Israel has experienced strong economic growth over the last decade, and unemployment is now below 5%. Skills shortages are emerging in several technical areas. If Israel is to meet the demand for skills and to support its economic growth it can either increase external migration or/and use its education and training system more effectively. At the same time, inequity and disadvantage in some population groups are raising the profile of other demands for vocational training as a vehicle for social inclusion. Collectively, these factors are driving policy interest in developing a vocational education and training (VET) system which is currently both fragmented and of modest scale when compared with the VET systems of other OECD countries.

In coming years Israel will need to invest substantially in skills, given a growing economy, a wave of retirements among technically trained immigrants from the former Soviet Union, low labour force participation in some sub-populations, and continuing problems with weak labour productivity. Collectively, these factorsundermine the Israeli economy and social cohesion.

This chapter describes the main characteristics of Israeli apprenticeship and vocational education and training (VET), and recent policy developments in Israel. It assesses the strengths of the system, the challenges that remain, and summarises suggestions for policy advanced in depth in later chapters of the report. Subsequent chapters examine different topics by introducing a challenge experienced by VET in Israel, advancing policy suggestions, providing arguments for the proposed policy solutions and discussing how these policy solutions could be implemented in the Israeli context.

Chapter 2 argues that the development of vocational education and training (VET) in Israel could be significantly aided through attention to work-based learning, building on a range of current initiatives to develop apprenticeship and work-based learning both for young people and adults. This would involve an expansion of apprenticeship programmes and development of systematic shorter work-based learning placements in selected school-based VET programmes. Currently apprenticeship is designed as a path for drop-outs and is seen as a low status option. To become an attractive option both to young people and employers it should be fully integrated into the mainstream upper-secondary system. For adults, diverse work-based learning measures, including apprenticeship, may help to alleviate skills shortages and better integrate disadvantaged social groups into the labour market.

Successful vocational education and training (VET) systems require strong employer involvement. This chapter explores how to make VET in Israel more attractive to employers. In Israel few employers are able to realise long-term benefits associated with recruitment of the most able apprentices, since many young apprentices enter the military service after the end of the programme. The chapter argues that a well-designed apprenticeship can be beneficial to employers even in the short term. To this end, Israel may support employers with providing high-quality training in workplaces. This includes measures such as helping employers with administrative tasks, training of apprentice instructors, and providing additional support to employers offering apprenticeships to disadvantaged youth. The chapter also discusses how to address some key skills shortages. Sectoral training levies initiated by social partners are one option.

The vocational system needs to be coherent, with clear relationships between different vocational education and training (VET) programmes, and clear routes of transfer and progression between vocational training and general education programmes. This allows individuals to make the right choice of educational path and helps employers to understand and relate to the different vocational programmes. This chapter argues that to make the system more coherent Israel should give consideration to the creation of a single strategic body that will plan and guide policy development on VET, and champion VET within government. A national qualification framework would also make the system more coherent and transparent. Israel may consider expanding and diversifying provision at post-secondary level, and promote pathways so that vocational choices are not dead ends.

The basic skills of numeracy and literacy are positively associated with a range of important economic and social outcomes both for individuals and countries. In Israel, the basic skills of the adult population are weak in comparison to other OECD countries. This chapter argues that, in the context of vocational education and training (VET) programmes, improving the basic skills of Israeli population would lead to economic and non-economic benefits such as stronger productivity and a more equal society. Israel should ensure adequate levels of literacy and numeracy in all VET students, identifying the weakest performers and targeting teaching resources on them to improve their basic skills. Chapter 5 also argues that Israel may build basic skills education systematically into adult programmes. Basic skills are particularly low among Arab Israelis and Haredi Jews. Addressing basis skills weaknesses in the disadvantaged and underperforming populations should be a priority.