Building Future-Ready Technical and Vocational Education Systems

Across many countries, TVET is gaining political importance as governments search for education and training models that are responsive, effective, and closely aligned with labor market needs.

As Yuri Belfali, Head of Division for Early Childhood and Schools at the OECD, explained, “Technical and Vocational Education and Training (TVET) is becoming a higher political priority in many OECD countries. TVET programs are widely regarded as relevant and effective, as they prepare learners to make practical contributions to the economy through relatively short, modular programs that can be more easily adapted to technological change and shifting labor market needs.”

Compared with traditional degree pathways, TVET’s modular and flexible structure allows systems to respond faster to emerging skills gaps. For policymakers, this offers a way to strengthen employability and productivity more quickly than broader higher education reform.

“For learners, TVET programs offer opportunities to develop skills that are immediately useful for entering or progressing in the labor market, while also providing a strong sense of purpose and relevance in their learning. Compared with longer tertiary degrees, TVET often involves lower direct and opportunity costs, making it an attractive pathway for young people seeking faster labor market entry and for governments aiming to strengthen employability and productivity in a cost-effective way,” Yuri explained.

Taken together, these factors position TVET as an increasingly strategic pillar of modern education systems.

For TVET systems to remain relevant, Fellows emphasized the importance of aligning programs closely with evolving labor market demands. Central to this alignment is the effective use of labor market intelligence and data.

Tarek Chehidi, Global Head of the Future of Work at Teach For All, stressed the importance of continuous engagement with employers:

“There’s a need to have systems that collect data from employers in terms of their needs… [it’s about] always having conversations with industry, what is changing in the way work is done, [and] what needs to be updated in the curriculum... This requires foresight, research, data systems, and collaboration between TVET and industry.”

Digital technologies can significantly accelerate this process. Hugo Nakatani, a TVET expert at the SENAI National Service for Industrial Training in Brazil, advocates using tools such as artificial intelligence, machine learning, and big data to inform curriculum design.

He suggested “a transition from an analog way of building and updating curricula to a real-time, AI- and data-driven process that provides answers for TVET schools” on how best to adjust curricula to market needs. “The process of building and delivering TVET curricula must become more dynamic…teachers should be able to adjust learning pathways during the course to meet urgent market necessities,” he elaborated.

El Iza Mohamedou, Head of the OECD Centre for Skills, reinforced the importance of integrating multiple sources of evidence. She noted, “when it comes to the alignment of TVET systems with current and future labor market needs, what’s important is the integration of labor market information systems. It’s about looking into how we can combine administrative data, survey evidence, and skills forecasting tools, so that we can use those inputs to update curricula and qualifications on shorter cycles.” She added that “structured governance mechanisms” are necessary to ensure employers and other stakeholders remain actively involved in the process.

While labor market alignment is critical, Fellows emphasized that TVET reform must also reflect the realities of learners’ lives.

Tarek highlighted inclusive design, noting “it’s very important to involve young people, parents, and communities in the conversations and design [of curriculum].” This engagement helps ensure that diverse perspectives, including different circumstances, aspirations, and expectations, are reflected in course offerings.

Flexible learning structures are particularly important for young people balancing education with employment. As Tarek noted, “Some young people want to work at the same time, so while working, it’s important they have access to learning modules that, over time, can lead to a qualification.”

Hugo emphasized the value of individualized learning pathways. “Learning pathways should be modular, stackable, and personalized, with micro-credentials that certify skills acquired inside or outside school…Offering intermediate certifications helps [learners] earn, stay motivated, and keep progressing,” he explained.

Learners should also clearly see how their education connects to their goals. “It should be easy for them to see what skills they have, what programs fit their style, and how each step connects to their goals,” he noted.

Looking ahead, El Iza pointed to the importance of expanding TVET into emerging sectors:

“It’s expanding TVET provision to these non-traditional areas like digital technologies, advanced manufacturing, [and] renewable energy... When we use labor market evidence to design those programs, that makes those programs more modern, attractive, and future-oriented for young learners,” she explained.

Beyond technical expertise, Fellows highlighted the growing importance of Social and Emotional Learning (SEL) in preparing learners not only for their first job but for lifelong participation in society. Skills such as adaptability, resilience, communication, problem-solving, and teamwork enable learners to navigate uncertainty and continue learning throughout their careers.

As Yuri explained, “Transversal and employability skills are in high and growing demand. Mastery of occupation-specific skills alone is no longer sufficient for success in today’s labor market. As TVET evolves rapidly in response to technological change, these broader skills provide learners with a vital foundation for lifelong learning. Adaptability, resilience, problem-solving, communication and teamwork remain relevant well beyond any single role or technical task.

Strong foundational skills enable all learners to transfer what they have learned across different contexts, occupations, and technologies, supporting resilience, continuous upskilling, and sustained employability throughout their working lives.”

Tarek also emphasized the importance of a holistic approach to education, noting we should think about “the holistic development of students rather than just the technical part.” He believes students should become life-long learners who are resilient, adaptable, and curious.

Hugo highlighted the balance between technological change and human capability: “Technology is a way, not the end. It changes every day, but the human challenges remain... Critical thinking, collaboration, and adaptability are indispensable so people can create their own learning pathways.”

Delivering adaptive TVET systems ultimately depends on educator capacity. Teachers and trainers must be able to respond to evolving technologies, changing industries, and diverse learner needs.

“Ensuring that TVET educators have the support they need to be adaptive and flexible is essential... TVET teachers need leadership skills - not only technical skills or teaching skills,” Tarek noted.

Lifelong learning must therefore extend to educators themselves. As El Iza explained, “it’s important to strengthen teacher and trainer capabilities, particularly through structured professional development... Focusing on these emerging technologies and pedagogies that cultivate problem solving, digital literacy, and other types of transversal competencies.”

At the system level, sustained partnerships between education providers, employers, researchers, and governments are equally critical. “There should be mechanisms and spaces where this engagement happens continuously... When the engagement is over time, the needed mindset shifts happen,” Tarek suggested.

Hugo emphasized that collaboration must across sectors, as “partnerships must also include researchers who can forecast future skills, the productive sector with its real skills demands, and governments who provide funding and infrastructure.”

El Iza highlighted the importance of formal cooperation structures, including “developing formalized partnerships to co-design programs, secure work-based learning places, and update training equipment. When it comes to partnerships, it’s important to create long-term cooperation frameworks so that we can incentivize employers to participate in curriculum design.”

Across these perspectives, Salzburg Global Fellows converge on a shared vision of TVET systems grounded in real-world labor market needs, designed around learners, supported by educators, and strengthened through sustained partnerships.