Economic benefits of technical and vocational education | Sunday Observer

Economic benefits of technical and vocational education

11 December, 2022

The subject matter of expatriate workers and their value to the country at this crucial time has been at the centre of nationwide discussion for the past several months.

For the past several years, ex-pat remittances were the largest foreign exchange earner for the country that is going through the worst economic crisis in history. The Sri Lankan expatriate remittances surpassed the US$ 7 billion mark in 2015 and reached US$ 7.10 billion by 2020.

However, severe scarcity of essential commodities such as fuel, LP gas, and foodstuffs due to a shortage of foreign currency created social unrest that culminated in the ousting of a powerful President and substantial changes in the ruling Government.

Until foreign revenue is increased through exports and tourism, for which the Government is paying specific attention, ex-pat remittances will likely continue to be the number one foreign exchange earner for Sri Lanka. However, the current issue is that the largest contribution to this comes from the Gulf Cooperation Council (GCC) countries and the Far East through the people who are employed in unskilled or semi-skilled labour categories.

Workers’ remittances

The Central Bank of Sri Lanka declares that workers’ remittances have been a key pillar of Sri Lanka’s foreign currency earnings, providing a substantial cushion against the widening trade deficit and thereby enhancing the external sector resilience of the country. Being a major source of foreign exchange earnings, workers’ remittances have covered around 80 percent of the annual trade deficit, on average, over the past two decades, according to the Central Bank.

Consecutive governments appear to have been either unaware of, or willfully blind to, the vast number of opportunities available in the world for skilled workers, particularly those with technical and vocational experience. As global trends continue to redesign the labour markets and shift the combination of skills required by workers, the opportunities in the global arena have multiplied during the past decade for workers with technical and vocational education and training.

According to Michiko Miyamoto, the International Labour Organization (ILO) Country Director for Timor-Leste, 60% of employers are struggling to find the skilled workers they require, while more than one in every five youth are unemployed, underemployed, or out of school.

This gap among “jobs,” “skills,” and “aspiration” is one of the root causes of the vicious cycle of low productivity and a lack of decent work opportunities. This statement highlights the magnitude of the worldwide demand for trained workers.

Also, in the past few decades, there has been a greater global acceptance of the importance of technical and vocational education and training (TVET) to the long-term growth, development, and progress of nations. The United Nations Educational, Scientific, and Cultural Organization (UNESCO), the G-20, the OECD, and several other renowned institutions have recognised that TVET has a positive impact on utilising the youth dividend as well as economic uplift, poverty alleviation, and improving employability, particularly for out-of-school youth and adults. In turn, this has increased the value of TVET as a means of delivering the skills and information that companies demand.

Anyone who lived, even briefly, in the Western part of the world or in some rich Asian countries such as Japan and South Korea is aware of the employment opportunities with high pay rates for technologically competent skilled workers. Hence, the Government must give the highest priority to TVET education, aiming to produce job-worthy individuals who can compete in the global job market.

Global job market

Therefore, it is the most opportune time for the Government to start assessing the quality of TVET education and produce more skilled, employment-worthy individuals through the existing system. Currently, approximately 400 service providers in the public, corporate, and NGO sectors make up the Sri Lankan TVET sector, according to reports.

The Tertiary and Vocational Training Commission (TVEC) introduced the National Vocational Qualification (NVQ), which is primarily targeted at GCE (A/L) students and GCE (O/L) dropouts. This was a truly helpful move in the direction of improving vocational education.

Those who chose to continue with vocational education after secondary school have a strong vocational background because of the certification from levels 3 to 7. Key public institutions like the Department of Technical Education and Training (DTET), the National Industrial and Apprenticeship Training Authority (NAITA), the Vocational Training Authority (VTA), the National Youth Services Council (NYSC), and some other institutions were given the authority to award the NVQ certifications.

In addition to the controversies about the quality of the current TVET education given by the institutions mentioned above, the Sri Lankan private sector organisations that seek skilled employees cite an obstacle. They reveal that although the students are technically capable, they are not adequately accustomed to the culture of the private sector, which can be a crucial factor when seeking overseas employment. Hence, the authorities must pay attention to adding modules on business practises along with technical education.

Elite careers

Despite the global evidence, the tendency to look at TVET as having less relevance and gravitas than higher education still remains a misconception in Sri Lankan society. The Sri Lankan educational system pushes pupils to pursue further education and elite careers, which is frequently encouraged by parents.

Due to this reason, every year, hundreds of thousands of students enter the job market without any particular skill or training. The Government must devise a comprehensive and practical strategy to attract them to TVET education, with a focus on the global market for skilled worker employment.

TVET could play a significant role in addressing these socioeconomic difficulties by encouraging a smooth transition from training to employment. Training of skilled workers in a number of globally recognised high-priority industries, such as professions in information and communication technology (ICT), electrical and mechanical engineering, mechatronics, and civil engineering, would assist Sri Lanka’s drive to attract foreign employment.

A person’s career will be shaped by their decision over whether to pursue vocational training or traditional college education. With the current number of degree holders passing out from State and private universities, the existing job market in Sri Lanka is almost saturated. More importantly, with over 300 million degree holders predicted in the world by 2030, even global opportunities will be extremely competitive. Hence, the authorities must start weighing the options without delay in an effort to stand out.

Also, the rise of automation is expected to result in the extinction of many types of employment, including some of the skilled trades, creating an extra demand for technical and technological work areas where specific skills are required. Considering the country’s high literacy rate and visibly unique high intelligence in youth, Sri Lanka unquestionably has the capability of producing perhaps the best-skilled worker fraternity to challenge competing countries.

Imprudent decisions

At this crucial moment and beyond, expatriate remittances are a vital source of income for the country. The result of sharp reduction of remittances during this year due to imprudent decisions and acts by the political hierarchy has already severely affected the country’s economy.

Ex-pat remittances help the economy in a large way by providing for the basic needs of the citizenry. Hence, the authorities now pay attention to creating a technically qualified and capable youth network that can be the world’s best and help the country prosper while also flourishing in their lives.

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