Low to middle income countries spend under 0.2% of GDP on vocational training

Low- and middle-income countries spend less than 0.2 percent of GDP on vocational training—less than half what high-income countries spend.

As they could certify their skills, they could move more easily across employers within a sector. The study showed that because many low- and middle-income countries lack the social insurance systems of wealthier countries, the ability to move quickly back into the workforce is essential.

These vocational and skills training programmes aim to build a strong labour force by preparing people for jobs in a particular occupation or sector through the provision of practical work experience and a certification or diploma which can help people get a job.

This has become increasingly recognised as a viable alternative to a college education as unemployed young people present a significant challenge for governments.

Not all professions require university studies to thrive, which is why it is particularly relevant for developing economies, where university degrees, whether obtained locally or abroad, are often out of reach or not aligned with employer needs.

Developed countries like Switzerland, Germany, and Finland have long histories of successfully incorporating vocational training to prepare students for the workforce. Many Big tech leaders, such as Bill Gates and Mark Zuckerberg, dropped out of college to gain hands-on experience in building their businesses.

How Pitman Training is making a comeback to foster vocational training

An August 2023 report by the World Bank, the International Labour Organization, and UNESCO found that technical and vocational education and training in low- and middle-income countries will therefore need to tap private financing

Luckily enough, investors might not be too hard to convince, according to an IMF report.

Economic growth in Africa and Asia is making expansion to those areas more attractive to companies such as Pitman’s, now owned by LaunchLife International, a franchisor of educational platforms.

Pitman Training, for example, is eyeing bringing its courses to Africa, drawn by a rapidly growing African middle class in an economy expanding faster than any other part of the world.

It aims to build on a legacy of helping women enter the workforce and already has partners in Nigeria, Zimbabwe, Kenya, and Ghana, with its training ranging from office and secretarial skills to software and web development.

Vocational training should be targeted at in-demand sectors

However, research shows mixed success for vocational training programmes, according to Lisa Corsetto-Poon, policy lead at the Abdul Latif Jameel Poverty Action Lab (J-PAL) at the Massachusetts Institute of Technology.

J-PAL reviewed 28 studies on vocational and skills training programs in countries ranging from Argentina and Bangladesh to Türkiye and the US and believes that these training programs do not always bridge the gap.

“But vocational training programmes don’t always successfully bridge this gap. Vocational training programs that are well-targeted towards in-demand sectors can ideally bridge the gap and provide a more viable alternative to a well-paying job than an expensive university degree, she said.

“Many labour markets see a mismatch between the types of jobs that college graduates have prepared for and expect and the job types that are actually hiring,” Corsetto-Poon said.

“Designing programmes carefully to include features that show the most promise and are appropriate for the given context is essential, she adds.