Developing vocational training in the Mozambique labour market

Project Active since Firms

Despite the high economic growth rates exhibited since the end of the civil war, Mozambique is still one of the poorest countries in the world. Its human development index is also particularly low, even when compared to other sub-Saharan countries.

Indeed, the data available suggests that the economic growth of the last decade has contributed little to poverty reduction. This may reflect the capital-intensity and limited spillovers of many of the megaprojects in resource sectors such as aluminium, coal, and natural gas that account for a large part of the growth during this period. In fact, most labour-intensive sectors – such as agriculture, agro-industry, labour-intensive manufacturing or services – have not exhibited significant changes in productivity and therefore job creation has been disappointing.

One of the factors constraining growth in sectors with higher prospects for job creation is the low level of technical skills of the Mozambican labour force. This project will investigate the potential of investments in vocational training to increase human capital in Mozambique, in particular of those who are less skilled, and thus to promote a more inclusive pattern of economic growth. In fact, training is a promising tool to increase productivity and earnings in developing countries, given its flexibility in terms of delivery and target groups, particularly when it is focused on skills in demand by the labour market.

A first component of the research will be based on consultations with different stakeholders in training in Mozambique, including the public agencies (INEFP), employer associations and unions, private firms and training centres, and international organisations and donors. We will describe the supply and demand for training in Mozambique and identify areas of success and of potential improvement. Furthermore, this project will investigate the possibility of conducting an evaluation of the impact of recent or ongoing programmes, as well as characterise the most pressing needs in terms of capacity building within the public administration.

A second component of the research will contribute to the characterisation of the Mozambican labour market drawing on micro data from an internet jobs portal. Using these data, including the preferences of job seekers, we will present evidence on the occupations most in demand in the labour market.