The interaction between the labor market and the market of educational services in higher education

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The interaction between the labor market and the
market of educational services in higher
education in the Russian Federation
  Foundation Centre for strategic studies
North-West
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1. Russia has entered a phase of economic growth
Russias economic indicators in 2002-2005 (growth
rate, )
Source ????? (2006 ???)
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2. Economic growth is due to restructuring of the
economy and transformation of the labor market

• Shortening of life cycle of professions and
  inflation of qualifications
• In the 90s 40 of Russian employees changed their
  professions (K. Sabiryanova)
• Are qualifications indicated in the employees'
  diplomas really relevant to positions held by
  them?

Source ??? ??????-????? (survey of 890
employers in 10 regions of the RF, 2005)
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2. Economic growth is due to restructuring of the
economy and transformation of the labor market

• Globalization of the labor market including
  increase in labor force migration and unification
  of systems of qualifications, quality assurance
  systems and technological standards
• Since 1989 until 2002 Russia has allowed 11 mln
  people into the country which averages out to 850
  thousand immigrants annually.
• In Russia there is an increase in professional,
  technical and managerial employees which are
  engaged in the implementation of foreign projects
  and filling vacancies, for which the country does
  not provide competences and skills.
• There is a growth in the number of Russian
  enterprises that are introducing international
  quality standards, governance and technology.
• Migration to receive vocational education and
  practical training is on the increase. In 2004
  alone 34.5 thousand of Russian students received
  education abroad.

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2. Economic growth is due to restructuring of the
economy and transformation of the labor market

• The change in qualitative features of the labor
  force (complementing of the qualification system
  with the system of competences)
• Cost increase of the labor force with a
  simultaneous cost decrease in standard typical
  industrial operations. Population income growth
  rate is getting ahead of GDP growth and the
  growth of labor productivity

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3. Lack of balance on the Russian labor market
Is there a personnel shortage in your
enterprise?,
Labor market in Russia is transforming slower
than the overall economic situation in the
country and its status in the global economy.
Hence qualificational, territorial and
sectoral unbalances on the labor
market Shortages in the labor force occur even
in the growing and financially stable sectors of
the economy the oil and gas, metallurgy,
chemicals and others. (see table) It takes
longer to train labor force than to create fixed
assets, let alone to resolve trading/logistical
problems of supply of any product in the world to
remote markets
Source ??? ??????-????? (survey of 890
employers in 10 regions of the RF, 2005)
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4. The system of vocational education is not a
mechanism for synchronizing economic processes
and the labor market
The market of educational services is separated
from the labor market. Universities take into
account the demand from students and their
parents (disregarding employers) to train
manpower. Hence different assessments of the
training quality in educational institutions,
which come from faculty and students, on the one
hand and employers, on the other.
According to CSS N-W survey of over 8,900
university students in 10 regions of the Russian
Federation in 2005, 46 of those surveyed were
satisfied with the level of training in
educational institutions 40 - were more
satisfied than not 10 - chose to answer More
yes than no. And only 2.39 are not satisfied
with how they are trained. According to the
survey conducted by CSS N-W of over 100 employers
in 10 regions of the Russian Federation in 2005,
it is the Russian universities that are
functioning poorly. 39 of the surveyed believe
that the quality of manpower training in
universities has worsened over the last 10 years.

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4. The system of vocational education is not a
mechanism for synchronizing economic processes
and the labor market
The market of educational services is not
relevant to the technology market. Russian
universities do not play a significant role in
the national innovation system (universities got
only 5.5 of total expenditures on RD), and
therefore, they cannot create new professions on
the labor market Share of higher education
sector in RD expenditure in 2003,
???????? ?? ?????? ????? ?????????
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4. The system of vocational education is not a
mechanism for synchronizing economic processes
and the labor market
The market of educational services cannot create
new professions, as it is linked to obsolete
organizational structure and institutions.
Organizationwise, the vocational education
system is very conservative and is many cases
repeats the structural peculiarities of 1960s,
being oriented toward solving problems of
industrialization, limited to servicing local
markets of educational services
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5. Necessary steps

• Modernization programs in higher vocational
  education needed to make the labor market
  relevant to the dynamics of economic processes in
  the Russian Federation
• Integration of the labor market and the market of
  educational services
• In addition to the projects implemented by the
  Ministry of Education and Science that are aimed
  at including the employer into university
  governance, there is a need for
  institutionalization of requirements set by
  employers for universities
• Annual publishing by employers of university
  rankings and additional qualifications ranking
  for those seeking job opportunities
• Development in universities of educational
  brokerage, sandwich programs (alternating
  studies with work)
• There is a need for overhaul of the system of
  control over vocational education institution,
  requirements for curricula and educational
  standards
• Transfer of the Russian system of vocational
  education to lifelong learning

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5. Necessary steps

• Development of innovative technological potential
  of universities
• Development of technology marketing, long-term
  forecasting of the development of the technology
  market (technology foresight), new approaches to
  university assessment based on their role in the
  innovative technological complex in the Russian
  university system
• Improving the state support for innovative
  universities and programs
• Technology market evaluation as an integral
  element of project rationale
• Scale evaluation of the effect of RD programs
  implemented by universities on the technology
  market
• Creating linkages between support for innovative
  universities and the priorities of state policy
  in technology (critical technologies complex)
• Creation of linkages between university
  development and programs of support for
  innovations and technologies that are currently
  being implemented in the Russian Federation

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5. Necessary steps

• Reforming vocational education, university system
  and internal organization of educational
  institutions in the Russian Federation
• Development of the market of educational services
  and securing leading positions in the key
  segments training elite manpower to be able to
  work with global knowledge and processes
  leadership of universities in innovations and
  technologies availability of system for quick
  and flexible transfer of mass standard
  qualifications. Development of innovative
  universities
• University system is in need of programs of
  brain import (attracting the best teachers,
  researchers and students from all over the world)
• There is a need for comprehensive modernization
  of educational technologies, wide-scale
  application of IT as traditional educational
  formats go down in price
• Creation of flexible educational process and
  flexible programs , development of lifelong
  learning

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6. Scenarios for higher vocational education
(HVE))
There are two scenarios for further development
of vocational education which fit well with two
major scenarios for the development of the
Russian economy
The HVE system designed for mass production of
manpower, preservation of a bigger segment of
primary and secondary vocational education
Economic growth due to use of available resources
Securing leadership position in key segments of
vocational education, research and transfer of
knowledge in technologies
Economic growth due to increase in innovations
and productivity
Economic growth in Russia, labor force cost
increase, demographic decline and growth of mass
higher vocational education make one choose the
second scenario.