Directorate-General Employment, Social Affairs and Equal OpportunitiesEuropean Commission

 New Skills for New Jobs 

Annual Northern Ireland Skills Conference 2010

Belfast, 25 March 2010

Robert StraussDG EMPL, Unit D2 – European Employment Strategy

Directorate-General Employment, Social Affairs and Equal Opportunities2European Commission

Outline

• Background• Assessment until 2020• Next steps ensuring the right skills for the

right jobs

Directorate-General Employment, Social Affairs and Equal Opportunities3European Commission

The ‘New Skills for New Jobs’ initiative

• Commission Communication« New Skills for New Jobs: anticipating and matching

labour market and skills needs »

• Adopted on 16 December 2008 COM(2008)868• Meeting European Council request « to present a

comprehensive assessment of the future skills requirements in Europe up to 2020 »…..

Directorate-General Employment, Social Affairs and Equal Opportunities4European Commission

The New Skills for New Jobs Initiative :key messages

• A need to increase skills at all levels …

• … but not just any skills: a need to match real labour market needs

• … quickly changing skills demands

Improving capacities for skills assessment,

anticipation and matching, responsiveness of education and training systems

Directorate-General Employment, Social Affairs and Equal Opportunities5European Commission

Assessment up to 2020

Trends in job creation (source: Cedefop, 2010):

7 millions new jobs in EU27+ up to 2020 despite the recession

Many replacement jobs : 73 million jobs

Service sector : 3/4 of total employment in 2020

Directorate-General Employment, Social Affairs and Equal Opportunities6European Commission

Impact of the recession on employment (EU-27+)

205

210

215

220

225

230

235

240

245

2000 2005 2010 2015 2020 2025

Million jobs Current baselineNo recession

Source: Cedefop, 2010

Directorate-General Employment, Social Affairs and Equal Opportunities7European Commission

Future job opportunities (EU-27+)

Source: Cedefop, data Briefing Note_Febr. 2010-5 0 5 10 15 20 25 30 35

Elementary occupations (labourers)

Skilled manual occupations (agricultural, craft and trade workers, machine operators)

Skilled non-manual occupations (clerks andservice/sales workers)

High-skilled non-manual occupations (legislators, managers, professionals &

technicians)

Million jobs

Total job openings Replacement demand Expansion demand

Source: Cedefop, 2010

Directorate-General Employment, Social Affairs and Equal Opportunities8European Commission

Trends in labour supply

EU working age population will peak in 2012, more women and

older workers will add until 2018

More educated workforce… but with the right skills?

Deficit of basic skills? Low achievers in reading in the EU: 24.1% in

2006 (PISA)

Progress is still too low in Europe in adopting an approach based on

lifelong learning

Directorate-General Employment, Social Affairs and Equal Opportunities9European Commission

Supply trends by qualifications, labour force aged 15+ (EU-27+)

0

50

100

150

200

250

300

2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020

Millions Low Medium High

21 %

48 %

31 %

28 %

50 %

22 %

35 %

50 %

15 %

ForecastSource: Cedefop, 2010

Directorate-General Employment, Social Affairs and Equal Opportunities10European Commission

Labour force by age, gender and qualifications (EU-27+)

Low qualification Males Females

20 15 10 5 0 5 10 15 20

2010

2020

2010

2020

2010

2020

2010

2020

2010

2020

2010

2020

15-2

425

-34

35-4

445

-54

55-6

465

+ Medium qualification

Males Females

20 15 10 5 0 5 10 15 20

High qualification Males Females

20 15 10 5 0 5 10 15 20MillionsSource: Cedefop, 2010

Directorate-General Employment, Social Affairs and Equal Opportunities11European Commission

Evolving skills needs

A growing demand for high level qualifications

Which skills?

Increasing skills requirements within occupations at all levels, including « transversal «  or « generic » skills (e.g. communication and analysis skills, « learning to learn »…)

Employers are looking for a mix of knowledge, skills and abilities

Directorate-General Employment, Social Affairs and Equal Opportunities12European Commission

Demand change by occupational groups and qualifications (EU-27+)

-8 -6 -4 -2 0 2 4 6 8

Elementary occupations

Skilled manual occupations

Skilled non-manual occupations

High-skilled non-manual occupations

Million jobs

Low Medium High

Source: Cedefop, 2010

Directorate-General Employment, Social Affairs and Equal Opportunities13European Commission

Changing occupational structure (EU-27+)

0%

4%

8%

12%

16%

20%

Legislators, senior officials and managers

Professionals

Technicians and associate professionals

Clerks

Service workers; shop and market

sales workers

Skilled agricultural and fishery workers

Craft and related

trades workers

Plant; machine operators

and assemblers

Elementary occupations

200020102020

Source: Cedefop, 2010

Directorate-General Employment, Social Affairs and Equal Opportunities14European Commission

Next steps ensuring the right skills for the right jobs

• Expert Group recommendations

• Europe 2020

• Presidency Priorities / New Communication

Directorate-General Employment, Social Affairs and Equal Opportunities15European Commission

Expert Group recommendations

Directorate-General Employment, Social Affairs and Equal Opportunities16European Commission

Expert Group recommendations

New Skills for New Jobs : Action Now

1. Provide the right incentives to upgrade and better use skills for individuals and employers.

2. Bring the worlds of education, training and work closer together.

3. Develop the right use of skills.

4. Better anticipate future skills needs.

Directorate-General Employment, Social Affairs and Equal Opportunities17European Commission

Europe 2020

• Proposal for Spring European Council (25-26 March 2010) “A strategy for smart, sustainable and inclusive growth”

• 5 sets of targets– 75 % of the population aged 20-64 should be employed.

– 3% of the EU’s GDP should be invested in R&D.

– The “20/20/20” climate/energy targets should be met (including an increase to 30% of emissions reduction if the conditions are right).

– The share of early school leavers should be under 10% and at least 40% of the younger generation should have a tertiary degree.

– 20 million less people should be at risk of poverty.

• 7 flagship initiatives

Directorate-General Employment, Social Affairs and Equal Opportunities18European Commission

Europe 2020 flagships

Under smart growth

• “Innovation Union” to improve framework conditions and access to finance for research and innovation.

• “Youth on the move” to enhance the performance of education systems and to facilitate the entry of young people to the labour market.

• “A digital agenda for Europe” to speed up the roll-out of high-speed internet and reap the benefits of a digital single market for households and firms.

Directorate-General Employment, Social Affairs and Equal Opportunities19European Commission

Europe 2020 flagships (cont’d)

Under sustainable growth

• “Resource efficient Europe” to support the shift towards a low carbon economy.

• “An industrial policy for the globalisation era” to improve the business environment, notably for SMEs.

Directorate-General Employment, Social Affairs and Equal Opportunities20European Commission

Europe 2020 flagships (cont’d)

Under inclusive growth

• “An agenda for new skills and jobs” to modernise labour markets and empower people by developing their skills and better match labour supply and demand, including through labour mobility.

• “European platform against poverty” to ensure social and territorial cohesion such that the benefits of growth and jobs are widely shared.

Directorate-General Employment, Social Affairs and Equal Opportunities21European Commission

Spanish/Belgian Presidencies

• Spanish Presidency conference 8/9 April 2010 in Barcelona; involvement of social partners

• Likely Council conclusions June 2010

• Commission Communication in autumn 2010

Directorate-General Employment, Social Affairs and Equal Opportunities22European Commission

Thank you for your attention

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