The Human Development and Labor Market Study Center of PSI presented its preliminary research findings on the study titled Education to Work Transition of Graduates in Ethiopia: Key Challenges and Insights for Policy Options on February 9, 2023, at PSI's main hall.
Members of the study's research team, Dr. Dessalegn Anshiso, and Dr. Tesfamariam Shimekit presented the different sections of the report. They explained that the transition of youth from education to work is fraught with many uncertainties. In Ethiopia, various policy initiatives have been taken to provide education to all citizens and to regulate the transition from education to work.
They emphasized that the education sector has experienced strong growth in recent decades. In contrast, youth unemployment has recently become a pressing issue. The presenters added that the slow process of transition from school to work is expected to have a profound impact on the country's social stability and economic development. Therefore, it is necessary to identify the main challenges, supportive practices, and determinants of the education-to-work transition.
The presenters said they used both quantitative and qualitative data. They added that a telephone survey was conducted to collect the quantitative data. In addition, a multistage sampling strategy was used to select a total of 4077 graduates who graduated from public and private universities and polytechnic colleges in the country within three years (2011 to 2013). In addition, a total of 28 focus group discussions (FGD) were conducted with university and polytechnic staff, industrial companies, labor market institutions, and professional associations. Secondary data were collected from universities and polytechnics to supplement the primary data. They then analyzed the data using both quantitative and qualitative methods.
They found that the transition of college graduates into the labor market in Ethiopia appears to be a complex undertaking. They found that the average duration of the transition from education to employment (duration of unemployment) is 12.5 months. They also found that the transition of vocational education graduates into the labor market is relatively easy compared to universities.
They explained that universities and vocational education institutions have established a structure of university-industry liaison offices to connect graduates with industry. Universities are also supposed to establish a "deliverology" unit to conduct tracer studies on their graduates within 6 to 12 months after graduation. However, the efforts of both agencies have been inadequate, they said. They also said that according to information they received from panelists at FGDs, industry/employers served as the center for training and internship programs. Companies such as banks, insurance companies, and Ethio-Telecom helped graduates by providing them with industry-specific skills and abilities.
However, industry/employer input into curriculum design remains low. Both government and private labor market institutions (LMIs) in Ethiopia, such as Ethio Statistics Services (CSS), the Ministry of Youth and Social Affairs, the Ministry of Labor and Skills, ethio-jobs, HaHu Jobs, and dereja.com, aim to provide necessary data on the graduate labor market, facilitate entrepreneurial endeavors, protect workers' rights, and match graduates with employers. However, the accessibility of these institutions is limited. On the other hand, professional associations in Ethiopia are less involved in graduates' transition from education to employment.
The study found that overall coordination among stakeholders such as universities, LMIs, employers, and professional associations appears to be weak. University and technical college (TVET) graduates face various challenges in the transition from education to work. The main challenges can be grouped into the following categories: College- and TVET-level challenges (lack of employability skills and insufficient links between university and industry), labor market-related challenges (corruption and nepotism, lack of jobs for new graduates, language and cultural barriers, and geographic barriers), institutional challenges (lack of funding to start a new business and lack of support from professional associations), policy-related challenges (lack of policy at the national level and poor policy implementation), and current shocks (political instability and war, and the outbreak of COVID -19). Among these, corruption and nepotism, lack of jobs, and lack of funding are the top three challenges for vocational education graduates, while political instability and war, corruption, nepotism, and lack of funding are the top three challenges for higher education graduates, in that order.
In addition, FGDs cited different challenges. Discussants at universities and vocational schools indicated that their curriculum lacks consistency and that the ministry changes the curriculum without preconditions. Other challenges include a lack of budget to support the transition process, a low incentive system for academic staff, and a lack of facilities and educational resources. There is also a mismatch between the job market and graduates' skills, a lack of graduate qualifications, and students' pessimistic view of future employment opportunities in their field of study. The lack of transparent job postings and hiring procedures, the spread of the COVID-19 pandemic, and political instability are affecting the country's labor market.
They added that implementation of programs that do not meet industry needs and weak formal and viable linkages and communications with the industry are other challenges. The lack of labor market involvement in curriculum development and the lack of skills (e.g., practical, language/communication, and computational skills) and social norms (ethical issues) could also complicate the transition. Low industry motivation to work with educational institutions presents a challenge to the labor market. In addition, the labor market has narrowed geographically due to security issues.
The presenters recommended the establishment or expansion of a system to support national and regional employment policies. They added that to reduce key challenges, priority should be given to fighting corruption and nepotism, supporting job creation initiatives, reforming and ensuring accessibility of the financial sector to support graduates, and establishing political dialog to prevent political instability and war. It is suggested that emphasis be placed on designing practice-oriented curricula and strengthening the current links between universities and industry and between vocational education and industry. Build/strengthen a national system in which graduates can work freely and without discrimination in all parts of the country. They also suggested developing and implementing competency-based curricula, courses, and assessments. They also recommended introducing accreditation of degree programs that focus on graduate outputs and outcomes, improving links between universities and industry to increase graduate employability, and establishing a support system for students that extends from the first year of study to the job market. Focus on graduate job creation and revise the existing job structure in the public and private sectors to create graduate jobs. Institutionalize a clear, transparent, and technology-based hiring and employment system to minimize corruption. Develop and implement incentive packages for industries that participate in graduate education. Establish financial aid programs for undergraduate and graduate students.
Following the research presentations, participants at the internal workshop provided numerous questions, comments, and suggestions. H. E. Professor Beyene, Acting Director General of PSI, said that your results are much lower than the figures published by Ethiopian Statistics and that you need to support these results with evidence. Professor Beyene asked the presenters to focus on how to solve the problem of unemployment in a country. He also asked how language is a barrier to employment in federal offices. He also asked them to clarify what harmonized curricula mean and address the issues related to massification and opening universities in nearby areas and advised the researchers to increase support for graduates as long as they can find jobs.
Other participants urged researchers to limit their variables, review previous measures, and look at the nation's unemployment problems from a qualitative perspective. They were also asked to look at counterfeiting and minimum wage issues, apprenticeship problems, and graduate behavior. In some cases, they were also asked to revise their conclusions based on their analysis, integrate their qualitative and quantitative analysis, and add experiences from other countries. The presenters responded to some of the questions and agreed to take on board most of the questions and suggestions for refining the study.
In conclusion. H.E. Professor Beyene in his closing speech said that to solve unemployment in Ethiopia, it is necessary to create an institution that will take care of youth employment. Professor Beyene said that instead of blaming the graduates, every institution must be accredited locally and internationally so that the graduates are competent enough to either create their own jobs or be employed in private and government organizations.