a future skills strategy for bahrain _report4
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A Future Skills Strategy for Bahrain(2009 to 2016)
Skills Gaps Research Study
June 2009
Report to Tamkeen, Kingdom of Bahrain
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Disclaimer
INFORMATION ON WHICH THE SURVEY RESULTS ARE BASED
IS REPRESENTATIVE OF THE BEST INFORMATION AVAILABLE
AT THE TIME OF THE STUDYS FIELDWORK, CONSULTATIONS
AND PUBLICATION. ALTHOUGH GREAT CARE WAS TAKEN TO
ENSURE DATA QUALITY, LABOUR FUND (TAMKEEN) DOES
NOT GUARANTEE THE ACCURACY OR COMPLETENESS OF THE
SURVEY OR OF ANY INFORMATION PRESENTED HERE.
NEITHER THE LABOUR FUND (TAMKEEN) NOR ANY AGENCYTHEREOF, NOR ANY OF THEIR EMPLOYEES NOR ANY OF THEIR
CONTRACTORS, MAKES ANY WARRANTY, EXPRESS OR
IMPLIED, OR ASSUMES LEGAL LIABILITY OR RESPONSIBILITY
FOR THE ACCURACY, COMPLETENESS OR ANY THIRD
PARTYS USE OF THE INFORMATION CONTAINED IN THIS
DOCUMENT.
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The Allen Consulting Group ii
The Allen Consulting Group Pty Lt d
ACN 007 061 930, ABN 52 007 061 930
Melbourne
Level 9, 60 Collins St
Melbourne VIC 3000
Telephone: (61-3) 8650 6000
Facsimile: (61-3) 9654 6363
Sydney
Level 12, 210 George St
Sydney NSW 2000
Telephone: (61-2) 8272 5100
Facsimile: (61-2) 9247 2455
Canberra
Empire Chambers, Level 2, 1-13 University Ave
Canberra ACT 2600
GPO Box 418, Canberra ACT 2601
Telephone: (61-2) 6204 6500
Facsimile: (61-2) 6230 0149
Perth
Level 21, 44 St Georges Tc e
Perth WA 6000
Telephone: (61-8) 6211 0900
Facsimile: (61-8) 9221 9922
Online
Email: [email protected]
Website: www.allenconsult.com.au
Suggested citation for this report:
Allen Consulting Group 2009, Skills Gaps Research Study: Final Report A future strategy
for Bahrain (2009 to 2016), Canberra, Aus trali a.
Disclaimer:
While the Allen Consulting Group endeavours to provide reliable analysis and believes the
material it presents is accurate, it will not be liable for any claim by any party acting on such
information.
The Allen Consulting Group 2009
mailto:[email protected]://www.allenconsult.com.au/http://www.allenconsult.com.au/mailto:[email protected] -
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The Allen Consulting Group iii
Contents
Glossary
Report overview
vi
1
Future Skills Strategy: Vision and goals 1
The need for a Future Skills Strategy 3
Skills gaps in Bahrain 4
Implementation challenges 5
Four key focus areas 6
Future Skills Strategy: Assessing performance 12
Chapter 1 15
Introduction 15
1.1 Background to the study 15
1.2 Skills Gaps Research Study 17
1.3 Methodology for this report 19
Chapter 2 23
A future skills strategy for Bahrain 23
2.1 Rationale for a skills strategy 23
2.2 The future Bahrain labour market 24
2.3 Future skills strategy 262.4 Four focus areas 28
2.5 Possible solutions 29
Chapter 3 30
Overall skills initiatives for Bahrain 30
3.1 Introduction 30
3.2 Better matching of labour supply to labour demand 31
3.3 A national vocational apprenticeship program 34
3.4 A national transitions framework and careers education 35
3.5
Short courses and programs
36
3.6 National internship and scholarship programs 36
3.7 Investment in joint initiatives 37
Chapter 4 38
Focus area 1 !manufacturing 38
4.1 Manufacturing overview 38
4.2 Future labour market 38
4.3 Proposed solutions 40
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The Allen Consulting Group iv
4.4 Short-term proposed solutions (2009-2012) 40
4.5 Long-term proposed solutions 46
4.6 Summary 52
Chapter 5 53
Focus area 2 !health 535.1 Health overview 53
5.2 Future labour market 53
5.3 Proposed solutions 55
5.4 Short-term proposed solutions (2009 to 2012) 55
5.5 Long-term proposed solutions (2012 to 2016) 61
5.6 Summary 63
Chapter 6 65
Focus area 3 !tourism and hospitality 65
6.1 Tourism and hospitality overview 65
6.2 Future labour market 66
6.3 Proposed solutions 67
6.4 Short-term proposed solutions (2009 to 2012) 67
6.5 Long-term proposed solutions (2012 to 2016) 75
6.6 Summary 78
Chapter 7 80
Focus area 4 !a strong infrastructure and service base 80
7.1 Overview 80
7.2 Future labour market 81
7.3 Proposed solutions 827.4 Short-term proposed solutions (2009 to 2012) 82
7.5 Long-term proposed solutions (2012 to 2016) 86
7.6 Summary 89
Chapter 8 91
Education 91
8.1 Education overview 91
8.2 Future labour market 92
8.3 Proposed solutions 93
Chapter 9 94
Transport and logistics 94
9.1 Transport and logistics overview 94
9.2 Future labour market 95
9.3 Proposed solutions 96
9.4 Short-term proposed solutions (2009 to 2012) 96
9.5 Long-term proposed solutions (2012 to 2016) 101
9.6 Summary 104
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Chapter 10 106Construction 106
10.1 Construction overview 106
10.2 Future labour market 107
10.3 Proposed solutions 108
10.4 Short-term proposed solutions (2009 to 2012) 10910.5 Long-term proposed solutions (2012 to 2016) 115
10.6 Summary 116
Chapter 11 118Trade 118
11.1 Trade overview 118
11.2 Future labour market 119
11.3 Proposed solutions 120
11.4 Short-term proposed solutions (2009 to 2012) 120
11.5 Long-term proposed solutions (2012 to 2016)
123
11.6 Summary 125
Appendix A
Criteria for proposed solutions127
127
Appendix B 130References 130
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S K I L L S G A P S R E S E A R C H S T U D Y : A F U T U R E S K I L L S S T R A T E G Y F O R B A H R A I N
Glossary
BAPCO Bahrain Petroleum Company
BCCI Bahrain Chamber of Commerce and Industry
BIHM Baisan Institute of Hospitality Management
BIRD Bahrain International Retail Development
BLZ Bahrain Logistics Zone
BTI Bahrain Training Institute
CPP Career Progression Programme
CSB Civil Service Bureau
DMS Document Management System
EDB Economic Development Board
GDP Gross Domestic Product
GOSI General Organisation for Social Insurance
GPIC Gulf Petrochemical Industries Company
IATA International Air Transport Association
IBSA Innovation and Business Skills Australia
IHT International Health Tourism
ILO International Labour Organization
IMF International Monetary Fund
LMRA Labour Market Regulatory Authority
NESS UK National Employer Skills Survey
NIE National Institute of Education
OECD Organization for Economic Co-operation and
Development
RCSI Royal College of Surgeons Ireland
RPL Recognition of Prior Learning
SCTH Specific Council for Training and Hospitality
SME Small Medium Enterprises
TNA Training Needs Analysis
UB University of Bahrain
UNCTAD United Nations Conference on Trade and Development
UNESCO United Nations Educational, Scientific and Cultural
Organization
UTS University of Technology Sydney
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The Allen Consulting Group 1
Report overview
It should be noted by the reader that the data for the Skills Gaps Research Study
was collected during 2008 with the conclusions being finalised in June 2009. This
data is relevant to each of the four reports in the series of the Skills Gaps ResearchStudy.
Tamkeen has commissioned the Allen Consulting Group to conduct a
comprehensive study to analyse current skills in Bahrains labour market, as well as
future and emerging skills requirements, and to assess any current or projected
skills gaps. The key output of this study is a Future Skills Strategy (2009-2016).
Future Skills Strategy: Vision and goals
The Allen Consulting Group propose a Future Skills Strategy (2009-2016) that is
based on the key objectives of Bahrains Economic Vision: 2030, with some
additional development around how these objectives can be met through skills
development. This vision is one that:
" continues and builds on Bahrains national competitiveness ! especially
within the Gulf States, through improving the skills competency of the labour
force
" enables Bahrain to be the preferred country within the region to create and
grow a business ! through increased Bahraini labour force participation and
building on and improving the skills base of Bahraini workers
" contributes to improved social cohesion and inclusion ! by increasing the
skills and participation of Bahraini women and improving the productivity of
low-skilled workers in the labour market, with an intent to contribute to an
increase in income per capita to 2015.
The Future Skills Strategy (2009-2016), including the strategys vision and goals is
illustrated in Figure 1.
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Figure 1
FUTURE SKILLS STRATEGY (2009-2016)
Source: (Allen Consulting Group and Eidos).
In order to move in the direction of this vision, the Future Skills Strategy is based
on seven goals. These goals include a Future Skills Strategy that:
" builds on current skills initiatives ! that are making a significant contribution
to closing overall and sector-specific skills gaps, through strengthening and
refinement
" improves the skills competency of the labour force in prioritised economic
sectors ! each sector has its own unique requirements and there are some
sectors where the requirements for future skills are particularly acute. Further,
some sectors requiring a focus on specific technical skills for highly-skilled
workers, while other sectors require broad based foundational skills
improvement for low-skilled workers
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" improves Bahraini labour force participation ! in line with the key goals of
the National Strategy for Bahrain to ensure that labour reform is based on
Bahrainis as the employees of choice for the growing private sector
" better meets the need of labour demand ! through a flexible approach so that
the labour market and educational institutions can adjust to changing demands
and emerging needs
" enables a responsive labour market ! with business, government, the
education system and workers providing input into the strategys success.
Including to ensure that initiatives and action plans are well understood,
accepted and #ownedby these key stakeholders
" contributes to an improved eduction and training system ! one that achieves
outcomes (skills development) required to improve productivity in all sectors
of the economy
" monitors performance ! using the data from this study as a base, an ongoing
process of monitoring of progress towards goals and evaluation is in place to
ensure that continuous improvement is sought in light of the input for theresponsive labour market and review.
These goals have been developed based on the key principle that through their
achievement, the goals help to meet the vision outlined above. In order to determine
the appropriate set of goals, information was drawn from the inputs of the study (for
example, stakeholder consultations and international literature) and the intellectual
property of the Allen Consulting Group and Eidos project team to create a list of
potential goals. From this initial task, those goals that best met the key principle,
and would most likely help to meet the strategys vision, were selected to form the
basis of the Future Skills Strategy.
Envisaging the achievement of the seven goals, the overall impacts of the Future
Skills Strategy (as shown in Figure 1) are to:
" improve the overall skills competencies in the Bahrain labour market
" improve the stability of the labour market in the medium to long-term
" to improve the quality of life for people in Bahrain, through social cohesion
and inclusion.
The need for a Future Skills Strategy
A Future Skills Strategy is essential to support skills development to address labour
shortages in key occupations across Bahrain. Understanding and capturing the skills
and workforce needs of employers, and industry and translating them into future
strategies lie at the centre of a responsive and flexible system for skill and
workforce development.
However, these will be managed through a commitment to a strong and integrated
process, which meets the needs of industry and employers. The key drivers of this
strategy are:
" skills gaps in Bahrain at both the high and low end of the labour market
" a high expatriate workforce
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" changed industry requirements not reflected in the education system
" that the labour market is increasingly competitive
" that each of the identified sectors have different needs
" that sectors with low skills gaps have a high level of Bahraini employment
" to prioritise key areas to prevent dilution of effort.
Skills gaps in Bahrain
As identified above, one of the key factors that drive the need for the Future Skills
Strategy is that there are skills gaps present in the Bahrain labour market.
The international evidence suggests that global skills shortages are emerging at the
high and low end of the skills spectrum ! producing a polarised labour market
where there will be increasing demand for both manual/craft oriented skills and
higher level skills based on advanced computational skills and abstract thinking.
In addition, it is likely that there will be growing competition internationally toattract skilled labour. In the future, Bahrain will compete with other GCC States,
the United States, Western Europe, India and China for skilled labour. With an
increasingly mobile labour force, additional pressure will be placed on economies,
like Bahrain, that rely on imported foreign labour for both high and low skilled
workers (see Report 1 for greater detail on the international evidence on global
skills shortages and the growing competition for skilled labour).
This study shows that these international trends in skills gaps/shortages hold true in
Bahrain. In particular, the findings of the employer and employee surveys (which
are detailed for each economic sector in Report 2) undertaken as part of this study,
show the following:
" there are skills gaps at both ends of the skills spectrum, higher than demand formiddle management or intermediate skills
" there are skills gaps for broadly based skills in areas such as communication,
English language and customer relations skills. This suggests that the demand
for foundational, broad-based skills is high, more so than specific technical
skills and that a focus on skills development should be in this area
" a lack of vocationally trained $work ready graduates to fill existing vacancies
and to cater for future growth
" a growing number of female university graduates seeking highly skilled
positions in a number of economic sectors
" Bahraini graduates and employees have a preference to work in specific
sectors ! for example, in public administration, business services, and finance
and banking. There was a lower preference (and potential future participation)
in other sectors, such as tourism and hospitality, manufacturing and
construction. Financial, cultural and perceived work environment factors were
identified as the major reasons behind these preferences.
Further, some of these findings have also been drawn from the outcomes of the
Skills Gaps Conference and scenario planning activity, both of which are detailed in
Report 3.
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In addition to these findings, it is important to note that the occupational analysis,
drawn from the employer survey, highlighted a number of specific occupations that
will be in demand over the next 3 years (see Report 2 for further information by
economic sector). These identified occupations cover the spectrum of skills needs
! for highly skilled technicians to employees with a need for greater foundational
skills. This information together with the findings from the employer survey itself
re-iterates the need for skills development in both the high and low ends of the
skills spectrum.
Bahrain faces similar skills and labour challenges as it GCC neighbours ! it is very
similar in terms of the age profile of the labour force, expatriate workforce
composition and unemployment trends. Where the difference is most marked is in
the makeup of employment ! Bahrain has a more diverse workforce than its
neighbours, which provides an opportunity to carve out a distinctive competitive
position (see Report 1 for greater detail on the demographics of Bahrains labour
force compared to other GCC States).
The present global economic crisis will in the immediate future mask the
underlying trends, with a prospect of a return to rising global unemployment in the
next three to five years. As mentioned above, over the longer term, the likelihood is
that there will be increased competition for skilled labour globally. This places an
even greater premium on the importance of taking advantage of current economic
conditions to build future skills for the Kingdom of Bahrain.
Key proposals have been utilised in the strategy with an aim to address the problem
of skills gaps in the labour market. These proposals include:
" better matching of labour supply and labour demand
" introducing a national vocational apprenticeship program
" a national transitions framework and careers education
" increasing the number of short courses and programs
" expanding the national internship and scholarship program
" investing in joint education initiatives with international universities.
The evidence of skills gaps in Bahrain, in addition to the presence of the other key
drivers identified above highlight the skills problem that faces Bahrains labour
market. Key proposals have been identified that will enable clear action to be taken
to address this problem, for which the Future Skills Strategy provides guidance and
planning.
Implementation challenges
This Report provides a series of proposed detailed actions to be undertaken in both
the short-term and the long-term future in order to address skills gaps, in line with
the strategy outlined previously. Implementing these actions will be challenging:
they will require a strong commitment of time and attention; financial and staffing
resources; political, industry and community support; and ongoing data collection
so as to track progress in achieving desired outcomes.
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The main challenges identified in earlier reports were based on evidence from focus
groups, interviews and scenario planning. They included:
" teaching is a relatively low status profession % a characteristic of many
developed economies, not only Bahrain (see Report 2, p. 51). This will be
constraint on the action plans. A shortage of skilled, high quality teaching and
training professionals will limit the capacity of Bahrain to fill skills gapsthrough education programs, whether in the school and higher education
sectors directly or through short courses
" engagement of skilled staff can be time consuming and complex (for example,
see Report 2, p. 83, in relation to health professionals)
" reported poor working conditions in some sectors (for example construction,
see Report 2 page 124) were seen as discouraging Bahrainis from working in
the sector
" some sectors such as tourism and hospitality have difficulty attracting a skilled
workforce for cultural reasons: for example, where positions involve working
with alcohol or extensive contact with non-Muslim customers; skills formationwill not be able to address these deeper concerns (Report 2, chapter 14).
These concerns were also important considerations in a high-level scenario analysis
and canvassed in a regional conference on skills (see Report 3).
The most important strategy for addressing the challenges % especially, limitations
on the capacity to implement actions due to a shortage of training staff % is to set
priorities so as to allocate limited resources to their most valuable use. The
following two sections of this Report provide more detail on this approach.
Four key focus areas
For this action to take place, some level of prioritisation needs to be included toensure that this action is in sectors where there is likely to be the most benefit to the
labour market and economy as a whole. Prioritisation is especially important given
it is clear that the labour market is increasingly competitive and that different
sectors have different skills needs.
For the purposes of this strategy, prioritisation will focus on those sectors where
there is an acute skills gap and that are expected to be key strategic sectors in the
future. In order to determine key focus areas (economic sectors), a subjective
assessment was undertaken on sectors that best meet the following criteria:
" a significant contribution to economic growth
"
significant skills gaps" solid current strengths and future opportunities for skill development
" potential of skills formation to enhance Bahrains international
competitiveness
" consistency with the Economic Vision 2030.
Education reform will have significant impact on relevant skills gaps. However, for
all economic sectors, this impact of changes to the education system was assessed
as high and was constant across the key focus areas.
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Using these criteria as a subjective assessment tool, the following sectors were
identified to be the key focus areas under the Future Skills Strategy:
" health
" manufacturing
" tourism and hospitality
" infrastructure and service (including public administration, business services,
telecommunications and information technology).
Possible solutions under each of these focus areas were developed (some possible
solutions were also developed for the other economic sectors) to create action plans.
To identify, out of all of the possible solutions, which should be selected as part of
the Future Skills Strategy, a similar subjective assessment approach to identify the
key focus areas (described above) was used. In this case, possible solutions were
selected based on those that best met the following six selection criteria
(see Appendix A for further information):
" meets a goal (or goals) of the strategy
" is achievable
" is likely to be cost-effective
" has some support among stakeholders consulted
" provides an outcome quickly
" aids development of a strong private sector.
Each of the key focus areas, the possible solutions (short-term and long-term) that
form sectoral $action plans, and how these solutions address the goals of the
strategy are summarised below.
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Manufactur ing
The manufacturing sector was selected as the first key focus area because it is
expected to have a high contribution to economic growth, has high levels of skills
gaps, a moderate number of current strengths and future opportunities for skills
development, and is also a sector that holds consistency with the Economic Vision
2030. The possible solutions for the manufacturing sector are illustrated in Figure 2.
Figure 2
POSSIBLE SOLUTIONS MANUFACTURING
Source: (Allen Consulting Group and Eidos).
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Health
The health sector was selected as the second key focus area because it is expected
to have a moderate contribution to economic growth, has high levels of skills gaps,
a number of solid current strengths and future opportunities for skills development,
and is a sector that holds consistency with the Economic Vision 2030. The possible
solutions for the health sector are illustrated in Figure 3.
Figure 3
POSSIBLE SOLUTIONS HEALTH
Source: (Allen Consulting Group and Eidos).
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Tourism and Hospita l i ty
The tourism and hospitality sector was selected as the third key focus area because
it is expected to have a moderate contribution to economic growth, has high levels
of skills gaps, a number of solid current strengths and future opportunities for skills
development, and is also a sector that is consistent with the Economic Vision 2030.
The possible solutions for the tourism and hospitality sector are illustrated inFigure 4.
Figure 4
POSSIBLE SOLUTIONS TOURISM AND HOSPITALITY
Source: (Allen Consulting Group and Eidos).
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Inf rastructure and service
The groups of sectors that make up the final key focus area ! infrastructure and
service include:
" public administrat ion
" business services
" telecommunications
" information technology.
As a group, this key area was selected because it is expected to have a high
contribution to economic growth, has moderate levels of skills gaps, extensive solid
current strengths and future opportunities for skills development, and is also a
sector that is vital to the Economic Vision 2030. The possible solutions for the
infrastructure and service key focus area are illustrated in Figure 5.
Figure 5
POSSIBLE SOLUTIONS
INFRASTRUCTURE AND SERVICE
Source: (Allen Consulting Group and Eidos).
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Future Skills Strategy: Assessing performance
The Skills Strategy presents an integrated set of solutions aimed at developing a
continuous improvement cycle for review. The following elements should be
undertaken in a disciplined manner to monitor performance:
"
performance management
" performance indicators
" continuous improvement
" review.
Tamkeen will continue to measure the performance of the Skills Strategy over the
lifetime of the strategy. Quantifiable performance measures will allow a true
indication of Bahrains performance.
Implementation of the Skills Strategy will follow an annual cycle to 2016. The
implementation cycle will incorporate yearly updates of the Skills Strategy,
including the announcement of any new initiatives. Tamkeen will maintainresponsibility for updating and maintaining the currency of the Skills Strategy.
The active involvement of Tamkeen allows for the first time in Bahrain, a strategic
approach to skills development and highlights a need in Bahrain to act across a set
of targeted areas. Many of the possible solutions are demanding and a coordinated
and concerted effort by employers, education institutes, industry and the
government will be required to meet them. Collaboration in the development and
implementation of skills, infrastructure and innovation strategies will continue
throughout the life of the Skills Strategy.
The Skills Strategy will drive Bahrains skills development activity alongside other
key strategies being developed, such as those from the Economic Development
Board and other educational institutions.
Foundat ional ski l ls and educat ion
A skills gaps strategy needs to strike an appropriate balance between skills
identified as important for specific industry sectors, and broadly based skills that
have general applicability across a range of sectors. Both are important for building
a highly skilled, competitive labour force. As identified in the United Kingdom
Report Prosperity for all in the global economy - world class skills (the Leitch
review of skills):
There are a large number of different types of skills and they can be split into a number of
different categories. Basic skills, such as literacy and numeracy, and generic skills, such as
team working and communication, are applicable in most jobs. Specific skills tend to be less
transferable between occupations. (Leitch, 2006)
As outlined in Report 2, the data derived from interviews, focus groups and surveys
strongly support a conclusion that basic and generic skills are in high demand. In
the context of Bahrain, a more accurate term might be foundational skills.
Foundation skills are those that Bahraini employers see as providing a firm base on
which further industry specific skills can be built, either through training courses or
through on-the-job learning. A summary of these findings is in Box 1.1 below.
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Box 1.1
FOUNDATIONAL SKILLS ! FINDINGS FROM REPORT 2
In the education sector, the most commonly identified skills required by private education
providers were communications skills (15 per cent of those surveyed) and leadership and
management skills (also 15 per cent). The top skill sets identified by employees as
highly important to their work were literacy, work communication, checking skills,
problem solving skills and customer communication.
In health, although a technical sector where specialized skills were in high demand, there
was nevertheless strong demand for management skills, and identification by health
education institutions that English language skills were in need of development for a
significant number of students.
The public sector was one where comparatively skills gaps were lower (due to the high
skills profile and level of Bahra inisation in the sector); here the foundational skills in most
demand were management and leadership skills.
Survey participants in the construction sector identified communications, problem solving
and checking skills as in high demand; employers noted that technical know-how and
physical skills were the most important needs, but these were followed by literacy and
work communications skills.
In the transport and logistics, information technology and telecommunications sectors,
aside from the high level technology skills required in these sectors, the most important
identified gap was in management skills.In business services and trade, the predominant foundational skills identified were
business communicat ions, literacy, and customer service skills (more frequently
identified in interview data than in other data source for these sectors).
Manufacturing skills gaps were identified in areas such as computational and
communications skills, although ! uniquely to this sector - there was a significant number
of responses identifying engineering as a crucial skills gap.
In tourism and hospitality, employers, employees and graduates surveyed identified
workforce communication and customer communication as key skills. Interviews and
focus groups strongly reinforced these findings.
Source: Surveys, interviews and focus groups
These results suggest that a skills strategy for Tamkeen will need to fosterfoundational skills as well as sector-specific training. A high level of foundational
skills in common across the Bahrain trained workforce would have the additional
benefit of encouraging labour market mobilit y, which will assist the Bahrain
economy to be more adaptive to changes in economic conditions. The foundational
skills in highest demand across all sectors were:
" management
" literacy
" communications
" customer relations.
The proportion of spending to be allocated to foundational skills, versus direct
industry skills, will need to be determined by the Tamkeen Board. As a starting
point for considerat ion, the evidence from stakeholder consultations would suggest
that a high proportion (for example, fifty per cent or more) of spending on skills
gaps should be targeted to meeting foundation skills needs.
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Part AIntroduction
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Chapter 1
Introduction
1.1 Background to the study
Tamkeen
Tamkeen (formerly Labour Fund) was founded in 2006 with the primary objectives
of developing the private sector and making Bahrainis the preferred choice for
employers. Tamkeens goal is to create high-value added jobs for Bahrainis.
Tamkeens strategy focuses on:
" capitalising and developing value added Bahraini talents and skills in
rewarding careers
" supporting the development and attraction of new and emerging industries
" enhancing and leveraging existing industries.
More recently Bahrain has taken vital steps towards comprehensive labour reform
aimed to develop its human capital, support the private sector and liberalise and
improve inherent market systems, standards or policies.
Successful reform of Bahrains labour market will affect the whole economy. In
particular, it will raise Bahraini living standards by challenging private and public
sector establishments to improve employment services, policies and standards and
the working conditions within Bahrain.
Econom y in brief
Bahrain has a long history as a regional centre for trade and commerce. In more
recent times, since the 1930s when oil was discovered, the countrys economic
prosperi ty has been based largely on oil revenues. These have been the main
contributors to national income over the past half-century. Oil revenues have
enabled development of extensive, high quality national infrastructure, and allowed
the government to provide Bahraini citizens with services such as free education
and free or very low cost health care, with minimal taxation. More recently, other
industry sectors ! notably banking and finance ! have become increasingly
important.
Bahrains policy makers have identified the need for longer-term investment
outside the oil sector, for two main reasons.
Firstly, there are the dangers of natural resource income distorting patterns of
economic development. Secondly, Bahrains oil resources are limited, and the
government has prudently sought to develop a strategy for a future where the
country will not be able to rely on oil as the major source of national income.
Current economic development strategies and initiatives aim to mitigate the
potentially significant impacts of this situation. Prominent among these to date, has
been the successful effort to develop Bahrain as a regional provider of financial
services and establish its position as a leader in Islamic banking and financial
services.
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Bahrains economic diversification strategy, shifting focus to non-oil sectors and
industrial and commercial success, has been making notable progress over the last
two decades. As a result, 75 per cent of Bahrains Gross Domestic Product (GDP)
in 2007 was attributable to non-oil sectors (Central Informatics Organisation 2008).
Among the economic successes of the nation, there remain some key issues that
have the potential to act as barriers to future economic diversification. An exampleis that income inequality is high compared to other developed nations with few
middle-income households and many low income households.
In addition, the labour market is expected to change significantly over the coming
decade. These changes include:
" new Bahrainis will enter the labour market, many of whom will be recent
graduates (from either high-school or post-secondary studies)
" an increasing number of Bahraini women will enter the labour market
" those currently unemployed and lacking skills to enter the labour market will
improve their skill base in order to participate in the workforce (Economic
Development Board 2004).
Continuing the aim of economic diversification, Bahrains Economic Development
Board (EDB) has been focussed on a sustainable future for Bahrain. In 2004, the
EDB launched a comprehensive National Strategy for Bahrain to ensure future
sustainability. This strategy aims to:
" re-capture Bahrains leadership position as the pre-eminent economy in the
region
" become the preferred country within the region to create and grow a business,
by both nationals and foreigners
"
achieve a more than two fold increase in income per capita by 2015 (EconomicDevelopment Board 2005).
The strategy consists of three components, which are outlined in Error! Reference
source not found..
Box 1.1
COMPONENTS OF THE NATIONAL STRATEGY FOR BAHRAIN
Enabling the private sector:
" the removal of barriers to growth such as access to capital, land, judicial and legal
infrastructures
" specific sector initiatives to accelerate growth in strategic sectors
" dedicated Small Medium Enterprise (SME) initiative and investment promotion.
Transforming government:
" reducing red tape
" moving from owner-operator to facilitator
" creating a modern civil service.
Investing in people:
" labour market reform
" education system reform.
Source: (Economic Development Board 2005)
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The reforms aim to ensure that the private sector is the driver of future growth in
Bahrain and that Bahrainis are the employees of choice for this growing private
sector (Economic Development Board 2005).
Bahrain has made a strong investment in education, skills and diversification. There
has been a rapid increase in educational standards since the 1980s, and at the same
time a strong increase in the size and value of the services sector. However, thereliance on foreign workers to address the shortage of skilled labour during a period
of rapid growth, perpetuated by mismatches between the profile of skills possessed
by Bahraini nationals and those required in the labour market, is a significant issue
to be addressed.
Economic observers (including the United Nations, IMF and others) have
commented on the importance of resource rich nations investing in human capital.
Bahrain has adopted a far-sighted program to do exactly this. This Skills Gaps
Research Study is one element of that broader strategy.
1.2 Skills Gaps Research Study
Tamkeen has commissioned the Allen Consulting Group to conduct a
comprehensive study to analyse current skills in Bahrains labour market, as well as
future and emerging skills requirements, and to assess any current or projected gaps
and needs.
The study aims to build on reforms in place and improve the quality and quantity of
skills being developed, in order to ensure that Bahrain maintains a strong
competitive economy and high quality of life.
The project will provide an information base to underpin strategies to improve
labour force participation, and responsiveness to the demand for skills using a
flexible, market based approach. The objectives of this project are outlined in Box
1.2.
Box 1.2
OBJECTIVES FOR THE SKILLS GAPS RESEARCH STUDY
1. To establish a detailed understanding of the current composition of the Bahraini
workforce " the deliverable at this stage will be a set of data on current labour
market conditions, skills and components.
2. To provide analysis of the gaps in the current skills makeup in light of projected future
demands. This will be identified on the basis of in depth analysis of the likely
demands from both current employers and prospective new industry sectors.
3. To develop a strategy for overcoming such gaps. The strategy will be based on the
most contemporary thinking in economics and labour market analysis.
4. Provide action plans that give clear guidance for identified priority sectors on how to
implement the strategic directions proposed.
These objectives have been addressed in a series of four related reports (see Box
1.3).
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Box 1.3
SKILLS GAPS RESEARCH STUDY REPORTS
Report 1: Skills Gaps Research Study: A Comparable Country Scan:
This report provides an outline of the international environment in which Bahrain
operates and which determine Bahrains points of national advantage. It also considers
how a sample of other comparable countries have aided skill development in the past.
Report 2: Skills Gaps Research Study: Sectoral and Skills Gaps Analysis:
This report outlines a baseline for the labour market and associated skills in Bahrains
industry sectors, forecasting the labour and skills needs for each sector into the future
(assuming no predicted changes to the status quo) and identifying skills gaps within each
sector. It also identifies strengths, weaknesses, opportunities and threats in terms of the
labour market in each sector and associated skills gaps.
Report 3: Skills Gaps Research Study: Future Skills and Workforce Needs:
This report summarises the key lessons drawn from the scenario planning exercise and
the Regional Conference on Skills Gaps, conducted in Bahrain in November 2008. The
report highlights key findings that will contribute to the outcomes of the future strategy.
Report 4: Skills Gaps Research Study: Final Report
This report identifies the future needs of the Bahraini labour market and associated skills
gaps using the information collected in each of the previous reports and incorporating
economic modelling of this information.
The report provides an overarching strategic framework and includes sectoral actionplans that will address the future strategy.
The Skills Gaps Research Study is one piece of a broader spectrum of issues that
relate to the labour market and skill development. Other key issues such as labour
market reform (including skill development concessions such as the current training
levy scheme), wage policy, labour laws, the education system structure and
Bahrains inherent cultural and social values are not addressed within the scope of
this study (see Figure 1.1). Although these are important areas for consideration in
national skills policy, they are well beyond the mandate of an external consultantsreport; rather, they are matters for national determination by senior policy makers in
the Kingdom of Bahrain.
This study has been specifically targeted to identify and create strategies to address
future skills gaps in Bahrain. Specifically, the Allen Consulting Group are using a
definition of skill as $a proficiency or facility that is acquired or developed through
education, training or experience to ensure that the study meets its objectives
(see Box 1.2).
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Figure 1.1
THE MANY FACETS OF THE LABOUR MARKET
Source: (Allen Consulting Group and Eidos).
The Skills Gaps Research Study builds on previous work undertaken in Bahrain on
skills development, such as a skills development analysis by McKinsey & Company
for Tamkeen, and a study of Skills Gaps & Competency Requirements for the
Financial Services Industry by Ernst & Young Bahrain for the Human Resources
Development Fund. Although the Skills Gaps Research Study is based on a unique
methodology, key findings and lessons from these and other previus research
programs have been drawn on to inform the study.
1.3 Methodology for this report
The methodology for Report 4 draws on the information collected and analysed in
all of the previous three reports that make up the Skills Gaps Research Study. Theobjective of Report 4 is to:
" develop a strategy for overcoming future skills gaps based on the most
contemporary thinking in economics and labour market analysis
" provide action plans that give clear guidance for identified priority sectors on
how to implement the strategic directions proposed.
The strategy and action plans in this report do not consider the petrochemical or
banking and finance sectors, given that both sectors are well developed and already
have well developed skills strategies in place. However, they do provide excellent
models for an effective Bahraini approach to addressing skills gaps, and the
experience of those sectors has provided valuable insights to assist in developingaction plans for other sectors.
In order to develop an effective future skills strategy for Bahrain five main tasks
were considered:
" understanding the rationale for the future skills strategy for Bahrain, including
the objectives of the strategy
" determining an effective skills strategy framework to highlight how the
objectives of the skills strategy will be met
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" developing a high-level skills strategy including focus areas in order to
prioritise skills gaps in economic sectors
" identifying the overarching skills initiatives for Bahrain from which the
majority of the solutions in each of the focus areas can be drawn
" developing action plans for each of the focus areas (and in a shorter form for
other economic sectors) that detail $what to do and $how to do it as a means
of achieving the strategys objectives.
Each of these five tasks have been completed and documented in Part B and Part C
of this report. The action plans in Part B have been prioritised given the importance
of the focus areas identified and hence are more detailed than the action plans in
Part C.
In addition to developing action plans, a structure has been drawn to ensure that
action plans (particularly for focus areas) are viable, effective, and provide
sufficient detail of $what to do and $how to do it. Each action plan considers the
following:
" an overview of the skills gaps, and future occupation and qualification issuesthat face the economic sector and were highlighted in Report 2
" the future labour market for the economic sector, predicted to 2012, based on
sector-specific assumptions additional to the status quo forecast outlined in
Report 2
" short-term solutions ! to be considered between 2009 and 2012, including
detail on the method, responsibility, cost and priority of each possible solution
" long-term solutions ! to be considered between 2013 and 2016, including
detail on the method, responsibility, cost and priority of each possible solution
" a summary of the action plan to be used as a high-level planning tool for each
focus area or economic sector.
Structur e of Report 4
The remainder of this report is structured as follows:
" Part B presents a future skills strategy for Bahrain, including the following
components:
% Chapter 2 outlines the rationale for a skills strategy, what the future
Bahrain labour market is expected to look like and presents the high-level
future skills strategy for Bahrain, including the four focus areas that
underpin the strategy
% Chapter 3 provides detail on a set of overall, high-level, overarching skills
initiatives for Bahrain from which the majority of the solutions in each of
the focus areas can be drawn, including an overview of how the education
system can be improved to better match labour supply to labour demand
% Chapter 4 through Chapter 7 details the short-term (2009-2012) and
long-term (2013-2016) action plans for the four focus areas that underpin
the future skills strategy for Bahrain.
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" Part C (Chapter 8 through Chapter 10) details the short-term (2009-2012) and
long-term (2013-2016) action plans for the other economic sectors included in
the Skills Gaps Research Study.
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Part BA futur e ski ll s strategy for Bahrain
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Chapter 2
A future skills strategy for Bahrain
2.1 Rationale for a skills strategy
Bahrains future skills strategy needs to be based on a set of objectives that
illustrate the key issues facing employers, employees, the education system and the
Bahrain Government in terms of skills gaps. Drawing on the information and
analysis undertaken in the three previous reports for the Skills Gaps Research
Study, the four key objectives for a future skills strategy are to:
" increase the skills competency of the labour force
" increase Bahraini labour supply participation
" better meet the needs of labour demand
"
contribute to an improved education system to aid skills development.
The strategy also targets and prioritises solutions that best achieve the set of
strategy objectives.
Figure 2.1 illustrates a mechanism to target the strategy and solutions purely
dependent on an industry sectors contribution to economic growth. If those sectors
that most directly impacted on Bahrains economic growth were chosen as target
areas for a future skills strategy, drawing on the labour market pool, education
system and the infrastructure and service base, potential targeted economic sectors
include:
" health
" manufacturing
" construction
" petrochemicals
" banking and finance
" tourism and hospitality
" transport and logistics
" trade.
Section 2.4 takes this targeting mechanism one step further using the information
and analysis undertaken in the previous Skills Gaps Research Study reports to
identify four strategic focus areas.
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Figure 2.1
INTERACTION BETWEEN SECTORS TO ACHIEVE ECONOMIC GROWTH
Source: (Allen Consulting Group and Eidos).
In order to help prioritise the strategy and solutions, proposed solutions can also be
measured against the extent to which they assist in meeting the strategy objectives.This measurement has been conducted through subjective scoring to determine
priorities ! assigning a high, medium, or low score against the four objectives as
well as an average priority score as a means to determine $high priority solutions
relative to others.
2.2 The future Bahrain labour market
For the purposes of the Skills Gaps Research Study, the future Bahrain labour
market is being considered in two segments:
" the future labour market comprising the 11 economic sectors selected for this
study
" other economic sectors (such as the petrochemical and banking and finance
sectors) that make up the entire Bahrain labour market.
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2
The Labour Market Regulatory Authority (LMRA) estimated the total labour
market to equal 439 174 employees (both Bahraini and non-Bahraini workers, but
excluding domestic workers) in December 2007. Assuming the status quo, the
labour market would be forecast to equal around 694 000 employees in 2012
(excluding domestic workers). However, given the current and expected economic
climate, an estimate using the status quo alone is not considered a reasonable basis
for forecasting. Therefore, assumptions on how the labour market may change
between 2007 and 2012 have been made for each of the 11 economic sectors
selected for the Skills Gaps Research Study and are described in Chapter 4 through
Chapter 10. In addition to these assumptions regarding the 11 economic sectors,
some assumptions were made on the extent of future employment in all other
sectors contributing to the total labour market, including:
" an increase in Bahraini labour of 5 per cent
" a decrease in non-Bahraini labour of 5 per cent.
Using the historical data available from the LMRA and including these shocks in
the 2008 year, an autoregressive 1 period model was applied to the entire dataset to1
forecast the total future Bahrain labour market, which is shown in Figure 2.2.Under these assumptions the total Bahrain labour market is estimated to comprise
of around 592 300 employees in 2012 (an increase in the labour market of 34 per
cent from 2007). This estimate excludes domestic workers. Of this total, 75 per cent
would be employees in the 11 selected economic sectors and 25 per cent would be
employees in other economic sectors .
Further, of those employees in the 11 economic sectors, 23 per cent (102 000
employees) are estimated to be Bahraini and 77 per cent (344 000 employees) are
estimated to be non-Bahraini. In 2007, 30 per cent of the total labour market was
made up of Bahraini workers. However, these results assume that no additional
mechanisms are introduced to improve the participation of Bahrainis in the labour
market.
1
An autoregressive 1 period model is a tool to forecast data based on historical information. A series is formedfrom the one previous period in addition to the historical base. The formula used in an autoregressive 1 periodmodel isLabour_Force(t) = b(t) + &(t) Labour_Force(t-1) + error.
2
The total labour market for the 11 economic sectors does not separately identify the labour market in the ICT
sector (as this data is included in the telecommunications sector). Further, public health and education labour isnot included as these values are captured in the public admini stration sector labour force.
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Figure 2.2
THE FUTURE BAHRAIN LABOUR MARKET TO 2012
Note: Domestic workers have been excluded from the data from 2007 onwards and explain thereduction in the total labour market in 2007.
Source: (Allen Consulting Group and Eidos); (Labour Market Regulatory Authority 2008); (Civil Service
Bureau (CSB) 2008); (General Organisation for Social Insurance (GOSI) 2008).
2.3 Future skills strategy
To assist the Government of Bahrain deliver its ambitious agenda for addressing the
skills shortages across 11 economic sectors as outlined in the Skills Gaps Research
Study a future skills strategy is essential to support skills development to address
labour shortages in key occupations. The development of future skills strategies for
Bahrain as outlined in this report will aim to enhance rather than constrain labour
market diversity.
Skills shortages have a number of causes and the strategies suggested in this report
reach beyond purely training-based solutions by taking a workforce developmentapproach to addressing the skills gaps. These are both short-term and long-term and
will require collaboration between government, industry and the workforce. The
majority of the strategies in this report are premised on this type of collaboration
although not all of the strategies require equal input from all parties.
To determine what future skills strategies should be considered for meeting the
needs of the labour market in Bahrain a skills strategy framework was developed
(see Figure 2.3). This framework considered the results of the research from
Report 2, the analysis undertaken through the surveys and also took into account the
current initiatives being introduced by Tamkeen.
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Figure 2.3
SKILLS STRATEGY FRAMEWORK
Source: (Allen Consulting Group and Eidos).
A comprehensive response to the skills gaps challenges requires a set of
overarching strategies that address and strengthen each need. The outcomes of the
analysis in this area identified that each of the key strategies should address the high
likelihood to contribute to future growth and fall in the category of having a high
level of skills gaps. The following four dimensions were considered within theskills strategy framework:
" increase the skills competency of the labour force
" increase Bahraini labour supply participation
" better meet the needs of labour demand
" contribute to an improved education system to aid skills development.
To ensure that the strategies put in place are being addressed and continuous
improvement is being made the final part of the skills gaps strategy implementation
process is moni toring and evaluation.
This not only involves monitoring the progress of action plans but also conducting
evaluations at the conclusion of each of the implemented strategies to ensure the
goals have been met.
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2.4 Four focus areas
It is difficult to predict with any certainty the required skills mix to meet both the
demands of employers and the requirements for effective participation in the wider
workforce over the longer term. However, the projections contained in Report 2 and
this Report provides a broad indication of the occupations and sectors in which
additional skills will be required. Given that, and the analysis undertaken in Report1 to Report 3, it was determined that there are four focus areas under the overall
skills strategy, as highlighted in Figure 2.1 which include:
" manufacturing
" health
" tourism and hospitality
" a strong infrastructure and service base, including components of the Public
Administration, ICT, Telecommunications and Business Services sectors.
These selected sectors were considered to show projected growth and would
continue to be a key component of Bahrains enterprise base. After considering theexisting strengths and opportunities for further development and growth in these
high value-added sectors along with the desired outcomes already identified by the
economic vision 2030 strategy for Bahrain it was decided to develop detailed action
plans for these four focus areas.
A key component of this strategy is the focus across four of the 11 economic
sectors outlining the proposed solutions to address the skills gaps in each area. This
consists of action plans being developed for all sectors and in particular for four key
areas as identified in Figure 2.4 below which highlights the high priority elements
of the action plan described in the remainder of this report.
Figure 2.4
FUTURE STRATEGY KEY FOCUS AREAS
Source: (Allen Consulting Group and Eidos).
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2.5 Possible solutions
Possible solutions under each of these focus areas were developed (some possible
solutions were also developed for the other economic sectors) to create action plans.
To identify, out of all of the possible solutions, which should be selected as part of
the Future Skills Strategy, a similar subjective assessment approach to identify the
key focus areas (described above) was used. In this case, possible solutions wereselected based on those that best met the following selection criteria:
" meets a goal (or goals) of the strategy !which is necessary in order to be able
to achieve the goals and, in turn, assist to meet the Strategys vision;
" is achievable ! or is an implementable solution given the economic, labour
market and sectoral environments
" is likely to be cost-effective !will see significant outputs and outcomes in line
with, or exceeding, the cost of the possible solution
" has some support among stakeholders consulted ! is in line with the many
interviews that were conducted as part of the study
" provides an outcome quickly !so that there is a mix of possible solutions that
include both those that have a long term measurable outcome, but also staged
solutions that will show the impact of the Future Skills Strategy across its
entire timeframe (i.e., not just outcomes at the end of the timeframe, but all
along the time continuum)
" aids development of a strong private sector ! which is a key objective of the
EDB and one of the primary drivers behind the creation of Tamkeen.
The subjective assessment of the key focus areas and other economic sectors are
outlined in Appendix A.
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Chapter 3
Overall skills initiatives for Bahrain
3.1 Introduction
It is clear from the analyses undertaken in this study that Bahrain has already taken
considerable steps forward in reforming its labour market and education-training
system in order to improve productivity, competitiveness and a thriving private
sector (all goals of the Economic Vision 2030 statement).
In particular, the Ministry of Labour and Tamkeen have played a leadership role in
facilitating the development of the skills needed by Bahrainis for the Kingdom to be
a productive, globally competitive economy. Consultations with stakeholders
suggest that most of the initiatives being undertaken by government in reforming
the labour market and the education-training system are moving the economy in the
right direction.
This study confirms that some sectors of the Bahraini economy are both productive
and globally competitive: in these leading sectors most employees are well
qualified, highly skilled Bahrainis and there are relatively few skills gaps.
On the other hand, some sectors have become increasing reliant on non-Bahraini
labour, and at best make a modest contribution to the development of a $broad
middle classof skilled, productive and pioneering Bahrainis.
The evidence from these consultations suggests that there are some imbalances and
weaknesses in the skills and attitudes of entrants to the labour markets that hamper
progress in the policy of Bahrainisation and efforts to improve the productivity and
competitiveness of under-performing sectors.
The analysis undertaken in this study has focused on identifying the skills gaps of
major sectors of the economy. Not surprising, the analysis reveals that each sector
has its own unique requirements; there are some sectors where the requirements for
future skills in particular fields are particularly acute, and action plans for dealing
with these are outlined in following chapters of this report.
At the same time, there many areas in which the skill requirements now and in the
future are common to all sectors. Some of these skills are broad based:
computational and mathematical, Arabic and other language skills, customer
service, development and maintenance of networks, communications skills and the
like. These were raised not only in surveys but were mentioned time and again in
stakeholder consultations. These skills needs are identified in each sectoral chapter
of the report.
In addition, there is an important set of future skills needs that neither survey nor
interview methodologies can identify: skills required for industry sectors that may
emerge in the future as a result of new technologies, processes or investments but
which at present do not exist in the Bahrain economy.
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A skills strategy should balance individual sectoral needs with the development of
flexible, robust institutional mechanisms that allow the labour market to adjust to
changing demands and emerging needs. The purpose of this chapter is to identify
areas where the current institutional framework might be adapted to provide this
additional flexibility, including an overview of how the education-training system
can be improved to better match labour supply to labour demand.
In suggesting initiatives that might be considered, it is important that:
" skills initiatives undertaken in the light of the results of this study contribute to
the strengthening and refinement, rather than the abandonment, of current
initiatives that are making a significant contribution to closing overall and
sector-specific skills gaps
" existing and new overall and sector-specific initiatives form a coherent
framework of priorities for action that are essential for reforms of the labour
market and the education-training sector to be effective in realising the
national vision
"
initiatives and action plans are well understood, accepted and#
owned
by keystakeholders (government, public and private employers, workers, entrants to
the labour market, education and training providers)
" government labour market and education-training policies provide the
incentives needed to encourage implementation of key initiatives
" using the data from this study as a base, an ongoing process of monitoring of
progress towards goals and evaluation is in place to ensure that necessary
adjustments and refinements are made in the light of feedback.
Drawing on the information and analysis undertaken in the three previous reports
for the Skills Gaps Research Study, key objectives of any overall skills initiative are
to:
" increase the skills competency of the labour force
" increase Bahraini labour supply participation
" better meet the needs of labour demand
" contribute to an improved education-training system that achieves the
outcomes (skills development) required to improve productivity in all sectors
of the economy.
Six areas in which overall skills initiatives seem to be needed in Bahrain are
identified.
3.2 Better matching of labour supply to labour demand
In consultations and focus groups for this study, one of the most common
complaints from employer groups was that the supply of labour from the formal
education-training system does not match the skill demands of their enterprise and
sector.
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The most common observation was that the education-training system has not
produced enough Bahrainis with scientific, technological and technical
qualifications, but instead too many arts-social science-humanities graduates and
school leavers leading to high levels of youth unemployment. While the education
system cannot be expected to provide all the industry-specific skills demanded by
employers, it is expected to ensure that those leaving the system have the generic
skills and work-attitudes critical for any worker in a modern economy to be
productive.
The current EDB Education Reform program provides a comprehensive framework
for the overall reform of the education-training aimed at improving the quality and
relevance of education, that is, closing the skills gaps. The initiatives set out below
need to be considered within the framework of the EDB Education Reforms.
Tighten l inks between educat ion, tra in ing and indu stry
The strategic approach most likely to succeed is to build on the success of
initiatives of sectors where the match between supply and demand is sound, the
links between education, training and the industry are close, skills gaps are
minimal, and the level of Bahrainisation is high.
The petrochemical sector (in particular, the scholarships and training initiatives of
companies like BAPCO and GPIC) and the Banking and Finance Sector
(particularly the Bahrain Institute of Banking and Finance) provide casebook
studies of what works. Both sectors have a long history of investment in the
development of the human capital they need to be productive and internationally
competitive, one in which strong leadership has been provided both by the
management and the government over a prolonged period. They provide a
workable, Bahraini model of how to develop an institutional approach that matches
supply with demand.
Bahrains Government should consider making it mandatory for education and
training providers to ensure adequate industry involvement in course design,
teaching, practiciums and assessment as a condition for funding support and
accreditation of vocationally oriented courses. This would ensure that the roles
played by the Ministry of Education (particularly the Educational Research and
Development Centre), the Bahrain Higher Education Council, the High Council for
Vocational Training and its Specific Councils, and the Bahraini Quality Assurance
Agencies are strengthened in:
" mapping skills requirements, graduate employment rates and employer
satisfaction with skills of recent graduates
" ensuring that courses provided by schools, training institutions (like BTI,
Bahrain Polytechnic and private colleges) and universities focus on developing
key skills and competencies, and meet international standards and benchmarks
" refusing accreditation or re-accreditation of courses and institutions failing to
meet requirements of industry involvement and/or standards required for
professional or trade certification
" establishing a National Qualifications Framework
" encouraging industry involvement in course design, work experience
programs, internships and apprenticeship programs
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" introducing a compulsory training levy for within-industry training, and
legislation requiring all companies with more than 50 employees to provide
vocational competency development programmes, as in Korea).
Increased v ariat ion in funding levels would be a useful signal l ing mechani sm
Long lead times in the design and delivery of educational courses are common, inBahrain and in higher education sectors worldwide. The investment required to
develop a curriculum recruit and train teaching staff, and develop course material,
are all reasons why secure, long term funding is desirable.
However, too high a degree of security in funding means that existing provision can
be locked in at the expense of emerging needs. There is a balance that needs to be
struck between certainty of funding in order to promote long term planning and
responsiveness to the immediate needs of the economy. Consultations with industry
suggested that a majority of industry leaders perceive rigidity of funding as a
problem with the higher education system in Bahrain, and would prefer the balance
to be shifted towards responsiveness.
Options for increasing the level of funding variation to help close the gaps betweensupply and demand could be based on the budgetary allocations to higher education
bodies (e.g. provision of a higher funding base for University and BTI faculties
where major supply gaps are evident, reduction for those where there is an over-
supply of graduates) or built around incentives (e.g. scholarships, government
supported-internships) aimed at attracting more students to areas where private
sector finds it difficult to recruit Bahrainis with the appropriate qualifications and
skills. These are proposals that are to be considered within the context of broader
education reform % they are covered here in recognition of the employer interest in
improving responsiveness, but the report recognises that overall education reform is
outside the scope of the project.
Greater transparency in labour m arket i nformat ion
A well-functioning market is characterised by widespread dissemination of
information. This applies equally to labour as to commodities markets. Information
that is relevant, accessible and up to date is a crucial factor in encouraging the
matching of supply and demand.
As shown in the findings outlined in Report 2, there is a considerable amount of
information on Bahrains skills and occupations available from official sources.
However, little of this information is published in a form that assists potential
employees, parents, or employers, to match their aspirations and needs. The relative
paucity of online information on trends in employment patterns and in demand for
skills is a potential barrier to further labour market reform.
As a first step, the publication online of information currently collected on labour
numbers and trends would improve the capacity of the Bahrain labour market to
anticipate and react to emerging pressures and demands.
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3.3 A national vocational apprenticeship program
A number of sectors report skills shortages in key technical and skilled trade areas.
Whereas BAPCO has long had an apprenticeship programme to ensure that it has
the skilled tradesmen it needs, it is evident that there is an overall skills gap % one
filled largely in other sectors by non-Bahrainis. The BAPCO experience was noted
in a large number of industry leaders interviewed in the consultations for this reportas a model that could be applied elsewhere. This was particularly so in relation to
manufacturing and transport industries.
A possible approach would be for Bahrain to consider establishing a national
apprenticeship scheme.
The scheme would focus on technical and craft apprenticeships in areas of high
demand across sectors identified in this study (such as electrical trades;
refrigeration and air-conditioning; welding; health, laboratory, IT technicians;
administrative and clerical workers; small business management), particularly
where those areas in which the level of Bahrainisation is low.
Appropriate Diploma and Advanced Diploma courses would need to be establishedor further developed by BTI (and potentially the Bahrain Polytechnic) allied with
on-the-job apprenticeship programs where job-specific skills can be learned.
In establishing a national program, the experience of BAPCO as well as that of
international organizations (e.g. UNESCO-UNEVOC, ILO) and countries with a
long tradition of apprenticeship systems within a governmentally supported
framework (such as Austria, Great Britain, Germany, Australia and New Zealand)
should be sought in the design and implementation of the programs. This should
also apply in the harmonisation of a national (and regional) system of standards,
assessment and accreditation.
Of course, for such an initiative to work, employers would need to be willing to
participate in the program, to take on apprentices, to provide them with on-the-jobtraining generally over a two to three year period, to accept that they need blocks of
time for formal training at BTI or an approved training provider. As in many
countries, a considerable effort needs to be made to improve the status and image of
technical and craft trades, and thus this would need to be a focus of a public
information campaign.
During training, apprentices are engaged in working for an employer and being
trained on-the-job by them as well as being engaged in a formal training program
provided by approved vocational education/training provider such as BTI. For
apprentices, the level of income provided during training is a key issue. Ideally the
monthly income of an apprentice should not be much lower than that of a semi-
skilled employee of the same age; although life long earning potential is higher for
a more highly skilled employee, the immediate incentives effects of a lower income
while training would discourage potential trades apprentices. This suggests that an
allowance around BD300 per month in present values would be required to
encourage take up of apprenticeships.
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To proceed, this proposal would require both a detailed business case for funding,
and consideration within the overall Bahrain education strategy. In addition to the
costs of supporting apprentices, the costs of training itself would need to be found
either from employers, government, or some agreed combination of both.
Additional funding would also need to be provided to BTI and the Bahrain
Polytechnic to enable them to hire or enter into joint agreements with overseas
counterparts to ensure that the training and standards reached are comparable with
those achieved by Bahrains major trading partners.
3.4 A national transitions framework and careers education
For many students completing their studies at secondary school, a training institute
or university, the transition to work is a hazardous one. UNESCO and international
experience suggests that transition problems can never be eliminated, but for many
students transition is made easier by provision of information, advice and
counselling. Career and transitions services assist students in planning for a career
and to prepare and support them to make successful transitions to post-school,
college and university destinations.
Such services need to include career guidance and information on the changing
nature of work and the labour market and the work ethic expected by employers,
public and private. Information can be disseminated via online programs, classroom
teaching, careers advice, events such as open days and career markets, and
simulation exercises focussing on career pathways and #resources generators' that
allow access to, and sharing of career development resources and experiences of
graduates during the transition period.
Governments have a variety of options to encourage such services. They can be
made a regulatory requirement through legislation or government instructions;
comprise a condition for licensing or funding schools and tertiary institutions; or be
funded directly by governments in whole or in part. The options available to the
Kingdom of Bahrain include a mix of these approaches.
In the first instance, a pilot program for a transitions service could be developed
jointly between a leading institution (the Universit y of Bahrain is an obvious
candidate) and a government agency such as Tamkeen. The introduction of a
transitions service via a pilot program would be a low risk approach allowing
lessons to be learned on how best to introduce such a service in Bahrain before any
regulatory or funding program were developed more generally.
Other possible elements of a transition program might include assistance for
students to experience work while they continue to study at university. Internships %
short placements with employers that allow students to experience possible future
work options%
are a common feature of transitional programs in many countries.They provide on-the-job experience as a complement to university study. A
remuneration component for students is necessary (to be paid possibly in part by
employers and the Government of Bahrain) to trigger interest in such a program.
The internship program could focus on sectors that make up Bahrains
infrastructure and service base, including the public administration, business
services, ICT and telecommunications sectors, if it were designed to support the
development of these services within an overall economic development plan.
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A complementary approach to development of a transit ions program wou