The 2011 Skills and Human Capital Summit Getting Europe Back to Work

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1 The 2011 Skills and Human Capital Summit Getting Europe Back to Work Résidence Palace, Brussels Thursday, 15 September 2011 Twitter #lisboncouncil

2 Fueling Growth and Compe44veness in Poland Through employment, skills and innova4on World Bank Europe 2020 Team Lisbon Council Skills and Human Capital Summit 15 September 2011

3 Point of Departure Post- crisis economic growth in the EU- 10 is likely to be lower than before the crisis Structural reforms could accelerate growth Reforms to focus on: Raising employment (65% 75%) Improving skills Enhancing technology absorp4on and innova4on 3

4 Increasing Labor s Contribu4on to Growth 1. Encouraging higher labor force par4cipa4on Popula4on aging shrinking labor force Large unu4lized pool of labor Low labor force par4cipa4on of older persons, especially women Need to reform further social security system (early re4rement, pensions, etc.) and reconsider re4rement age Flexible forms of employment and lifelong learning 2. Enhancing labor produc4vity by addressing the skills gap

5 Inac4vity is associated with low skills Incidence of inac<vity by educa<on Persons in pre - re<rement age Women Men Primary Voca4onal Sec general Sec technical Ter4ary percent

6 Cri4cal for raising employment: Ac4va4ng older workers, especially women Effect of the 10% fall in inac<vity by age and gender on the aggregate employment rate age group Men Women

7 Skill shortages are a major obstacle especially for innova4ve firms Romania Lithuania Latvia Poland Estonia Slovak R. Czech R. Croatia Bulgaria Slovenia Hungary Workforce education as major or severe obstacle to firm operation Percentage of firms reporting (2008) percent

8 New jobs vs. jobs that were destroyed Machine operators The difference between the shares in job creation and in job destruction by occupation 2009 Elementary Craftsmen Sales workers Personal service Net job destruction Clerks Technicians Net job creation Professionals Managers percentage points

9 Importance of generic skills and aatudes lacking by young job applicants Responsibility & reliability Motivation & commitment Team working Advanced technical/vocational Communication Basic technical/vocational Self- management & enterpren. Planning & organizing Customer care Use of ICT Problem solving Literacy Numeracy Foreign language Employability skills percentage of employers reporting as "very important" percent

10 Poland has made remarkable advances through recent educa4on reforms Successful reforms Reform of general educa<on (including focus on learning outcomes) Expansion of ter<ary educa<on and recent HE reforms Unfinished reform agenda Lifelong learning though Human Capital Development Strategy is under way and work on NQF is progressing Expansion of early childhood development with a view to quality and equity of educa<on

11 Issue of long ter4ary educa4on and lible par4cipa4on in lifelong learning ac4vi4es Percentage of (first 4me) graduates by dura4on of program Poland: 17% plan to seek work acer gradua4on (lowest in Europe with Romania Slovakia) As compared to 65% for Norway, Sweden and Finland countries with strong lifelong learning systems Sources: OECD, World Bank staff.

12 Addressing the Skills Gap Educa4onal system responsive to the changing labor market needs Employers to be involved, but not drive the agenda More emphasis on development of generic skills Focus on lifelong learning Role of Early Childhood Development and Bachelor Labor market informa4on for different occupa4ons and more transparency But not manpower planning Tracer studies

13 Thank you!