2007年-世界发展银行全球_Mongolia___Building_the_Skills_for_the_New_Economy_56页_1mb

Mongolia: Building the Skills for the New Economy

Core Content Overview

This report from the World Bank analyzes the labor market challenges in Mongolia as the country transitions from a planned economy to a market economy. It outlines three major interrelated challenges: joblessness, job informality, and skills mismatch, and proposes policy options to address them.

Main Challenges in the Labor Market

1. Joblessness (Unused Human Capital)

• High rates of joblessness: 27% of the working-age population are unemployed and not in education.
• Idleness is prevalent: About 21% of the working-age population is idle, meaning they are neither working nor seeking employment.
• Urban youth are disproportionately affected: Unemployment is particularly high among urban youth.
• Education and skill gaps: Many workers lack the skills to be productive, especially general skills like critical thinking, communication, and teamwork.

2. Job Informality

• Most workers are informal: 60% of workers are in informal employment.
• Informal workers are low-skilled: 92% of informal workers are low-skilled self-employed individuals in agriculture.
• Informality is increasing: The share of salaried workers without social security benefits is rising.
• Youth and low-skilled workers are most affected: Informality is especially high among youth and those with low education levels.

3. Skills Mismatch

• Changing skill demands: The economy is shifting toward higher demand for general skills (critical thinking, behavioral skills) and technical skills (IT, English).
• Supply of skills is inadequate: 30% of firms report a shortage of skilled and educated workers.
• Vocational education is underdeveloped: It accounts for only 10% of post-basic education enrollment.
• Education system is not aligned with market needs: The curriculum and teaching methods do not emphasize the skills needed in the modern economy.

Key Policy Recommendations

Improving the Skills for Work

• Enhance educational preparation: Focus on adolescent education and improve learning outcomes, especially in problem-solving and practical skills.
• Adapt curriculum and teaching methods: Align education with new labor market standards and integrate student-centered learning.
• Provide second chance learning opportunities: Support out-of-school youth with flexible, practical, and accessible programs.
• Develop a modular, competency-based curriculum: Especially in vocational and technical education.
• Strengthen partnerships with the private sector: Encourage collaboration for curriculum development and job-based learning.

Designing Social Welfare Programs That Encourage Work

• Reform the pension system: Reduce minimum pensions and eliminate incentives for early retirement.
• Improve the Child Money Program (CMP): Make it more incentive-compatible with work and reduce its disincentive effect.
• Promote work incentives: Social assistance programs should not discourage employment, especially for youth.

Enhancing Productive Employment Opportunities

• Improve the investment climate: Address corruption, high taxes, and limited access to financing.
• Reduce social security contributions: Lower corporate and social security taxes to encourage job creation.
• Regulate temporary contracts: Ensure they are used appropriately and provide social security benefits.
• Align public sector wages with private sector: Make public sector wage increases performance-based to avoid labor market distortions.

Strengthening Labor Market Institutions

• Expand coverage of active labor market programs: Include more workers, especially those in the informal sector.
• Support small businesses: Encourage entrepreneurship through labor market policies.
• Improve employment services: Increase access to job information and support for job seekers.

Key Information and Statistics

• Currency: Togrog (MNT), with 1 USD = 1,100 MNT.
• Fiscal Year: January 1 to December 31.
• Education System: Expanded to 12 years in 2009.
• Enrollment in vocational education: Only 10% of post-basic education enrollment.
• Idleness rates: Peak just before retirement age, especially among women and men in their 40s and 50s.
• Pension system: High minimum pensions and early retirement incentives discourage work.
• Private sector involvement: Limited due to lack of quality assurance systems.
• Unmet demand for skills: 30% of firms report major or severe skill shortages.

Conclusion

The report highlights that Mongolia's labor market challenges are deeply rooted in structural issues in education, policy failures in social welfare and investment climate, and labor market segmentation. To build a more resilient and productive economy, it is essential to align education with labor market needs, reform the pension and social assistance systems, and improve the investment climate. By providing second chance learning opportunities, enhancing vocational education, and promoting flexible and fair labor market policies, Mongolia can better equip its workforce to meet the demands of the new economy.