Stigma over vocational courses contributes to youth unemployment



A low regard for vocational education contributes to the high rate of youth unemployment, experts say.

Dr Naji al Mahdi, the head of the national institute for vocational education, puts the perceived stigma down to a lack of visible role models. However, he said many successful people, including the heads of oil companies, had started off on technical education programmes and on apprenticeships.

Children are not connecting with inspirational people from a young enough age, he said: "By 18, it's too late."

Beat Jost, a consultant with Worlddidac, said Switzerland had one of the lowest rates of unemployment in Europe thanks to strong vocational education. "There is a greater cost effectiveness of training someone in vocational education than at university or college," he said.

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The Melbourne Mercer Global Pension Index

The Melbourne Mercer Global Pension Index

Mazen Abukhater, principal and actuary at global consultancy Mercer, Middle East, says the company’s Melbourne Mercer Global Pension Index - which benchmarks 34 pension schemes across the globe to assess their adequacy, sustainability and integrity - included Saudi Arabia for the first time this year to offer a glimpse into the region.

The index highlighted fundamental issues for all 34 countries, such as a rapid ageing population and a low growth / low interest environment putting pressure on expected returns. It also highlighted the increasing popularity around the world of defined contribution schemes.

“Average life expectancy has been increasing by about three years every 10 years. Someone born in 1947 is expected to live until 85 whereas someone born in 2007 is expected to live to 103,” Mr Abukhater told the Mena Pensions Conference.

“Are our systems equipped to handle these kind of life expectancies in the future? If so many people retire at 60, they are going to be in retirement for 43 years – so we need to adapt our retirement age to our changing life expectancy.”

Saudi Arabia came in the middle of Mercer’s ranking with a score of 58.9. The report said the country's index could be raised by improving the minimum level of support for the poorest aged individuals and increasing the labour force participation rate at older ages as life expectancies rise.

Mr Abukhater said the challenges of an ageing population, increased life expectancy and some individuals relying solely on their government for financial support in their retirement years will put the system under strain.

“To relieve that pressure, governments need to consider whether it is time to switch to a defined contribution scheme so that individuals can supplement their own future with the help of government support,” he said.


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