DOBRI MITREV: SKILLS DEVELOPMENT SHOULD BE PART OF ECONOMIC DEVELOPMENT STRATEGIES

"Labour market transformation requires a good understanding of what kind of skills will be needed, including in SMEs, to maintain sustainable employability, high levels of productivity and reduce labour shortages. Skills are key to a successful green and digital transition, but the list of challenges is long. If we fail to implement modern, comprehensive skills strategies at national and sectoral level, the skills mismatch we are already experiencing today will be exponentially larger in the future."

This was said by BIA President Dobri Mitrev during a discussion forum organized by the Economic and Social Council of the Republic of Bulgaria and dedicated to the European Year of Skills. The forum was held at the National Assembly and brought together MPs, representatives of employers, trade unions and civil society organizations. The event was attended by the Speaker of the National Assembly Rosen Zhelyazkov, the Minister of Labour and Social Policy Ivanka Shalapatova, the Minister of Education and Science Galin Tsokov, the chairmen of the relevant committees in the Parliament. During the forum, the ESC presented its opinion, prepared at the request of the Council of Ministers, related to changes in the Law on Vocational Education and Adult Education.

"Skills development must be part of economic development strategies. Skills need to match the need for innovation, new technology development, digitalisation and the green transition. Skills foresight plays a huge role in this respect. If we want higher value-added industries, we also need people with the right skills. Electronics is at the heart of new technologies. Bulgaria has a tradition in electronics and microelectronics, but now we need to build on previous technologies, skills, supply chains. In this regard, it may be interesting to share with you that BIA is participating in an international consortium ECoVEM to create new content and training, in the field of microelectronics, which are also available online", said the President of BIA.

Here is what else Dobri Mitrev said:

BIA's research shows that Bulgarian small and medium-sized businesses are also lagging behind in the process of adapting to the changes that are imposed within the digital and green transition. For example, only 20% of the surveyed enterprises say they have developed a digital transformation strategy and long-term investment plans for its implementation. Improving the digital skills of employees is also not among the top priorities of SMEs. At the same time, only around 19-20% of employees meet the standards required for their jobs and professions in terms of digital skills.

The data on participation rates in adult training show that the problems are not only in business and education, but also in the motivation and willingness of workers to learn and acquire skills throughout their lives. It is a phrase we hear often, but this does not make it a cliché, but an increasingly important and necessary concept for working life.

In this sense, we need a quick and smart reform of the education and training systems, and targeted work with business to help it not only in strategic planning, but also with concrete tools to adapt to the new realities. Including by developing curricula and training that meet its specific needs. We need to deploy information and motivation campaigns to promote the benefits of learning, and of acquiring new knowledge at every stage of employees' careers. Creating a culture of lifelong learning must become a public mission for all of us involved in social dialogue.

With regard to the vocational education and training system, it is clear to all that it is far from fulfilling its functions and achieving the objectives it is set. Despite the efforts made over the last 7-8 years and the changes made, including the introduction of the dual training system, it continues to prepare students for professions, nearly half of which (47%) are not in demand on the labour market. The loss is twofold. On the one hand, the state is investing in a system that is 50% ineffective, and on the other hand, nearly 10,000 students, every year, are receiving vocational training that will make them unmarketable in our economy. Separately, according to data from 2019, 37% of graduates of vocational classes do not receive a vocational qualification, which means that they either do not pass the exam or do not take it at all.

In this sense, we fully support the recommendations made in the opinion of the ESC on the amendments to the Vocational Education and Training Act. In addition, we believe that efforts should be made to:

• Optimise the network of vocational schools according to the needs and profile of local economies. Prohibiting the opening of vocational classes in general education schools in cases where their profile does not meet labour market demand.
• Establishing a comprehensive system for research, medium- and long-term planning and forecasting of skills and qualifications needs to enable vocational schools to adapt their programmes to the profiles and needs of local economies.
• Giving schools more freedom to change and adapt their curricula to the needs of the employers for whom they are training, without affecting the quality of education.
• Establish an external system for assessing the quality of vocational education that incorporates feedback from employers and young people who have entered the profession.

In conclusion, I would like to draw attention to another issue that is closely related to the topic of skills and quality workforce. This is the demographic problem. The ageing of the population is a fact, and the trend is for it to continue to worsen in the coming years. This requires, in addition to targeted measures to import labour from abroad, special measures to retain and extend the working lives of older employees and workers over 55. This is a reserve that we do not seem to pay enough attention to in this country, and it could prove crucial for the survival of certain professions (e.g. turners, welders, foundry workers). The obvious examples are in education and healthcare, but increasingly companies in other sectors of the Bulgarian economy are noting that they cannot find young people to replace their older workers. In this sense, one of the solutions that we consider important is to take special measures towards older workers by implementing flexible training programmes and adapting jobs and working conditions to their specific age needs.