Skills Trend in Labour Market

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1 Skills Trend in Labour Market National Vocational & Technical Training Commission (NAVTTC) 5th Floor, Evacuee Trust Complex Sector F-5/1, Islamabad Tel: Fax:

2 Skills Trend in Labour Market Contents Introduction 2 Skilled workforce demand in National and International Jobs Market 3 Qualification distribution of the advertised posts 3 Employer ownership of the advertised posts 4 Gender and age wise distribution of the advertised posts 4 Country wise distribution of Posts 5 Sector and Provincial wise distribution of National posts 6 Level and Provincial wise distribution of national Posts 7 Trade wise distribution of Posts 7 Conclusions and Recommendations 10 2

3 Abbreviations DAE FATA NSIS NVQF NAVTTC P&D S&C TVET UAE Diploma In Associate Engineer Federally Administrated Tribal Area National Skills Information System National Vocational Qualifications Framework National Vocational and Technical Training Commission Planning & Development Skills Standards & Curricula Technical Vocational Education & Training United Arab Emirate 3

4 Skills Trend in Labour Market Preface Socio-economic development of a nation is linked with availability of educated and trained workforce. If education is considered to be the key then Technical Vocational Education & Training (TVET) is termed as master key to development. In order to reform the TVET Sector, National Vocational & Technical Training Commission is looking into the issues pertaining to policy guideline, coordination, standardization, regulation, National Vocational Qualifications Framework (NVQF), Accreditation, Apprenticeship, demand driven and market based training by enhancing the greater role of employer including private sector working in TVET Sector. Although workforce development encompasses many aspects, education and training are the two main areas for policy intervention. Training contributes to rapid technological adoption and innovation which ultimately helps in generating employment opportunities. It is observed that educated workforce takes less time to adopt new technology and its implementation. Not only this, it also generates ideas for improving efficiency. To realize the benefits of TVET, the developed world has ensured that all school going age children shall get TVET training in addition to school education. As TVET training is found to be main determinant of employment. It provides skills to workers and enhances productivity at workplace valued highly by employers. The development objectives are hard to achieve without getting workforce development in focus. A comprehensive understanding of skilled workforce and labour market scenario especially on type of jobs, vacancies and skills is a necessary input to policies formulation and decision making in TVET Sector. The accurate and timely availability of statistical information always provide valuable support in policy formulation and informed decision making. Realizing the need, NAVTTC has established National Skills Information System (NSIS) Cell at its headquarters in Islamabad in October This Cell is ensuring provision of an online common platform for provision of TVET related information to TVET stakeholders including policy makers, donors, employers, graduates / potential trainees, TVET institutes and public in general. This information will be easily accessible from NSIS website in addition to regular dissemination of the information through periodical reports and quarterly job analysis bulletins. This quarterly Job Analysis Bulletin highlights TVET related skills demand for both at the National and International Level. It will enable policy makers in result based planning but will also contribute for policy decisions in TVET sector. The efforts of Director General (S&C), Director General (P&D) and NSIS Team are really appreciated for their dedicated work on preparation of this quarterly job bulletin in collaboration with GIZ (our implementing partner) under TVET Reform Support Program. Zulfiqar Ahmed Cheema Executive Director, NAVTTC 4

5 Introduction Skill shortages and surpluses emerged early on during the process of economic transition in Pakistan as a consequence of privatization and economic restructuring. Newly created jobs due to technological modification required different advance skills and demand for new skills took place more rapidly than the education and training system was able to adapt, leading to widespread skill shortages. Moreover; economical structural change at National and Provincial level leads to skill mismatch making permanent phenomenon in transition countries than in the developed economies resulting in high levels of long-term unemployment, and that skills mismatch increases with the age of workers, rather than falling as it does in the developed economies. Realizing the need, the National Vocational & Technical Training Commission (NAVTTC), Government of Pakistan established a National skill information system (NSIS) under TVET Reform Program of GIZ at its Headquarters in Islamabad in 1st quarter, The main objective of NSIS Cell is following: Develop / provide a reliable Information System for workforce development in employable skills o Skills Information System o Establish data collection system (Supply & Demand) o Supply & Market Demand Management o Supply & Market Demand Analysis Provide timely and accurate information on demand and supply analysis, to TVET planners, training institutions, industry, academia, students and public in general; o Information Dissemination System o Establish interactive platform / network for TVET Stakeholders o Align TVET Plans, Policies, Programs with NSIS Establish and facilitate career / vocational guidance and placement services for TVET graduates and potential employers; o Establish Career / Vocational Guidance Service o Establish Job Placement Service o Provide information on Skills available & skills required The objective of the jobs analysis is to find out skills demand of job market in various TVET related trades in Pakistan and deficiencies and opportunities of each trade in national and international job market. Information compiled in this monthly report is collected by NSIS cell through the various jobs for skilled workforce, advertised in national and international Job Websites and newspapers on daily basis. The NSIS cell will issue a regular monthly job bulletin. In addition to this, a periodical / annual report will also be compiled from the quarter data bank. This data will provide basis to conduct detail analysis, identify nation-wide supply and demand gaps of TVET Graduates in addition to identification of trend and impact of training conducted in whole year. 5

6 Skills Trend in Labour Market Skilled Workforce - National and International Jobs Market The figure 1.0 shows information about the post advertised in 1st quarter of As whole 3052 posts were advertised the proportion of national market is 71 percent and International market is 29 percent. The month wise proportion of the National demand of skilled workforce is 39 percent in January, 33.7 percent in February and 27.4 percent in the month of March, On other hand the internal market demand having increasing trend, in the month of January is 13.9 percent, 23.8 percent in February and 62.3 percent in month of March. Table 1: National & International Market demand Month National Percent International Percent January February March Total Gender wise demand of Labour Market The figure-1 shows information about the gender wise demand of national and international labour market. In national market the proportion of male specific posts is 59 percent, while in international market skilled male workforce demand is 89 percent. The female specific demand is very low in both national and international market, in national market is 0.2 percent and in international market is 4.0 percent. The national market demand in case of both genders is 40 percent, while international market is 7 percent only. Figure 1: Gender wise demand of labour Market National International Male Female Both 6

7 Age wise distribution of the advertised posts The following table-2: is showing gender and maximum age wise distribution of advertised post in 1st Quarter, This table can help to estimate age in case of unbalance between supply of skilled workforce to job market and creation of jobs. The results indicate that international market demand is skilled workforce of age group (31-40) year of level-2 (Experience workforce) 76 percent, while national demand for mostly 91.9 percent of age group (21-30) year, the International demand for the same group is only 24 percent. The national market demand for mid-level experience work force is only 6.6 percent. Figure 2: Maximum Age of the candidate National International (21-30) (31-40) (41+) On the other hand the table the trade and age wise demand of the national is DAE 74 percent of age group (21-30), 19 percent of age group (31-40) year and only 7 percent of age 41 year and above. In trade certificate 70.9 percent of age group (21-30) year, 29 percent of age group (31-40) year and only 0.1 percent of 41 year and above. The results can enable us to calculate the annual back log of the unemployed skilled workforce and chance in year of discouraging rate of the unemployed skilled population. Table 2: Qualification and age wise market demand Qualification (21-30) (31-40) (41+) DAE Trade Certificate Heath Diploma Driving License Animal Health

8 Skills Trend in Labour Market Qualification distribution of the advertised posts Figure 2: indicates information about qualification distribution of market demand of skilled work force. The proportion of Diploma of Associate Engineer (DAE) is 14.6 percent (National 58% and International 7.8%), followed by Trade Certificate (Vocational course) 70.5 percent (National 64.6% and International 87.3%), followed by Health Diploma 6.1 percent (100 % National) and 4.1 percent Driving Certificate / License (National 8.2% & International 4.9%). It is known fact that mostly vocational jobs are not advertised on job site and newspaper. The livestock (animal health) proportion is 6.4 percent in national market demand only. The actual market requirement is high then mentioned results (which are only based on the job information notified in leading dailies or job websites), because of the direct recruitment of the private sector. Table 3: Qualification wise distribution of the market demand Qualification National Percent International Percent Total Percent DAE Trade Certificate Heath Diploma Driving License Animal Health Total Employer ownership wise demand of the National market Following Table-1 is indicating nature and ownership of employment agencies, which have demand of skilled workforce in 1st quarter of During the quarter 2181 post of skilled force were advertised in national dailies and jobs website. The proportion of Government is around 62 percent, followed by private sector 37.4 percent and Semi-Government around.6 percent. The proportion of Government for DAE is around 39 percent, followed by private sector 59.8 percent and Semi Government 1.1 percent. In Trade Certificate (Vocational Courses) Government proportion is 61.8 percent, private sector 37.6 percent. Health Diploma Government contributed 73.2 percent, private sector only 26.8 percent. In Driver Trade / Certificate Government notified position are 85.5 percent and private sector is 19.5 percent. In livestock (animal health) 100 percent demand is relate to the government sector. Table 4: Employer and qualification wise demand Qualification Government Private Semi Govt. DAE 39.1% 59.8% 1.1% Trade Certificate 61.8% 37.6%.6% Heath Diploma 73.2% 26.8%.0% Driving License 80.5% 19.5%.0% Animal Health 100.0%.0%.0% Total 62.0% 37.4%.6% 8

9 Country wise distribution of Posts The Table-3 is indicating information about country wise distribution of advertised posts in National and International Jobs website including national dailies. The proportion of Pakistan is highest with 75 percent, followed by Saudi Arabia 0.4 percent 11 percent and UAE and 8 percent. It is known fact that at the time UAE, Saudi Arabia and Afghanistan are the actual jobs market for Pakistani skilled workforce. After compilation of at least one year daily job openings, the actual demand will enable to calculate estimates of National and International Jobs market and Trends. Such estimates can lead to estimate supply and demand gap, annual backlog of unemployed skilled workforce and formulation of polices to absorb unemployed skilled workforce in national and international market in addition to shift from traditional pattern of training to actual demand of job market. Table 5: Country wise demand of Skilled Workforce Country DAE Trade Certificate Heath Diploma Driving License Animal Health Total Pakistan SAUDI ARABIA UAE COLOMBIA France Japan China Canada Turkey Australia Malaysia Afghanistan Total Sector and Provincial wise distribution of National posts In sector wise distribution, proportion of manufacturing sector is highest with 57.4 percent, followed by communication sector 9.9 percent, followed by power sector 9.7 percent and Livestock 9.5 percent. The proportion of maintenance and repair 6.9 percent, services 3.2 percent, hospitality 1.4 percent and construction 1.1 percent. On the other hand, pattern of job distribution in respect of each province, Punjab is highest with 62 percent, Sindh 13 percent, Islamabad 11 percent, Balochistan 8 percent Khyber Pakhtunkhwa 7 percent and FATA 1 percent. The interesting feature of analysis is depicting the demand of emerging Power Sector in Khyber Pakhtunkhwa, which 31 percent. However, supply of skilled workforce in Power Sector is zero (as per NSIS Khyber Pakhtunkhwa Gender & Regional Disparity Report 2014). 9

10 Skills Trend in Labour Market Figure 3: Sector wise demand % Manufacturing Communication Power 6.9 Livestock Maintenance 3.2 Services Hospitality Construction Health Figure 4: Province wise demand % Islamabad Punjab Sindh KP 7 8 Balochistan 1 FATA Sector Wise demand of national and International Market The following table 8, showing information about the sector wise the demand of national and international market. In national market manufacturing sector is highest with proportion 58 percent and in the international market the construction sector demand is highest with proportion 52 percent. In national market the second demanding sector are service and livestock, bit in International market manufacturing sector is the second demanding sector with proportion 40 percent. 10

11 Table 8: Sector wise demand of Skill workforce Qualification (21-30) (31-40) Manufacturing Construction 7 52 Communication 1 0 Power 1 0 Health 9 0 Livestock 10 0 Maintenance & Repair 3 5 Hospitality 1 3 Services 10 0 Total Level of Entry Experience for Skill Workforce Jobs The majority of national employers as per job advertisement are accepting fresh candidates with proportion of 85 percent fresh, midlevel 7 percent and high level of experience is 8 percent only. On the other hand the demand of International fresh proportion is 28 percent, midlevel (1-2 year experience) is highest 71 percent and high level experience is only 2 percent. Figure 5: Level of Entry Experience % National International Fresh Midlevel High Level 2 11

12 Skills Trend in Labour Market Trade-wise distribution of posts Table-6 is showing distribution advertised posts in trade wise number of openings for skilled workers in each province. As per statistics the most favorite trade in DAE is electrical technology with proportion 42.9 percent, civil technology 12.9 percent, Mechanical 11.1 percent, Quantity surveyor 8.4 percent, Drilling supervisor 4.2 percent and Chemical Technology 3.9 Percent. In trade certificate course the most favorite is Electrician 11.3 percent, Leather Shoes stitches 8.6 percent, AI Technician 4.4 percent and AutoCAD 2.7. Conclusions and Recommendations 1. This report is based on daily job openings for skilled workers in National Dailies and Job Placement Sites. However, due to direct induction of skilled workforce, majority of employers do not advertise their job openings. Private Sector and Industry shall play their role in sharing and advertising all positions so as to ascertain the actual national skills demand and trend and to further formulate and customize existing training supply (and relevant policies) as per the need of employer. 2. This quarterly report is depicting the actual demand of local and international job market. This enables respective TVET Institutes to shift and customize their trade pattern in line with actual demand. 3. This information serves the purpose of informed decision making by the policy makers, planers and donors based on actual demand of skilled workforce for socio-economic development of country. 4. TVET system in Pakistan shall be flexible and dynamic to absorb consequence of privatization, technological advancement and economic restricting. 5. The support of TVET players to evolve a regular count of supply and demand of skilled workforce to control skills shortage and surpluses. 6. Finally, skills mismatch may be reduced if the contribution of TVET stakeholders at all levels in evolved based on a regular research oriented approach. 12

13 Annex-1 Province and sector Wise distribution Sector Islamabad Punjab Sindh KP Balochistan FATA Total Manufacturing Construction Communication Power Health Livestock Maintenance & Repair Hospitality Services Total Province and district wise distribution District Islamabad Punjab Sindh KP Balochistan GB Total Islamabad Rawalpindi Bahawalnagar Bahawalpur Faisalabad Gujranwala Jhang Khanewal Lahore Mandi Bahauddin Mianwali Multan Okara Rahim Yar Khan Rajanpur Sialkot Hyderabad Jacobabad Karachi Mirpur Khas Sukkur Tando Muhammad Khan

14 Skills Trend in Labour Market District Islamabad Punjab Sindh KP Balochistan GB Total Abbottabad D.I.Khan Kohat Lower Dir Mansehra Mardan Nowshera Peshawar Swat Lasbela Quetta Gilgit Total DAE Trade wise Market demand Trade Number Percent Electrical Engineer Civil Engineer Mechanical Engineer Quantity Surveyor Drilling Supervisor Chemical Engineer Metallurgy/Materials QC Supervisor Hardware Technician Camp Boss Network Technician Electronics Junior Instructor (Architecture) Vibrator Mechanic Machine Helpers Solar Engineer Communication Engineers Computer Expert Safely Engineers Senior Designer Piping Thermal Oil Plant Operator Total

15 Technical trade certificate wise market demand Trade Number Data Entry Operator 180 Electrician 162 LS-II 124 LS-I 85 SSO-II 77 A.I Technician 63 Tracer 48 SSO-I 45 Helper 43 AUTO CAD 35 HS-II 30 SS-II 30 SS-I 27 Skilled HS-II 25 Cook 24 HS-I 23 Welder 23 Machinist 22 HSM 19 Plumber 14 I.T Technician 13 TV Engineer 12 Assistant Engine Room Operator 11 Fitter-I (GSO) 10 Semi -Skilled-II(Vehicle Mechanic) 10 A/C Mechanic 9 Carpenter 9 Computer Opreator 9 Semi- Skilled-II(Machinist) 9 Shift In charge 9 Wireless Technician 9 Auto Electrician 7 Shop Technical Asst. 7 SSA 7 Control Room Operator 6 Engine Room Operator 6 Semi-Skilled-II(Fitter) 6 Surveyor 6 Drafts Man 5 15

16 Skills Trend in Labour Market Trade Number Emergency Medical Technician 5 Electro Medical 5 Fitter Auto 4 SS-1 VMAFV 4 Technician 4 Vehicle Mechanic 4 Vehicle Mechanic(HS-1) 4 Artificial Control Equipment 3 Auto CAD Operator/ Quantity Surveyor 3 Designer 3 Generator Operator/Electrician 3 HS-2 Computer Technician 3 Painter 3 Pump Operator 3 Quality Control Inspector 3 SS-2 VMAFV 3 Stock Assistant 3 VM Armed Fighting Vehicle 3 Electrician 2 Attendant 2 Chemical Plant Operator 2 Crane Operator 2 Generator Operator 2 HS-1 Tele Com: Technician 2 HSM Optronics Technician 2 Instrument Technician 2 Lift Operator 2 Machine operator 2 Mechanical Technician 2 Semi-Skilled-I(Fitter) 2 Skilled (Telecom) 2 Skilled ACE 2 SS-1 Computer Technician 2 SS-1 Tele Com. Technician 2 Store Keeper 2 Tailor 2 Technician A/C 2 Technician Inverter 2 Telephone operator 2 Turbine Operator 2 Vehicle Mechanic(HSM 2 16

17 Trade Number Veterinary Assistant 2 Anesthesia Technician 1 Armourer 1 Beautician 1 Building Supervisor 1 Chiller Opreator 1 CNC Machicne Opreator 1 CSD Technician 1 Draft Man 1 Driller 1 Auto Electrician 1 Electronic Technician 1 Field Assistant 1 Finishing Supervisor 1 High Skilled-II 1 HS-1 Fitter Gun 1 HS-1 Instrument Mechanic 1 HS-1 Tele Comm: Technician 1 HS-2 ACE 1 HS-2 Boiler Attendant 1 HS-2 Fitter Gun 1 HS-2 Instrument Mechanic 1 Instructor Steel Fixer 1 Instrument Technicians 1 Jr. Instructor (Commerce) 1 Junior Technician 1 Mason 1 Penitence 1 Mezail Instrument Technician 1 Night Tool Pusher 1 O.T Attendant 1 OT Technician 1 Production Supervisors 1 Resident Maintenance Supervisor 1 RIG Superintendent 1 Sanitary Inspector 1 Semi-Skilled I(Vehicle Mechanic) 1 Semi-Skilled -II (Painter) 1 Semi-Skilled -II(Computer Technician) 1 Semi-Skilled -II(Electrician) 1 Semi-Skilled -II(Fitter c Vehicle) 1 17

18 Skills Trend in Labour Market Trade Number Semi-Skilled -II(Instrument Mechanic) 1 Semi-Skilled -II(Instrument Mechanic) 1 Senior Officer Junior Officer 1 Site Accountant 1 Site Inspector 1 Skilled (Aposter) 1 Skilled (Masson) 1 Skilled Computer Technician 1 Skilled Optronics Technician 1 Skilled Tele Comm: Technician 1 SS-1 Electro Plating 1 SS-1 Gun Fitter 1 SS-1 Medical Instrument Technician 1 SS-1 Optronics Technician 1 SS-2 Computer Technician 1 SS-2 Medical Instrument Technician 1 SS-2 Tele Com: Technician 1 Sub-Engineer (Electrical) 1 Survey Instructor 1 Tech-I (Electrical) 1 Tech-III (HVAC) 1 Tech-III (Plumber) 1 Technician (Multimedia) 1 Telephone Operator 1 Tube Well/ Generator Operator 1 Vehicle Mechanic(HS-II) 1 Vehicle Mechanic 1 Waiter 1 Total

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