Skills for Trade and Economic Diversification (STED)

The Skills for Trade and Economic Diversification (STED) initiative, developed by the ILO, is a targeted technical assistance approach that focuses on skills anticipation to foster growth and create decent job opportunities. 

Launched as a pilot approach in 2010, STED initially focused on sectors that have the potential to increase exports and to contribute to economic diversification. Since its inception, STED has been implemented in over 70 sectors across more than 30 countries. This innovative approach empowers policymakers to collaborate effectively with the private sector, and employers’ and worker’s associations, to strategically address future skills demands. 

The primary goal of a STED diagnosis is to identify the necessary skills strategies that enable economic sectors to engage effectively in tradable markets. By adopting a forward-looking perspective, STED aims to stimulate economic growth and diversification. This sectoral approach is applicable to exporting sectors, those facing import competition, and domestic sectors that supply both export-oriented and import-competing industries. 

Designed as a process-oriented, flexible, and practical approach, STED seeks to contribute to align skills development with broader policies, including trade, economic diversification and industrial development. It fosters systems change and capacity building in skills development systems. 

The STED programme serves as a gateway for partnerships aimed at enhancing skills anticipation systems, integrating with other ILO initiatives on skills governance. By enhancing collaboration and strategic planning of stakeholders, STED plays a vital role in shaping a skilled workforce that meets the evolving demands of target sectors.