The previous section presented an overview of key developments and challenges in the formation and use of human capital in Georgia. The analysis identified five issues which characterise the country:
- a growing economy and relatively high education levels among the population, but limited creation of high-skilled jobs, which are concentrated in the capital
- a gradual improvement in labour market participation and an ongoing exit from agriculture, but still modest use of existing human capital potential
- persistent difficulties in finding a first job, leading to either unemployment or inactivity, even though young people have a higher level of education
- relatively high levels of skills mismatch faced in the labour market in different forms, e.g. over-qualification, under-qualification, skill gaps, working in a field different to education field
- relatively high levels of poverty and inequality, which prevent people from reaching their full potential in education and the labour market and lead to more vulnerabilities in life.
This section focuses on how the VET system fits into this 'big picture' in Georgia. Potentially, VET could be one of the solutions for better use of human capital, namely by facilitating youth transition, reducing skills mismatch and reducing poverty and inequality. The analysis results for the last three issues (i.e. youth transition, skills mismatch, and poverty and inequality) point the finger at the VET system. For example, VET can help to make it easier for young people to enter the labour market, particularly through practical learning and links with companies. An examination of labour market performance on the basis of education reveals that graduates of VET and higher education fare much better in their transition to work, compared to the graduates of only lower and/or upper secondary education. VET can also help to reduce skills mismatch by supplying the skilled and semi-skilled workers needed in technical fields and solving the under-qualification of workers. Finally, given the signs of social inequality in education, VET might be one of the ways in which people can exit poverty and vulnerability, and certainly provide better labour market prospects for those leaving agricultural employment.
The next section discusses whether the potential that VET has is exploited fully to address the economic and social challenges explained above. It is obvious that VET alone cannot solve all the problems, and there is also a need for other policy responses on the broader issues of economic and labour market reforms. Due to the focus of this report and space limitations, this section consciously leaves out these labour market-related issues regarding more efficient use of human capital in the economy. For VET to become a part of the answer to those challenges, however, it is expected to overcome two obstacles identified below: (i) disparities in access and low participation in VET, and (ii) the varying quality and relevance of VET provision. After reviewing these obstacles, it reviews the policy responses developed so far and the implementation gaps. This section concludes with some recommendations.