Skills development: a catalyst for global progress

Well-functioning Technical and Vocational Education and Training (TVET) systems are essential for improving employment outcomes, boosting productivity, and fostering sustainable development.

As highlighted in the Building Better Formal TVET Systems report, jointly published by the World Bank, UNESCO, and the ILO, TVET can help align the supply of skills with market demand and respond more effectively to evolving labour needs. In doing so, it plays a critical role in advancing Sustainable Development Goal 8 – to promote sustained, inclusive and sustainable economic growth, full and productive employment, and decent work for all.

“TVET alone may not drive economic growth, but it is a critical enabling factor. It provides the practical, job-relevant skills that economies need, and when designed with flexibility and lifelong learning in mind, TVET becomes essential for continuous upskilling and reskilling across the workforce.” says Dr Xiaoyan Liang, Lead Education Specialist and focal person for Skills and Technical and Vocational Education and Training at the World Bank.

“Some of the most advanced economies have long maintained robust TVET systems. In countries with strong dual training models, such as Germany and Switzerland, up to 70% of secondary students are in vocational tracks,” she explains. “We are seeing similar developments in emerging East Asian economies such as Singapore, South Korea, China, Vietnam and Malaysia, where TVET is increasingly the pathway of choice for a growing share of students.”

One of TVET’s key strengths is its practical orientation – delivered through either school-based workshops or work-based apprenticeships – which enhances the job-readiness of graduates. It also plays a vital role in supporting economic diversification, especially in low- and middle-income countries, as it equips the workforce with more advanced and diverse skills. “In Africa, for instance, many economies rely heavily on exporting raw materials. Without technical skills, they cannot move up the value chain to process and add value locally,” Dr Liang notes. “Investors often cite the lack of skilled workers – alongside infrastructure and tax issues – as a major deterrent. TVET helps close that gap, increasing productivity and making countries more attractive investment destinations.”

TVET also serves as a vital inclusion tool. For young people not in education, employment or training, it offers entrepreneurial skills and certifications that enable participation in the local economy, making it a powerful lever to help reduce poverty.

However, TVET faces persistent challenges to its prestige and attractiveness, particularly a lack of awareness of labour market demands and the benefits of vocational training.

“The issue is perception, not performance,” Dr Liang stresses. “In countries like Germany, China and Singapore, employment rates for TVET graduates exceed 80%.” She highlights the role of organisations such as WorldSkills in shifting public opinion, raising the profile of vocational pathways and inspiring students to pursue them.

Flexibility and opportunity are also central to TVET’s attractiveness. “Students should be able to move between vocational and academic tracks,” says Dr Liang. “Creating clear, well-articulated qualification frameworks enables those transitions and ensures that TVET is not seen as a dead end.”

Dr Liang believes the line between higher education and TVET is becoming increasingly blurred in the pursuit of relevance. She argues that the definition of TVET must be broadened. “As higher education moves away from the ‘ivory tower’ model, TVET is evolving to become more resilient and forward-looking. Most people associate TVET with narrow, supply-driven formal systems, but effective skills development must also include non-formal training, workforce and youth training (including for out-of-school youth), as well as both short- and long-term programmes – whether credentialed or not.”

To truly serve diverse learners and market needs, curricula must be regularly updated to align with the labour market but also be varied and student-centred. “People learn differently. TVET’s flexibility is one of its biggest assets,” says Dr Liang. “Learners can enrol in a short course, a micro-credential, or a one-year programme – like many IT trainings in India. This adaptability makes TVET highly relevant for a wide range of learners and employers.”

As economies navigate rapid technological change and shifting labour markets, investing in flexible, inclusive, and high-quality TVET systems is not just an educational priority, it is a strategic imperative for sustainable and equitable global development.