Labour Market Assessment

Labour Market Assessment for TVET Skills Methodology

Introduction

The Better Education for Africa’s Rise project was launched in Tanzania in 2017 with an overarching objective of giving young people a better chance of accessing decent employment or of generating self-employment, through improvements in the TVET system. The project is funded by the Republic of Korea, and is being implemented jointly between the Government of the United Republic of Tanzania and UNESCO. It includes a broad range of planned activities corresponding to three identified result areas: increasing the relevance of TVET to the needs of the economy, enhancing the quality of TVET delivered to trainees and improving the perception of TVET among young people and society. This report is an inception phase for conducting an Analysis of TVET Skills Labour Market and Development of a Data Bank of Identified Skills Need Relating to the Agro-business and Creative Industry in the country.

In principle, analysis of the entire TVET skills labour market would be very broad as it involves many sectors and sub-sectors. As such, the terms of reference have identified the two sectors to focus on. The inception phase sets a clear conceptual framework of the sectors and issues we would want to pursue and define the boundaries and methodology for undertaking the analysis of TVET skills need and labour market. To accomplish the inception phase, this report has five sections to include the introduction, methodology for undertaking the analysis and creation of a data bank, proposed work plan, expected deliverables, and a tentative organization or outline of the expected report.  

1.1 Context

Matching work skills and employment opportunities with TVET training curricula and the expected outcomes is a challenge in many countries including Tanzania. Trainers would want to ensure that skills imparted to their trainees have relevance in the economy and thus demand in the labour market. This would justify the investments made and the quality of the training process.

The Technical and Vocational Training sector in Tanzania is characterized by a weak relevance of the TVET programmes and linkage with the industry. A scoping mission of the BEAR II project conducted in May 2017 indicated that close to 90% of business activities in the economy are informal.

The formal TVET training focuses on the formal job market, which constitutes a relatively small sector of the economy and does not prepare students for the job opportunities in the informal sector or for self-employment. The skills match between supply and demand is often missing, largely due to the lack of linkage between training institutions and employers. Only about 60% of graduates from the formal TVET sector obtain either employment or self – employment.

The informal sector on the other hand offers many more opportunities to move into work; and in particular, there is a big potential for self-employment in rural areas. The limiting factors in exploiting these opportunities are not just the lack of relevant hands-on-skills, but the lack of support for those starting small businesses or entering self – employment. Close to 100% of those who receive informal training are subsequently engaged in some form of related economic activity, often close to their place of residence. However, given the changing skills need and the labour market conditions, we do not know whether the current trainings offered are in line with the current needs and the labour market, especially in the areas of agro-business and creative industries.

The overarching result that the BEAR II project envisions is to achieve an increased relevance to the needs of the communities and the labour market in both Tanzania Mainland and Zanzibar. To achieve this result, a series of actions will be undertaken to enhance capacity for skills needs assessment and anticipation at sectoral and community levels; one of them being TVET skills need assessment, analysis of the corresponding labour market and development of a data bank on the same. 

1.2 Objective of the Assignment

The objective of the assignment is to develop a comprehensive mapping report and data bank regarding data sources, skills assessment tools and available results in the areas of agro-business and creative industries for Tanzania Mainland and Zanzibar.

1.3 Our Understanding of the Assignment

1.3.1 Definitions

Labour Markets

Labour markets have two sides, demand and supply. Demand in this context refers to the number of employees with specific skills which employers seek to recruit for employment per a given period of time – commonly one year. Supply, on the other side, is the total number of people seeking employment and have more-or-less the specific skills sought by the employers. Occasionally, labour market analysts refer to the general total demand (all required employees) versus all people seeking employment. This will give a general picture, but analysis by skills type is more informing for actionable plans.

Understanding of skills

A skill is the ability to carry out a task with determined results often within a given amount of time, energy, or both. People need a broad range of skills to contribute to a modern economy. Skill is the ability and capacity acquired through deliberate, systematic, and sustained effort to smoothly and adaptively carryout complex activities or job functions involving ideas (cognitive skills), things (technical skills), and/or people (interpersonal skills).

Broadly, six main types of skills are identified in the literature. These are hard skills, labour skills, life skills, people skills, social skills and soft skills. Hard skills, also called technical skills, are any skills relating to a specific task or situation. It involves both understanding and proficiency in such specific activity that involves methods, processes, procedures, or techniques. These skills are tested and may entail some professional, technical, or academic qualification[1].

Labor skills is the ability to work productively in occupations like electrician, mason, carpenter, baker, brewer, cooper, printer and other occupations that are economically productive.

Life skills is the ability and capacity acquired through deliberate, systematic, and sustained effort to smoothly and adaptively carryout complex activities or job functions involving ideas (cognitive skills), things (technical skills), and/or people (interpersonal skills)[2].

People skills are described as understanding ourselves and moderating our responses, talking effectively and empathizing accurately, and building relationships of trust, respect and productive interactions[3].

 Social skill is any skill facilitating interaction and communication with others. On the other hand, Soft skills are a combination of interpersonal people skills, social skills, communication skills, character traits, attitudes, career attributes and emotional intelligence quotient[4]. Soft skills as desirable qualities for certain forms of employment that do not depend on acquired knowledge: they include common sense, the ability to deal with people, and a positive flexible attitude.

1.3.2 The Assignment Explained

The envisaged assignment on labour market analysis seeks to identify the TVET skills demanded in the labour market versus supply so that skills need in the sectors of agro business and creative industry are mapped out. This is finding out whether the supply side of TVET skills in the labour market is able to meet the expectations of the demand side both quantitatively and qualitatively. To accomplish this analysis, there will be a need of designing a methodology which includes data collection tools and methods, the interview respondents, a framework of analysis of the data cum information, and presentation of the results. These will be designed in a way that the approach and methodology used can be generalized to constitute a template or model for future own assessment by TVET training institutions or any other use as need may arise. The template will have be web-based to allow wider usage and sharing. Strategically, the end results of the analysis is intended to a labour market analysis report for review of the TVET training curriculum regarding the respective skills need in the two sectors of agro processing and creative industry.

TVET Skills labour market assessment will compile data and information on skills need, supply, job posts, skills gaps, employment opportunities, etc. This information will be computerized and formatted to constitute a data bank for TVET trainers to access and use for self-assessment, reporting and learning.

Implementation of the assignment is expected to compile information on TVET skills needs, supply and demand in the labour market for agro business and creative industry. The study is targeting people, particularly young ones, who work in micro and small business enterprises in the two sectors. This is essentially covering informal and semi informal business enterprises.

On the other hand, we need information from employers or the businesses with regard to skills need and demand gaps. To complete the circle, we need to identify the TVET trainers and talk with them about the type of skills they impart to their trainees and the quality of their training infrastructure, the skills specialization and gaps with regard to their training staff, and the process of training itself. Obviously, there is a lot to get/learn from reports and documented evidence on all the assessments and analysis we intend to undertake. These include regular tracer studies carried out by the respective training institutions, etc. These will not only be sources of information and literature but also results cum evidence for benchmarking findings of the current assessments.

Through the use of qualitative and quantitative techniques, the compiled labour market data and information will be analyzed to find out the skills that are in need by employers and self-employed young people but are not available in the labour market (for employers); or are missing (skills gaps) for self-employed people. The analysis will go further to establish the line-training institutions for any particular (set) identified skill need or missing skill (gap) in the labour market or work place. The aim of the latter analysis is to find out which training institutions offer the needed skills in the labour market and the missing skills (for self-employed), their training capacity, deficiencies like the skills and other attributes of the training staff, quality and their needs for improvement.

Establishment of a data Bank

The information compiled and processed during the implementation of the assignment will include sources of information, the data as such, framework and results of the analyses, and the applicable tools of the assessment. These will be programmed to constitute a data bank for TVET trainers, employers and self-employed people. Employers should be able to use the data bank to indicate their skills needs, training sources and job posts; self-employed people should use the same to indicate their skill gaps including identification of training sources; while training institutions will use the data bank to identify their training gaps, training needs and demand and supply of their graduates in the labour market. Therefore, the data bank will be the platform where employers, trainers, employees/graduates and prospective trainees seek information on TVET training and the labour market. The expected regular feedback from the data bank will gradually improve the quality of TVET training and effectively seek to match supply and demand for TVET skills in the market.

1.3.3    The end deliverables of the assignment

  1. An inception report including the methodology that will be used in carrying out the assignment.
  2. A draft report on TVET skills assessment including a section on data sources in Agro-business and creative industries.
  3. A report produced from a dissemination meeting with stakeholders including recommendations from key partners on the skills assessment report to be incorporated in the report.
  4. A comprehensive needs assessment report including detailed mapping report regarding data sources, skills assessment tools and available results.

Approach and Methodology

2.1 General Approach: Agro business

The envisaged labour market assessment is focusing on two sectors namely: Agro-business and Creative industry. Agro-business is a very big sector involving production, storage transport, processing and manufacturing, packaging and marketing. These are agro-business activities carried out in large, medium and small scale in the formal and informal sector. The current assignment is focusing on enhancement of the skills of young people in the informal and semi-informal sector. Simply defined, informal sector includes those who operate without a license, and usually on a small scale businesses which include household enterprises. Semi-informal businesses include licensed dealers who operate alongside unlicensed dealers and exhibit most of the features of the informal businesses. The licensed dealers can also be regarded as employers in this sector. The assignment will focus on value addition in agro-business beyond production; implying that crop and livestock production will be excluded, and focus on processing, packaging, storage and marketing – the down chain stages of agribusiness as indicated in the figure below, which shows the four stages of crop production value chain.

The up chain involves production of many crops and livestock and so with the corresponding production of inputs. As such, there exist a variety of specific skills needed for stage one and two. Many young men do not have direct access to land because the relatively old or parents own the land. This is in addition to less youth’s interest to engage in crop production. Meanwhile, there is a planned national assessment of TVET skills in the agriculture sector which is due to begin in a month time from now.    

The down chain stages of the value chains is where there are relatively more emerging opportunities for employment and self-employment for young people; and also, where skills are most needed to pull up the agricultural value chain through value addition in agricultural produce. But also, this is part of the industrialization drive of the current government and the priority sector thereof.

It is further observed that there are many agribusiness value chains in Tanzania. The current study has limitations in terms of its objectives, timing and other resources to cover all the chains. As such, a careful choice has to be made by basing on crop value chains where employment and self-employment opportunities exist. These will include sunflower oil seeds processing, juice production, maize floor production, baking, spice production, crisps production, meat processing, and honey production and processing.

2.2 General Approach: The Creative Industry

Creative industries is a range of economic activities which are concerned with generation or exploitation of knowledge and information. They are also referred to as the cultural industries[1]  or the creative economy[2].  

Creative industry comprises advertising, architecture, art, crafts, design, fashion, film, music, performing arts, publishing, R&D, software, toys and games, TV and radio, and video games. Invariably, the have been other several definitions which include more economic activities.

Creative industry in Tanzania is growing fast. It includes economic activities such as Pattern Design and Logo Design; Singing which includes Taarab music groups, Dance music bands, Choir; Filming and Video shooting; Fashion making which includes Dress fashion making, hair dressing, etc.; Visual Art Production which includes Painting, Sculpture and Decoration items, toys, etc.; Traditional dancing; Art performing which includes Opera and Performing on shift stages; and Computer games composing.

The actors in each creative economic activity will be identified through interviews and consultations with Baraza la Sanaa la Taifa (BASATA) and the affiliated organizations including Chama cha Muziki wa Dance Tanzania (CHAMUDATA), Copyright Society of Tanzania (COSOTA), Tanznia Theater Center (TZTC), Taasisi ya Sanaa na Utamaduni Bagamoyo (TASUBA), etc. (To be completed during in-depth literature review and initial interviews with policy and support institutions).

There are many dealers in the creative industry, which is one of the main self-employment and employing sectors of young people in Tanzania. As in the case of the agro business sector, there are small and big dealers in the sector; and informal and semi-formal dealers in the sector. The assessment will focus on the informal and semi-formal dealers where skills enhancement is most needed.              

2.3 Desk Reviews and Initial Interviews

Implementation of the assignment will in the first place involve desk review of the existing documents on tracer studies and labour market studies pertaining to TVET skills in agro-business and creative industry. These will include reports available publicly and those which will be accessed from the various training institutions, and in-depth interviews with the respective government units (Ministry of Education, Science and Technology (MoEST) specifically the TVET Department; Prime Minister’s Office – Labour, Youth, Employment and People with disabilities: Employment Department; Small Industries Development Organization (SIDO); the Tanzania Employment Service Agency (TAESA); National Bureau of Statistics, the private sector (Vikundi vya wafanya Biashara Ndogo Ndogo) and the skills Councils (Agro business and Creative industry) in the Mainland Tanzania. In Zanzibar, we have more or less the same institutions but the list will be finalized in close collaboration with the Ministry of Education and Vocational Training in Zanzibar (ZMoEVT) specifically the Vocational Training Authority (VTA). Therefore, desk reviews and the initial in-depth interviews will constitute the first stage of the implementation of the assignment.

The initial interviews and desk reviews will seek to validate further the selected areas of focus and prepare a list of further interviews with selected employers in the informal and semi informal sector, selected group discussions with players (trained and employed/self-employed TVET graduates) through their associations and in-depth interviews with a few selected individual graduates.

2.5 Data Collection Tools

 There will be five data collection tools for:

  1. Policy, regulatory, sector council and support organizations (Guide tool for interview)

Contents: Policy and regulatory issues, support extended and beneficiary sectors and subsectors, list of dealers available (registered/licensed and unregistered), various reports by sectors, questions on the general quality of TVET graduates including skills gaps, skills needs in the various subsectors, list of TVET trainers for each sector/subsector and general assessment of the quality of TVET training institutions, the capacity gaps and infrastructural needs of the TVET institutions.

  1. Associations of producers (Craft Guilds): Contents: questions on the general quality of TVET graduates including skills gaps, skills needs in the various subsectors, list of TVET trainers for each sector/subsector and general assessment of the quality of TVET training institutions, the capacity gaps and infrastructural needs of the TVET institutions.
  2. Employers: Contents: Information on TVET skills need in every identified subsector, total number of employees by type of skill, skills gaps for their employees, the level of unmet manpower demand (number of employees) by category of TVET skills, their future expansion plans, and their assessment of the quality of the young TVET graduates currently employed by them
  3. Employees and self-employed Young People: Contents: Skills gap in terms of the set of skills they learned in college training versus the actual set of skills needed to execute tasks at work place, subjective assessment of the quality of TVET training, skills needs and skills gaps.
  4. Trainers: Contents: Technical awards in terms of the skills they impart to their graduates, number of graduates by skills per year, the quality of their training infrastructure, capacities, teaching staff, apprentice programmes including capacity thereof, and the process itself with a view of identifying gaps and needs.

2.4 Selection of Respondents of the Interviews

Employers

Initially, as indicated earlier, we will visit the policy, regulatory and support organizations cum institutions and the associations of the dealers of every identified agribusiness activity and creative industry activity. These will be interviewed; and in the process, a list of employers (as defined earlier) will be identified for every listed activity or sub sector. From each list, we will select two employers for interview; and if not available, a replacement will be picked from the same list. The selection will be refined further by ensuring that we mix between the sub-activities of each selected activity or sub sector (the summary of the selection is presented in the Table below).

The employers’ interviews will seek to compile information on TVET skills need in every identified subsector, skills gaps for their employees, the level of unmet manpower demand (number of employees) by category of TVET skills, their future expansion plans, and their assessment of the quality of the young TVET graduates (from various institutions) currently employed by them.        

Employees

Young TVET graduates employed in the informal and semi-informal sector face skills gap in terms of the set of skills they learned in college training versus the actual set of skills needed to execute tasks at work place. The survey will seek to assess and compile these gaps and the causes thereof. This will include subjective assessment of the quality of TVET training in which the respective respondents were trained. Therefore, the survey will pick two young employees from each selected respondent employer for interview (see the table below). The selected respondents will alternate by gender.

Self-employed Young People

The interviews will include young people who are self-employed with a view of compiling information on skills needs and skills gaps. This will include assessment of the quality of the TVET trainings attended by the respondents. We will select two respondents from each subsector and ensure mix by the sub-activities where applicable.

TVET Training Institutions

Implementation of the assignment will include physical visits to TVET training institutions to assess the technical awards in terms of the skills they impart to their graduates, the quality of their training infrastructure, capacities, teaching staff, and the process itself with a view of identifying gaps and needs. The interviews will target six TVET trainers for each sector, i.e. for agro business and creative industry, respectively.  

 

Work Plan

Given the limited time available, the assignment will be implemented concurrently in both the Tanzania Mainland and Zanzibar. A good team of four experienced and trained research assistants will be recruited and oriented to the assignment and data collection. They will work concurrently with the team leader in both the Mainland and Zanzibar. Field work will be begin with courtesy calls in  the responsible MDAs, as indicated earlier, followed by the different associations for each sector/subsector. Thereafter, interviews will proceed to the selected different actors, regulatory bodies, support institutions, etc.

Once data collection is complete, analysis of the data and preparation of a draft report will begin.

The collected data will be processed in both Excel and SPSS, which once analysis is completed, the data will be converted into a data bank. The draft report and the data bank will then be presented for validation before finalizing the report. 

Time Plan

Deliverables

S/N

Deliverable

Timing

1

An inception report including the methodology that will be used in carrying out the assignment.

1st Week after signing the contract

2

A draft report on TVET skills assessment including a section on data sources in Agro-business and creative industries.

7th Week after inception report submission

3

A report produced from a dissemination meeting with stakeholders including recommendations from key partners on the skills assessment report to be incorporated in the report.

8nd Weeks after submission of draft report

4

A comprehensive needs assessment report including detailed mapping report regarding data sources, skills assessment tools and available results.

8th Week after signing of the contract

Tentative Outline of the Report

  1. Introduction
    • Context
    • Objectives
    • Methodology
    • Organization of the report

 

  1. Labour Market Assessment
    • Labour Market Supply for TVET Skills
    • Demand for TVET Skills in the Labour Market
    • Self-employment Assessment
    • Analysis of Skills Gaps in the Labour Market

 

  1. Skills Need Assessment in the Agro Business Sector
    • Skills Needed by Employers versus the Skills Available in the Labour Market
    • Skills Need for Self-employment versus the Skills Currently Offered by TVET

 

  1. Skills Need Assessment in Creative Industry
    • Skills Needed by Employers versus the Skills Available in the Labour Market
    • Skills Need for Self-employment versus the Skills Currently Offered by TVET

 

  1. Assessment of TVET Institutions and Proposed Mode of Collaboration
  2. Selection of industries/business firms appropriate for TVET teacher/tutor internships/ apprenticeship.
  3. Contents and Key Features of the Data Bank
  4. Conclusions