This report presents new insights on theavailability and demand for skills, drawing on twoinnovative surveys: a household level survey to measure thesupply of skills in the adult population, and an employersurvey to measure demand for skills. The key message comingfrom these two surveys is that there is indeed a significantskills gap in the former Yugoslav Republic of Macedonia, andthat closing this gap will be beneficial to workers, firms,and the economy. Skills development systems in the formerYugoslav Republic of Macedonia are not equitable, andespecially those of non-Macedonian ethnicity lack access toskills development and higher skilled jobs. Access toeducation still differs significantly across ethnic groups,and the gap does not appear to fall over time. Some morevulnerable groups in the former Yugoslav Republic ofMacedonia consequently accumulate fewer skills - evenelementary skills such as basic literacy - and have lessaccess to skilled jobs. The skills development system of theformer Yugoslav Republic of Macedonia will be strengthenedby stronger coordination and collaboration between thesedifferent actors. Tax exemptions and other forms offinancial incentives could be used to encourage firms totrain their work force. However, policy could also focus onconnecting employers and educational institutions better, byestablishing coordination mechanisms and supportingindustrial associations. As part of this agenda, it would beuseful to explore ways of introducing apprentice- andinternships systems, that expose students with the world ofwork and increases the practical content of training, whilelowering the cost to firms. Efforts to establish labormarket information systems in the former Yugoslav Republicof Macedonia, that could help students, workers, employersand educational systems exchange relevant and timelyinformation, are ongoing. A more comprehensive system formonitoring and evaluation would help policy makers identifybottlenecks and quality problems.
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