Proposals to Improve the National System of Technical Vocational Education and Training in the Philippines Aniceto Orbeta and Emmanuel Esguerra* October 2016 * With assistance from NEDA and TESDA
Outline Review of the Characteristics Assessment of Performance Proposal to Improve the system
Review of the characteristics of NSTVET - 1/12 3 Major Modes of Delivery Institution-based (school-based and center-based) Enterprise-based Community Based
Review of the characteristics of NSTVET 2/12 Top offerings of institutionbased providers are in the fastest growing sectors - Tourism - ICT - Health, Social and other community development Tourism ICT Health, Social and Other Comm Devt Construction Automotive and Land Transportation Metals and Engineering Others (Language) Electronics Agriculture and Fishery Garments Heating, Vent., AC and Ref Others (Trainers Methodology) Processed Food and Beverages Maritime Aviation Wholesale and Retail Trading Visual Arts Furniture and Fixtures Utilities Decorative Arts Footwear and Leathergoods 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 5,841 4,085 3,768 1,466 1,155 1,126 942 813 299 229 189 148 121 92 28 10 8 5 2 1 1
Review of the characteristics of NSTVET 3/12 TVET Clients by education before training, 2012 [CATEGORY NAME] [PERCENTAGE] Some elementary 1% Not indicated 1% College Graduate and beyond 13% College Undergrad 19% Mostly high school graduates (50%) Some college undergrads (19%) and graduates (13%) Previous TVET (9%) Tech-Voc graduate 6% High school graduate 50% Tech-Voc undergraduate 3%
Review of the characteristics of NSTVET - 4/12 Reason for taking TVET, 2012 Biggest for employment / to get job (45%) Next to gain skills (38%) Next skills upgrading / enhancement (7%) TVET qualification is popular(many are enrolling) 2% Personal use 2% For skills upgrading/enhancement 7% To gain skills 38% Reasons for taking TVET Not indicated 2% Others 2% For promotion/ Increase in income 1% Nothing to do 1% For employment/to get job 45%
Review of the characteristics of NSTVET - 5/12 Enrollment & Graduation: Biggest proportions are institution-based, followed by community based, a tiny proportion enterprise-based Enrolled Graduates 2,500,000 2,000,000 1,800,000 2,000,000 1,600,000 1,400,000 1,500,000 1,200,000 1,000,000 1,000,000 800,000 600,000 500,000 400,000 200,000 0 2006 2009 2010 2011 2012 2013 Community-based 866,410 946,281 620,720 615,974 672,075 826,381 Enterprise-based 98,329 127,708 86,978 80,309 90,707 77,518 Institution-based 772,126 910,657 860,919 875,848 1,041,960 1,039,690 Institution-based Enterprise-based Community-based 0 2006 2009 2010 2011 2012 2013 Community-based 879,248 907,730 599,531 581,363 663,744 800,518 Enterprise-based 72,592 122,505 73,352 72,082 80,370 68,659 Institution-based 388,780 873,558 671,488 679,306 856,544 896,580 Institution-based Enterprise-based Community-based The system enroll 1.8 million and graduate 1.6 million on average between 2009-2014
Review of the characteristics of NSTVET - 6/12 Regional distribution of enrollment & graduates: Concentrated in few regions NCR Region IV - A Region VII Region III Region IX Region X 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 Region I Concentration in Region XI Region II NCR Southern Tagalog (Reg IV-A) Region VI Caraga Region IV - B Region XII Region V Central Luzon (Reg III) CAR Region VIII Central Visayas (Reg VII) ARMM Enrollment Graduates
Review of the characteristics of NSTVET - 7/12 Regional distribution of number of TVIs with registered programs: Concentrated in even fewer regions X XII Concentration in CAR VIII NCR (1,117) IX ll Southern Tagalog (Reg IV-A) IV-B ARMM (417) CARAGA 0 200 400 600 800 1000 1200 Central Luzon (Reg III) (380) NCR IV-A III l VII V VI XI Private Public
Review of the characteristics of NSTVET - 8/12 Sectoral orientation graduates reflects the primary growing sectors ICT (26.7%) Tourism (24.2%) Health, social and other community development (12.4%) 0.0 5.0 10.0 15.0 20.0 25.0 30.0 Information and Communications Technology Tourism 26.7 24.2 Health, Social and Other Community Development 12.4 Automotive and Land Transportation Metals and Engineering Construction Electronics Processed Food and Beverages Agriculture and Fishery Livelihood Garments Others Language Wholesale and Retail Trading Maritime Heating, Ventilation, Airconditioning.. Manufacturing TVET Decorative Crafts Furniture and Fixtures Footwear and Leathergoods Aviation Utilities 5.7 5.3 4.8 4.8 3.6 2.9 2.1 1.5 1.0 1.0 0.9 0.7 0.5 0.5 0.5 0.2 0.2 0.1 0.1 0.1
Review of the characteristics of NSTVET - 9/12 Distribution by Type: Public accounts for 10% in terms of number of institution; 32 % in terms of graduates TVI By Type Institution, Numbers Graduates by Type of TVIs, Graduates 2012 Public 467 10% TTI 11% Other Public 21% Private 4,266 90% Private 68%
Review of the characteristics of NSTVET 10/12 Governance and Management TESDA Regulator Provider 122 TTIs as of 2015; 16 regional training centers, 45 provincial training centers, 18 agricultural schools, 7 fishery schools, 31 trade schools and 5 specialized institutions Regulate private sector through an established quality assurance system Provides technical assistance to community-based training programs
Review of the characteristics of NSTVET - 11/12 Quality Assurance system Mandatory program registration Promulgation of training regulations (TR) Convenes experts from respective industries to develop TRs Revisited and updated every 3-5 years or whenever there are new developments As of July 2015, 91% of the 20,329 registered TVET programs have TRs Defines assessment of competencies Assessment center accreditation primary venue of assessment Assessment done only in the presence of with TESDA personnel at all times Trainer certification 4 levels, regularly updated Graduate certification mandatory assessment; full national certification (NC) or by competency area (COC)
Review of the characteristics of NSTVET - 12/12 Top 3 regions in terms of enrollment and graduation (NCR, 4a, 3) are also the top regions in terms of number of assessment centers and assessors Distribution of assessment centers by region, number, 2015 Distribution of assessors by region, number, 2015 0 100 200 300 400 500 600 700 0 200 400 600 800 1000 1200 Region 4a 595 Region 3 969 NCR 577 Region 4a 883 Region 3 473 NCR 672 Region 9 335 Region 8 525 Region 1 316 Region 1 511 Region 5 282 Region 9 461 Region 7 273 Region 7 451 Caraga 259 Region 6 362 Region 8 226 Region 11 331 Region 4b 226 Region 2 315 CAR 220 Caraga 278 Region 2 195 CAR 256 Region 12 173 Region 4b 255 Region 11 159 Region 5 196 Region 6 129 Region 12 173 Region 10 117 ARMM 124 ARMM 59 Region 10 121
Assessment of Performance of the Existing System -1/10 Estimation of Demand for TVET Services Enrollment and Graduation reflects the distribution of TVIs Sector concentration in growth areas such as ICT, tourism and health and social services Best estimate of total proportion of population/labor force who have had TVET training Since 2012, added the question of who had graduated from TVET regardless of highest grade completed LFS April 2014: 3.2 million (4.8%) of 66.2 million working age population graduated from TVET
Assessment of Performance of the Existing System -2/10 Access by Workers No readily available profile data on enrollees, only graduates from IES Access by Vulnerable groups By age group: graduates in 2012 dominated by young age group 15-24 (61%) and 25-34 (23%); LFS shows that those aged 15-24 have the highest unemployment rates; 74% of the graduates were unemployed before training Access by SMEs No readily available data
Assessment of Performance of the Existing System -3/10 By Sex: Graduates evenly distributed between male (50.4%) and female (49.4%); but some difference in sectoral orientation; top choices, Male: ICT, Tourism, Automotive, Metals, Construction; Female: Tourism, ICT, Health, Social, Other Comm. Devt. Information and Communications Techno.. Tourism Automotive and Land Transportation Metals and Engineering Construction Health, Social and Other Community De.. Electronics Agriculture and Fishery Processed Food and Beverages Livelihood Maritime Garments Heating, Ventilation, Airconditioning.. Language Others Manufacturing TVET Wholesale and Retail Trading Furniture and Fixtures Aviation Footwear and Leathergoods Utilities Decorative Crafts Male By Sector, 2012 0.0 5.0 10.0 15.0 20.0 25.0 30.0 2.9 2.1 1.6 1.4 1.1 1.1 1.0 0.8 0.6 0.6 0.6 0.3 0.2 0.1 0.1 0.0 6.9 5.5 10.0 9.7 9.1 19.3 25.0 Tourism Information and Communications Techno.. Health, Social and Other Community De.. Processed Food and Beverages Electronics Agriculture and Fishery Livelihood Garments Automotive and Land Transportation Wholesale and Retail Trading Others Language Metals and Engineering Construction Manufacturing Decorative Crafts TVET Footwear and Leathergoods Maritime Heating, Ventilation, Airconditioning.. Female by Sector, 2012 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 5.1 4.1 3.0 2.6 1.9 1.5 1.2 1.2 1.0 1.0 0.7 0.4 0.4 0.4 0.2 0.1 0.0 17.9 29.1 28.3
Assessment of Performance of the Existing System -4/10 TVET training not clearly pro-poor Whether by enrollment or by highest grade completed, access to TVET does not favor the poor Enrollment in public cater more to poorer segment TVET as highest grade completed, clearly not pro-poor Figure 6. Distribution of Enrollment in Post-Secondary Courses by Per Capita Income Decile, by Type of TVI, 2013 30.0 25.0 20.0 15.0 10.0 5.0 0.0 8.1 1.2 10.5 3.7 17.5 16.4 10.8 9.6 19.3 4.8 Public 25.0 13.1 11.4 9.5 Private 14.0 5.4 5.5 10.3 2.9 0.9 Figure 7. Distribution of 15 years and above with Post-Secondary as Highest Grade Completed by Per Capita Income Decile, 2013 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 2.5 4.1 6.9 6.2 10.1 13.3 15.1 15.6 15.9 10.3 The poor already dropped out at the elementary grades? Source of basic data: PSA APIS 2013
Assessment of Performance of the Existing System -5/10 Major source of TVET funding: public (46%), trainees (29%), companies (29%) By type: 1-3 year (47%), short courses (less than 3 months (20%), courses 3-9 months (6%) Financing by Source, 2002 TVET Expenditure by Type, 2002 NGOs and foundations 7% Income generation 2% Apprenticeship and learnership 12% Courses 3 to 9 months 6% Companies 16% General administration 15% Courses 1 to 3 years 47% Trainees 29% Public Administration 46% Short courses (less than 3 months) 20% Source: Peano et al. (2008)
Assessment of Performance of the Existing System - 6/10 Certification Those taking certification exams clearly rising Certification rates consistently high (above 80%) except for Electronics and IT 2,500,000 2,000,000 1,500,000 1,000,000 500,000-2005 2006 2007 2008 2009 2010 2011 2012 2013 Enrollees Graduates Assessed Certified
Assessment of Performance of the Existing System -7/10 Major reasons for not taking assessment - Assessment not mandatory (26%) - No assessment tools / assessors / center (22%) [CATEGORY NAME] [PERCENTAGE] [CATEGORY NAME] [PERCENTAGE] [CATEGORY NAME] [PERCENTAGE] [CATEGORY NAME] [PERCENTAGE] [CATEGORY NAME] [PERCENTAGE] [CATEGORY NAME] [PERCENTAGE]
Assessment of Performance of the Existing System - 8/10 Continuous attention to firms valuation of certification Measure: Do firms provide incentives to certificate holders? Graduates perspective Employers perspective Source: 2013 IES Source: 2014 ESS
Assessment of Performance of the Existing System - 9/10 Organizational structure and coordination across institutions TESDA is both a regulator and a provider TESDA Board, the highest policy making body, the primary point of coordination at the policy level At the operational level, development and continuous review of TRs TESDA accredits assessment centers and assessors TESDA doing a good service by continuously doing the IES; it is the only data the provides trainee-level profile; should be made available to researchers to improve data quality and support more analyses TESDA also do regular Employers Satisfaction Survey (ESS) and similarly made available to researchers
Assessment of Performance of the Existing System - 10/10 Links with other labor market policies Primary link with labor market policies is the TESDA Board, particularly, the Secretary of Labor the chair No clear system how labor market information are supplied Even much less clear how whatever information is supplied been used to inform decision to review TRs, course offering of TVIs and decision of would be trainees
Proposals to Improve Philippine NSTVET -1/9 TESDA should focus more on regulation and information provision Global trend: government should primarily be in regulation and information provision; leave much of training delivery to private sector TESDA is currently both a regulator and operator 122 training institutions Information generation and provision should be continuously improved and provided regularly
Proposals to Improve Philippine NSTVET -2/9 Greater emphasis on enterprise-based training Preferred mode of delivery by many analysts but the thinnest amongst the modes of delivery Key issue: Understanding Better Enterprise-based Training If it is that good, why aren t we doing more of it? What hinders it from expanding? Incompatibilities in underlying incentives and sources of financing? Wage-training contract difficult to monitor, hence, also difficult to enforce?
Proposals to Improve Philippine NSTVET -3/9 Making training continuously relevant to industry needs Continuous review of curriculum and training regulations Interaction between government, TVET Institutions, firms and workers should be at all levels, not just at the national level Regular convening of industry councils for continuous labor market signaling Address skills needs of roadmaps and value chains Enhancing TVI-industry linkages
Proposals to Improve Philippine NSTVET - 4/9 Greater performance orientation in access to public training funds Learning from the experience in collaboration with industry associations such as the experience with Information Technology-Business Process Associaton (IT-BPAP) Clear performance standards Competitive contracting Use Public Training Fund to Achieve Strategic Development Objectives Use the considerable amount of training money to nudge TVET to achieve strategic development objectives? i.e. increasing more private sector training, really reduce unemployment rates of the young; increase the labor productivity of the poor
Proposals to Improve Philippine NSTVET - 5/9 Improve targeting of financial assistance for TVET Experience from scholarship programs show that more transparent selection criteria minimize influence peddling in the section of beneficiaries Proper targeting of financial assistance GIA for the poor, loans for the non-poor Proper assessment of grantees to improve satisfactory completion
Proposals to Improve Philippine NSTVET - 6/9 Ensure Quality in Community-Based Training Contributing a substantial component of TVET graduates Fear that this is mostly supply-driven training with little regulation It is registering respectable employment rates It there really a problem in quality? Are they more responsive to community needs? Proper regulation means improvement in coverage of training registration
Proposals to Improve Philippine NSTVET - 7/9 Improve Data generation and Dissemination on TVIs and Trainers As TESDA focus more on regulation, effective regulation require better information One of the weak points in TVET data is the characteristics of TVIs and trainers It seems that data is available; what might be lacking is processing into useful information and wider dissemination List of TVIs with registered training programs List of trainers with certifications
Proposals to Improve Philippine NSTVET - 8/9 Improve TESDA s capacity for monitoring and evaluation As TESDA shifts more into regulation and strategic financing, capacity to design better instruments, test them and analyze their impacts rigorously should be systematically built up in the institution
Proposals to Improve Philippine NSTVET - 9/9 Improve the Image of TVET To this day the image of TVET is low compared to college and university education. There is a need to formulate a strategic communication plan to uplift the image of TVET.
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