Technical Vocational Education and Training Strengthening for At-Risk Youth (TVET SAY) Project

The project focuses on the two autonomous regions on the Caribbean Coast, RACCS and RACCN, which have the lowest educational attainment levels in the country. In these regions, 77.7% of young people have not completed high school education, making it difficult for workers to find formal employment or means of economic engagement due to lack of economic activity in the region. Estimates based on data from the Living Standards Measurement Survey (LSMS) show there were only 4,000 technicians in the Caribbean region in 2014. To stimulate development, educational systems should closely tie their training content to the private sector's demand for skills. However, previous studies suggest that the Nicaraguan labor force lacks skills demanded by private companies. For example, the 2015 Survey of Sustainable Enterprises shows that companies face serious difficulties in finding skilled workers in the Caribbean Coast. The study analyzed current and future demand for youth who have technical training and the potential for entrepreneurship in the Caribbean Coast. The study found that in both autonomous regions, links between medium and large companies and technical education centers are weak. There is also a large social-emotional skills gap, with companies needing employees with strong social-emotional skills, but struggling to find them in job applicants. Among mechanics, welders, carpenters, specialists in warehousing and auxiliary services, critical thinking and common sense are particularly lacking. For agriculture-related jobs, after social-emotional skills, the second-hardest skill to find is the ability to operate industrial machinery and equipment. The study also sheds light on recruitment, with human resources managers using relevant experience, assessments, and job interviews to identify suitable candidates. Vacancies are often announced through referrals to avoid applicants who lack basic social-emotional skills. Almost two-thirds (61.6%) of job announcements require primary and secondary education, 26.0% require technical education or work-related qualifications, and 12.3% require college education. Few youth complete internships with companies, with human resources managers citing little coordination with training centers, lack of candidates with the training companies require, and a lack of candidates who meet expectations as reasons. An analysis of value chains identified obstacles to developing cocoa, livestock, Musaceae (bananas and plantains) and seafood production, including limited business development for farmers, limited development of farmer associations, insufficient technical assistance for farming households, poor product diversification, and a lack of financing mechanisms and financial products. Employment and entrepreneurship opportunities for youth with technical education are most numerous in production and marketing. Senior business administration technicians and technicians in agriculture, livestock, and fishing are in high demand. The study recommends that educational systems and training centers work closely with private companies to develop training programs that meet the skills demanded by the labor market. Additionally, the study suggests that companies should invest in social-emotional skills training for their employees and that the government should provide support for entrepreneurship and business development in the region.