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How to Address Skills Mismatch and Underemployment Problems of Graduate Students in Azerbaijan

 Introduction

One of the most problematic issues in Azerbaijan is underemployment of graduate students, which stems from several reasons such as lose connection and cooperation between higher education and labor market, low involvement of labor market representatives in higher education curriculum development and skill mismatch of graduate students. In Azerbaijan, many university students lack a clear understanding of job requirements, how to acquire the necessary skills and certificates, where to look for relevant jobs and internships, and how to network with potential employers. They often receive inadequate guidance from mentors, advisors, or professors in their institutions. Although some students attend career expos to explore potential opportunities, these events are not organized systematically and often yield few tangible results. Good-quality retraining and upskilling opportunities are relatively scarce.

The Minister of Education and Science, Emin Amrullayev said at the "Be Ready for the Future" career development forum, "Today, our students' job search is like searching for a black cat in a dark room. If employers work closely with career centers, we as a ministry can create favorable conditions". At the same time employers blame education system saying that universities don’t prepare students with enough skills meeting labor market requirements. This capstone project aimed to find three main solutions to increase graduate students’ employment level.

Review and Findings from the Literature

Current situation and faced problems related to graduate students’ underemployment:

The successful transition of young people from school to work is crucial for bringing about positive economic, social, and political changes in society. It is, therefore, important to recognize it as the most valuable investment in human resources that a country can make. (EL-Annan, 2012). However, Azerbaijan faces the skills mismatch and underemployment of graduate students.

Qualification and skills mismatch affect many young people in Azerbaijan. The qualifications mismatch affects over 44% of employed young people (15–29), according to a 2016 study by the State Statistical Committee (SSC). According to the World Bank STEP Survey conducted in 2013, employers are unable to find suitable candidates with the required skills for jobs due to issues with the education system. Employers criticized weaknesses in young peoples’ skills including technical job-specific skills, and also in cognitive and socio-behavioral skills including literacy, problem-solving, communication and teamwork. (World Bank STEP Survey, 2013)

The STEP Employer Skills Survey, conducted in Azerbaijan, showed that most employers are not satisfied with the knowledge and skills provided by the educational institutions (Rutkowski, 2015, pp. 3–4). In 2017, the American Chamber of Commerce in Azerbaijan, with the Ministry of Education's support, conducted a recruitment survey that revealed that nearly 70% of companies and enterprises related to banking and oil & gas industries (considered as most developed industries) had difficulty finding suitable candidates for graduate recruitment, particularly from public universities (Valiyev A., Amirova G., 2021). 

The data given above shows that students cannot develop their working skills during university years. In order to better prepare students for work life in their chosen career some countries offer apprenticeship model in higher education institutions, where students work with experienced professionals in their field of study, also attending classes or completing coursework related to their job. The process of learning happens gradually and continuously as individuals think and act, interpreting and building knowledge based on their experiences, which can be described as micro-genetic moments, construing and constructing knowledge from what we experience (Hutchins, 1993; Pea, 1997; Rogoff, 1990). So, applying apprenticeship model in higher education institutions can help students transform their knowledge to practice by involving them in on-going learning and practicing process. This allows them to apply what they learn in the classroom to real-world situations and gain valuable work experience. While students are engaged in occupational tasks they are also engaged in the remaking of that occupation (Donald, 1991). This remaking occurs as they address particular work problems or challenges and as they undertake tasks generated in specific circumstances and as directed towards particular goals (Billett et al., 2005).

Additional to skill mismatch, career guidance policy instruments for students are not effective enough. Career guidance for young people was included in the strategic framework as one of the key policy measures. As a result, The Youth Employment Program and associated Youth Fund were launched in April 2019. The aim was to assist young people in successful career development (finding a job), creating additional jobs (especially in the regions) and increasing competition in the labor market. According to this policy The Youth Foundation established Youth Development and Career Centers in Baku and the regions so that young people can get training on various topics related to their personal and professional development. The State Employment Service (The SES) organizes job fairs, including events at the leading universities, for students and graduates under the motto ‘the first step in your career’ to help young people to establish initial contact with employers and to promote their integration into the labor market. Unfortunately, career guidance services are limited in their offerings, and tend to focus on immediate job opportunities and short-term employment, rather than the bigger picture of long-term career growth and planning. (Babayev A., 2020, November).

The European Training Foundation (ETF) suggests improving the consistency and adapting the policies related to youth employment to incorporate services and training programs that are more attractive and convenient for young individuals. (Jaouani A. et al, 2020., p.53)

There is no centralized labor market information system to help labor market actors (including education and training institutions, students, jobseekers, employers and public employment services) to make informed choices.

Like in Azerbaijan’s case, Chile also experienced youth underemployment issues, which caused to take serious steps to solve that situation. One of them was Online National Jobs Portal that was designed to promote employment and connect students with job opportunities. In Turkey there is a similar portal called Career Gate Public Recruitment Platform that had been developed as a potential solution to youth unemployment in the country. It is a digital platform on which all public institutions carry out public recruitment phases from application to placement. Career Gate has been developed to increase merit, transparency, equal opportunity, efficiency, and effectiveness in public recruitment. By carrying out all public recruitment processes from a single platform that is integrated with e-Government Gateway, it aims to accelerate the recruitment processes, reduce the workload of HR personnel and minimize the human error. Currently, all ministries, their subsidiaries, Presidential units, regulatory and supervisory institutions, higher judicial authorities, and some universities and municipalities carry out their recruitment processes on Career Gate.  All candidates who want to apply for the job postings published by these institutions can access the Career Gate. On the Career Gate Public Recruitment Platform, public institutions can conduct recruitment processes, such as opening job posting, evaluation, and placement. Promotion and appointment processes and study/intern abroad opportunities for public employees can also be carried out through the system. Candidates can follow these processes on the platform transparently. (CAREER GATE - Presidential Human Resources Office (cbiko.gov.tr))

The other problem is low involvement of labor market representatives in higher education system. In order to adapt the education system to better align with the needs and demands of the job market it is important to strengthen the systematic and continuous partnership between higher education institutions and employers.

The ESG emphasize the involvement of employers and students in the quality assurance process, therefore the employers and students should be involved in all steps of higher education. The interviews with representatives with employers and with Students Union conducted by Twinning project show that neither employer, nor students are involved in the quality assurance of higher education. As a result, the information and insights provided by labor market intelligence are not fully utilized. (Saulė M.Z., Jolanta S., 2018)

In some countries disbalance of admission numbers in different higher education programs results in army of graduate students with diplomas in irrelevant professions which are not demanded in labor market. In other words, number of students exceeds number of vacancies in particular fields. Students who chose teaching profession in Azerbaijan can be an example for this case. In 2022, 60,002 candidates applied to participate in the competition for teacher recruitment, 54,804 of them qualified to participate. A total of 44,363 candidates participated in the exams, 13,280 vacant positions were announced for teacher recruitment through the competition. 3,902 candidates were recruited on a permanent basis, while 3,086 candidates were recruited on a temporary basis. Additionally, 1,650 candidates were appointed to temporary positions during the supplementary placement process (Teacher of Azerbaijan Agency., 2022. December 30). Roughly vacant positions 4,5 times less than teacher candidates applying for recruitment.

In the USA, The Bureau of Labor Statistics (BLS) mentioned that lower than 30 percent of jobs today require postsecondary education. By 2022, the BLS says, the economy created about 50 million new jobs since 2012, but only 27 percent of those require an associate degree or higher. 

In order to avoid this problem causing underemployment, policies should focus on the collection of information on employability by career and follow labor market dynamics and trends globally and in the local context.

Interpretation and Implications for Azerbaijan

According to my findings steps could be taken in three directions in order to increase the employment of graduate students:

1.      Creating Centralized Online Jobs (Internship) Portal

The Centralized Online National Jobs Portal can address the issues related to unemployment by enabling employers to find interns and future employees among university students with strong academic records and competencies. This platform can also foster a competitive environment among students, thereby contributing to human capital development. Online platforms like these can provide a centralized location for students and employers to connect and find internship opportunities, offering equal access to career openings using transparent and innovative evaluation methods. Such programs can include internship opportunities in both the public and private sectors and be made available to students from a variety of fields. These portals can offer various tools and resources to help students search for internships in their fields of study or career interests and apply for them efficiently. For example, students can create online accounts where they can include their academic achievements, certificates, attended projects and trainings, upload resumes, and set preferences for the types of internship opportunities they are seeking. Employers can use these portals to post available internships, screen and shortlist applicants, and communicate with candidates. To ensure accountability, universities' career centers can verify documents related to the information declared by the students.

The purpose of the project is:

-             To simplify the entry of university graduates into the job market and support their career development.

-             To increase competitiveness among university students.

-             To collect centralized data on the human capital of the country.

The project can be implemented through the collaboration of the Ministry of Education and Science and the State Employment Agency. Creating a database will provide a detailed understanding of the country's human capital in the future and can contribute to the implementation of other measures aimed at developing human capital. Supporting students' entry into the labor market can create high motivation and competitiveness among students, which can ultimately affect the development of human capital.

2.      Establish sustainable partnerships among labor market representatives and higher education institutions.

Employer engagement in the higher education system can fall into several categories including:

- Developing curricula, pedagogy, learning materials, and research projects that can help students develop specialist skills they need in the workplace.

 -  Providing students with career guidance with accurate and current information on the knowledge and skills needed for particular industries and professions.

- Facilitating and supporting apprenticeship models in higher education institutions.

In order to reach noticeable increasement in graduate employment, holistic, systematic and sustainable approach should be taken in partnership and collaboration of those two parties while applying all three categories mentioned above.

Involving employers in changing, developing of higher education curriculum and course programs; and increasing their participation in quality assurance system can help the universities to identify potential points for strategic cooperation with companies and ensure that their students are getting the skills required by the current labor market.

Career guidance can be regularly organized in the form of presentations, seminars, or guest lectures. Workplace case studies or work-based scenarios could be used in this kind of seminars. Seeing successful CEOs, experts and professionals in their field, listening to their stories can inspire the young generation for their future career.

Currently each university applies internship programs for their students. Unfortunately, most of them offer the internship program in the last semester of university leaving little time to practice and develop students’ working skills and capacities, which is actually not effective. Instead, the apprenticeship model can be used in higher education institutions where students can transform their knowledge to practice year by year upgrading their professional skills.  

3.      Follow labor market statistics to control the number of students, in order not to exceed the jobs available related to the field.

If the number of graduates exceeds the number of jobs available in a particular field, then it may lead to unemployment, underemployment, or lower salaries. By controlling enrollment levels in different programs, universities can help ensure that there is a balance between the number of graduates and the available job opportunities. To reach the goal, there should be continuous information exchange about job dynamics between the State Employment Agency and the Ministry of Education and Science.

OECD’s advice on mandated numbers for admissions to HEI can be applied in this case.  Mandated numbers include ceilings or floors on the size of individual programs, or mandates regarding the number of students in specific fields of study and/or at specific levels of study. Caps on the number of places offered in certain higher education programs or fields are used to link the number of graduates produced to labor market needs. (OECD, 2017) This method establishes a cap on the number of new graduates from a given field who enter the labor market.

Conclusion

In conclusion, the issue of underemployment among graduate students in Azerbaijan has multiple root causes, including a lack of collaboration between higher education institutions and the labor market, low involvement of employers in curriculum development, and a mismatch of skills. The proposed implications include the creation of a centralized online jobs portal that can connect employers with university students simplifying the entry of university graduates into the job market and supporting their career development, establishing sustainable partnerships between labor market representatives and higher education institutions by developing curricula, providing students with career guidance, facilitating and supporting apprenticeship models, and monitoring labor market statistics to control the balance between the number of graduates and the available job opportunities. These solutions could potentially increase the employment levels of graduate students in Azerbaijan and improve the country's human capital development. It is important for policymakers, educational institutions, and employers to work together and take holistic and systematic approach to implement these solutions and provide opportunities for young people to enter the labor market and build successful careers.

 

References

Babayev A. (2020, November). The school-to-work transition of young people in Azerbaijan: Is the state youth policy capable of providing needed support to ensure a smooth transition?

Billett, S., Smith, R. and Barker, M. (2005), “Understanding work, learning and the remaking of cultural practices”, Studies in Continuing Education, Vol. 27, pp. 219-237.

CAREER GATE - Presidential Human Resources Office (cbiko.gov.tr)

Donald, M. (1991), Origins of the Modern Mind: Three Stages in the Evolution of Culture and Cognition, Harvard University Press, Cambridge, Massachusetts.

Emin Amrullayev’s speech, https://az.trend.az/azerbaijan/society/3684802.html

EL-Annan, S. H. (2012). Mismanaging knowledge and education and their effects on employment in Lebanon and the Middle East. Journal of Education and Vocational Research, 3(1), 9–16.

Hutchins, E. (1993), “Learning to navigate”, in Chaiklin, S. and Lave, J. (Eds.), Understanding Practice: Perspectives on Activity and Context, Cambridge University Press, Cambridge, UK, pp. 35-63.

Jaouani A., Nikolovska M., Milovanovitch M. and Nielsen S., 2020., Policies For Human Capital Development Azerbaijan An ETF (Europian Training Foundation) Torino Process Assessment

             https://www.etf.europa.eu/en/publications-and-resources/publications/trp-assessment-reports/azerbaijan-2020

Jessica Crist and Rachel Dyl, 2021, Chilean Education and the Labor Market

Pea, R.D. (1997), “Practices of distributed intelligence and designs for education”, in Salomon, G. (Ed.), Distributed Cognitions: Psychological and Educational Considerations, Cambridge University Press, Cambridge, pp. 47-87.

Rogoff, B. (1990), Apprenticeship in Thinking - Cognitive Development in Social Context, Oxford University Press, New York.

Rutkowski J. J. (2015). Demand for skills: Main results of the Azerbaijan STEP employer survey. The World Bank Group.

Saulė M.Z., Jolanta S., 2018, Support to strengthening the higher education system in Azerbaijan

STEP Skills Measurement Employer Survey 2013-2014 (Wave 1) Azerbaijan, 2013 – 2014. https://doi.org/10.48529/qsbt-rc36

Teacher of Azerbaijan Agency. (2022, December 2022). 2022-ci Təqvim İli Rəqəmlərdə

              https://www.muallim.edu.az/news.php?id=23410

Valiyev A., Amirova G. (2021). Do university graduates’ competences match post-socialist labour market demands: Evidence from Azerbaijan.

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