GETTING SKILLS RIGHT Adapting to changing skill needs Marieke Vandeweyer Labour Market Economist - Skills and Employability Directorate for Employment, Labour and Social Affairs DHET LMIP Meeting 14 November 2017, Pretoria
OECD s Getting Skills Right project
OECD Skills for Jobs indicators OECD Skills for Jobs Indicator Skills Needs Indicators Mismatch Indicators Shortage/surplus of occupations Shortage/surplus of skills Qualification mismatch Field-of-study mismatch
Skill needs indicators Skills Shortage index Occupational Shortage index O*NET skill requirements Wage Pressure Employment Pressure Talent Pressure Hourly wage Total employment Unemployment rate Hours worked Underqualification
Skills shortage index Moving from occupations to skills Objective and comparable information Complex problem solving Critical thinking Engineering and technology Arts and humanities Wage Employment O*NET Skills Knowledge Unemployment Hours worked Under-qualification Abilities Finger dexterity Deductive reasoning
Surplus Shortage Many cognitive skills in shortage 0.01 0.005 Skills needs Surpluses in routine/manual skills 0-0.005 Shortages in cognitive skills -0.01-0.015
Surplus Shortage and routine/manual skills in surplus 0.006 Abilities needs 0.004 0.002 Surpluses in routine/manual abilities 0-0.002-0.004-0.006 Shortages in cognitive abilities -0.008-0.01-0.012
Surplus Shortage Knowledge shortages in specific areas 0.015 Knowledge needs 0.01 0.005 0-0.005-0.01-0.015 Education Health and social care IT -0.02-0.025
Written Expression Written Comprehension Oral Expression Deductive Reasoning Inductive Reasoning Fluency of Ideas Oral Comprehension Problem Sensitivity Originality Mathematical Reasoning Speech Clarity Peripheral Vision Glare Sensitivity Spatial Orientation Response Orientation Gross Body Equilibrium Depth Perception Rate Control Speed of Limb Movement Reaction Time Arm-Hand Steadiness Gross Body Coordination Dynamic Strength Control Precision Stamina Manual Dexterity Multilimb Coordination Trunk Strength Extent Flexibility Static Strength Similar pattern across countries, and more pronounced over time 0.025 0.020 Initial year Final year 0.015 0.010 0.005 Surpluses in routine and physical abilities have become more evident 0.000-0.005-0.010-0.015 Shortages in cognitive skills have become more pervasive -0.020 Source: OECD Skills for Jobs Database
Czech Republic Slovak Republic Poland Bulgaria Slovenia Finland Romania Luxembourg Hungary Latvia Europe Denmark Belgium France Austria Norway Lithuania Switzerland Estonia Sweden Iceland Germany Italy Netherlands United Kingdom Spain Portugal Ireland Greece South Africa Many workers are mismatched to their job Underqualification Overqualification Field-of-study mismatch 60% 50% 40% 30% 20% 10% 0%
Discover the Skills for Jobs indicators
Getting Skills Right: South Africa Content: Key drivers of skills demand and supply How does South Africa assess its skill needs? Which policies have been put in place to tackle skills imbalances? What can be done to better align the supply and demand of skills? Recommendations Best practice examples
Skill needs information DHET s list of occupations in high demand Qualitative and quantitative analysis Stakeholder input Continuous efforts to improve methodology 21-step plan for Strategic Integrated Projects Holistic approach LMIP
Skill needs information Key recommendations Develop a uniform method for SETAs to identify skill needs Collect information on employer skill needs on the basis of narrowly-defined and easily measurable concepts (e.g. number of hard-to-fill vacancies) Make the list of occupations in high demand more userfriendly, in order to reach a wide audience
Quality of education Mathematics performance of eight graders, 2015 (TIMSS) Mathematics Science Average score 650 600 550 500 450 400 350 300 Source: Mullis, I.V.S. et al. (2016), TIMSS 2015 International Results in Mathematics, Retrieved from Boston College, TIMSS & PIRLS International Study Center website.
Quality of education Key recommendations Improve the quality of teacher training and make teaching a more attractive career choice Provide career guidance early-on, linked to students abilities Develop clear pathways to vocational and occupational programmes Assure quality through regular inspections Provide sufficient financial opportunities for students to access further education Closely monitor and evaluate the outcomes of different education programmes
Number of students in postschool education and training Registration for workplace training programmes Work-based and lifelong learning Increased participation in TVET and workplace training programmes (SETA-supported) 2500000 AET centres TVET colleges Higher education institutions 250000 unemployed employed 2000000 200000 1500000 150000 1000000 100000 500000 50000 0 2010 2014 Source: DHET Statistics on post-school education and training Interesting initiatives Skills development levy Learnership tax incentive 0 2010 2014 Recognition of prior learning Community colleges
Work-based and lifelong learning Key recommendations Better align TVET to workplace practices and skill needs Reduce the administrative burden of the levy system and further promote existing tax incentives Promote RPL among employees, employers and unemployed Scale up training measures for the unemployed, and transform the PES in a one-stop-shop for training
Coordination and implementation Many stakeholders involved in areas related to skills demand and supply Ministries (Education, Labour, DHET, Home affairs, Trade ) Education and training providers Social partners Survey evidence shows poor cooperation in South Africa 1 59 118 Labour-employer cooperation Switzerland Nicaragua South Africa 1 59 118 Business-government relations Singapore Azerbaijan South Africa (101) Venezuela Source: INSEAD (2017) Global talent competitiveness report
Coordination and implementation Key recommendations Coordination between government departments should happen at early stages, and co-ownership should be encouraged Employers should be given the opportunity to voice their ideas an concerns, preferably through existing bodies (e.g. SETAs, employer organisation) SETAs should serve as intermediaries to improve cooperation between employers and training providers Set measurable targets in strategic documents, and actively involve stakeholders in the target-setting Evaluate measures put in place to ensure they are delivering the intended results in a cost-effective way
Thank you Contact: marieke.vandeweyer@oecd.org Blog: Websites: http://www.oecd.org/employment/skills-and-work.htm