State Comptroller’s Report: Vocational Training and Adaptation to the Changing Labor Market
The auditor notes that as of the review period (March 2019-May 2020) there was no entity that centralizes and leads the field. According to him, the multiplicity of public bodies that provide a solution makes it difficult for the public to recognize the options and choose from the content. In addition, the lack of inclusion impairs the utilization of resources and makes it difficult to adapt the training to the needs of the changing labor market and the needs of the various populations.
Furthermore, the Comptroller notes that the Vocational Training Division does not have a regulated procedure of consulting with employers at the industry level to learn about market developments, and especially not with small and medium-sized employers or employers from the periphery. Only 7% of the participants in the vocational training of the Vocational Training Division did so in a track in collaboration with employers, although it is agreed that these are the most effective tracks.
The State Comptroller previously remarked to the Vocational Training Division that most budgeted training courses are held in isolation from the business environment and are not related to a specific employer interested in employees, and that they lack prior experience in practical work. The Comptroller notes that it is advisable to ensure that even in programs that are not implemented in collaboration with employers, employers will be included at least when it comes to determining the subjects and the curriculum, to ensure that participants enjoy quality and market-oriented programs.
The Comptroller also notes that in 2019-2020, no less than 600,000 workers in Israel were employed in jobs that are at high risk of material changes, and these may be dropped from the labor market in the coming years. This is on the order of about 15% of the jobs. Another 2.1 million work in medium-risk workplaces.
Despite the high numbers of workers who may find themselves in a situation where they are required to make a significant career change, especially in the context of the economic corona crisis that led to hundreds of thousands of workers being removed from the labor force, the effectiveness of training in Israel is insufficient. A survey conducted among vocational training graduates in 2017 shows that the proportion of employees who were not satisfied with the suitability of the course to the required in the labor market ranges from 35% to 53%.
Meanwhile, it seems that the wages of those who have undergone professional training have not risen satisfactorily either. According to OECD data, as of 2019, the contribution of all types of training in Israel to improving the income of employees compared to the income of high school graduates is at a rate of about 10%, and is lower than the average contribution in OECD countries, which is about 20%.
Regarding the integration of populations with few means and skills, the Comptroller states that there is no action plan to recruit these populations for training, and there is no in-depth diagnosis of the abilities and needs of these workers in order to optimally match the training they need. In addition, many low-wage or unemployed workers may give up training or drop out during it given the commitment of time and money involved in participation. In doing so, the Comptroller notes that in circumstances where unemployment benefits for the unemployed who participate in the training are only partially paid, this may serve as a negative incentive to participate in the training.
The report also shows that in recent years the investment in the vocational training system and the number of participants in it has decreased significantly. The annual investment in vocational training through the Vocational Training Division has decreased over the years from NIS 211 million in 2000 to NIS 138 million in 2019. The budget was 30% to 70% lower than the approved budget, and public investment in training in Israel in 2017 amounted to less than a third of the OECD average, as was the part devoted to professional and technological training.
The auditor warns that the economic consequences of the corona crisis in 2020 may accelerate the processes and trends in the labor market. Therefore, the need to expand quality professional training and adapted to change is of special importance, both as a tool for emerging from the crisis and as preparation for a new world of work.
In light of the changing reality of the labor market and the fear that many workers will find it difficult to integrate into it, the Comptroller recommends that the relevant government ministries – including the Ministry of Labor, the Ministry of Education, the Ministry of Economy and the Ministry of Finance – jointly examine the existing vocational and technological training systems. And their accessibility to the most needy populations, and will work to involve employers in the training processes of workers in accordance with the above recommendations.
The Ministry of Labor stated in response that it worked resolutely with members of the Employment Committee 2030 to implement a clause defining the labor arm as an integrated body at the national level for the issue of vocational training on behalf of all government ministries.
The “Bounce – Partnership for Investment in Tomorrow’s Professions” partnership responded: “The auditor confirms the ‘bounce’ claim that the professional trainings that have already been done are not tailored to the needs of the employers and have not been shared, contrary to world accepted.” Tali Nir, CEO of the 121 association, who founded the bounce: “The auditor, to put it mildly, criticized the split among the many government agencies responsible for vocational training. The next government must establish an independent and strong employment ministry, which will concentrate all the powers in the field under it and lead the national strategy required to deal with the challenge facing society and the economy. “
The auditor warns of a chronic shortage of skilled workers in the Israeli high-tech industry. The State Comptroller’s report shows that as early as 2019, an estimated 18,500 unmanned technology jobs in the high-tech industry were estimated, with various bodies and experts estimating that current trends are expected to generate demand for 20-50 million new jobs in technology professions worldwide.
State Comptroller’s report: State actions to increase the number of workers in the high-tech industry
The high-tech industry in Israel is a very significant growth engine of the economy, contributing about 12% to Israel’s gross domestic product – a figure that is especially relevant when emerging from an economic crisis where any growth engine is critical to economic recovery.
Therefore, this industry also makes a significant contribution to the state’s tax revenues, when according to the State Comptroller’s report between 2015-2018, state revenues in the high-tech industry amounted to NIS 55 billion. At the same time, exports of high-tech services grew at an accelerated pace. Almost half (46%) of all exports from Israel.
3 View the gallery
“The locomotive of the economy”: The high-tech industry contributes 12% to GDP, but its success depends on skilled labor – which is lacking in the country
(Photo: shutterstock)
Even in an international comparison, Israel still stands out as the “start-up nation”, with labor productivity in these professions higher than the OECD average. However, the continued prosperity of this industry in Israel depends quite a bit on quality and skilled manpower, which, as mentioned, is lacking in the country.
The main shortage of manpower is in outstanding university graduates with work experience, and the technology companies in the country often turn to finding workers overseas. More than a quarter of the local companies that participated in the survey of a high-tech human capital report reported development centers or software testing abroad, and if this trend intensifies and the companies move a significant part of their operations abroad, this would jeopardize Israel’s place as a global technology development center.
Examining solutions to address the shortage of skilled manpower for the high-tech industry was first discussed in the government in 2012, when the government adopted the main points of the inter-ministerial team report headed by the then head of the National Economic Council Prof. Eugene Kendall.
The government’s decision in this matter deals, among other things, with promoting the integration of populations with under-representation in the high-tech industry, since most of its employees are non-Haredi Jewish men, and there is no adequate representation for women, Haredim and Arabs. In doing so, the decision sets out required goals and steps in the areas of higher education. The budget of the national program for increasing skilled personnel in the high-tech industry is NIS 900 million, with most of it, NIS 730 million, being allocated to achieve the goal of increasing the number of students starting undergraduate studies in the high-tech professions by 40%. The comptroller notes that the higher education system met the target set by the government regarding the number of students who began undergraduate studies, yet the data show that 22% of students who began computer science studies at universities did not complete a degree within six years, and 20% of students who began studies in this field Degree in another profession.
The auditor notes that there is a strong connection between the study of scientific-technological subjects in high school and the study of high-tech subjects in academia. Meanwhile, the comptroller notes positively the increase in the number of examinees in the science and technology subjects and in mathematics in school, yet the data show that this is especially true among a strong population. Therefore, it appears that in the coming years the proportion of high-tech students in academia will be significantly biased in favor of the strongest populations in Israeli society, and it is doubtful whether it will reach its potential among the weaker populations.
3 View the gallery
The proportion of ultra-Orthodox and Arabs employed in high-tech was 4.9% in 2019. Haredi training for high-tech
(Photo: Eli Mandelbaum)
The Comptroller further notes that between the years 2013-2018 there was no significant change in the gender distribution in relation to examinees in the science subjects at the school, and therefore the chance of more women joining the high-tech industry remains low. This is despite the fact that the girls’ achievements in the matriculation exams in the scientific-technological fields are similar to those of the boys.
The Ministry of Education said in response to the report that two significant programs have been developed to correct this situation, the first being programming and robotics studies for fourth-sixth grades, which will expose girls to high-tech subjects at a young age, and the second is a national program for advancing girls in technology. Among ninth graders before the process of choosing the trend in tenth grade.
Regarding the sectoral gaps that stand out in the high-tech industry, since the rate of ultra-Orthodox and Arabs employed there was 4.9% in 2019 compared to 20% in the general labor market – the auditor states that the large gaps between sectors in the proportion of students in relevant professions should be reduced. The largest gap between the proportion of students examined in these subjects in high school is the Jewish-ultra-Orthodox sector, where 0% and 1% are examined in physics and mathematics, respectively, compared with 63% and 66% in Jewish-state studies.
The Comptroller further notes that despite the Ministry of Education’s central role in the task of increasing the skilled manpower for high-tech, unlike other relevant government ministries, it was absent from the government decision on the subject and was not assigned any tasks. The head of the National Economic Council told the State Comptroller’s Office in September 2019 that the Ministry of Education’s involvement in the issue of human capital promotion in the high-tech industry is important, so he thought it was important for the ministry to be included in the tasks set by the government, but in the face of disagreements. To pass the decision without including the Ministry of Education. “
The Comptroller recommends that the Ministry of Education try to identify the barriers in schools of vulnerable populations and make efforts to increase the number of examinees in the relevant professions among these populations. The comptroller also refers to the leverage of military service in favor of increasing the skilled manpower for the high-tech industry, and states that the Ministry of Defense must implement the government’s decision in this matter.
3 View the gallery
Comptroller: In recent years, there has been no significant change in the gender distribution in relation to examinees in the science subjects at school, so the chance of more women joining the high-tech industry remains low.
(Photo: shutterstock)
Data presented by the auditor show that only 58% of those employed in high-tech are graduates of high-tech professions in academia (computer science and electrical engineering), and that 25% of those employed in this field do not have an academic degree. This indicates that there is a high potential for integrating employees who are not graduates of these professions, for example through a conversion program for academics and training programs.
The two bodies responsible for non-academic training are the News Authority and the Commissioner of Labor, and the Comptroller notes that the two bodies operate without a coordination mechanism between them, resulting in a lack of clarity regarding the demarcation boundaries of the two bodies and the distribution of resources between them. This is similar to the situation in the field of vocational training in general in Israel.
The Comptroller recommends that the Commissioner of the Labor Arm and the Innovation Authority deepen their cooperation and establish – in cooperation with the high-tech industry – orderly coordination mechanisms between them. In this context, given the potential that women have in the high-tech industry, it is worth considering determining one factor on which the task will be assigned. The visitor also suggests considering setting up a government website that will gather information about the training programs, their cost, etc.
The report noted that optimal government monitoring is necessary to promote the increase in skilled high-tech manpower, especially since the task is scattered among many bodies. Nevertheless, the Ministerial Committee on this matter did not convene or discuss the strategic level of this issue or follow-up. The established professional team met only twice, the last of which was in October 2018. As a result, tasks included in the government decision, such as a program to leverage military service, for example, were not promoted.In addition, programs to integrate populations in high-tech under-representation require a more comprehensive response. These populations.