Torino Process 2018–2020 Ukraine - National Report

The development of Ukrainian labour market in 2017–2018 was characterised by positive changes, which reflected in the increase of the number of employed against the background of decreasing unemployment rate. However, the economic activity of population in the age of 15–70 remained insufficient, ranging from 62.0% in the 4th quarter of 2017 and 62.6% in the 4th quarter of 2018. The economic activity of men in 2018 was traditionally higher (69.0%) than that of women (56.8%). 
Despite the steady growth of employment rate in the last years (from 56.1% in the 4th quarter of 2017 to 57.1% in the 4th quarter of 2018), the differentiation of employment rates among various gender and age groups remained significant. The traditionally lower employment rate of women compared to men (52.5% vs 62.1% in 2018) is, to a great extent, a consequence of gender differences in work-life balance. Persisting segmentation of the labour market results in a significant differentiation of employment rates by age groups. In particular, the lowest employment rate was seen among the young people aged 15–24 (27.6% in the 4th quarter of 2018), while the age group of 40–49 retained the highest employment rate of 79.4%.   
Employment rates by the level of education attainment also differed greatly. In particular, in 2017, employment situation was characterised by the following distribution by education levels: people with complete HE – 70.5%, basic HE – 45.7%, incomplete HE – 61.2%, VET – 61.6%, complete general education – 42.6%.  At the same time, the number of jobs with decent working conditions and remuneration remains limited. Share of vacancies for skilled workers using specific tools registered by employers with SES grew from 22.1% in 2016 to 23.7% in 2018, elementary occupations – from 11.6% to 12.7%, while a share of vacancies for professionals decreased from 8.9% to 8.8% in the same period.  
A mismatch between skills acquired by graduates and employers' needs remains a serious challenge for the labour market. According to the World Bank's survey Skills for Modern Ukraine, almost 38 per cent of surveyed firms report that skills gaps prevent them from achieving their business objectives.  Workforce demand and supply mismatch (in terms of occupations and qualifications) significantly limits the possibilities for the transition of the economy to the innovation-driven development pathway as it requires additional costs to improve quality of acquired knowledge and enhance practical skills of the graduates. 
The Ukrainian labour market was characterised by the decrease of unemployment (under ILO methodology) from 9.5% of the active population in 2017 to 8.8% in 2018. The women unemployment rate in 2018 was 7.4%, and male 10.0%. At the same time, high unemployment of youth which was 17.9% in 2018 (19.3% among young women and 16.9% among young men) remains one of the critical problems of the Ukrainian labour market. In general, this speaks of existing gender specifics of young people entering the world of work (linked primarily with child-bearing of young women).  
Nevertheless, it is also necessary to stir up the economic activity of the population on the labour market by improving the effectiveness of vocational training programmes and implementing active employment policy measures. In 2018, 44% of the unemployed registered by SES had higher education, 37% had vocational education, 19% – GSE. In terms of occupational groups of the registered unemployed, equipment and machinery operators and maintenance workers are in the lead (19.9%), followed by trade and service sector occupations (15.1%), elementary occupations (14.1%), and top public officers and managers (13.2%). 
A significant part of informally employed population was preserved due to the slow pace of economic restructuring, despite the decrease in the share of the employed population (from 24.3% of the total population in 2016 to 21.6% in 2018). In 2018, the biggest shares of informal employment were concentrated in agriculture (42.9%), wholesale and retail trade (18.2%), and construction (15.9%), while the informal employment itself was most widespread among those aged 40 to 49.  Accordingly, there is still a significant number of jobs in the economy that do not require a high level of qualification, which greatly limits the possibilities for improving the quality of occupation. 
It is still a common practice to grant unpaid leaves (for the period of work suspension) and put employees on half-time for economic reasons. In 2018, the largest shares of employees facing such problems were concentrated in the industry sector (5.9% of the total number of employees), professional, scientific, and technical activities (3.8%). The existence of this forced half-time employment practice, as well as wage arrears, remain serious challenges for the development of Ukrainian labour market.
Regional differences in labour market development remain significant. This is caused by uneven socio-economic development of various regions. Specifically, the economically developed regions customarily demonstrate the highest employment rates (61.8% in Kyiv city and 60.6% in Kharkiv Region), while the lowest are observed in Volyn (48.8%) and Donetsk Regions (49.4%). 
Another serious risk for the development of Ukrainian labour market is not only the growth of labour migration abroad, but also the gradual loss of professional skills by those labour migrants who could not find a job adequate to their profession and qualification level. According to observations of the State Service of Statistics, almost 36.1% of labour migrants worked on jobs that did not require any qualification. Only 26.8% of migrant workers worked in accordance with their qualification.  Another significant challenge is a growing motivation of the youth for educational migration (see A.3.1). If the orientation of youth to seek employment abroad after obtaining education persists, the quality of the national human potential can degrade significantly. Considering the above, the persistence of the gross differentiation of the Ukrainian labour market can strongly affect the development of education by aggravating the challenges caused by a notable mismatch between the scope and structure of workforce demand and supply (in terms of occupations and qualifications).
 

Problem description: A mismatch between the skills and qualifications acquired by graduates at educational institutions and demands of the labour market remains considerable. This results in a growing imbalance of occupations and qualifications in the labour market and complicates the   implementation of lifelong learning concept (idea) in real life. According to The Global Talent Competitiveness Index,  in 2017, Ukrainian employers experienced difficulties finding skilled employees (4.53 points out of 7 possible).  At the same time, the experts evaluated the relevance of the education system to the economy in Ukraine as insufficient (3.86 points out of 7).  This is evidence of significant problems with matching the acquired skills and competences to economic needs. Thus, according to the World Bank survey Skills for Modern Ukraine, the most lacking were the practical skills (reported by 72% of the surveyed experts), socio-emotional skills (almost 58%), up-to-date knowledge (56%), and self-discipline (almost 42%).  The survey also defines that the mismatch of the skills is not the biggest barrier for companies operation. Nevertheless, it limits their efficiency and productivity.
Partially, it can be explained by the weak collabouration between the labour market and educational system. In particular, there is insufficient participation of employers in the development of educational standards, preparation of curricula, organisation of employment training for students and teachers of educational institutions at the companies, undetermined mechanism of cooperation in the field of public-private partnership (PPP). Other factors aggravating the problem include insufficient digitalization of the VET sector; low rate of participation in VET (80% of youth are oriented at acquiring HE) ; low relevance of the content of education and teaching methodology to the needs of a modern labour market and personality. Also, it is currently difficult to engage professionals having practical experience in the industry to teach at VET institutions for remuneration matching their qualification. There are many other reasons for the mismatch. For instance, there are sectors where salaries are law, and even if skills are available, people are not interested to work due to salary issue.
Also, in the employers’ opinion, the problem lies in deficiencies of existing labour legislation. Despite the fact that in the majority of cases there is no barriers for VET graduates to employment and certain positions, these limits may exist in particular sectors of the economy. For instance, according to the current requirements of qualification improvement established by the metal and mining sector, a grade 1 worker would be able to obtain grade 4 at least after 2.5 years of working experience, while characteristics of modern equipment in the metal and mining sector require that the newly-hired workers already had at least grade 3. At the same time, the 1st grade is prescribed in qualification requirements of a small amount of professions (occupations). Despite the fact that professions are included into the Classifier by proposals of the employers, the VET slowly re-orient to the up-to-date trends on the labour market . 
It is also important to introduce in the legislation a clear procedure for recognising full and partial qualifications (currently, only occupations can be recognized) and validation of non-formal learning.
At the same time, the situation in CVET looks much better. According to the Analysis of Labour Market Needs, Challenges and Possibilities in the Eastern Ukraine study (November 2018 – May 2019), carried out by the Institute of Professional Qualifications as a part of the GIZ project up to 93% of the surveyed employers from six Eastern regions of Ukraine are satisfied with the list of professional competences of adult VET graduates as regards to 6 occupations (chosen for the research) . 
Impact of VET on the problem: As it has been mentioned in building block А.2.3, the VET system includes 11 VET centres of SES. SES VET centres involve Advisory Committees comprising of regional employers and Advisory Councils for occupations from various industries. The role of these bodies is to update the outdated content of training and implement modern technologies. Training programs and curricula for 88 occupations are developed in SES VET centres in line with the requirements of qualification profiles/occupational standards. These programs and curricula are approved by Employers’ Councils established at each SES VET centre. To bring VET as close as possible to the requirements of modern industry, SES VET centres implement dual training practices (with a proportion of 30% (40%) of theory and 70% (60%) of practical training). This approach is aimed at solving the problem of mismatch between the skills of job seekers and the needs of the labour market. It also helps to increase the responsibility of employers for the quality of workforce training. Similar developments exist in VETIs under MoES of Ukraine. In general, a new model of practice-oriented training of skilled worker training is being formed in Ukraine based on the principles of social partnership. Existing policy measures that could help to solve this problem are described in clauses building blocks B.1.5, B.1.6. and B.1.7 (as to ensure consistency of skills and labour market policies), and D.1.3 and D.1.4 (as to the improvement of teaching methods at VETIs and improvement of the educational environment).
Overall, to solve the problem different policies should be used: changing structure of VET governance, improving training programmes and curricula, developing efficient monitoring system as to labour market situation and training programmes, amending labour laws etc.
 

External labour and student migration. According to one of the rankings included in the Global Economy Watch analytical review by PricewaterhouseCoopers (PwC), Ukraine is expected to have the fastest-shrinking workforce in 2019.  Thus, over a third of Ukrainian enterprises experience workforce shortage caused by labour migration.  Preservation of workforce capacity becomes an issue of the national economic security. Labour migration results in the following negative consequences: skills mismatch and shortage of workforce, especially in vocational professions, loss of tax revenue and social contributions necessary to support the state financially. According to the Pension Fund of Ukraine, 10 employed Ukrainians are accounted for 11 pensioners,  while the unemployment rate in 2018 (under ILO methodology) stood at 1.6 m people.  
Labour and student migration is growing in Ukraine. This is because of development of international cooperation and deeper economic ties with EU (the visa-free regime with the EU countries, simplification of registration procedures with "blue cards" in Vishegrad Group countries), more affordable education abroad (mainly in EU countries borders with Ukraine). According to SSSU labour migration survey between 2015 and 2017, near 4.5% (1.3 m) of 15-70 year-olds worked abroad, that is 10.3% more than in previous survey (between 2010 –2012) . According to other estimates – around 3.0 m people  . The reason for labour migration for 84% of people is low wages. 
The consequence of such emigration flows is a certain trend to “brain drain” from Ukraine. According to SES in 2018 half of labour migrants had full HE and one third – VET  . When they went abroad 29% of them had positions of directors, specialists, professional workers; 26% – were qualified workers, 37% – low qualified workers. At the same time the possibility of labour migrants’ employment on received specialty abroad is rather limited. For instance, only 26.8% of labour migrants had jobs abroad matched to their specialty, while 36.1% had jobs which required no qualification, and 29.5% had jobs that mismatched their specialty . It may lead not only to depletion of qualified workforce, but also to gradual deskilling of workers motivated to return to Ukraine.
One more important problem is the educational migration of young Ukraine’s population to EU countries (most to Poland), USA, Canada, and Australia (see also p. A.3.1). The number of students studying abroad has increased by 16% in 2016/2017, as compared to 2015/2016 (from 66.7 thousand to 77.4 thousand) . The growing educational migration is driven not only by desire to get high-quality education, but is also viewed as a potential opportunity for further employment and living abroad. According to the ‘Rating’ estimates, the most important reasons for emigration among those who would like to go abroad for permanent residence were the following: "In the hope of obtaining better living conditions" (64% of cases), and ‘The desire to provide a better future for children’ (34% of cases) .
Analysis of migration moods of young people of Ukraine for past years tells about relatively high, but stable level of intentions to try to go abroad especially to earn money. Thus, 53% of young people aged under 30 would agree to leave Ukraine if they had such opportunity, at the same time the average figure for all age groups accounted 32% . This presents an extra risk for labour market for short- and medium-term.
Summing up, external factors of labour migration: attractive and spacious labour market in developed countries, with average level of wages higher than Ukrainian. Internal factors: mismatched demand for workforce and low wages in the country. Negative consequences: threats of human capital depletion because of qualified workforce outflow from the country, poor social and legal protection of labour migrants, weak insurance (pension) policies, less possibilities for economic growth of Ukraine. Positive consequences: employment of unemployed, preserving or training labour skills, increase in consuming capacity on the domestic market and income from abroad due to the earnings of labour migrants . According to the NBU, in 2018 transfers to Ukraine from labour migrants amounted to USD 11.1 bn or 8.5% of GDP (in 2017- USD 9.3 bn or 8.2% of GDP; in 2016 - USD 7.5 bn or 8.1% of GDP; in 2015 - USD 7 bn or 7.6% of GDP respectively) . However, part of these transfers comes from IT sector specialists who physically stays in Ukraine and receive their income working for foreign companies.
Labour migration also increases competition between local employers for qualified workers . As the result, the risk to lose qualified workers due to migration flows made local export-oriented industry employers gradually increase wages. In particular, in the 4th quarter of 2018 wages of a steelmaker in Ukraine amounted to UAH 26.5 thousand compared to UAH 18.5 thousand (in hryvnia equivalent) in Poland . 
Internal migration (IDP). Since the previous round of TRP the situation with IDP employment has remained almost unchanged. Share of employed IDPs in December, 2018 was 44% (compared with 41% in March, 2017).  Around 67% of IDPs said that their current work matches their qualification. The decrease of IDPs working in industrial sector is observed. It is explained by difference in industry structure in Donetsk and Luhansk regions compared to recipient regions. As the metallurgy and coal-mining industries prevail in Donetsk many IDPs cannot find the work according to their profiles in other parts of Ukraine where such vacancies are not required. At the same time the issue of employment of IDP in host regions is still one of the most urgent . 90% of IDPs who were job-seekers told that they faced with difficulties. The most frequent problem was lack of vacancies (77%) and low wages in vacancies offered (62%). 
IDP mobility is still not very high . 69% of IDPs told that they had stayed at current place of residence for about three years. Almost 34% of respondents expressed the intention not to return even when the conflict would end. The share of respondents intended to return to their permanent residence after the end of the conflict accounted for only 28%. Excessive concentration of professionals and specialists with the same skills in one city or region causes over-saturation and disproportions of certain labour markets.
Education structure of IDPs is characterised by larger share of households’ heads who have HE (54%); near 27% of them have VET, 18% – complete and basic secondary education. This is the evidence of IDPs’ sufficiently high education potential, their ability to acquire modern skills and competences for assuring employment opportunities. The most significant part of IDPs is a part of working age population of Lviv, Chernivtsi, Ivano-Frankivsk, Odesa, Vinnytsia regions and city of Kyiv (varies from 51.0% to 55.0%) . It respectively increased supply of workforce in these regions. 
Regardless the package of policies implemented in past years , the mentioned problems remain and further state policies to minimize negative impact of external and internal migration on the labour market are needed, unshadowing of labour migration process, promoting youth employment and raising competition advantages of Ukrainian labour market . 

VET digitalisation is the critical present requirement to meet current and future challenges of the society: 
a) development of the following digital technologies: mobile, cloud, biometric verification, blockchain, virtual, augmented reality, additive (3D printing), identification, artificial intelligence; 
b) development of the IT sector including active employment of Ukrainians into this sector on freelance basis ; 
c) growing popularity of IT sector employment among young Ukrainians ; 
d) searching new forms and ways of learning to obtain skills for living and working in Industry 4.0  conditions. 
Digital transformation affects mismatch of professional skills and thus raises expectations from VET. First and foremost it is connected with the fact that today the issues of digitising domestic VET are closely intermingled with the issues of the society digitalisation in general and sectors of economy in particular, namely:
    developing digital competences of all active population of Ukraine;
    implementing a concept of digital workplace;
     real sector of economy digitalisation;
    developing substantial national policy of digital education including VET;
    agriculture sector digitalisation that is a need in using geoformation systems, on-board computers, smart equipment; implementing innovative ways of plants and soils treatment, setting fertilizers and chemical meliorants, using means of plant protection, operating with soil scanners, vertical greenhouses and drones, helicopter sprayers etc. ;
    worsening of ranking positions (2018 – 46th position out of 140 in Skills and 74th  – in Lifelong learning) ;
    updating content of existing curricula of VET in the prospective of digital skills development; 
    developing self-education, media literacy and e-learning skills for lifelong advanced training .
In the course of industrial development of Ukraine there is a problem of skilled workforce deficit (this is the second out of eight problems in domestic industry development) . This problem is critically important in the prospective of Industry 4.0 development. Under conditions of digital transformation along with general problem of skilled workforce lack the demand for technical employees, technological equipment and machinery operators grows significantly .
In VET sector there is a need to create relevant information and education environment of VET schools. This defines a need of updating the content of education (revising text-books and teaching sets), conditions and resources (financial and human) and its implementing, monitoring and control etc. In particular, low level of digital-skills of teachers and management is a serious barrier for the processes of VET digitalisation. So advancing the level of digital competence and digital culture of teaching staff is very crucial.
Opportunities of VET digitalisation are reflected in the following findings: 
-    designing information and educational environment of VET schools based on SMART-sets; developing and implementing SMART-sets for training of skilled workers for agriculture, construction, heavy engineering sectors and corresponding teaching and methodological guidance of their development; implementation appropriate methodology of teaching VET students ; 
-    elaborating guidelines for distance courses design for VET, guidelines for self-study organisation for future skilled workers using distance learning (DL); guidelines for monitoring and control of academic progress of skilled workers using distance learning in VET .

A good example of meeting present challenges in the context of promoting digitalisation in the education sector is the creation and operation of Educational Centres (EC) “Crimea is Ukraine” and “Donbas is Ukraine” in 2016   . Other examples are DL technologies of Zolotov Vocational School  in Luhansk Region and ready “e-lessons” of Regional Centre of Vocational Education of Construction Technologies in Kharkiv Region . 

The examples of advancing digital competence and culture of teaching staff are the projects of the Academy of Innovative Development and Education (IECM) offering wide array of on-line courses and trainings for teachers , and also the distance learning courses for teachers to advance their digital competence designed by Scientific and Methodology Centre of Vocational Education in Zaporizhzhia Region .
Prospective of VET digitalisation in the context of building digital society and developing digital economy of Ukraine is: PPP strengthening; implementing dual education; organisation of distance and blended learning; introducing inclusive learning; using competence-based approach; creation of scientific and educational on-line platforms; building in VET schools individual learning trajectories for “digital workplaces” employment; implementing new forms and methods of advancing digital competence of VET teaching staff and management (digital workshops, barCamps, virtual labs).

Implemented policies: To minimize negative impact of issues described in preceding questions, the number of policies has been implemented since the last round of TRP, which include: (1) macroeconomic policies, aimed at creating new jobs, (2) active labour market policies, (3) migration policies and (4) policies directly or indirectly linked with the system of education or VET in particular. 
The key strategic documents on defining mentioned directions: Medium-Term Priority Action Plan of the Government until 2020 , Strategy of the State Migration Policy of Ukraine till 2025 , Law of Ukraine “On amending certain laws of Ukraine to increase social security of Internally Displaced Persons” , the national Poverty Reduction Strategy   and the Action plan of its implementation , MoSP of Ukraine Strategic Action Plan for 2019 and two fiscal periods after the planning period (2020-2021) , “Pact for Youth — 2020” (partnership between the business and education sector, to provide training and first job opportunities for youth, coaching support in building career , Action plan for social reintegration of labour migrants and their families ,  2018–20 Roadmap for developing society and the digital economy in Ukraine , Law of Ukraine “On education” based on the concept of the New Ukrainian School , Law of Ukraine “On Pre-tertiary Vocational Education” , Concept of State Policy in the Field of Professional (Vocational) Education “Modern Professional (Vocational) Education" until 2027 , Concept of dual education which is aimed at integration of education and work in VET and HE  etc. As we can see only a part of documents is directly related to education and VET in particular, in this connection comprehensive approach to solve issues described in responses mentioned above should be used.
One of the important steps for macroeconomic block of policies was the creation of “Export promotion office in Ukraine”  in 2018 and adopting the draft of the Law of Ukraine “On common transit regime” (2019) aimed at increasing high value-added technological export requiring skilled workforce. Strengthened investment component of economic growth stimulated the creation of jobs in the processing industry. Detailed policies on the labour market are considered in B.1.6. The approval of Action plan for 2018-2020 to implement the Strategy of the State Migration Policy of Ukraine until 2025 was the key document for developing and implementing state migration policy aimed at meeting the economic needs of workforce . First of all it concerns automation of processes of unified migration information and analytical system, which is necessary for the proper governance of migratory processes, improvement of organisation and collection procedure of migration data; employment promotion of labour migrants after they return to Ukraine which meets labour market demands.
Policies directly or indirectly linked to VET system: Apart from strategic documents on education mentioned above the Procedures for Development and Adoption of Professional Standards (2017)  and Methods Guides for Development of Professional Standards (2018)  have been elaborated and approved to provide compliance of vocational skills with modern labour market demands. Also to improve educational process quality and to increase its practical application in compliance with MoES order “On elaborating the standards of vocational (technical – vocational) education using competence-based approach” in 2018“ , the list of professions was approved to develop VET standards. The strengthening of practice-based content of education and training will be also supported by introducing elements of dual training into training of skilled workers which is directed at VET content update . The approved the CMU Order “On approval Action plan on implementing the Concept of state system of career guidance of the population”  is aimed at balancing of demand and supply on the labour market. It improves quality of training the skilled personnel, reduces costs for vocational choice. 
Planned policies connected with VET system: To increase efficiency of VET system performance in order to solve issues mentioned above the new law on VET should be adopted and the Concept of implementing state policy of VET system (adopted in June 2019) should be implemented. These documents are aimed at systemic reform of all VET components: content; system of management; structure and schools network; multichannel financing system of VET; conducting education and training; provision of new legal and regulatory basis etc. The activity of VET regional councils requires improvement as well to identify trends of skilled personnel training opportunities based on regional demand and regional peculiarities taking into account interests of all stakeholders. The important thing is developing and implementing substantial national policy of digital education (including VET in particular) in compliance with 2018–20 Roadmap for developing society and the digital economy in Ukraine.

  Current policies review: According to the Laws of Ukraine "On Employment of the Population” and “On compulsory state social insurance against unemployment” Ukraine has a wide range of active labour market policies, in particular:
-    vocational training or retraining, further training in VET, HEI, SES training facilities, in companies (organisations); 
-    career guidance (see. C.3.4); 
-    employment incentivising including social works and other temporary jobs;
-    providing compensations for employers if they employ (by opening new working positions) citizens which are uncompetitive on the labour market ;
-    providing vouchers for training (for priority professions/specialties required on the market) ;
-    offering unemployed to open their business, in particular by opening in EC of SES centres of business development and business incubators, lump-sum benefit (one-time financial assistance) to open own business etc ;
-    implementing policies to incentivise  employment of IDPs, ATO participants, disabled persons and vulnerable groups of population etc;
-    various information and consulting services to facilitate employment; jobseeker’s Internet accounts; employment fairs, career days, career guidance days, open house days in EC of SES etc.
Since the last round of TRP SES has introduced new social e-services for citizens and employers in particular, “Internet account (cabinet) for a jobseeker (unemployed)” and “Internet account (cabinet) for an employer”. They are used to reduce time and raise comfort level for jobseekers to interact with employers and SES . The active implementing of profiling of jobseekers started to minimize risks of long-term unemployment and also to provide social support based on the case-management. The e-services have become popular (e-queues, video-resumes and on-line interviews with employers) . Besides, in September, 2018 the institution of career counsellor was introduced, which allows to provide individual approach for every client of SES and raise quality of career planning service . Also in 2018 in order to provide distance services of career guidance the IT platform “Career guidance and career development” was introduced. All these policies are aimed at increasing efficiency of labour market institutions and raising activity level and employability of population, as well as reducing the level of informal employment.
Coordination of policies on the labour market with system of education and/or VET:  To promote employment EC organises vocational trainings for unemployed on employer’s demand as well as business skills training of unemployed on their request. It can be implemented in HE institutions, VET schools, training facilities of SES, in the companies (organisations) or at employers. Jobseekers without profession can be trained a relevant profession to the labour market. If a profession (speciality) is not relevant to labour market needs, SES gives the jobseeker a possibility to be retrained or have further training (employment training , where the jobseeker wants to work), raise qualification category, complete the special course to obtain a new competence. The unemployed who wish to start their own business get skills how to do it. If an employer orders vocational training for jobseeker at educational institution, at VET school in particular and is committed to employ them, EC makes an agreement with such employer. 
In 2018 according to SES 147.3 thousand jobseekers (unemployed) had vocational training (including 47.6 thousand - at SES educational institutions). 263 educational institutions and 27.6 thousand enterprises (organisations) were involved into cooperation. 148 occupations were offered for training and retraining of jobseekers. Employment rate for those who finished training in 2018 reached 96.1% that is 0.5% more than in 2017. Since the last round of the TRP education institutions have used new forms of education to provide more quality training. In 2018 in VET centres of SES over 2.9 thousand jobseekers had vocational training with distance technology elements. VET uses elements of dual training by connecting training of unemployed at educational institutions with their work-based training. During 2018 according to cooperation agreements with VET centres of SES and employers 1.7 thousand people had training with dual-training elements. 
Planned activities: Plans for implementing active labour market policies are reflected in Action plan for 2019 of implementing Poverty Reduction Strategy , Strategic Action Plan of MoSP of Ukraine for 2019 fiscal year and two fiscal years following the planned (2020-2021) , Action plans of MoSP for 2019  etc. In particular they foresee adoption of the Law of Ukraine “On activation of job seeking process for unemployed and those who seek job” , CMU Order “Basic directions of state policy of population employment for medium-term prospective”, redirection of SES work for individual services of employment and provision of customer-oriented approach in line with international requirements. Planned activities also include change of approaches for training of jobseekers and selection of educational institutions where they will have VET, implementing e-services, provision of well-functional institution of career counsellor and full-scale operation of National register of vacancies. Introducing and implementing initiative “Pact for Youth — 2020” (business and education sector partnership, to provide internship and first job opportunities for youth, mentors’ support in career building) . At the same time more changes are needed to intensify population participation on labour market and to consolidate the use of innovative forms of employment. In particular, it is expected to amend Labour Code of Ukraine, Law On employment with definitions of terms “outsourcing”, “transit workplace”, “profiling”.
 

Implemented policies. There is no centralized system for forecasting of demand for professional skills in the labour market in Ukraine. 
The Law of Ukraine “On the Formation and Placement of the State Order for the Training of Specialists, Scientific, Scientific and Pedagogical, and Workers' Personnel, Continuous Training and Re-training of Personnel” (2014) regulates the peculiarities of relationship arising in connection with the formation and placement of  public order . Besides, the Law envisages mandatory preparation of Medium-term forecast of demand for specialists and working staff in the labour market. At present (and up to 2021), MoEDT calculates the medium-term needs of the labour market in terms of specialists and labour resources by occupational groups on the basis of the methodology approved by the Decree of MoEDT of Ukraine № 305 as of March 26, 2013. The methodology is based on the calculation of the number of people employed by the type of economic activity. This is necessary in order to meet the additional need in the workforce by occupations (according to the classifier of professions) for certain types of economic activities. The methodology compares the obtained values of the forecasted additional demand with the proposals of central and local executive authorities and social partners. 
In addition to that, the Institute for Educational Analytics (IEA) of the MoES  is engaged in research and elaboration of a methodology to determine the scope and areas of training of workers in accordance with the needs of regional labour markets.
Also, since the last round of TRP, as part of decentralisation of the VET sector, the Methodological recommendations for the formation and placement of a regional order for the training of specialists and workers (2016)  were approved. These recommendations provide a single approach to the formation and placement of a regional order for the training of specialists and workforce. Besides, they determine the modalities of interaction of local executive authorities, bodies of local self-governance, and the civil society organisations.
However, there is a need to improve methodological approaches to arrange systematic accumulation and analysis of information related to regional and national labour markets, while identifying the correlation between the professions on demand in the respective labour markets and the capacity of the VETIs network to train the needed professions.   The identified and systematized data on the state of certain markets will enable short-term and mid-term forecasts (up to 5 years) defining the forecasted number of the workforce by occupations (in line with the classifier of occupations). Such forecasts should take in account regional economic development programmes (strategies) and provide an ongoing feedback between the respective bodies of the regions and employers.
Professional standards that establish requirements for the competencies of employees that serve as the basis for the formation of occupational qualifications . The Procedure to elaborate occupational standards   and the Methodology for their elaboration   today form the basis for an effective way of identification of occupational skills with the participation of employers   . As of May 01, 2019, the Register has established 9 professional standards  while 117 applications have been registered.
Regardless of the implemented policies, there is a sharp need in the further development of forecasting of professional skills in order to increase the relevance of educational services, and to adapt the training programs of VET system to the needs of the labour market.
System of confirmation of outcomes informal learning and recognition of qualifications obtained in other countries. In Ukraine, a mechanism for confirming the results of non-formal vocational training for respective occupations has been introduced . This mechanism is the same for all categories of individuals, including migrants and refugees. Ukrainian citizens, foreigners and individuals without citizenship permanently residing in Ukraine and having refugee status, those having been granted an asylum in Ukraine, and those recognized as requiring additional protection, who have been granted a temporary asylum, as well as those who received a permission for immigration to Ukraine, can prove their qualifications. Confirmation of non-formal learning is performed by the subjects of confirmation (enterprises, institutions, organisations irrespective of ownership forms). It was established a consultative and advisory body under the MoSP, the Interagency Working Group on compliance of enterprises, institutions, and organisations with the established requirements, to confirm outcomes of non-formal professional education of persons within working professions. It is composed of representatives of the MoSP, the MoES, the State Labour Service and other central bodies of executive power and social partners. Key task of the Working Group is to consider submitted proposals to the List of Subjects of Confirmation, and justifications of compliance of enterprises, institutions, and organisations with the Requirements to Subjects of Confirmation.
Subjects of confirmation authorised to do the assessment of outcomes of nonformal professional education within working professions, shall create a commission for confirmation of qualifications, which consists of specialists in the relevant sector of industry or area of services that have a work experience of at least 5 years in the corresponding occupation (specialization) and the corresponding level of qualification. Qualification confirmation is based on the results of determination of the level of occupational knowledge, abilities and skills of an individual with the application of the means of measurement and evaluation criteria, which are approved by the subject of confirmation in accordance with the requirements of qualification characteristics of occupations, occupational standards with the consent of the MoSP, the MoES and social partners.
Regardless of the drafted legal framework, the approved lists of working professions (occupations) used to confirm the outcomes of non-formal professional education of persons within working professions and the Subjects of confirmation of the outcomes of non-formal professional education of persons within working professions. 
In 2015, a separate Procedure for recognition of documents on secondary, secondary vocational, vocational education issued by educational institutions of other states (countries) was adopted in Ukraine . This was done in order to improve the procedure to recognize and to establish the equivalence of educational documents issued by educational institutions of other states (countries) in Ukraine (see paragraph B.1.8).
Planned policies. The establishment of mechanisms for the recognition of non-formal and informal education is delegated to the newly established National Agency for Qualifications (NAQ) . The NAQ, after the introduction of its full functioning, will have the mandate to ensure the forecasting of labour market needs in qualifications, and to develop criteria and procedures in order to recognize occupational qualifications obtained in foreign countries, etc. . It is important to consistently allocate the powers between the newly established NAQ and the MoSP which functions cover provision for efficiency of performance of the system of confirmation of outcomes of non-formal professional education within working professions. Development of professional standards shall be stimulated, as well as the respective update of VET content. It shall be facilitated by the EU4Skills project which objective is to reform the VET sector in Ukraine.

In particular, in accordance with the Agreement between Ukraine and the European Commission on funding of the “EU4Skills” project, signed on December 17, 2018 , the foreseen investments in the reform of the VET system shall make up 58 m euro. A certain portion of these funds will be directed to update the content of VET programs, in particular, to the elaboration of occupational and educational standards.
 

At present recognition of foreign diplomas and degrees (convalidation) is performed individually. It aims at protecting rights of citizens who were educated in other countries to continue education or work in Ukraine.
Recognition of foreign diploma and degrees (convalidation) in Ukraine is conducted in line with the Convention on the Recognition of Qualifications concerning HE in the European Region, which was ratified by the corresponding Law of Ukraine No 1273-XIV on December 3, 1999 and by the recommendations of this Convention. As the result of recognition the owner of foreign documents certifying degrees gets the certificate validating the documents issued by an educational institution of other country. It gives the owner the right to continue education or work based on acquired specialty in Ukrainian HEI or institutions in any part of Ukraine. Such certificate is issued on the basis of decision of authority – HEI or MoES of Ukraine. The procedure of convalidation includes: authenticity verification of documents, confirmation of educational institution status and/or its curriculum, qualification assessment or period of study and validating equivalence to academic and/or vocational degree in Ukraine. Recognition procedure in Ukraine conducted by all competent authorities is set out in the MoES Order No 504 as of May 5, 2015 . This Order stipulates recognition procedures of degrees awarded in foreign HEI and also documents on secondary vocational education and VET.
The important principle of Lisbon Convention is to ensure rights of refugees and persons in refugee-like situations for recognition of their qualification even if it is impossible to confirm it with documents certifying qualification awarded on the territory of one of the Parties. Procedures of foreign documents on education recognition were entered into force by MoES Order No 504 as of May, 2015. They set conditions for all authorities to apply procedure of qualification recognition as to refugees and persons who seek additional or temporary protection. The procedure of recognition can be provided without presenting full package of necessary documents. In such case the ground to commence recognition procedure is refugee’s IDs, ID of a person who seeks additional protection, ID of person who has temporary protection and corresponding application to perform the procedure. To perform the recognition procedure refugees and persons who seek additional or temporary protection shall present their documents on education, including those not outlined in the list of documents, such as: copies of documents on education or periods of education, student ID cards, academic records, courses description, documents on non-formal and non-official education or other documents that can confirm the fact of training and/or obtaining qualification; as well as available documents confirming work experience such as: labour record certificate, labour contract, employment record book, certificates from work or other documents which can confirm the qualification. In case there is a lack of information to recognise documents on education of refugees and persons who seek additional and temporary protection exams, tests or interviews specially designed by authority can be used.
 

VET contributes to job creation in Ukraine, for instance through self-employment of VET graduates. The official data on the share of self-employed VET graduates is not available. At the same time SSSU issues the report (Form No1 on VET) where data on VET graduates employment are presented by economic sectors . Sectors, which are more typical of self-employment include commerce and foodservice, household services and partially construction. According to the estimates made on the basis of this report and administrative data for 2017/18 academic year, share of self-employed VET graduates accounted for IVET – 34.9-41.1%, for CVET – 15.2-19.3%. Overall for VET sector is near 29.8%-35.4%.

The development of entrepreneurial competency with learners is a pertinent issue in Ukraine. In 2017–2018, The Institute of VET of the NAPS of Ukraine ran a survey over 1000 learners from VET schools in the cities of Vinnytsya and Khmelnytskyi and in rural areas of Volyn region. It covered learners of І-ІІІ years of studies. A typical finding was the reduced numbers of learners, with every year, who plan to be engaged in entrepreneurial activities. The trend is especially clearly shown with learners in rural VET schools where the number of learners went down from 34.1% in the first year to 9.7% in the third year, i. e. 3.5 times lower (for urban population, it was from 33.8% to 25.8%, respectively). The survey also showed that over 60% of respondents did not have any clear understanding of entrepreneurial activities, while most respondents (about 70%) could not list any personal characteristics relevant for entrepreneurial activities. It must be noted that the situation was also typical in 2018 , the same as ten years ago , and 25 years ago .
Data on self-employment of VET graduates: On a national scale, the general system for monitoring of self-employment of VET graduates is not available. The data is not available, either, in SME related statistics . Data on self-employment of VET graduates is occasionally traced on a regional level by education authorities, SES and SSSU. 
Activities implemented to spread and develop entrepreneurship. Since the last round of TRP, there has been a significant progress to include into the Law of Ukraine “On Education” one of the key competencies of GSE – entrepreneurship and financial literacy. Upon the whole, it complies with the Framework Program of Updated Key Competencies for Life-Long Learning (EUС, 2018) . Before that, Initiative and Entrepreneurship were identified as a key competence in a Concept for "New Ukrainian School" . The next step was to include entrepreneurship and financial literacy into the list of key competences of VET. It is provided in the Concept of State Policy in the Field of Professional (Vocational) Education “Modern Professional (Vocational) Education" until 2027 (2019) . Currently, mastering basics of entrepreneurship is a general professional competence stated in VET standards and included into typical curriculum of VET . Moreover, “Basic Principles of Market Economy and Entrepreneurship” are included into general competences in typical curricula for training of junior specialist on the grounds of basic GSE .
Under the auspices of the MoES and IECM under the project of USAID FINREP –ІІ (“Development of Financial Sector”) in 2018–2019 the training process gets a new elective course on “Financial Literacy” . Another project that facilitates the development of entrepreneurship in VET started in 2018 with support of ILO “Inclusive Labour Market for New Jobs in Ukraine”, such as the implementation of the program of global entrepreneurial activities of ILO "Start and Improve Your Business " . Ministry of Youth and Sports, Centre "CSR Development," and UNFPA jointly implemented a program “Skills lab: Successful Career.”  Under the program, all-Ukrainian training sessions were conducted for the development and improvement of skills required for starting one’s own business. Activities of the newly created Small and Medium Business Development Office (SMEDO) established in the late 2018 under the project “EU4Business” is also aimed at drafting of targeted programs for SME support and expansion of entrepreneurial capacity of young people . 
On the basis of VET schools, in order to train experts for entrepreneurial activities, training firms (TFs) are established. The TF is a form of practical training based on activities of a provisional (virtual) commercial firm (Association “Ukrainian National Centre for Training Firms “Central” . In particular, on the premises of the state educational institution "Higher Vocational School No 11 of Khmelnytskyi City” a business centre for learning was established . In addition, due to cooperation of the Institute for VET at the NAPS of Ukraine and the Free Enterprise and Entrepreneurship Foundation, Poland, under the Erasmus+ program, it was designed, organized, and held an international exchange project for students "Joker — my business, my identity" (Joker — moja firma, moje ja)» . The project intended to develop entrepreneurial competency, to drill the skills to transform a business idea into a business project. The project engaged learners from VET schools selected on competitive basis. Upon the studies in Warsaw, participants designed and presented projects that had either commercial or social focus. 
SES fosters registered unemployed persons to engage in entrepreneurial activities if they wish to start their businesses (see Sections B.1.6 and C.3.3) . In 2018, employment centres held 488 activities for 16,800 young adult learners . The unemployed persons who decided to start their businesses can get support of the SES and learn basics of entrepreneurship in educational establishments, VET schools among them.
Planned policies (monitoring of self-employment): The Memorandum on Cooperation signed on June, 3, 2019, between the MoES, MoSP, MoYS, and the SES stipulates the creation of a monitoring system for HE and VET graduates, including also those who are self-employed . The system would enable tracing the success of further career development of graduates (as related to the graduated institution), the data on education quality and opportunities the education institutions open up, in order to adjust educational policy for the MoES . The process is complicated by the need to merge (unite) the Unified State E-Data Basis on Education and the Register for Insured Persons administered by the Pension Fund .
At the same time, the question on how the plans on creation of a such monitoring system will be implemented remains open and it is currently being discussed in the MoES. Relevant amendments to the legislation are needed at the level of the Verkhovna Rada and the CMU on the use of databases on HE and VET graduates, which are at the disposal of different institutions. An action plan is currently being developed.
A major challenge for the development of entrepreneurship in Ukraine can be also referred to a post-Soviet mentality still persisting, when entrepreneurship is taken not as a virtue. On the other hand, there is insufficient understanding of the phenomenon of social responsibility (many businesspersons operate in a shadow sector). Other obstacles for SME development, pursuant to the Quarterly Monitoring of Obstacles for SME Development in the first quarter of 2018 (USAID program "Leadership in Economic Governance") included a low demand (69.7%), financial issues (48.6%), high tax burden (33.1%), unfavourable political situation (23.2%), lack of qualified workforce (13.4%), high regulatory pressure (12.7%), and corruption (12.0%) . Another problem identified in the OECD survey (Index of Economic Policy on SME) is the lack of interaction between national authorities and state support of SMEs . 
 

Key problem with access and participation in VET is low attractiveness and prestige of VET. This problem is mostly a feature of VET compared to other sectors of education. For several decades the status value of VET has gradually fallen due to:
-    absence of necessary investments into VET modernisation (see D.1.2) ;
-    mismatch of demand and supply, quality of training and market requirements for professional qualifications (see B.1.2); 
-    low accessibility level of HE ;
-    poor system of career guidance and career counselling of learners, young people and adults (see C.3.4).
Crisis in VET was aggravated by global problems and modern challenges: worsening of the demographic situation both in Ukraine and abroad, increase in labour migration, too high expectations of young people for job attractiveness and access to foreign education (see A.3.1 and A.3.2). Besides, we should consider unfinished reform of the education governance system on the local level (regional and local budgets), low responsibility of local self-government for decisions made, for implementation of state policy in education sector in particular (see E.1.1 and E.1.2).
The interrelated problems are:
-    weak motivation of population to obtain vocational qualifications;
-    increase of young people share willing to obtain HE to 80% ; 
-    deficit of skilled workforce on the labour market;
-    mismatch of content, duration of VET to obtain vocational qualification and its quality;
-    mismatch between material and technical provision of VETIs and modern production technologies;
-    lack of monitoring of labour market needs in vocational qualifications;
-    too formalised VET governance system;
-    lowering (downgrading) of VET teaching staff social status.
Among the other problems there are preserving institutions with poor training quality in the network, especially understaffed VETIs. In the field of adult education the key problem is the absence of integral education system of adults which can help to implement lifelong learning concept and legal and regulatory support of adults’ education.
These problems are indicated in the  Concept of State Policy in the Field of Professional (Vocational) Education “Modern Professional (Vocational) Education” until 2027 approved by CMU on June 12, 2019. 
As the result, since the last TRP round the overall trend to reduce the number of people receiving (getting) VET both among youth and adults has been preserved. According to MoES of Ukraine (see A.2.3 and Table 2), the number of IVET and CVET students reduced from 284.8 thousand to 253.9 thousand in 2016-2018; entrance – from 157.5 thousand to 136.1 thousand; graduation – from 152.4 thousand to 133.1 thousand. Reduction in total numbers of VET students and low salaries of VET teachers resulted in respective reduction of VET teaching staff (from 17.8 thousand to 14.8 thousand). There are currently more than 3 thousand open vacancies for pedagogical personnel (which is 9% of the staffing table).
 

Key vulnerable and marginalized groups of population which are eligible for IVET opportunities: 
-    People with special educational needs and people with disabilities ;
-    orphans and children deprived of parental care, children from families on welfare benefits(orphans and half-orphans, children from  low income families and needy families) ;
-    children of parents who suffered during the Revolution of Dignity, war veterans, people with war-related disabilities ; 
-    children with one parent died (gone missing) in Anti-Terrorist Operation zone;
-    children with one parent died at time of mass mobilisations of social movements or died as the result of injury, contused wound or maiming at time of mass mobilisations of social movements;
-    children who live in settlements on the line of contact;
-    children registered as IDPs, including children who study full-time in VET schools, – till the time of their graduation from school, but not longer than they are 23 year-old.

With regard for the lack of aт official definition of CVET in the laws of Ukraine, key vulnerable groups of population eligible for educational opportunities via retraining and professional advancement (according to CVET definition within the TP context) are identified along with IVET.
In particular, the following categories enjoy preferences when enrolled into VETIs:
-    persons granted with the right under the Law of Ukraine “On Raising the Prestige of Miners’ Work” 
-    persons granted with the right under the Law of Ukraine “On the Status of War Veterans, and the Guarantees of their Social Protection”
-    children of parents who died or became disabled in mining companies, when enrolling for mining specialities and professions, under the Presidential Decree dated May, 19, 1999 No. 524 “On State Welfare Benefits to Children in Training for Mining Specialities, and Whose Parents Died or Received Disability at Mining Companies” 
-    orphaned children and children deprived of parental care, as well as persons of the same group aged 18 to 23, under the Resolution of the CMU dated April, 05, 1994, No. 226 “On Improvement of Raising, Education, Social Protection and Material Support of orphan children and children devoid of parental care” 
-    children with disabilities and adults with disabilities with no contraindications within the chosen field (speciality), under Art. 22 of the Law of Ukraine “On Fundamentals of Social Protection of People with Disabilities in Ukraine” 
-    persons granted the right under the Law of Ukraine “On Status and Social Protection of Citizens Affected by Consequences of Chernobyl Disaster”  , including also citizens referred to category 3, - provided such citizens get positive scores at entrance exams;
-    children of servicemen of the Armed Forces of Ukraine, other military formations, law-enforcement staff who died on duty, for positions provided by public order. In that case, enrollees shall submit the respective document confirming their parent declared as such who died on duty, under the Presidential Decree dated February, 21, 2002,No. 157 “On Additional Measures to Enhance Care about Defenders of the Homeland, their legal and social status, and to Improve Military Patriotic Education of Young People”  

Legal, organisational, social principles and guarantees for state support for orphaned children and children deprived of parental care, young adults who were orphans or children deprived of parental care are set by the Law of Ukraine “On Ensuring Organisational and Legal Conditions for Social Protection of Orphans and Children Deprived of Parental Care.”  The state ensures full provision for orphans and children deprived of parental care, as well as for persons of this category. Persons from the category of orphans and children deprived of parental care who are doing their studies, in addition to full state provision, are also paid a scholarship 50% higher than a scholarship in the educational establishment, and the 100% of a salary accrued during WBL and work placement.
Besides, at present the state provides target support for suffered participants of the Revolution of Dignity, war veterans and children whose parents died during these events, IDPs (adults and children) and other categories of people to obtain IVET and CVET . It can be granted in the form of partial or full compensation for study at the expense of educational subvention from the state or local budgets; preferential long-term loans for education; social scholarship; free of charge text-books; free access to Internet, access to state and municipal databases of educational institutions; free of charge hostel accommodation; other benefits approved by the CMU . 
The Law “On Education” defines that the state and local self-government authorities should create the conditions to provide people with special educational needs with opportunities to obtain education on all levels on par with the others. The state trains vocational staff to work with people with special educational needs. The categories of people with special educational needs are specified in the regulatory acts of the Government.
To align with framework Law “On Education” in 2018 the Law “On Professional (Vocational) Education” was considerably amended and opportunities for people with special educational needs were extended.  At present it is legally defined that VET institutions can form inclusive groups to train people with special educational needs. Buildings, premises and rooms of VETIs should meet the requirements of accessibility for people with special educational needs in line with the National Construction Regulations and Standards. For people with special educational needs content timing and schedule of training process is defined by the education programmes and curricula of a VET institution which (if necessary) can be adjusted to the individual curricula according to individual development programme. People with special educational need are entitled to be trained on individual programme including individual development programme. 
The Government adopted Procedures for organisation of inclusive education in VETIs. The document defines organisational principles for inclusive education in such institutions regardless of the ownership form and affiliation, in order to exercise the rights of persons with special educational needs to receive the high quality vocational education and training, retraining, and professional advancement, with account for their needs and capacity (resolution of the CMU dated July, 10, 2019, No.636) . 
This correlates with general education system in the following: In 2014 the Law “On amending several laws of Ukraine on education to organise inclusive training” was adopted. This Law amended the Law “On general secondary education” according to which special educational needs in training and education of every child including children with special educational needs are taken into account according to the principles of inclusive education. Children with special educational needs who study in special and inclusive classes of GSE schools are provided with free of charge hot catering within all period of study. A teacher of secondary special school (boarding school) should have an assistant-teacher for inclusive classes.
People belonging to national minorities in Ukraine have a right to study in their mother tongue in pre-schools and primary schools. For VET learners and HE students there are a possibility to learn the mother tongue as a separate subject if it is requested by such learners. MoES also provides psychological assistance for learners registered as IDPs and free of charge education for everyone who was enrolled by the state order. 
In 2018 according to the SSSU 4 617 people with disabilities (1.8 % of total number of VET learners) entered VET; 10 539 orphans and children deprived of parental care (4.1%); 28 889 children with one parent (11.3%); 5 091- from disadvantaged families (2.0%), 12 286 - from needy families (4.8%). In 2017/18 academic year among VET graduates 79.2% of orphans and children deprived of parental care and 65.5% of people with disabilities were employed.  
 

Implemented policies. In Ukraine, VET is accessible to all citizens, except for those who have certain health and age restrictions, and also restrictions by the parameters of occupational capability determined by the CMU . VET is obtained by Ukrainian citizens in the state and municipal VETIs free of charge, at the expense of the state – within the professions of all-national status, which list is defined in the resolution of the CMU No.818 dated November 16, 2016 . At the expense of regional and/or city budgets – on conditions of the regional order (free of charge for learners).
Social policies to increase the accessibility of VET (in particular, in the form of targeted social programs) are foreseen only for the vulnerable and marginalised groups (see point C.1.4). At the same time, large-scale targeted programs that can be considered as preventive and proactive actions to increase the share of the young people with technical and occupational skills, have not yet been introduced in Ukraine. At the same time, career guidance activities are conducted in schools (see C.3.4). Actions to increase the accessibility of VET also include the use of distance learning technology, online courses and training, the creation and operation of the «Crimea-Ukraine» and «Donbass-Ukraine» educational centres (ECs), electronic libraries and electronic cabinets, etc. (see point B.1.4). A significant role in this area is played by training centres on the basis of VETIs.
In addition to that, in order to resolve the problems mentioned in paragraph C.1.1, starting from November 2018, the Directorate of Vocational Education of the MoES of Ukraine conducts a research of the VET applicants’ opinions on their motivation for obtaining VET in the form of an online questionnaire  . With the purpose to promote working professions, national and regional professional excellence competitions among students of vocational schools are being conducted, as well as a nationwide competition WorldSkills . Starting from 2014, Goethe-Institute in Ukraine, in co-operation with IVET, NAES of Ukraine, has been conducting contests for students of VET institutions who are studying German .
Planned policies. One of the main priorities according to the Concept for implementation of the state policy in the area of VET approved in June 2019, which should be implemented by 2027, is popularisation of VET among the citizens, as well as modernisation of the educational environment that provides innovation and access to education . 
 

The information on privileges and programs for supporting vulnerable groups of people, including ATO /OJF , is posted on the VET schools web sites. It can be found in the section "Entry Rules". In addition, the following information is provided during the Doors Open Day in VET schools  , as well as in the videos "How to get professional education". It is posted on the MoES website. The categories of persons provided with such assistance are listed in B.1.2.
The persons of a vulnerable group are given a preferential right to be enrolled in VET schools. For the duration of studies the State ensures their full subsistence and they are provided with the target financing of these expenses. The graduates are supported with public welfare payment, which is set by the CMU. The graduates are also guaranteed employed according to the acquired professions. The public targeted aid for combatants and their children has already been provided in the form of: (1) full or partial compensation for study at the expense of educational subvention from the state or local budgets; (2) preferential long-term loans for education; (3) social scholarships; (4) free of charge textbooks provision; (5) free of charge access to the Internet, database systems in state and communal education institutions; (6) complimentary accommodation in the dormitories .
In recent years, most of the activities have been focused on IDPs. At present they mostly make use of social benefits for education, medical care, social assistance, pensions. They are provided with these benefits even if they do not have a residence registration at their new place of stay. The important step was the adoption of the CMU Resolution "On providing the state targeted support to certain categories of citizens for vocational and higher education" (2016) , the MoES Order "On approval the entry procedure for people living at temporarily occupied territory of Ukraine to obtain higher and vocational education"(2016)  , as well as relevant amendments to the Law “On Education"   and "On Professional (Vocational) Education"  . The MoES together with the “Open Policy” Foundation created and posted videos on simplified access to the VET for persons from the temporarily occupied territories . The MoES made arrangements for educational centres "Crimea-Ukraine" and "Donbass-Ukraine"  .
 

Up to the present the VET system hasn’t been flexible enough and well-connected with all other sectors of education except general secondary education. 
Implemented policies: Since the last round of TRP the progress has been made in this sphere due to the adoption of the Law “On education” (2017) which stipulates the basis for VET system flexibility and connection with all levels of education starting from GSE to education of adults, thus, the lifelong learning principle is being developed. In particular, according to the Law, VET is to ensure the competitiveness of a person in the labour market, mobility and lifelong career promotion. VET is for the first time used in the Law in the context of GSE after basic secondary education in transition to the profile education (VET schools-based profiled secondary education), which will be implemented from September 1, 2027 (see A.3.3) .  It means that the profile education will envision obtaining certain qualifications along with complete GSE.
Certain flexibility in the developing of own learning trajectory for VET students now lies in the fact that it is not mandatory to have complete GSE to obtain VET. In particular, people who due to some reasons are not able to obtain VET and complete GSE at the same time and those who need rehabilitation, are entitled to get VET (without completing GSE).
A person who obtained a certain level of VET may continue with further levels of education, including shortened training programme in cases specified by the law. The principle to preserve the succession and lifelong learning as well as obtaining new qualifications is set. 
VET schools train, retrain and provide advanced training (upskilling). According to the current legislation a person has a possibility to obtain full or partial qualification after certain module-based courses. However, partial qualifications are not widely used at present. MoES of Ukraine continues to renew VET content introducing VET standards for certain occupations with competence-based approach . The approach means structuring such module-blocks of training according to qualifications. However, partial qualifications can be included into VET standard only if they are in standard of corresponding occupation. Thus, a student in fact can exercise the right to study separate training modules in line with approved standards and this is certified by a respective document . In its turn, it is possible to obtain partial qualification on a short-term course that is confirmed by a document record or a certificate.
It should be noted that VET standards on module- and competence-based approach are developed on flexible principles. With approval of the Guidance on VET standards development on competence-based approach the development of education programme will be carried out at the level of a VET school and agreed with employers at the regional level in line with the regional labour market demand . 
Currently VET standards provide for 20% of variable component in educational content in a total time for obtaining the qualification chosen by the VET school. This optional component is bound to be coordinated with employer on the regional level. 
In addition, the Law “On Pre-tertiary Vocational Education” (which is legally separated from VET, but practically belongs to the same sphere) envisions the participation of students in development of individual curriculum, selection of courses within the corresponding education programme as well as a possibility to define duration of this programme upon approval of the VET school .
Planned policies:  New Draft Law of Ukraine “On Professional (vocational) education” foresees the right to select form of VET, its iterations, change of learning trajectory, and continuation of lifelong learning to obtain vocational qualifications of higher NQF level. Time schedule for students will be planned according to their personal needs, learning conditions based on the contract.
Besides, there is the MoES Draft Order “On approval provisions on institutional form of Professional (Vocational) Education” according to the Article 9 of the Law “On Education” where the approaches to different forms of  VET obtaining are stipulated: full-time (daytime), part-time (evening classes), extramural, distance and network. Implementing these forms will give the opportunity to provide education services to wider range of students on different learning programmes, modules and work-based in particular . This will certainly expand the range of trainings offered by VET.
 

Implemented policies: The laws of Ukraine “On Professional Development of Employees” and "On Employment of the Population” introduce mechanism of validating outcomes of non-formal VET according to the profession (occupation). A person who due to non-formal learning, self-study, and practical experience has obtained an occupation can validate his/her qualification and obtain a standardised document certifying qualification level. It ensures an additional chance for those who were early school leavers to have a facilitated access to formal VET and higher motivation for studying. 
As of today Ukraine has a number of adopted regulations necessary for the functioning of the non-formal learning outcomes validation system. In particular, procedure of non-formal VET outcomes validation according to the professions (occupations) was approved by the CMU Order No 340 as of May 15, 2013. Citizens of Ukraine, foreigners and not-citizens who have permanent residence in Ukraine and people who are considered to be refugees, people who have asylum in Ukraine, who require additional protection, who are provided temporary protection and those who are granted permit for immigration to Ukraine can validate their qualification. The mechanism of validation is the same for all categories of people.
List of professions which are included into non-formal VET validation mechanism is approved by the  MoSP Order No 886 as of December 23, 2013 . At present it is possible to validate results on 6 professions . 
Validation bodies are companies, institutions, organisations, regardless the forms of ownership in line with the agreement made between the validation body and a person or employer. Requirements for  such bodies are listed in the Order of MoSP and MoES N 875/1776 as of December 16, 2013  . To consider issues of conformity of validation bodies to requirements set by the MoSP a guidance counselling body – Interdepartmental work group  was established. As a result of the Group’s meetings the List of validating bodies , which is approved by MoSP, was formed.  The commissions on qualification validation created by the validation bodies include representatives of employers – experts from relevant sector of industry or service with the relevant work experience not less than 5 years and with corresponding level of qualification.
A person who validated qualification obtains documents certifying the outcomes of non-formal VET: certificate on awarding (reskilling) VET according to outcomes of non-formal VET and assessment certificate of non-formal VET outcomes . As of May 1, 2019 the VET qualification “Cook” was validated and certificates were given to 181 persons and certificate on validation of partial qualification was given to 2 persons. The number of people who want to validate the outcomes (results) of non-formal learning is growing. Thus, in 2016 the qualification was validated by 14 people; in 2017 – 60 people; in 2018 – 85 people; in January-April, 2019 – 24 people. The number of companies and education institutions which want to be Entitled as Validation body is also growing . 
It should be noted that validation of outcomes of non-formal learning is done by way of assessment and measurement of the level of professional knowledge, abilities and skills. The assessment and measurement is based on criteria developed and approved by the validation bodies. To assist the work of such bodies Guidelines for assessment criteria of professional knowledge, abilities and skills, list of tools to measure professional knowledge, abilities and skills, self-assessment of non-formal VET outcomes questionnaires (2015)  and Guidelines for assessment process and validation of outcomes of non-formal VET on vocational professions(2016)  were developed. The provisions of these documents are in line with the implemented process of validation included into NQF . 
Planned policies: At present there is a need to expand the List of profession (occupations) for non-formal learning outcomes (results) validation. In 2018 the regional employment centres asked employers and jobseekers (unemployed) about arrangement of non-formal learning validation process . As a result of the questionnaire 15 professions were defined by jobseekers and employers as the most requested professions to be included into the List of validated professions. Besides that, the MoSP received propositions from employers from mining, electricity and energy industries and the railroad company. In 2019 it resulted in consideration of these professions and the List of professions (occupations) was expanded by more than 50 items.
Development of professional standards which set requirements for workforce qualification, professional and overall competences is an impetus to further work on validation of non-formal learning. Besides, at present there is no Procedure and guidelines of assessing standards development. Their development ensures unified approach to validate qualification obtained not only after non-formal or informal learning, but also the outcomes of formal learning.
In general the mechanism of non-formal learning outcomes validation requires improvement; in particular, creation of functioning independent qualification centres (to validate outcomes of vocational non-formal learning according to each profession or qualification or partial qualification) . Recently founded National Qualification Agency is also expected to have a function of developing requirements for procedures to award qualification, validate outcomes of non-formal and informal learning.
 

At the national level, neither information on the graduation rate by type of VET and programme, nor on the percentage of students or learners repeating the year is available.
Partially, there is data on students enrolled within the framework of the state or regional order who dropped out during the first year: in 2018, they made 4.5% of the total number of students enrolled on the state-order or regional-order basis. This indicator did not considerably change compared to previous years: the corresponding share remained nearly the same (in 2017 — 4.5%, in 2016 — 4.9%, in 2015 — 4.2%, respectively) . As for the other segments of education system (HE and GSE), the information on dropouts is not officially published.
According to the focus groups organised by the MoES in May and June 2019, with the participation of the departments of education and science of oblast (regional) state administrations, the main reasons for dropouts of VET students are the following: insufficient motivation, missing of lessons, poor discipline, etc. This is also affected by the lack of competitive selection of learners.
VETIs need to find the best ways to preserve the contingent of learners, which became an important problem in recent years.
According to the results of training, in addition to the usual diplomas of a qualified worker, diplomas with distinction were also received, as average, by from 0.5% to 2% of graduates of VET system.
 

VET system in Ukraine is socially oriented, that means that it serves to protect vulnerable groups of youth. These are orphans and children deprived of parental care; individuals with disabilities; children with one parent; children from families in difficult living conditions, low-income families, etc.
A complete list of such categories of individuals and the corresponding types of aid (benefits) are presented in clauses C.1.2 and C.1.4.
Orphaned children and children deprived of parental care are entitled to free accommodation in a hostel with necessary living conditions and conveniences; employment is provided in the event of completion of training, financial aid is provided for the purchase of textbooks, educational supplies, clothes, footwear, and other household goods. According to the current legislation, funds are allocated for the payment of social and academic scholarships to the corresponding categories of learners that are expended every year. Financial support for all categories of orphans and children deprived of parental care and similar individuals include disbursements of cash aid during the processes of employment. Besides, 3 meals a day are provided (for orphans). With the support of local authorities, funds from the regional budgets are allocated for health improvement of VET learners representing the abovementioned groups.
IDPs also enjoy the majority of social benefits — education, medical care, social assistance, pensions — even if they do not have a residence registration at their new place of residence. Significant support is also provided to combatants, children of combatants (ATO participants and individuals affected during the Revolution of Dignity) those who suffered in the result of Chernobyl nuclear disaster (see C.1.2 and C.1.4.).
In VET institutions, proper conditions for training, upbringing, living, rest and unhindered access to quality VET  are created for learners from socially deprived groups; they are also provided with psycho-pedagogical, social-medical, consultative-informational, financial, material assistance and ensuring with social protection
At the same time, there are technical problems related to the lack of appropriate conditions for people with special needs: the absence of special external and internal elevators for wheelchairs, bathroom stalls, mobile handholds and other equipment (see point D.1.2). In addition, some VET institutions face a problem of the lack of special staff which is needed to arrange proper training for people with special needs. The situation in other sectors of education, in particular in GSE and HE institutions, looks relatively better considering the fact of the differences present in the financing system of these sectors.
The number of children-orphans and children deprived of parental care who were trained in VET institutions during 2011–2017 was an average of 4.4-4.7% of the total contingent and individuals with a disability — 1.4-1.7%. In 2018, the situation has not changed very much. The respective shares were as 4.1% and 1.8% respectively .
In 2018, VET institutions graduated 4 455 orphans and children deprived of parental care (3.3% of the total number of graduates); and 1 707 individuals with physical and/or mental disabilities (or 1.6% of the total).
Statistics as to the contingent of VET institutions graduates which are IDPs, combatants, children of combatants (ATO participants, individuals affected during the Revolution of Dignity) are not currently published separately.
 

VET system is open for graduates from both institutions of GSE and special educational institutions (boarding schools), since the enrolment for study at the first-cycle VET does not require that an applicant should have basic or complete secondary education . VET sector currently provides education for all learners, including representatives of socially vulnerable and marginalised groups of the population.

An important change to maintain equality in VET system, since the last round of TRP, was the adoption of the Law “On Education” (2017) and the Law “On Amendments to certain Laws of Ukraine as to Access of Individuals with Special Educational Needs to Educational Services” (2018). As a result, the relevant changes were made to the Law on VET in order to ensure the right of people with special educational needs to acquire an education and to receive psychological, pedagogical, remedial and developmental services.
In VET system for people with special educational needs, along with the traditional ones, alternative forms of learning are allowed to be applied. 
In accordance with the individual characteristics of educational and cognitive activity for each learner with special educational needs, an individual program of personal development (an adapted curriculum) is designed that provides personalising of training and defines specific training strategies and approaches.
The hours planned for remedial and developmental classes are not taken into account when determining the maximum allowed weekly training load for learners with special educational needs. Remedial and developmental classes are conducted taking into account the peculiarities of the learner’s educational and cognitive activity. Special groups are completed with 6–12 learners basing on the homogeneity of disorders and recommendations of psychological, medical and pedagogical consultation.
For learners with physical and/or mental disabilities, the duration of vocational training can be increased by 1.5–2 times, depending on the type and severity of the disease and the complexity of training material. The Pedagogical Council can approve appropriate decisions at its meetings .
The full implementation of these actions is constrained by the lack of financing of VET sector and the lack of specially trained staff to work with the representatives of socially unprotected and marginalised groups of population.
These policies and practices are typical not only of VET system, they make a part of a broader approach to the Ukrainian system of education. In particular, it is related to the development of inclusive education, an area in which a significant step has been made over the last three years (see in detail paragraph C.2.4).

Definition of “inclusive education” and implemented policies: In December 2015 Ukraine ratified basic international agreements in the field of children’s rights protection in line with international standards of education, social protection and healthcare. First of all it is the Article 24 of UN Convention on the Rights of Persons with Disabilities which sets out the obligation of the State to ensure realisation of inclusive education model. In other words it creates special educational and space environment to ensure that all children are equal participants of educational process in inclusive educational environment in accordance with their needs, capabilities and opportunities. This model is an alternative to the boarding school system or to home or individual education where these children are educated and kept separately from other children.
The remarkable progress since the last round of Torino Process was the adoption of the law of Ukraine “On Education” in 2017, where one of the main priorities of state policy in education was the development of inclusive educational environment. It included educational institutions which were nearest and the most accessible to the place of residence of people with special educational needs . According to the Law inclusive education is a system of educational services guaranteed by the State which is based on the principle of non-discrimination, human diversities, effective involvement and engagement of all participants of the education into this process. Inclusive educational environment is a set of conditions, ways and means of their realisation for co-education, upbringing and development of learners based on their needs and capabilities. Person with special educational needs is a person that needs additional permanent or temporary support in the educational process in order to ensure his/her right to education. According to the Article 19 of the Law, the State and local self-government authorities have to create conditions to exercise rights and opportunities of persons with special educational needs to obtain education at all its levels based on their individual needs, capabilities and interests . The State ensures training professionals for work with such persons. 
Besides, in autumn 2018 the amendments in terms of inclusive education were made to the Law of Ukraine “On Professional (vocational) education” , according to which inclusive professional (vocational) education is defined as a system of educational services guaranteed by the State to obtain VET skills by people with special educational needs. It is expected that VETIs can form inclusive groups to train people with special educational needs. A person with special educational needs, his/her parents, or proxies should write an application and submit it to a head of a state VET school. The head has to form inclusive groups for people with special educational needs.
Last year`s novelty was the creation of inclusive resource centres (IRCs) according to the CMU Order “Some questions on resource centres for inclusive education support and inclusive resource centres creation” (2018) . This brand-new institution in Ukraine was created to exercise the right of children with special educational needs aged from 2 to 18 to obtain pre-school and GSE in particular in VETIs and other educational institutions, which ensure realisation of comprehensive psychological and educational assessment of a child development, psychological and educational, correction and development services and their systemic and qualified support.
In addition, provisions for inclusive education are envisioned in the National Strategy for the Reform of the Institutional Care and Upbringing of Children for 2017-2026 (2017) . 
The Government adopted the Procedures for Organisation of Inclusive Education in VET institutions by the Resolution of the CMU dated July, 10, 2019, No.636.  The document stipulates organisational principles for inclusive learning in such educational institutions regardless of ownership and affiliation, in order to exercise the right of people with special educational needs to obtain a quality VET, retraining, or professional advancement, with account for their needs and capacity. The Resolution ensures the provision of modern equipment for educational institutions, in accordance with their educational needs; the development of various learning forms and methods (such as distance form), barrier-free access to buildings and facilities of the educational institution for people with disabilities; engagement of the respective teaching staff (sign language interpreter, visual impairment specialist, special education teacher, speech therapist, occupational therapist, practicing psychologist); providing an assistant for people with  special educational needs during their stay in the educational institution; career advice.
In 2017 it was the first time when the Ukrainian government funded inclusive education through target subsidy from the State budget, which amounted to UAH 209.4 m . In 2018 the amount of state support was UAH 460.5 m (including UAH 304.5 m to support people with special educational needs; UAH 100 m to equip IRC offices, UAH 56 m to elaborate guidelines for comprehensive assessment of such children development progress). The CMU changed the initial amount of funding for conducting lessons and of purchasing correctional devices, increasing the amount for the latter (from 80:20 to 66:34 respectively). It also approved purchase of equipment for common (joint) use if an education institution enrols several children with the same needs. In 2019 the planned educational subsidy is set at UAH 504 m. For the first time it is planned to fund: UAH 37 m – for inclusion in pre-school education, UAH 25 m – for inclusion in VET; the increase in the pay-rates for teachers’ assistants (from 0.5 to 1). Additionally, UAH 624 m was allocated from the State budget for wages for the IRC staff. In 2016-2018 the number of GSE schools with inclusive classes increased by a factor of 2.5 (from 1518 to 3788), the number of students – threefold (from 4180 to 11839). 11560 schools provided non-barrier access to the first floor – 74% of total number of GSE schools. In 2018 there were 516 IRCs and 24 regional resource centres, in 2019 it is planned to open 184 more IRCs .

Planned policies: Ukraine has managed to make a remarkable progress in inclusive education development. Taking into account abovementioned it is primarily related to GSE sector. But despite numerous changes in the legislature, the actual expansion of inclusive education in VET sector is rather low. In this context, an important step will be in the implementation of activities stipulated by the CMU Resolution On the procedure of organisation of inclusive education for people with special educational needs in VET approved in July, 2019.

In Ukraine, the mechanism for the VET graduates employment is determined by the Procedure for the employment of VET institutions graduates trained for the state order .
Under the conditions of workforce shortage and mass labour migration of Ukrainian workers the employment capacity for VET graduates is high. According to MoES administrative data, in the 2017/2018 academic year 109.6 thousand of VET graduates were employed according to the acquired professions. It is 82.8% of the total number of graduates (89.7% in 2016/2017, respectively). In 2019 the VET graduates are the most demanded in the labour market for such professions as welders and gas cutters, mechanics and assemblers of agricultural and industrial machines, electromechanics and electrical installers, motor vehicle drivers and vehicle maintenance workers  .
The results of the "School-to-work transition surveys" confirm that a young person’s education affects the stage of his/her transition to the labour market, and, accordingly, the employment opportunities. In particular, 62.6% of those polled completed their transition to the labour market. 36.1% were “in transition process” and 1.3% was at the “not yet started transition” stage (compared to 69.7%, 29.0% and 1.3% of young people with HE). At the same time, the corresponding shares for persons with primary and basic secondary education are 46.2%; 49.1% and 4.7%, respectively . This research confirmed the existence of significant obstacles for young people on their way to the labour market. These impediments refer to problem of identification of young people’s skills; the significant youth employment in the informal economy; low youth awareness of labour rights; unreasonable underestimation of wages and widespread practice of extra-working hours for young workers.
Another problem is lower than expected wages offered by employers to VET graduates in majority of economic sectors. It contributes to labour migration. Mostly, it does not refer to mining and metallurgical industry enterprises. Qualified workers in these sectors are one of the most highly paid . Also, the imperfection of the current labour legislation does not allow employers to raise workers’ wages in many cases. In particular, for an employee to occupy a higher position with better wages, it is necessary to work long . The crucial problem is the mismatch between VET graduates’ knowledge and skills and the employers' demand.

Mentioned economic factors (lack of labour demand because of insufficient job creation, oversupply of labour due to migration) are not typical for Ukraine. On the contrary, as it was mentioned in B.1.3 and C.3.1, there is a lack of labour resources and mass labour migration of Ukrainian workforce. The key economic factor in this situation is limited number of jobs with suitable working conditions and wages. Significant share of young people engaged in informal economy should also be taken into account . 
Besides, the lack of motivation to take available jobs significantly decreases employment opportunities of VET graduates. The reason is in hard labour conditions and complicated labour processes, low motivation of graduates to be employed because of low wages offered. Therefore, the priorities are to improve jobs quality, stimulate young people to transit earlier to labour market as well as to raise wages. Additionally, there are some administrative barriers preventing VET graduates from access to certain positions which should be minimised (see B.1.2).
It should be noted that the non-economic factors mostly discourage VET graduates to enter the labour market. Above all, employers are reluctant to hire VET graduates as they have no working experience. Besides, there is an obligation to follow labour legislation when employing young graduates. Also, there is a mismatch between the level of knowledge and skills obtained by graduates and employers’ needs; problems with organisation of students’ and teachers’ WBL to ensure quality of VET etc.
 

State policies (implemented and planned) in support of employability of young people by ways of improving the quality and relevance of skills development in VET are described in the Building block on internal efficiency and operation of VET system (see blocks D.1.3, D.1.4, and D.3 ). They include a wide range of polices connected with improving quality and relevance of VET content to labour market needs, renewal of educational content, improving teaching methods, improving educational environment which finally facilitates transition of young people to employment.
Polices in support of employability and from VET to employment transition of young people are  some active labour market policies described in details in B.1.6, including implemented and planned policies. In particular, according to the Laws of Ukraine “On Employment of the Population” and “On compulsory state social insurance against unemployment” these policies include various information and consulting services related to employment; career guidance; promotion entrepreneurship for VET graduates, by means of opening entrepreneurship development centres and business incubators, single paid assistance to open own business etc. ; further training or work-based learning ; support of employability including community and other temporary work; providing employers who employ VET graduates with compensations; organising employment fairs, career days, career guidance days, open house days in EC of SES etc. In particular, review of policies in support of employability and transition of young people to employment with the help of career guidance and entrepreneurial development is presented in B.2.2 and C.3.4. 
Since the last round of TRP in order to renew the content of vocational career guidance for population, especially the youth, in 2018 the Concept of state system of vocational career guidance for the population was renewed and the relevant Action Plan of its implementation was approved  . The Plan envisions innovative career guidance services for population, implementing public-social governance, more comprehensive coverage of population with vocational services. 
Besides that, as part of support of productive employment the Cabinet of Ministers of Ukraine has approved the Procedure of registration and renewal of registration for jobseekers (2018) . This document is the legal basis for implementing:
-    career guidance counsellor institution, who can provide an individual approach to every client of SES, quality service of career planning taking into account employers needs and jobseekers’ possibilities;
-    profiling of unemployed and jobseekers to assess possibility of their employment with their skills, qualifications and providing target services to return these people to the labour market;
-    individual plans for providing employment services. These plans will be a joint venture (programme) of career guidance counsellor (with individual support and organisation of service) and a jobseeker or a registered unemployed with mutual obligations for seeking a job.
This document realisation will improve the quality of SES services, in particular, it will facilitate better selected vacancies for jobseekers or registered unemployed, increase of the number of successful cases of bringing such people back to the labour market and establishing cooperation with employers in finding skilled workers. At the same time, cooperation with employers in organisation of work-based learning for young people is being developed . The principle of individual further training programmes is applied, including in-company internship to obtain new competences. 
SES supports the promotion entrepreneurship for young people. The business-forums, competitions, meetings, round tables, workshops, trainings, consultations for the promotion entrepreneurship for young people have been held. Highlights are made to inform people on much-in demand directions of entrepreneurship in the region; about organisations, projects, donor-programmes, crowd-funding platforms that give support to open business; possibilities to learn business basics especially in support of the SES. In 2018 the Employment Centres held 488 events for 16.8 thousand young people . People who expressed their wish to organize their own business can take part in the workshops “How to start business?”, “Workshop on issues how to organise green tourism” etc. (8 thousand workshops were conducted with over 90 thousand people participated in 2018). The individual career guidance services have been provided with the use of psychodiagnostic testing to assess entrepreneurial skills. Unemployed who decided to start their own business with SES support are trained entrepreneurial basics in educational institutions. The consulting centres and centres for entrepreneurial development provide free of charge expert counselling. Single paid assistance to open own business is provided. During 2018 893 people aged under 35 used this service. The Order approved by the MoSP “On approval Guidance recommendations on mentoring” (2017) to provide professional adaptation of workers who start their work in the company .
 

Activities aimed at enhancing employability among young adults include, among others, career guidance and career planning. Present-day social economic conditions in Ukraine require the establishment of an entire system for professional orientation. It shall provide for the choice of profession relevant for the labour market, and training of qualified workforce able for lifelong learning, advance their qualification levels, and get a new profession, if required. 
Implemented policies: The renewal of the Concept of state system of career guidance for the population (2018) has become the important step of such integral system creation since the last TRP round . To implement this system the Action Plan for the implementation the Concept of state system of career guidance for the population (2018) was approved . The Plan envisions to engage communities and business into the management of career guidance for the population; to provide systemic and comprehensive service coverage for all groups of population; to give innovative, career guidance services to population. Among others regulations concerning issue there have been the CMU Orders “On Approval of State Targeted Social Programme “Youth of Ukraine” for 2016 - 2020” (2016) , SES Programmes for career guidance for 2017 – 2020 (2017) , Action Plan for the Programme “Basic tasks and mechanisms of implementing SES Programme for career guidance for 2017-2020” (2017) .
Today the career guidance work involves government authorities, social dialogue stakeholders and civil society institutions. SES plays the most important role among the government bodies. Employment Centres provide young people with career guidance services, giving them information on market-forming companies, much-in-demand jobs, vocational training courses, vocational schools, individual career guidance consultations, including testing technologies . The focus is made on the career guidance for people not in employment, education or training. Along with that the career guidance support of students and GSE graduates is conducted to implement SES career guidance programme for 2017-2020 . The consultations how to select a job are carried out, career guidance lessons, career guidance tours, educational institutions’ open house days, interactive competitive and motivating events (vocational tournaments, master-classes, quizzes), employment fairs, career days etc. As a part of cooperation with Career Centres psychodiagnostic consultations, meetings with employers are provided, graduates resume databases are created for young people who study in VET etc.
Employment centres promote modern forms of job seeking and employment using Internet, resume and video-resume database services, on-line interviews, psychodiagnostic testing in automated working station “Profkonsultant” (Vocational consultant). The possibility of distance learning for young people with help of free of charge educational web-portals is also provided. In 2018 SES introduced career guidance testing on “Career guidance and career development”  and “My job: Consulting network" web-platforms  . According to SES in 2018 over 30 thousand people were tested on these Platforms.
During 2018 1.3 m of young people received career guidance services from SES, they studied in different types of educational institutions. In particular, there were 80 thousand HEI students, 64 thousand VET students and 1.2 m GSE pupils . In 2018 in order to do the career guidance work over 11 thousand GSE schools (68%) were engaged by EC . In cooperation with social partners and employer’s organisations over 14.5 thousand career guidance events were held for young people to motivate them to choose VET occupations . 
Overall, 360.6 thousand unemployed young people aged under 35 (95.7%) got 1.6 m career guidance services in 2018. They were provided with 597.5 thousand career counselling services, incl. 55.4 thousand consultations with psychodiagnostic tests. 10.3 thousand young people took part in vocational occupation selection on employers’ demand. As the result – 44.4 thousand young people selected occupations in demand in the labour market and 124 thousand young jobseekers found a job. Summing up, in 2018 over 1 m jobseekers got the career guidance services (96.6% of registered unemployed); over 97 thousand events were held; 4.8 m career guidance services were provided.
The forms and methods of information, counselling and career guidance work with adult population are developed (workshops on labour market issues, job seeking techniques, guidance for entrepreneurial activity, gaining additional competences etc.). Besides that, individual career guidance services are offered with psychodiagnostic testing, vocational selection for vacant jobs on employers’ demand).  
On March 4, 2019 the Federation of Employers of Ukraine and MoES of Ukraine organised round-table “Cooperation of business and VET institutions”. The discussion resulted in the recommendations to support career guidance testing for 9-grade pupils of GSE schools, to conduct career days at schools inviting employers and VET representatives, and also to carry out events promoting VET to eliminate the imbalance between the number of GSE and VET learners. 
Also, to raise the awareness of young people in perspectives of obtaining VET, skills competitions were held. They showed what vocational competences were demanded by employers, gave opportunity to provide information on latest news on occupations and get access to internationally recognized vocational standards. Within the MoES activities, in 2019, five All-Ukrainian Competitions of Professional Skills were conducted, for VET learners, in the professions of a “cook,” “electric fitter for repairs and maintenance of electric equipment,” “house painter,” “tractor operator in agricultural production,” and a “waiter.” Over 700 persons ran for the competitions. The 30 winners were awarded with the scholarships from the President of Ukraine. In 2016-2018 the “Worldskills Ukraine” (All-Ukrainian competition of professional skills) was held in line with the international rules engaging representatives from 25 regions of Ukraine. It was adopted the Provisions on the All-Ukrainian Competition of Professional Skills “Worldskills Ukraine” (Decree of the MoES dated July, 16, 2019, No. 984).  
In 2019 the new Board of the Vocational Career Guidance Council for population – counselling and consulting body at the CMU was approved  . On June 3, 2019 the first meeting of renewed Council was held where the Memorandum on Cooperation between the Ministry of Youth and Sports, MoES, MoSP, SES  was signed. The document sets out more possibilities for career guidance testing  as well as creation of career centres in VET schools and HE institutions. In these centres students will receive consultations how they can continue their further career, what subjects they should select to follow their goals.

Teaching and learning environment: Educational environment of VET institutions according to the Order of the CMU “On approval of license conditions for education” from December 30, 2015 N 1187 sets out mandatory requirements for:
- teaching staff (the number of  workshop trainers with relevant education (100%),  teachers with the first and higher qualification category (25%); relevant vocational education of teaching staff (100%));
- material and technical resources for education (hostels, workshops, offices, labouratories, machine grounds, equipment, computer workstations, libraries, gyms and stadiums, in-school medical services and school-feeding);
- educational and methodological capacity for training (availability of professional standards, curricula for theoretical and practical trainings, teaching and learning sets for every subject, internship programmes, didactic materials for individual study, teaching and learning materials for every subject, assessment criteria for knowledge and skills; workshop and lab work plans etc.);
- provision of information for study (text-books and e-books for learners, official web-sites of educational institutions, reading rooms in the libraries etc.);
Key issues: According to the VET sector’s needs assessment “Formulating EU assistance in reforming the system of professional (vocational) education in Ukraine” most of the VET schools, regardless of region, have a very high level of depreciation of their infrastructure (60-100%) . The equipment is outdated, while the buildings have not been renovated for 30-40 years. The support from the budget to improve infrastructure is insufficient and PPP is poorly developed. The regions need investments for major renovation and energy saving technologies as well as procurement of modern equipment and technical re-equipment. Another key problem of VET sector is lack of facilities for the people with special educational needs. Most of the VET schools remain non-accessible to them (lack of special exterior and interior lifts, wheelchair lifts, portable rails and other facilities).  
The main problems of the “soft” component (teaching and learning environment and teaching staff) are the following:
-    shortage of up-to-date textbooks on specialisation, which publication is funded neither from state, nor from the regional budgets.
-    problem with the provision of general education textbooks (for obtaining secondary education). Schools have to purchase such textbooks by themselves;
-    a desperate need to produce e-books and replenish the library collection;
-    the duration of work-based learning is rather short;
-    low motivated teachers due to low remuneration and absence of opportunities for professional development; part of VET teachers is not ready to obtain new, up-to-date, innovative teaching methods which are in line with modern education principals. 
In its turn, the low motivated VET teachers is one of the negative factors for workforce shortages increase in the labour market of Ukraine and low motivation of VET students. It also increases a number of young people who want to obtain HE, including HE abroad.
Factors affecting teaching and learning environment: (1) inefficient financing of VET institutions, inefficient funding schemes for educational institutions, lack of mid-term-budget planning; (2) lack of effective governance at all VET levels; poor understanding of VET system value and its role in the development of the country and regions; (3) shortage of qualified teaching staff (especially trainers for WBL); (4) lacking autonomy of VETIs; (5) absence of reliable medium-term labour market forecasting system both on the state and regional levels; (6) insufficient motivation of stakeholders  in the VET development process; (7) low attractiveness of VET.
According to MoES under decentralisation the local budgets can cover only near 60% of VET financial needs in the regions. VETIs located outside the cities with the regional status and the region centres find themselves in a worse situation since only 45% of their needs are covered).

Implemented policies: Since the last TRP round the number of measures of providers, government authorities and donors has been taken on the level of the schools themselves to improve teaching and learning methods in VET system. In 2018-2019 the innovative educational environment has been introduced in VETIs, with element of modern educational technologies and methods with the emphasis on ICT (electronic means for education, distance learning etc.). In particular, this trend was demonstrated on exhibitions (expos) “Innovations in modern education – 2019”, “Modern educational institutions – 2018” (see D.1.4) and is based on the use of cloud technologies (Web-applications; on-line school records; on-line services for education, communication, testing; system of distance learning, multimedia library; file repository, shared services; video conferences, etc.) .
Using ICT in education supports development and application of e-courses and on-line courses as different forms of unified, high quality, modern education (see B.1.4.) . The Academy of Innovative Development and Education at IECM introduced training course for teaching staff to develop on-line courses “Methodology of distance courses development” . Broader access to e-text-books on MoES and IECM official web-sites also gave a positive impact . In general these measures are in line with the state policy according to 2018 – 2020 Roadmap for Developing Society and the Digital Economy .
Improvement of teaching and learning methods in VET system on the institution level is manifested in more active application of such modern forms and methods of learning as project-method; trainings; case-technologies; group-work; simulation; technologies aimed at development of creative, entrepreneurial and business skills. Other modern methods of learning include problem-based class, visualisation-class, dispute-seminar, brain-storming, problem-based method, portfolio method. Taking into account the fact that the main focus of learning today is on individual learning, the use of project method is an acute issue .
Improvement of teaching and learning methods in VET system is supported by the following projects of donors:
-    Promoting development of VET in agriculture colleges of Ukraine (German Federal Ministry of Food and Agriculture (BMEL)).  Objective – to improve methods and content of VET in agricultural colleges of Ukraine, which are oriented on practical activities (creation of a unified information and methodological platform, including development of electronic manuals, textbooks, open online courses, educational videos);
-    Sharing Estonian experience to support Ukrainian VET reforms (Estonian Ministry of Foreign Affairs (INNOVE)) . One of the project goals – conducting training and internship for school administrations and teachers, conducting master-classes on modern teaching methodologies.
The approval of the MoES Order “On implementing dual form of education in vocational training of skilled workers” (2017) , the CMU decree “On approval of the Concept of training on dual form of education” (2018) , and also “Action plan on the concept on training on dual form of  education”(2019)  can be considered as the remarkable progress in WBL improvement in VET system. 
Introduction of the dual VET elements started in 2015, as an experiment on a nationwide scale.
2015 – 3 VET schools, 3 working professions, 97 learners, 25 employers;
2017 – 46 VET schools, 54 working professions, 3,000 learners, 300 employers;
2018 – 198 VET schools, 114 working professions, ab. 7,000 learners, 800 employers;
2019 (plan) – 254 VET schools, 160 working professions, 10,000 learners, 1,000 employers.
It has been developed draft Provisions on Dual Form of VET, with a template Contract for Applying for dual form of VET in an Appendix.
Planned policies. According to the Action plan of the Concept of dual training in 2019-2023 it is planned to take measures to inform different categories of population on positive experience of dual training, in-company internship of VET teachers using global experience of dual training. That will give the opportunity to improve professional skills and apply new methods of teaching. 
Ukraine anticipates progressive changes in this sector during 2018-2020 when the EU project “EU4Skills: Best skills for modern Ukraine” is completed as well as after donors’ support (see A.3.5).
Approval of the Provisions on Dual Form of VET and its consistent implementation will enable mutual coordination of provisions from legal acts regulating relations in VET area, labour, fiscal regulation, and shaping the basis for efficient interaction and setting liability for learning outcomes for VET learners in a VET school and for employers; raise the level of professional skill of teachers in VET schools; enhance motivation for the development of cooperation with companies; increase the prestige of VET schools; provide compliance of competencies of VET graduates with the labour market demand, the needs of specific employers, and the growth of economy.

Between 2016 and 2019 the Education and Practical Centres (EPCs) were created using the State budget funds to train skilled workers on the following occupations:
- in 2016: “seamstress, tailor, pattern cutter.” – 14 EPCs, “tractor driver/machine operator in agricultural production” – 2 EPCs, “installer of sanitary technical systems and equipment” – 9 EPCs;
- in 2017: “seamstress, tailor, pattern cutter.” - 13 EPCs, “tractor driver/machine operator in agricultural production”  - 2 EPCs, “fitter of sanitary and technical systems and equipment” - 10 EPCs;
- in 2018: “turner, turning machine operator. Milling machine operator. Grinder. Driller” – 9 EPCs, “Electric manual welder. Electric welder operator of automatic and semi-automatic machines. Welder.” – 25 EPCs, “Fitter in repairs and maintenance of electric equipment. Wireman on on power grids and lighting equipment” – 15 EPCs, “tractor driver/machine operator in agricultural production” – 1 EPC.

- in 2019: – it is planned to have 45 EPCs more, such as: “turner. turning machine operator. Milling machine operator. Grinder. Driller” – 2 EPCs, “Fitter in repairs and maintenance of electric equipment. Wireman on power grids and lighting equipment” – 10 EPCs, “tractor driver/machine operator in agricultural production” – 2 EPCs, “Fitter of insulation systems for buildings” – 4 EPCs, “Wood processing machines operator” – 5 EPCs, “Fitter in engine repairs. Fitter of mechanic installation works. Fitter in repairs of road construction machines and tractors. Fitter in repairs of wheeled vehicles. Fitter in repairs of agricultural machines and equipment” – 22 EPCs.
Since 2016, on the basis of VET schools, 26 EPCs have been created engaging investment from social partners (“Snezhka Ukraine LLC – 11, “Geberit International Seitz AG” – 6, “FOMALGAUT-POLIMIN” LLC – 4, “Siniat” LLC – 2, “Knauf Hips Kyiv LLC – 1, “Vidaron TM” – 1, “Triora TM” – 1).
In 2018-2019 VETIs continue to create innovative, educational environment, which has the priorities in updating the material base, improving teachers’ competence, implementing modern educational technologies. The distinctive feature is the introduction of ICT in the following areas :
– cloud technologies: web-applications; on-line school records and on-line diaries; on-line services for education, communication, testing; system of distance learning, multimedia library; file repository, shared services; video conferences, e-mail on educational institution domains;
– learningApps a kit to develop interactive assignments;
– services to make and publish presentations: Empress, Google Docs, Prezi, ZohoShow, SlideShare, VCASMO, Knoodle;
– ”Master-test” – on-line tests compiler;
– making e-text-books.
The major focus was made on preparation of e-text-books which are up-to-date and for a new generation. In particular, since the last TRP round the number of on-line educational sites to form teaching and learning VET environment grew to 75 (metal work, heavy engineering and tool making; mining industry; agriculture; construction; transport and communication; commerce and services; IT).
New education standards are based, in particular, on “Recommendations of the European Parliament and Council of Europe on key competences for lifelong learning”. One of them is information and digital competence (see B.1.4). It envisions the use of ICT for searching, processing, exchanging information in work, public space and private communication purposes. At present near 80% of VETIs have multimedia devices installed and they are used for general and vocational education. In 88 % of VET hostels there are workplaces with Internet connection. 98% of VETIs have official web-sites.

Planned policies: In addition, to solve the problem mentioned in D.1.2 (shortage of text-books for VET) it is planned to use the State budget funds in 2019-2020 to publish 15 books for VETIs with “Recommended by the MoES of Ukraine” form heading, which will improve education and upbringing process in VETIs. Total print is 200 thousand copies.
As a part of EU project “EU4Skills: Better Skills for Better Jobs in Modern Ukraine in 2020-2021 the procurement of equipment and creating of centres of excellence, revision of educational content, training of teaching staff, development of new professional, educational standards, and standards for qualifications evaluation are planned (project total amount - EUR 58.0 m) . Besides, further implementation of policies according to “2018 – 2020 roadmap for developing society and the digital economy” will impact positively on updating information and communication technologies (ICT) .
 

Composition of pedagogical (teaching) staff. As of September 1, 2018, the number of teaching staff was 33,900 people, out of which 2% were senior trainers (senior masters); 41.7% — trainers (masters); 36.3% — teachers (in particular, 20.8% — teachers of general educational disciplines, and 15,5% — of VET). The rest are administrative staff, educators, practising psychologists, social educators, and other categories.
The share of women makes up 62.9% (in particular, 55.2% among senior trainers and trainers, and 69.4% among teachers). Thus, the gender imbalance (in terms of female gender) is more typical of teachers. The composition of teaching staff of VET system is presented in Table 5.
The majority of trainers (90.3%) have higher education. These figures for teachers are 99.7% (with the higher education) and 73.7% (with higher pedagogical education), respectively.
The majority of pedagogical staff has a considerable tenure in VET system for more than ten years. In particular, the share of those with a tenure of up to 5 years — 16.8%; 6–10 years — 16.7%; 11–20 years — 25,9%; 21–30 years old — 21,1%; over 30 years — 19.4%. At the same time, the share of people with a short tenure (up to 5 years) among trainers is higher (20.6%) compared to teachers (13.7%). This is partly due to a higher turn-over rate among masters and due to low wages and social protection (no social benefits and guarantees for medical treatment, rehabilitation).
During the school year, 25.1% of teachers had run continuous training (in particular, 24.8% were trainers and 29.6% were teachers). About 26% of pedagogical staff has two or more occupational qualifications.

During the last three years, the total number of teaching staff has decreased by 14.1% (see Table 6). There were no more than 3.5 thousand vacancies occupied (9.1% of staff roster). At the same time, there is the greatest lack of trainers (12.9% of staff roster), due to the lower wages in VET, than in the industry. The key factors of reduction of the number of teaching staff is the reduction of the total contingent of VET learners, the decrease of the number of institutions due to optimization of the network of VETIs, low wages and low social protection of this category of staff. The comparatively low salaries of VET sector teaching staff make their profession less prestigious.

According to the Law of Ukraine "On Education" No. 2145-VIII as of 09.05.2017 (Article 54), pedagogical staff members are subject to certification, the results of which determine their correspondence to position, the level of qualification, qualification categories and pedagogical ranks that are assigned. The frequency of mandatory attestation and the procedure is stipulated by Typical Provisions on attestation of the teaching staff approved by the Decree of the MoES dated October, 06, 2010 No.930.  
The procedures for advancement of qualification of the teaching staff of VET institutions are approved by the Decree of the MoES dated April, 30, 2014 No. 535. 
The attestation takes place on the basis of the template of Regulation on certification of pedagogical staff, which was adopted in 2010. The attestation is performed by the attestation commission, which analyses: (1) the level of occupational training and pedagogical skills of a teacher (including erudition, work on self-improvement, self-education); (2) the quality of preparation for lessons; (3) the quality of teaching of the teaching material ; (4) principles, methods and means of education and upbringing; (5) system for verification and assessment of learners’ achievements; (6) the level of academic achievements and parenting. (7) Ethics of conduction of lessons, humanization of educational process; (8) educational work with learners; (9) the level of ICT use in teaching.
Phases of career path of teachers: qualification categories "specialist", "specialist of the second category", "specialist of the first category", "specialist of the highest category"; pedagogical rank “senior teacher", "teacher-methodologist".
Phases of career path of trainers: according to the results of certification, they can receive an increased tariff rate and pedagogical ranks "trainer of the second category", "trainer of the first category".
An opportunity to obtain a qualification category of a higher level provides an opportunity for further career. The attestation of the teaching staff is directly related to the remuneration of their labour.
In general, due to the reasons mentioned above, the occupation of a teacher remains unattractive for young people. As a consequence, there are problems of unfilled job vacancies as well as trends in the aging of teaching staff, low professional mobility of teachers and lack of motivation to master the latest pedagogical and industrial technologies. There are specialists in the industry who are unmotivated to work in VET system due to low wages in the VET sector.
 

According to the Law of Ukraine "On Professional (Vocational) Education" (1998), the teaching staff of VET institutions may include individuals having proper professional education and pedagogical education, moral traits and physical status, which enable them to perform the duties of a teacher. Other normative acts in this area are the Law of Ukraine "On Education", "On the Professional Development of Employees", the CMU Resolution "On Approval of Licensing Conditions for Conduction of Educational Activity" (2015) .
Requirements to a pedagogical worker are determined by the qualification characteristic approved by the MoSP according to the submission of the MoES .
Requirements to teachers: In order to become a VET institution teacher, one needs to have a full higher education (master, specialist) majoring in "Vocational Education" or another complete higher education and psychological and pedagogical training (without requirements for tenure). He/she should know: the methodology of the organisation of education and educational process, the basics of pedagogy, psychology and age physiology, rules of internal labour regulations, requirements and rules on labour protection and fire safety.
Requirements to trainers: Trainer of VET institution needs to have a secondary special or HE in the specialty, the level of working qualification should not be lower than the established one by a curriculum for a graduate of VET institution of a relevant occupation concerned. 
Teachers are hired by the way of conclusion of an employment agreement, including a contract, by a director of the VET school. They are obliged to constantly improve their professional level, pedagogical skills and the general culture; to ensure proper conditions for students to master their curricula; to promote the development of their abilities; and to adhere to pedagogical ethics.
The following requirements and procedures are sufficient to become a teacher in VET institution, yet it is not enough to provide the expected results. In practice, there are a number of problems. Pedagogical workers who did not have practical experience before employment, lack the knowledge in methodology, pedagogy, psychology and partly in VET. Pedagogical workers who have undergone the corresponding psychological and pedagogical training, lack special knowledge.
Instructors at companies are appointed among the qualified employees of the high qualification who do not always have the required pedagogical training.
 

Most of the teaching staff of VETIs engage in pedagogical activities on the basis of full employment (90–95% approximately). They can combine teaching with a public or civil service position, or with a contract job. Also, they can work part-time, and combine positions. In particular, in practice, due to low wages, there are teachers who hold several positions simultaneously at one educational institution, and also work part-time in another one.
According to the focus groups conducted by the MoES in May-June 2019 involving departments of education and science of regional state administrations, the prevailing majority of teachers work on an indefinite employment contract (about 75%), while others work on a contractual basis (25%).
There is a problem of employment of young teachers who have just finished HE institutions, because a significant share of jobs is occupied by individuals of retirement age (see point D.2.1).
VET schools face a challenge to fill the positions with workshop trainers. It can be explained by low salary levels. At production facilities, however, the payment levels are much higher. Besides, an employee at an enterprise does not have to keep so much documents. 
It should be noted that in statistical reporting, centralized collection of information on employment status at the national or regional level is not performed (only at the level of institutions).
 

The level of qualification of pedagogical staff is determined by the attestation commissions of the first, second and third levels. The commissions work in accordance with the template of the Regulation on Certification of Pedagogical Staff in Ukraine (2010) . Attestation of teachers necessarily is preceded by the system of professional development. 
Teachers and trainers advance their qualifications on a regular basis, but not less than once every five years, and it is mandatory for all teaching staff of VETIs. The content of the training is focused on the improvement of the professional competency of pedagogical staff, corresponds to the didactic principles of education. During these courses, the formation of methodological and theoretical competence, deepening of social and humanitarian and psycho-pedagogical knowledge, formation of skills of using the newest educational methods and ICT has been implemented.
According to the Law of Ukraine "On Education" (2017), teachers can improve their qualification in different forms, types and in different subjects of professional development. The pedagogue chooses concrete forms, types and subjects for occupational development taking into account self-assessment of their competencies and occupational needs.
In accordance with the Procedure for Advance of the Qualification of Teachers of VET Institutions (2014) , pedagogical staff undergo postgraduate educational courses at the institutions of higher education, educational and methodological (research) centres (offices) of the MoES, at enterprises, at organisations, as well as on the basis of VET institutions; they are free in their choice of forms of study, programs and educational institutions. The improvement of qualification of pedagogical staff is performed according to the following types: long-term training (from 72 to 216 academic hours)  ; short-term training (up to 72 hours)  ; internship.
In particular, workshop trainers can take traineeships using WBL at enterprises in order to advance or to confirm the working class of their occupation. According to the results, certificates of training or certificates of confirmation (advance) of the working qualification are issued. The training takes place on the basis of bilateral agreements between educational institutions and enterprises. At the same time, the issues of training for workshop trainers, organisation of their training at the enterprises with the purpose of mastering the latest production technologies remain as a problem. Partially, this problem is resolved by passing of traineeships on the basis of regional training centres or by the way of creation of new education and practical centres.
Another problem is about insufficient funding for advancement of qualification of the teaching staff.
The material incentives for continuing occupational career are the increase of wages following the results of the certification of teachers. However, the small difference in remuneration between categories does not contribute in order to increase the motivation for advancing of training and category .
During the years 2018–2019, 8502 pedagogical workers (or 25.1% of the total number) advanced their qualification, including 3647 of senior trainers and trainers (or 24.6% of the total number of trainers), 3645 teachers (or 29.6% of the total number of teachers).
As for the non-governmental sector in VET system — instructors in the industry do not undergo psychological and pedagogical training on a regular basis, instead of that, they study according to the programs of advanced training and internships by the specialty at the enterprise. These programs include theoretical courses and particularly WBL.
 

Since the last round of TRP, no significant changes have been made as to the conditions of employment of teaching staff, the minimum qualification requirements for this occupation, or the structure of teachers’ and trainers’ career path.
Mainly, the changes were related to remuneration conditions, which currently is very relevant (see paragraphs D.2.1 and D.2.3). In particular, in order to increase the prestige of educators’ work, the official salary was increased by 30% starting from September 1, 2018 .
Besides, in April 2019, some amendments were made to the resolution of the CMU "On Approval of the Procedure for Provision of Workplaces for Learners’, VET Students’ Work-Based Training and Work Practice" (1999)  as to the promotion of trainers. In particular, from now on, 15% of the funds may be allocated to the awarding of trainers and VET teachers for the direct training of learners, for the quality of organisation and implementation of educational curricula on WBL and internships in accordance with personal contribution to the overall performance .
In addition, the practice of attraction of the necessary professionals to work part-time is used partially to resolve the problem of staff shortages.
At the same time, the lack of pedagogical staff remains a problem. As of September, 1, 2018, 3 547 vacancies of teachers and trainers were not occupied (9.1% of the staffing table). At the same time, there is the greatest lack of trainers and senior trainers (12.5% of the staffing table) due to lower wages in VETIs compared to real sector. The lack of teachers accounts near 6.1% of the total need.

Implemented policies. Human resource reform of VET system remains one of the key areas of the state human resource policy of Ukraine. Its priorities are the stimulation of high-quality pedagogical work; improvement of housing conditions, provision of rural teachers with free of charge housing with heating and lighting, transportation to the work place, etc. ; providing conditions for a full-fledged reproduction of the efficiency of pedagogical staff (rest in departmental rehabilitation facilities)  .
Since the last round of TRP, one of the important steps in this area was the approval of the Law on Education (2017). According to the Law, the professional development of teaching staff involves constant self-education, participation in higher education curricula and in any other types and forms of professional growth. Education institutions, where teachers work, favour (facilitate) their professional development and continuous training.
There is a possibility for teachers to complete mandatory continuous training courses (once every 5 years), which are funded by the State. The new mechanism for advancement of qualification sets that the funds for this purpose are received by VET institutions, which distribute them according to the decision of the educational council of the institution. In addition, the upgrade teachers’ vocational specialisms may be financed by the founder of the educational institution, by the teacher himself or herself, as well as by other individuals and legal entities. However, currently, the advancement of qualification is conducted under the old algorithm. 
The training is completed in different forms (educational programs, traineeships, participation in certification programs, trainings, seminars, conferences, workshops, seminars-meetings, master classes, webinars, etc.) and in various types (institutional, dual, WBL (in the industry)). A good example is the launch of schools for IT competencies promotion in several regions — an educational project that envision the training of VETs staff how to use modern IT resources . Additional opportunities for professional development of teachers in the context of digital transformation are overviewed in the clause B.1.4.
At the same time, the opportunities for professional development of teachers to improve their professional skills using work-based facilities (for example, teachers’ visits to the companies, traineeships and work in industries, cooperation with industry mentors in companies) are currently limited (see point D.2.4).
Incentives for professional development: According to the results (outcomes) of certification, teachers who have achieved high performance indicators in their work are awarded with pedagogical ranks and can expect increase of wages and salaries . 
The innovation of recent years has been the gradual introduction of voluntary certification of a teacher which takes place on a voluntary basis solely based on his/her initiative . By the results of successful certification, a teacher receives a certificate that is valid for a period of three years. Successful certification is considered as attestation of a teacher and he / she gets an allowance that is set in the amount of 20%. This is an additional incentive for professional development. So far, the mechanism is in force only for the teachning staff of the GSE institutions. 
In addition, there are opportunities for teachers’ career path (stages of career path are given in paragraph D.2.1).
Planned policies. One of the goals of the Concept for the implementation of state policy in VET system "Modern professional (vocational) education" for the period up to 2027 is the introduction of incentive mechanisms for the promotion of teachers’ professional activity and development.
At the first stage of the implementation of the strategy (years 2019–2021) it is envisaged:
- to improve the system of professional development of teachers in VET system with the involvement of highly qualified production workers and service providers in the educational process;
- to start certification of VET teachers.

In December 2017, a new central executive body for external education quality assurance was created, the State Service of Education Quality (SSEQ). The formation of its divisions is under way. Once the Service is fully functional, it will be able to perform a number of functions related to the quality assurance of VET teacher training. In particular, SSEQ must take part in certification of pedagogical staff and perform institutional audits of educational institutions; provide recommendations to educational institutions on the organisation and functioning of the internal system of quality assurance of education. Its main task is not to punish the guilty, but to help teachers, institutions and management to improve the quality of their activities.
Another system of quality assurance and evaluation of teachers’ training is a self-assessment system. Namely, self-assessment procedures allow identifying the errors and problems, consider key process factors, and find the best ways to correct the situation. The teaching staff conduct effective self-assessment by comparing their own activities with the results of their colleagues from the same educational institution or a similar one.
In addition, there are certain norms concerning the educational qualification level of a junior specialist. In accordance with licensing conditions, in each institution there should be a group of specialisation assurance, which includes educators and researchers for whom the educational institution is the main work place and who are responsible for the implementation of educational curricula for individuals with educational qualification level of a junior specialist. The members of the group personally participate in educational process and meet the qualification requirements defined by these licensing terms.
At the same time, the above mentioned actions require significant improvement in order to ensure that the results are in line with the plan and expectations. It is expected that the full functioning of SSEQ shall make a contribution to this issue.
Apart from that, it is worth mentioning that the work on development of occupational standards for professions (occupations) “teacher of vocational training”, “workshop trainer (master)” and “methodologist of VET institution” has started. These occupational standards will define requirements to the competences of VET teaching staff and will become a basis for shaping their professional (occupational) qualifications.

The employability of the graduates of VETIs in Ukraine is rather high (see B.3.1). According to the data of the MoES, in the 2017/2018 academic year, 82.8% of the graduates of VET institutions were employed by occupation.
At the same time, there is the problem of inadequate compliance with the content of VET and the teaching methods to the requirements of the modern labour market and the needs of an individual. The content of VET can meet the current needs and be relevant only if it meets the VET standards (educational and occupational). The content of VET is stipulated by the requirements to the level of qualification of the workforce at a certain stage of development of the society and it is determined by VET standards. Training content in Ukraine’s VET includes humanitarian training, natural-mathematical, general-technical, occupational-theoretical and occupational-practical one. The standard contains requirements to the content of VET, educational level of the applicants, qualification level of the graduates of VETIs, as well as requirements on compulsory means of training . Starting from 2015, VET standards were partially developed using competency-based approach. Starting from 2017, they have been elaborated exclusively using competency-based approach. Presently, more than 170 standards have been developed in close cooperation with the employers. In general, they are flexible, and to a great extent meet the requirements of the labour market . The formation of VET content using competency-based approach according to the needs of the economy, occupational standards, and requirements of NQF, has been identified as one of the tasks for improving the quality of VET. This was enshrined in the Concept for implementation of state policy in VET education "Modern Occupational and Vocational Education for the Period up to 2027" , approved by the Government on June 12, 2019. At the same time, there is a problem of outdated standards that have not been reviewed for 13 years. On the other hand, the emergence of new occupations on the labour market requires to attract additional funds for the creation of new standards and modernisation of the resource base.
As a matter of fact, the employers prefer to “grow up” skilled workers in their own training centres, rather than in public VETIs. An important step for public institutions here is the training of specialists with the introduction of elements of dual education   (for more details, see par. D.1.3). In particular, it is planned to introduce DS for 254 VETIs (160 working professions, 10,000 learners, 1,000 employees) in  2019.
According to the departments of education and science of oblast state administrations (based on the focus groups conducted by the MoES in May–June 2019), the share of employment of VET graduates, who study with elements of dual training, is higher compared to the other forms of education.

The Law of Ukraine "On Education" defines education quality as "correspondence of training results with the requirements established by law, the appropriate education standard and/or an agreement on education services provision", and education activity quality as "the level of organisation, provision and implementation of education process that ensures that persons acquire quality education and meets the requirements established by law and/or an agreement on education services provision".
There are no separate definitions of quality concepts between the IVET and CVET systems in the acting law.
Standards for ensuring education quality and learning outcomes are defined in the educational standards in line with respective occupational standard, qualification characteristic, and agreement. The Law of Ukraine "On Education" defines an educational standard as requirements for the obligatory competences and training results of an education seeker at an appropriate level, the general amount of education seekers' training load etc . The VET standards are approved by the MoES in agreement with the Ministry of Social Policy, other executive bodies and the joint representative body of employers at the national level  (for the procedure for approving standards, see D.3.3).
According to the Law of Ukraine "On Vocational Education and Training" and "On Professional Development of Employees", a person's training results are evaluated by comparing actual training results data with the established requirements, in particular, those of occupational standards. In the process of evaluation, a person's capability to perform a specific professional activity is checked using various tools of assessing professional knowledge, abilities and skills necessary for granting professional qualification of a certain level.
VET institutions, education management bodies and founders organise and exercise routine, thematic, interim and final control of education seekers' knowledge, abilities and skills, and their qualification attestation. In particular, in accordance with Order of the MoES "On Introducing the 12-Score Scale of Evaluation of Vocational Training Achievements of Learners (Students) at Vocational Education and Training Institutions" , the quality of learners' training outcomes is determined using the 12-score evaluation scale for (routine, interim, final) control of learners' (students') knowledge, abilities and skills and their qualification attestation. Knowledge is mostly checked using the traditional evaluation methods, and abilities are checked based on a level of mastery of practical skills. The peculiarity of evaluating training outcomes of future qualified employees is determination of the preparedness of VET institution learners to carry out on their own the activity under the profession chosen after training. VET standards provide for interim (stage-by-stage) qualification attestation after mastering each module which criteria are determined by a VET institution in cooperation with employers. Interim (stage-by-stage) qualification attestation leads to the issue of a certificate stating a qualification category. Review of the qualification granting process is given in the next item (see D.3.3).
The signing of the Association Agreement between Ukraine and the EU tightened the requirements for VET quality assurance standards. It is important to speed up the introduction of the standards for evaluation of VET graduates professional (occupational) skills. Another problem that require urgent solution is insufficient quality of training of qualified personnel in view of its correspondence with the requirements of the modern labour market and those of a personality. This should be taken into account in the development of module- and competence-based education standards for specific vocational professions . Current evaluation system of a learner’s learning progress is sufficient, but it makes sense to transfer the function of state qualification attestation for objective evaluation of quality of training of the qualified staff to an independent commission. Also, there is a need to study the quality indicators of qualified employees’ training. In this connection, a monitoring study of correspondence of the supply of qualified workforce with the requirements of Ukraine's labour market and determination of the level of VET quality is becoming increasingly vital.

Pursuant to the Law of Ukraine “On Education”, the quality assurance system for education and VET in particular, in Ukraine includes the following three levels :
    internal (implemented by the VET school itself, self-assessment);
    external (implemented by other authorities, such as the State Service of Education Quality in Ukraine);
    quality assurance systems as regards to operations of institutions which provide external quality assurance in education (external independent audit). 
Internal and external procedures for quality assurance in education are not mutually exclusive; they function in parallel and are required, even despite the fact that the link between them is not always clearly defined. Currently, none of the systems can be considered fully functional, either on national, or on institutional levels.
Internal system for quality assurance in education on the level of the institution includes a general strategy and procedures for quality assurance in education; mechanisms to provide for academic integrity; criteria and rules for testing of learners, teachers, directors of schools; providing for the required resources to organize the education process and to administer the school; to create an inclusive educational environment; other procedures and activities. Self-assessment takes a bottom-up approach when the actors engaged manage the process itself. However, it may be subjective and requires a high level of mutual trust.
The tools and activities of the system of external quality assurance in education include standardisation; licensing of educational activities; accreditation of curricula; institutional accreditation; public accreditation of educational establishments; external independent testing of learning outcomes; institutional audit; quality monitoring for education; performance assessment of the teaching staff; certification of the teaching staff; civic control; other tools.
In December, 2017, it was established a new central executive authority for external quality assurance in education  — the State Service of Education Quality in Ukraine. It is in charge of implementing national policy in the field of education, such as on providing for quality assurance in education, providing for quality in educational activities, state controls over educational establishments on legal conformity . Currently, the process is still underway to establish branches of the SSEQ in every region in Ukraine and in the city of Kyiv . It is expected to have such structural units fully functional in all regions of Ukraine throughout 2019. Currently, the central administration of the SSEQ is under staffing process. The area of competence of the SSEQ covers establishments of pre-school, out-of-school (extra-mural), GSE and VET. The issues of the HE are covered by the National Agency for Quality Assurance in Higher Education established in 2014.
The new authority of the SSEQ is a conceptually new entity with more powers for more efficient quality control in education. The key task of the Service is not in punishing offenders, but providing support to the school, to administration, and to teachers for higher quality of their activities and higher quality in learning outcomes for students . The SSEQ and its territorial branches shall issue recommendations on organisation of internal quality assurance system in education, run institutional audit, approve curricula for schools on the basis of the expert evaluation findings (except for typical and the ones developed on the basis of the typical curricula), and actively engage in certification of the teaching staff. In addition, the SSEQ shall accredit civic expert associations and other legal entities administering independent quality assessment in education and educational activities of schools; conduct quality monitoring of educational activities and quality in education, exercise control, as commissioned by the MoES of Ukraine, over conformity with requirements in organising external independent testing, etc. 
At the same time, it is the MoES that is in charge of adopting procedures, types, and forms of quality monitoring in education, as well as of accrediting procedures of curricula, other activities related to quality control in education. In addition, pursuant to the Law of Ukraine “On Professional (Vocational) Education", and “On Education”, employers, their organisations, and associations shall be engaged into exercise of civic quality control for VET. 
After the last TRP round, there was introduced a new tool for external assessment SSEQ such as the institutional audit of schools. It is a comprehensive external inspection and assessment of educational and managerial processes of an educational establishment, as well as of its internal system of quality assurance in education . Currently, it is only provided for the area of GSE (1 in 10 years, as planned, starting from January, 1, 2020, and from January, 1, 2019 — pilot projects). However, the ground is being prepared for running an institutional audit also for VET. There are the following key differences between the institutional audit and performance assessment: (1) institutional audit is done by an authority independent from schools and their founders (SSEQ); (2) the goal of institutional audit is not to take record of available issues but support in identifying solutions thereto;(2) unlike performance assessment, the law provides for liability of the school director for breaking the law, as well as the need to determine specific timelines to eliminate shortcomings and violations; (3) unified requirements to educational establishments of all types of ownership; (3) recognition of findings of civic accreditation as the planned institutional audit.
Since learners can obtain complete secondary education in VET schools, activities of the Ukrainian Centre for Educational Quality Assessment (established in 2006) shall be mentioned, too. It is a subunit of the MoES of Ukraine dealing with the development and piloting of models for external independent testing of educational achievements of learners from the general educational establishments in order to provide for equal access to HE . 
Quality assurance for qualifications. Conceptual basis for qualification systems in Ukraine stipulated by the 2017 Law of Ukraine “On Education”. In Ukraine, there are two types of qualifications : educational  and professional  qualification. One of the NSQ goals is to provide for conformity between the educational and professional qualifications, as well as for their conformity with the needs of labour market, creation of efficient mechanisms for recognition of qualifications acquired by a person life-long.
The main collegiate body to enforce national policy in the field of qualifications is the National Agency for Qualifications established in December, 2018 . Until this time, Ukraine has not had any single institution that would implement national policy on qualifications. This task was dispersed among different agencies and social partners. Thus, it largely slows down and complicates decision making. Currently, the work is underway to compose the membership. After the task is completed, the authority would be able to function full-fledged . In the first place, the agency will have to focus on establishing the NSQ, and clear links and correlation between the learning outcomes and the respective educational degrees, qualifications, and labour market (single clear approaches to degrees of education and qualifications in Ukraine). The tasks of having the NSQ include the creation of a mechanism to establish qualification centres ,  . The new institution will facilitate the development of the mechanism to recognize non-formal and informal education, and assignment, therefore, partial professional qualifications. The unified system would also allow for simplification of the process of mutual recognition of professional qualifications between Ukraine, EU, and other states without excessive bureaucracy (see also Section D.3.6). 
The Labour Code of Ukraine (Article 96) and the Law of Ukraine “On Remuneration of Labour” (Article 6) stipulate that requirements to qualifying and special knowledge of the staff, their tasks, duties, and specialization shall be defined by professional standards or job descriptions / qualification characteristics of the staff. Professional standards are an important tool to provide for quality of qualifications and efficient use of human resources. Ukraine launched the efforts to develop professional standards. It was approved the Procedures for Development and Adoption of Professional Standards (resolution of the Cabinet of Ministers of Ukraine dated 31.05.2017 No 373) and Methods Guides for Development of Professional Standards (decree of the MoSP of Ukraine dated 22.01.2018 No 74). Professional standards contribute to better quality of qualifications in Ukraine and aligning the NSQ with EU requirements, improvement of educational standards, bringing into conformity the content for training the staff with the needs of employers, confirmation of outcomes of professional non-formal training, enhancing quality of the workforce. As of 01.05.2019, it was adopted 9 professional standards, while 117 applications from authors were submitted and posted on the website of the MoSP to draft the standards. At the same time, the pace of adopting professional standards are still slow, mostly due to insufficient funding.
VET standards include interim (stage by stage) qualification attestation, which criteria shall be determined by the VET school along with employers. Interim (stage by stage) qualification attestation implies issuing a certificate report stating the qualification category. Employers are engaged in thematic, output control of skills of learners and are directly taking part in qualification performance assessment. At the same time, there is still insufficient distribution of responsibilities of different institutions. While the NAQ has not yet fully started functioning, the concept is lacking for institutional structure for independent testing of competencies and for testing the results of non-formal and informal education (training). The list of qualification test works is developed by VET schools, by companies, establishments, and organisations in line with the requirements of curriculum and the standard of VET. An important role in the processes of competency assessment belongs to regional sectoral entities and institutions of employers and social partners that usually have different responsible functions in the processes of competency assessment. Criteria for qualification performance assessment of graduates are developed by regional sectoral organisations of employers jointly with the VET school, and are using a competency-based approach in line with the requirements of VET standard, and shall be agreed with regional education management authorities

. 

In the assessment process, the ability of a person to perform certain type of professional activities by using various testing tools of professional knowledge, skills, and abilities needed for the award of professional qualification of certain category, is tested. During the final testing, special features of each qualification, are taken into account (see section D.3.2) . 
While the NAQ has not yet fully started its activities, there are still unresolved issues of NSQ development. In particular, they include: international recognition of qualifications acquired in Ukraine; capacity building of the new institutions required for recognition of professional qualifications; low pace in drafting professional standards and insufficient role of professional associations in the development and assessment of qualifications, the lack of mechanisms for independent assessment of VET graduates professional competence, as well as lack of standards for this assessment. Upon the whole, the problem of conformity and assessment of qualifications is getting vital. This is due to the fact that under market conditions productivity of each entity and economy at large directly depend on the productivity of each employee. Therefore, jobs are distributed by expert levels, while the qualification conformity acquires even more importance. 
 

VET programmes designing and updating process. Education programmes  are designed by VET institutions, scientific institutions and other educational entities, and are approved according to the Law “On Professional (Vocational) Education". Today, typical education programmes are designed and approved as part of the VET standards. They contain requirements for persons eligible for a programme; list of education components and their logical order; general amount of training load and expected training results. Also, a programme provides optional education components for students.
Education and training programmes are designed basing on VET standards (VETSs). The VETSs is one of the documents that govern the VET education activities of training qualified personnel. Designing of VETSs can be initiated by central and regional authorities, local self-government bodies, educational institutions, employers, scientific institutions, scientific methodology development institutions, civic organisations, natural and legal persons effecting educational activities, and other stakeholders.
VETSs are developed in the following order : (1) Employers, educational institutions, and other stakeholders submit to the MoES proposals on VETSs designing for specific vocational professions (occupations). (2) The Vocational Education Directorate of the MoES, based on the aforesaid proposals, draws up a list of vocational occupations for which VETSs are to be designed. (3) The Vocational Education Directorate of the MoES and the State Scientific Institution "Institute of Education Content Modernisation" of the MoES (hereinafter — IECM) determine the composition of working groups based on proposals put forward by departments (offices) responsible for education and science at regional state administrations and Kyiv city state administration, employers, and other stakeholders. (4) Organisation and coordination of working groups developing draft VETSs, is assigned to the appropriate IECM division. (5) Development of draft VETSs is effected using a competence-based approach, and modular content. (6) The draft VETSs are presented on the IECM website for public discussion for two weeks. Then proposals and remarks are considered by the working groups. (7) The draft VETSs are approved by the Director General of the VET Directorate of the MoES of Ukraine, deputy Minister of Education and Science of Ukraine, the joint representative body of employer unions at the national level, the MoSP of Ukraine. (8) Then VETSs are approved by Decrees of the MoES of Ukraine providing for possible piloting of the VETS over the next few years.

The VETSs are to be updated periodically, taking account of changes in occupational standards, employers' proposals, technology changes in production or the service sector, use of new equipment or materials. A VETS is updated by introducing appropriate changes in it, with initiators of introduction of the changes, justification for introducing the changes and date of introduction of the changes being stated. In case of substantial technology changes in production or the service sector or use of new equipment or materials, a new edition of VETS is approved.
If a new standard is approved, a new education programme is developed. Training programmes for specific subjects can be developed and updated by teachers more often, in line with changes in technologies, curricular and education process scheduling. Today, training programmes and education programmes are developed in VET using a competence and module-based approach, so that students can acquire a qualification after learning a module. Such development of programmes causes some inconsistencies and difficulties, since there's no single approach for designing programmes based on module structure.
In designing programmes which contain modules and are learning-outcomes-based, the most significant complications occur while defining training results that meet the market requirements. If a VETS is designed in line with the relevant occupational standard it ensures that training results meet the labour market requirements.
Implemented policies. According to the CMU Order "The Government's Priority Action Plan for 2018" , the work has been carried out of updating the content and improving the quality of the VETSs based on introduction in the education process of a new generation of standards established on competence-based approach (annually 15 VETSs are approved of by MoES orders), improving the quality of vocational training of all qualified workers of all qualification levels and ensuring their mobility in the labour market.

Starting from 2015, VETSs were designed partly using a competence-based approach, and starting from 2017 using a competence-based approach only. In fact, in 2017–2019, 170 VET standards were designed and approved . These standards are designed in cooperation with employers, are flexible and better meet the requirements of the labour market and of VET students. At the same time, some VETSs were designed back in 2006 and haven't been revised for as many as 13 years (they require revision). There are just few such standards, but they are based on old methodologies and do not meet the present-day labour market requirements. 
At the same time, 9 occupational standards have been approved and 117 more have been submitted for approval (see B.1.7).
Planned VET content modernisation policies. It is planned to approve the draft decree of the MoES on Methodological recommendations on designing vocational education standards based on competence-based approach. The Methodology was developed in order to set common approaches to standards’ designing; to shape VETSs content in line with training outcomes and education levels (shifting to learning-outcomes-based content). It was also aimed for recognising qualifications obtained in VET (confirmed by the relevant documents) and ensuring that VET graduates will be able to adapt to modern socioeconomic conditions. Besides, the draft Methodology for designing VET programmes has been developed. Also, VET institutions and VET students have been involving more in VET with elements of the dual education. Under the dual VET all educational programmes are designed in cooperation with employers, therefore, the content of VET is constantly updated in line with the requirements of the labour market and new technologies. Another area is the work on designing the standard of vocational secondary education, which should be implemented by 2027.
 

Today, the process of developing the new innovative NQF is going on with the assistance of the ETF and stakeholders. Also, competences in VET curricula are being transformed in order to facilitate professional career development and self-realisation, in line with the key competences of the EU.
A list and content of the key VET competences in Ukraine are formed:
    according to the Law of Ukraine "On Education". The Law identified the following key competences: fluency in the state language, ability to communicate in the native language (if different from the state one), as well as foreign ones; mathematical competence; competences in the area of natural sciences and technologies; innovativeness; environmental competence; information and communication competence; life-long learning; civic and social competences related to the ideas of democracy, justice, equality, human rights, well-being and healthy lifestyle, being aware of equal rights and opportunities; cultural competence; entrepreneurship and financial literacy;
    according to the Decree of the CMU No. 1341 of 23 November 2011 "On Approving the National Qualifications Framework";
    taking account of the EU reference framework on updated key competences approved on 21 May 2018 by the European Parliament and the Council of Europe that identifies the following key competences: literacy; language competence; science, technology, engineering and mathematical competence; digital competence; personal, social and learning competence; citizenship; entrepreneurship; cultural awareness and expression.

Implemented policies: One of the key steps taken since the last TRP round is the establishment of the SSEQ and the NAQ (see par. D.3.3). 
SSEQ is a new central executive authority in charge of external quality assurance in education and educational activities, and exercising of state legal conformity control of educational institutions. Currently, regional branches of the SSEQ are being created.
As of today, the NAQ has been established  and its membership approved , the NAQ Head and his deputies were elected   . Until now, Ukraine has not had any single institution to enforce state policy on qualifications. It will be a platform to coin the rules for developing and updating professional standards. Also, it will help the MoES to more dynamically adapt educational standards to labour market requirements. The NAQ consists of 12 persons, representatives of MoES, MoSP, MoEDT, employers, and trade unions. They are appointed for 3 years, with possible extension for 2 terms. 
The MoES of Ukraine developed a draft Law “On National Qualifications Framework” that suggests to legally stipulate the establishment of qualification centres as subjects authorized to assess and recognize learning outcomes (such as those achieved in non-formal or informal education), award of and/or confirmation of respective professional qualifications of individuals.
Planned policies: It is expected that in 2019, SSEQ’s structural units shall become operational in all regions of Ukraine. Moreover, all necessary procedures in order to register the NAQ, establish its secretariat, working bodies, etc., will be implemented in the near future. It is planned that the secretariat will include about 60 persons who will provide for the agency’s operations. After these steps, NAQ operation can be launched full-scale. NAQ will become the main collegiate authority to implement national qualifications’ policy.
To eliminate any shortcomings stated in the answers to previous questions, NAQ will focus on the development of the NSQ. In particular, it will develop clear links, and correlation between the learning outcomes according to the respective education levels, qualifications, and labour market. Also, the mechanism for recognition of non-formal and informal education, and mutual recognition of professional qualifications between Ukraine and other countries, will be simplified. Activities of the NAQ will also address the problem of monitoring and evaluation of the national qualifications policy’s efficiency; develop professional standards; develop legal framework for operations of qualification centres; and forecast the needs of labour market for qualifications. It is expected to foster the long-awaited adoption of the draft Law of Ukraine “On National Qualifications Framework”, provided the NAQ gets actively engaged.
It must be mentioned that certain provisions on monitoring of VET quality are included in the draft Law “On Professional (Vocational) Education" (Article 44) . In case it is adopted, it would introduce a legal definition of the concept of “VET quality monitoring” , as well as an improved mechanism for its practical application.
 

The accountability, leadership and control mechanisms for VET are described in paragraph A.2.2. As a result of the decentralisation process, responsibility and governance are distributed among different actors at the national, regional (or local) levels and at the institution’s level. At the sectoral level of governance, as such, it is not implemented, it refers to cooperation and advisory functions (sectoral professional associations of employers).
National level. The activities of the key Ministries involved in the governance of VET system at the national level (MoES, MoSP, MoF, MoEDT and other line Ministries) are coordinated by the CMU.
The CMU approves the strategy of VET development and ensures the implementation of state policy in the area of VET (state targeted programs of VET). It approves licensing conditions for conduction of educational activities; state priorities for staff training; a list of fields of knowledge and specialties for the training of VET specialists; list of positions of pedagogical workers. The CMU determines the procedure for the formation and allocation of educational subventions between the budgets and the procedure for the allocation of public funds for VET.
The MoES, as the main body in the area of the formation and implementation of state policy on VET, approves educational standards, the procedure for monitoring the quality of education and audit of institutions, licensing educational activities of institutions, approves the form of educational documents, standard admission requirements and typical curricula. VET functions falls within the competence of the Directorate of Vocational Education.

Other bodies. The MoSP participates in the development of legislation for VET sector, develops the National Classifier of Ukraine DK 003:2010 „Classifier of Professions” and approves the occupational standards and qualification characteristics of professions (occupations). 
State Employment Service (SES) is subordinated to the MoSP and provides a wide range of employment-targeted services to the population, including organisation of vocational training for unemployed. It is engaged also in the short-term labour market forecast implemented particularly through employers’ surveys. In September 2017, the MoSP established a multi-stakeholder working group, which will be in charge of skills anticipation and labour market forecasting.
The MoEDT calculates the medium-term needs of the labour market in specialists and labour personnel by occupational groups. MoF is responsible for financing of VET institutions. 
The newly created State Service of Education Quality of Ukraine is controlled by the CMU via the Minister of Education and Science. It implements state policy in the area of quality assurance of education, as well as makes suggestions on state policy in this area. 
National Qualification Commission (NQC) is not clearly subordinated, it is a permanent collegiate body authorized to implement state policy in the area of qualifications . This institution (after the formation of its staff), among other things, will coordinate the development of occupational and evaluation standards and will form the requirements for procedures for attribution of professional qualifications and recognising the results of non-formal and informal learning.
Regional level. The authority and responsibility for the VET at the regional level of governance are assigned to the Departments of Education and Science of RSA, where in its structure there is a section, which implements the state policy in the area of VET. Despite the fact that these departments are the part of the structure of RSA, in practice, they have a double subordination: to the MoES and RSA. Their main functions include control of the activity of VET. Regardless of the forms of ownership and subordination to comply with the current legislation on VET, updating the content of education and management activities, compliance with the requirements of the State VET standards; the general governance of the activities of VET state-owned institutions; organisation of occupational development of workers; conduction of licensing and attestation expertise of VET institutions, control over the implementation by the heads of VET institutions in the area of their contractual duties. In addition, the oblast, Kyiv city state administrations are being assigned with the functions of arrangement of activities of regional VET councils, operational management of the property of educational institutions, the formation and placement of regional orders, as well as appointment to the positions of directors of educational institutions, whose funding is done from their budgets. At the same time, the City Councils of the cities of oblast significance-oblast centres have transferred only separate functions on human resource issues.
Today, regional VET councils are created in all regions. They are advisory and consultative bodies formed by regional state administrations for the formation and implementation of regional policy in the area of VET. The activities of the regional councils are directed, first of all, at the formation of proposals for the modification of VET institutions network, the amount of their funding, the directions and the scope of training, as well as the approval of the regional order. At the same time, the effectiveness of such councils is currently low.
Level of institution. State VET institutions are monitored by the Departments of Education and Science of RSA. 
VET institutions’ mandate includes the arrangement of educational process, the choice of forms and methods of teaching; educational and production and financial and economic activity; certification of pedagogical workers; development of working curricula and programs (based on typical ones); together with the Departments of Education and Science of RSA formation of the plans for admission of learners taking into account state  and regional orders; provision of productive training of learners; quality assurance of education; definition of structure and staff, etc. In the conditions of decentralisation, competition between VET institutions is increasing. They need to prove their significance to the region and its development. VET institution is governed by its head (director). Pedagogical council is a key collegial governance body of the VET institution with an advisory role.

External control. The external control over the targeted and effective use of budget funds in the area of VET is done by the bodies conducting the external audit (State Audit Service of Ukraine and the Accounting Chamber of Ukraine). They can audit at all three levels mentioned above. 
The external monitoring of the quality of education in VET institutions should be the obligation of SSEQ of Ukraine established in 2017, which is not yet fully operational (see D.3.3).
Problems: Lack of autonomy of VET institutions, which leads to the inability to fully timely respond to employers’ and labour market demands. The current mechanism of accountability, leadership and control in VET system presently lacks systems for monitoring the effectiveness of management decisions and their impact on the quality of educational services at all levels. It is necessary to switch from operational to program-targeted management. Another problem is low efficiency of activity of regional VET councils.
 

Implemented policies. Since the last round of the TRP, MoES has taken actions to optimise the network of VET institutions. The analysis was conducted taking into account financial and economic efficiency, improving the quality of training. At the same time, the vision of each region is taken into account in relation to the needs of the economy and the labour market, aspects of governance and financing in a context of decentralisation. During the years of 2017–2018, 50 VET institutions were reorganised by the way of joining them to ones that are more powerful. In addition, a decision was made to separate 7 VET institutions from the structure of the institutions of HE. 
In order to resolve the issues of financing of VET institutions in the conditions of decentralisation described in the clause E.1.1, the MoES has undertaken a number of actions, according to which the CMU in 2016 allocated stabilisation grants in the amount of UAH 598 m. Also, to address this issue there was a change in financing at the regional level. In particular, since 2017, the funding at the oblast (region) level is performed from oblast budgets, budgets of cities of oblast significance -oblast centres (regional) centres and the budget of city of Kyiv.
Work is underway on transfer from the state to the communal ownership of state VET institutions subordinated to MoES, according to the Law of Ukraine "On Transfer of Facilities of State and Communal Property Rights". As of 01.01.2019, 76 institutions were agreed to be transferred from the state to the communal property, including 4 institutions in 2017 (only Kyiv oblast), 30 institutions in 2018 (3 — Zhytomyr oblast, 5 — Ivano-Frankivsk oblast, 8 in Kyiv, 3 in Kirovograd oblast, 3 in Lviv oblast and 6 in Transcarpathian oblast, 2 — Ternopil oblast), and 42 institutions in 2019 (1 – Kirovohrad oblast, 12 Lviv oblast, 3 – Chernihiv oblast, 2 – Odesa oblast, 1 – Kherson oblast, 13 – Dnipropetrovsk oblast, 3 – Chernivtsi oblast, 3 – Cherkasy oblast). In total, 660 institutions are to be transferred. Documents from 244 institutions have been received by MoES. Currently, packages of documents of 31 institutions have been received by to the MoEDT.
Taking into account a complicated and long-term procedure for the transfer of property of institutions, the CMU adopted an order dated October 25, 2017, No. 831-r "Issues of governance of state institutions of vocational education and training subordinated to the MoES", which envisions the transfer of certain functions to the governance of the oblast state administrations and city councils of cities of oblast significance (see detail clause E.1.2) . The introduction of these changes allowed to improve the efficiency of the institutional and governance arrangements of VET system and to govern expeditiously the institutions at the oblast level and in regional centres. In particular, the regional level was assigned with functions for the formation and placement of a regional order for the training of skilled workers and junior specialists, operational management of property. 
The MoES of Ukraine issued a Decree dated July, 17, 2019, No. 998 “On Approval of Procedures for Conducting the Competition for the Position of a director of the state institution of vocational education and training” registered at the Ministry of Justice of Ukraine as of August, 14, 2019, No. 922/33893. The Procedures regulate aspects related to the conduct of competition for a position of a director of the state VET institution.
In addition, in order to resolve the problems described in the previous two questions, at the end of 2017, the amendments to the Budget Code of Ukraine were introduced, which enabled to make expenditures on VET in terms of a regional order. Methodological Recommendations on the Formation of a Regional Order for the Training of Specialists and Workers was approved (2016) .
Today, in all regions, Regional VET Councils were created and started their work in accordance with the above-mentioned CMU resolution. Their activities are assigned to oblast and Kyiv city state administration. The regional councils include representatives of local authorities and local self-government bodies, employers' organisations, including industry associations of employers and professional associations, educational institutions. Considering the low efficiency of such councils, as of April 2019, the MoES has elaborated a draft resolution of the CMU "On Approval of the Regulation on VET Regional Council"  .
The draft law "On VET" envisions an increase in the autonomy of VET providers. It also envisaged autonomy, independence and responsibility of VET institutions in the decision-making on the development of academic freedoms, the organisation of educational process, the content of educational activities, internal governance, economic and other activities, self-recruitment and staffing. In addition, it is planned to create a modern educational environment that will be comfortable for people with special educational needs .
Planned policies. The key priority of the Concept for the implementation of state policy in the area of VET for the period up to 2027 (2019 ) is the reformation of the governance of VET system and its structure. It envisions:
- Distribution of powers of governance and financing in the area of VET, in particular, the transfer of authority  to oblast level in terms of the forecast of labour market needs in occupational qualifications, the formation of a regional training order on the basis of a regular analysis of the labour market; 
- Implementation by 2024 of the final transition to the financing of VET institutions, which are located on the territory of cities of oblast significance — regional centres, from oblast budgets;
- Development and approval of the template of a Regulation for VET regional council;
- Expansion of the autonomy of VET institutions, in particular, the development and implementation of its own educational curricula, the acquisition of the status of a non-profit organisation with the preservation of tax benefits and obtaining financial autonomy;
- Optimisation of the network of VET institutions by the way of creation of centres of excellence, taking into account the inclusive education.
 

The analysis of modern trends of the participation of non-state actors in VET governance and formation of relevant policy in this field showed the absence of an integral well-arranged system of collaboration, with clear division of functions and obligations. Though the dialogue with this sector has lasted long enough, there is neither integral system nor long-term model of development with precise and transparent implementation mechanism, which is still a key issue therein. 
There is a formal social partnership (based on agreements, regional and specialized councils) and non-formal partnership (within certain projects). In particular, all regions have now created and launched regional VET councils, comprising representatives of local authorities, employer organisations, including sectorial associations of employers’ organisations, professional associations, and educational institutions. They are aimed at submitting proposals to change the network of VET institutions, the amount of their funding, directions and volumes of workers training, and the approval of regional order.
The decentralisation of VET system governance and financing carried out in Ukraine has enhanced the development of official social partnership. 
Before 2016, non-state actors participated in VET in a limited number of activities, in particular:
-    WBL and in-company internship for VET students ;
-    VET quality assurance by the participation in the approval of the amendments to VET standards ;
-    participation in the formation of state order for the training workers ; 
-    preparation of law proposals, participation in specialised projects, promotion of reforms as regards to recognition of the results of formal and non-formal education, etc.
Since 2016, the implementation of the decentralisation policy of the VET system governance resulted in additional forms of participation of non-state actors, in particular:
-    participation in VET quality assurance by developing professional standards ; 
-    participation of the non-state actors as representatives of employers and Trade Unions in the regional VET councils  in order to form and place regional order for training specialists and qualified workers ;
-    more active promotion of DVT implementation in VET.
Despite the documents on the cooperation between the parties (see E 2.2.) approved by now, the matter of liabilities for the obligations is still not solved due to the lack of precise and well-regulated collaboration procedure. In general, even provisions agreed upon still need to be implemented systematically.

So far, there is no policy of supporting the participation of non-state actors. There are just some ways of encouraging companies (in particular, to hire unemployed VET graduates, by providing compensation to the employers who hire citizens ).
Involving non-state actors in the development and implementation of VET state standards is an important component of their participation in VET development . It is important to pay attention to the law “On Professional (Vocational) Education”, containing a great number of references to the participation of employers in different VET fields: ensuring the participation of employers in the work of regional VET councils (Article 1), ensuring practical training of VET learners at enterprises, institutions, and organisations (Article 10), encouraging practical guides for VET learners (Article 47) .  The private sector (of employers) participating in professional training by dual form of education is an important step in this direction . At the same time, regardless of the fact that some individual steps have been taken in this field, it is obvious that there is no targeted state policy in this respect aimed at supporting the collaboration with non-state actors.
The PPP in education and science is implemented on the basis of agreements between public authorities and private partners concluded in accordance with the procedure set up by the CMU . On 5th November, 2018 the Federation of Employers of Ukraine and the MoES of Ukraine signed the Memorandum on Cooperation with the purpose of consolidation of efforts in order to develop VET and provide highly skilled professionals for the labour market, and to develop the PPP. The tendency is to raise the government’s interest to deeper collaboration with employers in respect of creating more efficient system of VET popularisation through relevant changes of legislation  .
Legal basis for the PPP in education and science is stated in the Constitution of Ukraine, the Civil Code of Ukraine, the Commercial Code of Ukraine, the Laws of Ukraine "On Private-Public Partnership” and “On Education”, other laws and international agreements of Ukraine. Today, the legislation of Ukraine does not allow the PPP mechanism to be used actually and sufficiently for the VET development. It is necessary that significant articles concerning VET are to be expanded in the relevant laws on education. According to the Law of Ukraine “On Education” the PPP in the field of education and science should include: joint financing of educational institutions, bases for practical training, innovation centres and business incubators (based on the existing education institutions); development of modern technologies of education; professional training; implementing joint programmes of financing professional training, etc.; policies of social protection of teachers and students. The actions require active participation of the both parties.
The PPP in the VET field and interconnection with the labour market was determined to be one of the three main priorities, under the Concept of Implementation of National Policy in the Field of Vocational Education and Training “Modern Vocational Education and Training” untill 2027 (2019) .

The modern system of VET funding reflects general process of decentralisation which began in 2014 . The VET budget system is formed according to the Law of Ukraine “On State Budget of Ukraine”, the Budget Code of Ukraine, Mid-term Budget Declaration (main directions of the budget policy for three years), regulations of the CMU, decisions of the regional councils, etc. The main source of the VET funding is local budgets (see p. D 3.2).
On the national level (State Budget) the MoES and the Ministry of Finance of Ukraine are involved to VET budget formation and execution. 
On the sub-national (regional) level (regional budgets, budgets of cities of oblast significance - regional centres, budget of the city of Kyiv): Departments (offices) of education and science and Financial Department of the corresponding Regional and City State Administrations; VET institutions. 
Apart from this, each VET institution has its own budget.
Since the last round of TRP the mid-term budget planning has been introduced in Ukraine. At present the budget process starts from drafting and approving a Budget Declaration, containing key macroeconomic forecast indicators and budget thresholds for three years. It is fundamental for drafting budgets (both State and local ones). The draft of the State Budget is approved by the Verkhovna Rada of Ukraine, the drafts of local budgets are approved by region and city councils. Both state and local budgets can be amended (corrected) during the budget year (the procedure set up by the Budget Code). After the budget year is over a report on the relevant budget execution is prepared. 
State and local budgets contain VET expenditure items, which correspond to budget programmes. Budget planning is carried out using the programme-target method . At each stage of the budget process the stakeholders evaluate the efficiency of budget programmes within their authorities, which means monitoring and control over the target and efficient use of budget funds. Monitoring is done by those who execute programmes (authorities mentioned above) as well as bodies who are in charge of external audit (State Audit Service of Ukraine and Accounting Chamber of Ukraine). 
National level: Amount of transfers from the State Budget to local budgets for VET institutions is calculated by MoES with or without a request to the Department of Education and Science of the Region State Administration and is annually approved by the Law on State Budget of Ukraine (individually for each local budget, obtaining such a transfer from the State Budget).
Sub-national (regional level): Planned expenditures of regional budget are calculated based on minimal salary, salaries of employees and the tariff rank of the Unified tariff network, minimum subsistence level and corresponding inflation rate (co-efficient to which the utility services and electricity rates may increase).
Distribution of funds among VET institutions of the region is made based on the number of students and approved regional order (expenditures per 1 student).
At the same time, VET institutions annually prepare information on their budget needs for the next year (necessary expenditures) taking into account the subsistence level, minimal salary, employee’s salaries, number of employees, area and sanitary state of premises, availability of workshops, equipment, type of institution, number of students and groups, time of work, prices for food, amount of scholarship, tariffs for utility services, social standards, needs for modernisation etc.
A shortcoming of the process is that capital expenditures are planned according to the available financial resources of local budgets, which does not allow to modernise properly facilities and appliances of a VET institution. There is also a general problem of under-funding. Local budgets (as the main source of funding) can cover only 60% of financial needs of VET institutions in the regions . VET institutions located outside cities of oblast significance – oblast centres are found in a worse condition, since their available financial resources cover only the 45% of their needs.  
 

Implemented policies: In the end of 2017 the Articles 89 and 90 of the Budget Code of Ukraine were amended. It enabled to spend funds on VET under conditions of regional order, which helped to determine the strategies and tactics of regional VET systems development.
In order to raise the efficiency of budget implementation and budget funds use, the programme-target method was introduced. Its objective is to set a link between the provision of budget funds and outcomes of their use. To evaluate budget programme effectiveness the reports on the implementation of budget programme passports are prepared. According to the results of such evaluation the budget funds distributors take measures to raise the efficiency of budget costs.  Moreover, the results of evaluation can be used as a ground for approving budget amendments for the budget year and two more years following the budget year, including changes in the duration of the budget programme.
In the beginning of 2019, after the amendments to the Budget Code of Ukraine  were approved, the mid-term budget planning was launched . Its objective is to shift the focus from the control of spending to strategic and budget planning, implementation of a new three-year Budget Declaration. It is expected that the VET reform priorities which are currently implemented on the national level will be more synchronised with the priorities of regions in this field. On the regional level it will enable regional mid-term programmes of economic and social development to be in line with VET budget programmes.
Planned policies: One of the priorities of the Concept of VET National Policy implementation “Modern Vocational Educational and Training” for the period until 2027”  is the reform of VET funding system .  In order to improve the process of expenditure planning, as well as formation and implementation of the budget it is planned to fund VET on the basis of calculation of the costs for training highly qualified workers taking into account the complexity of occupation and qualification levels.
 

Since 2016, as part of system the overall decentralisation process, the financing of the VET has been transferred from the national to the local level. In 2016, the financing of VET institutions located in cities of regional subordination (including cities — regional centres) was made from the budgets of these cities, and other VET institutions were financed from regional budgets and the budget of city of Kyiv. In 2017, due to significant underfunding the budgets of cities of oblast significance were excluded from the chain of VET financing .
Since 2017 and up to the present, expenditures on VET are primarily covered from regional budgets, budgets of regional centres and the budget of the city of Kyiv . Other sources are indicated below.
The main sources of VET funding:
–    State budget: educational subvention for full completion of GSE by learners; funding per the state order for professions of national importance; subvention for the modernisation and upgrade of the material and technical base of VET; implementation of methodological and logistical support of educational institutions’ activities (e.g., running the WORLDSKILLS UKRAINE contest, piloting career guidance testing for school students).
–    Local Budgets: expenditures on maintenance of VET institutions, financing of regional order for training of workforce and young specialists.
–    Earnings from payments for the services provided by VET institutions: payment for services according to their main and auxiliary activity (from individuals, legal entities, and also from Ministries, and other agencies ), property lease earnings; earnings from property sales (except immovable property).
–    Other sources: charitable contributions, grants and gifts; funds of enterprises, organisations, individuals and budget institutions allocated for the implementation of target activities (namely, regional programs); earnings from interest rate on temporary deposits of uncommitted budget funds received from provision of paid services.
The latter two sources are attributed to own earnings of VET institutions. They account from 2% to 12% (out of total funding). Own earnings also include 50% from payroll for vocational training and internship of VET learners. According to the acting legislation, institutions independently determine the list of paid educational and other services. The main sources of VET funding at the level of VET institutions are presented in Diagram 2 in the report in PDF p.101.

Privately owned VET institutions are maintained, at most, for the account of own funds of their founders.
According to the data of SSSU, the share of VET funding for the account of public sector in 2017 reached 91.3% (whereof 2.2% — from the State Budget, and 81.1% — from local budgets). The share of funding from private sector accounted for 8.7% (whereof 6.7% — from households, and 2.0% — from private companies and corporations) . For comparison, in 2016, the figures for shares of the public and private sectors amounted to 87.6% and 12.4% respectively, and in 2015 — 86.4% and 13.6% respectively. 

Problems: In practice, the abovementioned funding model for VET using several sources and recommended by the National Education Development Strategy as a combination of subsidies, loans and consumer contributions for training, turned out to be insufficient . It does not guarantee sufficient funds to ensure the high quality of education, nor the necessary investment into upgrading of VET institutions. Own earnings of VET institutions remain underdeveloped, and averagely range from 2% to 12% of the total funding depending on the region . Grants from business, local administrations, and other donors are allocated only occasionally and selectively. The largest share comes from public funds (state and local budgets), and is almost entirely spent on current expenditures. According to the Ministry of Finance, during the last three years, the capital expenditures of VET sector in Ukraine, although increasing in absolute terms, were only from 1% to 2% of the total public spending. Another problem is the reluctance of the municipal authorities of cities of oblast significance and regional centres to finance VET institutions located in their territory, from their budgets (this is implemented through reduction of regional orders). VET institutions require more autonomy and opportunities to expand their own sources of revenues. Funding should be multi-channel, that is, from several sources, including subventions allocated from the State Budget of Ukraine, and a larger share of financing from private sources.

Planned policies: During the second phase (in 2022–2024) of the implementation of the Concept for national VET policy implementation “Modern VET” for the period up to 2027 (hereinafter — Concept), it is planned to transfer funding of VET institutions located in the regional centres from city budgets to regional budgets.
Also, as part of reforming the system of VET financing, the Concept envisions the following:
–    Submitting amendments to legislation as to provision of discounts to employers who transfer equipment to VET institutions and allocate funding to workforce training;
–    Creation of new opportunities for the expansion of public-private and social partnership on the basis of co-financing and joint management of VET institutions.
 

According to the MoES the state and local budget expenditures for VET are spent primarily on current needs, including wages (68.2 % of the total), food (3.5 %), utility services (11.8%), scholarship (13%), and other (3.5%). According to the Ministry of Finance over the past three years capital expenditures of the VET sector in Ukraine constituted only from 1% to 2% of the total public expenditures (general and special funds) .
On the national level: Allocation of the State budget subventions for each region is approved annually in the State Budget Law . In particular, in 2018 the largest subventions for modernisation of material and technical base of VET institutions were transferred to Kyiv region (UAH 12.9 m), and to Vinnytsia, Dnipropetrovsk, Lviv, Mykolaiv, Kharkiv regions (UAH 5.4 m for every region). The level of use of these subventions in 2018 was lower than in 2016-2017 and the allocation between regions was uneven – from 31% to 100%. Distribution of the education subvention from the State budget to pay salaries to teaching staff (who teach subjects foreseen in the State standard of basic and complete GSE) is made proportionally to the number of GSE learners in such VET institutions. 
On the regional level funds for VET are allocated according to the number of students and approved regional order. On the institutional level: payment for services (provided by VET institutions) and 50% of students’ wages earned during their WBL and in-company internship are transferred on the VET institution’s account. These funds can be further distributed for common needs, modernisation of education process and material base, social protection of students etc.
The shift of VET funding to the local level caused a problem of underfunding in many regions. The financial decentralisation gave increase of local resources, but according to the MoES these funds can cover only near 60% of VET financial needs in regions. For VET institutions located outside regional centres the funding is less (current funding covers only 45% of their needs) . 
There is also a problem of inefficient use of budget funds. As of December 1, 2018 near UAH 12 bn were preserved on bank deposits. UAH 6 bn was the regional budget funds . As of October 31, 2018 the least share of budget execution as to the expenditures on VET was in Donetsk (42%), Ivano-Frankivsk (48%), Odessa (64%), Lviv (65%) regions. Other regions and Kyiv city spent 69-79% of the planned expenditures on VET.
One more issue is that the VET institutions in cities of oblast significance-regional centres are funded from the city budgets and are not subordinated to the Departments of Education and Science of the regional administrations. The local authorities of regional centres allocate insufficient amount for VET development in their territory .
Summing up, there is a problem of VET sector underfunding, which reduces possibility to modernize VET institutions in order to train working skills required today. Spending on VET should be increased to meet the needs of the sector. The budget funds should be used more efficiently. 
 

Planned policies: Reforming of the VET funding system is a key priority of the Concept of State Policy in the Field of Professional (Vocational) Education “Modern Professional (Vocational) Education” until 2027. It foresees implementation of the transparent mechanism of funds allocation for VET institutions .
On the second stage (2022—2024) funding of VET institutions located in regional centres will be transferred from city budgets to regional budgets. It will allow increasing financial resources and improving financial conditions of VET institutions located in the cities of oblast significance-regional centres. The VET institutions network optimisation should give positive effect as well. 
New methods for calculation of skilled workforce training costs (based on occupation complexity and qualification criteria) are to be introduced in 2025-2027. It will support fairer distribution of VET financial resources.
“EU4Skills” European Union project envisages the VET infrastructure modernisation (purchase of equipment for some VET institutions), which will partly cover financial needs on the capital expenditures (see A.3.5).