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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?. Over 90% of employment in unorganized sector Contributes to 60% of GDP Large number of low-skilled people Large number of survivalist MSEs

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Skills Development for Informal Economy: Issue and emerging approach

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  1. Skills Development for Informal Economy:Issue and emerging approach Akiko Sakamoto Skills Development Specialist ILO

  2. Why skills in I/E? • 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

  3. Farmers, rural livelihood Own-account workers, home workers Casual labour Child labour SHGs Survivalist enterprises (1-3 workers) Profitable micro enterprises (0-10) Vocational training Business training Technology Marketing Life/soft skills Literacy, communication Labour rights, OSH Self-esteem Motivation/awareness RPL Placement support Diversified profile and needs Self-employment Wage- employment

  4. 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 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 Demand & Supply

  5. Skill formation process • 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

  6. Emerging Features of Skills Dev. for I/E • Pre-training • Training • Post-training • Systemic issues

  7. 1. Pre-training • Knowing demands of skills • national or state profiles may be too broad, perhaps need local-area based, or sector-based info. • Who should collect the info and fund? • 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

  8. 1. Pre-training Raising demands for skills • For enterprises • Drivers can be: • Technology upgrading • New market/diversification of products • Sector/cluster/village development plan • Stipulation in public contract (Singapore) • Training voucher (Kenya) • For trainees • Motivation is an issue • Need to raise self-awareness

  9. 2. Training • 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

  10. 3. Post-training • 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)

  11. 4. Systemic issues • Unclear skills profiling and progression for vocations • Required for: • Helps to develop training programme • Trainees to decide career path • Counseling of trainees • Incentive to encourage training and upgrading • Shows to employers the skills levels, improve wage setting • Incentive for trainees to engage in training or pursue higher level qualifications

  12. 4. Systemic issues • Recruitment/upgrading of trainers • Registration, and quality assurance of training providers • Identification and up-scaling of successful models • Many efforts and experiments • Unassessed, some antidotal evidence • Need rigorous assessment • of impact, of coverage • what works, what doesn’t • No common criteria to assess ‘success’

  13. How do we reach out the Sector? • Approaches can include: • Area-based approach • 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 • 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

  14. urban rural Unorganized Sector How do we reach out the Sector? Expansion of Public TIs/PPP Formal sector Local govt. -rural livelihood subcontracting Area-based approach (DM, panchayat, VDC) Sector-based Approach (Sector-councils) NGOs PPP

  15. Thank you

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