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OECD Skills StrategyTranslating better skills into better economic and social outcomes
Israel Accession Seminar
22-23 November 2011
Deborah Roseveare
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Skills matter
for individuals because skills have an increasing impact on labour market
outcomes and social participation
for economies because failure to ensure a good skills match has:
short- term consequences (skills shortages) longer-term effects on:
economic growth equality of opportunities
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Better skills do not automatically translate into higher incomes and higher productivity
Success with converting skills into jobs, growth and social outcomes depends on whether we know what skills matter and drive outcomes the right mix of skills is being taught and learned in
effective, equitable and efficient ways labour markets and societies fully utilise skills governments build effective skills systems and strong
coalitions with the social partners to find sustainable approaches to who should pay for what, when and where
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The world has changed A dramatic expansion in higher education
Younger cohorts are more highly educated
Geographical distribution has shifted towards China
Age group Tertiary qualified
aged 25-34 years 81 million
aged 55-64 years 39 million
% 25-34 years 55-64 years
United States 35.8 20.5
Japan 12.4 10.9
China 6.9 18.3
Many systems have done well in getting more people to higher qualifications
But qualifications are not the same as skills...
…because we continue to learn after obtaining a degree…
…and because we lose skills that we do not use
OECD Skills Strategy
Integrates work on skills across the Organisation
Supports countries in developing better skills policies for economic growth and social inclusion
Defines three key areas of focus:
developing and maintaining the stock of skills
optimising the productive use of a population’s skills
strengthening skills systems
Contextual factors
Economic level & structure TechnologyDemographics Work organisationMaternal & child health Institutional settings
Skill supply
Educational attainmentLevel of cognitive skillsMigration & participation Matching
Education mismatchSkills & informal workHard-to-fill vacancies
Skill gaps
Outcomes
Growth & productivityLabour force statusEarningsIncome inequality & health
Skill demand
Employment by educationEmployment by occupationJob-task measures of skill
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Developing and maintaining stock of skills
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Producing an appropriate mix of skills
What are the drivers of current and future demand of skills/competencies?
Which instruments ensure responsiveness of education provision to labour market demand?
Which competencies should be developed?
How can access to education and training throughout lifetime be optimised?
What is the impact of migration and international labour mobility on skills formation systems?
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Key findings on skills supply and demand
Labour demand characteristics more important than labour supply characteristics in explaining earnings differentials
Skills matter but only if they are required by the job
Extent of text-based processing tasks at work is among the strongest determinants of earnings and skill formation
Skill formation also depends on work tasks and work organisation
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Optimising use of skills
Under-utilisation of skills mismatch between workers’ skills and those demanded
by the job non-participation in the labour market inefficient use in informal production
Waste of resources invested to develop these skills …
…and can lead to skill atrophy
The crisis has exacerbated under-utilisation of skills
... especially for some groups (e.g. youth)
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Skills shortages can also exist technological shifts demographically-driven demand (e.g. health care) long training pipelines
Economic output lost if: employers can’t hire people with the skills they need employees cannot perform the tasks expected of them
.....and incentives to develop missing skills are weak
→ global competition for talent and to fill shortages
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Low-equilibrium skills outcomes can occur
low supply of skills matching low demand for skills lower incomes lower productivity slower growth
Most often occurs in: rural areas countries where mobility between regions is limited
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Optimising use of skills
Which measures help optimise the utilisation of skills on the job?
How can workforce participation be boosted?
Which tools facilitate the recognition of skills?
How can transparency of skills systems be ensured (role of assessment and qualifications frameworks)?
What information is necessary to facilitate matching of skills (e.g. career guidance)?
Labour-market responsiveness• Education systems are flexible and responsive• Preparing for future labour market needs• Curricula and provision is informed by labour
market needs
Attention to quality• Setting high performance standards• Quality assurance at all levels of the
system• Preparing, attracting and retaining good
quality teachers
Effective skill use• Good quality career guidance • Transparent skills systems (recognition,
assessment, qualification frameworks)• Effective HRM in firms
Open and equitable access• No barriers to participation in education • Easy re-entry and second chance options• Labour market participation (including
marginalised groups)
Leveraging synergies• Co-ordination at all levels of government• Engagement of social partners and education
stakeholders• Co-ordinating policy fields (skills, labour,
family, migration)
Strengthening skills
systems
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Strengthening skills systems
How to achieve a coordinated whole of government approach?
What is the role of different agents including social partners?
Who should pay for what, when and how?
What are good models of policy evaluation to ensure efficiency/continuity of skills policies?
Which is the right level of intervention (regional and local dimension)?
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Local Skills Strategies (‘ecosystems’)
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Thank you!
Ministerial Council Meeting
23-24 May 2012
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