Jan RutkowskiWorld BankSarajevoOctober 27-28*

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The shift in labor demand: from less to more skilled jobsIndustrial restructuring is an important source of a skills mismatch in transition economiesHard skills are not enough: soft skills play a critical roleSkills mismatch may become an obstacle to modernization and growth of transition economiesSkills diplomas need to develop better measures of skills supply and demand

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World Bank studies on labor market skills in Europe and Central AsiaRegional reportCountry studiesPlanned surveys of skills supply and demandMain findings of country studiesFYR MacedoniaCroatiaPolandPolicy response to the skills gap*

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Demand for skills in ECAEducation and the supply of skills to the ECA marketResolving the skills shortage in the ECA region: A policy frameworkManaging for results at the pre-university level of educationManaging for results in the tertiary education sectorAdvancing adult learning in ECA*

Future growth will depend more on improving competitiveness Competitiveness depends on labor productivity and innovation.Labor productivity and innovation depends on skillsAnd because we are ageing, growth depends on activating and keeping adult productive for more years. This requires skills.

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Ukraine labor demand study (2009)Croatia: Reaching and sustaining higher rates of economic growth (2009)Are Skills Constraining Growth in Bosnia and Herzegovina (2009)Demand for skills in FYR Macedonia (2010)Fuelling growth and competitiveness in Poland through employment, skills and innovation (2011)*

World-wide project on the supply of and demand for skillsHousehold based standardized survey of the supply of skillsEmployer based standardized survey of the demand for skillsWB countries to be covered: Macedonia and Serbia *

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MacedoniaPoland*

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Between occupational groupsToo many social scientists, too few engineersToo many clerks, too few nurses and electriciansWithin occupational group (skills gap)Inadequate technical (job specific) skillsInadequate cognitive skills Inadequate behavioral & social (soft) skillsToo much theoretical knowledge, too little practical skills

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Only proxies for skills: education, occupationBut skills diplomas, educated skilledLabor market indicatorsUnemployment rate: excess supplyVacancy rate: unmet demandU/V ratio (by education, occupation)Employer surveysTracer surveys of graduatesPoland: obligatory for tertiary education institutions*

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SkillsDifference in the importance index (ranges from 1 to 5)Foreign language.54Use of ICT.52Problem solving skills.27Technical/vocational skills (basic & advanced).25Planning and organization.23Self-management & entrepreneurship.21

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Educational system more responsive to the changing labor market needsBroad and transferable skills to prepare workers for the world of growing job and occupational mobilityInteractions with employersLife long learningMore emphasis on development of soft skillsWork attitudes and behavioral skills as important for employability as hard technical skillsEducational system focuses on equipping students with cognitive & technical skills rather than soft skillsClosing the skills gap will require reorientation of educational and training policyGood and accessible labor market information to guide career choicesAs opposed to manpower planningBetter information on skills supply and demandEmployer surveys, tracer surveys of graduates, survey of skills

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*(1) Sectoral shifts require new skills: away from agriculture; from industry to services -> sectors that tend to employ graduates with more years of schooling. But the very process of transformation can imply changing skills. It has become more commonplace that entire industries can disappear.(2) New technologies, e.g. computers(3) As our societies age, we have had to start thinking about remaining productive over a longer horizon. To do that, we need to continue to upgrade our skills(4) Globalization demands more of us on the skill-side: the obvious one is language skills; but globalization can also bring more rapid transformation as the pressures of the outside world make our inefficiencies (or skills gaps) more apparent.*Enterprise restructuring contributes to the skills mismatch*Modern = have a website*