New Skills for New Jobs: Action Now

Professor Mike Campbell OBE

Director of Research and Policy

ETUC Conference

International Trade Union House, Brussels

2 September 2010

A New Ambition

We need a new Ambition, a new

‘Common Sense’: we need New Skills

for New Jobs

Our prosperity depends on Jobs and Productivity: Skills are vital to both

We can and must do better – everyone needs to ‘step up’

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EconomyProductivity/Competitiveness

Employment/Reduced Economic Inactivity

IndividualsJob Entry and Sustainability

Wage Return/ProgressionJob Quality/Satisfaction

EmployersProductivity

Business performance

SocietyHealth Improvements

Crime ReductionParticipation

Social Cohesion/Mobility

SkillsDevelopment

Economically Valuable Skills:The Benefits of Skills Development

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The Value of Skills

Earnings by Educational Attainment (25-64 year olds) OECD Countries in the EU

Country Below Upper Secondary Upper Secondary Tertiary

Austria 66 100 157

Belgium 89 100 133

Czech Republic 74 100 183

Denmark 82 100 125

Finland 94 100 149

France 85 100 149

Germany 90 100 164

Hungary 73 100 214

Ireland 86 100 166

Italy 79 100 165

Netherlands 84 100 148

Poland 84 100 173

Portugal 67 100 177

Spain 85 100 132

Sweden 86 100 126

United Kingdom 70 100 159

Source: OECD (2008) Education at a Glance (most recent data for individual countries)

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The Value of Skills in the Recession

A New Ambition

We need a new Ambition, a new

‘Common Sense’: we need New Skills

for New Jobs

Our prosperity depends on Jobs and Productivity: Skills are vital to bothYet Europe’s ‘inconvenient truth’ is that we are not sufficiently skilled

We can and must do better – everyone needs to ‘step up’

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7

EU and OECD Countries: International Skills Benchmarks

Below Upper Secondary (Low Skills)

Upper Secondary(Intermediate Skills)

Tertiary(High Skills)

Country % Qualified Rank Country %Qualified

Rank Country % Qualified Rank

Czech Republic 9.51

Czech Republic 76.81

Canada 48.31

Japan 11.32

Slovak Republic 72.9

2

Japan 41.01

USA 12.1 3 Poland 67.6 3 New Zealand 41.0 3

Slovak Republic 13.04

Austria 62.64

USA 40.34

Canada 13.4 5 Hungary 61.2 5 Finland 36.4 5

Poland 13.7 6 Germany 60.1 6 Scotland 36.2 n/a

Switzerland 14.6 7 Switzerland 55.5 7 Korea 34.6 6

Sweden 15.4 8 Sweden 53.3 8 Norway 34.2 7

Germany 15.6 9 Japan 47.6 9 Australia 33.7 8

Finland 19.5 10 USA 47.6 9 Ireland 32.2 9

Austria 19.9 11 Norway 44.7 11 Denmark 32.2 9

Hungary 20.8 12 Finland 44.2 12 Belgium 32.1 11

Norway 21.1 13 Denmark 43.3 13 England 32.1 n/a

Korea 22.1 14 Korea 43.3 14 UK 31.8 12

Denmark 24.5 15 Netherlands 42.4 15 Sweden 31.3 13

Netherlands 26.8 16 France 41.9 16 Wales 30.1 n/a

New Zealand 28.4 17 Luxembourg 39.2 17 Netherlands 30.8 14

Scotland 28.4 n/a Italy 38.7 18 Switzerland 29.9 15

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Below Upper Secondary (Low Skills)

Upper Secondary(Intermediate Skills)

Tertiary(High Skills)

Country % Qualified Rank Country %Qualified

Rank Country % Qualified Rank

England 31.1 n/a Canada 38.3 19 Iceland 29.8 16

France 31.3 18 Wales 38.0 n/a Spain 29.0 17

UK 31.7 19 Greece 36.9 20 Northern Ireland 28.3 n/a

Australia 31.8 20 England 36.8 n/a France 26.8 18

Wales 31.9 n/a UK 36.5 21 Luxembourg 26.5 18

Belgium 32.0 21 Belgium 35.9 22 Germany 24.3 20

Ireland 32.4 22 Ireland 35.4 23 Greece 22.7 21

Luxembourg 34.3 23 Scotland 35.4 n/a Poland 18.7 22

Iceland 35.5 24 Northern Ireland 34.9 n/a Hungary 18.0 23

Northern Ireland 36.8 n/a Iceland 34.7 24 Austria 17.6 24

Greece 40.4 25 Australia 34.4 25 Mexico 14.9 25

Italy 47.7 26 New Zealand 30.6 26 Slovak Republic 14.1 26

Spain 49.3 27 Spain 21.7 27 Czech Republic 13.7 27

Mexico 66.7 28 Mexico 18.4 28 Portugal 13.7 27

Turkey 71.3 29 Turkey 17.9 29 Italy 13.6 29

Portugal 72.5 30 Portugal 13.8 30 Turkey 10.8 30

Source: OECD, Education at a Glance 2009, http://statlinks.oecdcode.org/962009061P1G001.xls , data relates to 2007. Note: Distribution of the 25-64 year old population by highest level of education attained. Japan is adjusted compared to the published 2009 data based on the historical proportions published by OECD as data on low skills is no longer collected.

EU and OECD Countries: International Skills Benchmarks

A New Ambition

We need a new Ambition, a new

‘Common Sense’: we need New Skills

for New Jobs

Our prosperity depends on Jobs and Productivity: Skills are vital to bothYet Europe’s ‘inconvenient truth’ is that we are not sufficiently skilled Challenges and opportunities are growing more urgent, with major changes in our economy and labour market: demographics, globalisation, technological and social change

We can and must do better – everyone needs to ‘step up’

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A New Ambition

Make the Case for Skills

Develop a balanced and coherent Action Programme

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Proposed Lines of Action

Better anticipate future skills needs and opening up to talent!

Develop the right mix of skills!

Bring the worlds of education, training & work closer together!

Provide the right incentives for individuals and employers!

Action Now !

Better anticipate future skills needs and opening up to talent!

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Action Now

Agreement, Engagement and Sustained Commitment of the Social Partners

The role of Trade Unions: Empowering the WorkforceReducing Skills and Jobs InequalitiesSector Councils Employer Ambition

Business Strategy Management and Leadership Economic Policy and a ‘high added value’ economy

The VET Sector

A workforce with poor skills

not only makes their own

lives poorer, it makes all of

our lives poorer

….. and a highly skilled workforcewill not only make

their own lives richer,it will make all of our lives richer

Remember .......