Annual Report_2014 final_24032015

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The EF is managed by the Employment Fund Secretariat (EFS)/HELVETAS Swiss Intercooperation (hereafter referred to as HELVETAS). The EF focuses on providing short-term training to youth in market-oriented technical skills combined with, business and life skills in order to enhance their employability and develop them as successful entrepreneurs. The primary stakeholders of the program are economically poor and out-of-school youth of the age group 18 to 40 years.

During the reporting period, the EF conducted skills training in 64 districts through 39 Training and Employment Service Providers (T&Es). Total 10,713 youth have received the training out of the targeted 15,800 youth in 2014, of which 54% were women. In total, 85% were from disadvantaged groups, including 13% Dalit (with 57% women) and 49% Janajatis (with 55% women). Of the total graduates, 10,128 appeared in the skills test conducted by National Skills Testing Board (NSTB). To date, the skills test results for 648 participants out of 10,128 have been published and 88% have passed the test.

Of 2,309 graduates who completed the three months employment period, the employment status of 13% was verified physically. Among these, 95% have started working and 46% are gainfully employed earning an average income of NPR 4,753/- per month at the time of reporting. Based on previous experience, these figures are estimated to increase in the next six months.

EFS developed a number of occupational profiles and training manuals (see Chapter 3 and Annex 7). Almost 400 T&E staff and trainers were provided variety of capacity building (see Chapter 3). From the annual budget of NPR 830,756,023/- the Project spent NPR 317,954,070/- indicating a budget utilization rate of 38%. So far, only the first instalment payment has been released, therefore, the expenditure is in line with the yearly program implementation plan.

EFS continued collaboration with the Enhanced Vocational Education and Training (EVENT) Project in 2014 and initiated cooperation with the Skills Development Project (SDP) implemented by CTEVT. By June 2014, 14 T&Es delivered fee-based training outside of donor-funded schemes showing an increase in additional clients. Possibilities of collaborations with the public and private partners at local level, with trade and product associations will be further explored in 2014.

As EF gained significant knowledge in the TVET sector and domestic labour market, the Project initiated the documentation of good practices and lessons learnt in a variety of themes (Annex 16). The aim is to shed light on the achievements and shortcomings of the EF in various working areas. The compiled findings and results will be shared with a wide range of stakeholders during 2015 which is the last year of EF’s current phase.

The results of the first rigorous impact evaluation conducted was shared by the World Bank. The report mentioned that the overall impacts of the EF training programs were the highest amongst others. It stated that despite the limitations of the study methodology, the results showed impressive gains in employment and earnings for individuals who had undergone EF training programs.

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The EFis managed by the Employment Fund Secretariat(EFS)/HELVETAS Swiss Intercooperation (hereafter referred to as HELVETAS). The EF focuses on providing short-term training to youth in market-oriented technical skills, business skills and life skills in order to enhance their employability. The primary stakeholders of the program are economically poor, outof-school youth. The women are aged 16-40 years and men are aged 16-35 years.

The EF conducted courses for skill training on 75 different occupations in 66 districts through 36 Training and Employment Service Providers (T&Es).Of the 16,446 graduates in 2013, 53% were women and 84% were from disadvantaged groups (DAGs) including 11% Dalits (54% women) and 49% Janajatis (55% women). Of the total graduates, 15,047 took the skill test (NSTB test and local test)which 85% of them passed.

Of the 16,446 graduates in 2013:

• 91% are employed (91% in 2012) in the trade for which they were trained
• 70% have gainful1 employment and are earning an average monthly income of NRs 6,192/- . (In 2012, 67% had gainful employment with an average monthly income of NPR 5,738.)

During 2013, EF piloted two innovative training components:

• “Micro-enterprising for job creation”(MEJC) for 1,190 youth (30% women). About 59% of the graduates established their own enterprise and the job creation ratio was 1:0.48 (Annex 15).
• “Path to Prosperity” (P2P) offering skills training for 1,796 youth (44% women) who were very poor or with special needs. Among these youth, 58%2 found gainful employment.

As in previous years, EF developed and updated a number of occupational profiles, curricula, and training manuals(see chapter 3 and Annex 4). As well, it provided 660 (20% women) trainers and managers with capacity enhancement opportunities. From the annual budget of NPR 663,463,892/-the project spent NPR 608,358,292/-which amounts to a budget utilisation rate of 92%. Since the budget was prepared on an employment rate estimation of 80%, some budget surplus remained.

In 2014, EF plans to train 15,800 youth (50% women) under the two innovative components piloted in 2013 (MEJC and P2P) by providing technical skills training and soft skills training. The external review in May 2013 emphasised the innovative role of EF in the TVET sector, and suggested creating an “Innovative Window” for piloting several innovations in this sector. Piloting of innovative activities will be initiated through the “innovation window”.

As well, EF will continue to collaborate with the World Bank-supported Enhanced Vocational Education and Training (EVENT) project in 2014, and commence collaboration with the Skills Development Project (SDP) implemented by CTEVT. More importantly, EF will concentrate on documenting and compiling its experiences in short-term vocational skills training and employment in Nepal for wider dissemination at the national and international levels.

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In the past, EF focused primarily on providing short term market-oriented skills training for wage or self-employment. During 2013, EF piloted two innovations: i) Micro-enterprising for Job Creation (MEJC) which focuses on self-employment, and ii) better targeting for working with very poor youth and youth with special needs (Path to Prosperity, P2P). EF received a cost-extension until June 2015 with new Project Document and new Logical Framework (See Annex 1). New Project Document and Logical Framework are focused to MEJC and P2P and this YPO is developed accordingly.

The primary target group in the P2P component will be from the household where Poverty Alleviation Fund (PAF) or Local Governance for Community Development Program (LGCDP) have completed well-being ranking and ranked as highly poor. Whereas, MEJC program is open to all the youths and to the participants from all the districts across the country. Youth who are motivated to start their own enterprise and can create new jobs will be the primary target group of the MEJC component. After completion of the training, the P2P group will be linked to wage employment whereas the MEJC group will establish their enterprises. EF will be implemented through private sector Training and Employment Service Providers (T&Es).The services of T&Es for 2014 will be procured on a competitive basis through two rounds of procurement (12,000 in the first procurement round, which has already started in the last quarter of 2013 and 3,800 in the second procurement round). The second procurement is planned for April 2014, which leads to the outcome measurement thereof only in 2015 (see outcomes chapter: chapter 4 for details). The main outcomes of the first procurement will be as follows:

• A total of 9,000 very poor youths and youth with special needs (e.g. slum dwellers, single women, disable etc.) will be trained, out of which at least 75% will be gainfully employed.
• A total of 3,000 of business-minded/ motivated youth will be trained with a focus on microenterprising, out of which at least 50% will create an additional job.

Out of the total number of trainees, 50% will be women and at least 60% will belong to disadvantaged groups (DAG).

The following major outputs will lead to the achievement of above outcomes:
Career counselling; business skills training; life skills training; training in annex trades; capacity building and systems development for monitoring of EVENT through joint monitoring system; enhanced capacity of the T&Es to run fee-based training courses; development and revision of occupational profiles, curricula and training manuals; labour market research at local and national level; exploration of possibilities to work with district level funds for co-funding of skills trainings and impact evaluation. EF has accumulated rich experiences in various fields which will be documented and disseminated in the next year (see annex 4.6.2 for details) as a part of the knowledge management.

The total budget for 2014 is NPR. 829,559,019/- Out of this, SDC contributes NPR.171,000,269 (CHF1,778,403) and DFID contributes NPR.603,988,750 (GBP.4,052,570).The World Bank contribution is NPR 54,570,000 (USD 567,551).

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Study objectives and method: The objective of the study was to examine employment retention rate of the graduates of 2011 batch, while assessing changed situations in the light of contemporary labour market. Out of the 1,225 graduates attending both technical and business skills training, 675 were randomly sampled for the study. It represented 55.1% training graduates (258 men and 417 women). Besides, 50 key informants and 16 employers were also consulted. Collected data was analyzed applying HELVETAS Tracer Study Tool Kit and a tailor made programme developed in Access.

The study made conscious attempt to minimize sampling and non-sampling errors. The sampling errors were controlled by designing the sampling framework within an accepted confidence level of 95% followed by 2.52% margin of error (confidence interval). The non-sampling errors were controlled with the application of simple language in the data collection instruments, use of experienced surveyors and on-the-spot checking of data by the supervisor.

Profile of the respondents: About 56% respondents sampled in the study were graduates above 25 years, while 43% were between 18 to 25 years. Among them, 37.6% were Janajati followed by 29.3% Brahmins/Chhetris in the second place. Similarly, 15.6% were Adhibasis followed by 9% Dalits, 7.3% Madeshis and 1.2% Muslims. Around 96% training graduates were literate.

Type of information access about training: Around 45% training graduates knew about the training opportunity through family members and friends, while 29% followed the announcements made by T&E, radio, television, newspapers and posters. Around 86% graduate did not encounter any problem in joining the training. Remaining 14% reported distant location of the venue of training as one of the problems in their case.

Selection of the trainees: The T&Es followed guidelines provided by EFS for trainee selection. Compliance to the guidelines was monitored by the EFS staff. Around 60% T&Es felt that the selection criteria should be made flexible with respect to the age limit and education level for some trades such as mason and electronic repair. They also suggested that annexing food and accommodation support including compensation of the travel cost would attract the poor participants.

Perceived adequacy about the training curriculum: Around 47% graduates expressed adequacy of the training curriculum in covering the subject areas of entrepreneurial skills, calculation/accounting skills and soft skills. However, they felt that the duration of training for the trades like electronic repair, plumbing, motorcycle repair, mobile repair, building electrician and computer hardware could be made longer for in-depth skills development. In the case of employers, around 50% of them considered the coverage adequate. They viewed that their employees need both technical and business skills. They need higher level training to add value for enhancing productivity of their enterprise.

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The EF programme, which is implemented by the Employment Fund Secretariat/ HELVETAS Swiss Intercooperation (EFS), focuses primarily on providing short-term market-oriented skills training as well as business and life skills training to out of school, unemployed, disadvantaged young women and men in order to enhance their employability. EF has national coverage with trainings having been conducted in 60 (out of 75 districts) by 35 Training and Employment Service Providers (T&Es) in 76 different occupations. The primary stakeholders of the programme are economically poor women aged 16-40 years and men aged 16-35 years.

Out of the 14,255 trainees of 2012, 57% were women (compared to 48% in 2011) as EFS introduced affirmative actions to increase the women participation in the trainings. Among the trainees, overall 88% were from disadvantaged groups with 12% being Dalits (out of which 55% women) and 55% Janajatis (out of which 69% women). Altogether 87% of the youth who appeared the skill test of the National Skill Testing Board (NSTB) did pass the test.

Among the graduates of 2012, 67% were gainfully employed earning an average monthly income of NPR 5,738 (compared to 73% and NPR 4,441 in 2011). The rate of gainful employment is lower than in previous years as the income threshold had been increased in 2012 to NPR 4,600 in an attempt to adjust for increased costs of living. Against the previous income threshold of NPR 3,000/ month, 81% of the graduates would have been considered as gainfully employed. A tracer study among the 2008/09 graduates showed that three years after the training 68% of the graduates are still in employment while earning on average nearly NPR 9,000 per month.

The institutionalisation of lessons learnt of the project has significantly advanced in 2012 with the EF model being used by World Bank and Asian Development Bank (ADB) as a blueprint for the design of their skills training projects which created the basis for an intensive institutional collaboration for the joint monitoring and capacity building with the Ministry of Education (MoE).

In 2012 EFS initiated the piloting of innovations on “Enterprising for job creation” for about 700 youths and “Skills training and employment services for very poor and youth with special needs” for another 760 youths. Furthermore, EFS developed general and occupational quality indicators for 10 occupations, 8 occupational profiles and 9 new curricula as well as updated and/ or translated another 13 curricula. The competency of over 550 trainers in methodology, nearly 300 trainers in technical skills and 85 trainers in business and life skills was improved.

Out of the 2012 annual budget of NPR 610,615,825 the project spent NPR 427,596,154 till the end of December which amounts to a budget utilisation rate of 70%. The budget underutilisation was mainly caused due to the lower than anticipated rate of gainfully employed graduates and delays in initiating the implementation of above described pilots.

Important lessons learnt of EF during 2012the reporting period are the positive results of affirmative actions to increase the women participation and the multiskilling of youth for the diversification of their income sources. The major challenges of EF are the difficulties in the collaboration with the Council for Technical Education and Vocational Training (CTEVT) and the limited outcome of the training of ex-combatants.

Apart from providing skills training and employment for 17,000 youth in 2013, other main management and steering implications for the upcoming period include the implementation and documentation of the learning of the above mentioned pilots as well as the preparations with the Ministry of Education (MoE) and the donors for the potential next generation of a project.

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The partnership approach of EFS covered (a) Sub-contracting/Franchising, (b) Direct Partnership, and (c) Facilitator modalities. Under the Sub-contracting/Franchisee modality, 55% youths were trained, followed by 45% under the Direct Partnership and Facilitator modalities. One of the distinct features the partnership was outcome-based financing, which was tried for the first time in the history of TEVT sector in Nepal. As this was one of the piloted activities, the stakeholders concerned were anxious to know its overall performance results, for which this Tracer Study was conducted. The major objective of this Tracer Study has been to assess the impact of technical skills development training run for different trades on the gainful employment status of various socio-economic target groups including the poor and destitute.

The study comprised a sample of 670 graduates, plus other stakeholders including employers, key informants (relative and friends of the graduates), support institution representatives, and T&Es. The samples were drawn from the EFS database. A multistage approach was followed for tracing the sampled graduates including the mapping of graduates by their training districts, identification of the T&Es by the trade attended by graduates, reconfirmation of the address of sampled graduates, listing of the sampled graduates by their address, field visits to graduate residences or place of work, interview of the sampled graduates, collection of complementary information about other sampled graduates, inter-district communication with the team members about the met and unmet graduates, reorganization of field visits to the newly traced areas of graduates, and an information exchange between the district survey teams.

Attempts were made to minimize both sampling and non-sampling errors. Standard sampling methods were applied and quality control measures were taken during data collection and processing. Enumerators were trained and their work was supervised onthe-spot randomly by the Surveyor and Supervisor. The data was analyzed by using a Helvetas Tool Kit, and supplemented with a tailor-made programme developed in Access. The average time lapse between completion of training (2008/09) and the survey (December 2011) was about 32 months; the longest time lapse being 43 months and the shortest being 27.6 months.

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