strategic approach to skills policies

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Strategic approach to skills policies LÁSZLÓ HORVÁTH h [email protected]

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Strategic approach to skills policies based on the OECD Skills Strategy, introducing the PIAAC assessment and the Hungarian Skills Snapshot.

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Page 1: Strategic approach to skills policies

Strategic approach to skills policiesLÁSZLÓ HORVÁTH

[email protected]

Page 2: Strategic approach to skills policies

Why develop competences?• „skill” and „competence” are used interchangeably

• skill/competence = the bundle of knowledge, attributes and capacities that enables an individual to successfully and consistently perform an activity or task, whether broadly or narrowly conceived, and can be built upon and extended through learning (OECD, 2011)

• „Students cannot learn everything in school they will need to know in adult life. What they must acquire is the prerequisites for successful learning in future life.” (OECD, 1999)

Page 3: Strategic approach to skills policies

Importance of skills (OECD, 2012)

Global competition High unemployment Aging population

adequate supply of skills

maximizing skills use

optimizing further development

boosting employment and economic growth

promoting social inclusion

Page 4: Strategic approach to skills policies

Strategic approach• education and training ~13% of total public expenditure• Governments must ensure that expenditures are efficient and effective and appropriately shared

• to facilitate a cross-governmental approach and peer learning on effective skills policies

• to address the global dimension of the supply and demand for skills

OECD Global Skills Strategy to help:

responsiveness (education/training providers can adopt to changing demand)

quality and efficiency in learning provision (ensuring that right skills are acquired at the right time, right place and in the most effective mode)

flexibility in provision (allow to study what/when/how they want)

transferability of skills (gained skills are documented in a commonly accepted/understandable form, skills acquired over the course of the working life are recognized and certified)

ease of access (reducing barriers to entry)

low-costs of re-entry (granting credits for components of learning, modular instruction, credit accumulation and transfer) (OECD, 2012)

Page 5: Strategic approach to skills policies

Skills ecosystem• Goes beyond the traditional „educational output should be equal to the demands of the labor market” paradigm!

• skills supply (skills formation) and skills demand (skills use) are in a dynamic relation influencing each other -> workplace need skills, skills make workplaces = skills ecosystem

• toxic co-existence of unemployed graduates and employers who can’t find people with the skills they need (low-skill equilibrium)• Skills do not automatically translate into better economic and social outcomes! (OECD, 2012)

Page 6: Strategic approach to skills policies

How can a country maximize its use of skills? (OECD, 2012)

By encouraging and enabling people to learn throughout life

• Gather and use evidence about the changing skills demand to guide skills development.

• Engage social partners in designing and delivering education and training programmes.

• Ensure that education and training programmes are of high quality.

• Promote equity by ensuring access to, and success in, quality education for all.

• Ensure that costs are shared and that tax systems do not discourage investments in learning.

• Maintain a long-term perspective on skills development, even during economic crises.

By fostering international mobility of skilled people to fill skills gaps

• Facilitate entry for skilled migrants and support their integration.

• Design policies that encourage international students to remain after their studies.

• Make it easier for skilled migrants to return to their country of origin.

By promoting cross-border skills policies

• Invest in skills abroad and encourage cross-border higher education.

A COUNTRY CAN DEVELOP THE RELEVANT SKILLS

Page 7: Strategic approach to skills policies

How can a country maximize its use of skills? (OECD, 2012)

By encouraging people to offer their skills to the labor market

• Identify inactive individuals and the reasons for their inactivity.

• Create financial incentives that make work pay.

• Dismantle non-financial barriers to participation in the labour force.

By retaining skilled people in the labor market

• Discourage early retirement.

• Staunch brain drain.

A COUNTRY CAN ACTIVATE THE SUPPLY OF SKILLS

Page 8: Strategic approach to skills policies

How can a country maximize its use of skills? (OECD, 2012)

By creating a better match between people’s skills and the requirements of their job

• Help employers to make better use of their employees’ skills.

• Tackle unemployment and help young people to gain a foothold in the labour market.

• Provide better information about the skills needed and available.

• Facilitate internal mobility among local labour markets.

By increasing the demand for high-level skills

• Help economies to move up the value-added chain.

• Stimulate the creation of more high-skilled and high value-added jobs.

• Foster entrepreneurship.

A COUNTRY CAN PUT SKILLS TO EFFECTIVE USE

Page 9: Strategic approach to skills policies

Skills outlookProgram for the International Assessment of Adult Competencies (PIAAC): literacy, numeracy, problem solving in technology-rich environment

Around 166.000 adults aged 16-65 in 24 countries from 1 August to 31 March 2012

Results:

• 4,9%-27,7% of adults proficient only at the lowest levels in literacy; 8,1%-31,7% in numeracy, 7%-23% in problem solving

• older adults generally have lower proficiency (varies among countries!)

• gender gap difference in proficiency is negligible

• 21% of workers are over-qualified; 13% under-qualified

• proficiency is closely related to age (peak at around 30); labor market participation, employment, higher wages

• those with lower levels of proficiency are more likely to report poor health, believe they have little impact on political process, not participate in volunteer activities, have lower levels of trust (OECD, 2013)

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Skills Snapshot - HungaryDeveloping the relevant skills

• PISA 2009 slightly above the OECD average in reading and science, slightly below the OECD average in mathematics

• 7% participated in continuing non-formal education (OECD average: 34%)

• 19% of people aged 25-64 with a tertiary-level education participated in formal and/or non-formal education (only 3% for people in the same age group with below upper secondary education)

• 23% of employers reported recruitment difficulties (2011)

Page 15: Strategic approach to skills policies

Skills Snapshot - HungarySupplying skills

• 81,3% of people aged 25-54 were in the labor force (OECD average: 81%) in 2011

• 74% of prime-age women were in the labor force (OECD average: 71%) in 2011

• 39,2% of people aged 55-64 were in the labor force (OECD average: 57,8%) in 2011

Using skills

• 18,3% is the employment rate of youth (OECD average: 39,3%) in 2011 / unemployment rate: 26,1% (OECD average: 16,2%)

• 13% of workers were over-qualified (OECD average: 25%) and 53% were under-qualified (OECD average: 22%) in 2005

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References1. OECD (1999): Measuring Student Knowledge and Skills: A New Framework for Assessment.

Paris: OECD.

2. OECD (2011): Towards an OECD Skills Strategy. Paris: OECD

3. OECD (2012): Better skills, better jobs, better lives. A strategic approach to skills policies. Paris: OECD.

4. OECD (2013): OECD Skills Outlook 2013. Firs results from the survey of adult skills. Paris: OECD.

5. Hungary’s skills snapshot: http://skills.oecd.org/informationbycountry/hungary.html

Page 21: Strategic approach to skills policies

Thank you for your attention!

LÁSZLÓ HORVÁTH

[email protected]