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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Context

Initial Results

Main Objectivesof the Project

Specific Project Objectives

CONTENTS

Expected Results

Initial Conclusions & Recommendations

CONTEXT

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

Israel stands out in investment in R&D, but nearly all investments

are directed to Hi-Tech industries.

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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.

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.

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GEMM PILOT PROJECTWORKING IN PARTNERSHIP TO BETTER MATCH SKILLS OFFER

AND DEMAND IN THE SOUTH OF ISRAEL

MAIN OBJECTIVESOF 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

I. The pilot project is set up – the focus areas of the capacity-building program are selected, and project needs are identified.

II. Comprehensive information regarding the discrepancy between the demand and supply of professions in the South of Israel is provided.

III. The existing vocational education system in the South of Israel is mapped and their suitability to meet the demand is determined.

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.

INITIAL RESULTS –I S R A E L’ S E D U C AT I O N S Y S T E M , S O C I O - E C O N O M I C I N D I C AT O R S A N D T H E L A B O U R M A R K E T I N T H E S O U T H E R N D I S T R I C T

ISRAEL’S EDUCATION SYSTEM The education system consists of 4 stages, which prescribed as

compulsory education:

There are several official educational tracks, according to characteristics of the different population groups: state, state-religious, Arab and independent (including the Haredi schools).

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)

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).

Total Jerusalem North Haifa Center Tel Aviv South0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

18.6%

33.3% 31.1%

21.3%

10.9% 10.8%17.0%

13.6%

21.1%16.6% 17.3%

8.1% 10.8%17.0%

47.4%

69.7%

47.0%

37.8%

Total Families

Jewish Families

Arab Families

POVERTYPoverty Rate, Families

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.

MIGRATION% of 1990+ immigrants of total population

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.

Ashdod Ashkelon Be'er Sheva Municipalities - Total

0

5

10

15

20

25

30

35

30.1 29.726.7

15.8

Ashdod Ashkelon Be'er Sheva Municipalities - Total

-1.0%

-0.5%

0.0%

0.5%

1.0%

1.5%

2.0%

-0.80%

1.72%

-0.17%

0.09%

-0.86%

1.51%

-0.49%-0.25%

Migration balance - Total (%)

Internal migration balance - Age 30-64 (%)

Migration Balance

THE LABOUR MARKET IN THE SOUTHERN DISTRICT

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.

Total South Ashdod Be'er Sheva Ashkelon5.8

6.0

6.2

6.4

6.6

6.8

7.0

6.2

6.9

6.6

6.3

6.7

Unemployment (% of labour force)

*CBS data, 2013

THE LABOUR MARKET IN THE SOUTHERN DISTRICT

Ashdod Ashkelon Be'er Sheva National Average6,000

6,500

7,000

7,500

8,000

8,500

7,108

6,693

7,276

8,018

Average salary of employees

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

The South of Israel has the highest rate of business births out of all active businesses.

South Jerusalem North Center8.4

8.6

8.8

9

9.2

9.4

9.6

9.8

10 9.9

9.1

9.9

8.9

Business birth rate (% of all active businesses in the district)

*CBS data, 2013

THE LABOUR MARKET IN THE SOUTHERN DISTRICT

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

Center North Jerusalem South0.0%

10.0%20.0%30.0%40.0%50.0%60.0%70.0%80.0%90.0%

100.0%

22.3% 16.0% 19.9% 12.4%

49.3% 57.5% 52.5% 60.2%

20.8% 21.0% 22.7% 22.3%

7.6% 5.5% 4.9% 5.1%

% of employed in the region

Not classifiable

Employed in jobs that do not require pro-fessional training nor academic education

Employed in jobs that require professional training other than academic education

Employed in jobs that require academic educa-tion

THE LABOUR MARKET IN THE SOUTHERN DISTRICT

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

Center North Jerusalem South0.0%

10.0%20.0%30.0%40.0%50.0%60.0%70.0%80.0%90.0%

100.0%

9.5% 13.9% 9.3% 5.9%

63.0%64.3% 68.5% 67.9%

26.8% 21.5% 21.8% 25.4%

0.6% 0.3% 0.3% 0.7%

% of job vacancies in the region

Not classifiable

Vacancies in jobs that do not require pro-fessional training nor academic education

Vacancies in jobs that require professional train-ing other than academic education

Vacancies in jobs that require academic educa-tion

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

RECOMMENDATIONS Funding of a national government program to

promote vocational training in cooperation with the

business sector.

Divert some of the governmental investment in high-

tech 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 self-

employed.

Strengthening

traditional

industries

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