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18 December, 2023As the world continues to evolve, there is a need to reinvent and adapt transnational human rights norms to effectively address the emerging challenges. Growing inequality and poverty, a surge in hate crimes against minorities, the looming threat of climate change, and ongoing discrimination against women indicate a pressing need for stronger compliance with human rights and a greater focus on accountability from governments and citizens alike. At FSI, we seek to find deeper understanding and consensus on human rights-related issues and how we can act as a global community to address these issues collectively and advance towards more justice, greater dignity, respect for human equality and better solutions for the world.
ABSTRACT
Switzerland
ranked as the best education system in the world but ranked third overall in
the entire human capital report. Switzerland’s education system is one of the
most advanced in the world. This distinctive characteristic of the Swiss
education system is taking into account the wishes and the abilities of
students. This attribute is done by diversifying the different directions a
student can take once they’re done with their education. at the same time,
there are few sectors where it gets flatter. It is analyzed in detail perspective
and the suggestion that brings out the best practice to eradicate the same is
mentioned here.
___________________________________________________________________________
There is a
clear and strong correlation between the educational attainment of a state’s
workforce and median wages in the state. States can build a strong foundation
for economic success and shared prosperity by investing in education. Providing
expanded access to high quality education will not only expand economic
opportunity for residents, but also likely do more to strengthen the overall
state economy than anything else a state government can do. States can increase
the strength of their economies and their ability to grow and attract high-wage
employers by investing in education and increasing the number of well-educated
workers. Investing in education is also good for state budgets in the long run,
since workers with higher incomes contribute more through taxes over the course
of their lifetimes. Skill acquisition is measured directly through subjective
assessments. We find that higher educated workers are more likely to acquire
additional skills. While this is primarily explained by between and within the
occupation effects. Over educated workers with a vocational degree acquire
fewer transferable and additional skills compared to similar educational backgrounds.
Thus, higher-educated employees are more likely to acquire skills during their
first jobs than lower-educated people. And this is very applicable for
Switzerland which possess skilled workforce.
TABLE 1 : SWITZERLAND
HIGHER EDUCATION ATTAINMENT
YEAR |
SHARE OF EDUCATIONAL ATTAINMENT OF THOSE AGED 25 |
2014 |
88% |
2015 |
88.2% |
2016 |
88.5% |
2017 |
88.8% |
2018 |
88.9% |
2019 |
90.2% |
2020 |
90.1% |
2021 |
90.3% |
SOURCE:
World Bank Data.
There is a high
consensus among economists that education is one of the key determinants of
people’s earnings. According to the human capital theory by Mincer,
education is an investment that increases the market skills and productivity
of individuals who undertake it. Consequently, these individuals earn higher
wages in the labor market for their higher skills and productivity. While
monetary returns to education take the form of higher earnings that people
command in the labor market, there may also be non-monetary returns since
higher education is often associated with psychic gains, such as increased
respect from others. Like any other investment decision, investing in
human capital through education entails costs that are borne in the short term
with the expectation that benefits will be captured in the long term. The
question of whether returns to education are high enough to justify the costs
of additional education is an important question, not only for individuals but
also for policymakers. It is often argued that government policies can improve
the economic well-being of the poor by subsidizing their education, offering
loans for college students, and imposing minimum education requirements.
The typical method for estimating the rate of returns to education
requires data on the earnings and levels of education of different individuals,
along with estimations of the percentage change in earnings. The discussion
above assumes that education increases individuals’ earnings by raising their
productivity. An alternative argument is that education can increase earnings
even if it does not make individuals more productive. The most common
approach for determining the rate of returns to education includes data on
different individuals’ wages and levels of education, as well as estimates of
the percentage change in earnings. The preceding explanation implies that
education boosts people’s wages through increasing their productivity. Another
point is that education can enhance incomes even if individuals weren’t more
productive.
Switzerland was an impoverished country in
the nineteenth century, with a major portion of the people surviving on
subsistence farming. The number of job opportunities has expanded as a result
of rapid urbanisation and industrial expansion. Because Switzerland
has so many multinational corporations, the demand for job seekers increased,
and more people were employed at the same time. However, this is only
applicable to the business and manufacturing sectors. This indicates that the
service sector dominates the Swiss economy. Switzerland’s tourism business is
booming, with jobs in the hospitality industry available all around the
country. Many international workers, particularly those with advanced degrees,
find work in Switzerland.
Professionals can improve their earning
potential by honing and honing their abilities and skills. Switzerland has
placed a higher focus on making an educational system capable of producing
individuals capable of working in emerging sectors such as healthcare and
industry. A push to strengthen the public’s basic education arose as well, with
a growing notion that everyone has the right to an education. Better-trained
people stimulate good outcomes and economic consequences throughout the society.
In other sense, sense, having a skilled labour source from which to acquire
personnel is an external aspect that all businesses profit too.
TABLE 2: EMPLOYMENT RATE OF SWITZERLAND
YEAR |
EMPLOYMENT IN MILLIONS |
2014 |
4.82 |
2015 |
4.9 |
2016 |
4.97 |
2017 |
5.01 |
2018 |
5.07 |
2019 |
5.1 |
2020 |
5.09 |
2021 |
5.1 |
2022* |
5.14 |
*-on the basis of speculation
SOURCE: World
Bank Data.
Nonetheless, because
the labour market is so limited, it can be difficult for
international graduates to find job. Job competition is tough, especially as
Swiss firms have begun to favour locals over foreigners in recent
years. International workers may have a better chance in major Swiss cities
than in smaller towns and villages. However, the cost of living in Swiss cities
is considerable, which is offset by the country’s high incomes.
Switzerland is currently experiencing
a labour shortage in the following areas:
Engineering
Financial services
Information Technology
Pharmaceuticals.
TABLE 3 : EDUCATIONAL ATTAINMENT RATE AND
LABOUR RATE IN CONCERN TO EMPLOYMENT SHORTAGE SECTORS
NAME OF THE SECTOR |
EDUCATIONAL ATTAINMENT RATE |
LABOUR RATE |
Engineering |
68.66% |
44.2% |
Financial service |
76.3% |
39.27% |
Information technology |
81.5% |
57.6% |
Pharmaceuticals |
88.7% |
67.4% |
SOURCE: OECD Data.
Graduates with these abilities and
qualifications, on the other hand, are in high demand. How can we resolve the
issue in the same manner?
1.Engineering
Engineering advancement and innovation
are always changing. Technological breakthroughs occur on a regular basis.
Prior to anything else, mastery of the subject is required. Candidates with
some practical experience are preferred by employers. The
frameworks/skills required by the corporate sector and those being learned by
students are vastly different. This particular requirement of enabling
comprehensive and intense experience learning is missing among the many
up-skilling and re-skilling options accessible. As a result, the large
skill-to-technical-changes divide must be bridged.
2. Financial Service
Starting a career in finance requires a
combination of experience and education. Finance education can also educate
students to financial concepts and essential information that they can apply in
their future careers. An apprenticeship allows you to gain experience in the
financial industry while learning more about it. Graduates must conduct
research in order to gain a better understanding of the financial system. This
will provide an opportunity for exposure. As a result, in finance occupations,
academic competence and the ability to deal with numbers are required.
3. Information Technology
Only with the support of the IT sector can a
prosperous economic growth be achieved. The pattern or character of growth, on
the other hand, is important. Economic growth has an impact on the development
of productive jobs not just because of the rate of increase, but also because
of the efficiency with which growth is translated into productive jobs. When
there is breakthrough in IT, the efficiency of diversification can be improved.
Because the constraint operates as a roadblock to providing an efficient output
rate, the answer may be to expand international trade and adjust the employment
market on a regular basis. This may result in an increase in a company’s
overall earnings.
4. Pharmaceuticals
Jobs in pharmacies and pharmacies may not be
the same as they were in the past. According to recent assessments, it is a
profession that will continue to be in demand. Regardless of the changes that occur
around it, pharmacy will always be an employees service that revolves
around patients and medicine. The pharmaceutical and biomedical industries both
rely heavily on research. New drugs, composition and quality integration,
toxicity tests, and the establishment of drug testing are all tasks that
trained field workers must complete.
SUMMARY
OF FINDING AND CONCLUSION
The
pay scale is put under downturn as the labour supply grows. Wages frequently
fall when employers’ demand for workers does not keep up with the labour
supply. Employees in industries with minimal barriers to entry for new
employees—those with occupations that don’t require a degree or any specialised
training—are particularly harmed by an excess supply of labour. In contrast,
sectors that demand more knowledge and training tend to pay greater earnings.
The higher compensation is owing to a limited labour supply capable of
operating in certain industries, as well as the large costs of required
education and training. A successful economy has a workforce that can operate
industries at a level that gives it a competitive advantage over other
countries’ economies. Nations attempt to incentivize training through tax
breaks, training facilities, and a number of other methods aimed at producing a
better competent workforce.
A
prosperous economy has a workforce that can operate areas of the economy at a
level that creates a competitive advantage over other economies’ gdp. Nations
may attempt to incentivize training through tax incentives, the provision of
training facilities, or a variety of other methods aimed at producing a better
competent workforce. Since educated people can more precision and reliability
out tasks that involve reading and critical thinking, a country’s economy
becomes more productive as the proportion of skilled employees increases.
Article by Samyuktha Subramaniam, Intern, Frost & Sullivan Institute
#Education #skilledworkforce
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