prior learning
3. Post-training
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Post-training support
i.e. How to integrate skills training with
other support services
 Access to credit, marketing and other
available support schemes
 Business training
 Hand holding
 Placement (for wage employment)
4. Systemic issues
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Unclear skills profiling and progression for
vocations
Required for:
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Helps to develop training programme
Trainees to decide career path
Counseling of trainees
Incentive to encourage training and upgrading
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Shows to employers the skills levels, improve wage
setting
Incentive for trainees to engage in training or pursue
higher level qualifications
4. Systemic issues
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Recruitment/upgrading of trainers
Registration, and quality assurance of training
providers
Identification and up-scaling of successful
models
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Many efforts and experiments
Unassessed, some antidotal evidence
Need rigorous assessment
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of impact, of coverage
what works, what doesn’t
No common criteria to assess ‘success’
How do we reach out the
Sector?
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Approaches can include:
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Area-based approach
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Local govt (DM, Panchayat, VDC etc.) takes a
lead in guiding the dev. of the area/community,
including provision of LM info./training
opportunities
Skill training facility at community levels
Sector/cluster-based approach
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Link between organized/unorganized sector
through subcontracting
Unorganized sector upgraded as part of the
overall effort in developing the sector/cluster
Sector skill councils/ industry training centre
How do we reach out the Sector?
Expansion of
Public TIs/PPP
urban
Formal
sector
rural
Unorganized
Sector
Local govt.
-rural livelihood
subcontracting
Area-based approach
(DM, panchayat, VDC)
Sector-based
Approach
(Sector-councils)
NGOs
PPP
Thank you