Statistical brief on apprentices in countries with large informal economies

Most young people around the world do not have the chance to attend formal institutions of learning. The capacity of formal education and training systems is often limited due to inadequate training infrastructures and the relatively high costs of full-time, centre-based training. Consequently, large numbers of youth are learning and then working in the informal economy. 

Informal apprenticeship systems that transmit the skills of a trade to a young person in a micro- or small enterprise have operated for generations in many countries. They are considered by far the most important source of skills training in Africa and South Asia.

Women and men in the informal economy often do not possess a formal proof of their skills. Skills acquired informally are not visible and hence are often not recognized by employers. Transitions to the formal labour market can also be facilitated if skills are assessed and recognized. Systems of Recognition of Prior Learning are being introduced by countries to offer access to further learning or to formal labour markets.

Increasingly, countries around the world, at all levels of development are putting work-based learning, particularly apprenticeships, high on their policy agenda, recognizing its potential for reducing skills mismatch, meeting skills demand of a fast changing labour market, providing cost-effective training, promoting private sector development and smoothing transitions to the world of work. 

Moreover, the issue of how skills are used in the workplace and how businesses engage with the local skills ecosystem are getting greater attention. It is increasingly recognized that workers who better use their skills are more likely to have greater job satisfaction, earn better wages and are more prepared to adapt to changes in the nature of work, while employers benefit from a more productive and innovative workforce, enabling them to maximise business performance and profitability.