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Education for Employment


The project addresses the high youth unemployment rate in North Macedonia (25%), caused by the mismatch between the skills provided by the education system and those required by the economy. The final phase will further strengthen the quality of the new dual school- and company-based vocational education and training system and the role of the private sector in its governance, ensuring sustainability and scale.

Country/region Topic Period Budget
North Macedonia
Inclusive economic Development
Education
Vocational training
SME development
Education policy
01.07.2026 - 30.06.2029
 CHF  2’500’000
The project in brief
Background North Macedonia’s slow growth and still-high youth unemployment contrast with a deepening shortage of skilled labour caused by mismatch between the available and demanded skills, emigration and ageing. VET is high on the government agenda, yet governance challenges persist: limited private-sector co-steering, weak evidence-based decision-making and uneven involvement of the private sector throughout the country. Dual VET only partly meets rapidly evolving skill needs, prompting firms to expand industry-led training. This pushes companies to invest more in workforce development.
Objectives Young women and men gain decent employment because of market-oriented skills.
Target groups The target groups include the key system actors: 1) the private sector, including economic chambers, branch associations and companies engaged in VET, and 2) the educational institutions including the Ministry of Education and Science, the VET Development Centre, VET Schools, Regional VET Centres, and municipalities being responsible for the implementation of VET. The end beneficiaries are youth attending dual VET, with focus on girls as less represented in this field.
Medium-term outcomes

Outcome 1 (Quality): Young women and men acquire market-relevant skills through better quality work-based learning.

Outcome 2 (Governance): The key public and private sector actors at the national and local level increasingly co-steer formal VET governance.

Outcome 3 (Industry Solutions): Companies reduce labour shortages by adopting effective industry-led upskilling solutions, contributing to improved employment opportunities.
Results

Expected results:  

  • -Companies have gender-sensitive and improved processes and tools for VET
  • Public and private sector better coordinate at the national, local and regional level
  • The private sector is capable and incentivized to engage in evidence-based VET governance and implementation
  • Innovative and gender-sensitive Industry Solutions for future proofing the workforce are applied and scaled with relevant champion companies.


Results from previous phases:  

  • Nationwide dual VET introduced in 2021 and legally embedded (VET Law 2025; Education Strategy 2026–2032).
  • New VET financing model introduced, linking funding to market relevance (2025).
  • Private-sector engagement strengthened: 1,000+ companies investing in dual VET and upskilling.
  • 21,000+ youth trained. VET attractiveness increased, including girls’ participation from 26% to 42%.
Directorate/federal office responsible SDC
Project partners Contract partner
Swiss Non-profit Organisation
  • HELVETAS Swiss Intercooperation
  • Helvetas Swiss Intercooperation and the Economic Chamber as a strategic partner


Coordination with other projects and actors EU Delegation (Reform Agenda 2024-2027), KfW (Regional Challenge Fund)
Budget Current phase Swiss budget CHF    2’500’000 Swiss disbursement to date CHF    400’000 Total project since first phase Swiss budget CHF   10’243’509 Budget inclusive project partner CHF   14’714’000
Project phases Phase 3 01.07.2026 - 30.06.2029   (Current phase) Phase 2 01.07.2022 - 30.06.2026   (Completed) Phase 1 01.09.2016 - 31.12.2022   (Completed)
  • Sector according to the OECD Developement Assistance Commitiee categorisation EDUCATION
    INDUSTRY
    EDUCATION
    Sub-Sector according to the OECD Developement Assistance Commitiee categorisation
    Vocational training
    Small and medium-sized enterprises (SME) development
    Education policy and administrative management
    Cross-cutting topics The project also supports partner organisation improvements
    Aid Type Mandate with fiduciary funds
    Project number

    7F08792

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Last update 29.07.2025