ANTICIPATING SKILLS FOR THE
FUTURE OF WORK
Stefano Scarpetta
Director for Employment, Labour and Social Affaires
OECD
Skills Summit
Porto, 28-29 June 2018
Skill demands are changing as a result of
global trends
What jobs will
people do?
How will they do
them?
Which skills will
be needed?
Technology
Digitalisation
Globalisation
Environmental
change
Ageing
Societies
2
The 3 mega-trends
Populations are ageing
The world has become more integrated
Share of business sector jobs sustained by consumers in
foreign markets
Old-age dependency ratio 65+/(15-64)
OECD average
The robots are coming
Estimated worldwide annual supply of industrial robots
2015
2050
0
100
200
300
400
500
600
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
'000ofunits
3
0%
10%
20%
30%
40%
50%
Germany
Portugal
Italy
United
Kingdom
France
Canada
Japan
United
States
Labour markets are changing
The disappearing middle: jobs by skill level
(% change in employment shares 1995-2015)
4
New vacancies for gig workers
(May 2016=100)
90
100
110
120
130
140
150
May-16
Jul-16
Sep-16
Nov-16
Jan-17
Mar-17
May-17
Jul-17
Sep-17
Nov-17
Jan-18
Source: Oxford Internet Institute, Online Labor Index
A number of jobs at risk of automation
(as a % of all jobs)
0
10
20
30
40
50
60
Risk of significant change (50-70%)
-15
-10
-5
0
5
10
15
France
Portugal
UnitedKingdom
Italy
Germany
OECDAverage
UnitedStates
Canada
Japan
Low skill Middle skill High skill
We need to change the way we think about
skills
New skill sets
for new
occupations
and tasks
ICT skills, problem-
solving skills, socio-
emotional skills
New forms of
employment
Decision-making
skills
Training policies
for multiple careers
Lifelong learning,
skills recognition
Inaction can lead to costly skills imbalances
6
Qualification and field-of-study mismatch
Source: OECD Skills for Jobs Database
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
CzechRepublic
SlovakRepublic
Poland
Slovenia
Finland
Hungary
EUaverage
UnitedStates
Denmark
Belgium
France
Lithuania
Norway
Austria
Switzerland
Sweden
Germany
Netherlands
Italy
NewZealand
UnitedKingdom
Spain
Portugal
Turkey
Greece
Ireland
Underqualification Overqualification Field-of-study mismatch
Inaction can lead to costly skills
imbalances
Source: Skills Outlook (2013): Survey of Adults Skills, PIAAC (2012)
0
2
4
6
8
10
12
14
16
18
20
Austria
Spain
Czech
Republic
Ireland
Germany
Slovak
Republic
Italy
Korea
Japan
Australia
UnitedStates
Norway
Denmark
Poland
Estonia
Netherlands
Canada
Finland
Sweden
Percentageofoverandunder-skilled(Literacy),PIAAC
Over-skilled Under-skilled
Labour market demand is concentrating in
high-cognitive and soft skills
8
-0.015
-0.01
-0.005
0
0.005
0.01
0.015
0.02
JudgmentandDecisionMaking
SocialPerceptiveness
Troubleshooting
EquipmentSelection
VerbalAbilities
ReasoningAbilities
PhysicalStrength
Endurance
HealthServices
EducationandTraining
ArtsandHumanities
ManufacturingandProduction
Skills Abilities Knowledge
United States EU unweighted average
<-surplusshortage->
Source: OECD Skills for Jobs Database
High-Cognitive Skills:
Verbal and Reasoning abilities,
Judgment & Decision Making,
Social Perceptiveness
Knowledge areas:
Health Services,
Education and Training,
Mathematics and ICT
Source: OECD Skills for Jobs Database- Unweighted average for European Countries
…while imbalances have grown over time
-0.020
-0.015
-0.010
-0.005
0.000
0.005
0.010
0.015
0.020
0.025
WrittenExpression
DeductiveReasoning
InductiveReasoning
FluencyofIdeas
ProblemSensitivity
Originality
MathematicalReasoning
Arm-HandSteadiness
GrossBodyCoordination
Stamina
ManualDexterity
MultilimbCoordination
StaticStrength
Final year Initial year
Surpluses in routine and
physical abilities have become
more evident
Shortages in cognitive
skills have become
more pervasive
Skills imbalances have negative effects for all
Vacancies remain unfilled
for too long
Delays in production
Slow adoption of
technologies
Higher turnover and re-
training costs
10
Substantial
wage penalty
Reduced
Job satisfaction
For individuals For employers
Key policy principles for effective SAA
Systems
Identify
clear
objectives
Set up
information
systems
Involve
relevant
stakeholders
Use the
results for
policy making
Identify clear objectives and tools to reach
them
Assessment of current needs
(Surveys, Administrative data)
+
Forecast of demand and supply
Policy formulation
Tailored Sectoral exercises
+
Regional and local
disaggregation
Strategic
Planning
Links with schools,
universities
+
Web-platforms,
mobile applications
Career guidance
Set up information systems
1. Develop exercises that make the most of qualitative
and quantitative information on skill needs
– Canada: ‘FutureSkillsLab’ uses big-data to track emerging
trends and feed into policy intervention
– UK: Migration Advisory Committee analyses online vacancy
data to identify skill shortages and inform migration policy
2. Include sectoral and sub-national analysis
– Portugal: “Sistema de Antecipação de Necessidades de
Qualificações” (National Qualification Needs Anticipation
System, SANQ). SANQ identified short and medium term
skill needs at the regional level
– Norway: study to forecast future supply and demand for
advanced ICT competences up to 2030 and recently
established an ad-hoc ‘Commission on Future Skill Needs’
But some barriers to SAA exercises exist…
Source: Getting Skills Right: Assessing and Anticipating Changing Skill Needs (2016)
Note: Values based on responses from 29 countries reporting at least one involved actor
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Lack of human resources
with relevant knowledge
and expertise
Poor statistical
infrastructure
Lack of funds Low reliability and
accuracy of past exercises
Other
Percentageofcountriesreportingbarrier
 Need to boost human
resources and capability
 Strengthen statistical
infrastructures
 More funds
Involve relevant stakeholders
• Cross-ministerial collaboration
– Japan: Central Training Council articulates discussions about
skills anticipation in the context of the training system across
ministries, regional/sub-regional administrative levels and
stakeholders.
• Social partners
– Australia: social partners lead skills anticipation exercises
(Industry Skills Forecasts) and provide direct input for policy
action.
• Sub-national and sectoral entities
– France: Réseau Emploi Compétences (REC) brings together
different providers of skills needs exercises and decision makers
from related fields at various administrative levels (national,
sectoral, regional )
Contact: Stefano.Scarpetta@OECD.org
Twitter: @stescarpetta
Blog:
Websites: http://www.oecd.org/employment/skills-and-work.htm
Thank you

Strengthening governance in the collection and use of information on skills needs

  • 1.
    ANTICIPATING SKILLS FORTHE FUTURE OF WORK Stefano Scarpetta Director for Employment, Labour and Social Affaires OECD Skills Summit Porto, 28-29 June 2018
  • 2.
    Skill demands arechanging as a result of global trends What jobs will people do? How will they do them? Which skills will be needed? Technology Digitalisation Globalisation Environmental change Ageing Societies 2
  • 3.
    The 3 mega-trends Populationsare ageing The world has become more integrated Share of business sector jobs sustained by consumers in foreign markets Old-age dependency ratio 65+/(15-64) OECD average The robots are coming Estimated worldwide annual supply of industrial robots 2015 2050 0 100 200 300 400 500 600 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 '000ofunits 3 0% 10% 20% 30% 40% 50% Germany Portugal Italy United Kingdom France Canada Japan United States
  • 4.
    Labour markets arechanging The disappearing middle: jobs by skill level (% change in employment shares 1995-2015) 4 New vacancies for gig workers (May 2016=100) 90 100 110 120 130 140 150 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18 Source: Oxford Internet Institute, Online Labor Index A number of jobs at risk of automation (as a % of all jobs) 0 10 20 30 40 50 60 Risk of significant change (50-70%) -15 -10 -5 0 5 10 15 France Portugal UnitedKingdom Italy Germany OECDAverage UnitedStates Canada Japan Low skill Middle skill High skill
  • 5.
    We need tochange the way we think about skills New skill sets for new occupations and tasks ICT skills, problem- solving skills, socio- emotional skills New forms of employment Decision-making skills Training policies for multiple careers Lifelong learning, skills recognition
  • 6.
    Inaction can leadto costly skills imbalances 6 Qualification and field-of-study mismatch Source: OECD Skills for Jobs Database 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% CzechRepublic SlovakRepublic Poland Slovenia Finland Hungary EUaverage UnitedStates Denmark Belgium France Lithuania Norway Austria Switzerland Sweden Germany Netherlands Italy NewZealand UnitedKingdom Spain Portugal Turkey Greece Ireland Underqualification Overqualification Field-of-study mismatch
  • 7.
    Inaction can leadto costly skills imbalances Source: Skills Outlook (2013): Survey of Adults Skills, PIAAC (2012) 0 2 4 6 8 10 12 14 16 18 20 Austria Spain Czech Republic Ireland Germany Slovak Republic Italy Korea Japan Australia UnitedStates Norway Denmark Poland Estonia Netherlands Canada Finland Sweden Percentageofoverandunder-skilled(Literacy),PIAAC Over-skilled Under-skilled
  • 8.
    Labour market demandis concentrating in high-cognitive and soft skills 8 -0.015 -0.01 -0.005 0 0.005 0.01 0.015 0.02 JudgmentandDecisionMaking SocialPerceptiveness Troubleshooting EquipmentSelection VerbalAbilities ReasoningAbilities PhysicalStrength Endurance HealthServices EducationandTraining ArtsandHumanities ManufacturingandProduction Skills Abilities Knowledge United States EU unweighted average <-surplusshortage-> Source: OECD Skills for Jobs Database High-Cognitive Skills: Verbal and Reasoning abilities, Judgment & Decision Making, Social Perceptiveness Knowledge areas: Health Services, Education and Training, Mathematics and ICT
  • 9.
    Source: OECD Skillsfor Jobs Database- Unweighted average for European Countries …while imbalances have grown over time -0.020 -0.015 -0.010 -0.005 0.000 0.005 0.010 0.015 0.020 0.025 WrittenExpression DeductiveReasoning InductiveReasoning FluencyofIdeas ProblemSensitivity Originality MathematicalReasoning Arm-HandSteadiness GrossBodyCoordination Stamina ManualDexterity MultilimbCoordination StaticStrength Final year Initial year Surpluses in routine and physical abilities have become more evident Shortages in cognitive skills have become more pervasive
  • 10.
    Skills imbalances havenegative effects for all Vacancies remain unfilled for too long Delays in production Slow adoption of technologies Higher turnover and re- training costs 10 Substantial wage penalty Reduced Job satisfaction For individuals For employers
  • 11.
    Key policy principlesfor effective SAA Systems Identify clear objectives Set up information systems Involve relevant stakeholders Use the results for policy making
  • 12.
    Identify clear objectivesand tools to reach them Assessment of current needs (Surveys, Administrative data) + Forecast of demand and supply Policy formulation Tailored Sectoral exercises + Regional and local disaggregation Strategic Planning Links with schools, universities + Web-platforms, mobile applications Career guidance
  • 13.
    Set up informationsystems 1. Develop exercises that make the most of qualitative and quantitative information on skill needs – Canada: ‘FutureSkillsLab’ uses big-data to track emerging trends and feed into policy intervention – UK: Migration Advisory Committee analyses online vacancy data to identify skill shortages and inform migration policy 2. Include sectoral and sub-national analysis – Portugal: “Sistema de Antecipação de Necessidades de Qualificações” (National Qualification Needs Anticipation System, SANQ). SANQ identified short and medium term skill needs at the regional level – Norway: study to forecast future supply and demand for advanced ICT competences up to 2030 and recently established an ad-hoc ‘Commission on Future Skill Needs’
  • 14.
    But some barriersto SAA exercises exist… Source: Getting Skills Right: Assessing and Anticipating Changing Skill Needs (2016) Note: Values based on responses from 29 countries reporting at least one involved actor 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Lack of human resources with relevant knowledge and expertise Poor statistical infrastructure Lack of funds Low reliability and accuracy of past exercises Other Percentageofcountriesreportingbarrier  Need to boost human resources and capability  Strengthen statistical infrastructures  More funds
  • 15.
    Involve relevant stakeholders •Cross-ministerial collaboration – Japan: Central Training Council articulates discussions about skills anticipation in the context of the training system across ministries, regional/sub-regional administrative levels and stakeholders. • Social partners – Australia: social partners lead skills anticipation exercises (Industry Skills Forecasts) and provide direct input for policy action. • Sub-national and sectoral entities – France: Réseau Emploi Compétences (REC) brings together different providers of skills needs exercises and decision makers from related fields at various administrative levels (national, sectoral, regional )
  • 16.
    Contact: [email protected] Twitter: @stescarpetta Blog: Websites:http://www.oecd.org/employment/skills-and-work.htm Thank you