LATVIA COUNTRY REPORT

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1 e-skills IN EUROPE LATVIA COUNTRY REPORT JANUARY 2014 Disclaimer The views expressed in this report are those of the authors and do not necessarily reflect those of the European Commission. Neither the European Commission nor any person acting on behalf of the Commission is responsible for the information provided in this document.

2 Table of Content 1 Overview Indicators on innovation, competitiveness and ICT skills E-skills demand and supply forecasts Policy and major stakeholders initiatives Selected multi-stakeholder partnerships Success of e-skills policies and activities in meeting the objectives of the EU e-skills agenda and other relevant European initiatives / 17

3 1 Overview According to the forecasts of the Ministry of Economics, without changes in education system, the demand for ICT practitioners in 2020 will exceed supply by 21%. Both the economic crisis of and demographic trends have contributed to the deficit of ICT practitioners at present. In 2008 and 2009, during the latest economic crisis, the demand for ICT practitioners strongly declined and their salaries decreased. Due to this fact, many ICT practitioners emigrated or changed their profession. Furthermore, general demographic trends have triggered a strong decrease of students number in the recent years, whereas ICT studies have also been affected. Consequently, the demand for ICT practitioners is expected to grow in the next few years. What is positive is that a policy has become active to mitigate the situation. According to the national statistical sources, the number of employed in ICT sector increased from 17,369 in 2009 to 18,346 in In the current economic crisis, there have so far been no indications that the country is affected by out-migration of ICT graduates. 3 / 17

4 2 Indicators on innovation, competitiveness and ICT skills Latvia eskills21 study: e-skills index 2010 eskills21 study: Digital literacy index 2010 Score 2009/2010 Rank 2009/2010 Score 2011/2012 EU27 Rank 2011/2012 Change (Rank) Comment Max.: Max.: 9.0 EuRA e-skills index Max.: 5.0 ICT practitioners in % of total employment 2012 Digital literacy skills of the population 2009/11: Individuals with high level of computer skills Individuals with high level of Internet skills Individuals using the Internet (last three months) Global Competitiveness Index (GCI) 2010/12 Networked Readiness Index (NRI) 2010/ % 20 EU average: 3.43% 17% 23 29% 12 EU average: 28.52% 11% 9 31% 1 EU average: 13.67% 64% 14 70% 1 EU average: 71.33% Max.: 5.61 EU median: Max.: 5.6. EU median: 4.5 Individual readiness Business readiness Government readiness Individual usage Business usage Government usage PISA scores (2009) in: Mathematics EU median: 493 Science EU median: 498 Reading EU median: / 17

5 esk21 Digital Literacy Policy Index esk21 eskills Policy Pisa Science Index Pisa Maths EURA ICT policy index Pisa Reading NRI Internet use Internet skills NRI Individual readiness NRI Business readiness EU LV Computer skills ICT professionals NRI Government readiness NRI Individual usage GCI NRI Business usage NRI Government usage 5 / 17

6 3 E-skills demand and supply forecasts Latvia LV Rank EU27 EU27 ICT practitioner workforce , ,403,000 ICT practitioner workforce 2012 as percent of total workforce 2.7% % Assumed excess demand ,000 Forecast excess demand ,000 Forecast excess demand ,000 Forecast ICT practitioner jobs , ,503,000 Forecast ICT practitioner jobs , ,950,000 Workers Management, business architecture and analysis level 5, ,477, as percent of total workforce 0.6% % Workers ICT practitioners, professional level 10, ,393, as percent of total workforce 1.1% % Workers ICT practitioners, technician and associate level 8, ,532, as percent of total workforce 1.0% % Growth core ICT workforce % 5 3.0% Growth core ICT workforce % % Growth core ICT workforce % % Growth broad ICT workforce % % ISCED 5A/B first degree graduates in Computer Science, , graduates per 1000 population aged graduates 2011 as percent of 2006 (= peak EU) 102% 11 88% Vocational training graduates in Computer Science, ,000 Sources and notes: see annex. 6 / 17

7 1.5% 1.2% 0.9% 0.7% 1.1% 0.9% 0.7% 0.5% 0.2% 0.3% 0.3% 0.7% 0.7% 0.7% 0.4% 0.2% 0.6% 0.4% 0.5% 0.4% 0.3% 0.5% 0.3% 0.3% 0.7% 1.6% 1.5% 1.9% 1.1% 0.9% 0.6% 0.8% 0.7% 0.6% 1.0% 0.8% 1.4% 1.7% 1.1% 1.3% 1.2% 0.9% 0.5% 1.5% 1.5% 1.4% 0.6% 1.9% 1.7% 1.0% 1.6% 2.1% 1.7% 2.4% 1.9% 1.0% 0.5% 1.7% 1.4% 0.6% 1.8% 1.8% 0.8% 1.0% 0.9% 0.8% 3.2% 3.1% 2.7% 1.8% 1.5% 1.2% 0.7% 1.2% 1.5% 1.1% 1.3% 1.0% 0.6% 2.0% 1.7% 1.3% 1.1% 1.3% ICT workforce: Demand and Jobs in Latvia e-skills shortage: Potential vacancies in Latvia (Main Forecast Scenario) (Main Forecast Scenario) Demand potential LV Jobs LV 100 Expected vacancies - LV Source: empirica 2013 Source: empirica 2013 Potential vacancies as percent of ICT workforce Latvia (Main Forecast Scenario) Potential vacancies in Europe (EU27) by scenario ,0% EU27 - expected vacancies as % of ICT workforce ,0% 10,0% LV - expected vacancies as % of ICT workforce 11,5% Disruptive Boost ,0% 6,0% 4,0% 2,0% 0,0% 6,8% 3,7% 2,7% 2,3% 2,2% Main Forecast Scenario Stagnation Source: empirica 2013 Source: empirica 2013 ICT practitioner workforce as percent of total workforce in EU Member States in 2012 First degree graduates in Computer Science (ISCED 5A/B) per 1000 population aged 20-24, % 6.0% 5.6% 5.0% 5.5% 5.4% 5.0% % 3.0% 4.1% 4.1% 3.9% 3.9% 3.7% 3.4% 3.4% 3.1% 3.1% 2.9% 2.9% 2.9% 2.8% 2.7% 2.7% 2.6% 3.4% % 2.3% 2.2% 2.1% 1.9% 1.6% 1.4% % % LU UK FI SE DK BE IE NL MT EE FR AT DE CZ SK SI IT ES HU LV PL CY BG PT LT GR RO EU Management, Business Architecture and Analysis level skills ICT practitioners, professional level ICT practitioners, technician and associate level ICT Professionalsas % of workforce 0.0 EU IT LU PT RO BE BG SE IE AT HU DE FI SK NL GR LT LV EE CY CZ DK SI PL UK MT FR ES Source: empirica 2013 Source: empirica / 17

8 4 Policy and major stakeholders initiatives The Ministry of Environmental Protection and Regional Development (VARAM) is in charge of the development of the Information Society in Latvia, including e-skills development. The Cabinet of Ministers approved in 2010 the Plan of Latvia s Strategic Development (Latvijas Stratēģiskās attīstības plāns gadam). It puts much emphasis on e-skills development of citizens, as take-up of electronic services in the public and private sectors is fully dependent on citizens being equipped at least with a basic set of e-skills. Another Plan approved by the Cabinet of Ministers in 2011 is the E-skills Development Plan for (Elektronisko prasmju attīstības plāns gadam). The aim of the Plan is to contribute to the development of the Information Society by increasing the level of digital literacy and e-skills of Latvian citizens according to their educational and professional background. The target groups are entrepreneurs and staff of SMEs, officials of local government, the unemployed and other job seekers, people of pre-retirement age and pensioners, people with disabilities, and young people. A major stakeholder in the e-skills field is LIKTA, the Latvian ICT Association. LIKTA runs a number of initiatives and programmes on e-skills, covering all parts and levels of the country's education system. In 2012 during the e-skills week, a Memorandum on Fostering e-skills Development in Latvia was signed by representatives of State organizations, ICT sector and nnon-governmental organizations, initiated by LIKTA and signed by the Ministry of Economics, the Ministry of Education and Science, the Ministry of Welfare, the Ministry of Environmental Protection and Regional Development, the Latvian Open Technology Association, the Latvian Internet Association and the Latvian Chamber of Commerce and Industry. Other state institutions and associations of the ICT sector also were invited to join the memorandum. Activities of e-skills week covered all territory of Latvia: 114 regions and towns, 42,690 Latvian citizens participated in it. Altogether, citizens were offered 855 events provided by 300 partners: State Ministries, State Agencies, enterprises, banks, schools and universities, libraries, institutions of municipalities and nongovernmental organisations. The focus of e-skills week 2013 was laid on attraction of young men to ICT career, since 56% of participants were pupils and students. Latvia in the last four years is one of the most active participants of e-skills week. What is also relevant in the context of digital literacy is that the Government established 10 ICT training centres within the framework of EU Structural Funds, with the aim to provide support in implementation of e-government solutions at regional and local level. It includes e-skills trainings for officials of municipalities. One examples is the Ventspils Digital Centre, which prepares training materials and carries out trainings in basic computer skills and use of ICT. Participant groups are officials of municipalities, medical employees, entrepreneurs, people with disabilities, pensioners, children and young people. Additionally, in the framework of EU projects, Educational centres for adults and young people were established in some Latvian regions, where e-skills can be improved. Latvia is unique in that it has included the whole ECDL curriculum into high school programmes already in Since 2009 the Social project of Lattelecom Ltd Connect Latvia has been providing free of charge access to a self-learning online computer school Study by yourself. It allows acquiring basic skills in computer and internet use and programming. Moreover, it provides practical exercises and tests for online assessment of personal e-skills level. The aim of the project Connect Latvia is to promote the development of e-skills and to show the wider society benefits of using ICT. Overall, 1650 persons in 2011 and 6680 persons in 2012 successfully passed the exam on computer use. Furthermore, Latvian citizens can assess their level of e-skills through the use of the IT Barometer 8 / 17

9 developed by LIKTA in It also helps to accumulate the statistical information on the level of e- skills along some socio-demographic characteristics like age, gender, occupation. As concerns entrepreneurship, within the framework of the LIKTA campaign "E-trained Entrepreneur 2009", a 24-hour training programmes were offered to small and medium enterprises. The programme included basic skills of processing information and security, possibilities of e-business, etc. Entrepreneurship has also been included in curricula for ICT related course programmes at universitoes. Moreover, the majority of higher education institutions offering ICT study courses have business incubators. Summary Assessment of Latvian e-skills Activities: Latvia has a master strategy to develop e-skills, but focusing mainly on ICT user skills of groups at risk of exclusion. Activities for improving skill supply from ICT practioners are concentrating on training measures and awareness raising activities as well as supporting SMEs and other enterprises. Summary Assessment of Latvian Digital Literacy Activities: Latvia has a master strategy regarding digital literacy. Measures include awareness raising, support for disadvantaged groups, training of teachers, self-assessment tools, training measures targeted towards specific groups and support for enterprises acquiring skills. Summary Assessment of Latvian e-leadership & Digital Entrepreneurship activities: No policy initiatives are in place which explicitly deal with e-leadership skills, but digital entrepreneurship is mentioned in some strategic policy papers, and entrepreneurship training has been included in ICT related university study programmes. Like in the precursor study 1 the assessment of the information gathered resulted in two activity indices, one for digital literacy and one for e-skills computed for each country. These were computed based on data from 2009 and The e-leadership skills activity index was computed only for 2013, as no data had been collected on this topic in In the following the focus will be on the e-skills activity index; we first mapped the e-skills activity index values against the Networked Readiness Index (NRI) 2 for each of the 27 Member States. This allows for putting the results of the e-skills policy and activity analysis in the different countries in the wider context of each country s propensity to exploit the opportunities offered by ICT using data which can be obtained from the country values on the Networked Readiness Index (NRI). The following figure allows a comparison of the results from this exercise for 2009 and In the graphical illustrations four quadrants are shown which are built by using the European averages on the NRI and those on the e-skills policy activity index for the respective years in order to group the countries into four main clusters. 1 2 Hüsing, T. and Korte, W.B. (2010) "Evaluation of the Implementation of the Communication of the European Commission 'e-skills for the 21st Century'", URL: final_report_en.pdf The World Economic Forum's Networked Readiness Index (NRI) measures the propensity for countries to exploit the opportunities offered by ICT. It is published annually as part of the Global Information Technology Report. The NRI is a composite of three components: the environment for ICT offered by a given country (market, political and regulatory, infrastructure environment), the readiness of the country s key stakeholders (individuals, businesses, and governments) to use ICT, and finally the usage of ICT amongst these stakeholders. For further information on the NRI see 9 / 17

10 e-skills activity Index 2013 e-skills activity Index 2009 European country landscape on e-skills policy activity versus ICT innovation capability III UK IV 4 MT BE IE 3 2 PL RO LV SK HU DE FR AT NL DK SE 1 BG GR IT I CY CZ LT ES SI PT LU EE FI II 0 3,5 4 4,5 5 5,5 6 Networked Readiness Index 2009 European country landscape on e-skills policy activity versus ICT innovation capability III UK IV 4 MT IE FR BE DE DK NL SE 3 PL EE AT 2 BG IT HU LV ES CY LT LU FI 1 RO GR SK I CZ SI PT II 0 3,5 4 4,5 5 5,5 6 Networked Readiness Index 2013 Overall and for e-skills related policies and initiatives a strong increase of activity levels over the five-year time span can be identified. The unweighted average e-skills policy index score increased from 2.4 to 2.9 between 2009 and This is encouraging news. 10 / 17

11 Our analysis revealed that in 2009 three of the four quadrants are well populated by different countries with only 7 countries belonging to the group of top performers both, in terms of e-skills policy index as well as NRI, and 11 Member States constituting those best described as low activity countries (bottom left quadrant). Five years later the situation has changed significantly; we are now faced with a situation which can be described as a dichotomy in Europe on these indicators: top performing countries as opposed to countries with low activity levels and NRI performance, with only three countries (Poland, Luxembourg and Finland) in transition phases between these clusters. The group of top performers has grown from 7 to 11 with Sweden, Denmark, Austria and Estonia entering this cluster to which the United Kingdom, the Netherlands, Belgium, Ireland, Malta, Germany and France already belonged in However, the group of low activity countries is still substantial in terms of numbers of countries with 13 EU Member States almost 50% showing a below average performance on the NRI and on the e-skill skills policy activity index. EU Member States fall into two very distinct groups: 41% of the Member States are top performers, almost 50% are low activity countries, and 11% located between these two clusters. While the former have been successful on the e-skills front and capable of exploiting ICT to become innovative and more competitive the latter group of low activity countries still has a rather long way to go to achieve both. A look at the Member States positions in the NRI ranking (Networked Readiness Index) reveals that again, those countries with high NRI positions also show high e-skills policy activity levels. The countries moving up in terms of migrating into the top performers cluster include Sweden, Denmark, Austria and Estonia, as well as the Netherlands and France which managed to further increase their e-skills policy activity level. Countries at the risk of losing ground include Hungary, Latvia and Romania which dropped down into the first cluster of countries, i.e. those lagging behind. European country clusters on e-skills policy activity versus ICT innovation capability 2013 I : low NRI + Low level of e-skills policy activity Romania, Greece, Slovakia, Czech Republic, Slovenia, Portugal, Spain, Cyprus, Lithuania, Bulgaria, Italy, Hungary, Latvia Poland III : Low NRI + high level of e-skills policy activity II : High NRI + low level of e-skills policy activity Luxembourg, Finland IV : High NRI + high level of e-skills policy activity United Kingdom, Ireland, Sweden, Netherlands, Denmark, Germany, Belgium, France, Malta, Austria, Estonia 11 / 17

12 5 Selected multi-stakeholder partnerships The following is a list of multi-stakeholder partnerships of major relevance to the e-skills issue: Information technology training for small and micro-enterprises to promote competitiveness and productivity: The goal of project, which started in 2012 and will run until 2015, is to promote the operation efficiency and productivity of SMEs on the basis of ICT and e-skills, to increase their competitiveness and growth. Different activities are in the project. The goal is to promote the use of technologies and their tools in order to provide better management of companies' finances and personnel, as well as more qualitative work with their customers and suppliers. It is planned to realize the three level training: a) use of e-skills and ICT solutions for increase of productivity in SMEs; b) use of ICT tools for increase of competitiveness and development of SMEs; c) use of ICT solutions for improvement of business efficiency and export stimulation. The target is to involve 5,000 enterprises in these activities. The project operates under the ESF Operational Programme "Human Resources and Employment". Stakeholders involved include LIKTA, BDA, LATI NSOFT, FMS, DZC and Latvijas Tirdzniecības un rūpniecības kamera". Boosting theoretical knowledge and practical competences of teachers in vocational education: The project ( ) focuses on IT training of teaching staff in the vocational education system. Training consists of theoretical study, practical seminars and internships in enterprises in Latvia's IT sector and other EU countries. The goal of the project is to improve: 1) the competence of IT teaching staff at vocational schools in order to improve learning outcomes and ultimately to improve the supply of ICT practitioners on the country's labour market, 2) the competence of teachers in other fields of vocational education in order to provide enhanced digital literacy throughout the vocational education system. Stakeholders include: National Centre for Education, University of Latvia, Riga Technical University, Employers Confederation of Latvia, Free Trade Union Confederation of Latvia, as well as 54 Latvian vocational education institutions. Microsoft Partners in Learning Mentors Programme: The Microsoft Partners in Learning programme provide innovative programmes and professional development for teaching staff. In the framework of this project the virtual lessons for teachers are organized, whereas leading ICT specialists conduct classes simultaneously for teacher from all over Latvia. The goal is to prepare mentors of technologies who can give their knowledge to other teachers in Latvia. Every school can invite a mentor for further teaching on efficient use of technologies in everyday work. Microsoft benefits, on its part, through promotion of company's products. 12 / 17

13 6 Success of e-skills policies and activities in meeting the objectives of the EU e-skills agenda and other relevant European initiatives The extent to which policies, initiatives and multi-stakeholder partnerships have been successful in helping meet the objectives of the EU e-skills agenda and other relevant European e-skills initiatives as seen by national experts is further described below along key actions and action lines of the EU e-skills strategy and other relevant EU initiatives. Longer term cooperation Long term collaboration between Latvian Confederation of Employers, trade unions, and Ministry for Eduacation of Science is in place to define qualifications of most needed occupations. Concerning cooperations, two collaboration memoranda were signed in 2009 between VARAM and Latvian ICT Associations. The memorandum signed with the Latvian Open Technology Association intends to establish the cooperation in the field of ICT policy and ICT education within a society. Another memorandum signed with the Latvian ICT Association (LIKTA) aims at development of the Latvian electronic administration system and electronic services, as well as enhancement of e-skills within a society. In 2012 LIKTA developed a charter of ICT priorities, which points out six key directions, guiding ICT industry development in Latvia for the next five years. For instance, it includes promotion of ICT as a business tool among entrepreneurs and ICT education from the young age. The charter of ICT priorities was signed by the Ministry of Transport, nongovernmental organizations, leading High schools, enterprises of ICT sector as well as other organizations State Agency Information systems of culture, Latvian Open Technology Association, Employers Confederation of Latvia, Latvian Internet Association, Latvian IT Cluster, Ltd, Latvian National Project Management Association, etc. Further longer term cooperation consists of the following projects: "Information technology training for small and micro-enterprises to promote competitiveness and productivity" Increasing of theoretical knowledge and practical competences of teachers of vocational education and praxis managers Mentors programme Microsoft Partners in Learning Human resources investment Human resources investment has been applied in the following projects: "Information technology training for small and micro-enterprises to promote competitiveness and productivity" Project Increasing of theoretical knowledge and practical competences of teachers of vocational education and praxis managers Mentors programme Microsoft Partners in Learning Attractiveness of ICT jobs The project Increasing of theoretical knowledge and practical competences of teachers of vocational education and praxis managers has been instrumental in helping improve the attractiveness of ICT jobs in the eyes of students in vocational education and training (VET). 13 / 17

14 Corporate reputation research in the ICT sector, conducted by market research company TNS Latvia 3, shows that the total reputation of the sector in Latvia is a little bit higher than that in the sector of finance, however, significantly lower than in Europe. The average index of reputation is 32 which is significantly below the average index in Europe. Employability and e-inclusion Employability and e-inclusion has been at the core of a number of projects of limited size and scope, including: "Information technology training for small and micro-enterprises to promote competitiveness and productivity" Project Increasing of theoretical knowledge and practical competences of teachers of vocational education and praxis managers Mentors programme Microsoft Partners in Learning Lifelong acquisition of e-skills Lifelong learning with a focus on ICT user skills has been at the core of a number of projects of limited size and scope, including: Project "Information technology training for small and micro-enterprises to promote competitiveness and productivity" Project Increasing of theoretical knowledge and practical competences of teachers of vocational education and praxis managers Closing the e-skills gap Digital literacy projects have included: Project "Information technology training for small and micro-enterprises to promote competitiveness and productivity" Project Increasing of theoretical knowledge and practical competences of teachers of vocational education and praxis managers Mentors programme Microsoft Partners in Learning / 17

15 Researched and prepared by: empirica Gesellschaft für Kommunikations- und Technologieforschung mbh, Bonn, Germany Oxfordstr Bonn, Germany info@empirica.com For the European Commission DG Enterprise and Industry 15 / 17

16 Annex: data sources Source eskills21 study: e-skills index 2010 eskills21 study carried out by empirica. Report available at eskills21 study: Digital literacy index 2010 EuRA e-skills index ICT practitioners in % of total employment 2012 Digital literacy skills of the population 2009/11: Individuals with high level of computer skills Individuals with high level of Internet skills Individuals using the Internet (last three months) Global Competitiveness Index (GCI) 2010/12 Networked Readiness Index (NRI) 2010/12 Individual readiness Business readiness Government readiness Individual usage Business usage Government usage PISA scores (2009) in: Mathematics Science Reading EU-RA 2009: Financial and fiscal incentives for e-skills: State of play in Europe. Synthesis report. LFS data made available by Eurostat Eurostat, database isoc_ski The Global Competitiveness Report : The Global Information Technology Report : OECD, Indicator Source Further remarks ICT practitioner workforce 2012 ICT practitioner workforce 2012 as percent of total workforce Assumed excess demand 2012 Forecast excess demand 2015 Forecast excess demand 2020 Forecast ICT practitioner jobs 2015 Forecast ICT practitioner jobs 2020 Eurostat Labour Force Survey. Some imputations and assumptions not in the original data but done by empirica apply Empirica, IDC The definition can be looked up in the final report, Gareis et al. 2014: E-SKILLS: MONITORING AND BENCHMARKING POLICIES AND PARTNERSHIPS IN EUROPE. LFS based, number of ICT practitioners / number of workers in all occupations This is calculated using the percentage of vacancies per existing job and is based on a survey carried out in As some countries were not covered, several assumptions apply Forecasts are scenario based and the methodology can be found in the final report (see above). Forecast of demand in the six largest countries (DE, UK, FR, IT, ES, PL) is based on country specific economic scenarios, for the 21 smaller countries only an aggregate scenario was developed and figures allocated according to ICT employment shares. Workers Management, Based on Eurostat Labour Force LFS based, definitions can be looked up in the final 16 / 17

17 business architecture and analysis level... as percent of total workforce Workers ICT practitioners, professional level... as percent of total workforce Workers ICT practitioners, technician and associate level... as percent of total workforce Growth core ICT workforce Growth core ICT workforce Growth core ICT workforce Growth broad ICT workforce ISCED 5A/B first degree graduates in Computer Science, graduates per 1000 population aged graduates 2011 as percent of 2006 (= peak EU) Vocational training graduates in Computer Science, 2011 Survey, some definitions and calculation by empirica. Some imputations and assumptions not in the original data but done by empirica apply. Based on Eurostat Labour Force Survey, some definitions and calculation by empirica. Some imputations and assumptions not in the original data but done by empirica apply. Eurostat, database educgrad_5 Eurostat, databases educ_grad5 and demo_pjangroup Eurostat, database educ_grad5 report. ISCO-88 groups 213 and 312. Due to the break in series in 2010/11 only partly comparable to later data. ISCO-08 groups 25 ICT professionals, 35 Information and communications technicians. Equals the ICT practitioner workforce This figure represents a count of first degrees in ISCED 5A and first qualifications in 5B. See discussion of this indicator in the final report. Graduates as above. The denominator is used to make data comparable but there is no age restriction in the number of graduates. Some imputations and assumptions may apply. Number of Computing graduates in Upper secondary education (level 3) - pre-vocational and vocational programme orientation and Postsecondary non-tertiary education (level 4) - prevocational and vocational programme orientation. Some imputations and assumptions may apply. 17 / 17