A Labour Market Approach

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Jul 15, 2015 - Australian Agency for International Development. APTC. Australian ... Papua New Guinea Trade Union Congress. PEE ...... Mechanical Allied Trades. Welding ... Beating and Spray Painting, Joinery, Tourism and. Hospitality.
Supporting Demand-Led Vocational Skills Development in Papua New Guinea: A Labour Market Approach

Study prepared by Ben Imbun (Dr), key technical expert, Policy and Employability, HRDP2, on behalf of LMNAS Team (Asseneth Tugiau, Betty Napil & Paul Gunn) and TAT, DoE, Waigani

December, 2015

1. Executive Summary Skills are a critical asset for individuals, businesses and societies. Yet identifying and anticipating the demand for skills in an economy is proving formidable a challenge for education and training systems in developing countries, particularly Papua New Guinea (PNG). The study into analysing labour market information (LMI) of six provinces (NCD, Enga, Morobe, ENB, East Sepik and Eastern Highlands) was a quest embarked upon to collect and analyse information in order to guiding the European Union (EU) funded Human Resource Development Programme Phase (HRDP) 2 Project (the ‘Project’) into making informed decisions regarding demand for technical skills in allocation of its scare resources. The overriding mission for the labour market needs analysis study (LMNAS) was to collect information from private sectors and vocational training centres (VTCs) to identifying skills and trades of demand, particularly by the former in its endeavour to provide goods and services. The LMNAS team has accomplished the study concentrating on VTC skills formation and the demand for it. Consequentially, this had allowed them to make some significant decisions in guiding the further implementation of the HRDP 2. These included: 

identification of skills mismatches in terms of imbalances between skill demand and skill supply in the six provincial economies,



identification of skills demand and recommendation of relevant VTCs teaching particular trades for HRDP 2 infrastructure support, and



identification of opportunities and challenges in areas of vocational education sector for potential HRDP 2 support.

The stated outcomes have been achieved by the LMNAS team through visitation of six provinces of which hosting of workshops and interviews of key stakeholders were the modus operandi of information gathering. The team is of the view that the skills mismatch inherent in the vocational education system (VES), broadly the technical vocational education training (TVET) system requires a greater partnership between the VTCs and private sector. This collaboration needed to be facilitated by educational authorities in order to making the skills development system more relevant and responsive to the needs of the industry. Rather than 2

acknowledging the litany of issues and challenges begetting the VES, this study advocates for active and systematic (as opposed to ad hoc) participation by industry in policy making and implementation of national skills and programs. The LMNAS identifies challenges, opportunities and recommendations for a way forward for vocational skills development in the study. It urges stakeholders to make a major change in the mind set to recognise that skills development is no longer simply the responsibility of the government, rather a common concern and responsibility of enterprises and individuals as well. The study proposes some practical strategies of ‘how’ to engage industry in terms of effective mechanisms, structures (e.g. industry-led skills body) and incentives. This study is, therefore, a small step in the broader framework of demand oriented vocational skills development and training journey, but forms a centre plank in the implementation of the HRDP 2 project in PNG.

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2. List of Abbreviations and Acronyms ADB AusAid APTC CAT CPI DoE

Asian Development Bank Australian Agency for International Development Australian Pacific Technical College Certificate in Appropriate Technology Consumer Price Index Department of Education

DLIR DNP&M ENB EU FTF GDP GNI HDI HRD HRDP 2 ILO IMF JICA LMNAS LNG LMI MWB MDG MoU NAO NCD NEC NLMD NRI NSO NZAID NGO OHE PICs PNG PNGTUC PEE SESWP SPSP SMEs TNA TAT TVET UN UNDP US VTC

Department of Labour and Industrial Relations Department of National Planning & Monitoring East New Britain European Union Free Tuition Fee Gross Domestic Product Gross National Income Human Development Index Human Resource Development Human Resource Development Programme – Phase 2 International Labour Organisation International Monetary Fund Japanese International Cooperation Agency Labour Market Need Analysis Study Liquefied Natural Gas Labour Market Information Minimum Wages Board Millennium Development Goals Memorandum of Understanding National Authorizing Office National Capital District National Executive Council National Labour Market Demand National Research Institute National Statistics Office New Zealand AID Non-Governmental Organization Office of Higher Education Pacific Island Countries Papua New Guinea Papua New Guinea Trade Union Congress Policy and Employability Expert Seasonal Employment Scheme Work Policy Program Sector Policy Support Programme Small-medium enterprises Training Needs Analysis Technical Advisory Team Technical Vocational Education and Training United Nations United Nations Development Programme United States Vocational Training Centre 4

VES VET WB

Vocational Education System Vocational Education and Training World Bank

* Cover photo: Signpost of Kamaliki Technical Vocational Training institute, Goroka, Eastern Highlands Province, one of ten (10) selected vocational schools for HRDP 2 infrastructure, capacity building and tools and equipment support.

Disclaimer This publication has been produced with the assistance of the European Union. The contents of this publication are the sole responsibility of Dr Ben Imbun (and the LMNAS Team) of HRDP2 and can in no way be taken to reflect the views of the European Union.

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3. Table of Contents Parts 1 2 3 4 4.1 4.2 4.3 5 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 6 6.1 6.2 6.3 6.4 7 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 7.10 7.11 7.12 7.13 7.14 7.15 7.16 7.17 8 8.1 8.2 8.3 8.4 8.5 8.6

Topics Executive Summary List of Abbreviations and Acronyms Table of Contents Introduction HRDP 2 Objectives Study Objectives Layout of Subsequent Parts of Study Research Methodology Research Design Literature Review and Field Missions Data Collection Convenient Sampling Questions and Deductive Logic Rigorous Data Compilation and Analysis Limitations Conclusion Why Do We Have to Carry Out Labour Market Supply and Demand Analysis? Labour Market Supply and Demand Analysis, the Key Ingredient Significance of Labour Market Information Ability of Labour Market Study to Provide Information Conclusion What We Know of PNG Labour Market Trends and Developments PNG Labour Market Characterised by Structural Problems and Paradoxes High Population Growth Low Labour Force Participation High Level of Public Sector Employment Dominant Informal Sector High Levels of Youth Unemployment Huge Skills Mismatch Robust Economic Growth High Levels of Poverty Entrenched Gender Inequity High Prevalence of Child Labour Acute Absence of Labour Market Information Low Level of Wages High Prevalence of HIV/AIDS Increasing Number of Expatriate Employment Obsolete Labour Market Legislations Conclusion Demand and Supply for Labour in the Six Provinces Demand and Supply of Labour Framework Analysis Demand for Labour in the Provinces Trends in Migration and its Domestic Impact Impact of the Provincial Investment Environment Globalisation Impact Government Role 6

Page (s) 2 4 6 9 9 10 11 12 12 13 14 15 15 15 16 16 18 18 18 19 20 21 21 22 24 25 27 28 29 29 31 32 34 35 36 38 39 41 42 44 44 44 45 45 46 46

8.7 8.8 8.9 8.10 8.11 8.12 8.13 8.14 8.15 8.16 9 9.1 9.2 9.3 9.4 9.5 9.6 10 10.1 10.2 10.3 11 11.1 11.2 11.3 11.4 11.5 12 12.1 12.2 12.3 12.4 12.5 12.6 12.7 12.8 12.9 13 13.1 13.2 13.3 13.4 13.5 13.6 13.7 13.8

Gender Roles Supply for Labour in the Six Provinces Population Growth Rural-urban Migration International Migration Human Capital Supplies Access to Existing Social and Economic Services Private Sector Development Gender Responsibilities Conclusion Analysis of Skills Gap in the Six Provinces Understanding the Prevailing Provincial Economies and Labour Markets The Current Context of the Trades Demand in the Six Provinces The Supply Dimension of Trades in the Six Provinces The Vocational Sector – Linking the Trades Supply and Demand Potential Trades for Females in VTCs Conclusion The Trades Skill Gap Analysis in the Six Provinces Trades Skill Gap and the Industry Trades Skills Gap Analysis Conclusion Selection of VTCs to Enable HRDP 2 Intervention for Infrastructure Support VTCs of the Six Provinces and their Significance to HRDP 2 Criteria for the Selection of VTCs Selection Matrix of VTCs of the Six Provinces Selected VTCs for HRDP 2 Support Conclusion Plotting Challenges and Opportunities in the Vocational Training Centre Demand for Skills Varies VTCs – Industry a Weak Link in the Provision of Demand Driven Technical Trades? Capacity Building Needs of Managers and Instructors Importance of Soft Skills Lack of Labour Market Information Limited Application of Entrepreneurship Lessons in VTCs Disconnect Between Employers, Communities and TVET Peak Provincial TVET Council Conclusion Recommendations for Mapping a Way Forward Demand for Varying Skills and Trades Meeting of Unfulfilled Demand and Creating Demand-driven Training Program Furnishing of Tools and Equipment as Integral to the Delivery of Trades Teaching Think and Practise Entrepreneurial Need for Soft Skills Gender Sensitivity Priority Interventions Establishment of Partnerships Between VTCs and Industry 7

47 49 49 50 51 52 53 53 54 55 57 57 61 63 67 69 70 71 71 79 80 81 81 83 84 87 88 90 90 91 93 93 94 94 95 95 95 97 97 98 98 99 99 99 100 100

13.9 14 15 16 17

Establishment of a Peak Provincial TVET Council References Annex 1: Questionnaires Used in Provincial Missions Annex 2: Key Stakeholders Consulted During Field Missions Annex 3: List of Meetings Held During Field Missions

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101 102 105 109 114

4. Introduction This is a study based on the demand and supply of VET skills (trades) of six provinces (NCD, Enga, Morobe, ENB, East Sepik and Eastern Highlands) to enable the roll out of the EU funded HRDP 2. The study is set in the context of PNG’s overwhelmingly supply driven labour market which minimally meets the demands of employers, particularly of the private sector (ADB, 2007). Generally, the country is facing a huge dilemma or paradox in skills gaps or skills mismatch between those supplied by TVET sector and those demanded, which is slightly different in experience and expertise from that required by the industry in order to perform the jobs adequately. Despite the skills mismatch being an issue of world-wide concern, it is acutely felt in PNG where matching of graduates from TVET to labour market needs is a huge challenge.

4.1 HRDP 2 Objectives As a direct response to this skills paradox, the EU funded HRDP 2 is intervening in the six provinces (Imbun, 2015a) by assisting in three areas:  in the improvement of lower secondary level vocational institutions whereby increased number of post-basic education students are enabled to acquire knowledge and skills development that are labour market demanded,  supporting the lower secondary level vocational institutions with infrastructure support and with relevant educational materials such as books and tools,  improving the capacity of TVET system through enabling the provinces to cooperate and coordinate development plans and strategies at national and provincial levels with strengthened involvement of the business community. The overriding objective of the study, and indeed of HRDP 2, is to identify linkages between the provincial private sectors and VET institutions which supply labour to the market. Given the capacity utilisation at VET institutions are low and more than half of the graduate student capacity is not utilised, the Project is aimed at addressing this deficiency in the six provinces. This study is therefore a study of how the process of matching VET skilled job seekers with available job openings is occurring in the six provinces. Although the inevitability is there in 9

the form of imbalances between the supply and demand for graduates with different skills, this study is aware of the complexity of factors such as individual’s initial education and occupational choices and imperfect information of labour market opportunities as contributing factors to the skills imbalances. These observations influence the different modes of skills mismatches to coexist, including skill shortages, qualification mismatches and skills gaps in the PNG labour market.

4.2 Study Objectives Given this context of skills mismatch in the PNG labour market generally and the six provinces, in particular, this study is a requirement of the HRDP 2 which assists in the identification of an indicative list of trades in high demand in each of the six provinces. The key objectives of the study include:  an assessment of the skills in demand by employers, industry, and small medium enterprises (SMEs) and businesses  an assessment of the present supply of skills by VET providers (institutions)  an assessment of VET providers’ capacity in relation to furnishing current skills demand  an assessment of how businesses meet their labour demand of VET trained graduates in the province, and  an assessment of infrastructure and tools needs of the VET centres and how they affect the training of VET graduates; and  selection of some VTCs for HRDP 2 infrastructure, tools and equipment and capacity building support The analysis done on the demand data and the supply data makes it possible for the study to identify the gaps between supply and demand at trades/skills level per province. This study, therefore, is evidenced-based ensuring credibility of the overall process of information accumulation and analysis is strengthened with stakeholders, particularly business enterprises 10

and VET providers respectively contributing views and ideas on demand and supply of VET graduates in the six provinces.

4.3 Layout of Subsequent Parts of Study The rest of the paper is fragmented along thematic lines. However, they are all interrelated and sequentially connected. There are ten (10) proper chapters (parts) to the study, apart from the executive summary and extras (such as abbreviations and acronyms and Table of Contents) at the outset. Part three commences with the discussion of introductory narrative informing of the objectives of HRDP 2 and LMNAS and layout of subsequent parts of the study (report). Part four discusses research design (methodology) utilised for the study. It discusses the methods utilised in collection of LMI in the six provinces. The methods include both quantitative and qualitative design involving survey questionaries and ethnographic methods and techniques. This is followed by a discussion (part five) on the rationale behind the need to carry out labour market analysis. The main factors influencing the PNG labour market in terms of developments and trends affecting social and economic development of the country is the next (six) part. The subsequent part (seven) looks at demand and supply of labour in the six provinces. The salient characteristics which form integral to influencing and sustaining the labour markets of each of the six HRDP 2 provinces are identified and analysed. Further, part eight begins the analysis of the actual LMNAS fieldwork data and provides a count down on the skills gap and supply side to it experienced in each of the six provinces. While part nine analyses skills gap and perceptions of the private sector followed by the selection of VTCs to enable HRDP 2 intervention, particularly in terms of infrastructure support (part ten). Part eleven plots challenges and opportunities in the VTCs and finally (part twelve of) the study comes up with some recommendations for mapping a way forward for vocational training of skills in PNG. The recommendations provide a road map for potential Department of Education (DoE) and donor intervention in the areas identified to rectifying inherent issues and challenges in the sector and in the process consolidate it in what is currently in a fragile state despite the commitment of everyone, particularly managers and instructors.

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5. Research Methodology This LMNAS for the implementation of HRDP 2 Project was facilitated through the embracement of a serious research methodology to investigating the skills and trades gap in the supply and demand for vocationally trained labour in the six provinces. It followed an elaborate research design with a sequential pattern of data collection activities in the form of literature review, circulation of questionnaires and individual and focus group interviews, sampling and analysing of it. Limitations encountered in the LMNAS research are also stated.

5.1. Research Design The study is based on an empirical study of which the research design was influenced by a multiplicity of methods and techniques. The research design is the structure of any scientific work. It gives direction and systematizes the research. In this study, it had both quantitative and qualitative design involving survey questionaries and ethnographic methods and techniques. The rationale for the survey questionnaire design was its efficiency. The methodology followed a highly consultative and participatory approach with DoE officers engaged at all stages of the research with the HRDP 2 Technical Advisory Team (TAT), particularly the Policy and Employability Expert (PEE). The fieldwork for primary data collection commenced following the approval of the data collection tools and fieldwork plan by DoE (see Annex 1). Provincial visits were undertaken in NCD, Enga, Morobe, ENB, East Sepik and Eastern Highland provinces. They were undertaken by the PEE accompanied by DoE officers. The quantitative aspect of the research involved written questions on demand and supply of VET skills in the six provinces. They were relevant and comprised of the circulation of two sets of questionnaires. One was targeted at business enterprises in the six provinces which were aimed at gathering information on the demand and supply of VET skills to their needs (see Annex 1). The other was targeted at VET providers aimed at collecting information on their needs as per resource, curriculum and training availability. Research wise, achieving success in the utilisation of limited resources in time, effort and labour was given top priority. While the qualitative aspect of the research, on the other hand, reviewed the opportunities and challenges in terms of current VET curriculum and capacity and their relationship and 12

linkages to the private sectors. In other words, the rationale for the qualitative design was the researchers’ primary interest in the lived experience of the participants involving VET skills demand and supply in the six provinces in particular, and country generally. Qualitative methodology was meant to also encourage higher levels of reflection in the prompting richer perspectives in the participants’ or focus groups’ responses. However, in terms of guidance, key milestones characterising each phase of the research was accomplished before moving into the next phase of the study (view Figure 3.1. for the key research milestones of the HRDP 2 LMNAS).

5.2. Literature Review and Field Missions In undertaking the study, first, a desktop comprehensive literature review of salient characteristics of labour market pertaining to PNG was undertaken. That work forms parts two and three of the study. The former mainly identified the country labour market dynamics and trends as they influence economic and social development in the country. The latter identifies and discusses factors shaping the labour market in the six provinces. After undertaking the literature review, second, field missions were undertaken by the PEE and DoE counterparts by travelling to the six provinces spanning little over a month in July and August. The LMNAS Team spent a maximum of some five days in each province talking to stakeholders of VET, particularly managers and instructors and provincial authorities, and the industry representatives. FIRGURE 3.1:

 Documentation Review of HRDP 2 Project Documents  Literature Review of relevant research studies  Debriefing with the TAT & DoE Team

KEY RESEARCH MILESTONES

2. Research Preparation

4.

 Orientation and training of field team

 Development of research tools  Sample Selection  Identification of DoE counter parts  Vetting and finalization of tools by the DoE Teams

 Pilot Test

 Data Analysis

 Data Collection based on Survey, Key informant Interviews with VET Teachers & Managers plus private sector reps.

 Presentation of Preliminary Findings to the HRDP2 Steering Committee Meeting

Chart 5.1 above provides the key research milestones of the HRDP 2 LMNAS. 13

Report Compliance & Dissemination

 Report Finalization

The research involved meeting of several key milestones as explained in Figure 5.1. The first phase involved mainly literature review of relevant PNG literature and project documents. It also involved meeting with DoE counterparts and debriefing them of utilising of research approach. That was followed by phase two which saw the development and approval of research tools, sample selection and identification of DoE counterparts. Vetting and finalization of research tools by DoE meetings also occurred. Next, orientation, circulation of questionnaires, interviews and workshops followed which basically collected the information for the LMNAS report. Finally, data analysis and announcement of preliminary findings occurred which fed into identifying of VTCs for HRDP 2 support. Subsequently, a final report was produced. The logic of the research was that each of the milestones was achieved before moving into the next one.

5.3. Data Collection Data was collected primarily through field missions made by the LMNAS team to the six provinces. An intense one week of LMI gathering occurred in each of the provinces, during the July-August period. That was followed by a subsequent follow-up visit of few days in November. Of the methods, included circulation of a structured questionnaire (see Annex 1) and in-depth, semi-structured, face-to-face interviews supplemented by staging of a workshop style presentation of HRDP 2 Project information dissemination and gathering of information from the participations (see Annex 2 and 3). Further, telephone interviews (in the case of NCD) and focus group meetings with relevant industry managers and employees, VET providers, managers, instructors, parents, community members, non-governmental enterprises (NGOs) and provincial government representatives were also the modus operandi of information gathering. Approximately six interviews for each of focus group took place. The fieldtrip also included ad hoc meetings with concerned individuals of respective public and business spheres who were concerned of VTC training in each of the each of the six provinces: NCD, Enga, Morobe, ENB, East Sepik and Eastern Highlands. The rationale for the focus groups is that they can generate richer data from in-depth interaction with the participants and among them, and that they resonate with in rural PNG. Data was also collected from provincial documents such as meeting reports, education plans, publicity brochures and some provincial education websites. The fieldwork data interpreted to create a ‘thick description’ (Geertz, 2000) of VET affairs in the six provinces, and their impacts on the provincial labour market and economy. 14

5.4. Convenient Sampling Convenient sampling, a non-probability sampling technique was used simply for its convenient accessibility and proximity to the research team. The 100 set of questionnaires meant for the business enterprises was distributed to easily accessible business enterprises in each of the provinces. Likewise, the 10 set of questionnaires was circulated to VET providers in each of the six provinces. The two specific populations (business organisation, VET providers) were targeted because of their potentials to provide relevant information to address the research questions. The participants therefore were recruited through the snow-balling method, drawing initially on the networks of each of the six provincial education administrations who knew the business enterprises and VET providers in their provinces.

5.5. Questions and Deductive Logic The questions asked in the interviews and focus groups addressed the demand and supply of VET skills. The aims and objectives of the provincial labour market study were targeted at tackling themes such as the nature of the relationship between the VET institutions and business enterprises and other stakeholder groups (such as national and provincial government roles); degree of VET input into the supplying of labour; the extent to which the business enterprises have influenced demand and supply of VET skills and TVET programs generally. Deductive logic was used in the analysis to identify pre-established categories such as ‘demand of VET skills’, ‘supply of VET skills’, ‘business skills’, ‘self-employment’ and ‘livelihood’ in the interviews and focus groups. Inductive logic was used to analyse themes that may emerge unexpectedly from the data. Shifting between the two complementary modes of reasoning, it ensured greater rigour in the analysis of provincial labour market.

5.6. Rigorous Data Compilation and Analysis Following the provincial fieldwork activity, a rigorous data compilation and analysis was initiated. For the qualitative data, the analysis was carried out in numerous focus group and individual meetings and workshops with the PEE and DoE team. The analysis followed a sequential processes of consisting of raw data (statements made by the participations), descriptive (summary statements of the respondent’s comments), and interpretation (building 15

on the summary statements and presenting the meaning of the data). The overall trends and patterns as well as frequently mentioned and strongly held views were noted and included in the analysis. The preliminary findings of the study were presented to the DoE in a detailed debriefing session. The study has been complied following the input and feedback received from the session.

5.7. Limitations However, there were several inherent constraints to the study. First, such a study of this nature and magnitude of labour market study of the six provinces would require more than the time committed of a month’s fieldwork. That was not going to be when given the urgency of the Project to fast track the study in order to trigger the next sequence of activities in implementing it. Second, as a result of limited time spent in rounding up of questionnaires from stakeholders, particularly from the private sector, the LMNAS could not manage to have many of them returned from several of the provinces. As a result, there were many questionnaires, particularly from the business enterprises which were not returned to the LMNAS team. That was evident in several cases, particularly in the case of NCD, of which the team sought responses to the questionnaires through making telephone calls to a lot of the companies. That method was effective in seeking the required responses and the data analysis was overall successful. Finally, there were cases where some of key industry representatives could not be interviewed because of time constraints on both sides. Despite those challenges, the analysis and write-up of the LMNAS was never comprised and the report presented is complete piece of the challenging assignment.

5.8. Conclusion A study of technical skills gaps of provincial labour markets of this nature needed to be properly mounded and implemented to achieve the desired results. It needed to be scholarly and academic as it could be in order to come up with grounded and tested assumptions of the dynamics of labour market operations. The methodology was therefore effectively sound and the activities implemented were done sequentially to arrive at a finished but polished product in terms of not only its efficiency but most importantly ethically in its application. The study reflected this fine coordination of information management, analysis and coming up with 16

findings and recommendations to set the background to further implement the HRDP 2 Project, particularly infrastructure and other supports going to the VTCs in the six provinces.

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6. Why Do We Have to Carry out Labour Market Supply and Demand Analysis? In order for a country to function orderly with the provision of goods and services to its population, it is critical for the economy to function efficiently. This function of the economy is done with the matching of human labour with the necessary skills to jobs in the different facets of the economy which produces goods and services. The matching of skills with jobs occurs in a labour market which facilitates the labour to be bought at the right price. This important function of the economy can only be understood in analysing the labour market dynamics in terms of its supply and demand of labour. This part of the report analyses the significance of analysing labour market supply and demand by highlighting LMI plays in the context of economic development.

6.1. Labour Market Supply and Demand Analysis, the Key Ingredient Most countries carry out labour market supply and demand analysis as it is a key ingredient to the success of a modern economy (Woods and O’Leary, 2007; Imbun, 2008). LMI can improve both the short- and long-term matches of labour supply and demand, ensuring that individuals acquire the skill sets required by employers for current dynamic labour market. Surrounded by this background, this labour market study attempts to provide sound and up-todate information on trends in the market – such as trends in skills demand in type of businesses at the provincial level are defined. They can then inform the DoE in the construction of appropriate infrastructure and capacity building of teaching staff as part of the implementation of HRDP 2 in the target provinces.

6.2 Significance of Labour Market Information The significance of LMI cannot be compromised. For effective human resource development (HRD) of PNG, reliable LMI availability is critical. LMI is the information needed by individuals and enterprises to make informed decisions about the labour market (ILO, 2009). Labour market analysis is the process involved with investigating supply and demand chain information about the labour market. LMI is sometimes referred to as the “grease” that allows the “wheels” of the labour market to operate efficiently and effectively (Ontario Ministry of Training, Colleges and Universities, 2005). A certain threshold of knowledge is required for 18

individuals to respond to market signals such as wage changes and job opportunities in a timely fashion. The creation and dissemination of accurate LMI executes the critical duty of developing informed labour market participants. Above all, an effective LMI system is demand-driven. Chart 6.1 displays LMI follows between originators and users of information. Chart 6.1. Labour market information flows

Government (national & provincial supported & maintained)

Other government & private source Hard copy reports & data summaries

Internet-based data repositories & dissemination

Self-service & LMI intermediaries

User communities

6.3 Ability of Labour Market Study to Provide Information More importantly, this study of labour market in the six target provinces of PNG with respect to VET graduates attempts to answer questions about both the supply and demand sides of the labour. It also attempts to pose questions of market balance: supply relative to demand. Box 6.1 provides some specific questions the study addresses.

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Box 6.1: Ability of labour market study to provide information on:

 What kind of VET education and skills in demand by employers, industry, small and large businesses (especially by the private sector)?  How many VET jobs are expected to be created over the short term?  What do VET instructors know about gaps in the existing VET curricula?  Where do VET graduates work in the industry  What kind of employers reaching out to VET labour in the provinces?  What kind of VET knowledge and skills women have in the provinces?

6.4. Conclusion So any LMI is demand driven. Job seekers make both short-term and long-term career development decisions. Employers make decisions pertaining to recruiting, business expansion, relocation, employee skill development, and employee compensation. Education and training institutions plan, implement and evaluate curricula and career guidance to meet the needs of both job seekers and employers. Government officials make policy regarding funding, design and operation of public labour market programs. Above all, analysis of LMI data can provide predictions and general trends for future, geographical comparison between industries and occupation.

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7. What We Know of PNG Labour Market Trends and Developments In order to investigate the skills (trade) gap analysis of the private sectors of the six HRDP 2 provinces in PNG, it is imperative to understand the labour market trends and developments in the country. The labour market at the national level and also at the provincial level is fraught by different sets of issues and challenges. They make it difficult for young people, especially those graduates of VTC in particular, and TVET in general, to find appropriate jobs in the formal labour market. The private sector’s inability to create jobs and for those that exist come with greater expectations of skill sets and experiences make it twice as hard for VTC trained labour to get employed. In order to analyse the complex and sometimes insurmountable employment issues of PNG, it is pertinent to discuss the salient characteristics of the country’s labour market. This part of the study just does that in laying the platform for the subsequent sections.

7.1 PNG Labour Market Characterised by Structural Problems and Paradoxes Broadly speaking, what we know of the PNG labour market generally is that it is characterised by structural problems and paradoxes in skills gaps (ADB, 2007). But there are more specific issues and trends characterising the PNG labour market. The salient trends are hard not to ignore. There are several key trends that characterise the PNG labour market (see Box 7.1). There are some ten key noticeable trends. They are the main issues facing policy makers and the Government of PNG (GoPNG) generally in promoting decent and productive employment in the country. This part of the paper presents succinctly the past trends and projections in a number of several significant development issues and challenges such as population growth, labour force participation, economic growth, skills mismatch and gender imbalances. However, an accurate picture of the PNG labour market trends and development is impossible to establish largely due to the readily unavailability of relevant information. Numerous development reports (for example, ILO, 2008; ADB, 2010; Imbun, 2011) and academic papers (Booth, 2009; Imbun, 2015b) acknowledge the profound disadvantage the country has in terms of lack of up-to-date LMI to assist development endeavours and for business and public consumption. What is presented here may also be seen as inhibiting development of formal labour markets and decent and productive employment in PNG. As the 21

development of appropriate and effective policy and project intervention, require a solid understanding of current labour market issues and trends, this part of the paper also identifies gaps in statistical information on the labour market in PNG. Box 7.1. The PNG labour market is characterised by several salient trends  High levels of population growth  Low labour force participation  High level of public sector employment  Dominant informal sector  High level of youth unemployment  Huge skills mismatch  Robust economic growth  High levels of poverty  Entrenched gender inequality  High prevalence of child labour  Acute absence of labour market information  Long levels of wages  High prevalence of HIV/AIDS  Increasing number of expatriates  Obsolete labour market legislations

7.2 High Population Growth One obvious labour market trend is the ever increasing growth in PNG’s population. The growth rate of 2.9% per annum since 2000 is one of the highest in the Pacific Region (ILO, 2008). The PNG National Statistics Office (NSO, 2014) acknowledges the country’s population to be of 7,257, 324 as of July, 2011, an increase of 2,084,538 persons since the 2000 Census (see Table 7.1). The country has a relatively young demography with 39.6% of its population aged 14 and under and 58% aged 15-64. PNG’s median age is at 21.8 years (WB, 2012:11). The economically active population is estimated to be close to 3 million or 46 % of the total population (PNG Tourism Investment Guide, 2012). Consequent of the rapid population growth there is a large and expanding ‘youth bulge’ in the country. Most of the 22

investment in the country had so far been capital intensive that large number of youths missing out on the limited job opportunities the economy presents, particularly by the extractive industry (see below for further elaboration). However, the youth bulge is yet to stay as the population keeps on expanding and therefore presents the biggest challenge to the GoPNG in its efforts of creating jobs for the country (ILO, 2013). Table 7.1. Provinces of PNG with capital, area, demographic and regional locality details. No.

Province

Capital

Area

Population

Populatio

(km²)

(2011

n Density

census)

(pop

Region

km²) 1

N. Solomons

Arawa

9,384

249,358

15.18

Islands

2

Central

Port

29,998

269,756

6.21

Southern

Moresby 3

Simbu

Kundiawa

6,112

376,473

42.42

Highlands

4

E. Highlands

Goroka

11,157

579,825

38.35

Highlands

5

ENB

Kokopo

15,274

328,369

14.20

Islands

6

East Sepik

Wewak

43,426

450,530

7.98

Momase

7

Enga

Wabag

11,704

432,045

22.60

Highlands

8

Gulf

Kerema

34,472

158,194

3.04

Southern

9

Hela

Tari

10,498

249,449

17.71

Highlands

10

Jiwaka

Minj

4,798

343,987

38.68

Highlands

11

Madang

Madang

28,886

493,906

12.49

Momase

12

Manus

Lorengau

2,000

50,231

20.76

Islands

13

Milne Bay

Alotau

14,345

276,512

14.93

Southern

14

Morobe

Lae

33,705

674,810

15.56

Momase

15

NCD

P.Moresb

240

364,125

1051.95

Southern

y 16

New Ireland

Kavieng

9,557

194,067

12.31

Islands

17

Oro

Popondett

22,735

186,309

5.82

Southern

a 18

Sandaun

Vanimo

35,820

248,411

5.12

Momase

19

S. Highlands

Mendi

15,089

510,245

23.83

Highlands

20

Fly River

Daru

98,189

201,351

1.53

Southern

23

21

W. Highlands

Mt Hagen

4,299

362,850

59.12

Highlands

22

WNB

Kimbe

20,387

264,264

8.80

Islands

Source: Wikkipedia, 2015.

Table 7.1 provides, amongst others, population density of provinces as per number of persons per square kilometres. Generally, the Highland provinces have high population density but care should be taken into consideration when reading the figures. As other geographical factors such as arable land, mountains and swamps should provide more information to the level of population in a province. However, what is obvious is the implication population density has on the provision of facilities such as schools and health centres as well as the provision of economic services such as banking and essential commodities (NRI, 2010). In terms of a regional perspective to the population, the Islands Region had the highest growth rate (3.7% pa), followed by Highlands (3.4%), Southern (3.0% pa) and Momase (2.4% pa). If these rates are real and sustained, the Islands population will double in 19 years, the Momase population in 29 years and the PNG population in 25 years. The HIV/AIDS epidemic may slow these growth rates by reducing the number of child-bearing women and fertility in general, but it is not predicted to cause a reduction in the total population (Allen, 2014; Allen, Bourke and Gibson, 2015).

7.3. Low Labour Force Participation Low labour force participation is another worrying labour market trend for the country. Unfortunately, recent statistics are not readily available. But the Office of Higher Education (OHE) and Department of National Planning (DNP) 2010 Survey of National Labour Market Demand (NLMD) acknowledged the twenty years of labour force participation in wage employment in all sectors as evidenced in the three census being 1980, 1990 and 2000 (see Table 7.2). But again the statistics are too old to relate changing trends to current context. But in all the censuses, the age of 10 and over was taken as the economically active group. There was a decline of 2% in labour force participation rate between 1990 and 2000. But according to ILO (2008), in 2005, the labour force participation rate was 73% for women and 75% for men. Unemployment was recorded a low of 2.6 % in 2000 compared to other years. Male unemployment was higher (4.3%) than female (1.3%). Subsistence employment was an 24

integral part of the labour force as recorded at 78% between 1990 and 2000. Despite the unavailability of current labour market figures, a lot of these figures and trends have either increased or remained in the case of subsistence domination of employment for bulk of the country’s population and an unemployment figure of 6%. Table 7.2. PNG citizen population labour force rate, 1980, 1990 and 2000 census Citizen Population

2000

1990

1980

of Total

67.5

68.8

63.8

Male

68.4

76.7

65.5

Female

66.7

60.1

62.0

Total

2.6

7.7

2.9

Male

4.3

9.1

3.9

Female

1.3

5.9

1.7

Subsistence employment (% of employed Total

67.4

37.8

43.0

population)

Male

60.8

34.8

35.4

Female

74.3

41.9

51.5

employment Total

10.4

14.7

15.1

Male

15.2

20.0

24.8

Female

5.3

6.2

4.1

Main activity studying (% of population not in Total

26.4

44.3

32.2

the labour force)

Male

29.8

65.4

39.5

Female

22.9

30

24.8

Labour

force

participation

ate

(%

population aged 10 years over)

Unemployment rate (% of labour force)

Wage

job

employment

population)

(%

Main activity housework (% of population not Total

29.4

15.8

in the labour force)

Male

20.0

1.0

Female

38.9

30.5

Source: OHE & DNP&M, 2010, citing NSO, National Census, 2000, p. 20

7.4. High Level of Public Sector Employment Further, another obvious trend of the PNG labour market is the increasing share of formal employment concentrated in the public sector. Despite being the tiny share of the labour 25

force, arguably this sector provides wages that may not commensurate with worker productivity (Imbun, 2006). It is often argued that the job security granted to public sector jobs and wages generally set at ‘unjustifiable’ rates have a ‘crowding out’ effect on the private sector by raising private sector wages (ILO, 2008). The OHE and DNP & M (2010a) study of positions in the formal sector found the service sector (combined of Gov’t admin & defence, health, etc.) to be generally employing more workers than the other sectors (see Table 7.3). It therefore continues to be the dominant employers. Table 7.3. Positions in industries during the period of survey in 2010 Total Industry Group

Occupied

Vacant

No

%

No.

%

No.

%.

1

Agri, forestry & fishing

105,863

21

105,752

21

111

0

2

Mining, gas & petroleum

13,978

3

13,956

3

22

0

3

Manufacturing

43,073

9

42,977

9

96

0

4

Electricity, gas & water

7,709

2

6,959

1

750

0

5

Construction

35,655

7

35,620

7

35

0

6

Wholesale

16,248

3

15,789

3

495

0

7

Retail

47,994

10

47,874

10

120

0

8

Accommodation

& 18,854

4

18,703

4

151

0

27,621

6

27,591

6

30

0

2

9,873

2

4

0

2

9,262

2

197

0

3

16,723

3

491

0

restaurants 9

Transport & storage

10

Communication & related 9,877 services

11

Finance & insurance

12

Property

&

9,459

business 17,214

services 13

Gov’t admin & defence

50,685

10

37,734

8

12,950

3

14

Education

58,621

12

46,895

9

11,726

2

15

Health & communication 16,420

3

15,054

3

1,366

0

1

5,513

1

197

0

103

0

services 16

Cultural

&

recreational 5,710

services 17

Personal & other services

6,364

1

6,261

1

99

Not stated/applicable

5,543

1

5,543

1

26

All industry groups

496,923

100

468,079

94

28,844

6

Source: OHE & DNP & M, 2010a, citing NSO, National Census, 2000, p. 23

The imperative to restructure the public sector to rid of inefficiency in PNG is obvious as commentators (Huges, 2003; AusAID, 2004) had claimed that the fraction of human capital deployed in the public sector is not contributing to meaningful growth therefore becoming a strain on the economy. However, in PNG, the public service sector ironically is seen as the main catalyst of growth for the future (Imbun, 2006).

7.5. Dominant Informal Sector Further, if there is an increasing trend of some 15% privileged minority of labour force employed in the formal sector, obviously bulk of the remaining dominant 85% of the population would find refuge somewhere and obvious that is the – informal sector. Its inherent characteristics are not hard to ignore in PNG (view Box 7.2). This all stems from the PNG labour market being dualistic in nature. The duality is a well embedded segmentation between a relatively small, well-protected, inflexible formal sector and a large, unprotected, under-capitalised informal sector (Imbun, 2006). The educated and uneducated who could not find employment in the formal sector make their livelihoods in the informal sector. Box 7.2: Salient characteristics of informal sector in PNG  Overwhelmingly rural based but small striving urban sector  Minimally regulated by legal and administrative mechanisms  Variety of economic activities  Typically carried out in small units  Most informal units are not efficient  Labour force of informal sector is considered “openly unemployed” in formal sector  No limit to the number of people that can be absorbed  Distinction between formal and informal sector are not clear cut  Generally lack of interest from government  Usually absence of systematic training for value added jobs Source: Imbun, 2006: 56 27

7.6. High Levels of Youth Unemployment As hinted above, another trend of the PNG labour market is the ever increasing rate of youth unemployment. It is an acute issue in the country. Rapid population growth, queuing of the educated to access the limited jobs in the formal sector, and poor policy responses have made youth unemployment a very grave concern for the country. According to PNG Minimum Wages Board (MWB) (2008), unemployment nationally was 4% of the formal labour force. The youth unemployment rate in major urban centres such as Port Moresby and Lae was estimated at 5.3%. Unemployment rates among young men and women are also said to be about three times higher than for the general population (MWB, 2008:28). Of the estimated 80,000 school leavers each year, fewer than 10,000 enter the formal labour market, to compete for only 1,000 new job openings, leaving the rest to either engage in the surging informal sector or be absorbed into subsistence lives (ILO, 2008: 12). The ‘youth bulge’ is one of the most profound development challenges, having direct implications for the serious escalation of law and order problems (Imbun, 2015b:9). Because the issue of youth employment has become a national concern and national priority in PNG, there have been numerous GoPNG and donor interventions into the sector. The programs have been aimed at arresting this issue. That had been done through skilling the youth via TVET in the last two decades. For example, ADB used to support the TVET sector through the Employment Oriented Skills Development Project, which intended to strength the non-formal employment sector. Australian Aid, a significant development partner in the country, had supported the sector with various training programs such as establishing the PNG Australia Pacific Technical College (APTC) campus in Port Moresby with the aim of training PNG youth with skills marketable internally, and externally, such as Australia. Australian Aid also has worked in collaboration with the PNG DoE in support of existing TVET institutions and other ongoing programs such as the Universal Basic Education (UBE). Similarly, in a concerted effort to respond to the youth unemployment plight, the EU is implementing two flagship projects, HRDP 1 and HRDP 2 in the same sector policy support programme (SPSP). The latter (HRDP 2) particularly is targeted at focusing on lower secondary TVET with the aim of resourcing them with relevant technical skills which could be demanded by the private sectors in the target provinces. Additionally, there are others such as the World Bank’s ongoing youth employment project in Port Moresby and New Zealand 28

Aid (NZAID), the United Nations (UN) and Japan International Cooperation Agency (JICA) have supported some aspects of TVET and DoE generally in its pursuit of equipping the country’s youth with the necessary education and skills (HRDP 2, Programme Estimate 1, 2015).

7.7. Huge Skills Mismatch Next, the PNG labour market is also characterised as having a huge skill mismatch. Skills mismatch is an increasing trend which has become a high-priority policy concern. The flood of largely low skilled labour in the labour market is a huge concern for employers who either use expensive expatriate labour or invest in human resources to meet the gap. Development partners, such as ADB (ADB, 2007:9) have labelled the skills gap as ‘PNG faces a paradox’. It is a paradox because there is substantial supply of labour from TVET and other educational institutions to the labour market of which it exceeds the availability of jobs. However, ironically the employers and industry constantly complain of lack of skills and thus in many cases chose to employ expatriates to fill in many jobs such as automotive mechanics, hotel assistants and technician level accountants. The paradox is largely an issue of experience and expertise as many Papua New Guineans also lack the softer skills of punctuality and general discipline. Many employers’ expectations are high that they would prefer people performing to required standards that graduates from TVET institutions sometimes find it hard to meet that they become unemployable. The issue is complex as training institutions are unable to fully supply the needed labour because of their own inherent deficiencies of funding and other resource capacities, such as competent instructors (AusAID, 2011).

7.8. Robust Economic Growth Of all the negativities, if there is one labour market trend PNG has been positively associated for some time is the continuous economic growth. The country has enjoyed uninterrupted and rapid economic growth for more than a decade. This has been due to unprecedented expanding of the enclave extractive industry which is responsible for a dominant 77% of exports (UNDP, 2014; ADB, 2015). The rest is shared between agriculture and forestry. Other sectors such as retail and hospitality enterprises are emerging. Table 6.4 puts the country’s economic profile into perspective. In the early 1990s, there was a decline in income per capital but it is at record levels now. The forecast is that economic growth is predicted to 29

grow strongly for the next few years (2013-2018). For example, it will be aided by the construction of new liquefied natural gas (LNG) project headed by French Company TOTAL. It is expected to begin in 2016. This is after PNG’s first successful construction and operation of the US$ 18 Billion LNG Project which started exporting in 2014. Table 7.4. Projection of PNG’s economic indicators between 2012 and 2018 Principal Economic Indicators Real GDP Growth (%) Nomining GDP Growth (%) Inflation (year average) (%)

2012 Actual

2013. Estimate

2014 Projection

2015 Projection

2016 Projection

2017 Projection

2018 Projection

8.0

5.1

6.2

21.2

2.7

3.4

3.3

9.1

4.7

1.6

4.3

3.6

4.1

4.1

2.2

4.0

6.5

5.0

5.0

5.0

5.0

6.75 1,668

6.25 1,428

6.25 1,359

6.25 1,368

6.25 1,391

6.25 1,395

6.25 1,409

7,344

7,213

7,216

7,298

7,382

7,349

100

79

76

72

70

70

15,520

15,017

15,255

15,461

15,636

15,792

Interest Rates (Kina Rates Facility) 7,959 Gold price (US $ per ounce) Oil price 105 (US $ per barrel) 17,542 Nickel (US $ per tonne)

Source: Price Water House Coppers, 2014, citing Department of Treasury, 2014.

The 2014 Budget was PNG’s largest ever at K15 billion. According to Table 7.4, economic growth was projected at 7.2% in 2014 an up from 2013 estimate of 5.1%. Similar predications were made for the subsequent years. There were favourable gains in budget deficit servicing at 6.1% in 2014. It was reduced to 5.9% in the 2014 Budget. Similar improvements were made in Budget’s debt to GDP ratio of 35% in 2014, reducing to below 30% over the forward 30

estimates. However, inflation figures have varied. The Budget is expected to return to surplus from 2018. Generally, economic growth had been positive for the country. What did it mean for the buoyant years? There have been several impacts felt in the country. For the ten-year period (2002-2012), government spending approximately doubled after inflation, from K5.1 billion to K10.5 billion. There had been corresponding positive impact in education and health spending. For example, there had been operational funding to all schools increased from K56 million in 2004 to K735 million in 2013. Similarly, health sector funding had increased from K18 to K93 million over the same period (Howes, et al., 2014). There had been also corresponding developments in other facets of service deliver such as deregulation of the telecommunications, aviation and power utilities sectors. The country has shielded from the recent global financial crisis unabated (Filer et al., 2014; WB, 2012). These developments have paved the way for growth in formal employment and creating shortages of skilled labour (UNDP, 2014). However, inherent issues of law and order are still begetting the country. There also still the lingering question remains as to whether our nation’s booming mineral wealth has translated into services for ordinary people (NRI, 2010).

7.9. High Levels of Poverty One stark labour market trend in PNG is the ever increasing rate of poverty level in the population. Level of poverty is one of the most significant indicators of economic and social development for any country. The lower the level of poverty in a population would demonstrate relatively equitable spread of economic and social benefits a country generates. One fact for PNG is that poverty levels do not appear to have changed significantly despite the country experiencing unprecedented economic growth of almost 6.5% since 1996. Of all the stark statistics concerning poverty levels, Banks (in UNDP, 2014) acknowledges the poor levels’ of human development to be the most telling as evidenced by the Human Development Index (HDI) of 0.491 (see Table 7.5). On the United Nations (UN)’s HDI, PNG is ranked among the least developed countries, with 40% of its population living below the international poverty line of USD1 a day (IMF, 2012; UNDP, 2014: iii). Table 5.5 provides statistics on a wide array of development indicators. In 2013, PNG‘s HDI placed the country in the ‘low human development’ category ranked 157 out of 187 countries. Despite the low ranking, there was improvement since the 1980s when the country was ranked 110 out of 124 countries. Other HDI components such as health and education spending reflected in Gross National 31

Income (GNI) per capita of $2,453 is relatively high for low HDI status countries. Basing on this PNG would be ranked 15 places lower. This would indicate the placement of the country outside of economic growth of which development outcomes had been poor. It would be an insurmountable a challenge for the country to meet any of the universal Millennium Development Goals (MDGs) by 2015 (UNDP, 2014; ADB, 2013:3). Table 7.5. Basic context and human development status Papua New Guinea│Basic Context and Human Development Status 461,937² (2011 NFA) Land Area 3.1 million KM2 Marine Jurisdiction 7.254 million (2011 Census) Population 3.15 (2011 Census) Population Growth Rate Lower Middle Income (2013 World Bank) Income Level 0.491 (2013), PNG was ranked 176 out of 178 Human Development Index countries (2014 HDR) 15.29 billion (2013 World Bank) GDP (Current USD$) 5.1% (GoPNG Budget 2014) GDP Growth Rate 2013 Structure of the Economy (Sectoral Primary Industry (31%), Extractive Industries (18%), Construction (16%), Manufacturing (8%), Composition of GDP) Services (27%) (ADB 2012) Gold:40%, Copper:11%, Crude Petroleum 15%, Composition of Exports Nickel/Cobalt: 4% (BPNG 2014) USD$ 2,852 for 2013 (UNDP 2014) GDP/Capita 39.9% (HIES, 2009) Poverty (Basic Needs Poverty) 61.6% (HIES, 2009) Employment (formal sector) 58/1,000 (2006 DHS also cited in 2011 Census) Infant Mortality Rate 733/100,000 (2006 DHS also cited in 2011 Maternal Mortality Rate Census) 0.7% (2013 UNAIDS) HIV/AIDS Prevalence Rate 0.617-ranked 133 out of 149 (2014 HDR) Gender Inequality Index 3 (increased from 1 in 2012 general elections) Women in Parliament 50.9% (net) (HIES/2009/10) Primary enrolment rate 28.1% (net) (HIES/2009/10) Secondary enrolment rate 25.8% (net) (HIES/2009/10) Access to portable water supply 79% Forest cover 15% due to logging and agriculture purposes Forest cover change (2000 SNC Report) Source: ADB, 2013:3.

7.10. Entrenched Gender Inequity Despite increased participation in school enrolment and labour force, women remain disadvantaged in the formal sector in PNG. This continues to be an increasing concern for the 32

GoPNG as bulk of the economic activity of women is in the informal sector. According to the HDI’s Gender Inequality Index (GII), PNG’s gender-based inequalities in reproductive health, employment, and economic activities are well entrenched and farfetched. In the context of empowerment, only three (3) women were elected to Parliament in the 2012 general elections. Attainment of secondary and higher education by women stand at 6.8% compared to men accounting for 14.6%. For labour market participation, women accounted for 70.6% compared to 74.1 for men (see Table 7.5 above). For every 100,000 live births, 230 women die from pregnancy related causes; and the adolescent fertility rate is 62 births per 1000 live births. In comparative perspective, PNG has a GII value of 0.617, ranking it 134 out of 148 countries in the 2012 index (UNDP, 2013). However, GoPNG with the support of mainstream donors such as Australian Aid and EU have recently supported equal participation of women in programmes and activities concerning national development. Mainstream of gender as a cross-cutting issue and therefore a national development goal is becoming part and parcel of development programs in the country. Such initiatives and GoPNG’s own budgetary support into empowering women in its mainstream development activities continue to improve statistics on positive presentation of women in economic and social life. For example, according to Howes, et. al (2013: 172) women composition of workforce since the last decade has been transformed into having a formidable presence in the economy, particularly in the education and health sectors. In 2002, only 13% of primary school Head Teachers were being female. In 2012, it was 27%, more than double. In the health sector, the share of female clinic Officers in Charge rose between 2002 and 2012, but only from 36 to 41%. However, achieving gender equality in PNG is an insurmountable challenge for the country.

33

7.11. High Prevalence of Child Labour High prevalence of child labour is a distinguishing feature of the PNG labour market. ILO (2013)’s ground breaking study into child labour in PNG, particularly Port Moresby, claimed that the country was witnessing some of the worst forms of child labour, particularly in forced domestic service and in commercial sexual exploitation. The former entails increasing trend of children under the age between 5 and 16 engaged in selling items on streets, vending, chopping firewood for sale, moving furniture, loading and unloading boxes from containers, carrying heavy bags of food, scavenging for scrap metal and begging. The latter involves children being sexually exploited for commercial reasons, including working in bars and night clubs, brothels, and pornography, sometimes as a result of trafficking (see Table 7.6). These worst forms of child labour are going on despite PNG being signatory to some of ILO’s key statutes on child labour such as minimum age and worst forms of child labour. Table 7.6. Overview of children’s work by sector and activity Sector/Industry Agriculture Services

Categories of Worst Forms of Child Labour

Activity Working on tea, coffee, cocoa, copra, oil palm, and rubber plantations Domestic services Street work, vending, chopping firewood for sale, moving furniture, loading and unloading boxes from containers, carrying heavy bags of food, scavenging for scrap metal, begging Commercial sexual exploitation, including working in bars and night clubs, brothels, and pornography, sometimes as a result of trafficking

Forced domestic service

Source: US Department of Labour, 2015

There has been some progress made in addressing child labour but they are not adequate to make any impact on the magnitude of the worst forms of child labour in the country. The GoPNG and six provincial governments affirmed to set up Provincial Child Labour Committees to address child labour issues at the local level. In 2013 the Parliament enacted the People Smuggling and Trafficking in Persons Act. But the Act is yet to be enforced and it has been complicated by the country’s lack of having a comprehensive list of hazardous 34

occupations from which children are prohibited (US Department of Labour, 2015). Despite the existence of child laws in the country, their enforcement is weak combined with lack of compulsory education and traditional valuing of child labour in family chores also weighing into the complexity of the issue.

7.12. Acute Absence of Labour Market Information Fundamental to labour market participants making informed choices and politicians legislating appropriate policies is the lack of ready availability of appropriate LMI. Yet for PNG, the lack of up-to-date and reliable information on labour market trends and other information on development indicators such as infrastructure, utilities and resource allocations make it extremely hard for policy makers to effectively plan and deliver goods and services. The serious nature of the issue has been acknowledged numerous times, particularly by academics and development donors. For example, the ILO (2013:6) acknowledges that ‘PNG’s capacity to effectively and systematically analyse, monitor and maintain labour market information remains limited and is a significant barrier to evidence-based policy development’ and for participants. The issue was no different three decades ago. Fraser (1998:4) alleged that the GoPNG was operating with only a fragmented and anecdotal knowledge of the supply side data (on employment, education and training) of the labour market. Even the demand side data (on wage earnings and other working conditions, investment and economic growth) of the labour market may probably be even less complete, therefore leaving significant labour market policy making to benefit from guess work, at best (Imbun, 2006). However, the lack of readily available LMI issue is compounded by the application of formal labour

market

concepts

to

LMI

such

as

a

job,

employment,

unemployment,

underemployment, wage, earnings etc., which are difficult to apply in the PNG context, given the prevalence of informal employment (Imbun, 2006). While the NSO has been unable to effectively fulfil its responsibility due to complex set of issues such as resources and capacity availability. There is also a lack of coordination with key Departments such as Department of Labour and Industrial Relations (DLIR) which makes it difficult for the readily availability of comprehensive set of LMI to aid policy making. Often policy makers, researchers and others source employment and other LMI from a variety of sources such Bank of PNG economic updates and independent studies. This sometimes yields conflicting indicators of labour 35

market and employment trends. Despite the profound LMI constraints, this study and its findings reflect the obvious labour market activity in the provinces.

7.13. Low Level of Wages Wage issue is a hotly contested issue in the PNG labour market. There are two schools of thought. One views wages, particularly minimum wages, has not been high but in fact low. Another view reckons minimum wages are high for a developing country and therefore they needed to be line with what productivity warranted. Whatever, the case politically, PNG is one of few countries in the developing world where deliberate official intervention in the free workings of the labour market has become the norm (Imbun, 2015b). While the triennial MWB sittings have been disrupted in the past two decades, the Board has played a decisive role in determining minimum wages for bulk of the working population. Table 7.7 shows urban and rural minimum wage rates from 1972 to 2008 in nominal and real terms. The wage kept its real value within plus or minus 5% across the 1980s, but then fell sharply in real terms after the removal of indexation in 1992. The PNG Trade Union Congress (PNGTUC), in a well-researched submission, advocated in the 2008 MWB hearings that the wage needed to be K85 per week in order to restore the purchasing power provided in the 1980s before the cessation of indexation (PNGTUC, 2008:22). Table 7.7. Nominal and real minimum wage levels in urban and rural sectors for labourers from 1972-2008 Year

Nominal minimum wages weekly

Real minimum wages weekly

Kina per week Urban 1972 1974 1975 1976 1977 1980 1983 1986 1989 1992 2000

11.50 20.00 25.80 27.18 28.03 34.84 41.51 47.47 52.30 22.96 72.42

Unskilled rural 5.90 8.00 8.90 9.43 10.23 13.00 15.48 17.70 19.50 17.22 26.30

Urban 10.20 18.80 22.10 23.70 26.90 26.50 25.80 25.80 26.20 21.00 26.80

36

Unskilled rural 7.68 5.44 5.52 5.38 10.80 9.90 9.60 9.60 9.80 7.30 12.40

2008

91.60

30.20

44.50

22.30

Source: Imbun, 2015b: 7

Imbun (2014) has argued that the level of minimum wages has not been high but in fact low. Apart from the prescribed rates being public knowledge, minimum going rates in the labour market are unknown, although many employers allegedly pay workers less. The abandonment of Consumer Price Indexed (CPI) minimum wage commencing with the 1992 MWB determination allowed for wage negotiations between management and workers, based on capacity to pay and industry profitability. Failure to take up this option has made the relationship between management and unions/workers less transparent at the workplaces. The economic hardships faced by minimum wage earners in PNG have in recent years prompted politicians, urban administrators and trade union leaders to step in and tender their support. In 2011, The Prime Minister, Peter O’Neill, directed the DLIR to review the 2008 wage determination, stating ‘the current rate is still too low and insult to our people’ (Post Courier, 18 August 2011: 3). As for the jobs in the non-minimum wage skilled job category, wage issues are also serious issues in a high cost country. It is particularly an acute issue when there is a significant presence of expatriates in enterprises. The unprecedented economic growth over the last decade and culminating with the LNG development has seen an influx of expatriates into the country. As far as employment of expatriates is concerned, expatriates occupy the most senior management positions and most specialized technical positions in most enterprises. For example, in the extractive industry, they may account for less than 10 percent of the total workforce but more than 50 percent of the operator’s total labour costs (Johnson, 2012). This itself constitutes a strong economic incentive for companies to implement their training and localization plans if they can find suitably qualified citizens. But localisation process is generally slow. As a result of expatriate employment and the GoPNG’s labour market policy of dual pay allows for a separate wage structure for PNG national based on living standard calculation. Nationals doing the same jobs as expatriates, particularly in higher education and resource extractive sector, have continued to voice their frustration at Governments for adhering to this discriminatory policy. The lack of skilled human resources is normally given as justification for maintaining this divisive policy (Imbun, 2009).

37

The economic hardships faced by minimum wage earners in PNG have in recent years prompted politicians, urban administrators and trade union leaders to step in and tender their support. In 2011, The Prime Minister, Peter O’Neill, directed the DLIR to review the 2008 wage determination, stating ‘the current rate is still too low and insult to our people’ (Post Courier, 18 August 2011: 3). The DLIR was given 100 days by the National Executive Council (NEC) to come up with a new policy aimed at increasing the prevailing rate of K2.29 per hour (or K91.60 per week) to K3.50 (p. 12). In 2014 the long-awaited MWB decision was endorsed by Cabinet with an increase in the hourly rate by almost 40%, to K3.20 (USD1.28), with further annual increases, to K3.36 (USD1.34) in 2015 and K3.50 (USD1.40) in 2016. The determination was expected to apply to 80,000 workers, although it continued the tradition of authorising half the minimum rate for agricultural workers in receipt of specified benefits, and 75% of the minimum where employers were deemed ‘financially incapable of paying’ (Mera, 2014).

7.14. High Prevalence of HIV/AIDS One of the most debilitating issues affecting the labour market in PNG is high prevalence of HIV/AIDs in the country. It has become a serious social and labour problem where the pandemic is impacting negatively on employment, particularly in small scale enterprises and the informal sector, and on the overall labour supply. According to UNAIDs (2013), the country has HIV/AIDS prevalence rate of 0.7% of the total population, which is one of the highest in the Asia Pacific Region (see Table 5.7). According to 2014 projections estimate, some 30,000 people were HIV/AIDS positive in 2013. Some provinces such as Enga, Western Highlands, and Jiwaka provinces in the Highlands and the NCD all reported more than 1% HIV prevalence amongst pregnant women attending an antenatal clinic (UNDP, 2014: 46). The primary cause of the widespread of the HIV epidemic in the country is primarily caused by heterosexual transmission. This has been caused by a high rate of sexually transmitted infections (STIs) such as gonorrhoea and syphilis. The types of HIV transmission consist of heterosexual intercourse (93%), mother to child transmission (4%), body piercing and homosexual contact (2%). The data shows of a predominantly heterosexual transmission (UNAIDS, 2012). However, there is considerable under-reporting of cases due to a lack of testing facilities and fears surrounding testing. 38

The GoPNG with the support of development partners such as Australian Aid, European Union, World Bank, World Health Organisation and NGOs have made considerable effort in tackling the HIV/AIDS pandemic. However, there is still more yet to done. As there is an inherent fear being that the productive potential of youth can be diminished because of the high concentration of affiliation rate amongst the 15-34 age category. There is an increasing trend of young children becoming orphans and therefore many are forced to leave school and work in poor conditions to supplement the household’s diminishing income. This is due to rising parental death rates as a result of HIV/AIDS and therefore this had led to the reduction of transfer of skills from parents to youth. In many cases, this has led to the loss of traditional skills. Obviously, as longs as the dangerous combination of widespread commercial sex and multiple non-commercial partners on the rise, the real fear of an ever declining population is here to stay. The GoPNG and development partners have a challenging task ahead as they work hard to combat the pandemic.

7.15. Increasing Number of Expatriate Employment Another noticeable feature of the PNG labour market trends is the increasing number of expatriate employment in jobs in the country. Employment of Non-Citizens Act, 2007 (revised) – in conjunction with Employment of Non-Citizen Regulation, 2008 principally regulates the employment of foreign workers in PNG. The primary purpose of this Act is to ‘provide a balance between the needs of the economy for foreign labour and the aspirations of Papua New Guineans for decent work’ (DLIR, 2009:1). However, unemployment being a huge problem presents a dilemma for the Government. The issue is extensively debated in Parliament with regard to poor compliance with its and, in particular, the pace of localisation (Imbun, 2006; Imbun and Ngangan, 2001). For example, the anti-Asian riots of 2009 in the country culminating of complex issues of mainly Asian influx, employment, and business ownership had led to the Parliament setting up a Commission of Inquiry to get to the root causes of this hatred. Extend of the issue was magnified when the Philippines Ambassador admitted to the Parliamentary Committee investigating the anti-Asian riots that some 16,000 illegal Filipinos were in PNG (Kolo, 2009). They are a fraction of the bulging illegal Chinese and to some extend Malaysian Chinese scattered in PNG towns and villages (Imbun, 2014a). Recent data on expatriate employment are not available. For some guide, previous Census information can be relied on to understand the trends of expatriate employment. Table 7.8 39

shows Non-citizen population indicated in the 2000 census report. There is a general perception that expatriate employment, particularly of Asian origin, have tripled or multiplied with the resource boom and expansion of service sectors in the country. This also includes illegal entries (OHE and DNP&M, 2010b). Table 7.8. Non-citizen population trend since 1980

Non-citizen population

2000

1990

1980

Total

19,235

25,621

32,670

Male Female

11,975 7,260

14,716 10,905

18,595 14,075

Aged 0-4 years

Total Male Female

4770 1011 528

7635 1688 1130

9997 2204 1488

Aged 0-14 years

Total Male Female

4770 3134 1636

7635 4573 3062

9997 5965 4029

Aged 18 years and over

Total Male Female

13726 9013 4713

16971 10160 6811

22062 13166 8896

Aged 66 years and over

Total Male Female

442 291 152

410 246 164

425 254 171

Population

Source: Source: ADB, 2013:7.

The Government is in the process of undertaking necessary reviews in the employment of expatriate labour. It is also acutely mindful of the potential (adverse) implications the policy could have on the national labour force, particularly in regards to importation of cheap Asian labour (Montoya and Au, 2013:19). The dilemma is obviously stated in the GoPNG’s Medium Term Development Strategy. “The immigration of large numbers of people is both a significant and positive force in the economic, social and cultural development of PNG; yet it is also a cause of concern” (GoPNG, 2010:12). A similar sentiment is echoed in the Government’s Vision 2050 that acknowledges that “anti-foreign ownership sentiments are rising because of their dominance of business, which is creating an entrepreneurial gap between locals and immigrants” (GoPNG, 2007:25). The effective management of the entire 40

foreign labour migration system is a test for the Government in its attempt to gain economic development without jeopardizing the employment prospects of its own citizens.

7.16. Obsolete Labour Market Legislations A well-functioning labour market needs legislation regulating the relationships between employers and workers – for example, protecting workers from unfair labour practices and promoting a safe workplace environment. However, in PNG there are issues associated with regulation of employment. Most importantly, despite the comprehensive range of labour market legislations in the country (see Box 7.3), centring on core areas of labour market: employment, wages, trade unions, dispute settlement, tripartism, occupational health and safety, pensions, the public service and expatriate workers, most of them are obsolete. Generally the laws are not compliant with international labour standards and therefore compliance level is low (Lamotte, 2014). They require urgent review to reflect changing times, and above all meet ILO standards. For example, both the Employment Act, 1978 and the Industrial Relations Act, 1962 were largely influenced by Australian colonial administration. The PNG DLIR has worked with ILO for past ten years to come up with a replacement Act. Last year (2014), Employment Relations Bill, an amalgam of the two Acts; Employment Act 1978 and Industrial Relations Act 1962 was read in Parliament. It will go to second and third readings before the Bill becomes a law. Box 7.3. PNG labour market laws  Employment Act, 1978  Industrial Relations Act, 1963  Industrial Enterprises Act, 1963  Public Service Conciliation and Arbitration Act, 1971  Teaching Service Conciliation and Arbitration Act, 1974  Industrial Safety Health and Welfare Act, 1965  Non-Citizen Act, 1978  Occupational Health Safety Act, 1990  Workers’ Compensation Act, 1990  National Provident Fund Act, 1990

41

Source: Imbun, 2006

The seriously flawed legislative and administrative framework characterising the PNG labour market system largely affects effective enforcement of workplaces. Therefore, enforcement is generally weak and largely restricted to the formal sector, which comprises just one third or less of the labour force. The informal sector, despite its own Act, sees the weakest in enforcement and workers are most vulnerable. The obsoleteness of the laws also affect the effectiveness of trade unions, small employers tend to take advantage of this deficiency by underpaying and flaunting a lot of the requirements of proper maintaining employment relations at their workplaces. It is anticipated that some of these deficiencies will at least be rectified by the implementation of the new revised Employment Relations Act.

7.17. Conclusion Labour markets are essential for economic and social development as they facilitate the movement of labour to increasingly valuable uses. It is therefore little wonder that properly performing labour markets are an essential factor in development. In contrast, a poor functioning labour market can exist as an impediment to development, as it will prevent this process of allocation and re-allocation of labour according to where it can be most valuable. Given the utmost significance of labour markets, it is surprising to observe the general neglect by GoPNGs with regards to understanding and implementing appropriate policies to address labour market issues. In order to understand the PNG labour market this part of the study identified its key trends or characteristics. However, the poor labour market outcomes in PNG are a result of a complex set of factors. The salient labour market trends characterising the PNG labour market does demonstrate the areas for policy intervention and support to ensure it achieves its full potential. For example, it appears however that labour force participation and policy does play a significant part in determining these outcomes. If there was an analysis of each area of labour market participation across the six provinces of the HRDP 2 would suggest difficulties in most areas, including that relating to access to factors such as formal job opportunities, gender discrimination, skill mismatch and poverty. The inclusion of women in the labour force on the principle of equality with men is associated with positive effects on economic growth. Emphasis should be placed on removing barriers which prevent women entering the labour 42

market. However, PNG has a long way to go in addressing this deficiency in policy and implementation. The same could be said for almost all the other trends or characteristics as well such as child labour, informal economy, labour market legislations and HIV/AIDs. So there are inherent challenges present in the PNG labour market. For example, the informal sector needs to be systematically integrated into the mainstream economy. The systematic integration of all sectors of the economy through appropriate policies is critical. It should be based on acknowledgement of the significant role that urban and rural informal sectors play in sustaining excess labour and generating income and growth in each country. Similar suggestions could be made for the fifteen (15) key trends.

43

8. Demand and Supply for Labour in the Six Provinces This part of the study discusses the demand and supply for labour in the six provinces of NCD, Enga, Morobe, ENB, East Sepik and Eastern Highlands. It follows a framework of analysis for convenience and orderliness. It analyses the function of labour market with its idiosyncrasies in the demand for labour, supply of labour, trends, globalisation impact, government role and gender roles. They are discussed accordingly.

8.1. Demand and Supply of Labour Framework Analysis To get a better grasp of the provincial labour market of the six provinces requires a framework of analysis. Apart from the salient national labour market trend analysis in the previous chapter, a demand and supply of labour framework analysis is suitable to establish trends at the provincial levels. However, again the issue of reliable and relevant LMI pertaining to the provinces are in dire straits and therefore the best this part can do is to make generalisations. Labour market operates to achieve three ends. First, is the achievement of static efficiency – the effective matching of work. Second, is the achievement of dynamic efficiency – the effective use of labour as a factor of production to drive economic development. Finally, labour markets ensure the achievement of ‘social justice’ outcomes. The analysis of demand and supply of labour highlights both the static and dynamic aspects of labour market in the six provinces. Although not effectively articulated but implied in the analysis is highlighting of the emergence of several pertinent trends. They have policy implications and response which would depend on a province’s capacity and imperativeness to address them.

8.2. Demand for Labour in the Provinces The demand for labour in the six provinces or any province in PNG is determined by a multitude of factors. Increased business investment plays key a role in determining the demand for the labour, but so to do non-labour market specific effects and policies. These include, amongst others: the impacts of migration, the domestic investment environment, globalization, government’s role, labour force skills, and gender roles. It is worth discussing these factors in some details. 44

7.3. Trends in Migration and its Domestic Impact The out flow of labour through migration in the six provinces of NCD, Enga, Morobe, ENB, East Sepik and Eastern Highlands had created a demand for substitute labour in the provincial labour markets. The exodus of skilled and unskilled workers, particularly school levers and youth in four provinces of Enga, ENB, East Sepik and Eastern Highlands have left a vacuum in skill human resource supply. Statistics are not available but large numbers of skilled people do migrate out of their provinces. NCD and Morobe provinces mostly are the recipient provinces of the migration of this exodus of people. Retention of skilled labour in the provinces is an acute issue for many provinces, particularly those provinces with constrained labour markets like Hela and West Sepik in regard to its TVET skills. The provinces need to meet labour demand through availability of TVET upskilling of existing labour market institutions and shaping of appropriate retention policies. The creation of more labour market opportunities in the six provinces would be one of the major avenues to retain skilled labour so as prevalence of civil atmosphere. The issue of whether departing workers indeed are easily replaced with no discernible loss in output or rise in wages at home also need to be investigated.

8.4. Impact of the Provincial Investment Environment The impact of the provincial investment environment is crucial to the demand for labour. The social and economic policies differ between the six provinces however the combination of macroeconomic instability, weak and politicized financial system, poor local roads and electricity systems, high transport costs, and predatory (corrupt) local officials tend to have adverse impact on the business climate in many of the provinces. Moreover, for some provinces (particularly, Enga and Eastern Highlands and East Sepik) law and order represents a highly significant barrier to investment, whilst somewhat similarly in Morobe the rising law and order issues in the city is also a cause of concern. But those issues are manageable and could be effectively managed with effective policing and community support. That will ensure a conducive environment is created for business to invest and create labour demand for the provinces.

45

8.5. Globalisation Impact It is not yet apparent of the impact of globalization on the six provinces. No study exists of globalisation of the provinces. However, the six provinces have to varying degrees emerging labour markets, business policies, fiscal discipline and a host of other “free-up” policies to achieve greater competitiveness through attraction of investment

and enhancing

entrepreneurial activities. The effect on labour demand is difficult to discern. However, NCD and Morobe provinces have seen massive investment in recent years with expanding real estates and establishment of new companies. The LNG related investment and other investments of major PNG based investors such as Rimbunan Hijau in building of shopping malls and hotel developments have taken demand to the next level in Port Moresby. Similar, developments in Lae, Morobe province are also happening in terms of wharf, real estate, hotel, factories and other constructions due to unprecedented demand exerted on by the imposing extractive industry. Other immediate impacts include reduction of labour demanded in sectors, and no signs as yet of significant flows of inward investment as a result.

8.6. Government Role Government has an important role to play in determining labour demand, not only as policy setter around labour market legislation and on other issues that affect demand such as the domestic investment climate, but also in terms of its policies towards its own labour. The six provincial governments have similar but varying economic and investment policies targeted at business, particularly new investors. However, at the national level, these effects occur particularly through government policies towards the wages it pays (which as discussed previously can drive up the wages offered in the private sector), and the proportion of the population employs, which can ‘crowd out talent’ to the private sector. The overall impact of these policies can be a lack of private sector growth. Since the private sector is likely to be the source of economic growth in the six provinces in the long run, this can limit long-run demand for labour. Moreover, generally, despite concern by the provincial governments of the six provinces about persistent inefficiencies in the provincial public sectors and acute levels of unemployment, policy direction aimed at “big picture approach” at provincial level to tackling

46

this has not been readily forthcoming. This indicates that the impact of government through its own labour policies on national labour demand is likely to be of some significance.

8.7. Gender Roles In the six provinces, there are acute differences between males and females of their participations in the labour market. In the labour market analysis the gender roles mainly take the perspective of the role women play. There is slight although not substantial increase in labour force participation rates for women in Enga, Eastern Highlands, and East Sepik. Anecdotal evidence point to cultural factors, lack of opportunities and economic constraints as some of the reasons responsible for the poor participation of women in the respective labour markets. However, some of the provincial governments of the six provinces have observed the acute deficiency and implemented various affirmative action policies aimed at increasing labour market opportunities for women. Enga and ENB have explicit gender policies support the recruitment and support of women in their provincial public service. Table 8.1 showing factors shaping the external labour market Labour market supply 

Labour market demand 

Changing societal attitudes to work and education (for example, increased

Changes to the external business environment o

acceptance of female participation in the labour market, desire for work-life

for particular goods or service;

balance)

changes in consumer taste o



Increases in consumer demand

Economic conditions (regional, national

abroad)

and international) o

Level of unemployment

o

Interest rates, inflation and

(Cheaper) competition from



Changes in the internet business environment o

exchange rates and their impact

Changes in production or business processes and the

on the cost of living (for

organisation of work (for

example, rising numbers of

example, as a result of

families where both parents

technological investment or

work)

innovation) 47

o

Organisational restructuring

o

Mergers and acquisition (resulting in possible duplication of labour)





Changing demography o

For example, falling birth rates,

technologies 

the extent of workforce

example, shift from manufacturing to

associated changes to retirement

service sector) 

Migration (and the impact of 

movement of labour)

Changing skills requirement (for example, resulting from development and

Government policy – Both national and

diffusion of new technology) 

international (eg. European Union) o

Economic restructuring (for example, shift from manufacturing to service sector

international agreements on the 

Changes in the political context (for

gendering, life expectancy and

ages o

Changing communication and production

Regional, national and international

Employment regulation which

economic conditions – inflation, level of

affects the ways in which labour

unemployment and interest rates

can be employed o

Level and focus of investment in education and training

o

Industrial policy (for example, support provided to particular industry sectors)

o

Wider social policy (for example, level of social security and investment in regional regeneration)

It is clear that the labour market is shaped by a range of processes which can be both planned, such as government policy, or largely uncontrolled and unpredictable, such as shifting social attitudes. Table 8.1 (above) shows external factors which can also influence the supply and demand for labour in the labour market. It is important to note that some elements appear on both sides of the table stressing the reflexive relationship between the supply and demand for 48

labour. For example, if the government alters the supply of a particular ‘types’ of labour to the market through education and training policies, firms will change their demand strategy to accumulate, take advantage of or neutralise the impact of this changes supply. A clear example of this is in relation to the recent expansion of higher education in the United Kingdom and the ways in which employers have responded to the increased supply of graduates to the labour market.

8.8 Supply for Labour in the Six Provinces Total labour supply in the six provinces is determined by a vast number of factors. Private sector investment obviously plays a role in determining total labour supply, but beyond provincial labour market specific factors (such as those mentioned for ‘demand for labour’ above), other determinants also have influence. Some of the more important of these include population growth, rural-urban migration, international migration, human capital supplies, access to existing social and economic services, the characteristics of the private sector, and gender roles.

8.9 Population Growth Population growth determines the flow of new participants into the labour market. Present population growth trends in the six provinces for HRDP 2 implementation exert enormous strains on their labour markets given the relatively high number of new entrants. It makes the achievements of labour market activity more difficult as pressures to alleviate increasing unemployment are inflated by population pressures. All the six provinces have an average population growth of 3 % per annum. If the current trends continue the six provinces’ total population could be double in the subsequent two decades. One of the main objectives of the HRDP 2 is to facilitate access of improved lower secondary level vocational institutions to a vast number of post basic education students. For maximum benefit of the project impact, a high level of population demand and concentration is a must. The PNG NSO (2014) lists the total population of PNG in July 2011 as 7,257,324, an increase of 2,084,538 persons since the previous census in 2000, a growth rate of 2.9% per annum between 2000 and 2011. The capital of Port Moresby has the largest urban population, with 364,125 people. The second-largest city is the industry city of Lae with a population of 49

155,000 people. Other major urban cities (towns) are Mt Hagen, Rabaul and Goroka. Fewer than 15% of Papua New Guineans live in urban areas (City Population, 2015). The vast majority of the population live in rural communities based on subsistence farming supplemented by cash cropping and sometimes by tourism activities. The country has a relatively young demography with 39.6% of its population aged 14 and under and 58% aged 15-64. The economically active population is estimated to be close to 3 million or 46% of the total population (PNG Tourism Investment Guide, 2012). Creating jobs for its bulging younger population is the GoPNG’s biggest challenge (ILO, 2013). According to the 2011 Census, the 10 most populous provinces in order of ranking are: Morobe, Eastern Highlands, Southern Highlands, Madang, East Sepik, Enga, Simbu, Western Highlands, NCD, and ENB. Six of those (NCD, Enga, Morobe, ENB, East Sepik and Eastern Highlands) are the selected provinces for HRDP 2 implementation. While the rest are moderately populated to sparsely populated such as Gulf, Western, Sandaun and Manus. The overall population density is low, although pockets of overpopulation exist. The Highlands have 40% of the population. A considerable urban drift towards the main cities, particularly Port Moresby and Lae and other major centres has occurred in recent years. The substantial increase in population growth in the six provinces and PNG generally is caused by a myriad of factors. Some of them include: largely dependence on traditional fertility methods; substantial decline in mortality rates as a result of a significant improvement in health; and static out-migration (Imbun, 2006:23). What is also notable is the significant presence of youth population (aged under 30) which comprises two thirds. These increases are occurring despite the advent of the HIV/AIDS epidemic in the country.

8.10 Rural-urban Migration Rural-urban migration is another determiner of supply of labour in the provinces. Rural-urban migration has continued in most of six provinces and the country as a whole as well. It has become a huge challenge to find policy solutions for the country. In a month alone some 5,000 mainly youths (most of them school leavers) arrive in the main urban centres of PNG (Imbun, 2014a). The on-going social and ethnic conflicts amongst migrant communities in the country, particularly Port Moresby, Lae and Mt Hagen cities is partly a product of the ruralurban migration phenomena. The perceptions of plentiful of opportunities in the urban centres 50

often pull unsuspecting rural people in abundance, removing them from the subsistence economy and placing them in the urban labour force, where they simply add to the growing pool of unskilled workers. The issue of rural-urban has not been studied in detail in PNG and thus demands closer scrutiny. However, of the six HRDP 2 provinces, NCD and Morobe provinces have largely become a metropolis of migrant communities. Because of the expanding urbanisation coupled with large scale investment and concentration of businesses people from the rest of the country congregate into the two cities, many of them hoping to find employment. The urban centres of Rabaul, Wewak, Goroka and Wabag are becoming mini-metropolis for provincial migration and sprawling of squatter settlements are not hard to find, which is also a common picture in the two big cities (of Port Moresby and Lae). What is beckoning and hopefully the implementation of HRDP 2 would assist is in the skilling of the youth in order for them to become mobile with acquiring of necessary technically skills to market themselves in this expanding labour markets, whether in the cities or back in their provincial capitals.

8.11. International Migration The link between labour migration and development is obvious in an increasingly globalised world. The role of labour and remittance and the potential they have for economic and social development is increasingly acknowledged. Despite labour migration having the potential to serve as an engine of growth and development for all parties involved – host and source countries and the migrant workers themselves, PNG is a late comer to realise these benefits as Papua New Guineans have seldom migrated in any great numbers, particularly out of the country in search of jobs and living (Imbun, 2014b). This is unlike other Pacific Island Countries (PICs) in the region, such as Samoa, Tonga, Niue, Tokelau and Cook Islands, which have utilised emigration to metropolitan countries such as Australia and New Zealand as an avenue of migration. Samoa, Tonga, Niue, Tokelau and Cook Islands; Tonga and Samoa experience emigration rates of around 1.5% and remittances make up in excess of 50 % of Tonga’s GDP and around 20% of Samoa’s GDP; In Fiji, Republic of Marshal Islands and Federated States of Micronesia emigration rates are around 0.5% The main overseas employment opportunity for Tuvaluans and I-Kiribati is as seafarers (Voigt-Graf, 2008). While for PNG, international migration has been recent, 51

however remittance wise, it is not comparable to the massive inflows that the other smaller PICs experience of their citizens aboard. Yet a trickle of Papua New Guineans have sought jobs overseas, particularly in the Australian extractive industry with an estimated of some little over 1,000, including dependants (Filer, et. al, 2008). More recently the GoPNG has signed two memorandum of understanding (MOU) facilitating skill migration scheme involving other countries. Both are short term in nature. GoPNG signed a MoU under the Seasonal Employer Scheme Work Policy (SESWP) with New Zealand in 2010 (Imbun, 2014b).

Another similar MoU was signed under the Pacific Seasonal Worker Program

(PSWP) with Australia in 2011. Some PNG youths numbering few hundreds have already participated in the two programs but with the other PICs also participating, the number is not expected to rise as the opportunities are spread far and wide. But for the six provinces of HRDP 2, there is no clear sign of any of them having their people migrating internationally. A complex set of factors such as internal cultural barriers to mobility and lack of skills have been blamed for PNG for these provinces lagging behind in the internationalisation of their labour (AusAID, 2004, Imbun, 2006).

8.12. Human Capital Supplies The labour force promotes economic growth and development. Education represents an investment in human capital, with costs in the initial outlay followed by benefits. In the six provinces, investment in education varies according to emphasis placed determined by availability of capital and political leadership. Some provinces are well advanced in management of education provinces, including building of infrastructure and payment of tuition fees for its students in the provinces and outside of the provinces. For example, Enga, one of the six provinces for HRDP 2 leads the other five provinces and other provinces in the country in sustaining its ‘free education policy’ for its student population. Governor Ipatas for the last 16 years have managed to implement this policy and as a result Enga students make up a significant presence in the higher educational student population in universities and colleges in the country. At the University of PNG and University Technology, Enga students make up a significant portion of the entire student population respectively. For the period, some K400 million had been invested under this free education scheme.

52

However, generally household private household purchasing of education is low in many provinces, the governments continue to heavily take it as a social responsibility. Investment in primary school, secondary school and vocational education to fill skill deficiencies is obvious in the six provinces, including rest of the provinces in the country. Although in recent years, the GoPNGs have engaged in a relatively high public expenditure on education which had seen significant improvements in education attainment. For example completion rate of primary school has risen to 59% and generally accessed to education has improved in the past decade. There still remains a need for improvement in quality, efficiency and equity (Howes et al, 2014; UNDP, 2014). Some serious thoughts should be devoted to the extent to which formal education and training are being formed to enhance skill formation necessary for growth would be appropriate.

8.13. Access to Existing Social and Economic Services Access to existing social and economic services such as transport and health is essential for people to be able to participate in growth opportunities productively. Without such services people may not be able to reach sites of employment, or may not be fit enough to work productively in the job that they have. Whilst important however, accessibility to services varies between the six provinces. Public social services including education and health facilities are available to varying degrees and whilst the general trend has been for a greater proportion of six provinces’ populations to benefit from these services, many have been characterised by deteriorating conditions. Access to economic services also remains of concern for some provinces where stratified politics is entrenched for example in East Sepik. The transparent management of economic services through institution of stringent measures in the six provinces and generally for the country is a must to making accessibility of economic services to the entire population.

8.14. Private Sector Development The nature of private sector development can have an impact on the quality of labour supplied. In PNG there is some discussion over whether the type of private sector development will require workers to be innovative and entrepreneurial, or fail to build these skills in them and even strip them of them, if the work is particularly monotonous (e.g. see 53

ADB 2005). The nature of private sector development varies amongst the six provinces, however there is scope for generalization as they do not really promote entrepreneurship to flourish. This is because apart from the national private sector development institutions such as the Agriculture Development Bank and PNG Women in Business Organisation, provincial institutions likewise advocating for private sector is generally lacking in the six provinces. However, NCD and Morobe and to some extend ENB provinces are well supported by their Chamber of Commerce and industry enterprises which have also national relevance, such as PNG Manufactures Council situated in Port Moresby. What is obvious of the six provinces is that there is unparalleled private sector development between them. The NCD and Morobe provinces tend to standout in hosting a lot of the country’s business activities.

This largely results of their top national-city billings and

separation of activities between them. NCD is the government and commercial hub of PNG and Lae in Morobe is the port city and also the gate way to the highlands, the most populous part of the country. Both cities also account for 85% of the business and trade of the country. Rest of the six provinces such as ENB, Enga and East Sepik do host significant resource extraction projects such as Porgera and agricultural developments, such as oil palm projects in East Sepik, but they are not that many in export out and employment numbers to provide any real challenge to NCD and Morobe provinces.

8.15. Gender Responsibilities The key area of concern in this case, for the six provinces, and generally for PNG, is generally the low participation of female in the formal labour market. It is slowly increasing for some provinces (i.e. NCD, Morobe and ENB) but its bulk of the economic activity of females is located in the informal sector. There has not been any major study of the determinants of female labour force participation in PNG, nor any of the PICs (Imbun, 2006). Whether there would be an increase in the female labour force participation is an important question for future policy making, as increases either present more new entrants to be effectively absorbed (the likely point of view if economic development stalls) or an increase in productive power (the perspective that would result from harnessing this labour supply to propel development). Opportunities for female work in tradable areas could be essential for structural adjustment, both agriculture and manufacturing in the six provinces. 54

8.16. Conclusion As discussed, there is a multitude of factors that determine the demand and supply of labour in the six provinces. The labour markets in the six provinces aim to achieve static efficiency, dynamic efficiency and social justice. Because of each province’s unique economic base and other salient factors such as population and HRD policies, labour market performance varies accordingly. For demand to be sustained in the six provinces, the domestic environment has to be conducive. But amongst the provinces sustaining labour demand varies, acutely noticeably in Enga and Eastern Highlands where tribal issues are sometimes a problem. Government commitment to providing conducive environment also varies between provinces. There is a huge gender imbalance in employment and human capital formation activities in the provinces. Some provinces such as Enga and NCD are making in-roads to rectifying the issue. Generally, there is a mismatch of supply of abundant unskilled labour and demand for skilled labour in the six provinces coupled with a lot of challenges, macro-economic management, public restructuring and a host of others which make management of labour market issues even harder. On the other hand, as per the supply of labour, most it is under-skilled and under-supply of skilled labour. Population growth in the six provinces varies with relatively substantial growth in NCD and Morobe provinces in contrast to slight increase in East Sepik and ENB provinces which is causing unemployment problems in the respective labour markets. While rural-urban migration is becoming a fact of life for most of the six provinces, it is an exception for NCD and Morobe where labour market opportunities are arguably more available than for bulk of the migrants who are starved of such opportunities in the rural areas. International migration has not had any significant impact yet in the six provinces and the country as a whole. However, the potential is there as it could be used as a ‘relieving valve’ for the most populous provinces where opportunities are scare. Access to human capital formation varies amongst provinces and the same for other social and economic services which contribute to the size and quality of labour supplied. Constraints are more obvious in the bigger provinces such as NCD and Morobe. The policy implications are clear. That is the six provinces should have labour market policies directed towards achieving three ends - static efficiency - the effective matching of workers to 55

jobs appropriate to their skills; dynamic efficiency - the effective use of labour as a factor of production to drive economic development; and the achievement and maintenance of ‘socially just’ outcomes. In practice, none of these three labour market outcomes are close to achievement in the six provinces.

56

9. Analysis of Skills Gap in the Six Provinces This part of the study presents the analysis resulting from the LMNA field missions carried out in the six provinces namely, NCD, Enga, Morobe, ENB, East Sepik and Eastern Highlands. The first part of this section describes the major features of the current labour market conditions in the provinces. The subsequent sections explain the vocational skills supply and demand in the current framework of analysis, as it pertains skills gap and potential demands for females in the study of those trades.

9.1 Understanding the Prevailing Provincial Economies and Labour Markets As the preceding parts demonstrated, the economies and labour markets in the six provinces are relatively varied but progressive. But there are two exceptions. NCD and Morobe have a heap of economic and labour market activities, largely contributed by unprecedented investments in the two cities of Port Moresby and Lae. However, in the general context as stated the six are the most progressive and dynamic provinces of PNG’s 22 provinces in terms of economic and labour market activities. Yet, a common denominator amongst them which is also shared with the rest of the provinces is that they have a largely agricultural based economy. Only NCD is an exception with majority of its population engaged in the cash economy. The findings from the LMNAS of the six provinces generally acknowledge as majority of the respondents view to be engaged directly in the agriculture sector. The current makeup of the provincial economy of the six provinces varies from a collection of large to medium companies to small sized companies and set ups mostly in the entreprenual and commercial enterprises in a variety of areas mainly in the mechanical, retail and agriculture. There two provinces, namely Enga and Morobe with world class mines which have profound impact on the labour markets and their broader economies. However, Table 9.1 shows sectoral representation of the key sectors (industries) in the six provinces where the field missions occurred for the current analysis. Table 9.1. Sectoral representation of the key industries in the six provinces Province NCD

Industry Characteristics Private and public Building and construction sector enterprises Manufacturing Electricity, gas and water 57

Education and welfare Community, social and personal services Local business markets

Enga

Morobe

ENB

and Wholesale and retail trade, Auto machinery workshops and spare parts Accommodation, cafes and restaurants, Finance, insurance, real estate and business services Quarrying Private and public Mining and quarrying, building and construction sector enterprises Local business and Auto machinery workshops and spare parts markets Accommodation, cafes and restaurants Retail trade Education and welfare Community, social and personal services Small village and Agriculture farming and sale Services home based work Livestock management Poultry and pig rearing Hospitality services Private and public Building and construction sector enterprises Mining and quarrying manufacturing Electricity, gas and water Factories Mills Education and welfare Community, social and personal services Local business and Wholesale and retail Trade, markets Auto machinery workshops and spare parts Accommodation, cafes and restaurants, Finance, insurance, real estate and business services Large scale agriculture farming and sale services Fishing and forestry Small village and Agriculture farming and sale services home based work Livestock management Poultry rearing Local crafts Hospitality services Private and public Building and construction sector enterprises Mining Electricity, gas & water Large scale agriculture farming and sale services Education and welfare Local business and Wholesale & retail trade markets Auto machinery workshops and spare parts Accommodation, cafes and restaurants, Finance, insurance, real estate and business services Fishing and forestry Small village and Small scale agriculture farming and sale services home based work Livestock management Poultry rearing Local crafts 58

East Sepik

Private and public sector enterprises

Local business markets

and

Small village and home based work

Eastern Highlands

Private and public sector enterprises

Local business markets

and

Small village and home based work

Fishing Hospitality services Building and construction Electricity & water Agriculture farming and sale Services Education and welfare Wholesale & retail trade, Auto machinery workshops and spare parts Accommodation, cafes and restaurants, Finance, insurance, real estate & business services Large scale fishing and forestry Agriculture farming and sale services livestock management Poultry rearing Local crafts Fishing Tailoring Hospitality services Building and construction Manufacturing Electricity & water Cash crop exporting Education and welfare Wholesale & retail trade, Auto machinery workshops and spare parts Accommodation, cafes and restaurants, Finance, insurance, real estate & business services Cash crop, mainly coffee and forestry Agriculture farming and sale services Livestock management Poultry rearing Local crafts Tailoring Hospitality services

The findings of the analysis of the LMNAS of the six provinces indicate few things. First, they indicate NCD and Morobe provinces host a larger industrial base comparatively with a presence of both government and private sector orientated service and manufacturing sectors. The formal sector in all other provinces (of Enga, ENB, East Sepik and Eastern Highlands) mostly consists of diverse but relatively small scale industries. The government institutions and agencies are the big employers whereas employment concentration in the small scale industries is small. Although there are exceptions such as there is large scale mining in Enga and concentration of extensive range of commercial agriculture cash crops such as cocoa and copra in ENB. Agriculture is also big in Morobe with the hosting of Ramu sugar farming and milling and also oil palm cultivation and growing. These enterprises require a mixture of 59

specialised and skilled workforce for the more formal large scale enterprises whilst semiskilled and unskilled for other workplaces, mainly plantation agriculture. Labour market demands, in term of job availability in the larger enterprises is dictated by a multitude of factors such as expansions, competition, market prices and favourable government and other contextual factors. The demand of VET trained labour in these business enterprises are there but not specifically obvious to attract it due to complexity of issues, ranging from lack of LMI to entry restrictions. Second, the six provinces also host varying businesses which can be classified under the category of ‘local business and markets’ (see Table 8.1) of which they dominate most of the business activities in the provinces. They mainly range from service businesses such as wholesale and retail to accommodation and restaurants. Depending on each of the six province’s development status, geography, cash cropping base and a host of other factors such as population, infrastructure and government support, such economic activities vary. But most importantly, such businesses are source of employment opportunities for VET graduates. Moreover, the requirements for knowledge, skills and experience also vary but VET graduates do match most of the expectations of many of the jobs, particularly in building, mechanical, plumbing, brick laying and hospitality trades. The LMNAS of the six provinces note that a very small percentage (%) of the target VET group is presently engaged with the formal industrial and business sector. In general, women are mostly not observable in those workplaces, with the exception of hospitality workplaces. However, the women respondents of the LMNAS survey were generally absorbed together with the men in the figures and therefore warrant no separate analysis. Any distinctive features of women in the analysis are pointed out separately, however. The third category of the present market or economy comprises mainly small scale entrepreneurial activities concentrated largely in the villages. A significant number of them also operate in the urban centres of the six provinces. They include poultry and pig rearing, trade stores, local handicrafts, tailoring and provision of hospitality services. The findings of the LMNAS notes that this segment of the market operates independently and most likely that is where the VET trained labour ends up in either being employed by an entrepreneur or working in their own established businesses. The latter component of the market is not significant, however, the study found of some notable set up of entrepreneurial activities 60

mainly in mechanical and building trades. Such businesses do provide employment opportunities for VET graduates and they fill an important gap in the generation of business activities at the village level. The work arrangements in this segment are mostly informal and unstructured. For larger businesses, employment seemed to be carried out formally and the study observed there is noticeable presence of women, mainly in the hospitality trade. In the LMNAS mission trips to the six provinces, there were also employment opportunities particularly in short to medium project sites. Building and construction activities initiated by both government and business enterprises were going on which also had opportunities for VET trained labour. There were also a host of donor and other NGO projects being carried out. However, entry to the jobs varies and most of them are occupied by seasoned labour with necessary qualification and experiences. What is of significance is the availing of LMI to potential labour market entrees which arguably seem to be the major obstacle to employment of VET trained personnel in the provinces.

9.2. The Current Context of the Trades Demand in the Six Provinces As discussed in the previous section, the labour market of the six provinces is determined by three (3) distinct segments including, the large industry (mines, business and service enterprises exceeding 500-1000 and over employees), medium sized industry (200-400), small entrepreneurial enterprises (10-100), and home based individual enterprises. Most of the interviews were done in focus groups of employers representing their respective businesses during the several weeks of visiting the six provinces. There was also a session for the TVET managers, manageress and teachers who also had a say on the skill demand, particularly the supply side of the skills labour market (see Chart 8.1). From the findings it is obvious that each of the four (private and public, local business and markets and small village and home based work) sectors require similar types of skills. For easy interpretation and categorisation of skills or trades demand (for a better concept), the most popular trades taught at vocational centres and demanded by the respective industries, large or small are listed accordingly in Chart 9.1 as per the six provinces. The computations of trade demands are from some one hundred (100) public and business enterprises and VET institutions the LMNAS team interviewed. Most of the trades are heavy and conventional 61

such as carpentry, mechanical, metal fabrication, plumbing, tailoring, welding and new and soft trades such as tourism and hospitality, business studies and electronics. Chart 9.1: Trades demand by employers

The trades demand in each of the six provinces is determined by various factors. These include economic activities of large, medium and small enterprises, governmental infrastructural developments, donor development projects and normal business activities of people. The situation in most of the six provinces as far as demand of trades is concerned is steady but growing whilst in NCD and Morobe some of the trades such as carpentry (14%), plumbing and mechanical (13%) and electrical (9%) were acute brought on by the robustness of the businesses. Chart 8.1 also highlights the growing demand of tourism and hospitability (11%) nationally where provision of hotels and accommodation buildings have mushroomed to unprecedented levels in major cities and towns, particularly Port Moresby and Lae. Associated trades such as book keeping (accounting), office management and information technology were also in demand by the business sector. 62

The LMNAS team gathered from written responses and focus group meetings of managers and workers representing the industry that TVET trade skills were of growing demand in the respective provinces. The students of VTCs mostly graduate with conventional certificate qualifications in the trades mentioned and some are immediately recruited if the schools are lucky to be in a precinct dominated by big businesses such as mines and agricultural establishments. Many look for jobs in local towns or migrate to larger towns whilst others return home to do things on their own.

9.3. The Supply Dimension of Trades in the Six Provinces The labour market scooping study of the six provinces also sheds light on the supply side of the dimension of the present trade skills inventory. This facet of the analyses attempts to explore the present trades being taught, trends of graduate absorption in the provincial labour markets, preference and mode of trade emphasis in the VTCs of the six provinces. In general, most of the trades taught at the VTCs are conventional and they reflect a history of specialised teaching influencing by demand and availability of instructors, more than anything else in the six provinces. The VTCs are mostly dominated by male students in the six provinces but where females are found there is trickle of them in the general trades. However, there are VTCs particularly for females and they are mostly found in trades such as tourism and hospitality, tailoring and dress making and business studies. A comparative analysis across gender perspectives on the basis of who acquired more skills and their employability to the industry could not be possible for this study. However, for the women dominated trades, they are more tailored towards them working for hospitality and service areas such tourism, boarding and lodging and eateries. Males tended to pick up the popular skills mostly in carpentry and joinery, auto mechanical, metal fabrication, welding, plumbing and bricklaying. Table 9.2 shows the present trades skills currently being taught in VTCs of the six provinces. Table 9.2 Trades taught at VTCs in the six provinces Provincial VTCs

Trades Taught

Koki

Auto Mechanic Body Repair Motor Vehicle Mechanic Metal Fabrication Auto Electrical Business Studies 63

Badili

Morata Limana Maino Heduru

Andait Vocational Centre

Pina Vocational Centre

Wanapap TVET Centre

Porgera TVET Centre

Pompabus TVET Centre

Pandai Vocational Centre

Laiagam Appropriate Technology Centre Wapenamanda Specialized

Plumbing Carpentry and Construction Computing Electrical Electronic Fisheries Business Studies Refrigeration Tourism and Hospitality Auto Electrical Plumbing Small Engine Brick Laying Tourism and Hospitality Office Administration Business Studies Carpentry and Construction Motor Vehicle Mechanic Tourism and Hospitality Wielding Carpentry Motor mechanic Agriculture Metal Fabrication and Wielding IT & Secretarial Carpentry and Joinery Motor mechanic Tourism& Hospitality Plumbing Carpentry Joinery Information Technology Plumbing Electrical IT Metal Fabrication and Wielding Carpentry Mechanic Tourism and Hospitality Carpentry Metal Fabrication and Wielding Mechanic Tourism and Hospitality Information Technology Tourism & hospitality Information Technology Carpentry and Joinery Motor mechanic IT Motor mechanic Metal Fabrication and Wielding Building Construction 64

Training Centre

Finschhaften Technical School

Menyamya Vocational School

Umi Vocational Centre

St.Joseph Vocational School

Raval Vocational Training Centre Kabaleo Girls’ Vocational Centre Kabaira Girls’ Vocational Woolnough Vocational Centre

Metal Fabrication and Wielding Domestic Industrial wiring Computer Secretarial Auto Mechanic Agriculture Carpentry Tourism & Hospitality Wielding Fisheries Carpentry Tourism & Hospitality Mechanical Allied Trades Welding Business/IT Tourism & Hospitality Plumbing Mechanical Allied Trades Wielding Motor Mechanic Metal Fabrication and Wielding Electrical Refrigeration & Air-Conditioning Building Construction Plumbing, Metal Fabrication and Wielding, Brick Laying, Agriculture, Carpentry Construction, Panel Beating and Spray Painting, Joinery, Tourism and Hospitality Computing, Tourism and Hospitality and Garment Production Catering, Tailoring , Business Studies , Agriculture, Academic Subjects, Hand Craft and Religious Studies Tourism and Hospitality , Dressmaking & Tailoring, Commercial Cookery, Agriculture, English and Maths Auto Mechanic, Metal Fabrication and Wielding and Panel Beating and Spray Painting Carpentry and Joinery, Garment Production, Tourism and Hospitality, Plumbing, Domestic Electrical. Fisheries Program – Commercial Fishing Operations, Sea Food Harvest, Hagen Technical Program, Auto Electrical, Heavy Equipment and Diesel Fitter.

Milmila Vocational Centre

Carpentry & Joinery Fisheries, Tourism and Hospitality, Catering, Tailoring, Agriculture, Small Engines, Carpentry and Wielding

Vunamami VTC

Tourism and Hospitality, Business Studies, Mechanical, Wielding, Electrical, Panel Beating and Spray Painting Tourism and Hospitality, Computing, Sewing, Office Administration Carpentry, mechanical, Auto mechanic, Plumbing, Electrical Tourism & Hospitality, Carpentry, Mechanical,

Basenanka Vocational

Kamaliki

65

Heavy Duty Diesel Equipment fitter, Auto Mechanic, Light Vehicle Servicing, Electrical, Electronics, Auto Electrical, Plumbing Awande

Gotomi Maria HILF

St Josephs (Kefamo) Yawasoro VTC

Skul Bolong Store Keeper Hawaian Technical High School Yauatong VTC

Office Administration/Computing & Business Principles/Accounting, and Agriculture. Motor Mechanic, Metal Fabrication and wielding, Carpentry & Joinery, Plumbing, Office Administration, Tourism and Hospitality, Carpentry/Joinery and Motor Mechanic Office Administration/Computing & Business Principles/Accounting, and Agriculture, Motor Mechanic, Metal Fabrication and Wielding, Carpentry & Joinery, Plumbing Carpentry, Construction, Wood Joinery and Plumbing Mechanical, Wielding, Carpentry Trade, Auto Electrical, Tourism and Hospitality, IT conventional, Plumbing Know About Business and Life Coping Skills Business Studies, IT, Know About Business and Life Coping Skills Wielding, Plumbing, Mechanic, Carpentry Construction and Carpentry Joinery, Agriculture, Tourism & Hospitality Mechanic, Carpentry, Wielding, Agriculture and Tourism and Hospitality

Generally, the existing teaching of trades and therefore supplying the graduates to the provincial labour markets is the responsibility of the VTCs and each of the respective provincial governments. Teaching of trades is carried out in mostly depilated and rundown buildings requiring urgent repair in many VTCs. There are however some schools, particularly church run and independently operated which boast of having well managed permanent classrooms and workshops. The acute needs for tools, equipment, manuals and other teaching aids is an obvious feature of the VTCs in all the six provinces. Despite the physical shortcomings, the VTC are generally performing a demanding role in the supplying of graduates to the provincial labour markets with mostly conventional trade certificates in TVET fields. In the six provinces, existing trade graduates amongst males is high on the masculine trades such as auto-mechanical, carpentry and joinery, electrical, metal sheeting fabrication and bricklaying. Whilst the existing trend of trade completion amongst females in the six provinces comprises primarily of tourism and hospitality, tailoring and embroidery and business management. This is supplemented by a handful of them enrolled in the 66

predominately male trades. But usually in all the six provinces, the trend of females enrolled in masculine trades is minimal.

9.4. The Vocational Sector – Linking the Trades Supply and Demand This section provides an overview of courses taught for male and female and also combined in the six provinces. In all the thirty one (31) VTCs that visited during the course of the labour market study field missions, five (5) in NCD, four (4) in Enga, seven (7) in Morobe, six (6) in ENB, four (4) in East Sepik and five (5) in Eastern Highlands, the courses taught are presented mostly differentiated by gender. But where there is teaching of the trades for combined genders is also stated and identified. The service provider (s) is also stated. An institutional assessment of the visited VTCs highlights some common facts. First, they mostly provide training for the conventional trades. Second, the recipients are a very small proportion of the target lower secondary grade 8 and 10 school leaving population in each respective province. Further, the findings note that VTCs offer both long-term and short-term courses tailored towards demand, particularly of the latter. The short-term courses are mainly in the areas of marketing, business management, entrepreneurial skills and a host of others such as book keeping. The average enrolment ranges from fifteen twenty (20) to thirty (30) students per units and in some cases even higher due to the current free tuition fee (FTF) policy of the GoPNG. All the VTCs visited mentioned of a sudden surge in the enrolment numbers due to FTF. All VTCs offer trade certificates whilst some have started offering diplomas resulting from partnership with technical colleges of which some of the popular courses are trailed with the VTCs. For example, Woolnoughu VTC was running Certificate in Applied Technology (CAT) courses, an extension of Mt Hagen Technical College, mainly in mechanical trades. Table 9.3 shows the common courses offered for male and female. Table 9.3. Common courses offered for male and female in the six provinces Provinces NCD

Enga

Male Course Mechanic Metal Fabrication and Wielding Panel Beating and Spray Painting Plumbing Auto Mechanical, Welding & Metal Fabrication, Information

Provider Gov’t & Church

Gov’t Church 67

Female Course Tourism & Hospitality Garment Office Management

Provider Gov’t & Church

& Business Management, Gov’t Agriculture, IT, Sewing & Church Garment

&

Morobe

ENB

East Sepik

Eastern Highlands

Technology Agriculture, Carpentry & Business Courses Agriculture Carpentry Tourism & Hospitality Wielding Fisheries Business/IT Mechanical Allied Trades Refrigeration & Air conditioning, Construction and Building Auto Mechanic, Metal Fabrication, Wielding, Panel Beating and Spray Painting, Carpentry and Joinery, Production, Tourism and Hospitality, Plumbing, Electrical. Fisheries, Commercial Agriculture, Small Engines. Mechanical, Wielding, Carpentry, Electrical, Tourism and Hospitality Plumbing, Business and Life Coping Skills, Construction, Agriculture Tourism and Hospitality, Business Studies, Mechanical, Wielding, Electrical, Panel Beating and Spray Painting, Office Administration/Computing & Business Principles/Accounting, and Agriculture, Motor Mechanic, Metal Fabrication and Wielding, Carpentry & Joinery, Plumbing

Gov’t Church

& Business management, Gov’t Tourism & Hospitality, Church Business Management, IT, Garment

&

Gov’t Church

& Garment, home Gov’t economics, Catering, Church Tailoring, Embroidery, Agriculture, Business Management, IT

&

Gov’t Church

& Business and Life Coping Gov’t Skills, Agriculture, Church Business Management Skills, IT, Tourism and Hospitality

&

Gov’t Church

& Tourism and Hospitality, Gov’t Business Studies, Church Administration/Computing & Business Principles/Accounting, and Agriculture

&

68

9.5. Potential Trades for Females in VTCs In each of the six provinces, the provincial business sectors were asked of the potential trade demands for females in the VTCs. The responses and remarks (see Table 9.4) reflect stereotypes community has of girls of VTCs in particular and women generally. For example, office administration, computing, garmenting, business studies and hospitality and tourism were trades that businesses fondly mentioned of women graduates of VTCs. They needed to be in abundance in order to respond to the demands in those fields. Whilst at the same time, male dominated trades such as mechanical, electrical, plumbing and computing technician were mentioned which could also enrol females in VTCs provided they had the entry grades required. Table 9.4 showing provincial business sector perceptions of potential trades paths for females (and males) in VTCs. Trades Office Administration Computing Garmenting Business studies Tourism and hospitality Male dominated trades

Remarks Secretary, from office clerical duties, office management Tying skills, computing (word, excel) skills Tailoring skills Business skills, accounting skills, book keeping, sales and marketing Cooking, catering and house keeping Mechanical, electrical, plumbing, carpentry, auto electrical, computer technician. Expressed gender equality, and had no limitation for girls in all male dominated trades areas as long as they had good grades and skills.

Chart 9.2 shows the industry views on potential trades for females in VTCs.

69

As evidenced of Chart 9.2, some 19% of responses of the industry view females to be prominent in tourism and hospitality. This is followed by next highest of 16% of views respondents who saw them to be in the computing field. Whilst others (13%) thought of them to be studying office administration followed by business studies (10%), garment (9%). The large remainder (33%) of the respondents viewed the other fields of study (such as carpentry, mechanical, electrical and plumbing) to be dominated by males. The females were to be also included in those provided they possessed the entry marks and determination to pursue those skills, however.

9.6. Conclusion The LMNAS team’s visit to the six HRDP 2 provinces echoes a lot on the current status of the VTC system in PNG. In order to have efficiency in the system of vocationally trained technical labour to the provincial labour markets, there are many things urgently needing attention before the system can be acknowledged as effective in fulfilling its roles. Currently, there are gross mismatches between supply and demand for skilled labour. The implication is that vocational training and TVET in general should therefore be demand driven but is never the case. What is happening is a paradox in terms of skills gaps. On one side, there is increasing number of graduates in conventional and other technical trades coming out of the VES. Whilst on the other, the industry is critical of the current technical supply of graduates and finds many of them not suitable to their expectations. Therefore, they continuously complain of the lack of competent technically skilled labour available in the country which if available they would like them to perform to required standards and operate new technologies. However, despite the mediocrity of technical graduates to the labour market, the VTCs have been in operations courtesy of committed staff and fresh eager students. The mostly conventional trades in the form of auto mechanical, carpentry and joinery, plumbing, metal fabrication and brick laying are varyingly offered in the many vocational centres in the six provinces. Staffing, tools and equipment and buildings also differ attributed to a host of factors, such as financing, history and industry support. What should happen in the VTC targeted training is ideally an existence of equilibrium in supply and demand of VTC trained labour. In the meantime, they may not be happening.

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10. The Trades Skill Gap Analysis in the Six Provinces This part of the report provides analysis on views on trades skill gap held by key private sector stakeholders and also of informed community and business leaders, managers and manageress and instructors of VTCs commenting on the demand and supply equilibrium. The detailed trade skill gap analysis is therefore the collection of expert opinions on the current status of trade skill availability in the respective six provinces.

10.1 Trades Skill Gap and the Industry The study team of the LMA mission to the six provinces found several important evidences of the operation of both supply and demand facets of the respective labour markets. It found that only a handful of VTC trained graduates were working in the industry in each of the six provinces. This was a common picture emerging of the provinces. A myriad of common issues were identified for not favouring the VTC graduates to seek jobs in droves in the local employment sector. Box 10.1 outlines some of the common issues mentioned in the interviews by TVET stakeholders, particularly business enterprises. The listing of concerns below (see Box 10.1) denotes no order of significance. Box 10.1 Common issues with VTC graduates



Obsolete teaching aids and depleted buildings/workshops and equipment



Obsolete trade course syllabus



Less qualified teaching staff



No course alignment throughout VTC



Lack of government support



Lack of industry support



Lack of financial resources



Small labour market



Poor attitudes of graduates



Poor technical skills set, including literacy and numeracy



Less familiar with tools, equipment and general industrial work environment

71

These issues not only characterise the VTC sector. But they are also typical of the TVET sector generally where technical and business colleges are constrained with resources that there is sometimes not much difference between the graduates in terms of trade skills absorption. Another feature of the trade skill analysis is that the VTC graduates seemed to be employed in wide range of capacities. Although there were some exceptional cases of graduates seeking better employment opportunities in the sector, most of those who secured employment were in building trades ranging from road construction, building sites, workshops and serving as handy men in various businesses. The trades being recruited included mechanical, electrical, plumbing, carpentry and joinery, metal fabrication and agricultural. These were specialised by mostly by young men. For the women graduates in tourism and hospitality, they were mostly employed in related businesses including hotels, shops with eateries and airlines. Similarly, for women graduates in tailoring and embroidery courses, they are sought after in business retail shops, cloth factories and markets. For an increasing number of VTC graduates, self-employment for monetary or otherwise is largely the avenue available for them. However, the industry had inherent reservations on the VTC graduates/centres in particular and TVET sector generally. Their perceptions are influenced by some of the reasons they have of VTC graduates less trained and therefore incompetent. They also held the view that a lot of the graduates were ill disciplined and lacked necessary attributes such as courtesy (see Box 9.1). Overwhelmingly for most employers, these issues convince them to undertake inhouse training for VTC and other TVET graduates to bridge the requisite skill and knowledge gaps. As expected, the training imparted by VTCs lack practical orientation and is not hands on or relevant particularly in the industry-specific contexts and environments. The most significant issue identified by the industry in the many conversations held with the LMNAS team and on the industry questionnaire circulated is the little information VTC graduates have in the use of modern machines, equipment and tools, trade knowledge and practical exposure. Despite the limited work practicals VTCs graduates have during their two year training, they are not readily available in skill trades compatible with current industrial demands. One of the most critical findings of the labour market study is that the current 72

course delivery is obsolete with archaic training methodologies and little or no proper tools set to complement the trainings. Therefore, the gap between the industry/market and the training service provider (VTCs) is wide and in many cases, too wide for any meaningful intervention. What every industry representative spoken wants is for the VTCs to teach marketable trades and skill sets, including soft skills in order to meet industry standards and demands. As a matter of fact, almost all the managers and manageress of VTCs spoken confirmed that there was little input into the curriculum and syllabus from the private sector. Ideally, the provincial chamber of commerce and trade would be the peak body to represent the industry and therefore influence the teaching of trades reflecting its needs and demands, but hardly is the case. The industry body and some of the key industries in particular such as mining, agriculture, fisheries, construction and engineering as per a province’s specialisation of industries are needed to have their inputs into the curriculum design in order to have industry interest in the teaching and delivery of the trade courses. The respective industry representatives interviewed mentioned that they are yet to be consulted for their inputs to seriously look at meaningfully assisting the VTCs in the supply side of HRD of the young people. There were skill (trade) shortages identified by the respective industries in each of the six provinces. As evidenced of individual and focus group discussions with the industry representatives, the LMNAS team found an interesting array of views expressed of the skill shortages identified by the industry as evidenced in Table 10.1. Table 10.1. Trade (skills) shortages identified by the industry in the six provinces NCD Trade Tourism and Hospitality Garment Mechanic Metal Fabrication and Wielding

Panel Beating and Spray Painting Plumbing

Skill          73

Catering skills Tailoring skills mechanic (light vehicles) Safety Fabricating Wielding Body works Spray painting Plumbing

Percentage 10 3 23 20

8 5

Carpentry Office Administration

    

Joinery Carpentry skills Telephone skills Customer service Communication skills

26 5

Morobe Trade Tourism and Hospitality Garment Mechanic Metal Fabrication and Wielding

Electrical Panel Beating and Spray Painting Plumbing Carpentry ENB Trade Accounting

Plumbing Mechanic Metal Fabrication and Wielding

Carpentry Electrical Garment Tourism and Hospitality

Skill           

Skill               

Catering Skills Tailoring Skills Mechanic (Light Vehicles Diesel Mechanic Wielding Fabricating Safety Electrician Body works General plumbing carpentry skills

Operating Cash Register Basic Book Keeping Basic Maths Plumbing Mechanic (Light Vehicles Safety Rules Handling Equipment Good Attitude Carpentry Skills Electrician Basic Maths Housekeeping Skills Chef-Cooking Skills Customers Service Catering Skills

Percentae 17 4 22 9

9 4 13 22

Percentage 7

7 14 3

10 3 21 35

Enga Trade Tourism and Hospitality

Garment

Skill       74

Housekeeping Skills Waiter & Waitress Catering Skills Driver Cleaner Tailoring Skills

Percentage 10

1

Mechanic

Metal Fabrication and Wielding Electrical Plumbing Carpentry

IT

Primary Industry Office Administration

Accounting

                      

Mechanic (Light Vehicles) Walkabout Sawmill Mechanic Driver Equipment Fitter Machinist Metal Wielding Electrician Electronic Technician Plumbing Carpentry Skills Joinery Painter Tile Laying Computing Skills IT technician Programmer Agriculture Clerical Typing Shop Assistant Customers Service Operating Cash Register Basic Book Keeping Sales & Marketing

11

7 11 10 16

13

3 6

11

ESP Trade Tourism and Hospitality Garment Mechanic Metal Fabrication and Wielding Electrical Plumbing Carpentry Auto Electrician Primary Industry Office Administration Panel Beating and Spray Painting

Skill             

Cooking Skills Catering Skills Tailoring Skills Mechanic (Light Vehicles) Wielding Electrician Plumbing Carpentry Skills Auto Electrician Agriculture Clerical Customers Service Panel Beating and Spray Painting

Percentage 9 3 12 9 11 18 20 5 4 7 2

EHP Trade Accounting

Office Administration

Skill      75

Cash Register Sales and Marketing Basic Maths Business Management Receptionists

Percentage 9

22

Tourism and Hospitality

Electrical Electronics Mechanic

Carpentry

Plumbing Metal Fabrication and Welding Primary Industry Panel Beating and Spray Painting IT Garment

                                   

Communication Skills Clerical Typing Customer Services Telephone Skills Logistic Management House Keeping Cooking Skills Communication Skills Bed Making Driver Butcher Specialist Baker Flower Arrangement Catering Skills Waiter & Waitress Lines Man Refrigeration Electronic Technician Heavy Diesel Mechanic Mechanical Repair Driving Skills Joinery Painter Timber Cutting Skills General Plumbing Welding Safety Agriculture Spray Painting Panel Beating Basic Computing IT Technicians Tailoring Seamstress

10

8 3 14

8

3 6 3 3 8 3

Broadly, there are several salient aspects of the trade demands in the responses of the private sector of each of the six provinces. First, the demand for conventional trades is high of which it is relatively common in the six provinces. The provincial labour markets and economies are relatively not mature and the conventional trades are in high demand by existing enterprises and enterprises in order sustainability of their businesses. Second, some provinces have acute needs for trades needs than others due to more construction and business activities currently occurring. For example, NCD and Morobe are arguably two provinces experiencing 76

phenomenal labour market activities due to unprecedented business activities brought on by establishing of sports and extractive industry led projects. Whilst the other provinces relatively have demand of trades brought on by growing but limited economic activities. Third, some of the demands are common such as carpentry and joinery, mechanical and plumbing, whilst others such as tailoring and garment are unique to a province such as ENB. Again the trades demand is dictated by the demands and specifications of each provincial economy despite all sharing commonality of development needs and business activities. Finally, the trade demands are real and the implications is that the VTCs needed to provide graduates in more of those trades, particularly the conventional ones such as electrical, mechanical and plumbing in order to respond to the labour market and business needs meaningfully. More specifically, as an example of province by province comparison, East Sepik and NCD could be seen in their particular trades demands for their industries. Chart 10.1 and 10.2 respectively provide trades in demand by employers in East Sepik and NCD. Trades demand in East Sepik is somewhat similar to NCD with carpentry (20%) topping the list from industry interviewees followed by plumbing (18%), mechanical (12%), electrical (11%), tourism and hospitality (9%), metal fabrication and wielding (9%), office administration (7%), auto electrical (5%), primary industry (4%), garments (3%) and panel beating and spray painting (2%). Similar comparisons can be made between the other six provinces.

77

Chart 10.1 shows trades demand by industries in East Sepik

Chart 10.2 shows trades demand by industries in NCD

78

As of the two provinces (East Sepik and NCD) in comparison of trades demand, industries in both areas are in acute need of the conventional trades also evidence generally of the six provinces. The demand for skills such as of a carpentry, mechanic and plumber is also evidenced of the many development projects currently going on in the country.

10.2. Trades Skills Gap Analysis As can be seen in Table 10.1, majority of the business industry respondents appeared keen to recruit VTC graduates in the conventional trades provided they were better trained to their standards and expectations. For example, in most of the six provinces, the technical trades topped the list of skills demand which they are willing to recruit providing demand and vacancies become available. At present, the VTCs visited in the six provinces are offering most of the conventional trades and skill courses in electrical, auto mechanic, tailoring and embroidery, tourism and hospitality and business management courses, etc. But content, skills and experiences of instructors, tools and equipment and physical buildings are handicapping the efficiency and effectiveness of the deliveries. As a response to the inherent pedagogical and practical issues regarding syllabuses and hands on trading demonstrations and workshops, the industry wanted close consultations with the VTCs in particular and TVET sector generally. As a result of the mediocre trades and skills VTC graduates possessed, industry represented were forced to do few things regarding their employment needs. They mostly trained their own workers on the job after being trained. They were also forced to recruit from the technical and polytechnic colleges. The graduates from those colleges were not effective either, however. On many occasions, the business orgnisations had to extensively advertise the jobs in order to land the right person with the necessary skills and experiences. But many of them sympathise with the plight of the VTC graduates with the limited employment opportunities they face, they needed to have the requisite trade and skill sets before they were recruited. However, there were a number of suggestions offered in attending to the obvious deficiencies in the VTC sector. A lot of the industry representatives suggested that there is a need for a peak body vested with the interest of looking after the TVET needs of each particular province. Such a body would work in conjunction with the provincial business councils and 79

respective VTCs and TVET sector in general in offering advice and direction to them. Others mentioned of the need for managers and manageress of VTCs to be proactive in their approach to the industry. The extending of invitations to them to sit on the Centre Boards, Curriculum Advisory Committees, if there is one and also inviting them to graduations were sufficient bridges to forging meaningful relationships between the two parties. The existing ad hoc approach of centres inviting them to take on students on work assignments and practicals was seen as not sufficient and there was an overwhelming perception amongst industry personnel that the VTCs needed to do more in forging relationship with the industry. Additionally, the industry representatives spoke to the LMNAS team that the graduates of the VTCs were poor in knowledge and skill acquisition before entering the workplaces. They therefore needed to be effectively mentored and monitored at the workplaces of recruitment before they become practicably useful in their chosen jobs. Although many had the basic understanding of the trades, those were not adequate in their current form to be allowed to work unsupervised. The industry involvement in curriculum, practicals, work attachments and appearing on Boards of the VTCs were seen as the way to go for a more robust relationship between the two parties than what was currently taking place. Unless those initiatives are embraced to rectify the structural malaise in the VTC functions, there was no bright future for the supply side of the VTCs graduates to the labour market of the respective provinces.

10.3. Conclusion In summary, the skill shortage in the local economies of the six provinces is real and desperately acute as evidenced of the views expressed by the industry representatives in the many individual and focus group interviews. For the benefit of supply side of labour and demand side of labour to function smoothly there needs to be a mutual approach to managing the labour market and industry issues. At present, there is a disconnect in understanding the labour market issues and VTCs are furnishing the labour market with mediocre graduates of which the industry is being disappointed with and increasingly shunning them. What beckons is for a mutual approach to coordinating the demand and supply side of VTC graduate labour and that would mean the proper establishment of communication linkages between the stakeholders to achieve tangible results in the meeting of industry technical labour needs.

80

11: Selection of VTCs to Enable HRDP 2 Intervention for Infrastructure Support This part of the study does several things. First, it provides a brief introduction to the overall purpose of the LMNAS and how it was implemented in terms of visitations to provinces and methodology utilised in gathering information. Second, it provides discussion on the criteria for the selection of the VTCs in the six provinces to enable HRDP 2 intervention for infrastructure support. Third, selection matrix of VTCs of the six provinces is presented with a discussion explaining the analysis. This is followed (fourth) by the discussion of the actual selection of ten VTCs for HRDP 2 infrastructure support. Finally, some concluding remarks.

11.1. VTCs of the Six Provinces and their Significance to HRDP 2 For the purpose of collecting valuable data and information to assist in the selection of appropriate number of VTCs for HRDP 2 infrastructure support, the LMNAS team visited most of the VTCs in the six provinces. Those VTCs that were isolated and located in far flung districts of the provinces were left out due to the team’s transport, time and other reasons such as safety. Otherwise, every endeavour was made to visit the VTCs. The visiting of the VTCs was done purposely to collect information regarding the supply side of the VTC graduates to each of the provincial labour markets, in particularly and the region and country, generally. The following information sources (see Box 11.1) were relied upon in collecting the supply side of labour market in each of the respective six provinces to aid in the selection of VTCs for HRDP 2 support. Box 11.1 showing information sources of the supply side of the labour market of VTC graduates 

VET questionnaires



Interview of managers and manageress and board members



Focus group interview of all managers and manageress



Interviews with former VTC graduates



Relevant research on provincial labour markets



Physical inspections of VTCs and its workshops, classrooms, tools and teachers



Workshop for managers, manageress and others



Relevant VTC Annual and other Reports 81

Most of the information informing the supply side of the labour market for VTC graduates was collected from the two labour market study questionnaires that were circulated in the provinces. The one particularly for the managers and manageress of VTCs provided crucial information on trades taught, relevance of curriculum, number of graduates for courses, resource bases, relationship with the industry, to name just a few. Whilst interviews with VTC managers and manageress provided individual insights into the issues and challenges of managing the institutions tasked with the supplying technical skilled young people to the labour markets. Further, purposely ran focus group of managers and manageress at the VTC workshops held by the study team also provided valuable information on the supply side of the labour markets. There were ad hoc interviews held with some of the Board members of VTCs, past graduates and interested public members as to the relevance and needs of the VTCs. The team also collected centre reports and other documents such as five year plans to round up the collection of the information. Visitation of the centres and the classrooms, tools and equipment and meeting teachers also played a big role in the information gathering exercise. All these information complemented desk top information collected in advance on each of the six provinces in advance by the LMNAS team. Equally significant was the accumulation of LMI from the demand side of VET graduates in the respective provincial labour markets. The information from this dimension of labour market study also came from various sources (see Box 11.2). Box 11.2 showing information sources of the demand side of the labour market of VTC graduates 

Business Organisation questionnaires



Interview of business organisation representatives



Focus group interview of business organisation representatives



Interviews with former VTC graduates



Relevant research on provincial labour markets



LMNA Study Team observation of businesses in six provinces



Desktop study of relevant national and provincial labour market and economic literature

82

Most of the information regarding the demand side of VET trades came from business organisation survey questionnaire that was circulated to the business houses in each of the six provinces. Their views on demand of such trades such as carpentry and joinery, auto mechanical, plumbing and metal fabrication were extracted from the responses made in the questionnaire. This piece of information was compared with VTCs that taught those trades which would make them eligible for selection for HRDP 2 support. One on one interviews with business representatives, focus group meetings at workshops with also business representatives were also other avenues the study team utilised to complement the information collected from the questionnaires. Physical observations and prior literature review on the provincial and national economies regarding VET trades and TVET skills in general rounded up the information on the demand side of the labour markets. The accumulated supply side and demand side of the LMI on VET graduates contributed to the selection of eligible VTCs for HRDP 2 intervention for the purposes of providing infrastructure support. The significance of selected VTCs were to set the scene not only for infrastructure support but for them to also receive other supports such as tools and equipment, capacity building for teachers and facilitation of student work attachments to industries.

11.2. Criteria for the Selection of VTCs The criteria for the selection of VTCs of the six provinces were based on eight main factors. All the factors, directly or indirectly support the achievement of each VTC’s continued supply of VET graduates into the provincial labour markets. These factors are listed in Box 10.3. Box 11.3 showing information sources of information relied upon in selecting VTCs for HRDP 2 infrastructure and other supports. 

long history of industry connection/relationship



sound management and governance system



existing infrastructure and teaching staff



road access to existing main road/high way



availability of land



existence of development plan



hosting of demanding (labour market) courses



less degree of man-made and natural misfortunes 83

The eight factors utilised as selection criteria for VTCs for HRDP 2 infrastructure and other supports were all equally significant in their values to the determination of eligibility of each of them. For example, a VTC’s long history with industry partners for their student work attachments and equipment and other supports was necessary and relevant to the task of prioritising it for selection. Sound management and governance system, including local community support was also a relevant factor influencing one’s selection. Other selection criterions, included existing infrastructure and teaching staff, road access to existing main road/high way, availability of land, existence of development plan, hosting of demanding labour market trade courses and less social and natural disaster issues. These factors played a critical role in the prioritisation of VTCs for selection to enable HRDP 2 support in infrastructure, tools and equipment and capacity building of staff. The selection criteria overall is quantifiable and therefore based on assessment and evidence.

11.3. Selection Matrix of VTCs of the Six Provinces In line with DoE expectations, there were ten VTCs selected for HRDP 2 support. Before the selection, the VTCs that were visited by the LMNAS team were placed in the category of each rightful province. The first four provinces of NCD, Enga, Morobe and ENB were to contribute two VTCS for support whereas the remaining two provinces of East Sepik and Eastern Highlands were to contribute one VTC each to the selection. The VTCs were accorded points on the basis of their faring on the eight criterions that formed the selection criteria. Most importantly, business organisation survey data was heavily relied on to favour VTCs which had trades that were demanded by the private sector. That piece of data was crucial for criterion ‘course’ (or trade) of demand being taught at the VTCs. Table 11.1 shows the selection matrix of VTCs of the six provinces and the allocation of value based on the number of VTCs eligible for selection for HRDP 2 support. Table 11.1 showing the selection matrix of VTCs of the six provinces and the allocation of value based on the number of VTCs eligible for selection for HRDP 2 support Provinces

Selection Criteria & Tabulation of Scores Industry

Man’gt

Infra

Road

Land

&

Pla n

84

Course

L/risks

Total Score

Score of divided

Staff

value (in by VTCs brackets)

in province

NCD Badili

2 (4)

1 (5)

1 (5)

1 (5)

3 (3)

2

1 (5)

2 (4)

35

7.0

5 (1)

5 (1)

17

3.4

3 (3)

2 (4)

32

6.4

2 (4)

2 (4)

27

5.4

2 (4)

2 (4)

37

7.4

3 (3)

4(2)

22

4.4

2 (4)

2 (4)

35

7.0

1 (5)

1 (5)

38

7.6

1 (5)

2 (4)

31

6.2

1 (5)

4 (2)

30

6.0

1 (4)

2 (3)

29

7.2

2 (3)

4 (1)

20

5.0

1 (4)

2 (3)

25

6.2

2 (3)

2 (3)

28

7.0

(4) Koki

4 (2)

5 (1)

3 (3)

1 (5)

4 (2)

4 (2)

Limana

1 (5)

1 (5)

1 (5)

1 (5)

5 (1)

2 (4)

Maino

3 (3)

3 (3)

3 (3)

1 (5)

4 (2)

Heduru Morata

3 (3)

2 (5)

1 (5)

2 (4)

1 (5)

1 (5)

1 (5)

ENGA Kumbas

3 (3)

4 (2)

2 (4)

1 (5)

5 (1)

4 (2)

LATC,

1 (5)

2 (4)

1 (5)

1 (5)

2 (4)

Laigam Pombapos

2 (4)

2 (4)

1 (5)

2 (4)

1 (5)

1 (5)

1 (5)

STC, Wap

2 (4)

4 (2)

2 (4)

1 (5)

3 (3)

2 (4)

Wanepap

2 (4)

2 (4)

2 (4)

3 (3)

2 (4)

2 (4)

MOROBE Bulolo

1 (4)

1 (4)

2 (3)

2 (3)

1 (4)

1 (4)

St Francis

2 (3)

2 (3)

3 (2)

1 (4)

3 (2)

3 (2)

St Therese

2 (3)

1 (4)

1(4)

1(4)

4 (1)

3 (2)

Umi

2 (3)

1 (4)

2 (3)

1 (4)

1 (4)

1 (4)

85

a

ENB Kabaira

1 (5)

1 (5)

2 (4)

1 (5)

2 (4)

2

1 (5)

2 (4)

36

7.2

1 (5)

3 (3)

33

6.6

3 (3)

4 (2)

25

5.0

1 (5)

2 (4)

35

7.0

1 (5)

5 (1)

29

5.8

2 (2)

2 (2)

15

5.0

2 (2)

2 (2)

13

4.3

1 (3)

2 (2)

21

7.0

2 (4)

2 (4)

32

6.4

3 (3)

4 (2)

21

4.2

2 (4)

2 (4)

35

7.0

2 (4)

2 (4)

30

6.0

3 (3)

3 (3)

25

5.0

(4) Kabaleo

1 (5)

2 (4)

2 (4)

1 (5)

3 (3)

2 (4)

Milmila

2 (4)

2 (4)

3 (3)

5 (1)

1 (5)

3 (3)

Raval

1 (5)

3 (3)

2 (4)

2 (4)

1 (5)

1 (5)

Woolnoug

1 (5)

2 (4)

2 (4)

1 (5)

4 (2)

h

3 (3)

E.SEPIK Skul Bilong 3 (1)

2 (2)

2 (2)

1 (3)

2 (2)

Stoa Kipa Yauatong

3 (1)

3 (1)

3 (1)

3 (1)

3 (1)

1 (3)

2 (2)

Yawasoro

1 (3)

1 (3)

2 (2)

1 (3)

1 (3)

2 (2)

E. HIGHLA NDS Basanaga

2 (4)

2 (4)

3 (3)

1 (5)

1 (5)

3 (3)

Gotomi

5 (1)

3 (3)

3 (3)

5 (1)

2 (4)

2 (4)

Kamaliki

1 (5)

2 (4)

2 (4)

1 (5)

1 (5)

2 (4)

Maria Hill

3 (3)

2 (4)

2 (4)

1 (5)

3 (3)

3 (3)

St Josephs

4 (2)

4 (2)

3 (3)

1 (5)

2 (4)

3 (3)

Selection of the VTCs were aided by values (1 or 2 or 3 out of number of VTCs in a province) given to a VTC on the bases of performance on the eight selection criterions. The score of 1 86

was given to a VTC if it performed well (e.g. industry relationship) than the rest of the VTCs. Subsequent score of a 2, was given to the next well performing VTC and 3 to the next one, etc., on a particular criterion until all the VTCs in a province were graded. The score of 1 had a full value which is 5 (in brackets) reflecting the number of 5 VTCs in a province. The next highest (2) received 4 until 5 was allocated to the last placed VTC which scores 1. Next in the computation, the scores on criterions in the brackets of a VTC are added up and then divided by the number of VTCs in the province to arrive at the overall score.

11.4. Selected VTCs for HRDP 2 Support Basing on the selection matrix applied, some ten (10) VTCs were selected for infrastructure, tools and equipment and capacity building support under the HRDP 2 Project. For the first selected four provinces (of the initial HRDP 2 Province Selection Study), namely NCD, Enga, Morobe and ENB, two VTCs with high scores of each province was selected for HRDP 2 support. For the remaining two, East Sepik and Eastern Highlands, only one VTC with high score of each province was selected. This is due to them faring low on the initial provincial selection criteria study and also for resource constraints of HRDP 2. The selected VTCs selected for HRDP 2 support in each of the six provinces are presented in Table 10.2. Table 11.2 also shows the recommended trades of each of the selected VTCs which will receive infrastructure and other forms of support such as equipment and tools and capacity building under the HRDP 2 program. Most are conventional trades, such as carpentry and joinery, auto mechanical electrical and metal sheet fabrication. There were some exceptions with a number of the selected VTCs having trades such as related to agriculture and tailoring and embroidery as also selected for support. Table 11.2 showing selected VTCs for HRDP 2 infrastructure support as per the six selected provinces. Provinces

Selected VTCs

Selected

Trades

for Reserves

Selected Trades

Support NCD

Morata

Auto

mechanical, Limana

wielding & metal fab, carpentry & joinery, 87

Tourism & hospitality

plumbing Badili

Auto

mechanical,

wielding & metal fab, carpentry & joinery, plumbing ENGA

Pombapos

Welding & metal fabrication, carpentry & joinery

STC, Wap

Carpentry

&

joinery,

auto

mechanical,

plumbing

MOROBE

LATC, Laigam

Carpentry & joinery

Bulolo

Heavy & light auto St Therese

Tourism & hospitality

mechanical, carpentry & joinery, welding & metal fabrication Umi

Welding

&

metal

fabrication, mechanical, carpentry & joinery, plumbing ENB

Kabaira

Tailoring

& Kabaleo

Tourism & hospitality

embroidery, tourism & hospitality Raval

Carpentry & joinery, auto

mechanical,

electrical

E. SEPIK

Yawasoro

auto

mechanical, Skul

electrical, plumbing

Business management

Bilong Stoa Kipa

E.

Kamaliki

HIGHLANDS

Auto

mechanic, Basanaga

electrical,

plumbing,

Carpentry & joinery

Carpentry & joinery

11.5. Conclusion The LMNAS of the six HRDP 2 provinces is done purposely to analyse supply and demand of vocational trades to the provincial economies. Labour market activity is demand driven. Job seekers make both short-term and long-term career development decisions. Employers make 88

decisions pertaining to recruiting, business expansion, relocation, employee skill development, and employee compensation. In this case, VTCs play an important role in supplying the necessary skills and trades. This is done through planning, implementing and evaluating curricula and career guidance to meet the needs of both job seekers and employers. Government officials make policy regarding funding, design and operation of public labour market programs. Above all, the LMNAS provide predictions and general trends and development of labour market demand and supply of vocational technical skills and trades in each of the provinces. The study is demand driven and therefore, builds on these evidences, and insights gained from the analyses. The selected ten VTCs will be supported with the necessary infrastructure, tools and equipment and capacity building for them. This will enable them to continue to provide the cohort of lower secondary students of grade eight and ten with the necessary technical skills so that they can be to be available for jobs in their respective local economies and beyond.

89

12. Plotting Challenges and Opportunities in the Vocational Training Sector This part of the study reflects on the assessment and thoughts gathered on the analysis of the six province LMNAS of vocational sector. There are many lessons to be learnt from it and they should be able to enlighten and advise the TVET section of the DoE to make necessary changes to be effective in its role of planning, controlling, advising and executing the affairs of vocational education to the provinces. Similarly, for the provinces and VTCs in particular, they also need to critically view their own way of curriculum delivery and its relationship with the private sector to be more responsive to its technical needs. There could be others, however, the themes identified (below) by the study are stated for their seriousness and significance and some of them are listed as ‘recommendations’ for HRDP 2 consideration for implementation (in the subsequent part). They are listed and explained accordingly.

12.1. Demand for Skills Varies From the LMNAS, it is obvious that there is variance in the demand for skills by different segments of employers. There is also difference in the self-employment opportunities available to graduates of VTCs. What it means is that the respective labour markets of each of the six provinces is not homogenous and therefore has distinct skills requirements depending on unique economic situations. Although there is overlap in the non-technical skills across the segments, the demand for technical skills is unyielding and remains significantly industry and sector specific. This facet of the LMNAS findings is of specific relevance to the study and its recommendations for particular trades to be supported in the respective selected VTCs of the six provinces to address the skills gap based on labour market demand. This aspect of the labour market specification in the six provinces provides no common ground for the skill gap intervention as the demands are unique and therefore each requires specific training and curriculum development to address the skill deficiencies. Some relevant recommendations are presented in the subsequent part as suggestions to address this issue.

90

12.2. VTCs – Industry a Weak Link in the Provision of Demand Driven Technical Trades? Another point that can be made from the LMNAS is that there seems to be a weak link between the VTCs and industry in the respective six provinces. This particular point implies few things on the status of VTC trained graduates in particular and TVET products generally. First, the curriculum taught at the VTCs is outdated and therefore there is a mismatch between skills taught and those demanded by the industries. The lesson delivery is adversely affected with the lack of regular quality assurance mechanisms in place despite the existence of inspections but with little impacts on the improvements of staff and VTC overall performances. Second, there is inadequate physical and learning resources and low participation of the private sector necessary to mitigate the gulf that exist between labour market trade demand and supply of VTC graduates. What is obvious is a persistence of a culture that training is driven not by market based projections of future skill requirements but by convenience and necessity of what is available in terms of resources, material and human or lack of it. In other words, the VTC education is therefore not demand driven and attachments and linkages to industry are weak, poorly planned and inadequately supervised. The challenge is further worsen by the fact that there is hardly the adequate availability of tools and equipment to support curriculum delivery. Third, training for women tend not to be uniform and seem to be under represented in VTCs of the six provinces. They are usually the minority in the male dominated trades of auto mechanical, electrical, metal fabrication, plumbing and carpentry. However, they are mostly the majority in soft business areas such as tourism and hospitality, business management, tailoring and embroidery courses. Currently, there are fewer VTCs offering trade courses outside conventional trades from women therefore limiting the chances for most to benefit from such courses such information technology and land scaping. Box 11.1 provides a listing of obvious challenges and opportunities inherent in the vocational training sector in PNG (as discussed in this section of the LMNAS).

91

Box 12.1. Plotting challenges and opportunities in the vocational training sector Challenges and Opportunities in the Vocational Training Sector 

Demand for Skills Varies



VTCs – Industry a Weak Link in the Provision of Demand Driven Technical Trades?



Capacity Building Needs of Managers and Instructors



Importance of Soft Skills



Lack of Labour Market Information



Limited Application of Entrepreneurship Lessons in VTCs



Disconnect Between Employers, Communities and TVET



Peak Provincial TVET Council

Further, despite the VTC curriculum being centrally administered and inspected by DoE at the national level, the mode and number of trade courses have not changed in decades. Most of the VTC managers and teachers interviewed are of the view that the gap between market demand and course content is there because of the failings of the current TVET management system. Most of the respondents view that the current disconnect with supply and market demand of VTC trained graduates occur because the institutions have not be able to keep up with technological and industrial developments in the industry. Consequentially, many of the courses offered had become obsolete and redundant. Even further, they were not uniform and differed varyingly between the VTCs. The study also found that VTC courses offered focused primarily on trade specific skills. Other viable and more relevant personal enrichment courses such as life skills, entrepreneurship development and business management skills are not part of the regular curriculum at the VTCs. Fifth, from the LMNAS’s findings it is also obvious that trade (skill) relationship is highly dependent on the delivery of VTC training context. Not surprisingly, the current content of courses is heavily based on theory more than anything else such as practical learning. Industrial work placement is ad hoc and uncoordinated for many VTCs leaving most of the graduates to miss out on modern technology and industrial workplace learning. This leads to a mismatch between the training and the labour market expectations. For example, many VTCs 92

train students on the old engine models of motor vehicles despite the fact that the industry is miles ahead with new models. Unless the VTC graduates gain added training at the employment workplaces, they would be of little benefit to the industry.

12.3. Capacity Building Needs of Managers and Instructors As much as there is disconnect with VTCs and the industry, equally the knowledge the managers and instructors are departing to the vocational students are obsolete and therefore also disconnecting to the industry. It was obvious from interviews and focus group meetings the LMNAS team had with managers and instructors of VTCs that there was a clear need for capacity building in order for them to become more relevant to the ever changing industry. Apart from lack of tools and equipment being one of the major issues of VTCs, capacity building needs of the managers and instructors was also overwhelming that it compounded the complexity of the issues and challenges adversely affecting the institutions. Many of instructors had been trained some ten to twenty years earlier whilst others had superficial training in trades and therefore they admitted of not teaching up to the industry standards of skill dispensation. Many willingly would go for work attachments with industry and refresher courses to enable them to be compatible with the changing technology in the industrial workplaces.

12.4. Importance of Soft Skills The LMNAS found that the importance of VTC graduates having soft skills was equally critical as them having technical skills. The need for proper and pleasant manners and attitudes was emphasised in almost all the industry meetings the research team had in all the six provinces. There were specific examples stated in the meetings on VTC and other TVET graduates having issues with time management, attitude, safety and other necessary workplace protocols where they were struggling with as they performed on the jobs. A no-care attitude of “mi save” (“I know”) often hindered the absorbing of sound advice from supervisors and managers on the appropriate attitudes which needs to be displayed at the workplaces. As a result, the research team heard of incidents of accidents, lateness, absenteeism, disorderliness and laziness many a time manifested at the workplaces. This mode of behaviour was widespread in industries in all the provinces visited.

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Some of the industry representatives wanted soft skills taught as a separate course at the VTCs to complement the main trade teachings. The importance is evident as quality work delivery, particularly of the technical nature needed to be accompanied by right attitudes and behavours in demanding workplaces. The current crop of the VTC graduates coming into the labour markets were generally lacking soft skills. The onus is on the VTC to run courses and workshops on maintaining and possessing soft skills as a requirement to being successfully departing their trades at the workplaces.

12.5. Lack of Labour Market Information From the LMNAS findings, the absence of LMI at the institutional level is alarming, to say the least. The gap in the information of the employers/market linkage both in curriculum development and job placement is acute. In order to address this gulf, there is no mechanism in place at the VTCs for collecting information on the demand and supply of labour dictated by the labour market which can be utilised to guide course content or expansion of training programs. In discussion with the industry representatives, the study team found that there was no formal channel in place at the provincial level or at each VTC level for them to connect with them. Most of the requests and initiatives for taking on board students for practical were done on an ad hoc basis. So what the LMNAS finds is that most of the VTCs’ engagement with the private sectors in the six provinces was done on an informal basis. The initiatives were mostly carried out individually facilitated by heads of VTCs and the employers. However, there is lack of other supports at the VTCs as well, in terms of arrangements with the industry for internships or on-the-job training opportunities for graduates.

12.6. Limited Application of Entrepreneurship Lessons in VTCs There is limited but steady growth of small to medium enterprises (SMEs) in the studied six provinces. As much as VTCs supply graduates with appropriate technical trades to the provincial labour markets, ironically there is limited entrepreneurial courses run at the centres. Training is heavily emphasised on students as the workers for the industry and not entrepreneurs themselves. The lack of entrepreneurial lessons stem from few areas in the management and leadership of VTCs. These include limited exposure and mobility, lack of access to business support services and social networks, social-cultural factors perpetuating stereotypes of locals ‘as not fit’ to run business as well as lack of requisite entrepreneurial 94

skill set. Further, lack of capital appears to be on the top of most reasons dissuading VTCs from mounding courses on entrepreneurship and business development. If there were courses mounded on entrepreneurial skills, managing self-business should be the core foundation of such a program. Invitation of successful local entrepreneurs as guest speakers and excursions to SME sites should play an integral part in the delivery of such programs. However, the demand for such training is also non-existent presently because of limited exposure and disconnect with the labour and product markets.

12.7. Disconnect Between Employers, Communities and TVET The statement on disconnects between labour market and VTC training is obvious. The trades offered in application and content do not meet the demand of employers, industry and communities as the relevance of training with the job market, and development of selfbusiness is not there. The industry representatives interviewed acknowledged that VTCs had a critical role to play as the intermediary or bridge between the communities and the labour market. This link can only be strengthened if VTCs work closely with the industry, identify the market needs and update and expand the present training offerings.

12.8. Peak Provincial TVET Council The inherent deficiencies in the VES point to an obvious need for a peak establishment of a peak provincial TVET body in each respective province to spearhead, coordinate and advocate for technical skills. The absence of such a peak Council comprising stakeholders is reflective of the current ad hoc and disorderly management of technical affairs in the provinces where prioritisation of the discipline or field is low compared with other facets of education delivery such as primary education, secondary education and tertiary education. Once such a peak body is established the potential for importance for TVET trades and skills to be show cased and supported in the provinces is enormous for all stakeholders, least of all the graduates of the trades.

12.9. Conclusion The plotting of the challenges and opportunities in the vocational training sector shows results of potentials being underutilised and therefore suppressed. The discontent with the supply of training and demand for finished products in the form of VTC graduates is obvious with the 95

former not living up to the expectations of the industry. In order to mitigate the huge gulf between the supply and demand for quality technical labour from the VTCs, there needs to be a concerted effort from all stakeholders to work together to rectify the prevailing issue. The need for industry to play a prominent role in the shaping and development of VTC curriculum has been beckoning for decades and now the time has come for the respective provincial education establishments to offer them an invitation. Its participation will bring much needed enlightenment not only in curriculum but overall in the supply and demand relationship of quality technical trades. The embracement of the industry at the heart of VTC operations will attend to the ongoing issues with students’ lack soft skills, course offerings, LMI, entrepreneurial lessons and relationship extending to absorption of local communities. Until such improvements and inroads occur into these challenges, the VTC will continue to supply mediocre graduates to a sensitive labour market in acute needs of quality traded labour.

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13. Recommendations for Mapping a Way Forward This is the last part of the LMNAS. The study from the outset was not meant to come up with broad recommendations for mapping a way forward for VTCs particularly and TVET sector in general. As it was more confined to identifying gaps in supply and demand of technical trades and skills in order to assess industry demands and consequentially select VTCs for HRDP 2 infrastructure and other supports such as tools and equipment and capacity building. Whilst that has been fulfilled and done in the previous sections, it is fitting for such a study to consolidate its findings and offer key recommendations (see box 13.1) for strengthening the capacity building and trade skill training in the VTCs so that the impact of the HRDP 2 can be maximised. The LMNAS found some interesting findings of the VTC sector and its significance to the labour market dynamics of each of the six HRDP 2 provinces. The vocational sector is fraught with major issues and challenges as well as potential and promise for it to continue supply (quality) technical skills to the local economies. While the HRDP 2 Project will be aware of these deficiencies in its implementation of programs and activities in the six provinces, it will stay clear of a ‘single size fits all’ strategy. Instead it will tailor an intervention on the basis of demand of each private sector in each province in terms of trades needs as evidenced of the LMNAS. The following recommendations are posed as to map a way forward for HRDP 2 implementation.

13.1. Demand for Varying Skills and Trades The LMNAS found that each of the six provinces with the private sectors demand varying skills and trades as evidenced of their business activities. Market demand for certain skills and trades both in the formal and informal sector may lead to HRDP 2 supporting VTCs teaching them. The training of VTC managers and instructors facilitated by HRDP 2 will need to address both markets driven skills and trades demand as well as skills for entrepreneurships and livelihoods. The selection of VTCs with recommended trades to support for infrastructure, tools, equipment and capacity building in each of the six provinces is the fulfilment of HRDP 2’s goal.

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Box 13.1 outlines the recommendations for mapping a way forward for TVET, particularly VTCs.

Challenges and Opportunities in the Vocational Training Sector 

Demand for Varying Skills and Trades



Meeting of unfulfilled demand and creating of demand-driven training programs



Furnishing of Tools and Equipment as Integral to the Delivery of Trades Teaching



Think and Practice Entrepreneurial



Need for Soft Skills



Gender Sensitivity



Priority Interventions



Establishment of Partnerships between VTCs and Business Sector



Establishment of a PEAK Provincial TVET Council

13.2. Meeting of Unfulfilled Demand and Creating of Demand-driven Training Programs For the purpose of meeting of unfulfilled industry demand for trades and creating of demanddriven training programs, HRDP 2 will liaise with training providers and sponsor managers and instructors on relevant trade certificate courses which will equip them to return to their VTCs and deliver market demanded courses. To maximise demand, it is critical for HRDP 2 to prioritise certificate courses offered by refutable market leader training institutions which have customised, relevant courses which are consistent with the idea of matching training to the local labour market condition of the six provinces.

13.3. Furnishing of Tools and Equipment as Integral to the Delivery of Trades Teaching It is evident from the LMNAS that there is clear case of VTCs having little or no provision of appropriate tools and equipment to accompany trade and skill teaching. The present lack of adequate tools and equipment is a major worry the HRDP 2 will be addressing and for the selected VTCs it will be a huge benefit for them to having their training delivery complete for 98

the students to appreciate the availability of them. In the present scenario, teaching has been mostly theoretical and tools and equipment have been there in obsolete form or none existent at all leaving instructors to improvise on a daily basis. One of the primary goals of HRDP 2 is to furnish relevant tools and equipment to support trades that are demanded by the industry and it is fitting the Project is intervening at the right time to assist in producing marketable VTC graduates.

13.4. Think and Practise Entrepreneurial From the findings of the LMNAS, there is a need for more entrepreneurial activity happening in each of private sectors of the six provinces. While supply of VTC graduates is meant for enterprises mostly in the private sector, equally there is a yearning for them to also come up with their own initiatives and create jobs for themselves in the form of entrepreneurial activities. VTCs should be the right places to teach and instil entrepreneurial thoughts and spirits so that graduates can become creative and set up their own small businesses as a way forward rather than perceiving and acting as only workers for the industry. HRDP 2 is in the prime position to advocate for trainings of managers and teachers to be equipped with the necessary business skills so that they can pass on to their students as a holistic approach to addressing the demand of trade needs in the respective six provinces.

13.5 Need for Soft Skills It has been mentioned many a time in the interviews of the private sector that the lack of soft skills amongst graduates of TVET institutions was a cause of concern. In addition to the technical skills, HRDP 2 can also advocate for the inclusion of soft skills such as teaching of proper workplace attitudes in respect for authority, adherence to safety rules and time management as completing the technical skills in the VTC syllabuses. These skills can include effective workplace communication and interpersonal skills, conflict resolution, negotiation and management. These non-technical skills are equally as important as the technical skills and they can go a long way in moulding well-grounded workforce for PNG.

13.6 Gender Sensitivity HRDP 2 Project will ensure that gender sensitivity is maintained in all its programs and activities in advocacy of more girls and women as recipients. In PNG, women are the most 99

disadvantaged gender group and the Project will endeavour to balance the opportunities available in terms of support for infrastructure, equipment and tools, capacity building, governance and policy workshop attendance and participation. The study findings indicate the constraints of access and participation experienced by girls and women and HRDP 2 will mitigate these impediments in its impact on the vocational sector.

13.7 Priority Interventions The findings of the LMNAS indicate that the HRDP 2 will need to focus on a range of specific priority interventions in each of the selected VTCs of the six provinces. These needs are well-documented as this report or study manifests. They include the following components (see Box 13.2) and they are market driven. Box 13.2: Priority HRDP 2 interventions 

Infrastructure support to facilitate delivery of various select trades Tools and equipment



Capacity building (managerial)



Governance (Policy workshops)



Work attachments (for students and instructors)



Market-driven skills and development training programs



Establishment of labour market and industry linkages

The above interventions (see Box 12.2) may occur but there are possible other interventions such as tailored training programs for managers and instructors basing on needs and demands.

12.8 Establishment of Partnerships between VTCs and Industry So much has been said of the gulf between the VTCs and business sector and therefore the need to bridge it. Such initiatives will ensure internships and work placements for students of the sector. This kind of experiential learning should be a central and integral part of the curriculum. Such placements should be well organised and continuously monitored and evaluated. Such initiatives will ensure a labour market demand led dispensation of training at the VTCs which will be the direct response to the demand of the private sector. The HRDP 2 100

will facilitate in its activities and programs to ensure the establishment of the partnership between VTCs and business sector is forged and running in the six provinces. This will enable the emergence of a viable relationship between the parties which will facilitate VTC graduates to have easy access to seeking jobs. Further, the deliberate linkages should be established between industry and the VTCs especially in development of curriculum and attachment. A shift in this innovative direction of formation of relationship building the parities will enhance the relevance of a demand-led training offered at the institutions which will be only sustainable with the continued support of the business sector.

13.9 Establishment of a Peak Provincial TVET Council The establishment of this partnership between the two parties will be a starting point for stakeholders to come together to set up a peak TVET Council in each province to nurture and advocate for TVET skills and trades. A peak organisation once established would surely strengthen linkages with the industry. HRDP 2 can consider supporting the engagement of diverse stakeholders and leveraging support of joint platforms like the provincial Chambers of Commerce and Industry in the target six provinces. The Chambers can provide an important institutional access point to reach out to the local industry for job placement, apprenticeship and industrial attachments for the VTC graduates. Other relevant agencies, particularly the Provincial DLIR, Commerce and Industry, Agriculture and other private sector initiatives can also be leveraged and linked with the TVET to arrange for placement opportunities for the graduates.

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Asian Development Bank (ADB). 2013. Key Indicators for Asia and the Pacific 2012: Papua New Guinea, Manila: Asian Development Bank. Asian Development Bank (ADB). 2015. Development Effectiveness Brief: Papua New Guinea – Building Solid Physical and Social Infrastructure. Available www.adb.org/countries/papua-newguinea/economy/

AusAid., 2004, Papua New Guinea and the Pacific, Canberra: Department of Foreign Affairs and Trade. Australian Development Aid (AusAID). 2011. Needs Analysis Study of PNG Technical Vocational Education Training Colleges, Port Moresby: Australian Development Aid. Booth, A. 2009. Employment, Education and Skills Development in Papua New Guinea, Port Moresby: Institute of National Affairs. Department of Labour and Industrial Relations (DLIR). 2009. The need for balancing the employment between Papua New Guineans and Expatriates. A Discussion Paper, Port Moresby: DLIR. Filer C, Andrew M, Carr, P., Imbun, B.Y. and Sagir, B. 2014. Papua New Guinea. In: Betcherman G (ed.) World Development Report Companion Volume on ‘Jobs’ in the Extractive Sector, New York: World Bank (in press). st

Fraser, D. 1998, Managing the Papua New Guinea Labour Market for the 21 Century, South-East Asia and the Pacific Multidisciplinary Advisory Team, Manila: ILO Office. Geertz, C. 2000. Culture, Custom and Ethics, Cambridge: Polity Press. Government of Papua New Guinea (GoPNG). 2007. Vision 2050 Development Plan, Port Moresby: GoPNG. Government of Papua New Guinea (GoPNG). 2010. GoPNG’s Medium Term Development Strategy, Moresby: GoPNG. Howe, S., Mako, A. Swan, A; Walton, G., Webster, T. and Wiltshire, C. 2014. A Lost Decade?: Service Delivery and Reforms in PNG 2002-2014, Waigani and Canberra: NRI and DPC. Hughes, H., 2003, ‘Aid Has Failed the Pacific’, Issue Analysis No. 30, Sydney: The Centre for Independent Studies, pp. 1-32. Human Resource Development Programme (HRDP) 2. 2015. Programme Estimate 1, Waigani: Department of Education. Imbun, B.Y. 2006. Labour Market, Economic Development and Regional Economic Integration: A Bench Mark Study and Way Forward, Pacific Islands Forum Secretariat, Session Paper 2. Forum Economic Ministers’ Meeting, Honiara, 3-5th July. Available at:http://www.forumsec.org/resources/uploads/attachments/documents/FEMM%202006%20L %20Economic%20Development%20and%20Regional%20Economic%20Integration.pdf.

abour%20Markets

Imbun, B.Y. 2008. Rapid Assessment of Human Resource Development in Papua Province, Indonesia, Report prepared for ILO Jakarta Office, Indonesia, July, 2008. Imbun, B.Y. 2009. ‘Is the potential of labour’s contribution to development acknowledged in the Pacific island countries?, Pacific Economic Bulletin, 24(1): 96-112. Imbun, B.Y. 2011. Global Jobs Pact Country Scan of Samoa: Implications for Pro-poor and MDG Acceleration Policy Intervention, Report prepared for Government of Samoa, in consultation with ILO, Suva and UNDP, Apia, November, 2011. Imbun, B.Y. 2014a. Technical Assistance to the Melanesian Spearhead Group Skills Movement Scheme Memorandum of Understanding Implementation, Implementing Plan and Administrative Guidelines for Papua New Guinea, Intra-ACP Migration Facility, Brussels: ACP, May, 2014. 102

Imbun, B.Y. 2014b. “Look North Policy”, Asian investment and Papua New Guineans: a trinity formed for development?, in D’Arey, P., Matbob, P. and Crowl, L. (eds.), Pacific-Asia Partnership in Resource Development, Madang: Divine Word University, pp. 22-35. Imbun, B.Y. 2015a. HRDP 2 Provincial Selection Criteria for the Implementation of HRDP 2 in Papua New Guinea: An Evidence-based Approach, Paper prepared on behalf of HRDP 2 TAT, DoE, Waigani. Imbun, B.Y. 2015b. Minimum Wage Debates in a Developing Country Setting: Evidence from Papua New Guinea. Economic and Labour Relations Review, 23(1): 1-17. International Labour Office (ILO) (2008) Decent Work Country Programme: Papua New Guinea 2009-2012. Available at: http://www.ilo.org/public/english/bureau/program/dwcp/download/ papua.pdf (accessed 12 December 2012).

International Labour Organisation (ILO). 2009. Labour market information and analysis for skills development, Employment Sector, Employment Working Paper, No. 27, Employment Trends Unit, Geneva. International Labour Organisation (ILO). 2013. Asia Pacific labour market update. December. Available at: http://www.ilo.org/wcmsp5/groups/public/—asia/—ro-bangkok/—ilodocuments/publication/wcms_232657.pdf

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International Monetary Fund (IMF) (2013). Papua New Guinea. IMF Country Report No. 13/339. Johnson, P. 2012. Mining in Papua New Guinea – where do the benefits go?, National Research Institute, Discussion Paper, No. 124, Waigani. Kolo, P. 2009. Kikala stands by ‘illegal Filipinos’ report. PNG Post-Courier, 20 November. Lamotte, D. 2014. Speech at event of the Labour Law Reform Final Report Launch in Papua New Guinea, 9 July, Port Moresby. Mera A (2014) GoPNG approves raise in minimum wage: exemptions for agriculture and struggling businesses. The National, 25 June. Minimum Wages Board. 2008. Minimum Wage Board Determination, Department of Labour and Employment, Port Moresby. Montoya, M. and Au, R.A. 2013. South-South Labour Migration in Papua New Guinea: Which workers are filling the gap?, ACP Observatory on Migration. Gevena: ACP. National Research Institute. 2010. Papua New Guinea District and Provincial Profiles, NRI, Waigani. National Statistical Office (NSO). 2014. Preliminary Figures Papua New Guinea Census 2011. Waignai, NSO. Office of Higher Education (OHE) & Department of National Planning & Monitoring (DNP&M). 2010a. Papua New Guinea National Labour Market Assessment: DEMAND DATA REPORT. Waigani, August, 2010. Office of Higher Education (OHE) & Department of National Planning & Monitoring (DNP&M). 2010b. Papua New Guinea National Labour Market Assessment: SUPPLY DATA REPORT. Waigani, August, 2010. Papua New Guinea Trade Union Congress .2008. Submission of the PNGTUC and its Affiliates on the PNG Minimum Wage to PNG Minimum Wages Board, Port Moresby. PNG Tourism Investment Guide. 2012. Papua New Guinea. Available at: http://www.tpa.papuanewguinea.travel/PicsHotel/PNGTA/Brochure/TPAFactsheets/TourismInvestment-Guide-Review-First-Draft-2011.pdf. Post-Courier. 2011. ‘Prime Minister directs review of minimum wage. 18 August, Port Moresby. PriceWaterHouseCoppers. 2014 National Budget – PwC Commentary, https:www.pwc.com/en_PG/pg/budgetCommentary/assets/2014_png_national-budget-

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United Nations Development Programme (UNDP). 2013. The Rise of the South: Human Progress in a Diverse World – Exploratory Note on 2013 HRD Composite Indices, Papua New Guinea, Port Moresby: UNDP. United Nations Development Programme (UNDP). 2014. 2014 National Human Development Report: Papua New Guinea From Wealth to Wellbeing: Translating Resource Revenue into Sustainable Human Development, Port Moresby. United States Department of Labour. 2015. http://www.dol.gov/ilab/reports/child-l abor/papua_new_guinea.htm

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15. Annex 1: Questionnaires used in Provincial Missions Labour Market Survey Questionnaire: 1 HRDP 2 Provincial Labour Market Survey Questionnaire, May 2015 Business Enterprises Survey Province……………………………………….... Section 1: Organisational Particulars 1. Name of organisation……………………………………………………………………...... 2. Name of contact person and position……………………………………………………….. 3. Type of business (key activity)……………………………………………………………... 4. Nature of ownership: a) Fully locally owned ( ), b) Local and foreign owned ( ), c) Fully foreign owned ( ) 5. How long as this organisation been in operation? Between 1-3 yrs ( ), Between 4-6 yrs ( ), Between 7-9 yrs ( ) 6. How many workers employed in the organisation? Between 1-5 ( ), Between 6-10 ( ), Between 1115 ( ), Between 16-20 ( ), Between 20 and over ( ) Section 2: Labour Market Skill Needs Survey 1. What do you think of the potential for employment of Vocational Employment Training (VET) graduates in the province? Do not know ( ), Low potential ( ), High potential ( ), Very high potential ( ) 2. Which type of businesses particularly in need of vocationally trained graduates? ………………………………………………………………………………………………...... 3. What do you think are going to be the five most critical trade (skills) needs of your organisation (for example, carpentry, mechanics, plumbing, tailoring, etc.)? a)………………………………………………………………………………………………... b)……………………………………………………………………………………………....... c)……………………………………………………………………………………………...... d)………………………………………………………………………………………………..e)……… ………………………………………………………………………………………... 4. What steps have you been taking to secure critical trades (skills) in your organisation? a)……………………………………………………………………………………………… b)……………………………………………………………………………………………….. 5. What prevents your organisation or other employers (in formal and informal sectors) of the province from demanding (more) VET labour? 105

………………………………………………………………………………………………… 6. How do your organisation or other businesses meet their labour demand of VET trained graduates (currently and in future) in the province? ………………………………………………………………………………………………….. 7. Which and how many businesses are aware of opportunities for training vocational graduates? ………………………………………………………………………………………………...... 8. Are there any particular training courses for young women and what are their employment prospects? ………………………………………………………………………………………………...... 9. What prevents the VET labour (graduates) from offering (in sufficient quantities) the trade skills in need? ………………………………………………………………………………………………… 10. How could VET system be better matched with the employment demand and vice versa? ………………………………………………………………………………………………… 11. What do you think are current training needs of VET? ………………………………………………………………………………………………...... 12. What courses do you think are in demand at VET centres? a) Business courses b) Self-employment courses c) Self livelihood courses ……………………………………………………………………………………...................... 13.In what ways do provincial and national laws and policies are having positive or negative impact on the demand and supply of VET labour in your province? ………………………………………………………………………………………………...... 14. What are the challenges to VET employment creation in the province? ……………………………………………………………………………………….................. 15. Other comments on skills shortage and skills in your organisation and province? a) organisation trade skill needs………………………………………………………………... b) province trade skill needs…………………………………………………………………….

Thank you for completing this questionnaire on labour market survey for your organisation and the province

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Vocational Education Training (VET) Survey Questionnaire: 2 HRDP 2 Provincial Labour Market Survey Questionnaire, May 2015

Providers of VET Survey

Province………………………………………....

Section 1: Organisational Particulars 1. Name of organisation……………………………………………………………………...... 2. Name of contact person and position……………………………………………………….. 3. Type of Vocational Education Training (VET) courses undertaken at the Centre a) Business courses (please specify) b) Self-employment courses (please specify) c) Self-livelihood courses (please specify) d) Some or all of above (please specify) 4. Nature of ownership: a) Government ( ), b) Church ( ), c) Community ( ), Other ( ), specify ……………………………. 5. How long as this VET Centre been in operation?.............................................................. 6. How many students enrolled in the Centre ? ………………………………………………... 7. How many students have graduated from the Centre?.............................................................

Section 2: Labour Market Skill Needs Survey 1. What do you think of the potential for employment of VET graduates in the province? Do not know ( ), Low potential ( ), High potential ( ), Very high potential ( ) 2. Which type of businesses particularly in need of vocationally trained graduates? ………………………………………………………………………………………………...... 3. What do you think are going to be the five most critical skills needs for business enterprises in the province? a)………………………………………………………………………………………………... b)……………………………………………………………………………………………....... c)……………………………………………………………………………………………...... d)……………………………………………………………………………………………….. e)……………………………………………………………………………………………...... 4. Do you think your VET Centre is meeting some of the critical skills in its teaching of courses? If yes,

what

are

they?

If,

not

Why?

Please

reasons………………………………………………………………… 5. What courses are of demand in your VET centre? State them in order of importance. 107

list

a)……………………………………………………………………………………………….. b)………………………………………………………………………………………………... c)……………………………………………………………………………………………....... d)……………………………………………………………………………………………....... e)………………………………………………………………………………………………... 6. Are there any particular training courses for young women and what are their employment prospects? ………………………………………………………………………………………………… 7. What prevents your VET Centre teaching these courses of industry demand? ………………………………………………………………………………………………… 8. How will your VET Centre meet the labour demand of VET trained graduates (currently and in future) in the province? ………………………………………………………………………………………………….. 9. Do your VET graduates seek employment in the province (outside)? If yes, in what areas of business? If no, why? ………………………………………………………………………………………………...... Which and how many businesses are aware of the opportunities for training vocational graduates of your Centre? ………………………………………………………………………………………………...... 10. What prevents the VET labour (graduates) from offering (in sufficient quantities) the skills in need? ………………………………………………………………………………………………… 11. How could VET system be better matched with the employment demand and vice versa? ………………………………………………………………………………………………… 12.In what ways do provincial and national laws and policies are having positive or negative impact on the demand and supply of VET graduates in your province? ………………………………………………………………………………………………...... 13. What are the challenges to VET employment creation in the province? ……………………………………………………………………………………….................. 14. Other comments on skills shortage and skills in your organisation and province? a) organisation skill needs…………………………………………………………………….... b) province skill needs…………………………………………………………………………..

Thank you for completing this questionnaire on labour market survey for your organisation and the province 108

16. Annex 2: Key Stakeholders Consulted During Fieldwork Missions to the Six Provinces* Person

NCD

Sr. Maria Goretti Leison Allan Bland Kauri Sam Lora Paul Kia Oli Mark

Centre Manageress, Limana Vocational Centre TVET Coordinator, NCD Acting Assistant Secretary, NCD Education Services Vocational Coordinator, Southern Region Vocational Inspector, NCD

Rose Hagua Gabriella Evara

TVET Scholarship Coordinator, Moresby South Branch HR Manager, Brian Bell

Tau Kalogo Firu Evei Paul Speed Vergi Go Aria Ray Misina Joe Hopeho Novulu Sr. Maria G. Leison

PNG Mortors Ela Motors Steel Industry API Daikin AC NSC Manager, Koki Vocational Centre Manageress, Limana Vocational Centre

Sarah Y. Bune

Limana Vocational Centre

Patricia Geidilo Paul Noah Ruth Nare

Manageress, Maino Heduru Vocational Centre Maino Heduru Vocational Centre Minao Heduru Vocational Centre

Hillary Damke Gasi Gapana Gordon Awatan

Lions Morata Vocational Centre Koki Vocational Centre Manager, Badili Vocational Centre

Wasewa Kida Aron Walam

Badili Vocational Centre TVET Inspections

Was Rewatina Prisica Tombiam Ben L. Tamlele

ENGA Director, Education Enga Secondary School Coordinator SPA/Education Planner

Kelly Embo Judy Wasea Feldia A. Crega

Provincial Elementary Coordinator TVET Inspector Manageress, DEP

Maria Anton

Manageress, Kumbaskam Vocational Centre

Carolyn J. Bart

Manageress, Andait Vocational Centre

Saa Galilee Piaky Kaum

Manager, Porgera Vocational Centre Payroll Manager

Thomas Yawda

Manager, Wanepap Vocational Centre

Prisca Tombiam Chris Pata

Secondary Schools Coordinator Chairman 109

Tani Mar Fr. Peter Weo Henry Heno Penjore Pilyo Jim Kaikako Peter Nepo Jack Piso Kennedy Thomas Issac Jacobs Tony John Nickson Yanakan Ester Lukcas Aehemisah Yombon Gesengsu Aisi

DEA, Kandep Chairman, Pina Vocational Centre Manager Pim Enga Provincial Government Manager, Pompabus Vocational Centre Chairman Laigam Appropriate Technology Centre IT Technician Hardware Representative PELE Paspas Manager Project Office Manager Sales Manager Lupa Motel Manageress DioJJ Cost Price MOROBE Senior Secondary Inspector, Morobe

John Moses

Manager, Umi Vocational Centre

Moeas Kaupa Rex Tupa Lesley Tauedea Ashely Yoseni Winstanly Tnomba Mathias Ngatur Stella Sakai Tiv’aka Sopiong

Manager, St Joseph Vocational Centre Manager, Malang Technical High School Philco Joinery Lae Builders Lae Builders Principal Engineer Manager, St Francis Umi Vocational Centre Finshafen Vocational Centre

Ashley Yoseni Lina Tarubi Tracey Yapi Natalie Yapi Sugoho Kiong Vivian Yawal Rex Tupa Gissa Bokvra

Hornibrook Provincial TVET Coordinator Manageress, St Therese Vocational Centre NCS Holdings Ltd St Joesphs Technical High School St Joesphs Technical High School Malahang Technical High School St Francis Vocational Centre

Labnaba Wesley

Bulolo Technical High School

Samul Alfras Allan Pinjiki Rabi Geweling Berom Yawal Turaya Jerry Fexlx Meru Richard David Leonie Sianot

Umi Vocational Centre Bulolo Technical High School Bulolo Technical High School Manager, Bulolo Technical High School St Joesph Vocational Centre St Joesph Vocational Centre St Joesph Vocational Centre St Therese Vocational Centre

Honetara Enareka Albina Dumkalop Lina Wangki

St Therese Vocational Centre Malahang Technical High School St Therese Vocational Centre

Patty Gibson

St Therese Vocational Centre 110

Priscilla Nimivi Masi Philip Marx Tugu Mason Moli Raylyn Boka Winnie Saiau Watson Stanley Pou-uh Peken Misikaram Ningene Niuia Kilang Eruel Pait Excil Samson Dorish Tiamuruka Joy Geoba Raquel Tulo E. Pauria K. Lili R. Kavil Rennie Ends J. Oliver Wulia Gabriel Paitele Donald Jonah Damien Otto Constance Kanau Stanis Laliu Roselyne Boga Cathy Tasman Margaret Manua Joseph Vuia Leo Paskalis Benildus Jawai Kendy M Beno Kavie Joe Ruai Peter Karegl John Magbu William Tovua

Malahang Technical High School Umi Vocational Centre Menyamya Vocational Centre Manager, Menyamya Vocational Centre ENB Kabaira Vocational Centre Kabaira Vocational Centre Raval Vocational Centre Raval Vocational Centre Raval Vocational Centre Raval Vocational Centre Raval Vocational Centre Raval Vocational Centre Kabaira Vocational Centre Kabaira Vocational Centre Kabaira Vocational Centre Woolnough Vocational Centre Woolnough Vocational Centre Woolnough Vocational Centre Woolnough Vocational Centre Woolnough Vocational Centre Woolnough Vocational Centre Woolnough Vocational Centre Woolnough Vocational Centre Kabaleo Vocational Centre Kabaleo Vocational Centre Kabaleo Vocational Centre Kabaleo Vocational Centre Kabaleo Vocational Centre Vunamami Vocational Centre Vunamami Vocational Centre Vunamami Vocational Centre Raval Vocational Centre Raval Vocational Centre Raval Vocational Centre Raval Vocational Centre Raval Vocational Centre Raval Vocational Centre EAST SEPIK

Joseph Auli Shirley Korau Philip Waire James Sui George Ivut Philip Era Michael Ikau

Provincial Education Advisor, East Sepik Seaview Hotel Manager, Angoram Vocational Centre Manager, Wamangu Vocational Centre Deputy Headmaster, Hawain Technical High School Yawasoro Vocational Centre Chairman, Hawain Technical High School

Casmira Maleo

LLG Manageress, Angoram LLG 111

Joesph Charake Joachim Salin John Pais Robin Humom

Headmaster, Hawiain Technical High School Manager, SBSVC Manager, BNUC Managing Director, Uboi Enterpirse

Elias Numbuk

Manager, Wirui Vocational Centre

Sr. Mary Eyo

Deputy Manageress, Wirui Vocational Centre

Bernard Huanso Herman Kabai Daniel Salu

Manager, Yauatong Vocational Centre Chairman, Narakobi Vocational Centre Manager, Riverest Ltd

Karen Sim

Labour Officer, Department of Labour

Tony Narawen Joesph Kiagamba

TVET Advisor Provincial Labour Officer

Silas Smager

Manager, Kalagiu Ltd

Justin Bakaman

Manager, Boselek & Sons

Fidelis Kaski

Deputy Commander, CIS EASTERN HIGHLANDS

Robert Korao Patricia Keito

Provincial Education Advisor City Pharmacy

Regina Juwana Mathew Amino Benny Tosa Renson Fura Yawsi Yahi James Gamme Lau Sau Brandon Kipau Kevin Kondo Michael Nehema Akuue Warega Pogio Ghate Jobo Kogapogo Romeo Fepo Immy Yombu Richard Sawera Oluwe Papa Lizzy Bonny James Pooriri

Kortech Computing HOTS Limited Goroka Stationary 2EBS Stationary EHPA, Provincial TVET Coordinator EHPA, Division of Education PNG Power Ltd, Team Leader, Electrical PNG Power LTd, Power House Technician ICCC, Investigation Officer PNG Power Ltd, Power House Technician Farmers Hardware, Manager Managing Director, Goroka Stationary Bright Hub, Manager Boroko Motors, Auto Electrician Goroka Mobile Catering Service, Resource Officer TELEKOM, Electrician Kamalika, Teacher Kamalik Vocational Centre University of Goroka

Gabriel Kawage Rupen Tovi Billy Buori Deacon Kawage Baulogo Markus Alex Dawa

Mariahilfi Vocational Centre, Senior Motor Mechanic Instructor NATTB, Goroka NATTB, Goroka Board of Management, University of Goroka, TVET Teacher TVET Student, TVET Student 112

Carolyn Yabai Tonny Paran Mirriam Guhiha

TVET Inspector Okapa, TVET Centre Manageress, Gotomi Vocational Centre

Brian Oa

St Josephs Vocational Centre, TVET Senior Teacher

Ken Umasina

Manager, Kamalili Vocational Centre

Jackson Hiha Ben Niki Prikiwi Fokina Mathilda Muriki Morofa Meanopa Debbie Lukio Sali Siape

Deputy Manager, Gotomi Vocational Centre Basenegka Vocational Centre, Building Instructor Chairman, Gotomi Vocational Centre Basenengka Vocational Centre, Tourism Hospitality Teacher Kamaliki Vocational Centre Basenegka Vocational Centre, Senior Admin Teacher Basenengka Vocational Centre, Instructor, Plumbing

Ruben Gunurei Thomas Amero

Manager, Basenengka Vocational Centre Kamaliki Vocational Centre, Chairman

Ruben Gunurei

Manager, Basenengaka, Vocational Centre

Carolyn Yambi

TVET Inspector, EHP

Vavaga Mano Sir Peter Ipatas Chris Prince Andre Hannke Andrew Parker Richard Curtain Roland Dela Cruz Virginia Simmons Craig Fergusson Mary Morola Douveri Henao John Evans Jane Racancoj Nicholas Wakan

Deputy Manageress, Mariahilf Vocatioanl Centre SIGNIFICANT OTHERS** Governor of Enga TVET Advisor, ECDF Development Officer, HORIZONT 3000 Principal Social Sector Economist, ADB Public Policy Consultant, Curtain Consulting Training Manager, RAB WELD Virsis Consulting Senior TVET Adviser, ECDF Secretary, DLIR Executive Director, Business Council of PNG Knowledge Manager, UniBookshop First Secretary, Australian High Commission Senior Finance Officer, PPAP, Goroka

* The list is not complete. The names appearing are sample of the workshop attendees in the six respective provinces. An average of some 70 people attended the workshops. ** The ‘Significant Others’ were some of the people met with and discussed the LMNAS in the course of carrying out the missions. An entire list of the ‘significant others’ list is not possible to list here due to space constraints.

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17. Annex 3: List of Meetings Held During the LMNAS Phase in the Provinces Date 15 July, 2015 th

16th July, 2015

20th July, 2015

21th July, 2015

30th July, 2015

19th August, 2015

Place/ Participants Meeting at St Joseph, Kafeamo Conference Centre, Goroka, EHP – LMNAS Workshop for VTC managers and teachers and LMNAS Team and NAOSU Meeting at Bird of Paradise Hotel conference room, Goroka, EHP – Industry representatives and LMNAS Team Meeting at Enga Provincial Conference Room, Wabag, EP – LMNAS Workshop for VTC managers, teachers, entire provincial education leadership team, business and community representatives and LMNAS Study Meeting in Lupa Motel Conference Room, Industry representatives and LMNAS Team Meeting in Wewak Village Inn Conference Room, ES - Combined workshop for VTC managers, teachers and industry representatives and LMNAS Team Meeting at OLSH, Kabaleo VTC Conference Room, ENB – workshop for VTC managers and teachers

20th August, 2015

Meeting at Kokopo Village Resort Conference Room, Industry representatives and LMNAS Team

26rd August, 2015

Meeting at St Therese Vocational Centre Meeting Hall, MP- workshop for VTC managers and teachers

27th August, 2015

Meeting in Melanesian Hotel Conference Room, Industry representatives and LMNAS Team

7th October, 2015

Meeting at Hideaway Hotel, Six Mile Conference Room, NCD – workshop for VTC managers and teachers

8th October, 2015

Meeting at Hideaway Hotel, Six Mile Conference Room, – workshop for Industry representatives and LMNAS Team 114

Six

Objective Introduction, explaining HRDP 2, and outlining the objectives of LMNAS, stressing supply side of VET graduate labour Introduction, explaining HRDP 2, and outlining the objectives of LMNAS, stressing demand side of VET graduate labour Introduction, explaining HRDP 2, and outlining the objectives of LMNAS, stressing supply side of VET graduate labour

Introduction, explaining HRDP 2, and outlining the objectives of LMNAS, stressing demand side of VET graduate labour Introduction, explaining HRDP 2, and outlining the objectives of LMNAS, stressing supply and demand side of VET graduate labour Introduction, explaining HRDP 2, and outlining the objectives of LMNAS, stressing supply side of VET graduate labour Introduction, explaining HRDP 2, and outlining the objectives of LMNAS, stressing demand side of VET graduate labour Introduction, explaining HRDP 2, and outlining the objectives of LMNAS, stressing supply side of VET graduate labour Introduction, explaining HRDP 2, and outlining the objectives of LMNAS, stressing demand side of VET graduate labour Introduction, explaining HRDP 2, and outlining the objectives of LMNAS, stressing supply side of VET graduate labour Introduction, explaining HRDP 2, and outlining the objectives of LMNAS, stressing demand side of VET graduate labour

115