SLS in Manufacturing Sector-7thProof

A Study on Labour Shortage in the Manufacturing sector in Mauritius
A Study on
Labour Shortage
in the
Manufacturing sector
in Mauritius
October 2012
1
2
Contents
Page
1. Landscape of the Manufacturing sector 1

1.1. Introduction 1
1.2. The Mauritian Manufacturing Sector 2
1.3. Rationale of the study 2
2. Aims and objectives of the study 3

2.1. Contribution of the Manufacturing sector to the economy 3
2.2. Employment in Mauritius 4
2.2.1. Population projection 2010-2050 4
2.2.2. Highlights of the labour force, employment and unemployment as
at fourth quarter 2011 6
2.3. Employment in the sector 7
2.3.1. Employment by gender 9
2.3.2. Employment forecasts for the Manufacturing sector, 2011-2015 10
2.4. Labour Productivity 11
3. Methodology 12
4. Findings of labour shortage survey 15
4.1. Sector and employment profile 15
4.1.1. Employee distribution by category 15
4.1.2. Terms of employment (full-time and part-time employment) 17
4.1.3. Expatriate workers 17
4.1.4. Educational Requirement 18
4.1.5. Working experience as a requirement 18
4.2. Labour shortage status 19
4.2.1. Perception about labour shortage at the national level 19
4.2.2. Perception of labour shortage in the Manufacturing sector 19
4.2.3. Labour shortage within the company 20
4.3. Future labour requirement in Manufacturing firms 20
4.4. Labour shortage as defined by employers of the sector 23
4.4.1. Reasons for the labour shortage in the Manufacturing sector 23
4.5. Current quality and level of skills in the Manufacturing sector 24
4.5.1. Scarcity Areas 27
4.5.2. Difficulty filling jobs 27
4.6. Skills development initiatives 31
4.6.1. Budget allocation for training 31
4.6.2. Preferred mode for acquiring skills 31
4.6.3. Skills development initiatives 32
4.6.4. Use of the National Training Fund (Levy Grant System) 33
4.6.5. Training Needs Analysis 33
4.7. Recruitment and retention of employees 33
4.7.1. Recruitment channels 34
4.7.2. Skills and qualities employers look for when recruiting new employees 34
4.7.3. Difficulties in retaining skilled employees 36
i
Contents
4.8. Measures proposed to fill skills gap 36
4.8.1. Education and Training system 37
4.8.2. Government Policies 37
4.8.3. Areas of HR where assistance is required 38
4.8.4. Advice to those wishing to join the Manufacturing sector 39
5. Landscape of the EOE sector 42
5.1. EOE Sector 42
5.2. The Mauritian EOE Sector 42
5.3. Contribution of the EOE sector to the economy 43
5.4. Employment in the sector 43
5.4.1. Employment by size of establishment 43
5.4.2. Employment by gender 45
5.4.3. Employment forecasts for the EOE sector, 2011-2015 46
6. Findings of labour shortage survey 47

6.1. Sector and employment profile 48
6.1.1. Employees distribution by category 48
6.1.2. Terms of employment (full time and part time employment) 50
6.1.3. Expatriate workers 50
6.1.4. Educational Requirements 51
6.1.5. Working experience as a requirement 52
6.2. Labour shortage status 52
6.2.1. Perception about labour shortage at the national level 52
6.2.2. Perception of labour shortage in the EOE sector 53
6.2.3. Labour shortage within the company 53
6.3. Future labour requirement in EOE firms 54
6.4. Labour shortage as defined by employers of the sector 55
6.4.1. Reasons for the labour shortage in the EOE sector 56
6.5. Current quality and level of skills in the EOE sector 56
6.5.1. Scarcity Areas 58
6.5.2. Difficulty filling jobs 59
6.6. Skills development initiatives 62
6.6.1. Budget allocation for training 62
6.6.2. Preferred mode for acquiring skills 62
6.6.3. Skills development initiatives 63
6.6.4. Use of the National Training Fund (Levy Grant System) 64
6.6.5. Training Needs Analysis 64
6.7. Recruitment and retention of employees 65
6.7.1. Recruitment channels 65
6.7.2. Skills and qualities employers look for when recruiting new employees 65
6.7.3. Difficulties in retaining skilled employees 67
6.8. Measures proposed to fill skills gap 68
6.8.1. Education and Training system 68
6.8.2. Government Policies 69
6.8.3. Areas of HR where assistance is required 69
6.8.4. Advice to those wishing to join the EOE sector 70
7. Recommendations 71
References 79
ii
Tables
Table 1: Percentage Distribution of Gross Domestic Product by industry group at current basic prices, 2000-2012 3
Table 2: Comparative figures, fourth quarter 2010 and fourth quarter 2011 7
Table 3: Employment and unemployment - Year 2010 & 2011, Island of Mauritius 7
Table 4: Employment (000) in the Manufacturing sector by size of establishment, 1990-2010 8
Table 5: Rate of change in employment in the Manufacturing sector, 1990-2010 9
Table 6: Trend in employment in the Manufacturing sector by gender, 1990-2010 9
Table 7: Future trend in employment in the Manufacturing Sector, 1990-2015 10
Table 8: Percentage of part-time employees in Manufacturing firms 17
Table 9: Number of expatriates by employee category 17
Table 10: Percentage of organisations employing different categories of staff per minimum educational level 18
Table 11: Experience required per employee category 18
Table 12: Number of employees that would be required in the sample, 2011-2015 22
Table 13: Reasons stated by employers as to why it is difficult to recruit skilled labour in Mauritius 28
Table 14: Suggestions by employers regarding the measures to reduce mismatch 29
Table 15: Percentage of budget allocated to training by organisations 31
Table 16: Preference (top five) for acquiring the required skills for the organisation 31
Table 17: Skills and qualities employers look for when recruiting Workers 34
Table 18: Skills and qualities employers look for when recruiting Specialised worker 35
Table 19: Skills and qualities employers look for when recruiting Professional Staff 35
Table 20: Percentage Distribution of Gross Domestic Product at current basic prices, 2000-2012 43
Table 21: Employment (000) in the EOE sector by size of establishment, 1991-2010 44
Table 22: Rate of change in employment in the EOE sector, 1991-2010 45
Table 23: Trend in employment in the EOE sector by gender, 1991-2010 45
Table 24: Future Trend in employment in the EOE sector, 1990-2015 46
Table 25: Main activities of the EOE sector in the sample 47
Table 26: Percentage of part-time employees in EOE firms 50
Table 27: Number of expatriates by employee category and main activity 51
Table 28: Percentage of organisations employing different categories of staff per minimum educational level 51
Table 29: Experience required per employee category 52
Table 30: Reasons stated by employers as to why it is difficult to recruit skilled labour in Mauritius 59
Table 31: Suggestions by employers regarding the measures to reduce mismatch 60
Table 32: Percentage of budget allocated to training by organisations 62
Table 33: Preference (top five) for acquiring the required skills for the organisation 62
Table 34: Skills and qualities employers look for when recruiting Workers 66
Table 35: Skills and qualities employers look for when recruiting Specialised worker 66
Table 36: Skills and qualities employers look for when recruiting Professional Staff 67
iii
Figures
Figure 1: Distribution of Gross Domestic Product by industry group at current basic prices, 2000-2012 4
Figure 2: Population projection 2010-2050, Island of Mauritius 4
Figure 3: Population pyramids by age group and gender, Island of Mauritius, 2010, 2020 & 2050 5
Figure 4: Labour market, 4th quarter 2011, Island of Mauritius 7
Figure 5: Trend in employment in the Manufacturing sector in large establishments, 1990 2010 8
Figure 6: Trends in productivity indices Manufacturing sector, 2000 to 2010 11
Figure 7: Composition of Manufacturing sector workforce 15
Figure 8: Proportion of employee categories by size of company 16
Figure 9: Percentage of companies that employ full-time employees 17
Figure 10: Do you agree that Mauritius is experiencing labour shortage? 19
Figure 11: Perception of labour shortage at sector level 20
Figure 12: Do you have labour shortage in your organisation currently? 20
Figure 13: Will there be a net increase in the number of employees in 2012 in organisations? 21
Figure 14: Description of Labour shortage terms of qualifications and past work experience 23
Figure 15: Description of labour shortage in terms of lack of technical and soft skills 23
Figure 16: Reasons for Labour shortage in the Manufacturing sector 24
Figure 17: Status of skills among existing pool of skills in the Manufacturing sector 25
Figure 18: Importance attached to soft skills by category of employees 25
Figure 19: Initiatives to address skills shortage among existing employees 32
Figure 20: Strategic skills development plan for the organisation 32
Figure 21: Use of the Levy Grant System provided by the HRDC 33
Figure 22: Do you carry out any TNA before training your employees? 33
Figure 23: Does your organisation face any difficulty in retaining skilled people? 36
Figure 24: Percentage of respondents who ranked the following recommendations among top three 37
Figure 25: Policies which the Government may consider to fill skills gap 38
Figure 26: Areas in HR where organisations would like to have training and / or assistance 38
iv
Figure 27: Percentage of respondents who ranked the following advices among top three 39
Figure 28: Percentage Distribution of Gross Domestic Product at current basic prices, 2000-2012 43
Figure 29: Trend in employment in the EOE sector in large establishments, 1991 2010 44
Figure 30: Composition of EOE sector workforce 48
Figure 31: Proportion of employee categories by size of company 49
Figure 32: Percentage of companies that employ full-time employees 50
Figure 33: Do you agree that Mauritius is experiencing labour shortage? 52
Figure 34: Perception of labour shortage at sector level 53
Figure 35: Do you have labour shortage in your organisation currently? 53
Figure 36: Will there be a net increase in the number of employees in 2012 in organisations? 54
Figure 37: Description of Labour shortage terms of qualifications and past work experience 55
Figure 38: Description of labour shortage in terms of lack of technical and soft skills 55
Figure 39: Reasons for Labour shortage in the EOE sector 56
Figure 40: Status of skills among existing pool of skills in the EOE sector 56
Figure 41: Importance attached to soft skills for Workers category 57
Figure 42: Initiatives to address skills shortage among existing employees 63
Figure 43: Strategic skills development plan for the organisation 63
Figure 44: Use of the Levy Grant System provided by the HRDC 64
Figure 45: Do you carry out any TNA before training your employees? 64
Figure 46: Most preferred method of recruitment 65
Figure 47: Does your organisation face any difficulty in retaining skilled people? 67
Figure 48: Percentage of respondents who ranked the following recommendations among top three 68
Figure 49: Policies which the Government may consider to fill skills gap 69
Figure 50: Areas in HR where organisations would like to have training and / or assistance 69
Figure 51: Percentage of respondents who ranked the following advices among top three 70
v
Acknowledgement
The survey and the report prepared is an effort of a vibrant team. This report for the Manufacturing
Sector is the result of the splendid support of our stakeholders who were the respondents of
the survey. Grateful acknowledgement is accorded to the team of the Research and Consultancy
Division for their valuable contribution and continued support. The report is a combined effort of
all these people:
Dr Kaviraj S Sukon
Tehjal Vaghjee-Rajiah
R K Sharma Seechurn
Kreshna Googoolye
Leena Ramtohul
Devika Gopaul
Malini Ramah
The series of consultations and survey results have helped in drawing conclusions and make
recommendations on the future manpower requirements of the Manufacturing Sector. We look
forward to our continued partnership with our stakeholders.
The opinions and interpretations in this publication are those of the respondents and do not
necessarily reflect those of the HRDC.
vi
1. Landscape of the Manufacturing sector

1.1. Introduction
Statistics, figures and data of the manufacturing industry are key indicators of every nations
economy (GDP) production, exports, employment, living standards, infrastructure and self-
sufficiency to name a few. The manufacturing industry has now become the backbone of every
nations economic sustainability, stability and progress. It is one of the main sectors that controls
several other general conditions of a nation, like employment and consumables prices. There
is no doubt about how vital the manufacturing industrys contribution to a nations economic
development is and thats probably why manufacturing has often been referred to as the wealth
producing sector.
The Manufacturing Industry, recovering from recession at a pace much faster than expected, has
made headlines globally about its rapid recovery and progress.
Where on the one hand, According to a study (2011) by Deloitte LLP,

the manufacturing sector is Manufacturing is ranked No.1 industry for Economic
strengthening, expanding and Prosperity.
diversifying massively, the shortage
of manufacturing workers is Other global publications articles (2010-11)
dangerously threatening the headlines read Midwestern states see rebirth of
industry. One of the key challenges manufacturing;
the manufacturing industry is facing,
is the retention of skilled labour US on verge of manufacturing renaissance;
and key workers. Talent is the key Latest Manufacturing Data looks brighter after
to success in manufacturing. One of slowdown (UK); Manufacturing lifts Canada April
the top challenges for manufacturers leading indicator and Study forecasts strong
currently is maintaining a sufficient year for Canadian manufacturing industries;
talent pool and adequately skilled Industrial (primarily manufacturing ) investment
manufacturing workers. in Monroe county topped $200 million in 2010;
Global manufacturing industry continues to
Therefore, Manufacturing organisations expand (CILT UK); Manufacturing sector back
around the world are facing skilled on track and will be the key driver for the UK
labour shortage. If no action is Economy;
undertaken urgently, the situation Scotland Manufacturing Sector cheered by strong
is likely to worsen as the number of data;
people willing to join the sector is High Value Manufacturing key to Kingdoms
decreasing while the requirements sustainable economic wealth (Arab News);
of the consumers in terms of Manufacturing Sector Key to Economic Growth
quality is increasing in the wake of for Africa Manufacturing sectors of the industry
competition in the global village. will be the drivers of Russias economic growth
dynamics of 7.5 percent.
1
1.2. The Mauritian Manufacturing Sector
The manufacturing boom over the past fifteen years has nonetheless been remarkable and
has largely been responsible for what is rightly termed an economic miracle. Incentives in the
form of tax holidays, exemptions from import duties and from some aspects of the regulatory
regime, as well as preferential credit were provided to foreign and domestic investors who would
wholly specialise in exporting. The volume of EPZ activity expanded very fast, benefiting as it
did from high profits recycled from the sugar industry. The success of EPZ industries has been
such that they have absorbed the labour surplus; indeed there is now a labour shortage in the
island and several enterprises have resorted to migrant labour to expand production. One of the
governments economic successes in the late 1980s was job creation, largely through the growth
of EPZ enterprises. Between 1983 and 1989, total employment rose by 55 percent. Manufacturing
employment increased about 16,000 per year between 1985 and 1988, but only by 3 500 annually in
the 1988 to 1992 period. The rapid creation of manufacturing jobs has created labour shortages in
the agricultural and manufacturing sectors; as a result, Chinese guest workers have been brought
in by some factories. As it enters the stage of becoming a newly industrialised country, Mauritius
needs to use its labour force more effectively, shifting workers from less productive to more
productive sectors. This transition requires the government to promote labour mobility, as well as
greater technological skills and training.
1.3. Rationale of the study
In this hypercompetitive global era where technological change is intensifying and demographic
change is unfolding, skills mismatch has come to the forefront of the policy debate in Mauritius
especially that human resources remain our most important resource. Skills mismatch includes
skill shortages due to lack of qualification, knowledge and experience as well as skills exceeding
job requirements. Lack of skills in some sectors may occur simultaneously with supply of over
qualified people in others. If skill mismatch is not resolved, it adds to real costs on individuals,
enterprises and societies. Therefore, it is imperative to know the ever-changing skills needs in
order to match skills and jobs.
More and more expatriates from Asian countries are being recruited to fill the skills gap in the
Manufacturing sector in Mauritius. It is an undisputed fact that foreign labour would be needed
to ensure that the sector continues to grow. However, stakeholders need to work together in
order to reduce the dependency on foreign labour while providing services that meet all local and
international norms.
This study focuses on skills need in the local Manufacturing sector. There are shortages of skilled
individuals across several disciplines of the Manufacturing sector. The report satisfies to a large
extent the urgent need that was felt to synthesise evidence and provide new insights that can
provide the basis for crafting comprehensive policies that would prevent and address skill mismatch
and its consequences to the Manufacturing sector. This study also provides data that are the most
crucial prerequisite to supporting timely, effective and evidence-based skill mismatch policies.
2
2. Aims and objectives of the study

The aim of the survey was to find out the current patterns of skills and assesses how these have
been changing over recent years. This would help develop strategies and policies to reduce the
mismatch between demand and supply of labour in the Manufacturing sector. Some implications
are drawn for the demand for particular skills.
The objectives were to:
1. assess the current situation of labour shortage in the Manufacturing sector;

2. identify the immediate and future specific skills requirement;
3. identify the profile of employees required by employers; and
4. make recommendations for policy makers to devise strategies to reduce the labour mismatch
in the Manufacturing sector.
2.1. Contribution of the Manufacturing sector to the economy
The contribution of the Manufacturing sector towards GDP of the country was 22.5 percent in 2000
and has gradually decreased to 17.7 percent in 2011. Nonetheless, while manufacturing as a whole
has seen a loss in terms of its share in GDP, not all of its sub-sectors have fared the same. High-tech
electronic components and other precision-engineered instrumentation, pharmaceuticals and the
manufacturing of medicine as well as food processing (including seafood) have grown strongly and
are poised to play a leading role in our economic development.
Table 1: Percentage Distribution of Gross Domestic Product by industry group at current basic prices,
2000-2012
Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 * 2012**
Percentage contribution
of the Manufacturing 22.5 22.5 21.6 20.5 20.1 19.2 19.5 19.2 19.4 18.8 18.0 17.7 17.4
sector to GDP
* Revised figures
** Forecast
Source: Adapted from National Accounts Estimates (2008 - 2012) December 2011 issue and National Account Historical series,
Statistics Mauritius
3
Percentage contribution of the 22.5 22.5 21.6 20.5 20.1 19.2 19.5 19.2 19.4 18.8 18.0 17.7 17.4
A Study on
Manufacturing Labour
sector to GDP Shortage in the Manufacturing sector in Mauritius
* Revised figures
** Forecast
Figure 1: Percentage Distribution of Gross Domestic Product

by industry group at current basic prices, 2000-2012
Figure 1: Percentage Distribution of Gross Domestic Product by industry group at current basic prices, 2000-2012
23.0
22.0 22.5 22.5

21.0 21.6
20.0 20.5
Percentage
20.1
19.0 19.5
19.2 19.2 19.4
18.0 18.8
18.0
17.0 17.7
17.4
16.0
15.0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Year
Statistics Mauritius.
2.2. Employment in Mauritius
2.2.1. Population projection 2010-2050
2.2. Employment in Mauritius Page 12 of 108
According to the World Bank population projections by country, the population

2.2.1. ofPopulation projection
Mauritius, which was2010-2050
1.250 million as at December 2011, would reach its
peak by 2035, that is 1.367 million, and would gradually dwindle to reach
According to the World Bank population projections by country, the population of Mauritius, which
around
was 1.250 1.322
million as million in 2050.
at December This
2011, population
would reach itspattern will
peak by obviously
2035, that is have
1.367an
million,
and would gradually
impact on thedwindle
labour toforce,
reachmore
aroundparticularly
1.322 million
oninthe
2050. This labour
active population pattern
force, as will
obviously have an impact on the labour force, more particularly on the active labour force, as
depicted in Figure 2.
depicted in Figure 2.
Figure
Figure 2: Population 2: 2010-2050,
projection Population projection
Island of Mauritius 2010-2050, Island of Mauritius
1,380
1,366 1,367
1,370
1,357 1,359
1,360
1,350 1,342
1,339
1,340
Population ('000)
1,330 1,322
1,320 1,313
1,310
1,300
1,2901,281
1,280
1,270
2010 2015 2020 2025 2030 2035 2040 2045 2050
Year
Source: Adapted
Source: Adapted from Bank
from World Worldonline
Bank online database
database
Figure 2 clearly projects the ageing of the Mauritian population with an

4
increasing trend of those above 60 and/or above 65 years and a fall in
Figure 2 clearly projects the ageing of the Mauritian population with an increasing trend of those
above 60 and/or above 65 years and a fall in proportion of those in the active working group 15-
59 and/or 15-64 years. This ageing population phenomenon is further amplified by a decreasing
trend in the below 15 years population. In a nutshell, any future medium or long term strategy
with regards to the management of the Mauritian labour force will have to consider the pertinent
have
issues of to consider
ageing as wellthe pertinent
as the trend inissues of population.
Mauritian ageing as well as the trend in Mauritian
population.
Figure 3: Population pyramids by age group and gender, Island of Mauritius, 2010, 2020 & 2050
Figure 3: Population pyramids by age group and gender, Island of Mauritius, 2010, 2020 & 2050
http://www.nationmaster.com/country/mp-mauritius/Age_distribution
http://www.nationmaster.com/country/mp-mauritius/Age_distribution
Page 14 of 108
5
2.2.2. Highlights of the labour force, employment and unemployment as at fourth quarter 2011
The total Mauritian population aged 16 and over for the fourth quarter 2011 stood at 987 200,
with 483 800 males (49 percent) and 503 400 females (51 percent).
The total economically active population was 585 600, comprising of 365 500 males (62
percent) and 220 100 (38 percent) females.
Employment of Mauritians is estimated at 541 800 at the fourth quarter of 2011 compared to
537 700 for the same period in 2010 and 536 400 at the fourth quarter of 2009.
The unemployment rate is estimated at 7.5 percent, comprising of 4.9 percent for males and
11.8 percent for females. The unemployment rate stood at 7.2 percent for same period in
2010 and 6.3 percent in 2009.
The tertiary sector was the major employer with 63.8 percent followed by the secondary
sector 27.5 percent and primary sector 8.7 percent.
Employment in the Manufacturing sector represented 10.2 percent of the active population in
employment and it stood at 10.7 percent for the same period in 2010.
The main characteristics of the unemployed at the fourth quarter of 2011 were:
There were 43 800 unemployed comprising 17 900 males (41 percent) and 25 900 females
(59 percent).For the same period in 2010, there were 41 600 unemployed comprising 13 100
males (31 percent) and 28 500 females (69 percent).
17 100 or about 39 percent of the unemployed were aged below 25 years. For the same period
in 2010, 15 300 or about 37 percent of the unemployed were aged below 25 years.
Some 8 600 or 20 percent had not reached the Certificate of Primary Education (CPE) level or
equivalent and a further 15 900 (36 percent) did not have the Cambridge School Certificate
(SC) or equivalent. For the same period in 2010, some 9 000 or 22 percent had not reached the
Certificate of Primary Education (CPE) level or equivalent and a further 16 700 (40 percent)
did not have the Cambridge School Certificate (SC) or equivalent.
In fourth quarter 2010, 14 100 (34 percent) were looking for a first job while this figure rose
to 15 600 (36 percent) in 2011.
Employment of Mauritians increased by 600 from 536 100 in 2010 to 536 700 in 2011. It
increased by 11 300 from 524 800 in 2009 to 536 100 in 2010.
Unemployment rate stood at 7.8 percent in 2010 compared to 7.3 percent in 2009. It increased
marginally from 7.8 percent in 2010 to 7.9 percent in 2011.
6
Table 2: Comparative figures, fourth quarter 2010 and fourth quarter 2011
Q4 - 2010 Q4-2011 Change

Q4 2011 - Q4 2010
Labour force 579 300 585 600 +6 300
Employment 537 700 541 800 +4 100
Unemployment 41 600 43 800 +2 200
Unemployment rate (%) 7.2 7.5 +0.3
Seasonally adjusted unemployment rate 8.1 8.4 +0.3
Table 3: Employment and unemployment - Year 2010 & 2011, Island of Mauritius
Year 2010 Year 2011 Change
Employment 536,100 536,700 +600
Unemployment 45,200 46,100 +900
Unemployment rate (%) 7.8 7.9 +0.1
2.3. Employment in the sector
The general trend in employment in the sector has been decreasing over the last 15 years as
depicted in Figure 5. The sector was employing 109 701 people in 1990. Five years later, the
number of employees rose to 115 309 representing an increase of around 5 percent. From 1995 to
2010, the number of people employed in the sector decreased by around 30 percent as shown in
Table 4.
Figure 4: Labour market, 4th quarter 2011, Island of Mauritius
Figure 4: Labour market, 4th quarter 2011, Island of Mauritius
Activity rate
59.3%
Unemployment rate
7.9%
7
of people employed
A Study in the sector
on Labour Shortage decreasedsector
in the Manufacturing by around 30 percent as shown in
in Mauritius
Table 4.
Figure 5: Trend in employment in the Manufacturing sector in large establishments,

Figure 5: Trend in employment in the Manufacturing sector in large establishments, 1990 2010
1990 2010
140,000
120,000
Number of employees
118,650
100,000 109,701 112,165 111226 114987 111,017
102130 101,715
80,000 91021 93877
80138
60,000
40,000
20,000
2002
2009
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2003
2004
2005
2006
2007
2008
2010*
Year
Source: Adapted from Digest of Labour Statistics 2010 and historical series, Statistics Mauritius (2011)
Table
Table 4: Employment (000)
4: Employment (000) ininthethe
Manufacturing sectorsector
Manufacturing by size by
of establishment, 1990-2010 1990-2010
size of establishment,
Year Large
Year Large
establishments
establishments
1990 1990 109 701 109 701
1991 1991 117 414 117 414
1992 1992 118 650 118 650
1993 114 822
1993 114 822
1994 112 165
1994 112 165
1995 115 309
1995 115 309
1996 102 130
1996 102 130
1997 100 531
1997 1998 111 226
100 531
1998 1999 115 309 111 226
1999 2000 114 987 115 309
2000 Page 18 of 108 114 987
2001 116 960
2002 111 017
2003 108 907
2004 101 715
2005 92 620
2006 91021
2007 94027
2008 93877
2009 82635
2010 80138

8
Table 5: Rate of change in employment in the Manufacturing sector, 1990-2010
Period Total
1990-1995 +5%
1995-2000 -0.3%
2000-2005 -19%
2005-2010 -13%
1995-2010 -30%
1990-2010 -27%
2.3.1. Employment by gender
As it can be observed, the Manufacturing sector is female-dominated, most particularly because

of the nature of the activities involved. However, it can also be noted that the ratio of male to
female in this sector has been increasing slightly over time.
Table 6: Trend in employment in the Manufacturing sector by gender, 1990-2010
Year Male Female Total Number of males for

every female employee
1990 45525 64176 109701 0.71

1991 53177 64237 117414 0.83
1992 52692 65958 118650 0.80
1993 49811 65011 114822 0.77
1994 49221 62944 112165 0.78
1995 47647 65670 115309 0.73
1996 45843 56287 102130 0.81
1997 45639 54892 100531 0.83
1998 47644 63582 111226 0.75
1999 49639 65670 115309 0.76
2000 49558 65429 114987 0.76
2001 50151 66809 116960 0.75
2002 49191 61826 111017 0.80
2003 47415 61492 108907 0.77
2004 46484 55231 101715 0.84
2005 44427 48193 92620 0.92
2006 43626 47395 91021 0.92
2007 46435 47592 94027 0.98
2008 47696 46181 93877 1.03
2009 43325 39310 82635 1.10
2010* 41525 38613 80138 1.08
Source: Adapted from Digest of Labour Statistics 2010 and historical series, Statistics Mauritius 2011
*Provisional
9
2.3.2. Employment forecasts for the Manufacturing sector, 2011-2015
Nickell (1984) notes that industrial employment has proved notoriously difficult to model as it
is related to numerous factors such as rapid technological development, consumers patterns,
difficulties faced by employers to forecast growth, industrial structure, changes in the level of
economic activity, government programs and policies etc.
The assessment of labour market therefore has been a critical challenge to researchers, employment
policy makers, manpower analysts and educational planners for decades, with the aim to avoid
mismatch between manpower demand and supply for labour, whether appearing as structural
unemployment or skills shortages impeding economic development.
Table 7: Future trend in employment in the Manufacturing Sector, 1990-2015
Year Employment trend
1990 109701
1991 117414
1992 118650
1993 114822
1994 112165
1995 115309
1996 102130
1997 100531
1998 111226
1999 115309
2000 114987
2001 116960
2002 111017
2003 108907
2004 101715
2005 92620
2006 91021
2007 94027
2008 93877
2009 82635
2010 80138
2011* 77641
2012* 75144
2013* 72647
2014* 70150
2015* 67653
Source: Data from 1990-2010 was obtained from CSO(2011) Digest of Labour Statistics 2010 & Historical Series on Labour
Statistics, Statistics Mauritius Website
*Figures for years 2011 to 2015 have been forecasted
Based on the model, employment is expected to be 67 653 by 2015, representing a decrease of 16

percent in large establishments from the 2010 figure.
10
roles and the performance ofLabour
A Study on manufacturing firms
Shortage in the as a whole
Manufacturing areinbroadly
sector Mauritiusthe
same. They include: (1) physical-organic, location, and technological factors;
(2) cultural belief-value and individual attitudinal, motivational and behavioural
2.4. Labour
factors; (3)Productivity
international influences e.g. levels of innovativeness and
efficiency
The on the part
factors affecting labourofproductivity
the owners or and managers of
the performance of individual
inward investing
work rolesforeign
and the
performance of manufacturing firms as a whole are broadly the same.
companies; (4) managerial-organizational and wider economic and political- They include: (1) physical-
organic, location, and technological factors; (2) cultural belief-value and individual attitudinal,
legal environments;
motivational and behavioural(5) factors;
levels (3)
of flexibility
internationalininfluences
internal labour markets
e.g. levels and the
of innovativeness
and efficiency onofthework
organization part of the owners
activities and managers
e.g. of inward
the presence orinvesting
absence foreign companies;
of traditional
(4) managerial-organizational and wider economic and political-legal environments; (5) levels of
craft demarcation
flexibility linesmarkets
in internal labour and barriers to occupational
and the organization of workentry; and
activities (6)the
e.g. individual
presence
or absence of traditional craft demarcation lines and barriers
rewards and payment systems, and the effectiveness of personnel managers to occupational entry; and (6)
individual rewards and payment systems, and the effectiveness of personnel managers and others
inand otherstraining,
recruiting, in recruiting,
communicating training, communicating
with, and with, employees
performance-motivating and performance-
on the basis
of pay and other incentives.
motivating employees on the basis of pay and other incentives.
Figure 6: Trends in productivity indices Manufacturing sector, 2000 to 2010

Figure 6: Trends in productivity indices Manufacturing sector, 2000 to 2010
During the period 2000 to 2010, labour productivity in the manufacturing sector registered an
Duringannual
average the period
growth of2000 to 2010,
3.8 percent while labour productivity
capital productivity in the
declined manufacturing
by an average of 0.4
percent annually.
sector registered an average annual growth of 3.8 percent while capital
productivity
This declined
was the result by an
of growths of average of and
1.6 percent 0.4 2.0 percent annually.
percent in real output and capital input
respectively and a decline of 2.1 percent in labour input. During the same period, multifactor
Page 23 of 108
productivity increased by an average of 0.9 percent per annum.
In 2010, labour productivity in manufacturing grew by 4.1 percent, lower than the 8.7 percent
growth in 2009. Capital and multifactor productivity witnessed increases of 6.6 percent and 6.8
percent respectively in 2010 compared to increases of 1.8 percent and 3.5 percent in 2009.
11
3. Methodology
With a view to achieve the objectives of the Labour Shortage Survey 2011, the data to compile
this report was captured from both primary and secondary sources. The primary source of data
was a structured survey questionnaire sent out to various organisations. Quantitative data were
backed up with qualitative data obtained through face to face semi structured interviews of a
few major long-existing players of the local industry. This also confirmed and complemented the
findings of the survey. Secondary sources of data included figures from Statistics Mauritius and
other documents that related to the issue of skills in Mauritius.
A structured questionnaire was developed which comprised 4 sections with 33 questions. A whole
page was dedicated to description of the aim and objectives of the study, definitions and interview
administration details. Questions were rationally shared between closed and open-ended ones.
Section I assembled questions related to labour shortage at sector of operation level;
Section II consisted of questions addressing labour shortage at organisation level, with

particular focus on capturing data on current and future labour requirements and on
recruitment and retention of employees in Manufacturing firms;
Section III enlisted questions on how to reduce the skills gap and increase employment;
Section IV captured general details on each organisation surveyed.
The questionnaire was piloted in a few companies to ensure relevance of questions as well as to
eliminate any discrepancy.
The questionnaire was targeted to both categories of employers namely the private sector and
the public services. Thirty-nine professional interviewers and eight supervisors were appointed
to administer the structured questionnaire through face to face interviews. In order to ensure
consistency in data collection, a briefing session was carried out. This exercise also ensured that
each and every question was properly understood and asked while answers were rightly recorded
thereafter. Data collection was conducted during the months of July to October 2011.
The list of companies operating in the Manufacturing sector was obtained from the Levy Grant
database 2011 and the National Human Resource Development Plan 2009 database. 185 companies
were randomly selected from that database ensuring representativeness of the sample through
stratification in terms of number of employees. Companies that could not be contacted (because
of reasons like change of name, closure or refusal to participate) were replaced by companies of
similar characteristics. Following the data collection, questionnaires were verified for completeness
and data entry in Statistical Package for the Social Sciences (SPSS) 18.0 ensued. The final database,
after data cleaning and validation, comprised entries for 185 Manufacturing and 97 EOE companies
and their main activities are described below and in part B respectively, on which the findings of
the study were based.
12
Manufacturing is defined as the physical or chemical transformation of materials or compounds

into new products. Manufacturing is the most diverse sector of most economies. It includes as
sub-sectors:
Main activities of the Manufacturing sector in the sample

Quarrying/salt extraction
Processing and preservation - meat and allied products
Oils and fats manufacturing - animal/animal feed and vegetable/ice cream
Bakery products - bread/pastry, chocolate
Manufacture of food items/spices/tea/noodles
Manufacture of cider, Perry and alcoholic beverage/country liquor
Manufacture of soft drinks
Leather manufacturing and processing
All related wood works
Paper manufacturing/Publishing and Printing
Fertilizers and nitrogen compounds manufacturing
Establishment for manufacturing of paints and other allied products
Pharmaceutical and botanical products manufacturing
Detergents and toilet preparations manufacturing
Manufacture of salt/tobacco
Manufacture of matches
Bag, plastic, ceramic clay, plaster, lime, pottery and tyres manufacturing
Tombalist /stone
Metal manufacturing/steel casting
Machinery manufacturing - general purpose
Domestic appliances manufacturing
Electric motors, electronic, generators and transformers manufacturers
Medical and surgical or veterinary appliances manufacture
Photographic equipment manufacturing
Motor vehicles, ship and bicycle manufacturing (assembling)
Furniture manufacturing - wooden/metal/plastic/rattan
Jeweler - diamond cutting and processing and manufacturing
Musical instruments manufacturing
Sports goods manufacturing
Toys manufacturing - masks/figurines
Zipper, slide fasteners manufacturing
Fishing tackles, umbrella, artificial flower, broom, candles manufacturing
Metal waste and non metal scrap recycling
Electricity, gas production and water purification
Renting of construction, repairs and maintenance, agents
Filling station
Agency for import and export/Auctioneer, wholesale
Wholesale - agricultural products, textile, others
Domestic Textile
13
Manufacturing firms vary in size from small with one or two person operations, organised and
operating in an informal manner, to massive multinational firms with plants in many countries and
with thousands of employees.
Data analyses and report writing were carried out

in November and December 2011. Simple univariate Employee classification
(frequency runs) and bivariate analyses (cross- Employees have been classified into three (3)
tabulations) were conducted. For questions 20 and broad categories:
21, after grouping the common reasons / measures, 1. Worker: A worker is a labourer or non-
a score of 30 was allocated to each response ranked technical staff. Their work is mostly
1st, a score of 20 for each response ranked 2nd manual and repetitive.
and a score of 10 for each response ranked 3rd. As 2. Specialised worker: A specialised worker
there were not many responses ranked 4th and 5th, requires some form of education or
they were merged with the 3rd response for each training to master skills. Their work is
question respectively. mostly repetitive, but requires a level of
skill or understanding that is slightly more
For the purpose of this study, the skill level of sophisticated than manual work.
employees has been classified into three broad 3. Professional staff: Professional staff is
categories namely Workers, Specialised workers more independent and perform a variety
and Professional staff. A brief definition of these of tasks. They require a higher level of
three categories of employees appeared on the education and/or experience to be able
front page of our questionnaire so that respondents to fulfill their roles.
were on the same wavelength with regard to the
different skill level of employees.
14
4. Findings of labour shortage survey
4.1. Sector and employment profile

4.1.1. Employee distribution by category
The three categories of employees, namely, Workers, Specialised workers and
Professional staff, were fairly well represented across the Manufacturing firms,
with the Specialised workers being employed in most of the companies (95
4.1.1. Employee
percent) distribution
followed by category
by Workers employed by 91 percent of the companies and
Professional
The staffofemployed
three categories employees,by 89 percent
namely, Workers,ofSpecialised
the companies.
workers and Professional staff,
were fairly well represented across the Manufacturing firms, with the Specialised workers being
employed in most of the companies (95 percent) followed by Workers employed by 91 percent of
A companies
the stratification of the total
and Professional numberbyof
staff employed employees
89 percent by employee category
of the companies.
revealed that Specialised workers comprised the majority, representing 47
A stratification of the total number of employees by employee category revealed that Specialised
percent
workers of the the
comprised workforce, followed by
majority, representing 47 40 percent
percent of theof Workersfollowed
workforce, and 13 bypercent
40 percentof
of Workers and 13 percent of Professional staff. (Figure 7).
Professional staff. (Figure 7).
Figure 7: Composition of Manufacturing sector workforce
Figure 7: Composition of Manufacturing sector workforce
13%
Professional
Staff
40% Worker
47% Specialised
Worker
Hence, it can be inferred that the current Manufacturing sector workforce can be described
Hence,asita can
basically beworkforce
skilled inferredwith
that thetechnical
more currentcompetences.
Manufacturing sector workforce can
be described basically as a skilled workforce with more technical competences.
Figure 8 gives a pictorial display of the proportion of different categories of staff per company
size. Since Specialised workers were in very large numbers in this sector it is quite obvious that
they were present in highest proportion in most of the companies, except for those with 1-5
employees where Professional staff were in highest proportions and among those having 51-100
employees where Workers were in highest proportions.
Page 29 of 108
15
Professional staff were in highest proportions and among those having 51-100
employees where Workers were in highest proportions.
Figure 8: Proportion of employee categories by size of company

1-5 employees 6-10 employees
Worker 30% Professional

Staff 26% Worker 31%
Professional
Staff 50%
Specialised
worker 20% Specialised
worker 43%
11-50 employees 51-100 employees

Professional
Staff 10%
Professional
Staff 26% Worker 31%
Worker
Specialised
worker 40% 50%
Specialised
worker 43%
Professional
Staff 6%
More than 100 employees
Worker
46%
Specialised worker
48%
Page 30 of 108
16
4.1.2. Terms of employment (full-time and part-time employment)

4.1.2. Terms of employment (full-time and part-time employment)
The findings of the survey have shown 78 percent of the companies had at most 100 full-time basis
employeesThe findings
(Figure 9).ofThose
the survey have shown
companies 78 percent
employing more of than
the companies hadon
100 people at full
mosttime
100 represented
full-time basis employees
only about 22 percent of the sample. (Figure 9). Those companies employing more than 100
people on full time represented only about 22 percent of the sample.
Figure 9: Percentage of companies that employ full-time employees
40 37
35
Percentage of companies
30
25
20 16
15 14
15
10
10
5 3 3 3
0
1 to 5 6 to 10 11 to 50 51 to 101 to 201 to 301 to Above
100 200 300 500 500
Number of full-time employees
Part-time employment in this sector did not seem to be a common practice, with three out of
Part-time employment in this sector did not seem to be a common practice, with three
every four firms not employing any part-time workers. 73.5 percent of the organisations did not
out of every four firms not employing any part-time workers. 73.5 percent of the
employ any part-timers and 21.6 percent employed up to 9 part-time workers (Table 8).
organisations did not employ any part-timers and 21.6 percent employed up to 9 part-
time workers
Table(Table 8).
8: Percentage of part-time employees in Manufacturing firms
Number of employees Percentage on part-time basis

Table 8: Percentage of part-time employees in Manufacturing firms
None
Number of employees Percentage on part-time basis 73.5
None 73.5
1 to 9 21.6
1 to 9 21.6
10 to1050
to 50 3.8 3.8
50 to 100 0.5
50 toAbove
100 100 0.5 0.5
Above 100 0.5
4.1.3. Expatriate workers
83 Manufacturing firms out of the 185 surveyed

Page 31 of(representing
108 45 percent) employed expatriates.
The total number of expatriates employed by the 83 firms was 408. Table 9 shows the number of
expatriates by employee category. In this sector, expatriates are mostly employed as specialised
workers as compared to the other two categories.
Table 9: Number of expatriates by employee category
Total number Workers Specialised worker Professional

of employees
Number % Number % Number %
of expats of expats of expats
15623 107 0.7 279 1.8 22 0.1
17
4.1.4. Educational Requirement
Educational qualification was not a prerequisite to be employed as a Worker in the Manufacturing

sector. Yet a very small percentage (4 percent) had reached up to SC level.
The requirement to be employed as Specialised workers included vocational qualifications or

completion of academic studies up to secondary level. In a few cases, employers did not require
any qualification for such positions. Professional staff requirement varied mainly from HSC passed
to post-graduate degree.

Table 10: Percentage of organisations employing different categories of staff
per minimum educational level
Minimum educational Percentage of organisations employing

level required
Worker Specialised worker Professional staff
Education not important 23 2 -

Incomplete primary 22 3 -
CPE passed 25 7 -
Incomplete secondary 26 24 2
SC passed 4 23 6
HSC passed - 25 24
Vocational qualification 1 15 18
Professional qualification - 1 15
University diploma - - 13
Bachelor degree - - 17
Post-graduate - - 6
4.1.5. Working experience as a requirement
As far as working experience was concerned (Table 11), nearly one third of the companies surveyed
were of the view that experience was necessary for Workers. For Specialised and Professional
staff, experience was definitely a pre-requisite given the level of responsibility of these categories
of employees.
Table 11: Experience required per employee category
Percentage of organisations
Level of experience required Worker Specialised worker Professional staff
Definitely require 28 73 85
Depends 46 25 14
Not at all 26 2 1
Total 100 100 100
18
was a problem of mismatch in the labour market. They were willing to recruit
people but they could not find the right person to fill the vacant positions.
4.1.6. Perception about labour shortage at the national level

4.2. Labour shortage status
A few questions in the questionnaire aimed at gauging the perception of
Employers perception on the gravity of the labour shortage was gauged at three levels, namely
employers about level,
the national labour shortage
sectoral level andstatus across
organisational all sectors in Mauritius.
level.
With a relatively high level of unemployment, they all highlighted that there was a problem of
Notably,mismatch
three inout
theof every
labour fiveThey
market. employers
were willingfelt that people
to recruit Mauritius was
but they experiencing
could not find the
right person to fill the vacant positions.
labour shortage at the national level. 41 percent felt that it was extremely
severe compared to 58 percent who found it to be tolerable. The results are
presented inquestions
A few Figure in10.
the questionnaire aimed at gauging the perception of employers about labour
shortage status across all sectors in Mauritius.
Notably, three out of every five employers felt that Mauritius was experiencing labour shortage at
Figure 10: Do you agree that Mauritius is experiencing labour shortage?
the national level. 41 percent felt that it was extremely severe compared to 58 percent who found
it to be tolerable. The results are presented in Figure 10.
Figure 10: Do you agree that Mauritius is experiencing labour shortage?
Not
severe at
No
all
34%
1%
Extremely
Yes severe
66% Tolerable 41%
58%
4.2.2. Perception of labour shortage in the Manufacturing sector
55 percent of the respondents opined that the Manufacturing sector was facing labour shortage as
highlighted in Figure 11. Among those who said that this sector was enduring a labour shortage,
14 percent were of the view that this situation would persist over the next 5 years. However,
nearly half of the respondents stated that this situation would get worse. 37 percent said that the
situation would improve.
Page 34 of 108
19
sector was enduring a labour shortage, 14 percent were of the view that this
situation would persist over the next 5 years. However, nearly half of the
respondents stated that this situation would get worse. 37 percent said that
Figure
the situation would 11: Perception of labour shortage at sector level
improve.
Figure 11: Perception of labour shortage at sector level
Remaining the
same
14%
Worsening
No Yes 49%
45% 55% Improving
37%
4.2.3. Labour shortage within the company
More 4.1.8.
than 60Labour shortage
percent of the within the company
respondents indicated a labour shortage at the national level and
55More
percent indicated such a shortage at
than 60 percent of the respondentssectoral level.indicated
There appears to be ashortage
a labour slight disconnect
at the
between perception and reality. In the Manufacturing sector, only one-quarter of respondents (39
national
percent) level
stated and
that 55organisations
their percent indicated
were facingsuch a shortage
any labour at The
shortage. sectoral
result islevel. There
depicted in
Figure 12. to be a slight disconnect between perception and reality. In the
appears
Manufacturing Figure 12: Do
sector, you have
only labour shortageof
one-quarter in your organisation currently?
respondents (39currently?
percent) stated that
Figure 12: Do you have labour shortage in your organisation
their organisations were facing any labour shortage. The result is depicted in
Figure 12.
Yes
39%
No
61%
Page 35 of 108
4.3. Future labour requirement in Manufacturing firms

4.3. Future labour requirement in Manufacturing firms
Very few respondents answered the question related to future skill requirement. Employers were
Very few respondents answered the question related to future skill
not in a position to properly plan their recruitment and the majority did not have a recruitment
requirement.
strategy. Employers were not in a position to properly plan their
Of those who responded, more than half of the respondents (62 percent) stated that there would
recruitment and the majority did not have a recruitment strategy.
not be an increase in the number of employees in their organisations in 2012 as depicted in Figure
Of those who
13 implying responded,
that only moreof than
some 38 percent halfwould
companies of the respondents
be recruiting in 2012.(62 percent)
stated that there would not be an increase in the number of employees in their
20 organisations in 2012 as depicted in Figure 13 implying that only some 38
stated that there would not be an increase in the number of employees in their
organisations in 2012 as depicted
A Study in Figure
on Labour Shortage 13Manufacturing
in the implying that only
sector some 38
in Mauritius
percent of companies would be recruiting in 2012.
Figure
Figure 13: Will 13: Willbe
there there be a increase
a net net increaseininthe
the number
numberofof
employees in 2012
employees in in organisations?
2012 in organisations?
Yes
38%
No
62%
The top ten jobs in demand in the sample according to those who would be recruiting were:
Machine Operator/Machinist
Manual worker
Page 36 of 108
Welder
Acquisition Editor
Carpenter
Excavator Operator
Mechanic
Air Conditioning Technician
Indoor sales representative
Skilled Fibre Glass Worker
Stone setter
Merchandiser
21
Table 12: Number of employees that would be required in the sample, 2011-2015
Job titles 2011 2012 2013 2014 2015
AC Technician 12 7 9 9 9
Acquisition Editor 15
Aluminium Worker 10 7
Cabinet Maker 5
Carpenter 20
Crane Operator 5
Croquette Maker 5
Driver 5
Excavator Operator 15 20
Factory Attendant 10 10
Factory Worker 25 2
Hand Knitter 10
Helper 40 18 15 13 17
Indoor Sales Representative 10
Loader Operator 10 15
Lorry Helper 10 10 10
Machine Operator 140 52 22 10 20
Manoeuvre Macon 8
Manual Worker 35 10 15 20
Mechanic 12 2
Offset Machine Operator 5
Packer 10
Printing Machine Operator 5
Salesman 10 6 2 2
Samoussa Maker 10
Shift Metal Worker 5 6
Skilled Fibre Glass Worker 25
Skilled Painter 5 2
Technician 6
Welder 20 7 7 10 12
22
4.4. Labour shortage as defined by employers of the sector
In more than 50 percent of cases, experience was sought together with qualifications.
As far as experience, which is closely tied to specialisation and expertise, is concerned, 63 percent
of the respondents highlighted lack of people with required sufficient working experience and
qualification to be the main cause of labour shortage as shown in Figure 14. For 28 percent
of respondents, labour shortage meant a lack of people with required sufficient past working
Figure 14: Description of Labour shortage terms of qualifications and past work experience
experience only.
70
Figure 14: Description
60 of Labour shortage terms of qualifications and past work experience
63
50
Percentage
70
40
60
30 63
50
Percentage
20 28
40 10 1 8
30 0
20 Lack of people Lack28 of people Lack of people Others
10 with both with required with
1 8
0 qualifications and sufficient past qualifications
Lackpast working Lack of
of people working
people onlyLack(certificates)
of people Others
experience
with both experience
with requiredonly with
qualifications and sufficient past qualifications
With regard to past
technical
working and working
soft skillsonly
nearly 60 percent of the respondents
(certificates)
experience experience only
described labour shortage as a lack of both technical and soft skills as shown in
WithFigure
regard15. to technical and soft skills nearly 60 percent of the respondents
With regard to technical and soft skills nearly 60 percent of the respondents described labour
described
shortage labour
as a lack shortage
of both technicalasand
a lack of both
soft skills technical
as shown and
in Figure 15.soft skills as shown in
Figure 15: Description of labour shortage in terms of lack of technical and soft skills
FigureFigure
15. 15: Description of labour shortage in terms of lack of technical and soft skills
60
59.8
50
40
Percentage
60 30
59.8
50 20
21.6
18.6
40 10
Percentage
30 0
Lack of people with Lack of people with Lack of people with
20 both technical skills required soft skills technical skills to
21.6
to do the job and (e.g attitude, team do the job
10 18.6
soft skills spirit etc.)
0
both technical
4.4.1. Reasons for the labour shortageskills required soft skills technical
in the Manufacturing skills to
sector
to do the job and (e.g attitude, team
4.4.1. Reasons for the labour shortage in the Manufacturing sector do the job
soft skills spirit etc.)
Lack of technical skills, wrong attitude towards work, education system that do not meet the
market demands and unwillingness to work on shift were among the main constraints put forward
by theLack of technical
respondents. skills,
Further wrong
analysis attitude
of the reasons towards
for labourwork, education
shortage flagged ansystem that do
unwillingness to
work onnot meet the market demands and unwillingness to work on shift were among
shift and overtime. The results are depicted in Figure 16.
4.4.1. Reasons for the labour shortage in the Manufacturing sector
Page 39 of 108
23
the main constraints put forward by the respondents. Further analysis of the
A Studyfor
reasons on Labour
labourShortage in the flagged
shortage Manufacturing
an sector in Mauritius to work on shift and
unwillingness
overtime. The results are depicted in Figure 16.
Figure 16: Reasons for Labour shortage in the Manufacturing sector

Figure 16: Reasons for Labour shortage in the Manufacturing sector
People are not sufficiently proficient in technical skills 84
People do not have the right attitude towards work 82
Education system does not meet market demands 66
Employees not willing to work on shift 65
Employees not willing to work overtime 57
People are not sufficiently proficient in numeracy 54
Employees not willing to adopt flexi time 51
Low wages compared to other sectors 49
People are not sufficiently proficient in ICT 48
Not sufficient job security compared to other sectors 47
People are not sufficiently proficient in language 44
Unfavourable conditions of employment compared to other sectors 40
People have a negative opinion about this sector 37
0 10 20 30 40 50 60 70 80 90
Percentage
4.5. Current quality and level of skills in the Manufacturing sector

4.5. Current quality and level of skills in the Manufacturing sector
In general, the majority of respondents said that their current employees (68
In general, the majority of respondents said that their current employees (68 percent of Specialised
percent
workers, of
77 Specialised workers,
percent of Professional 77and
staff percent of Professional
65 percent of Worker) werestaff and 65meeting
satisfactorily percent
oftheWorker)
basic skillswere
requirements of the sector.
satisfactorily This result
meeting theis inbasic
line with the previous
skills findings where
requirements of the
employers expressed their views regarding labour shortage at organisational level.
sector. This result is in line with the previous findings where employers
91 percent of companies employed Workers, 95 percent of companies employed Specialised worker
expressed their
and 89 percent views regarding
of companies employed labour shortage
Professional Staff. Asatshown
organisational level.
in Figure 17, 77 percent of
Professional staff were meeting the skills requirements of employers but on the other hand around
11 percent of employers said that this question was not applicable for the same category of
91 percent
employees sinceoftheycompanies
did not employemployed Workers,
any Professional staff. 95 percent of companies
employed Specialised worker and 89 percent of companies employed
Page 40 of 108
24
Professional Staff. As shown
A Study in Figure
on Labour 17, 77 percent
Shortage of Professional staff
in the Manufacturing werein
sector Mauritius
meeting the skills requirements of employers but on the other hand around 11
percent of employers said that this question was not applicable for the same
category of employees since they did not employ any Professional staff.
Figure 17: Status of skills among existing pool of skills in the Manufacturing sector
Figure 17: Status of skills among existing pool of skills in the Manufacturing sector
77
80
68
70 65
Percentage of Companies
60
50
40
30
18
20 15
9 9 9 9 5 11
10 2 2 1 1
0
Worker Specialised Worker Professional Staff
Besides
Besides possessing possessing
the requiredthe required qualifications,
qualifications, soft skills soft skillsconsidered
were were considered
to betoequally
be important
for the Worker category
equally to perform
important for the better.
Worker The
categorysurveyto revealed that soft
perform better. The skills
survey were extremely
important forrevealed
majoritythat
of the
soft skills were extremely important for majority of the Figure 18. For
respondents (more than 90 percent) as depicted in
employees inrespondents
the category Specialised
(more than 90 worker, the responses were more than in 60 percent of
For Professional staff, a percent)
higher astendency
depicted in Figure
was 18. For employees
observed compared to that of
respondents said that soft skills were extremely important.
the category Specialised worker, the responses were more than 60 percent of
Worker and Specialised worker categories where around 90 percent of
respondents said that soft skills were extremely important.
For Professional staff, a higher tendency was observed compared to that of Worker and Specialised
respondents found that soft skills were either extremely important or
worker categories where around 90 percentPageof respondents found that soft skills were either
41 of 108
important.
extremely importantTherefore,
or important. it Therefore,
can be concluded that besides
it can be concluded technical
that besides and generic
technical and
generic skills, soft skills are equally important for all employees. In todays world of work, the
skills, soft skills are equally important for all employees. In todays world of
human touch is becoming very important.
work, the human touch is becoming very important.
Figure 18: Importance attached attached
Figure 18: Importance to soft to
skills by category
soft skills by categoryofofemployees
employees
Communication
91
Percentage of respondents
100
75
80 62
60
32
40 23
20 9 4 1 0 2 1 1
0
Extremely Important Not Important Not
Important at all required/Not
applicable
Worker Specialised Worker Professional staff
Ability to work in team 25

90
Important at all required/Not
applicable
Ability to work in team

90
90
81
80
70
57
60
50
37
40
30
18
20
8
10 4 2
1 1 1 1
0
Extremely Important Not Important at Not required/Not
Important all applicable
Page 42 of 108
Ability to innovate and create
89
90
80
70 62
60
50
40 31 32
30 24 24
20
20
10
6
10 1
0
Ability to understand needs of customers
70
70
60
50
38
40
27 27
30
17 18
20
10 3
1
0
Worker Specialised Worker
26
4.5.1. Scarcity Areas
A significant number of Manufacturing professionals do have academic qualifications that provide

a solid foundation to secure a job. During the survey, employers stated that they were facing
difficulties in recruiting people with:
ACCA Final/BSc Finance
BEng Electrical Engineering
BEng Mecatronic, Refrigeration Technician, Electro-Technician
BSc Agriculture
BEng Mechanical Engineering
BSc Chemical Engineering
BSc Marketing
BSc Social Studies/BSc Psychology
Butter and Margarine Technologist
Diploma in Electromechanical Engineering
Diploma in Graphic Design (Textile)
Diploma in Instrumentation and Process Control Technology (First Division)
ICSA
MSc Information Technology
NTC in Painting
Vocational courses in automatisation
4.5.2. Difficulty filling jobs
Employers stated the reasons as to why it was difficult to recruit skilled labour. The reasons are
tabulated in Table 13 according to the highest degree of importance.
27
Table 13: Reasons stated by employers as to why it is difficult to recruit skilled labour in Mauritius
1. Adaptability problem. Not prepared to 23. Lack of incentives in some sectors

work in the Manufacturing environment
24. Lack of investment in
2. Ageing population training and development
3. Attractive overseas job offers 25. Lack of policies regarding

development of human resourses
4. Bad work attitude
26. Lack of soft skills
5. Better jobs are offered in call centres/
emerging sectors/overseas 27. Lack of specialised skills
6. Brain drain 28. Lack of work ethics
7. High salary expectations 29. Language problem when recruited from abroad
8. Companies cannot afford to 30. Lack of commitment

pay salary of skilled labour
31. Mismatch between skills
9. Companies with restricted financial situation required and skills available
have to recruit in nearby region only
32. No proper training needs
10. Competition from big companies too severe analysis has been conducted
11. Complicated procedure to recruit expatriates 33. No proper training structure existed in the past
12. Lack of job security 34. No training exist to cater

for small enterprises needs
13. Education system is focused on
academic syllabus and not enough 35. Not enough emphasis on vocational
on technical and manual skills training by government agencies
14. Emphasis has not been on 36. People not performance driven
training for the required skills
37. People are no longer interested to learn trades
15. Employers not interested to train local
people as foreign labour is cheaper 38. People are overqualified
16. Government not putting much 39. Political interferences

emphasis on skill development regarding public sector jobs
17. High job mobility 40. Skilled labour not fully versatile
with emerging technologies
18. Hours of work not motivating
41. Skilled labour prefer to
19. Human resource development is very open their own business
poor. No research and development
42. There is no link between employers
20. People are only interested and educational institutions
to work in white collar job
43. Unattractive working environment
21. Lack of career guidance
44. Unfavourable conditions of employment
22. Lack of experienced people
28
The suggestions by employers regarding measures to reduce mismatch of labour are tabulated in
Table 14 according to the highest degree of importance.
Table 14: Suggestions by employers regarding the measures to reduce mismatch

Suggestions by employers regarding Proposed to be
the measures to reduce mismatch implemented by
Adapt educational system to work place exigencies Government

Better facilities to import foreign labour Government
Better link between employers and training institutions Government
Career fair all around the island Government
Career guidance at school Government
Centralise information on demand and supply of labour Government
Conduct regular surveys to assess labour market needs Government
Create a good working culture Government
Create job opportunities for those underemployed Government
Create more job opportunities for skilled labour Government
Create more professional vocational training institutions Government
Create more training centre Government
Discourage talented people to leave the country to work abroad Government
Encourage big companies to have their own training academy Government
Encourage people to be multi-skilled Government
Encourage people to join vocational training institutions Government
Encourage people to learn skills Government
Encourage secondary school leavers to pursue tertiary education Government
Encourage students to choose science subjects at secondary level Government
Encourage woman to acquire skills and take up jobs traditionally
reserved for men Government
Establish parity in wages Government
Exchange programmes between technical and academic schools Government
to learn the different cultures
Focus on child development Government
Help small enterprises to grow so that they can employ skilled people Government
Invest in human resource development Government
Learn from countries who successfully dealt with the mismatch problem Government
Promote foreign languages Government
Promote meritocracy Government
Promotion of civic education Government
29
Suggestions by employers regarding Proposed to be

the measures to reduce mismatch implemented by
Set up appropriate infrastructure for life long learning Government

Assess where training is required and set up appropriate courses HRDC
Conduct regular studies on labour market evolution HRDC
Organise job fairs HRDC
Human resource development at sectoral level HRDC
Offer more vocational training HRDC
Placement of students in industries HRDC
Provide training facilities HRDC
Adopt critical recruitment to select the best Private Sector
Adopt job rotation so that employees can learn different skills Private Sector
Continuous on the job training Private Sector
Continuous training of employees Private Sector
Create appropriate jobs Private Sector
Development of team spirit to allow knowledge sharing Private Sector
Right work attitude Private Sector
Encourage employees to learn new skills by offering them incentives Private Sector
Encourage multi-tasking jobs Private Sector
Promote meritocracy Private Sector
Provide incentives to workers so that they develop self learning abilities Private Sector
Recognition of skills acquired and planning for upgrade Private Sector
Recruit expatriates Private Sector
Review TNA practice Private Sector
30
4.6. Skills development initiatives
4.6.1. Budget allocation for training
The survey revealed that budget allocated for training was quite low and in many cases inexistent.
The results of this study had painted a grey picture of the status of skills development of this sector.
Table 15 confirms the low provision of training budget with almost 50 percent of organisations
having no training budget at all. This is a common feature to most countries.
Table 15: Percentage of budget allocated to training by organisations
Percentage of total Number of Percentage of

budget allocated organisations organisations
to training

None 92 50.9
1-3 2 0.5
5 or more 90 48.6
4.6.2. Preferred mode for acquiring skills
The most preferred means of acquiring skills remained on-the-job training followed by In-house
training and Tailor-made courses. The preference for on-the-job training might be the cause of
not earmarking a training budget. As informal training is not generally approved/recognised by
the Mauritius Qualifications Authority (MQA), it cannot be refunded through the Levy Grant System
of the HRDC. Diploma/Degree courses, E-learning and overseas training were least popular. The
results are presented in Table 16.
Table 16: Preference (top five) for acquiring the required skills for the organisation
Most Second most Third most Fourth most Fifth most

preferred preferred preferred preferred preferred
(%) (%) (%) (%) (%)

On the job 49 25 13 7 6
In-house 27 39 16 11 7
Learnership 10 20 21 23 26
Tailor-made courses 17 12 41 19 12
Seminars 4 15 28 38 15
Certified short course 7 8 14 32 39
Diploma 19 17 22 22 19
Degree 24 29 10 10 29
E learning 25 25 50
Overseas Training 7 7 14 7 64
31
E learning 25 25 50
A Overseas
Study onTraining
Labour Shortage7 in the 7
Manufacturing 14
sector in Mauritius 7 64
4.6.3. Skills development initiatives
4.6.3. Among
Skills development initiatives
those who implemented skills development initiatives (representing 55
percent of employers), more than three quarter (78 percent) used training as a
Among those who implemented skills development initiatives (representing 55 percent of
measure to curb skills shortage while improving wages was used by 32
employers), more than three quarter (78 percent) used training as a measure to curb skills shortage
while percent.
improvingRecruiting
wages was new employees
used by with
32 percent. necessary
Recruiting new skills and with
employees re-training was
necessary skills and
re-training was
adopted adopted
by reportby around
around1 states 25 percent
25 percent of employers
of employers followed by other
followed by ofotherpopular initiatives.
popular
The recent German that "against the background the demographic
The results are presented in Figure 19.
situationinitiatives.
as well as The results areand
structural presented in Figure
economic 19.an increasing demand for skilled
change,
Figure 19:Figure 19: Initiatives
Initiatives to address skills
to address skills shortage amongamong
shortage existing employees
existing employees
labour is the emerging trend", requiring people to have an "ability to engage in lifelong
learning". It then diplomatically notes that "some school leavers do not have the
Training 78
required training maturity".
Improve wages 32
Among those who

Recruit new didpossessing
employees not have anyskillsexisting initiatives
the necessary 26 45 percent said that
they did not plan to address theRe-training
skills shortage of
25 existing employees. This
observation was in fact in line with what employers

Up-skilling 18 said that a large majority
did not face any labour
Improveshortage. However, enterprises
benefits(non financial) 14 are not adequately
investing in skills development, at least 0through
10 20a proper
30 40 planning
50 60 in
70 the
80 wake
Percentage
of new challenges. One can also see the lack of initiatives in developing
The recent German report1 states that against the background of the demographic situation as well as structural and
existing
economicemployees to meet
change, an increasing demand future skills
for skilled labourrequirements.
is the emerging trend, requiring people to have an ability
to engage in lifelong learning. It then diplomaticallyPage
notes
49 ofthat
108 some school leavers do not have the required training
maturity.
Skills development is an extremely powerful tool in the arsenal of any
Among those who did not have any existing initiatives 45 percent said that they did not plan to
organisation but then
address the skills it of
shortage requires unequivocal
existing employees. This commitment
observation was and support
in fact at the
in line with what
employers said that a large majority did not face any labour shortage. However, enterprises are
highest levels ofinvesting
not adequately the organisation structure
in skills development, and through
at least non-negotiable adherence
a proper planning to itsof
in the wake
new challenges. One can also see the lack of initiatives in developing existing employees to meet
success requirements throughout all levels of the organisation. Yet, merely 44
future skills requirements.
percent of organisations in the Manufacturing sector had a strategic skills
Skills development is an extremely powerful tool in the arsenal of any organisation but then
development plan as shown
it requires unequivocal in Figure
commitment and 20.
support at the highest levels of the organisation
structure and non-negotiable adherence to its success requirements throughout all levels of the
organisation. Yet, merely 44 percent of organisations in the Manufacturing sector had a strategic
skills development plan
Figure 20:as shownskills
Strategic in Figure 20. plan for the organisation
development
Figure 20: Strategic skills development plan for the organisation
Yes
No 44%
56%
1
Ten Guidelines for the Modernization and Structural Improvement of Vocational Education and Training, Federal Ministry of Education
and Research, Berlin, 2007, pages 12 and 14.
32
1
"Ten Guidelines for the Modernization and Structural Improvement of Vocational Education and Training", Federal Ministry of Education and
Research, Berlin, 2007, pages 12 and 14.
A Study onFund
4.6.4. Use of the National Training Labour Shortage
(Levy in the Manufacturing sector in Mauritius
Grant System)
The Levy Grant System is among the spectrum of training incentives available
4.6.4. Use of the National Training Fund (Levy Grant System)
in Mauritius to facilitate training. This survey found that 55 percent of
4.6.4.
The Levy UseGrant
of the National
SystemTraining Fund (Levy
is among the Grant System)of training incentives available
spectrum
organisations of the Manufacturing sector did not make use of this training
in The
Mauritius
Levy Grantto facilitate
System is amongtraining. This
the spectrum survey
of training foundavailable
incentives that in55Mauritius
percent to of
incentive as presented in Figure 21.
facilitate training. This survey found that 55 percent of organisations of the Manufacturing sector
organisations of the Manufacturing
Figure sector
21: Use of the Levy Grant did not
System provided make use of this training
by the HRDC
did not make use of this training incentive as presented in Figure 21.
incentive as presented in Figure 21.
Figure 21: Use of the Levy Grant System provided by the HRDC
Figure 21: Use of the Levy Grant System provided by the HRDC
Yes
No
45%
55%
Yes
No
45%
55%
4.6.5. Training Needs Analysis

The proportion of organisations conducting training through a thorough needs
assessment was still low. This is inferred through the poor level of planning
4.6.5.
4.6.5. TrainingNeeds
Training NeedsAnalysis
Analysis
pertaining to skills development. 62 percent (Figure 22) did not conduct a
The
Theproportion
Training Needs
proportion ofof organisations
Analysis (TNA)
organisations conducting
thus
conducting resulting
training training
in mainly
through through
ad-hoc
a thorough atraining
needs thorough needs
that
assessment was
still low. This is inferred through the poor level of planning pertaining to skills development. 62
assessment
may not be was still low.
necessarily This
based on is
theinferred
industry through
current andthefuture
poor requirements.
level of planning
percent (Figure 22) did not conduct a Training Needs Analysis (TNA) thus resulting in mainly ad-hoc
pertaining
Among theto
training that skills
may
range ofdevelopment.
not be necessarily
incentives based
foron62 percent
the industry
promoting (Figure
current
training and 22)requirements.
infuture did not
Mauritius, conduct
Among
the HRDC a
the range of incentives for promoting training in Mauritius, the HRDC has also made provision for
Training
has
refund toNeeds
also Analysisconducting
made provision
support companies (TNA)
for refundthus resulting
to support
Training in mainly
companies
Needs Analysis. ad-hoc training
conducting Training that
Needs
may notAnalysis.
be necessarily based on the industry current and future requirements.
Figure 22: Do you carry out any TNA before training your employees?
Among the range of incentives for promoting training in Mauritius, the HRDC
has also made provision for refund to support companies conducting Training
Needs Analysis. Yes
38%
Figure 22: Do you carry
No out any TNA before training your employees?
62%
Yes
38%
No
62%
4.7. Recruitment and retention of employees

Page 51 of 108
The issues at hand include both skills shortage as well as lack of required number of people
interested in joining the sector. In the face of such serious skill shortages, it is expected that
firms would implement active policies to improve the situation. However, it should be noted that
the career route possible for people to join the Manufacturing sector is anyway restricted which
does not make this sector attractive for job seekers but it serves more of an chappatoire for a
temporary job. Page 51 of 108
33
Firms interviewed were asked about their methods of recruitment. Many relied
A Study
largely on oninformal
Labour Shortage in the Manufacturing
channels, sectorword
particularly in Mauritius
of mouth but preferred
advertisements in newspapers. This sector did not have much recourse to
private recruitment agencies. Training and internal promotion had not been
4.7.1. Recruitment channels
mentioned as recruitment strategies, indicating a weakness in the progression
Firms interviewed were asked about their methods of recruitment. Many relied largely on informal
of channels,
employees.
particularly word of mouth but preferred advertisements in newspapers. This sector
did not have much recourse to private recruitment agencies. Training and internal promotion
had not been mentioned as 21:
Figure recruitment strategies,
Most preferred method of indicating
recruitment a weakness in the progression of
employees.
Newspapers 34
Networking (word of mouth) 25
Private recruitment agencies 20
Government (Ministry of Labour & IR NEF databases) 12
Headhunting 5
TV 2
Others include
Other 1 MITD
0 5 10 15 20 25 30 35
4.7.2. Skills and qualities employers look for when recruiting new employees
As depicted in Tables 17 to 19, for all three categories of employees, experience was placed before
qualifications by firms. Other requirements were mainly good work attitude and technical skills.
Table 17: Skills and qualities employers look for when recruiting Workers
Page 52 of 108
Skills and qualities Most Second Third Fourth Fifth Difficulty
preferred most most most most in
preferred preferred preferred preferred Total finding
(%) (%) (%) (%) (%) (%)
Past experience 44 11 12 9 8 84 18
Work attitude 23 19 19 15 10 86
Technical skills 14 20 15 15 8 71 4
Communication 5 15 11 12 8 51
Educational qualification 3 10 8 10 15 45 0.5
Decision making 2 6 9 6 11 34 2
ICT 2 6 11 9 7 34 0
Analytical skills 2 1 2 3 8
Foreign language 1 1 1 2
Management skills 1 1 2 4
Affiliation 1 1
34
Table 18: Skills and qualities employers look for when recruiting Specialised worker

(%) (%) (%) (%) (%) (%)
Work attitude 10 12 10 18 21 72 14
Communication 1 7 8 14 13 43 2
Educational qualification 19 19 8 9 7 62 1
ICT 1 5 18 3 9 36 2
Analytical skills 9 8 5 22 2
Foreign language 1 2 2 1
Management skills 2 2 1 1 4 10
Affiliation 1 1 2
Table 19: Skills and qualities employers look for when recruiting Professional Staff

(%) (%) (%) (%) (%) (%)
Work attitude 6 4 4 12 9 34 2
Communication 1 5 10 7 6 29 2
Educational qualification 34 21 5 4 5 69 2
ICT 2 3 9 4 3 21 0
Analytical skills 2 3 16 9 7 36 3
Foreign language 1 1 1 2 0
Management skills 6 2 12 12 29 61 5
Affiliation 2 2 2 3 4 13 0
35
Affiliation 2 2 2 3 4 13 0
4.7.3. Difficulties in retaining skilled employees
It is perceived that the Manufacturing sector is prone to high labour turnover

or labour mobility within the sector.
It is perceived that the Manufacturing sector is prone to high labour turnover or labour mobility
Contrary to sector.
within the this perception, this study shed light on the fact that the
Manufacturing sector as a whole might not be facing difficulties in retaining
Contrary to this perception, this study shed light on the fact that the Manufacturing sector as a
skilled labour
whole since
might not the study
be facing found
difficulties that 78skilled
in retaining percent ofsince
labour respondents were
the study found able
that 78
percent of respondents were able to retain their skilled people as shown in Figure 23.
to retain their skilled people as shown in Figure 23.
Figure 23: Does your organisation face any difficulty in retaining skilled people?
Yes
22%
No
78%
Those facing difficulties to retain employees stated the following barriers to retain their skilled
employees:
Page 54 of 108
Demand for higher pay by employees;
After gaining experience, employees leave in order to start their own business;
Employees leave for other benefits;
Poaching by other companies who can pay better wages; strong temptation to join the
Government sector;
Lack of new contracts and expansion of the business;
Being young, they easily get better offer elsewhere; and
Employees are reluctant to work on flexi-time or shift system
4.8. Measures proposed to fill skills gap

Employers were requested to propose measures that could fill the skills gap mentioned during the
study. Measures cut across the education and training system and Government policies amongst
others.
36
4.8.1. Education and Training system
Manufacturing skills cannot be solely acquired in a classroom. The industry in Mauritius tends to
use the age-old system of on-the-job training, which in combination with classroom instruction
is considered to be the best way to transfer knowledge and skills. The unstable nature of the
sector makes it difficult to plan and organise training in a more systematic way. Yet, 54 percent
of respondents proposed teaching more practical workplace skills followed by improvement in the
quality of education. Thus, apprenticeship schemes could be incorporated in the curriculum to
bridge the gap between training and requirement of employers and legislations amended to make
it mandatory for employers.
The industry covers a broad range of activities and hence calls for a broad range of skills. Each sub-
activity has unique characteristics and training needs. Some are more dynamic, more technology
intensive. Hence the need for training courses should be designed with more
driven while others are more labour intensive. Hence the need for training courses should be
focus
designedonwith
workplace skills.
more focus on workplace skills.
Figure 24: Percentage

Figure of respondents
24: Percentage who
of respondents whoranked thefollowing
ranked the following recommendations
recommendations among
among top threetop three
Teach more practical workplace skills 54
Improve quality of education 33

Recommendations
Require higher standards for students to pass 32
Offer courses that are relevant 28
Pay higher salaries to teachers 23
Better links with employers 18
0 10 20 30 40 50 60
Percentage
4.8.2. Government Policies

4.8.2. major
Two Government Policies
concerns of employers today are finding right workers and giving
them theconcerns
Two major appropriate training.
of employers todayThe difference
are finding between
right workers the skills
and giving required
them the by
appropriate
training. The difference between the skills required by employers and the skills possessed by the
employers and the skills possessed by the applicants very often do not match.
applicants very often do not match. While employers would prefer to hire people who are trained
While employers
and ready would
to go to work, theyprefer to hire
are usually people
willing whothe
to provide are trained and
specialised, readytraining
job-specific to go
necessary for those lacking such skills. Most discussions concerning todays workforce turn to
to work, they
employability areThus
skills. usually
there willing
is a needto
forprovide
effectivethe specialised,
job placement job-specific
as pointed out by 48training
percent
of respondents;
necessary forthis could lacking
those also be incorporated
such skills.in the legislation.
Most discussions concerning today's
workforce
There exists turn to employability
a mismatch skills. facilities
between the training Thus there is aand
available need for effective
the skills job
that employers
require.
placement as pointed out by 48 percent of respondents; this could also be
incorporated inenrolment
The need to raise the legislation.
in universities was also felt by 46 percent of respondents.
There exists a mismatch between the training facilities available and the skills
that employers require.
37
Figure
Figure 25: Policies 25:Government
which the Policies which the Government
may consider to fill skills gapmay consider to fill skills gap
Provide more job placement 48
Raise enrolment in universities 46
Improve education standards 26

Policies
Increase spending in universities 23
Facilitate better communication 22
Raise enrolment in vocational training 22
0 10 20 30 40 50
Percentage
4.8.3. Areas of HR where assistance is required

Finding the Right Person, for the Right Job, at the Right Time and keeping
Finding the Right Person, for the Right Job, at the Right Time and keeping them is the greatest
them isSome
challenge. theorganisations
greatest challenge. Some organisations
will not be interested in adjusting their will not be
operation. Theyinterested
are likely to in
employ workers with lower skills and will continue to compete on pay, with the inherent churning
of adjusting
their labour their
force. operation. They responsive
In order to become are likelyto to employ
what workers
employees with
want and lower
invent skills
creative
responses
and willtocontinue
satisfy those needs, quality
to compete training
on pay, with programmes
the inherentmustchurning
be developed. The labour
of their main
HR areas, where assistance was required were indicated by the respondents and this included
force. In selection
recruitment, order to andbecome
retention, responsive
Assessment of to HRDwhat
climateemployees
and Trainingwant
planningand invent
depicted
in creative
Figure 26. responses to satisfy those needs, quality training programmes must
be developed. The main HR areas, where assistance was required were

Figure 26: Areas in HR where organisations would like to have training and / or assistance
indicated by the respondents and this included recruitment, selection and
retention, Assessment of HRD climate and Training planning depicted in Figure
26. Recruitment, Selection and Retention 30
Assessment of HRD climate 23
Training planning 18
TNA 14
Performance management 13
Areas
Career and talent management 10

Manpower forecasting 9
HR planning 8
Reward management 8
Succession planning 5
Training Evaluation 4
Page 57 of 108
0 5 10 15 20 25 30
Percentage
38
4.8.4. Advice to those wishing to join the Manufacturing sector
4.8.4. Advice to those wishing to join the Manufacturing sector

It is worth stating that employers are not merely looking for qualifications but
Across all industries, the complexity of jobs is increasing. Apart from the upgrading of the skill
for level
skillsdemanded
as well. It labour
in the is idealistic to have allandthe
market, technological employability
occupational changes traits in an
induce shifts in the
type of skills required (Green et al. 2000). Many policy makers and experts argue that low-skilled
individual
workers but thebenefit
can also latterfrom
should be prepared
the changes to learn
in the demand practical
for skills skills additional
if they receive as pointedtraining
out (Acemoglu & Pischke,
by 31 percent 1999). Scoring good marks and having a sound educational qualification has
of respondents.
been advised by 57 percent of employers.
The pattern
Lindbeck of development
& Snower (2000) of Mauritius
argued has led
that, to a dramatic
in addition, moretransformation of the
flexible and economy.
multi-
Employers are also looking for specialised qualifications. Students therefore must acquire more
skilled
than workers
one degree,are
have required. This and
overseas exposure is unfortunately confirmed
also excel in schooling. This hasby only
been 32 by a
advised
percentage of respondents (39 percent) and it shows that academic focus is still there.
percent of respondents who advised multi-skilling for people to secure a good
job.It is worth stating that employers are not merely looking for qualifications but for skills as well. It
is idealistic to have all the employability traits in an individual but the latter should be prepared
The primary concern of employers lies in finding employees with a good work
to learn practical skills as pointed out by 31 percent of respondents.
ethic and appropriate social behaviour, i.e., reliable, good attitude, pleasant
Lindbeck & Snower (2000) argued that, in addition, more flexible and multi-skilled workers are
appearance andisgood
required. This personality.
unfortunately It is
confirmed by clear
only 32that theofnew
percent recruit who
respondents should also
advised multi-
skilling
have for peopleattitude
a positive to secure to
a good job.
continuous learning and in this respect, many
employers willconcern
The primary provide the necessary
of employers training.
lies in finding Thewith
employees newa good
recruit
workshould
ethic andshow a
appropriate
social
keen behaviour,
interest in hisi.e., reliable, development
personal good attitude, pleasant appearance
and training, and good personality.
be accountable, strive It is
clear that the new recruit should also have a positive attitude to continuous learning and in this
for respect,
quality.many
30 employers
percent will
of respondents of thetraining.
provide the necessary study The
required a right
new recruit shouldattitude
show a keen
interest in his personal development and training, be accountable, strive for quality. 30 percent
from employees.
of respondents of the study required a right attitude from employees.
Figure 27: Percentage of respondents who ranked the following advices among top three
Get good marks 57
Complete more than one degree 39
Try to be multi-skilled 32
Advice
Learn practical skills 31
Try to study overseas 30
Develop the right attitude 25
Choose courses that are demanded 25
0 10 20 30 40 50 60
Percentage
Page 59 of 108
39
40
Part B:
EOE SECTOR
41
5. Landscape of the EOE sector

5.1. EOE Sector
There were various stages - from a historical perspective - where the textile industry evolved from
being a domestic small-scale industry, to the status of supremacy it currently holds. The cottage
stage was the first stage in its history where textiles were produced on a domestic basis.
During the Industrial Revolution, new machines such as spinning wheels and handlooms came into
the picture. Textile quickly became an organised industry - as compared to the domesticated
activity it had been associated with before. A number of new innovations led to the industrialisation
of the textile industry in Great Britain. Clothing manufactured during the Industrial Revolution
formed a big part of the exports made by Great Britain. They accounted for almost 25 percent of
the total exports made at that time, doubling in the period between 1701 and 1770.
Today, modern techniques, electronics and innovation have led to a competitive, low-priced textile
industry, offering almost any type of cloth or design a person could desire. With its low cost labour
base, China has come to dominate the global textile industry.
5.2. The Mauritian EOE Sector
Mauritius is one of the most spectacular examples of economic development through EOE. A sugar
cane monoculture economy at independence in 1968, characterised by chronic dependency on
the sugar market, since the mid-1970s Mauritius has succeeded in progressively changing the
structure of its productive sector. The Mauritius Export Processing Zone (EPZ) was created in 1971
and although the relative importance of EPZ has declined since the early 1990s due in part to the
continued effort at diversification, it is a vital pillar of the Mauritian economy.
The textile industry, which is considered as one of the main pillars of the Mauritian economy, has
been facing serious problems. The strong rupee, recession in Europe and the rise in the price of
cotton is forcing local enterprises to revise their strategies so as to safeguard the industry.
A fall in receipts from Countries like United Kingdom and United States of America, which are the
main export markets for the island, has been noted making the situation difficult to manage and
adversely affecting businesses. The third country fabric has helped the country to enter markets
where fabrics are imported. The present situation of the textile industry shows an improvement
in orders and a stable price. A challenge which exists for enterprises is to ensure that customers
are satisfied with prices.
Our strong rupee, which is a cause of worry for local producers is also a problem. Also, other
countries are becoming more competitive than Mauritius. This will have an impact on other sectors
of the economy.
The textile industry needs affirmative actions although Mauritius, today, is among the highest
20 percent in the world in terms of cost. It is cost competitive against the following countries
where the textile sector still exists, namely Italy, Spain, Portugal, Greece, Turkey and Eastern
Europe. Most of the operators which remain in Mauritius are locally owned and are facing up the
challenges. Hence, there is a future for the Mauritian textile industry.
42
The Indian and Chinese economies, the two textile powerhouses, are growing at 8 percent to 10
percent annually, which should lead to some inflation and strengthening of their currencies versus
the Dollar and the Euro. This should help increase our relative competitiveness.
Why does Mauritius need the textile sector in the foreseeable future? There is consensus that a 6
percent to 7 percent GDP growth is desirable to keep employment at required levels. This will be
difficult, even impossible, to achieve if the textile sector shrinks by 10 percent annually.
5.3. Contribution of the EOE sector to the economy
Table 20:5.3.
Percentage Distribution
Contribution of Gross
of the EOE Domestic
sector Product at current basic prices, 2000-2012
to the economy
Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009* 2010 2011 * 2012 * *
Percentage Table 20: Percentage Distribution of Gross Domestic Product at current basic prices, 2000-2012
contribution Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009* 2010 2011 2012 * **
of the EOE sector

Percentage contribution of the EOE sector
to GDP
to GDP 11.4 11.2 10.411.4 9.2
* Revised figures
11.2 10.4 9.2 8.4 7.6 8.0 8.3 7.3
8.4 7.6 8.0 8.3 7.3 6.9 6.9 6.5 6.5 6.4
6.4 6.1 6.1
** Forecast
* Revised figures
Source: Adapted from National Accounts Estimates (2008 - 2011) December 2011 issue and National Account Historical series, Statistics Mauritius
** Forecast
Source: Adapted from National Accounts Estimates (2008 - 2011) December 2011 issue and National Account Historical
series, Statistics Mauritius
Figure 28: Percentage Distribution of Gross Domestic Product at current basic prices, 2000-2012
Figure 28: Percentage Distribution of Gross Domestic Product at current basic prices, 2000-2012
12
11.4 11.2
10
10.4
8 9.2
8.4 8.3
8.0
Percentage
7.6 7.3
6 6.9
6.5 6.4 6.1
4
0
1998 2000 2002 2004 2006 2008 2010 2012 2014
Year
5.4. Employment in the sector
5.4.1. Employment by size of establishment
The EOE sector employed around 46 488 people in 2010 (Digest of Labour Statistics 2010, Statistics
Mauritius). It comprised 19 059 males and 27 429 females.
The general trend in employment in the sector has been decreasing over the last 15 years as
Page 64 of 108
depicted in Figure 29. The sector was employing 86 482 people in 1991. Five years later, the
43
last 15 years as depicted in Figure 29. The sector was employing 86 482
people in on
A Study 1991. Five
Labour years
Shortage later,
in the the number
Manufacturing sectorofinemployees
Mauritius decreased to 80
373 representing a decrease of around 7 percent. From 1995 to 2010, the
number of people employed in the sector decreased by around 42 percent as
number of employees decreased to 80 373 representing a decrease of around 7 percent. From 1995
shown
to 2010,inthe
Table 21.of people employed in the sector decreased by around 42 percent as shown
number
in Table 21.
Figure 29: Trend in employment in the EOE sector in large establishments, 1991 2010
Figure 29: Trend in employment in the EOE sector in large establishments, 1991 2010
100000
90000
Number of employees
88920 90798
80000 86482 84930 84031 84475
81706 82516
79467
70000 74723
60000 65159
58271
50000
47956 46488
40000
1993
2006
1991
1992
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2007
2008
2009
2010
Year
Table 21: Employment (000) in the EOE sector by size of establishment, 1991-2010
Year Large
establishments
1991 86 482
1992 88 131
1993 84 930
1994 81 706
Page 65 of 108
1995 80 373
1996 79 467
1997 79 617
1998 84 031
1999 88 920
2000 88 157
2001 90 798
2002 84 475
2003 82 516
2004 74 723
2005 65 159
2006 64 362
2007 58 271
2008 57 898
2009 47 956
2010 46 488

44
Table 22: Rate of change in employment in the EOE sector, 1991-2010
Period Total
1991-1995 -7%
1995-2000 +9%
2000-2005 -26%
2005-2010 -28%
1995-2010 -42%
1991-2010 -46%
5.4.2. Employment by gender
As it is evident from Table 23 and flagged earlier, the EOE sector is female-dominated, most
particularly because of the nature of the activities involved. However, it can also be noted that
the ratio of male to female in this sector has been increasing slightly over time.
Table 23: Trend in employment in the EOE sector by gender, 1991-2010
Year Male Female Total Number of males for

every female employee
1991 28,265 58,217 86,482 0.49

1992 27,741 60,390 88,131 0.46
1993 24,994 59,936 84,930 0.42
1994 24,045 57,661 81,706 0.42
1995 23,253 57,120 80,373 0.41
1996 23,235 56,232 79,467 0.41
1997 24,782 54,835 79,617 0.45
1998 26,418 57,613 84,031 0.46
1999 29,054 59,866 88,920 0.49
2000 28,695 59,462 88,157 0.48
2001 29,779 61,019 90,798 0.49
2002 28,599 55,876 84,475 0.51
2003 27,397 55,119 82,516 0.50
2004 26,098 48,625 74,723 0.54
2005 23,901 41,258 65,159 0.58
2006 23,625 40,737 64,362 0.58
2007 22,443 35,828 58,271 0.63
2008 23,753 34,145 57,898 0.70
2009 20,106 27,850 47,956 0.72
2010* 19, 059 27,429 46,488 0.69
Source: Adapted from Digest of Labour Statistics 2010 and historical series, Statistics Mauritius 2011
*Provisional
45
5.4.3. Employment forecasts for the EOE sector, 2011-2015
Table 24: Future Trend in employment in the EOE sector, 1990-2015
Year Employment Trend
1990 86 482
1991 88 131
1992 84 930
1993 81 706
1994 80 373
1995 79 467
1996 79 617
1997 84 031
1998 88 920
1999 88 157
2000 90 798
2001 84 475
2002 82 516
2003 74 723
2004 65 159
2005 64 362
2006 58 271
2007 57 898
2008 47 956
2009 46 488
2010 45 020
2011* 43 552
2012* 42 084
2013* 40 616
2014* 39 148
2015* 37 680
Source: Data from 1990-2010 was obtained from CSO(2011) Digest of Labour Statistics 2010 & Historical Series on Labour
Statistics, Statistics Mauritius Website
Figures for years 2011 to 2015 have been forecasted
Based on the model, employment is expected to be 37 680 by 2015, representing a decrease of 16

percent from 2010 figures.
46
The list of companies operating in the EOE sector was obtained from the Levy Grant database 2011
and the National Human Resource Development Plan 2009 database. Companies were randomly
selected from the database ensuring representativeness of the sample through stratification
in terms of number of employees. Companies that could not be contacted (because of reasons
like change of name, closure or refusal to participate) were replaced by companies of similar
characteristics. Following the data collection, questionnaires were verified for completeness and
data entry in Statistical Package for the Social Sciences (SPSS) 18.0 ensued. The final database,
after data cleaning and validation, comprised entries for 97 companies and their main activities
are described in Table 25, on which the findings of the study were based.
Table 25 : Main activities of the EOE sector in the sample
Main activities
Embroidery
Finishing of textiles
Knitting, dyeing and finishing
Manufacture of readymade garments
Manufacture of wooven labels
Manufacture of collars, braids, cuffs, laces, ribbons, etc
Manufacture of garments
Manufacture of garments accessories
Manufacture of knitted fabrics, t-shirts, etc
Manufacture of ladies underwear
Manufacture of pullovers and other knitted garments
Manufacture of readymade garments other than woolen
Manufacture of seamless garments
Manufacture of shirts and trousers
Manufacture of shirts and woven garments
Manufacture of textile (Cuffs, collars)
Manufacture of t-Shirts, kids wears and casual wears
Manufacture of jeans
Manufacture of leather garments & accessories
Manufacture of pants and shirts
Manufacture of school uniforms
Manufacture of shirts, shorts and polo
Sampling of infant clothes
Spinning & finishing of textile products
Spinning, weaving and finishing of textile
Woven labels
Other Manufacturing EOE
47
6.1.1. Employee distribution by category
The three categories of employees, namely, Workers, Specialised workers and
6.1. Sector and
Professional employment
staff profile
were fairly well represented across the EOE firms, with the
Specialised workers
6.1.1. Employee and by
distribution Professional
category staff being employed in all the companies
followed by Workers employed by 98.9 percent of the companies.
The three categories of employees, namely, Workers, Specialised workers and Professional staff
were fairly well represented across the EOE firms, with the Specialised workers and Professional
staff
A being employed
stratification ofin the
all thetotal
companies
numberfollowed
of by Workers employed
employees by 98.9 percent
by employee of the
category
companies.
revealed that Workers comprised the major chunk, representing 57 percent of
A stratification of the total number of employees by employee category revealed that Workers
the workforce, followed by 37 percent of Professional Staff and 6 percent of
comprised the major chunk, representing 57 percent of the workforce, followed by 37 percent of
Specialised Worker.
Professional Staff (Figureof30).
and 6 percent Specialised Worker. (Figure 30).
Figure 30:30:
Figure Composition ofEOE
Composition of EOEsector
sector workforce
workforce
Professional
staff
37%
Worker
57%
Specialised
Worker
6%
Hence, it can be inferred that the current EOE sector workforce can be described basically as a
Hence,
low-skilleditworkforce.
can be inferred that the current EOE sector workforce can be
described basically
Figure 30 gives as display
a pictorial a low-skilled workforce.
of the proportion of different categories of staff per company
size. Since Specialised workers were in very large numbers in this sector it is quite obvious that
they were present in highest proportion in most of the companies, except for those with 6-10
Figure
employees30where
givesWorkers
a pictorial
were indisplay of the proportion
highest proportions; ofhaving
among those different categories
2-5 employees of
and 51-
100 employees there were nearly equal number of Specialised workers and Workers. Professional
staff per company size. Since Specialised workers were in very large numbers
staff was in smallest proportion in all employee size categories.
in
this sector it is quite obvious that they were present in highest proportion in
most of the companies, except for those with 6-10 employees where Workers
Page 71 of 108
48
Page 73 of 108
49
4.1.9.Terms
6.1.2. Terms
of of employment
employment (full-time
(full-time andand part-time
part-time employment)
employment)
The findings of the survey have shown that 68 percent of the companies employed
The findings of the survey have shown that 68 percent of the companies employed between 1
between 1 and 200 employees. (Figure 32). Those companies employing less than 10
and 200 employees. (Figure 32). Those companies employing less than 10 people on full-time
people on full-time
represented represented
only about only
5 percent of theabout 5 30
sample. percent
percentofofthe
thesample. 30had
companies percent of the
more than 200
full-time employees.
companies had more than 200 full-time employees.

30 27
25 21
20 17
Percentage
15 12
10
10 8
4
5 1
0
1 to 5 6 to 10 11 to 51 to 101 to 201 to 301 to Above
50 100 200 300 500 500
Number of full-time employees
Part-time employment in this sector did not seem to be common practice, with four
Part-time employment in this sector did not seem to be common practice, with four out of every
out
fiveof every
firms five firms
not employing anynot employing
part-time workers.any part-time
82 percent workers.
of the 82 percent
organisations of the
did not employ any
part-timers and 18 percent employed up to 9 part-time workers (Table 26).
organisations did not employ any part-timers and 18 percent employed up to 9 part-
time workers (Table Table
26). 26: Percentage of part-time employees in EOE firms

Table 26: Percentage of part-time employees in EOE firms
None 82
1 to 9 18
None 82
Total 100
1 to 9 18
Total 100
6.1.3. Expatriate workers
The total number of expatriates employed by the EOE firms was 9188. In the Professional staff
category, the least number of expatriates were employed.
Page 74 of 108
50
Table 27: Number of expatriates by employee category and main activity
Total number Worker Specialised worker Professional

of employees
Number of % Number of % Number of %
expats expats expats
24691 5143 20.8 3924 15.9 121 0.5
6.1.4. Educational Requirement
Educational qualification was not a prerequisite to be employed as a Worker in the EOE sector. Yet
a very small percentage (2 percent) had reached up to SC level.
The requirement to be employed as Specialised workers included vocational qualifications or

completion of academic studies up to secondary level. In a few cases, employers did not require
any qualification for such positions. Professional staff requirement varied mainly from SC/HSC
passed up to post-graduate degree.
Table 28: Percentage of organisations employing different categories of staff per minimum
educational level
Minimum educational Percentage of organisations employing

level required
Worker Specialised worker Professional staff
Education not important 30 1
Incomplete primary 24 3
CPE passed 27 10
Incomplete secondary 17 46 1
SC passed 2 26 10
HSC passed 9 43
Vocational qualification 4 11
Professional qualification 1 19
University diploma 10
Bachelor degree 3
Post-graduate 2
Total 100 100 100
51
6.1.5. Working experience as a requirement
As far as working experience (Table 29) was concerned, more than half of the companies surveyed
were of the view that experience was definitely necessary for Specialised workers whereas nearly
three quarter of respondents was of that opinion for Professional staff. Experience was not
necessarily a pre-requisite for workers.
Table 29: Experience required per employee category
Percentage of organisations
Level of experience required Worker Specialised worker Professional staff
Definitely require 21 56 73
6.2. Labour
Depends shortage status 49 41 27
Not atperception
Employers all on the extent29 of gravity of 3 labour shortage was gauged
Total 100 100 100
at three levels, namely the national level, sectoral level and organisational
level.
6.2. Labour shortage status
4.1.13. Perception
Employers about labour
perception shortage
on the extent at the national
of gravity of labour level
shortage was gauged at three levels,
namely the national level, sectoral level and organisational level.
A few questions in the questionnaire aimed at gauging the perception of
employers about labour shortage status across all sectors in Mauritius.
Notably, three
A few out inofthe
questions every four employers
questionnaire felt the
aimed at gauging that Mauritius
perception was experiencing
of employers about labour
shortage status across all sectors in Mauritius.
labour shortage at the national level. 54 percent felt that it was extremely
Notably, three out of every four employers felt that Mauritius was experiencing labour shortage at
severethe
compared to 43 percent who found it to be tolerable. The results are
national level. 54 percent felt that it was extremely severe compared to 43 percent who found
it to be
presented in tolerable.
Figure 33.The results are presented in Figure 33.
Figure
Figure33:
33:DoDo
you agree
you thatthat
agree Mauritius is experiencing
Mauritius labourlabour
is experiencing shortage?
shortage?
4.1.14. Perception of labour shortage in the EOE sector

71 percent of the respondents opined that the EOE sector was facing labour
52
shortage as highlighted in Figure 34. Among those who said that this sector
6.2.2. Perception of labour shortage in the EOE sector

No 71 percent of the respondents opined that the EOE sector was facing labour shortage as highlighted
29% Remaining
in Figure 34. Among those who said that this sector was enduring a labour shortage, 20 percent
were of the view that this situation would persist over the next 5 years.theHowever,
same 61 percent
of the respondents stated that this situation would get worse. Merely 19 percent
20% said that the
situation would improve.
Improving Worsenin
Yes 19% 61%
No 71%
29% Remaining
the same
20%
Improving Worsening
Yes 19% 61%
71%
1.15. Labour shortage within the company

st three quarter of the respondents indicated a labour shortage a
6.2.3. Labour shortage within the company
nal and at sectoral
4.1.15. level.
Labour shortage within theIn the EOE sector, only 52 perce
company
Almost three quarter of the respondents indicated a labour shortage at the national and at sectoral
ondents Almost
stated
level. three
In the that
EOE quarter
sector, only of
their the respondents
of respondentsindicated
52 organisations
percent were
stated that a labour
facing
their shortage
any were
organisations at
labourthe
facing shor
any labour shortage.
national and atThe result is depicted
sectoral level. inInFigure
the 35.
EOE sector, only 52 percent of
result is depicted in Figure 35.
respondents stated that their organisations were facing any labour shortage.
Figure 35: Do you have labour shortage in your organisation currently?
Figureis35:
The result Do you have
depicted labour
in Figure shortage in your organisation currently?
35.
Figure 35: Do you have labour shortage in your organisation currently?
No
No 48%
Yes
Yes
52%
48% 52%
6.3. Future labour requirement in EOE firms

48 percent stated that there would not be an increase in the number of
employees in their organisations in 2012 as depicted in Figure 36 implying that
Future labour requirement in EOE firms
only some 52 percent of companies would be recruiting in 2012.
percent stated that there would not be an increase in the numb
53
6.3. Future labour requirement in EOE firms
48 percent stated that there would not be an increase in the number of employees in their
organisations in 2012 as depicted in Figure 36 implying that only some 52 percent of companies
would be recruiting in 2012.
gure 36: Will there be a net increase in the number of employees in 2012 in organisations?
Figure 36: Will there be a net increase in the number of employees in 2012 in organisations?
No Yes
48% 52%
The top ten jobs in demand in the EOE sector according to those who would be recruiting were:
jobs in demand in the EOE sector according to those who woul
ere: Machine Operator
Sales and Marketing Manager
ne Operator
Embroider
Checker
and Marketing
Helper
Manager
Cartoning helper
oider Ironing worker

Hand Finisher
ker Packer
Store Clerk
r Colourist
Sewing mechanics
ning helper
Dyers
ng worker
Finisher
54
6.4. A Study
Labour shortage on Labourby
as defined Shortage in the of
employers Manufacturing
the sectorsector in Mauritius
In almost all cases, experience was coupled with qualifications in this sector.
As far as experience, which is closely tied to specialisation and expertise, is
6.4. Labour shortage as defined by employers of the sector
concerned, 45 of the respondents highlighted lack of people with required
In almost all cases,
sufficient experience
working was coupled
experience and with qualifications
qualification toinbe
thisthe
sector.
main cause of labour
As shortage as shown
far as experience, which isin Figure
closely 37.
tied to For 30 and
specialisation percent of is
expertise, respondents,
concerned, 45 oflabour
the
respondents highlighted lack of people with required sufficient working experience and qualification
shortage meant lack of people with working experience. 20 percent mentioned
to be the main cause of labour shortage as shown in Figure 37. For 30 percent of respondents,
thatshortage
labour labourmeant
shortage
lack ofwas due
people withtoworking
lack of motivation
experience. and interest
20 percent mentionedofthat
people
labour to
shortage was due to lack of motivation and interest of people to work in the sector coupled with
lowwork
salaryinpackages.
the sector coupled with low salary packages.
50
45
40
35
30
25 45
20
15 30
20
10
5 5
0
Lack of people Lack of people Lack of people Others
with both with required with
qualifications sufficient past qualifications
and past working only
working experience (certificates)
experience only
With regard to technical and soft skills 42 percent of the respondents described labour shortage
as a lack of technical skills while 34 percent opined that it was lack of soft skills as shown in
Figure 38.
With regard to technical and soft skills 42 percent of the respondents described
labour shortage
Figure as a lack
38: Description of technical
of labour shortage inskills
terms while
of lack 34 percent
of technical opined
and that it was
soft skills

lack of soft skills as shown in Figure 38.
45
40
35 42
30
25
34
20
15 23
10
5
0
Page 80 of 108
technical skills to do required soft skills both technical skills
the job (e.g attitude, team to do the job and
spirit etc.) soft skills
6.4.1. Reasons for the labour shortage in the EOE sector
Language proficiency, overtime, unfavourable conditions of work were among

the most cited reasons for labour shortage. The results are depicted in Figure 55
technical skills to do required soft skills both technical skills
A Study on Labour Shortage inthethejob
Manufacturing sector in Mauritius
(e.g attitude, team to do the job and
spirit etc.) soft skills

Language proficiency, overtime, unfavourable conditions of work were among
Languagethe most cited overtime,

proficiency, reasons forunfavourable
labour shortage. The results
conditions are were
of work depicted in Figure
among the most cited
reasons for
39.labour shortage. The results are depicted in Figure 39.
Figure 39: Reasons for Labour shortage in the EOE sector
Figure 39: Reasons for Labour shortage in the EOE sector
People are not sufficiently proficient in language 86

Employees not willing to work overtime 83
Unfavourable conditions of employment compared to other sectors 81
People have a negative opinion about this sector 75
Employees not willing to adopt flexi time 75
Low wages compared to other sectors 75
Not sufficient job security compared to other sectors 72
Employees not willing to work on shift 70
People do not have the right attitude towards work 69
Education system does not meet market demands 58
People are not sufficiently proficient in technical skills 50
People are not sufficiently proficient in ICT 42
People are not sufficiently proficient in numeracy 33
6.5. Current quality and level of skills in the EOE sector
0 10 20 30 40 50 60 70 80 90
In general, the majority of respondents said that their current employees (77
6.5. Current quality
percent and levelworkers,
of Specialised of skills 87
inPage
the 81 ofEOE
percent 108 sector
of Professional staff and 78 percent
of Worker) were satisfactorily meeting the basic skills requirements of the
In general, the majority of respondents said that their current employees (77 percent of Specialised
sector. This result is in line with the previous findings where employers
workers, 87 percent of Professional staff and 78 percent of Worker) were satisfactorily meeting
the basic expressed their views
skills requirements of regarding
the sector.labour shortage
This result is inatline
organisational level. findings where
with the previous
employers expressed their views regarding labour shortage at organisational level.
Figure 40: Status of skills among existing pool of skills in the EOE sector
Figure 40: Status of skills among existing pool of skills in the EOE sector
87
90
78 77
80
70
Percentage of companies
60
50
40
30
20 16
13 12
8 8
10
1 1
0
Meets basic Does not meet basic Requires upgrade Not appicable
requirements requirements
Worker Specialised Worker Professional Staff
56 Besides possessing the required qualifications, soft skills were not considered
to be equally important for the Worker category to perform better. The survey
Besides
Forpossessing the required
Professional staff, aqualifications, soft skills
similar tendency waswere not considered
observed to thatto of
be Specialised
equally
important for the Worker category to perform better. The survey revealed that soft skills were
worker
extremely categories
important where
for minority more
of the than 70
respondents percentinof
as depicted respondents
Figure 40. either found
that soft skills were either extremely important or important. Therefore, it can
For Professional staff, a similar tendency was observed to that of Specialised worker categories
wherebemoreconcluded that besides
than 70 percent technical
of respondents eitherand generic
found that softskills, soft either
skills were skillsextremely
are equally
important or important. Therefore, it can be concluded that besides technical and generic skills,
important for employees. In todays world of work, the human touch is
soft skills are equally important for employees. In todays world of work, the human touch is
becoming
becoming very important.
very important.
Figure 41: Importance attached to soft skills for Workers category

Figure 41: Importance attached to soft skills for Workers category
100
90
80
Communication
70
60
50 94
40
73
30 58
20
33 27
10 6 8 1
0
Extremely Important Important Not Important at all Not required/Not
applicable
Ability to work in team

100
90
80 88
70
73
60
63
50
40
30
33
20
23
10 11 2 3 1 2
0
applicable
Page 83 of 108
57
Ability to innovate and create

90
80
70
60
50
40 84
30
51
20 37
29 29 22
10 19 16 7 6
0
applicable
Ability to understand needs of customers

120
100
80
60
98
40 71
20
30 25 17 2 18 9 27 3
0
applicable
6.5.1. Scarcity Areas
A significant number of EOE professionals do have academic qualifications that provide a solid
foundation to secure a job. During the survey, employers stated that they were facing difficulties
in recruiting people with:
ACCA/ Degree or masters in Finance
BSc Management, MBA
Degree in Marketing
Certificate in Embroidery
Diploma in Occupational Health & Safety
Diploma or Degree in Textile Technology
NTC 3 - Electronic Page 84 of 108
58
6.5.2. Difficulty filling jobs
Employers stated the reasons as to why it was difficult to recruit skilled labour. The reasons are
tabulated in Table 30 according to the highest degree of importance.
Table 30: Reasons stated by employers as to why it is difficult to recruit skilled labour in Mauritius
1. Lack of job security

2. Salary offered is too low
3. Sector not attractive to work
4. Better offers and salary in other sectors
5. Work pressure in this sector is difficult to cope with
6. Jobs abroad more attractive
7. Lack of career prospect
8. People dont like to work in textile sector because of sector instability
9. Working conditions not favourable
10. Expatriates are bound to leave after some years
11. Better pay in emerging sectors
12. Most skilled workers come to work to gain experience and then they leave
13. Female employees leave due to social issues.
14. Staff leaving for emerging sectors like BPO and hotels where remuneration is better
15. Too much overtime
The suggestions by employers regarding measures to reduce mismatch of labour are tabulated
in Table 31 according to the highest degree of importance.
59
Table 31: Suggestions by employers regarding the measures to reduce mismatch
Suggestions by employers regarding Proposed to be implemented by

the measures to reduce mismatch
Provide training that meet labour market needs Government

More link-up programmes between countries for knowledge sharing Government
Focus more resources on human resource development Government
Invest more on vocational training Government
More information should be shared with the public about the labour market Government
Provide incentives to training institutions Government
The education system should match market demands Government
Conduct studies to identify scarce labour Government
Authority to stop giving concessions to the worker if unemployed Government
Set up specialised training centres Government
Motivate young people to learn skills Government
More seminars to be organised to sensitise youngsters about Government
labour market requirements
Formulate laws to make enterprises provide training upon recruitment Government
Remove barriers for offshore companies as they bring new expertise Government
Job placement to acquire experience and skills Government
Re-skilling of those who lost their job due to closures Government
Refund of training cost Government
Organise more job fairs Government
Discourage brain drain Government
Facilitate recruitment of expatriates Government
Raise enrollment in vocational intitutions Government
Equip vocational schools with latest technology and facilitites Government
Subsidise professional courses like ACCA Government
Provide loans and grants to people to acquire necessary skills Government
Proper career guidance at college level Government
Revalorise jobs in textile sector Government and private sector
Need to re-brand textile sector Government and private sector
Organise orientation program for unemployed skilled people Government and HRDC
Better communication between employers Government, Educational
and educational institutions institutions, Private sector
Encourage people to be multi-skilled Government and private sector
60
Suggestions by employers regarding Proposed to be implemented by

the measures to reduce mismatch
Condust survey on demand of skilled labour HRDC

Provide specialised training schemes HRDC
Awareness programme in schools HRDC
Organise more workshops HRDC
Job fairs in schools HRDC
Financial help for conducting training HRDC
Evaluate labour market requirements regularly HRDC
Closer cooperation between employers and training institutions HRDC and Employers
Organise regular forums to bring together job seekers and employe HRDC and Employers
Emphasis on career guidance HRDC, Government
Surveys on available workforce in mauritius HRDC, Statistics Mauritius
Innovate according to demand Private and Public sector
Diversify activities Private and public sector
Design appropriate recruitment strategy Private and public sector
Offer work according to resources available Private and public sector
Ensure that proper salary packet is proposed for skilled labour Private sector
Lay more emphasis on workplace skills Private sector
Provide on the job training Private sector
Re-skilling of existing employees Private sector
Offer attractive fringe benefits to motivate workers
to acquire required skills Private sector
Recruit foreigners as last resort Private sector
Job rotation so that employees acquire different skills Private sector
More publicity on job available on TV and newspaper Private sector
Provide relevant courses Training institutions
Teach more practical than theory Training institutions
Better cooperation between educational
institutions and employers Training institutions
Career guidance Training institutions
Tailor training programmes to cater for labour market needs Training institutions
More research and development Training institutions
Reduce cost of university courses Training institutions
61
6.6. Skills development initiatives
6.6.1. Budget allocation for training
The survey revealed that budget allocated for training was quite low and in many cases inexistent.
The results of this study had painted a grey picture of the status of skills development of this sector.
Table 32 confirms the low provision of training budget with around 50 percent of organisations
having no training budget at all. This is common to most countries.
Table 32: Percentage of budget allocated to training by organisations
Percentage of total Number of organisations Percentage of organisations

budget allocated
to training
None 45 50
1-3 19 21
4-5 21 23
More than 5 5 6
6.6.2. Preferred mode for acquiring skills
The most preferred means of acquiring skills remained on-the-job training followed by certified
short courses. The preference for on-the-job training might be the cause of not earmarking
a training budget. As informal training is not generally approved/recognised by the Mauritius
Qualifications Authority (MQA), it cannot be funded through the Levy Grant System of the HRDC.
Diploma/Degree courses, E-learning and overseas training were least popular. The results are
presented in Table 33.
Table 33: Preference (top five) for acquiring the required skills for the organisation
Most Second Third Fourth Fifth

preferred most most most most
preferred preferred preferred preferred
(%) (%) (%) (%) (%)

On-the-job 56 31 6 6 2
In-house 31 35 19 8 8
Seminars 10 18 29 24 20
Tailor-made courses 12 14 26 23 25
Learnership 2 6 39 26 27
Certified short courses 3 35 9 29 24
Degree 17 58 25
Diploma 50 13 38
E-learning 29 71
Overseas training 25 25 50
62
6.6.3. Skills development initiatives

Among those
6.6.3. Skills who implemented
development initiatives skills development initiatives (representing 64
percent of employers), more than 50 percent used training as a measure to
Among those who implemented skills development initiatives (representing 64 percent of employers),
curb skills
more than shortage
50 percent while asimproving
used training wages
a measure to curb was used
skills shortage by 41 wages
while improving percent.
was
used by 41 percent. Recruitment of new employees already having necessary skills was envisaged
Recruitment oforganisations.
by 33 percent of new employees already
The results having innecessary
are presented Figure 42. skills was envisaged
by 33 percent of organisations. The results are presented in Figure 42.
Figure 42: Initiatives to address skills shortage among existing employees
Figure 42: Initiatives to address skills shortage among existing employees
Training 55
Improve wages 41
Recruit new employees possessing the necessary skills 33
Improve benefits(non financial) 15
Re-training 15
Up-skilling 13
0 10 20 30 40 50 60
Percentage
Among those who did not have any existing initiatives, a wide majority (53 percent) said that they
did not plan to address the skills shortage of existing employees. This observation was in fact in
Among those who did not have any existing initiatives, a wide majority (53
line with what employers said that a large majority did not face any labour shortage. However,
percent)
enterprisessaid that
are not they did
adequately not plan
investing to development,
in skills address theat skills shortage
least through of existing
a proper planning
in the wake of new challenges. One can also see the lack of initiatives in developing existing
employees. This observation was in fact in line with what employers said that a
employees to meet future skills requirements.
large majority did not face any labour shortage. However, enterprises are not
Skills development is an extremely powerful tool in the arsenal of any organisation but then it
adequately investing
requires unequivocal in skillsand
commitment development, at least
support at the highest through
levels a proper planning
of the organisation structure
inandthe
non-negotiable
wake adherence
percentofof new
to its success
challenges.
organisations
requirements
One
in the EOEcan
throughout
also
sector hadsee
all levels
the lack
a strategic
of
ofthe
skills
organisation.
initiatives
development in
Yet, merely 49 percent of organisations in the EOE sector had a strategic skills development plan
developing
as shownplan existing
43. employees
as shown
in Figure in Figure 43.to meet future skills requirements.

Skills development is an extremely powerful tool in the arsenal of any
organisation but then it requires unequivocal commitment and support at the
highest levels of the organisation structure and non-negotiable adherence to its
success requirements throughout
No all levels of
Yesthe organisation. Yet, merely 49
51% Page 89 of 108 49%
63
6.6.4. Use of the National Training Fund (Levy Grant System)
A6.6.4.
StudyUse
on of
Labour Shortage
the National in theFund
Training Manufacturing sector in Mauritius
(Levy Grant System)
The Levy Grant System is among the spectrum of training incentives available
in Use
6.6.4. Mauritius to facilitate
of the National Trainingtraining. This
Fund (Levy survey
Grant found
System) that 48 percent of
organisations of the EOE sector did not make use of this training incentive as
The Levy Grant System is among the spectrum of training incentives available in Mauritius to
presented in Figure 44.
facilitate training. This survey found that 48 percent of organisations of the EOE sector did not
make use of this training incentive as presented in Figure 44.
Figure Figure
44: Use of of
44: Use the
theLevy Grant
Levy Grant System
System provided
provided by the HRDC
by the HRDC
No
6.6.5. Training Needs Analysis 48%
Yes
52%
The proportion of organisations conducting training needs assessment prior to
training was still low. This is inferred through the poor level of planning
pertaining to skills development. 60 percent (Figure 45) did not conduct a
Training Needs Analysis (TNA) thusPageresulting
90 of 108
in mainly ad-hoc training that
6.6.5. Training Needs Analysis
may not be necessarily based on the industry current and future requirements.
AmongThethe
proportion
rangeofof
organisations
incentives conducting training needstraining
for promoting assessmentin
prior to training was
Mauritius, thestill
HRDC
low. This is inferred through the poor level of planning pertaining to skills development. 60 percent
has also made
(Figure 45) didprovision
not conduct afor refund
Training Needs as support
Analysis forresulting
(TNA) thus conducting
in mainly Training Needs
ad-hoc training
that may not be necessarily based on the industry current and future requirements. Among the
2
Analysis
range. of incentives for promoting training in Mauritius, the HRDC has also made provision for
refund as support for conducting Training Needs Analysis2.
Yes
40%
No
60%

The issues at hand include both skills shortage as well as lack of required
number of information
Further
2
peopleon incentives
interestedis availablein joining
at the the
HRDC Website sector. In the face of such serious
at www.hrdc.mu
skill
64
shortages, it is expected that firms would implement active policies to
improve the situation. However, it should be noted that the career route
The issues at hand include both skills shortage as well as lack of required number of people
interested in joining the sector. In the face of such serious skill shortages, it is expected that firms
would implement active policies to improve the situation. However, it should be noted that the
career route possible for people to join the EOE sector is anyway restricted which does not make
this sector attractive for job seekers but it serves more of an chappatoire for a temporary
job.
6.7.1. Recruitment
6.7.1. channels
Recruitment channels
Firms interviewed were asked about their methods of recruitment. Many relied
Firms interviewed were asked about their methods of recruitment. Many relied largely on
largely onin advertisements
advertisements in newspapers.
newspapers. This sector Thisrecourse
did not have much sectortodid notrecruitment
private have much
agencies.
recourse to private recruitment agencies.
Figure 46: Most preferred method of recruitment
Figure 46: Most preferred method of recruitment
Newspapers 44
Government (Ministry of Labour & IR NEF databases) 18
Networking (word of mouth) 14
Private recruitment agencies 12
TV 9
Others include Myjob.mu and
Other 2 noticeboards in factories or outside
0 10 20 30 40 50
6.7.2. Skills and qualities employers look for when recruiting new employees
As depicted in Tables 34 to 36, for all three categories of employees, experience was placed before
qualifications by firms. Other requirements were mainly good work attitude and technical skills.
65
Table 34: Skills and qualities employers look for when recruiting Workers

preferred preferred preferred preferred finding
(%) (%) (%) (%) (%) (%)
Past experience 45.1 23.2 12.2 11.0 8.5 23.3
Work attitude 34.6 18.5 23.5 12.3 11.1 20
Technical skills 21.5 33.8 13.8 23.1 7.7 7.8
Communication 4.8 30.2 25.4 20.6 19.0 5.6
Educational qualification 12.5 10.4 31.3 27.1 18.8
Decision making 18.2 24.2 21.2 36.4
ICT 8.3 27.8 36.1 27.8
Analytical skills 12.5 12.5 12.5 62.5
Foreign language 33.3 33.3 33.3
Table 35: Skills and qualities employers look for when recruiting Specialised worker

(%) (%) (%) (%) (%) (%)
Past experience 44.2 25.6 10.5 9.3 10.5
Work attitude 16.9 15.5 18.3 22.5 26.8 13.3
Communication 10.0 7.5 10.0 32.5 40.0
Educational qualification 26.7 30.0 16.7 18.3 8.3
Decision making 8.6 17.1 25.7 25.7 22.9 3.3
ICT 14.3 31.0 28.6 26.2
Analytical skills 42.9 28.6 28.6
Foreign language 12.5 25.0 37.5 25.0 2.2
Management skills 7.7 30.8 30.8 7.7 23.1 1.1
Affiliation 1.1 1.1 2.2
66
Table 36: Skills and qualities employers look for when recruiting Professional Staff

(%) (%) (%) (%) (%) (%)
Past experience 32.9 40.0 5.7 8.6 12.9 21.1
Work attitude 18.6 11.6 16.3 30.2 23.3 4.4
Communication 15.6 31.3 40.6 12.5 1.1
Educational qualification 48.8 25.6 8.5 6.1 11.0 4.4
Decision making 8.2 21.3 34.4 16.4 19.7
ICT 42.9 28.6 19.0 9.5 2.2
Analytical skills 6.5 3.2 32.3 38.7 19.4 1.1
Foreign language 33.3 33.3 33.3
Management skills 19.6 7.8 17.6 23.5 31.4 3.3
Affiliation 8.3 58.3 16.7 16.7
It is perceived that the EOE sector is prone to high labour turnover or labour mobility within the
sector.
Contrary to this perception, this study shed light on the fact that the EOE sector as a whole
might not be facing difficulties in retaining skilled labour since the study found that 62 percent of
respondents were able to retain their skilled people as shown in Figure 47.
Yes
38%
No
62%
Those facing difficulties to retain employees stated the following difficulties to

retain their skilled employees: 67
Those facing difficulties to retain employees stated the following difficulties to retain their skilled
employees:
Demand for higher pay by employees;
Expatriates are employed on limited contract of work;
Employees leave for other benefits;
Poaching by other companies who can pay better wages;
The sector does not appeal to majority;
Being young, they easily get better offer elsewhere;
Lack of career prospects; and
Employees are reluctant to work on flexi-time.
6.8. Measures proposed to fill skills gap

Employers were requested to propose measures that could fill the skills gap mentioned during the
study. Measures cut across the education and training system and Government policies amongst
others.
way.
6.8.1. Yet, 43 and
Education percent
Training of respondents proposed teaching more practical
system
workplace skills and 38 percent opined that relevant courses should be offered
Manufacturing and Textile industry skills cannot be solely acquired in a classroom. The industry
followed
in Mauritiusby an toupgrading
tends of system
use the age-old standards in the training,
of on-the-job Educational
which insystem. Thus,
combination with
classroom instruction
apprenticeship is considered
schemes could to
bebe the best way in
incorporated to the
transfer knowledgetoand
curriculum skills. the
bridge The
unstable nature of the sector makes it difficult to plan and organise training in a more systematic
gap
way. between training
Yet, 43 percent and requirement
of respondents proposed of employers
teaching and legislations
more practical amended
workplace skills and 38
percent opined that relevant courses should be offered followed by an upgrading of standards in
to make it mandatory for employers.
the Educational system. Thus, apprenticeship schemes could be incorporated in the curriculum to
bridge the gap between training and requirement of employers and legislations amended to make
it mandatory for employers.
Figure 48: Percentage of respondents who ranked the following recommendations among top three
Figure 48: Percentage of respondents who ranked the following recommendations among top three
Teach more practical workplace skills 43
Offer courses that are relevant 38

Recommendations
Require higher standards for students to pass 35
Improve quality of education 33
Better links with employers 21
Pay higher salaries to teachers 15
0 5 10 15 20 25 30 35 40 45
Percentage
68
Most
Figurediscussions concerning
49: Policies which todays
the Government workforce
may turn
consider to fill to gap
skills employability skills. Thus there is a need for
making people employable as pointed out by 47 percent of respondents. 38 percent also pointed
that there is a need to facilitate better communication.
Provide more job 47

Figure
Figure 49: Policies which 49: Policiesmay
the Government which thetoGovernment
consider fill skills gap may consider to fill skills gap

Policies
Provide more job 47

Policies

0 10 20 30 40 50
Percentage
0 10 20 30 40 50
6.8.3. Areas of HR where assistance is required Percentage
The main HR areas where assistance were indicated by the respondents

revolved around performance management, Assessment of HRD climate,
The main HR
Career andareas wheremanagement,
talent assistance were indicated
TNA, HR by the
andrespondents
Training revolved
Planningaround performance
as depicted in
The main HR areas where assistance were indicated by the respondents
management, Assessment of HRD climate, Career and talent management, TNA, HR and Training
Figure 50.
Planning as depicted in Figure 50.
revolved around performance management, Assessment of HRD climate,
CareerFigure
and 50: Areas
Figure
talent 50: in HR in
Areas where
management, organisations
HR where would
organisations
TNA, HR andlike
would totohave
have
likeTraining training
training and /and
Planning /as
or assistance
or assistance
depicted in
Figure 50.
Performance management 21
Assessment of HRD climate 19
Career and talent management 17

Performance management
TNA 15 21
Areas
Assessment of HRD
HRclimate
planning 15 19
Career and talentTraining

management
planning 13 17
TNA
Manpower forecasting 6 15
Areas
RewardHR planning
management 6 15
Training planning
Succession planning 3 13
Manpower forecasting 6
0 5 10 15 20 25
Reward management 6 Percentage
Succession planning 3
Page 97 of 108
0 5 10 15 20 25
Percentage
Page 97 of 108 69
6.8.4. Advice to those wishing to join the EOE sector
Scoring good marks and having a sound educational qualification has been advised by 61 percent
of employers while 50 percent of employers have even advised for overseas studies.
It is worth stating that employers are not merely looking for qualifications but for skills as well. It
is idealistic to have all the employability traits in an individual but the latter should be prepared
to learn practical skills as pointed out by 43 percent of respondents.
Lindbeck & Snower (2000) argued that, in addition, more flexible and multi-skilled workers are
required. This is unfortunately confirmed by only 25 percent of respondents who advised multi-
skilling for people to secure a good job.
The primary concern of employers lies in finding employees with a good work ethic and appropriate
social behaviour, i.e., reliable, good attitude, pleasant appearance and good personality. It is
clear that the new recruit should also have a positive attitude to continuous learning and in this
respect, many employers will provide the necessary training. The new recruit should show a keen
interest in his personal development and training, be accountable, strive for quality. 30 percent
of respondents of the study required a right attitude from employees.
The pattern of development of Mauritius has led to a dramatic transformation of the economy.
Employers are also looking for specialised qualifications. Students therefore must acquire more
than one degree, have overseas exposure and also excel in schooling. This has been advised by a
low percentage of respondents (5 percent) but it shows that academic focus is still there.
igure 51: Percentage of respondents who ranked the following advices among top three
Get good marks 61
Try to study overseas 50
Learn practical skills 43

Advice
Develop the right attitude 30
Try to be multi-skilled 25
Choose courses that are demanded 22
Complete more than one degree 5
0 10 20 30 40 50 60 70
Percentage
70
7. Recommendations
Statements like nothing of value is being made in the country anymore, or that we can no longer
compete with low-wage countries are common nowadays. The issue of the competitiveness
of the Mauritian manufacturing sector is giving rise to intense debate. This concern, fueled by
the global economic slowdown, is linked with probability of relocation of certain enterprises to
countries with lower labour costs, resulting, in the de-industrialization of the Mauritian economy.
The combination of a loss in competitiveness, loss of attractiveness, off-shoring and a process of
de-industrialisation constitute certainly a nightmare scenario for the Mauritian economy.
However the Mauritian manufacturing is still vital for the diversification of our economic base and
it significantly raised the standard of living. Manufacturing is still a cornerstone of our economy
and it remains globally competitive. The general perception of the sector is marked primarily by
a loss of jobs.
The sectorial workforce is becoming highly skilled as manufacturing evolves towards more
technology intensive activities. High-tech industries are providing a lot of new high-skilled jobs in
engineering, precision manufacturing and food processing, to name a few. The general level of
education of the manufacturing workforce has continued to rise in recent years. This constitutes
one factor which underlies the higher wages and salaries. This is a necessary transition that
will allow Mauritius to become more insulated to economic downturns. Research has shown that
high-tech goods industries are inherently less volatile than the traditional textile and apparel
industry.
Finally, the industry employs very large numbers of unskilled people who do not have short term
alternatives. Any sharp and drastic drop in the size of the textile industry could have very negative
short and long term effects. What are the solutions? Both the operators and the authorities need
to take affirmative actions to help the industry through this storm by
investing in marketing and product development to move upmarket,
investing in Lean Manufacturing and reduce waste at all levels, and
regionalising and internationalising. 70% of the solution is in the operators hands, amongst
others.
On the authorities side, an uncompetitive currency versus major competitors can simply pull
down the industry. An appropriate monetary policy is required to keep a competitive currency.
China and India have adopted affirmative actions like cheap finance, competitive energy and
utility rates, and duty drawbacks.
It is important to acknowledge the fact that this sector is facing a storm. This industry is needed
for the foreseeable future. Hence the need to bring all key stakeholders together under one
umbrella to come up with consolidated actions.
Textile and clothing industry will not be able to upgrade technologically fast enough and find it
difficult to survive in export and domestic markets unless a massive skill development programme
is launched to bridge the gap of managerial and technical cadre of professionals for the EOE
industries.
71
Industry people today voiced concern over the textile and clothing industry facing an immense
challenge in mobilising additional workers to fulfil production requirements, as many of them
are moving to other well-paying jobs. Production capacity is being under-utilised due to labour
shortage. If sales targets are not being met, margins will also shrink.
The objective of the study was to take the pulse of the Manufacturing sector and the EOE sector
in terms of labour shortage, skills requirement, skills development initiatives in response to skill
problems amongst others. One of the main objectives was also to come up with recommendations
that could be the basis for more sustainable solutions while resolving the labour shortage dilemma.
The proposals are described below.
A three-pronged strategy is proposed, each addressing an overall key objective:
1. Attract and retain a qualified workforce;

2. Enhance the development of human capital in the Manufacturing sector; and
3. Prepare for future skills requirement.
72
Attract and retain a qualified workforce: Grow the Talent Pool

No. Proposed actions Description
1. Shaping tomorrows The image and the working conditions (e.g. security of
Manufacturing employees, working hours and welfare) in the Manufacturing
landscape (Re-imaging sector need to be addressed to improve the attractiveness
of the sector)
of the industry.
- Refocus and recognise
A sensitisation campaign, involving the collaboration of all
Manufacturings role
stakeholders, should be carried out to explain to people
the different avenues that exist and the future prospects of
- Improving Quality the sector; educational counselling and career guidance for
of life perception students and opportunities for work placements. This can
regarding be promoted via job fairs, showcasing success stories, open
Manufacturing
days and other promotion exercises.
industry
The transfer knowledge and skills is better ensured using the

- Sensitisation among
students on new age-old system of on-the-job training in combination with
technologies in the classroom instruction.
sector
- Catch them young

(school-level
mentoring of students
on Manufacturing
industry)
2. Adopting international Organisations should be encouraged to obtain quality

standards standards like ISO 14000. It is vital to understand compliance
issues related to health and safety and social responsibility
requirements.
3. To reduce turnover The HR dept could implement a worker retention plan (This
rate and improve plan can help the company retain many workers. It can also
the relationship with contribute to better understanding the causes of resignations
workers and increase the communication skills of management)
Develop an Employee Assistance Program, a Grievance system

(To relieve the tension between management and workers
and reduce the high turnover rate)
73
After-work entertainment events
A model worker campaign,
Personal referrals from workers (The employer encourages

workers to recommend their friends or relatives to join the
company)
Cooperation with vocational schools. (Through donations

and other means, the company can establish a cooperative
relationship with vocational schools as part of its medium/
long-term plan for building a labour pipeline)
4. Opportunity for The tendency is more towards home workers. Hence more
outworkers opportunity and facilities should be created in this direction
5. Make provision for To encourage women to work in the sector, it may be vital to
part-timers and shifts create more opportunities for part timers and decrease long
of short time (4 hours shifts. Shorter shifts will attract more locals and women as
eg) specially for
they will have the flexibility to attend to social obligations
women.
along with work.

Enhance the development of human capital in the Manufacturing sector
6. Training and There is a need to develop workforce with new skills in line
Development of with the change in technology and other requirements of the
employees sector to sustain its growth.
- most immediate The most immediate training strategy to fill the existing gap
training strategy in terms of skills/jobs in demand in the sector should be
developed.
It has been pointed out that middle management requires

training in management skills as they are normally shop floor
supervisors who have been subject to automatic promotions
and hence lack management skills
Training in strategic planning needed. The forecasting will

help to know scope for locals and hence decrease dependency
on expats
Training in Health and Safety should be reinforced
74
7. Developing a medium- To develop a medium term training strategy for future skills
term training strategy requirement for the sector in collaboration with all the
stakeholders of the sector. A mechanism should be developed
whereby employers could inform decision makers about
their needs in terms of skills (e.g. Labour Market Information
System).
8. Pedagogical Training curricula should be at par with the requirements of

Transformation to the industry for better alignment to the dynamics in a local
make curriculum more labour market through a stronger link between the higher
relevant to industry
education institutions and labour market demands specific
requirements
to the Manufacturing sector and the developmental needs
- Industry academia of society.
partnership for skill
enhancement Education and training delivery should ensure structured
placements for trainees to acquire hands-on experience
- Creating campus in state of the art technology and new computerised skills.
affinity through Emphasis should also be put on soft skills training to prepare
various events
the young generation to obtain an avant-gout of the nature
focusing on the
Manufacturing of work and conditions therewith. This will enable them join
industry the sector with a positive attitude and counter the problem
of attitude at work.
On the other hand, sensitisation of employers is important

towards the provision of structured training/placements.
Higher education programmes related to Manufacturing

should include practice-oriented training besides a variety
of teaching forms like lectures, seminars, practical exercises
and work placements. Furthermore, using external teachers
(people from the industry) should be a general practice.
9. Develop a skills plan To assist education/training providers providing training for

the sector through financial incentives, special benefits,
grants to keep pace with emerging technologies and its
dynamics.
Create an awareness on all schemes available.
Promote learnerships through practical work experience

and supporting the development of learning materials while
improving the facilitation of training.
75
Enhance the development of human capital in the Manufacturing sector

10. Set up specialised Sub-sectors that are strategic for the economy will be
schools for certain provided with the necessary specific manpower.
sub-sectors
Pre-vocational education should be encouraged as it is a
necessary source of supply of labour.
Future Skills Development
11. Special help for SMEs Given that they form the bigger share of the pie of the
in the Manufacturing Manufacturing sector and employ the highest number
sector for expansion of people, they should be offered special incentives
(e.g. special insurance cover, relevant health and safety
equipment, appropriate training and reviewed pay package)
to help them address skills shortages in an efficient manner
and expand their business (like Mauritius Business Growth
Scheme (MBGS)).
Encourage Clustering and outsourcing of certain activities
12. Transfer of The mechanism to ensure the transfer of skills from foreign
knowledge from labour should be reinforced.
foreign labour to local
people Follow-up should be done to ensure that transfer of skills
has been successful and work permits approved accordingly.
Such practices should be monitored closely.
As the future attraction of skilled workers to the sector

13. Innovation in the
Manufacturing sector is challenged, the adoption of new technology and new
practices is essential for the development of the sectors
- Shift from quality competitiveness and productivity. Speed of delivery must
product to a high be improved and focus should be put on domestic branding,
quality one flexibility, state-of-the-art technology and know how
- Sustainable
Development Innovation seems to mainly occur in-house in industries
- Research and
and in networks between companies and customers. The
Innovation
major stakeholders in Manufacturing firms should take
joint responsibility for providing comprehensive training for
their workforce in the innovative practices (e.g. exploring
renewable sources of energy, optimizing use of bagasse and
cane field residue).
76
Innovative practices in the sector will help to reduce skills

shortages, improve business performance, bring a diverse
range of people into the industry, improve learning for
apprenticeships, higher and further education.
14. Set up an Industrial To promote research and development in this sector

Technology Research
Institute To encourage government funded projects from the industry
15. Establish a
Establish a nomenclature of metiers to advise on the
nomenclature des
harmonisation of common occupations and job titles.
metiers
Without this intelligence, it will be difficult evaluate the gap
between supply and demand for workers
16. Establish a Common Come up with an interactive platform for recruitment and
Platform
skills requirement information sharing.
This will help towards productivity enhancement and better

recruitment
17. A move towards green

7.5% of employment in Manufacturing is moving towards
employment
green based on resource efficiency criteria(process based
method)
It is important to provide right mix of incentives structures

and support to encourage greening of the sector
Emphasis should be put on skills and education policies to

facilitate job transition and employability
Right skills are a prerequisite to make the transition possible

to a greener economy. Therefore a skills development
strategy to meet skills needed for greening the economy
Increase the number of courses available to develop green

skills at UOM and UTM
As different adhoc training initiatives are being done, there

is need for a coherent HRD strategy to propose green skills in
line with MID vision
There should be integration of green/efficiency plans into

company strategy
77
A success story in the high standard manufacturing sector.

Considering the establishment of our jewelry manufacturing operation in Mauritius in 1994 our
Company approached IVTB in order to prospect the possibility to employ some young apprentice who
had terminated their courses.
Among the list of apprentices provided by the school a name was underlined and recommended as the
most promising result of the previous course, a young apprentice who had proven unusual eagerness to
strive for best results; unfortunately no telephone nr or address appeared in the list.
Our operation started a few months later, we hired some young apprentices together with some more
experienced workers but, in spite of numerous attempts to trace the recommended one, we sadly had
to give up any hope to get hold of him.
It was only a few weeks later when, to our surprise, we received the visit of the same young man who,
told by some friend about our Company, came forward for an interview.
HR was hired therefore in our Company and progressed rapidly under the guidance of our Technical
Manager proving an unusual willingness to absorb and learn any skill he was challenged with and
making the most of the numerous encounters with our overseas clients and technicians often visiting
our Company.
It was only some years later though that the life-time opportunity presented itself for HR when, due
to family reasons, our Production Manager, a dynamic and experienced French professional, decided
to return to Europe.
Our Company in those years was in the verge of establishing itself as a reliable manufacturing partner
to some important clients in Europe and urgently needed a suitable Production Manager capable to
secure our clients and business partners of our qualitative and productivity standards.
HR came then forward and requested that he would be entrusted the responsibility and the opportunity
to replace the experienced foreign manager, a real challenge for any young and relatively experienced
worker who had not been exposed to the standard and the pressure of international enterprises; though
we felt HR had what it would take to succeed and we decided to offer him, on a probation period, such
opportunity .
Over 15 years have now passed since HR was offered his opportunity and numerous clients, among
some of the most notorious and demanding international brands in our sector, have been entrusting
our Company with the manufacturing of their products, often requiring technical assistance and expert
advice ; during all these years HR has confronted himself and worked with some of the most experienced
technicians in our field managing to maintain, as our Atelier Manager, a track record of impeccable
standard.
His success story is the one of a young talented apprentice who had the willingness to learn and
eagerness to improve; it is the story of a person having the ambition to succeed among the best and
the humbleness to learn from them.
Extraordinary qualities within the context of a labor force generally unwilling to commit to the long
and difficult road to success, lacking a culture of ambition which is too often neglected within the
family and the educational system, and which if cultivated and supported by the enterprises would
generate many more examples of professional excellence.
HR will soon be a partner in our Company.
78
References
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A Study on Labour Shortage in the Manufacturing sector in Mauritius

1. Landscape of the Manufacturing sector 1

2. Aims and objectives of the study 3

6. Findings of labour shortage survey 47

Figure 2: Population projection 2010-2050, Island of Mauritius 4

Figure 4: Labour market, 4th quarter 2011, Island of Mauritius 7

Figure 6: Trends in productivity indices Manufacturing sector, 2000 to 2010 11

Figure 7: Composition of Manufacturing sector workforce 15

Figure 8: Proportion of employee categories by size of company 16

Figure 9: Percentage of companies that employ full-time employees 17

Figure 10: Do you agree that Mauritius is experiencing labour shortage? 19

Figure 11: Perception of labour shortage at sector level 20

Figure 12: Do you have labour shortage in your organisation currently? 20

Figure 16: Reasons for Labour shortage in the Manufacturing sector 24

Figure 18: Importance attached to soft skills by category of employees 25

Figure 19: Initiatives to address skills shortage among existing employees 32

Figure 20: Strategic skills development plan for the organisation 32

Figure 30: Composition of EOE sector workforce 48

Figure 31: Proportion of employee categories by size of company 49

Figure 32: Percentage of companies that employ full-time employees 50

Figure 33: Do you agree that Mauritius is experiencing labour shortage? 52

Figure 34: Perception of labour shortage at sector level 53

Figure 35: Do you have labour shortage in your organisation currently? 53

Figure 39: Reasons for Labour shortage in the EOE sector 56

Figure 41: Importance attached to soft skills for Workers category 57

Figure 42: Initiatives to address skills shortage among existing employees 63

Figure 43: Strategic skills development plan for the organisation 63

Figure 46: Most preferred method of recruitment 65

1. Landscape of the Manufacturing sector

Where on the one hand, According to a study (2011) by Deloitte LLP,

1.2. The Mauritian Manufacturing Sector

1.3. Rationale of the study

2. Aims and objectives of the study

The objectives were to:

1. assess the current situation of labour shortage in the Manufacturing sector;

2.1. Contribution of the Manufacturing sector to the economy

Figure 1: Percentage Distribution of Gross Domestic Product

22.0 22.5 22.5

According to the World Bank population projections by country, the population

Figure 2 clearly projects the ageing of the Mauritian population with an

Q4 - 2010 Q4-2011 Change

Labour force 579 300 585 600 +6 300

Employment 537 700 541 800 +4 100

Unemployment 41 600 43 800 +2 200

Unemployment rate (%) 7.2 7.5 +0.3

Seasonally adjusted unemployment rate 8.1 8.4 +0.3

Year 2010 Year 2011 Change

Employment 536,100 536,700 +600

Unemployment 45,200 46,100 +900

Unemployment rate (%) 7.8 7.9 +0.1

2.3. Employment in the sector

Figure 5: Trend in employment in the Manufacturing sector in large establishments,

Table 5: Rate of change in employment in the Manufacturing sector, 1990-2010

2.3.1. Employment by gender

As it can be observed, the Manufacturing sector is female-dominated, most particularly because

Table 6: Trend in employment in the Manufacturing sector by gender, 1990-2010

Year Male Female Total Number of males for

1990 45525 64176 109701 0.71

2.3.2. Employment forecasts for the Manufacturing sector, 2011-2015

Table 7: Future trend in employment in the Manufacturing Sector, 1990-2015

Year Employment trend

Based on the model, employment is expected to be 67 653 by 2015, representing a decrease of 16

Figure 6: Trends in productivity indices Manufacturing sector, 2000 to 2010

Section I assembled questions related to labour shortage at sector of operation level;