Delivery of Labor Market (LM) Demand-Driven TVET
By: Biru Asmare
Academic Vice President, TVET Programs
Human-resource development strategies in African countries aim to pursue the development of skills at all levels of the spectrum (low, intermediate, and high levels), but each country needs to emphasize the mix of skills that best corresponds to its stage of economic development and the needs of the local labor market Kingombe (2011). Skilled manpower which satisfies the labor demand of the different sectors of the economy is requied for the advancement of countries to have an economic shift from largely agrarian to an industry-based economy. Such skilled manpower that fit the middle level requirements of the industries is obtained from the TVET system of the different countries.

The Ethiopian TVET system was suffering a lot in fulfilling its basic objectives because it was a supply-driven system. Hence, it should be revitalized to introduce a paradigm shift towards a demand – driven system with a rationale of the deciding factor for success is not input or supply, but performance GTZ (2006).

Recognizing the importance of the programs of the government of Ethiopian undergoes reforms in the TVET programs. The reform was made to enable the TVET systems create a competent, adaptable and innovative workforce, contribute to poverty reduction and socioeconomic development through facilitating demand-driven, high quality TVET at all levels relevant to all sectors for all people in need of skills development.

As it is stated by Yekunoamlak (2001), one of the factors that determine the relevance of TVET is labor market demand. TVET training is always relevant only if it achieves to equip people with the right skills for any type of employment. The number of trained people and the number of skilled people required by the industry should be balanced.

In a supply driven systems TVET Institutions are providing trainings that are very outdated and not relevant to their labor market. They continue offering the programs because, “that’s the way we have always done it.” Even if the demand for some occupation is very weak, the training will continue for the sake of offering something. TVET trainees who are trained in a supply-driven system can experience very limited job opportunities & risk becoming unemployed.
In contrary trainees who pass with demand driven system will have various options for jobs at different level. Moreover they have also a chance to leave their job and start their own business because demand is high.
As it is clearly stated in Ethiopian TVET strategy document one of the guiding principles for the TVET system is Demand-orientation.

“All TVET in Ethiopia has to respond to the competence needs and qualification requirements in the labor market. TVET is geared towards enhancing the competitiveness of all economic sectors through a competent workforce and towards improving people’s employment in the labor market and with regard to self-employment.”

Based on the strategy, Ethiopian TVET system is an outcome based. The outcome based TVET systems basic requirement focuses on the identification of competences needed in the labor market which will become the final benchmark of teaching, training and learning. As it is clearly seen in the following figure of outcome based system, the supply which is facilitated by the TVET institutions should be harmonized with the demand led by the industry.

Source: Nigussie ( 2014)
The TVET system should emphasis on demand-driven vocational education and training through an intensive relation between TVET and the labor market by identifying the labor market policies, monitoring, career guidance, employment policies and other labor market activities and instruments.

The ultimate aim of vocational training is employment. Therefore TVET programs need to be linked to the job market. In this way, the socio-economic relevance of TVET can be enhanced. Then, TVET helps us to reduce the unemployment rate or prepare individuals to be employed in the labor market both in public or private and in the form of self-employment. A strong link between the world of work and training institutions shows the relevance of TVET Programs. Hence delivery of Labor Market Demand Driven training is state of the art in the current TVET systems.

In outcome based TVET system easy access to national and local labor market information is of vital importance in meeting the demands of the employers by providing the required labor force in quality and quantity.

TVET providers and industries are expected to use any time the Labor Market Information Systems. Because the analysis of labor market information (LMI) is a prerequisite for reorienting TVET to focus the offer on labor market demand. LMI concerns the supply side of the labor market – i.e. demographic developments, number of school leavers at different levels, number of unemployed by province and qualification profile, etc. LMI also concerns the demand for skills development/ upgrading and occupational qualifications in the labor market. On the basis of this information, the present and future demand for TVET can be analyzed to forecast skills needs – for example, skill shortage, skills mismatch, employment trends by sectors and occupations emerging markets, new investments, and economic opportunities in urban and rural areas.

1. (2008). National Technical & Vocational Education & Training Strategy: 2nd Edition,MoE.Ethiopia
2. (2010) Labor Market Information System for TVET Providers: MOE Addis Ababa.
3. Elkins, Krzeminski & Nink (2012). “Labor Market Analysis Leads to Demand-Driven TVET Programs”. Management & Training Corporation, Centerville, UT 84014, USA
4. Kahase (2011). “A Survey Study on the Link between Automotive Technology Training Program and the Labor Market Demand in Tigray Region: The Cases of Four Selected Technical and Vocational Education and Training Institutions. Addis Ababa: Addis Ababa University
5. Kingombe (2011). “Lessons, for Developing Countries from Experience with Technical and Vocational Education and Training Paper for the International Growth Centre – Sierra Leone Country Programme”. Sierra Leone.
6. Nigussie Gebre (2014). “Ethiopian Renaissance and TVET Reform at a Glance”
7. UNEVOC: International Centre for Technical and Vocational Education and Training.


8. Yekunoamlak A. (2001). “Comparative Analysis of TVET to Employment Opportunities in
Government and NGO Schools or Training Centers in Ethiopia”. Ethiopian Development Forum. Addis Ababa: MoE.