By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A nine-fold improvement in job seeker placement rates is being targeted by a $50 million initiative that aims to overhaul skills training and employment preparation in the Bahamas.

The project, which will be funded 50/50 by matching contributions from the Government and Inter-American Development Bank (IDB), aims to improve the Department of Labour’s job seeker placement rate from the current 2 per cent to 18 per cent.

Called ‘Skills for current and future jobs in the Bahamas’, it also aims to better equip young Bahamians for the demands of the 21st century workplace via apprenticeship programmes that emphasise ‘on the job’ training.

IDB project documents seen by Tribune Business reveal that 1,350 Bahamians will undergo a year-long nationwide apprenticeship programme, which is funded 50/50 by the Government and employer.

The three sectors targeted for the apprenticeship programme are maritime services (Grand Bahama Shipyard); the medical industry; and information technology (IT) and telecommunications. All three were said to have been chosen because the Christie administration believes they are ripe for growth as a result of new investments.

Showing just why the project is needed, the IDB documents said the 2012 ‘Wages and Productivity’ survey of the Bahamas had revealed just three industries where more than 15 per cent of the employees were aged under 25.

“The survey shows that only three industries have over 15 per cent of employees under the age of 25, consistent with the fact that younger workers are perceived with a lower level of soft skills found in several consultations,” the IDB said.

“Across several consultations and qualitative analyses, one of the main explanations behind the skills shortage is the disconnection between the training provision and the private sector employers in the Bahamas, making training less pertinent and relevant for the labour demand side.”

The Bahamas’ education, training and workforce productivity problems are well-known to most employers, with the wages and productivity survey revealing that a lack of so-called ‘soft skills’ is the main reason for employee dismissals and turnover in 65 per cent of companies.

“Despite this reality, more than half (53 per cent) of the firms do not train their staff, and for those that do, training is focused on productivity, sales and marketing, with limited emphasis on developing soft skills,” the IDB added.

“Employers point to the lack of specific skills for the job as the most important recruitment obstacle (34 per cent), followed by applicants’ lack of experience (29 per cent) and of soft skills (28 per cent).

“Among the consequences of the lack of right skills for the job, 24 per cent of respondents state that staff skill levels are a main obstacle to productivity, due to unsatisfactory performance, absenteeism, lack of responsibility and commitment to the job.”

To measure the apprenticeship programme’s success, the IDB will assess the employment rate and income of those who graduate from it against a ‘control’ group that will not participate.

It is targeting a 5 percentage point difference in employment rates among those who take the programme compared to those who do not, plus a 20 per cent difference in earnings. It is also aiming for 1,215 of the 1,350 to graduate.

In addition, the National Training Agency’s (NTA) existing infrastructure will be used to deliver ‘soft skills’ pre-apprenticeship training to 1,100 Bahamians, equipping them with basic skills for the workplace.

“This is targeted to the unemployed and school leavers between the ages of 16-40 years,” the IDB papers said. “[It] will seek to fulfill two main objectives: first, to increase the relevant skills and employability of workers, and their probability of employment in three strategic sectors (maritime, medical services, and IT/telecommunications) for the economy.

“Second, to promote communication between employers and training providers in these sectors in terms of skills needs, so as to ensure the development of a programme that promotes relevant skills and higher labour market productivity.”

The IDB documents said graduates from the National Training Agency’s pre-apprenticeship programme will “feed into” the apprenticeship training, where 80 per cent of learning will be ‘on the job’.

“The apprenticeship programme will also help consolidate a network of off-the-job training providers, using the existing capacity of well-established institutions such as BTVI and other public and private training bodies,” the IDB said.

“Some of the costs related to the on-the-job training portion will be covered directly by participating firms, while the loan will provide support for small and medium enterprises within the selected sectors, and with a minimum structure, to take on an apprentice with structured training.”

To participate, companies will need to finance 50 per cent of the apprentice’s wage stipend and also ensure staff monitor and assess their progress over the year.