Financial institutions and manufacturers in Ethiopia are stealing each other’s labour

The chairman of Association of Talent Development (ATDE) board, Dr. Gemchu Waktola, said during a meeting at the Radisson Blu Hotel today that instead of training new hires, banks, insurance providers, real estate firms, and companies that make beer and soft drinks hire individuals from similar institutions in an attempt to bridge the skills gap that is frequently seen in the Ethiopian labour market.

ATDE reports that employee turnover is rising instead of enabling a bright individual via work and training, or by luring a skilled worker away from the office with a higher income and perks.

Dr. Gemechu Waketola said ,”An employee will usually go to a better position if he is paid more and has more benefits. However, if we do not hire more individuals, many would be priced out of the market due to the nation’s restricted supply of competent labour. The labour market can only be changed and controlled by people who are qualified in it, the speaker declared.

Dr. Gemechu Waketola

“Every assignment requires the appropriate talents. Employers, consultancies, governmental and non-governmental organisations, trainers, and individual workers should work together to close the skill gap. The foundation of the labour market should be what the country requires. What is expected of the employee?” He said.

“The people of Ethiopia need to have a diverse range of skill sets in order to develop and remain competitive in the global economy, as skills are the currency of the future. Nowadays, not only is there a widening skills gap in Ethiopia, but even those with the highest levels of education are ill-prepared for the demands of the labour market.”He added.

According to Nigussu Tilahun, State Minister of Labour and abilities, there are many job seekers and unemployed people in the country, despite the fact that businesses and industries wish to hire people with the necessary skills.

Nigussu Tilahun

He highlighted that the reason for this gap is a lack of expertise in soft skills, or talents that the market may use to replace traditional technical knowledge.

Because of the nation’s uneven and dispersed socioeconomic development, there is a significant and expanding skills gap even as newer technology developments and professions continue to emerge globally. Ethiopian’s skills gap is primarily caused by two factors: a lack of investment in education and skill development, as well as a lack of public knowledge regarding the kinds of professions and skills that should be prioritised.

The Ministry and the Association of Talent Development (ATDE) signed a Memorandum of Understanding (MoU) today to work together to overcome the skills gap.

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