29.06.2023

THE INSTITUTE FOR MARKET ECONOMICS PRESENTS THE STUDY "EDUCATION AND EMPLOYMENT: VOCATIONAL EDUCATION CORRESPONDENCE INDEX WITH THE PROFILE OF THE ECONOMY - 2023"

EDUCATION AND EMPLOYMENT: Index of the match between vocational education and the profile of the economy 2023

The full text of the study is available HERE

The main role and advantage of vocational education is to provide a direct link between learners and the labor market.

The correlation index measures the relationship between vocational education and the profile of the economy.

The index shows vocational training by sector and compares it with the distribution of the labor force in different economic activities. This makes it possible to see both the structural coincidences and the deviations in the education provided in relation to the needs of the labor market. The calculations also allow to trace the relationship between education and the labor market at the regional level.

Almost half of students will not apply what they studied for

The index of correspondence of vocational education with the profile of the economy for the country in 2023 is 53.6 points (out of a maximum of 100 points).

The study covers a graduating class of over 21,000 students who will study in the next five years in specialties from six selected sectors: agriculture, processing industry, construction, transport, hospitality and catering, and ICT. The results of the index show that probably 10 thousand of them will not do what they studied for.

Compared to last year's edition of the index, there was a decrease of 1.2 points. The reason for this lies mainly in the shrinking of admissions in majors related to the manufacturing industry, at the expense of expanded admissions in majors aimed at occupations in the field of information and communication technologies. Although this deepens the disparity, this transformation is not necessarily entirely negative.

Training continues in specialties that are not in demand on the labor market

The data show the high burden of specialties and professions that are practically not in demand, but fill places - on the one hand in already outdated and unnecessarily broad specialties (for example, in agricultural disciplines), and on the other, in those with relatively low training costs (for example, in the hotel and restaurant industry).

However, recent years have generally seen an expansion of vocational education enrollments in ICT fields at the expense of the previously highly prevalent training in the agriculture and hospitality sectors. There is also the emergence and increase in popularity of some new specialties responding to the transformation of the structure of the economy and the development of technology such as "Electric Vehicle Technicians" and "E-Commerce Organizers".

The regions are presented differently - in the capital, the compliance is the highest

Data at the district level provide an even clearer picture of the match between vocational education and the profile of the economy.

The capital has the highest score - 67.3 points, and the Lovech region - 36.4 points - the lowest. The first place of Sofia (the capital) is determined by the high share of both those studying for the PPK and those employed in the ICT sector, and together with that - the low share of those studying and employed in agriculture. The capital retains its first place from the previous edition of the index. The last place of the Lovech district is due to the fact that it is the district with the highest share of students in specialties aimed at the hotel and restaurant sector (almost double the average share in the country) with a relatively low share of those employed in this economic activity in the field.

Flexible education, dual training and professional guidance are needed

The negative effects of mismatches between what is taught and the profile of the economy can be reduced by more general education in a school environment at the expense of specific training in specialties for the full course of education. Thus, for example, highly specialized subjects from the initial courses of vocational education could be replaced to some extent by language and technological training, as well as by the acquisition of soft skills that increase the chances of employment.

An important aspect in vocational education and training is the continued expansion of the scope of dual training. Work-based learning while still in school will also increase the employability and attractiveness of vocational education because of stronger practical skills (relatively less need for training at the start of the working career at the first employer after secondary education) and the possibility to remain in work at the place of study. At the same time, the widespread application of dual education will naturally increase the correspondence between the specialties offered and the profile of the local economy. This approach should be complemented by the possibility of transfer between professions, as well as by mandatory professional orientation of students.