“Labor Market Study” (jointly with the Cambridge Education, UK)

“Labor Market Study”
(jointly with the Cambridge Education, UK), MCA Mongolia, 2010

This Final Report covers the full project period of the “MCA-Mongolia: Labour Market Study in support of the TVET Project” from its inception on 1st December 2009 to 14th June 2010. Cambridge Education Ltd. (UK), in association with MEC LLC (Mongolia), has been contracted by MCA-Mongolia to provide technical assistance in support of the TVET Project to develop a comprehensive Labour Market Study in the context of Mongolia. The consultant team has worked in close coordination with the PIU and key stakeholder groups throughout the contract period.

The overall scope of the project is to provide the TVET sector, as well as the Mongolian labour authorities, with tailor-made instruments to ensure the successful delivery of the required impact on TVET provision in accordance with the Mongolian labour market’s needs. The recommendations presented in this Final Report are drawn from a comprehensive document review, focus groups meetings with a range of stakeholders and key informants, survey data analysis and statistical data analysis.

The objectives of LMS were given as follows:

  • Determine current and projected labour market demand and supply in Mongolia by appraising and assessing labour market information including labour data from a range of sources;
  • Determine labour market supply by analyzing earlier labour market surveys, studies and other related studies and data sources to identify employment trends, demand and supply gaps and training needs analyses to bridge these gaps. This will require drawing on labour market information, data and statistics from the Ministry of Social Welfare and Labour, National Statistical Office, trade/industry associations, companies and other relevant sources including Donor Agencies active in TVET development;
  • Summarize key data sources and identify limitations
  • Identify trends in labour market demand including a trend analysis in wages/salaries and earnings of workers (by industry and type of business entity); and
  • By means of a pilot gap analysis, identify skill needs by trade and occupation taking account of industry and employer expectations (by industry and economic sector).

These objectives have been met through implementation of two tasks:

Task 1:
Rapid assessment of the current and projected labour market demand, and identification of major gaps between labour market demand and supply;

Task 2:
Development of recommendations on improved human resource and manpower planning in relation to demand-driven and relevant vocational education and technical training.

The Labour Market Study and supporting analytical studies provide critical information on skill shortages that continue to hamper Mongolia’s economic development and essential information which will enable Mongolia to develop an effective job creation strategy linked to an educationally relevant and labour market demand responsive TVET system. The study includes the identification of occupational skill requirements as defined by industry, employer organizations and industry councils and public and private sector employers.

The findings and recommendations presented in this Final Report are relevant to a range of stakeholder groups and interest groups, addressing the following priority areas:

  • the current and expected situation in sector employment;
  • skill requirements of TVET graduates expected by both public and private sector employers;
  • discrepancy between the level of knowledge and skills of current TVET graduates and the requirements and expectations of employers;
  • labour force participation rates and trends in earning;
  • employability of graduates who have come from a range of labour preparations including different forms of vocational education and technical training (TVET colleges, Vocational Schools, foreign-owned technical and further education colleges, short-term training centres, industry-based apprenticeship programs including provisions for workplace learning); and
  • the current situation in relation to labour market regulations in Mongolia and the link and/or relevance of these regulations to job creation and employment protection.

view full report