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GEMM CROSS COUNTRY
CAPACITY-BUILDING EVENT
PROMOTING PARTNERSHIPS FOR DEMAND DRIVEN
EDUCATION AND TRAINING
Turin (Italy), 4-7 May 2015
Dr. Roby Nathanson
Israel Local Facilitator – GEMM Pilot Project
Director General, The Macro Center for Political Economics
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CONTENTS
Context
Expected
Results
Main Objectives
of the Project
Initial Results
Specific Project
Objectives
Initial Conclusions &
Recommendations
CONTEXT
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HIGH SCHOOL GRADUATES - 2013:
 Only 53.4% of Israeli youth in the age of high school
graduation have passed their matriculation exams.
 Approximately 15% receive some sort of professional
training.
 More than 30% of Israeli youth have an inadequate
education that does not enable them to acquire a
profession in the future.
More than 30%
of Israeli youth
have an
inadequate
education.
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POVERTY RATES AND INEQUALITY
 Among the OECD countries, Israel is second
only to Mexico in poverty rates within the country.
 7.1% of the members of families with two or
more earners in Israel are below the poverty line.
 Israel is ranked 4th from the bottom in the index
of income inequality - the Gini index.
Many who
belong to lower
income deciles
are residents
of the south of
Israel.
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LABOUR PRODUCTIVITY
The labour
productivity in
Israel is below the
OECD average by
18% (2013)
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GAPS IN LABOUR PRODUCTIVITY
Hi-Tech Industries:
 Are characterized by high productivity, high
average wages and high investment rate, which
also increases productivity over time. Workers
are more likely to have college degrees or hold
extensive professional knowledge.
Israel stands out
in investment in
R&D, but nearly
all investments
are directed to HiTech industries.
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GAPS IN LABOUR PRODUCTIVITY
Traditional Industries:
 Are characterized by low productivity, low
average wages (often one that places its
employees below the poverty line), particularly
low investment rate and a majority of workers
without a college education and unique
professional capabilities.
The investment
rate in traditional
industries in the
OECD is more
than 150% higher
than in Israel.
GEMM PILOT PROJECT
WORKING IN PARTNERSHIP TO
BETTER MATCH SKILLS OFFER
AND DEMAND IN THE SOUTH
OF ISRAEL
MAIN OBJECTIVES
OF THE PROJECT
MAIN OBJECTIVES
 Formulate a program to promote
vocational training in the South of
Israel
 Put emphasis on vocational education for
youth and specific attention to gender
equality.
 Will be based on the analysis and the
local needs assessment to be performed.
 Identify and promote a training
program to improve sustainable
employability of the population in the
South of Israel and of youth in this
area in particular.
MAIN OBJECTIVES
 Stabilize and systematize an
information feedback mechanism in
the areas of consultation
 Identify the needs of local stakeholders.
 Promote real dynamics within these
spaces.
 Build the capacity of stakeholders
involved in the project.
SPECIFIC PROJECT
OBJECTIVES
SPECIFIC OBJECTIVES
 Conduct an in-depth analysis of
vocational training institutions in the
south of Israel.
 Creating a profile of the average student
(age, sex, socio-economic background,
religion etc.)
 Which professions have the highest
amount of students.
 Which have the highest demand and
quality of Teachers.
 Enhance and update existing prediction
models for required professions in the
South of Israel.
 Develop strategies for which actors
from the industry and the business
sector will form a key part of the
process of vocational training in the
south of Israel
 In forms of apprenticeships, sharing
expertise etc.
SPECIFIC OBJECTIVES
 Conduct a quantitative economic
analysis of the South of Israel:
Ashkelon, Beer-Sheva and Ashdod
area.
 Sectors of the economy
 Labor supply and demand
 Number of employees by industry
 Value Added to GDP
 GDP per employee
 Work integration among vocational training
graduates.
 Organize a systematic information
feedback mechanism based on a skills
needs analysis model in order to
promote greater adequacy of the
training / employment.
 Important step for future research:
Offer an economic stimulus package to
prevent the departure of vocational
training graduates from the South of
Israel.
EXPECTED RESULTS
EXPECTED RESULTS
The pilot project is set up – the
focus areas of the capacity-building
program are selected, and project
needs are identified.
III. The existing vocational education
system in the South of Israel is
mapped and their suitability to meet
the demand is determined.
II. Comprehensive information
regarding the discrepancy between
the demand and supply of
professions in the South of Israel is
provided.
IV. Tools for operation and their
budgetary costs required to execute
the desired results are offered and
several educational institutions are
indicated for editing extensive pilots.
I.
INITIAL RESULTS –
ISRAEL’S EDUCATION SYSTEM, SOCIO-
ECONOMIC INDICATORS AND THE LABOUR
MARKET IN THE SOUTHERN DISTRICT
ISRAEL’S EDUCATION SYSTEM
 The education system consists of 4 stages, which prescribed as
compulsory education:
Pre-primary education (kindergarten, from 3 years old)
Primary school (grades 1-6, started at the age of 6)
Middle school (grades 7-9)
High school (grades 10-12, finished at the age of 18)
 There are several official educational tracks, according to characteristics of
the different population groups: state, state-religious, Arab and
independent (including the Haredi schools).
ISRAEL’S EDUCATION SYSTEM
 Post-secondary education:
 Post-secondary studies (non academic diploma. Focus on practical,
technological or vocational skills, intended to assist integration in the labour
market. mostly 1-2 years).
 Practical engineer\technician diploma (mostly two years).
 Higher education (universities, colleges).
TVET STRUCTURE IN ISRAEL
 Two operated paths:
 Technological-scientific education. Ministry of Education supervision and
responsibility.
 Other vocational education. Ministry of Economy supervision and responsibility.
 TVET institutions:
 High schools (both tracks).
 Adults training state programs (vocational educations).
 Colleges and universities (both tracks).
 Army (through “Atuda” and professional courses, mainly vocational training).
POVERTY
Poverty Rate, Families
80.0%
69.7%
70.0%
Total Families
60.0%
50.0%
47.4%
37.8%
40.0%
33.3%
30.0%
20.0%
47.0%
18.6%
13.6%
Jewish Families
31.1%
21.1%
16.6%
21.3%
17.3%
17.0%
10.9%
10.0%
8.1%
10.8%
10.8%
17.0%
0.0%
Total
Jerusalem
North
Haifa
Center
Tel Aviv
South
 The poverty rate of the Jewish population in the southern district is 3.4
percentage points higher then the national Jewish poverty rate.
* Social Security data, 2013. no information on poverty among the Arab population in the southern district.
Arab Families
MIGRATION
% of 1990+ immigrants of total population
Migration Balance
35
30.1
30
Migration balance - Total (%)
29.7
Internal migration balance - Age 30-64 (%)
26.7
2.0%
25
1.72%
1.5%
20
15.8
1.51%
1.0%
15
0.5%
10
0.09%
0.0%
5
-0.5%
0
-1.0%
Ashdod
Ashkelon
Be'er Sheva Municipalities
- Total
-0.49%
-0.17%
-0.86%
-0.80%
Ashdod
Ashkelon
-0.25%
Be'er Sheva Municipalities Total
 The Southern cities have a 69% -90% higher proportion of immigrants and apart from
Ashkelon, a more negative migration balance than of average Israeli municipalities.
* CBS data, 2013. Migration balance was calculated as the number of immigrants divided by the general population in question.
THE LABOUR MARKET IN THE SOUTHERN DISTRICT
Unemployment (% of labour force)
6.9
7.0
6.7
6.8
6.6
6.6
6.4
6.3
6.2
6.2
6.0
5.8
Total
South
Ashdod
Be'er Sheva
Ashkelon
 Unemployment rate in the South is 0.7 percentage points higher than the national
average.
 Featured relatively high employment rates in technical and traditional industries.
*CBS data, 2013
THE LABOUR MARKET IN THE SOUTHERN DISTRICT
Average salary of employees
8,500
8,018
8,000
7,500
7,276
7,108
7,000
6,693
6,500
6,000
Ashdod
Ashkelon
Be'er Sheva
National Average
 Salaried Employees in Be’er Sheva, Ashdod and Ashkelon earn 9.3%, 11.3% and
16.5% less than the national average, respectively.
 The self-employed in Be’er Sheva, Ashdod and Ashkelon have an income lower
by 5.6%-13.1% than the national average.
* Social Security data, 2012.
THE LABOUR MARKET IN THE SOUTHERN DISTRICT
Business birth rate (% of all active businesses in the district)
10
9.9
9.9
9.8
9.6
9.4
9.1
9.2
8.9
9
8.8
8.6
8.4
South
Jerusalem
North
Center
 The South of Israel has the highest rate of business births out of all active businesses.
*CBS data, 2013
THE LABOUR MARKET IN THE SOUTHERN DISTRICT
% of employed in the region
100.0%
90.0%
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
7.6%
5.5%
4.9%
5.1%
20.8%
21.0%
22.7%
22.3%
Not classifiable
Employed in jobs that do not require
professional training nor academic education
49.3%
57.5%
52.5%
22.3%
16.0%
19.9%
12.4%
Center
North
Jerusalem
South
60.2%
Employed in jobs that require professional
training other than academic education
Employed in jobs that require academic
education
 The southern district has the highest rate of employment in jobs that don't require higher
education, and in jobs that require professional training other than higher education.
* Ministry of Economy data, 2013
THE LABOUR MARKET IN THE SOUTHERN DISTRICT
% of job vacancies in the region
100.0%
90.0%
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
0.6%
0.3%
0.3%
0.7%
26.8%
21.5%
21.8%
25.4%
Not classifiable
Vacancies in jobs that do not require
professional training nor academic education
63.0%
64.3%
68.5%
67.9%
9.5%
13.9%
9.3%
5.9%
Center
North
Jerusalem
South
Vacancies in jobs that require professional
training other than academic education
Vacancies in jobs that require academic
education
 The southern district has the highest rate of vacancies that do not require higher
education, and the second highest rate of vacancies that require professional training
other than higher education.
** Ministry of Economy data, 2013
INITIAL CONCLUSIONS
& RECOMMENDATIONS
STRATEGIES FOR REDUCING GAPS BY INCREASING PRODUCTIVITY
Increasing the share of investment in human and physical
capital in traditional industries
Increasing productivity in traditional industries
Improving wages in traditional industries, which employ
most of the industrial workers in Israel
STRATEGIES FOR REDUCING GAPS BY INCREASING PRODUCTIVITY
Improving the efficiency of social security benefits
Reducing income disparities and social inequality
Strengthening competitiveness of traditional industries
and increasing demand for labor
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RECOMMENDATIONS
 Funding of a national government program to
promote vocational training in cooperation with the
business sector.
 Divert some of the governmental investment in hightech to traditional industries, who have higher growth
potential.
 The establishment of regional R & D centers in order
to provide more support to small businesses and selfemployed.
Strengthening
traditional
industries
THANK YOU,
QUESTIONS?