OECD SKILLS STRATEGY FLANDERS LAUNCH OF DIAGNOSTIC REPORT

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1 OECD SKILLS STRATEGY FLANDERS LAUNCH OF DIAGNOSTIC REPORT Ludger Schuknecht Deputy Secretary-General OECD Centre for Skills Brussels, 21 January 2019

2 1. WHY DO SKILLS MATTER? 2

3 What do we mean by skills? COGNITIVE AND META- COGNITIVE SKILLS TECHNICAL, PROFESSIONAL SKILLS SOCIAL AND EMOTIONAL SKILLS 3

4 Percentage-point change Skills matter for people s well-being Differences between the % of adults with high and low literacy proficiency reporting high levels of trust and political efficacy, good to excellent health, or participating in volunteer activities High levels of trust High levels of political efficacy Participation in volunteer activities Good to excellent health High levels of trust High levels of political efficacy Participation in volunteer activities Good to excellent health Flanders OECD average Source: OECD (2016), Skills Matter: Further Results from the Survey of Adult Skill. 4

5 Labour productivity (log) 4,6 And how these skills are used matters for the economic success of people and countries Labour productivity and the use of reading skills at work, PIAAC 2012/2015 Adjusted for literacy and numeracy proficiency 4,4 4,2 4,0 3,8 3,6 3,4 Lithuania Poland Japan Turkey France Italy Netherlands Slovak Republic Finland Ireland Spain Israel Greece Korea Estonia Flanders (Belgium) Sweden Austria United Kingdom Australia Canada Slovenia Czech Republic Norway United States Denmark Adjusted: Slope: (0.231) R-squared: Chile Germany New Zealand 3,2 2,1 2,2 2,3 2,4 2,5 2,6 2,7 2,8 2,9 3 Source: Survey of Adult Skills (PIAAC) (2012, 2015). Mean use of reading skills at work 5

6 Mega trends are changing and increasing the skills needed for success in work and life GLOBALISATION TECHNOLOGICAL CHANGE DEMOGRAPHIC CHANGE More integrated world economy than ever Emergence of global value chains, offshoring and outsourcing Increased vulnerability of some workers Rapid development of new technologies Emergence of new forms of work Expansion of sources of learning, especially online Large expected decline in workingage population Important reallocations towards care services Need to ensure youth have the right skills

7 2. WHAT IS THE OECD SKILLS STRATEGY IN FLANDERS? 7

8 OECD Skills Strategy Contributes to economic prosperity Contributes to social cohesion 8

9 A collaboration between the OECD and Flanders Flemish Government OECD Finance and Budget (FB) Economy, Science and Innovation (EWI) Directorate for Education and Skills Education and Training (OV) Work and Social Economy (WSE) VDAB, SERV, VLOR, SYNTRA and more Centre for Entrepreneurship, SMEs, Regions, and Cities Directorate for Employment, Labour and Social Affairs 9

10 Engaging all relevant stakeholders Diagnostic Workshop (15 May) Approx. 75 participants Good Practices Workshop (18 Sept) Approx. 75 participants 11 10

11 5 Priority areas were identified for Flanders 5 priorities: I. Developing a learning culture II. III. IV. Reducing skills imbalances Strengthening skills use in the workplaces Strengthening the governance of adult learning V. Improving the financing of adult learning 12

12 PRIORITY 1: DEVELOPING A LEARNING CULTURE 13

13 Learning is Life long Early childhood education and care 14

14 And learning is life-wide Schools Workplace Homes Community 15

15 Strengthen the skills of adults to thrive in the digital age Share of adult with well-rounded skills (PIAAC), 2012 or 2015 Level 3-5 in literacy & numeracy, Level 2/3 in problem solving % Source: OECD calculations based on OECD (2017) Survey of Adults Skills database (PIAAC) (2012, 2015). 15

16 Willingness to participate in adult learning is low Adults not willing to participate, % of year-olds, 2012/2015 % Participated, but does not want to participate (more) Did not participate, and does not want to participate Source: OECD calculations based on OECD (2017) Survey of Adults Skills database (PIAAC) (2012, 2015). 17

17 and barriers to participation are high Main obstacles to participation, % of total, 2012/2015 Flanders OECD average Too busy at work Childcare, family responsibilities Inconvenient time or place Other Lack of employer s support Too expensive Something unexpected came up Did not have the prerequisites % Source: OECD calculations based on OECD (2017) Survey of Adults Skills database (PIAAC) (2012, 2015). 18

18 Recommendations: Learning culture Embed adult learning within a lifelong development approach Make adult education more accessible and relevant Enlarge the accessible course offerings for adult learners in higher education 19

19 Recommendations: Learning culture Raise awareness of the importance of adult learning Transform adult learning providers into learning organisations Establish a co-operation network to identify and disseminate best practices in stimulating a learning culture in the workplace Expand work-based learning in university colleges, universities and adult education 20

20 PRIORITY 2: REDUCING SKILLS IMBALANCES 21

21 Flanders has a tightening labour market VRT, 14/02/2018 VRT, 28/06/

22 A large share of vacant jobs and low unemployment contribute to skills shortages Job vacancy rate and unemployment rate, OECD-EU countries, 2017 Job vacancy rate, ,5 3 2,5 2 1,5 1 0,5 Czech Republic Flanders (Belgium) Belgium Germany United Kingdom Wallonia Austria Netherlands Sweden Hungary Slovenia Finland Norway Estonia European Union Latvia Switzerland Poland Luxembourg Ireland Slovak Republic Portugal Brussels Spain Greece Unemployment rate, year-olds, 2017 Note: the job vacancy rate is defined as the number of job vacancies expressed as a percentage of the sum of the number of occupied posts and the number of job vacancies. Source: Eurostat (2018), Job vacancy rate by NACE Rev. 2 activity - annual data (from 2001 onwards) [jvs_a_rate_r2]; Statbel (2018), Job vacancy rate,; OECD (2018), Regional Labour statistics. 23

23 Job vacancy rate Skills shortages are largely concentrated in STEM and ICT occupations Job vacancy rate for selected economic activities and total, Flanders, 2013 and % 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% Professional, scientific and technical activities Information and communication Construction All other economic activities Total Note: The job vacancy rate is the number of job vacancies divided by total labour demand (i.e. job vacancies plus occupied positions). Classification of economic activities based on NACE Rev. 2. Source: Statbel (2018), Job vacancy rate, Economic activities 24

24 Recommendations: Skills Imbalances Make the education system more responsive to changing skills demand Mobilise sectoral training funds to address skills shortages Create bridges between learning and career development support Support assessments of skills needs and skills forecast exercises 25

25 Recommendations: Skills Imbalances Prioritize training in skills in high demand for jobseekers, particularly those at risk of longterm unemployment Raise awareness about skills validation (Erkennen van Competenties, EVC) among employers and potential users Provide individuals with a balanced portfolio of skills 26

26 PRIORITY 3: STRENGTHENING SKILLS USE IN THE WORKPLACE 27

27 Skills are not used to their full potential in the workplace, especially numeracy skills Numeracy proficiency (score) 300 Use of numeracy skills and numeracy proficiency Flanders (Belgium) Japan Sweden Netherlands Norway Austria Denmark Germany Estonia OECD England (UK) Korea Poland Slovenia France Ireland Northern Ireland (UK) Greece Slovak Republic Canada New Zealand United States Australia Czech Republic 240 Spain 230 2,2 2,3 2,4 2,5 2,6 2,7 2,8 2,9 3 Note: Skills use indicators are between 1 "Never" and 5 "Every day". Source: OECD Survey of Adult Skills database (PIAAC) (2012, 15). Use of numeracy skills at work 28

28 Higher intensity of High-performance work practices (HPWP) help drive skills use Skills use at work and High Performance Workplace Practices, PIAAC 2012,2015 Reading at work index 3,2 3,1 Australia New Zealand United States 3 England (UK) Norway 2,9 N. Ireland (UK) Germany Japan 2,8 Netherlands Ireland Korea OECD Austria Estonia 2,7 Flanders (Belgium) Czech Republic 2,6 Slovak Republic Slovenia Spain 2,5 France Chile Poland 2,4 2,3 Italy R² = 0,5463 Finland Sweden Denmark Management and organization practices such as: Teamwork Autonomy use of incentive pay, training practices, and flexibility in working hours 2,2 2,5 2,55 2,6 2,65 2,7 2,75 2,8 2,85 2,9 2,95 3 Mean HPWP index Source: Survey of Adult Skills (PIAAC) (2012, 2015). 29

29 1-10 employees employees employees employees employees 1-10 employees employees employees employees employees Index of use Especially small firms tend to use the skills of their workers less Use of information-processing skills at work, by firm size, 2012 or 2015 Most frequent use = 4 2,3 Flanders OECD average 2,1 1,9 1,7 Least frequent use = 0 Numeracy at work ICT at work Note: Skills use indicators are between 1 "Never" and 5 "Every day". Source: OECD Survey of Adult Skills database (PIAAC) (2012, 15). 30

30 Recommendations Skills Use Raise awareness of the importance of skills use in the workplace Provide direct funding to employers to re-shape the workplace and encourage more management training, especially among small and medium enterprises Promote flexible career mobility opportunities within sectors and firms Examine company working conditions and human resource practices to help fill job vacancies and address potential skills shortages 31

31 PRIORITY 4: STRENGTHENING THE GOVERNANCE OF ADULT LEARNING 32

32 Responsibilities for adult learning are shared widely across governments Culture, youth and media Flemish government Provision of adult education Budget Sectoral training funds Paid educational leave Economy, Science and Innovation (EWI) Federal government Collective labour agreements Time credit Degree standards Taxation Agriculture and fisheries Education and Training (OV) Work and Social Economy (WSE) Finance and Budget (FB) Provinces: Antwerp, East-Flanders, Flemish Brabant, Limburg, West-Flanders 308 municipalities 32

33 And there is a large number of providers of adult learning in Flanders Centres for Adult Education 101 Centres for Basic Education 13 University colleges 16 Universities 6 Academies for visual arts Academies music, dance and drama Syntra Employers Public employment service VDAB NGO providers (sector funds) Adult education institutes National training institutes Associations and movements Libraries Others 34

34 Coordinating, aligning, sequencing reforms is key to optimise the output of policies Instead of piecemeal reforms, introduce a multidimensional approach with reforms in all policy dimensions related to skills Coordinate policies Align policies Sequence policies Optimal effectiveness and possible complementary effect 34

35 Recommendations: Governance Establish a comprehensive and concrete vision for adult learning Promote coherence and complementarity between levels of government in adult learning Establish a common knowledge and evidence base Support local community organisations to foster, host and co-ordinate local networks of stakeholders that work to improve adult learning 36

36 PRIORITY 5: IMPROVING FINANCING OF ADULT LEARNING 37

37 Despite many financial incentives, the motivation to participate in adult learning remains low Paid educational leave Training credit Training vouchers Registration fee exemptions Career guidance vouchers 8 out of 10 adults do not want to participate in adult learning Sectoral training funds SME wallet Strategic transition support Tax deduction 37

38 And financial measures do not seem to reach the groups most in need % of employees receiving employer financial support for education or training, by skills level, year-olds % low skilled high skilled Note: High-skilled adults score at level 5 or above in literacy and/or numeracy, while low-skilled adults score below level 2 in literacy and/or numeracy. Source: OECD (2018), OECD calculations based on Survey of Adults Skills database (PIAAC) (2012, 2015), 39

39 Recommendations: Financing Group all existing training incentives into a single learning account Expand programmes to reach out to marginalised groups with information, advice and guidance about training Explore options for financially supporting transitions from job to job or from one employment status to another Ensure that training incentives support flexible modes of training delivery 40

40 Engaging everyone in a clear, comprehensive, mobilizing vision 5 priorities: I. Developing a learning culture Government II. III. Reducing skills imbalances Strengthening skills use in the workplaces Education institutions Companies IV. Strengthening the governance of adult learning Learner V. Improving the financing of adult learning Public employment service Social partners 41

41 For more information To discuss OECD s work with countries on National Skills Strategy projects contact: montserrat.gomendio@oecd.org andrew.bell@oecd.org To learn more about the OECD s work on skills visit: 42

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