Supply and demand matching of VET skills - a regional case study

Abstract

The proper alignment between supply of Vocational Education and Training (VET) and labour market demand is critical to successfully achieve VET’s main benefits, such as reduction of academic dropout rates, unemployment reduction and economic growth. This article presents the study carried out in Leiria region (Portugal) to define VET areas priorities at the secondary education level. A mixed methodology was applied by using both quantitative (employment microdata, employers survey and employment offers analysis) and qualitative (interviews, focus groups and documents analysis) instruments and techniques. A diverse group of stakeholders (e.g. regional policymakers and private and public sectors’ employers) were heard in order to anticipate the market’s needs for skills. The results, obtained through the various methodologies, point to the same skills’ priorities and reveal several mismatches between demand and supply of qualifications. Thus, this study helps policymakers to prioritize areas of education and VET providers to design courses aligned with the real needs of the region’s labour market. Additionally, several challenges are identified, as the need of a better dialogue between the VET system and employers. By increasing the quality of VET supply, our policy suggestions contribute to reduce future demand-supply imbalances, and therefore, to reduce unemployment, control the demographic problem, increase the companies’ expansion and promote regional development.