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LESSONS LEARNED FROM OECD SKILLS STRATEGY PROJECTS Andrew Bell Team Leader, National Skills Strategy Projects OECD Centre for Skills Education and Skills Directorate

LESSONS LEARNED FROM OECD SKILLS STRATEGY ...OECD countries have sizeable shares of workers with low-levels of basic skills Adults with low literacy and/or numeracy proficiency Share

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Page 1: LESSONS LEARNED FROM OECD SKILLS STRATEGY ...OECD countries have sizeable shares of workers with low-levels of basic skills Adults with low literacy and/or numeracy proficiency Share

LESSONS LEARNED FROM

OECD SKILLS STRATEGY PROJECTS

Andrew BellTeam Leader, National Skills Strategy Projects

OECD Centre for SkillsEducation and Skills Directorate

Page 2: LESSONS LEARNED FROM OECD SKILLS STRATEGY ...OECD countries have sizeable shares of workers with low-levels of basic skills Adults with low literacy and/or numeracy proficiency Share

WHAT DO WE MEAN BY SKILLS?

COGNITIVE &

META

COGNITIVE

SKILLS

TECHNICAL,

PROFESSIONAL,

SECTOR-SPECIFIC

SKILLS

SOCIO-

EMOTIONAL

SKILLS

Page 3: LESSONS LEARNED FROM OECD SKILLS STRATEGY ...OECD countries have sizeable shares of workers with low-levels of basic skills Adults with low literacy and/or numeracy proficiency Share

OECD SKILLS STRATEGY FRAMEWORK

Page 4: LESSONS LEARNED FROM OECD SKILLS STRATEGY ...OECD countries have sizeable shares of workers with low-levels of basic skills Adults with low literacy and/or numeracy proficiency Share

4

THE SKILLS STRATEGY HAS BEEN TESTED IN

13 COUNTRIES

Page 5: LESSONS LEARNED FROM OECD SKILLS STRATEGY ...OECD countries have sizeable shares of workers with low-levels of basic skills Adults with low literacy and/or numeracy proficiency Share

MEGATRENDS ARE SHAPING THE

SKILLS PRIORITIES OF COUNTRIES

GLOBALISATIONTECHNOLOGICAL

CHANGE

DEMOGRAPHIC

CHANGE

Rapid development of

new technologies

Emergence of new

forms of work

Expansion of sources

of learning, especially

online

More integrated world

economy than ever

Expansion of global

value chains,

offshoring and

outsourcing

Increased vulnerability

of some workers

Large expected

decline in working-

age population

Ageing population

Growing number of

immigrants

Page 6: LESSONS LEARNED FROM OECD SKILLS STRATEGY ...OECD countries have sizeable shares of workers with low-levels of basic skills Adults with low literacy and/or numeracy proficiency Share

MEGATRENDS ARE CONTRIBUTING TO POLARISATION

Job polarisation in the past two decades%-point change share of total employment, 1995-2015

Source: OECD (2017), Employment Outlook 2017, Figure 3.A1.1, Job polarisation by country, http://dx.doi.org/10.1787/888933477940

-20

-15

-10

-5

0

5

10

15

20

Low-skilled workers Middle-skilled workers High-skilled workers%

Page 7: LESSONS LEARNED FROM OECD SKILLS STRATEGY ...OECD countries have sizeable shares of workers with low-levels of basic skills Adults with low literacy and/or numeracy proficiency Share

AUTOMATION IS TRANSFORMING

WORKPLACE

Source: Nedelkoska and Quintini (2018)

0

10

20

30

40

50

60

70%

Jobs at risk of Automation

Share of jobs at HIGH RISK (>70%) of automation and at SIGNIFICANT RISK (50-70%)

26%

27%

14%

32%

Page 8: LESSONS LEARNED FROM OECD SKILLS STRATEGY ...OECD countries have sizeable shares of workers with low-levels of basic skills Adults with low literacy and/or numeracy proficiency Share

Workers reporting needing further training for their job by education levelShare of total workers, 2012/2015

0

10

20

30

40

50

60

Lower secondary

or less

Upper secondary Post-secondary,

non-tertiaryTertiary –

professional

degree

Tertiary –

bachelor degree

Tertiary – master /

research degree

Source: Survey of Adult Skills (2012, 2015)

highly digital

environment

Less digital

environment

DIGITALISATION RAISES NEED FOR TRAINING

Page 9: LESSONS LEARNED FROM OECD SKILLS STRATEGY ...OECD countries have sizeable shares of workers with low-levels of basic skills Adults with low literacy and/or numeracy proficiency Share

ALL WITH IMPORTANT IMPLICATIONS FOR

FOR TALENT MANAGEMENT

Primary and

secondary

education

Job

age

From:

To:

Job

Tertiary

educationRetire

Primary and

secondary

education

ECECTertiary

education Job

Job Job

JobJob

Retire

DEVELOPING SKILLS ACTIVATING SKILLS

DEVELOPING SKILLS ACROSS THE LIFE COURSE

EFFECTIVELY USING SKILLS

Page 10: LESSONS LEARNED FROM OECD SKILLS STRATEGY ...OECD countries have sizeable shares of workers with low-levels of basic skills Adults with low literacy and/or numeracy proficiency Share

DEVELOPING RELEVANT SKILLS

ACROSS THE LIFECOURSE

Page 11: LESSONS LEARNED FROM OECD SKILLS STRATEGY ...OECD countries have sizeable shares of workers with low-levels of basic skills Adults with low literacy and/or numeracy proficiency Share

OECD countries have sizeable shares of

workers with low-levels of basic skills

Adults with low literacy and/or numeracy proficiencyShare of population 25-65 year-olds

Source: OECD calculations based on OECD (2017), OECD Survey of Adult Skills database (PIAAC) (2012, 2015),

OECD, Paris, www.oecd.org/skills/piaac/ (accessed March 2017).

0

10

20

30

40

50

60

70% In both literacy and numeracy In literacy only In numeracy only

Page 12: LESSONS LEARNED FROM OECD SKILLS STRATEGY ...OECD countries have sizeable shares of workers with low-levels of basic skills Adults with low literacy and/or numeracy proficiency Share

12

Relative performance in skills development for youth and adults

AUSAUT BEL

CANCZE

DNK

EST

FIN

FRA

DEU

GRC

IRL

ISR

ITA

JPN

KOR

NLDNZL

NOR

POL

SVK

SVN

ESP

SWE

USA

-50

-40

-30

-20

-10

0

10

20

30

40

50

-50 -40 -30 -20 -10 0 10 20 30 40 50How skilled are youth? (%-difference from average)

How strong are foundational skills of adults?(%-difference from average)

TUR

(-89,-87)

CHL

(-65,-90)

Note: The figure is based on indicators from the Skills Strategy Dashboard, using normalised scores of the following aggregated indictors:“how skilled are youth”, based on PISA scores 2015, and “how strong are foundational skills of adults”, based on PIAAC scores.Source: OECD (2015), Programme for International Student Assessment (PISA), 2015; and OECD (2018), OECD calculations based on Surveyof Adult Skills, 2012/2015.

SUCCESS IN THE EARLY YEARS IS CRITICAL

Page 13: LESSONS LEARNED FROM OECD SKILLS STRATEGY ...OECD countries have sizeable shares of workers with low-levels of basic skills Adults with low literacy and/or numeracy proficiency Share

0

10

20

30

40

50

60

70

Top quarter Third quarter

Second quarter Bottom quarter

The PISA index of economic, social and cultural status (ESCS)

Early exposure to computers% of students who first used a computer when they were 6 years or younger

Source: PISA 2015.

%

CHILDREN DO NOT ALL BENFIT FROM THE

SAME OPPORTUNITES TO LEARN

Page 14: LESSONS LEARNED FROM OECD SKILLS STRATEGY ...OECD countries have sizeable shares of workers with low-levels of basic skills Adults with low literacy and/or numeracy proficiency Share

14

THERE IS NO TRADE-OFF BETWEEN EXCELLENCE AND EQUITY

AUS

AUT

BEL

CAN

CZE

DNK

EST FIN

FRA DEU

GRC

IRL

ISRITA

JPN

KOR

NLDNZL NOR

POL

SVK

SVNESP SWE

GBR

USA

-70

-50

-30

-10

10

30

50

70

-50 -30 -10 10 30 50Performance in skills development (youth–adults)

(%-difference from average)

Equity in skills

development

(youth–adults)

(%-difference

from average)

TUR

(-88,-30)

CHL

(-80,-53)

Note: Figure is based on indicators from the Skills Strategy Dashboard. Performance in skills development is defined as the average of thenormalised scores of aggregates ‘how skilled are youth’ (based on PISA scores 2015), ‘how skilled are young tertiary educated adults’ and‘how strong are foundational skills of adults’ (both based on PIAAC scores). For the equity in skills development, the indicator is based on theaggregates ‘are skills of youth being developed inclusively’ (PISA ESCS parity index), ‘how inclusive is tertiary education’, and ‘are skills ofadults being developed inclusively’ (tertiary attainment and skills respectively by education level parents, PIAAC).Source: OECD (2015), Programme for International Student Assessment (PISA), 2015; and OECD (2018), OECD Survey on adult skills, 2012/2015.

Relative performance and equity in skills development, youth and adults

Page 15: LESSONS LEARNED FROM OECD SKILLS STRATEGY ...OECD countries have sizeable shares of workers with low-levels of basic skills Adults with low literacy and/or numeracy proficiency Share

ACCESS TO ECEC MAKES A DIFFERENCE

ESPECIALLY FOR DISADVANTAGED BACKGROUNDS

Score-point difference in science performance between 15-year-old students who attended early childhood

education (ISCED 0) for two years or more and those who attended for less than two years (PISA 2015)

Note: statistically insignificant values are indicated with a lighter color.Source: OECD (2017), Starting Strong 2017: Key OECD Indicators on Early Childhood Education and Care.

-20

-10

0

10

20

30

40

50

60

70G

erm

an

y (

10 %

)

Be

lgiu

m (

4 %

)

Fra

nc

e (

7 %

)

Sp

ain

(8 %

)

Ita

ly (

8 %

)

Sw

ed

en

(10 %

)

Luxe

mb

ou

rg (

14

%)

Cze

ch

Re

pu

blic

(7

%)

Slo

va

k R

ep

ub

lic (

15 %

)

No

rwa

y (

11 %

)

Ice

lan

d (

4 %

)

Au

stria

(1

1 %

)

Un

ite

d K

ing

do

m (

33

%)

OEC

D a

ve

rag

e (

23

%)

Gre

ec

e (

21 %

)

Ne

w Z

ea

lan

d (

22 %

)

De

nm

ark

(7 %

)

Ja

pa

n (

7 %

)

Un

ite

d S

tate

s (3

7 %

)

Ko

rea

(18

%)

Ca

na

da

(53

%)

Slo

ve

nia

(2

2 %

)

Au

stra

lia (

49 %

)

Ch

ile (

44 %

)

Lith

ua

nia

(34 %

)

Me

xic

o (

19 %

)

Est

on

ia (

8 %

)

Ire

lan

d (

51 %

)

Fin

lan

d (

28

%)

Latv

ia (

10

%)

Po

rtu

ga

l (7

2 %

)

Sw

itze

rla

nd

(20 %

)

Turk

ey (

81 %

)

After accounting for students' and schools' socio-economic profileBefore accounting for students' and schools' socio-economic profile

Score-point

difference

Page 16: LESSONS LEARNED FROM OECD SKILLS STRATEGY ...OECD countries have sizeable shares of workers with low-levels of basic skills Adults with low literacy and/or numeracy proficiency Share

IT IS NOT ONLY ABOUT MONEY

IT IS ALSO ABOUT HOW WE SPEND IT

Luxembourg

Switzerland

NorwayAustria

Singapore

United States

United Kingdom

Malta

Sweden

Belgium

Iceland

Denmark

Finland

Netherlands

Canada

JapanSlovenia

Australia

Germany

Ireland

France

ItalyPortugal

New Zealand

Korea

Spain

PolandIsrael

Estonia

Czech Rep.

Latvia

Slovak Rep.

Russia

Croatia

LithuaniaHungary

Costa Rica

Chinese Taipei

Chile

Brazil

Turkey

Uruguay

BulgariaMexico

Thailand

Montenegro

Colombia

Peru

Georgia

R² = 0,01

R² = 0,41

300

350

400

450

500

550

600

0 20 40 60 80 100 120 140 160 180 200

Sc

ien

ce

pe

rfo

rma

nc

e (

sco

re p

oin

ts)

Average spending per student from the age of 6 to 15 (in thousands USD, PPP)

Spending per student from the age of 6 to 15 and science performance

Source: OECD (2018), PISA 2015.

Page 17: LESSONS LEARNED FROM OECD SKILLS STRATEGY ...OECD countries have sizeable shares of workers with low-levels of basic skills Adults with low literacy and/or numeracy proficiency Share

6

7

8

9

10

11

12

13

14

15

16

0

10

20

30

40

50

60

Fin

lan

d

Ge

rma

ny

Sw

itze

rla

nd

Jap

an

Est

on

ia

Sw

ed

en

Ne

the

rla

nd

s

Ne

w Z

ea

lan

d

Au

stra

lia

Cze

ch

Re

pu

blic

Un

ite

d K

ing

do

m

Ca

na

da

Be

lgiu

m

Fra

nc

e

No

rwa

y

Slo

ve

nia

Ice

lan

d

Luxe

mb

ou

rg

Ire

lan

d

Latv

ia

OEC

D a

ve

rag

e

Au

stria

Po

rtu

ga

l

Lith

ua

nia

De

nm

ark

Hu

ng

ary

Po

lan

d

Slo

va

k R

ep

ub

lic

Sp

ain

Un

ite

d S

tate

s

Isra

el

Ko

rea

Ita

ly

Gre

ec

e

Ch

ile

Me

xic

o

Turk

ey

Sc

ore

po

ints

in s

cie

nc

e p

er

ho

ur

of

lea

rnin

g t

ime

Hours

Intended learning time at school (hours) Study time after school (hours) Score points in science per hour of total learning time

IT’S NOT ABOUT HOW MUCH TIME WE SPEND

BUT ABOUT HOW WE USE THE TIME

Time spent

learning at school

Time spent learning

outside of school

Productivity

Learning time and science performance

Source: OECD (2018), PISA 2015.

Page 18: LESSONS LEARNED FROM OECD SKILLS STRATEGY ...OECD countries have sizeable shares of workers with low-levels of basic skills Adults with low literacy and/or numeracy proficiency Share

TERTIARY EDUCATION CAN HELP BUILD STRONG SKILLS,

BUT IT IS NO GUARANTEE

Mean literacy score of adults by educational attainment, 25-65 year-olds

Source: OECD calculations based on OECD (2017), Survey of Adult Skills database (PIAAC) (2012, 2015),

www.oecd.org/skills/piaac/ (accessed March 2017).

220

230

240

250

260

270

280

290

300

310

320Mean score

Tertiary Upper secondary

Page 19: LESSONS LEARNED FROM OECD SKILLS STRATEGY ...OECD countries have sizeable shares of workers with low-levels of basic skills Adults with low literacy and/or numeracy proficiency Share

Source: OECD Survey of Adult Skills

Qualification, literacy and field-of-study mismatch, percentage of mismatched workers, by type of mismatch

MANY PEOPLE GRADUATE WITHOUT THE SKILLS THAT ARE

DEMANDED IN THE LABOUR MARKET

0 20 40 60

Slovak RepublicSlovenia

TurkeyPoland

DenmarkCzech Republic

FlandersFinland

SpainKorea

United StatesNetherlands

ChileGreece

GermanyOECD average

NorwayAustria

ItalyN. Ireland (UK)

EstoniaJapan

SwedenCanadaAustralia

England (UK)IrelandFrance

New Zealand

A. Qualification mismatchOver-qualified Under-qualified

0 20 40

N. Ireland (UK)Netherlands

PolandFinland

CanadaFrance

SwedenFlanders

EstoniaDenmarkAustraliaSlovenia

KoreaUnited States

JapanEngland (UK)

NorwayNew Zealand

OECD averageTurkey

GermanySlovak Republic

ItalyCzech Republic

AustriaSpain

IrelandChile

Greece

B. Literacy mismatch

Over-skilled Under-skilled

0 20 40 60

FinlandGermany

AustriaSloveniaNorwaySweden

NetherlandsDenmark

EstoniaCanada

Slovak RepublicCzech Republic

FlandersOECD average

PolandGreece

TurkeySpain

United StatesJapan

N. Ireland (UK)Italy

ChileKorea

C. Field of study mismatch

Page 20: LESSONS LEARNED FROM OECD SKILLS STRATEGY ...OECD countries have sizeable shares of workers with low-levels of basic skills Adults with low literacy and/or numeracy proficiency Share

A LARGE SHARE OF ADULTS SEES NO NEEDTO CONTINUE LEARNING

Willingness to participate in formal and/or non-formal education

Source: OECD calculations based on OECD (2017), OECD Survey of Adult Skills database (PIAAC) (2012, 2015), OECD,

Paris, www.oecd.org/skills/piaac/20

0

10

20

30

40

50

60

70

80

90

100

%ParticipatedNot participated, but wanted to participateNot participated and didn't want to participate

47%

48%

5%

Page 21: LESSONS LEARNED FROM OECD SKILLS STRATEGY ...OECD countries have sizeable shares of workers with low-levels of basic skills Adults with low literacy and/or numeracy proficiency Share

BARRIERS TO ADULT LEARNING ARE NUMEROUS

Reasons preventing participation in (more) formal and/or non-formal educationShare of total, 2012/2015

Source: OECD calculations based on OECD (2017), OECD Survey of Adult Skills database (PIAAC) (2012, 2015), OECD,

Paris, www.oecd.org/skills/piaac/

0 5 10 15 20 25 30

Something unexpected came up that prevented me

from taking education or training

Lack of employer’s support

Did not have the prerequisites

Other

Childcare or family responsibilities

The course or programme was offered at an

inconvenient time or place

Too busy at work

Too expensive

Slovenia OECD average

Page 22: LESSONS LEARNED FROM OECD SKILLS STRATEGY ...OECD countries have sizeable shares of workers with low-levels of basic skills Adults with low literacy and/or numeracy proficiency Share

0

10

20

30

40

50

60

70

80

90

100

%Level 0/1 Level 4/5

Participation of adults in education and training by skill levelShare of adults (25-65 year-olds) participating in formal and/or non-

formal education and training by literacy level, 2012 or 2015

Source: Survey of Adult Skills (2012, 2015)

ADULTS WITH THE LOWEST SKILLS ARE LESS

LIKELY TO PARTICIPATE IN TRAINING

Page 23: LESSONS LEARNED FROM OECD SKILLS STRATEGY ...OECD countries have sizeable shares of workers with low-levels of basic skills Adults with low literacy and/or numeracy proficiency Share

0

10

20

30

40

50

IN EDUCATION – OUT OF THE

LABOUR FORCEIN EDUCATION – EMPLOYED IN EDUCATION – UNEMPLOYED

Share of students having participated in open/distance education in

last 21 months prior to survey, by employment status

Source: Survey of Adult Skills (2012, 2015)

ATTACHMENT TO THE LABOUR MARKET

MATTERS FOR ACCESS TO TRAINING

Page 24: LESSONS LEARNED FROM OECD SKILLS STRATEGY ...OECD countries have sizeable shares of workers with low-levels of basic skills Adults with low literacy and/or numeracy proficiency Share

24

KEY AREAS FOR ACTION

TO IMPROVE SKILLS DEVELOPMENT

Developing a culture of lifelong learning: raising aspirations and supporting informed learning choices

Preparing lifelong learners: Building a strong foundation in early learning and compulsory school

Making lifelong learning sustainable and rewarding in adulthood: strengthening financing arrangements for lifelong learning

Making lifelong learning visible: strengthening systems of skills validation and certification

Making lifelong learning accessible and relevant: encouraging the development of education and training markets that are more responsive to

the needs of adults

Page 25: LESSONS LEARNED FROM OECD SKILLS STRATEGY ...OECD countries have sizeable shares of workers with low-levels of basic skills Adults with low literacy and/or numeracy proficiency Share

25

EXAMPLES OF GOOD PRACTICES

Norway: Committee on Skills Needs coordinates the work of ministries and

stakeholders in the area of skills needs

assessment and responses Denmark: Adult and Continuing

education (ACE) system is a flexible adult education system that is completely

parallel to regular education systemGermany: MYSKILLS

is a test that helps jobseekers without

formal vocational qualifications to

demonstrate their vocational skills Japan: “whole child education”

develops a broad range of skills by applying various approaches and

activating teachers

Page 26: LESSONS LEARNED FROM OECD SKILLS STRATEGY ...OECD countries have sizeable shares of workers with low-levels of basic skills Adults with low literacy and/or numeracy proficiency Share

USING SKILLS EFFECTIVELY

IN WORK AND LIFE

Page 27: LESSONS LEARNED FROM OECD SKILLS STRATEGY ...OECD countries have sizeable shares of workers with low-levels of basic skills Adults with low literacy and/or numeracy proficiency Share

Effect of education and literacy proficiency on the likelihood of being employedMarginal effects (as percentage point change) of a one standard deviation increase in years

education and literacy on the likelihood of being employed among adults not in formal education

Notes: The reference category is «unemployed». Results are adjusted for gender, age, marital and foreign-born status. One standard deviation in proficiency in literacy for the working population is 48 score points. One standard deviation in years of education is 3.2 years for the working population. Statistically significant values (at the 10% level) are shown in a darker tone.Source: Survey of Adult Skills (PIAAC) (2012, 2015).

-3-2-10123456789

10Years of education Proficiency (literacy)

EDUCATION AND SKILLS PROFICIENCY

ARE KEY TO ACTIVATING SKILLS

Page 28: LESSONS LEARNED FROM OECD SKILLS STRATEGY ...OECD countries have sizeable shares of workers with low-levels of basic skills Adults with low literacy and/or numeracy proficiency Share

28

AUS

AUT

BEL

CAN

CZEDNKEST

FIN

FRA

DEU

GRC

IRL

ISR

ITA

JPN

KOR

NLD

NZL

NOR

POL

SVK

SVN

ESP

SWE

USA

-70

-50

-30

-10

10

30

50

70

-50 -40 -30 -20 -10 0 10 20 30 40 50How strong are foundational skills of adults?

(%-difference from average)

Do workplaces

make intensive

use of skills?

(%-difference

from average)

Note: The figure is based on indicators from the Skills Strategy Dashboard, using normalised scores of the following aggregatedindicators: ‘How strong are foundational skills of adults?’ and ‘Do workplaces make intensive use of skills?’ both based on PIAAC scores.Source: OECD (2018), OECD calculations based on Survey of Adult Skills, 2012/2015.

EDUCATION AND SKILLS PROFICIENCY ARE

KEY TO USING SKILLS INTENSIVELY

Skills of adults and the use of skills in the workplace

Page 29: LESSONS LEARNED FROM OECD SKILLS STRATEGY ...OECD countries have sizeable shares of workers with low-levels of basic skills Adults with low literacy and/or numeracy proficiency Share

THE INTENSITY OF SKILLS USE VARIES CONSIDERABLY ACROSS COUNTRIES

Use of reading skills at work and literacy proficiency

200

220

240

260

280

300

320

1,8

2,0

2,2

2,4

2,6

2,8

3,0

3,2

3,4

Proficiency scoreSkills-use indicators

Reading at work Literacy proficiency (rigth hand axis)

Source: OECD calculations based on OECD (2017), OECD Survey of Adult Skills database (PIAAC) (2012, 2015).

Note:Skills use indicators are scales between 1 "Never" and 5 "Every day". Proficiency scores range from 0 to 500

Page 30: LESSONS LEARNED FROM OECD SKILLS STRATEGY ...OECD countries have sizeable shares of workers with low-levels of basic skills Adults with low literacy and/or numeracy proficiency Share

HIGH-PERFORMANCE WORK PRACTICES HELP DRIVE SKILLS USE

Source: Survey of Adult Skills (PIAAC) (2012, 2015).

Skills use at work and High Performance Workplace Practices, PIAAC 2012,2015

Turkey

Austria

Chile

Czech Republic

Denmark

England (UK)

Estonia

Finland

Flanders (BEL)

France

Germany

Greece

Ireland

Italy

Japan

Korea

N. Ireland (UK)

Netherlands

New Zealand

Norway

OECD

Poland

Slovak Republic

SloveniaSpain

Sweden

Turkey

United States R² = 0,5463

1,8

2

2,2

2,4

2,6

2,8

3

3,2

2,3 2,4 2,5 2,6 2,7 2,8 2,9 3 3,1

Reading at work index

Mean HPWP index

Organisation practices such as:

• Teamwork

• Autonomy

• Task discretion,

• Mentoring, and

• Job rotation

Management practices such as:

• use of incentive pay,

• training practices, and

• flexibility in working hours

Page 31: LESSONS LEARNED FROM OECD SKILLS STRATEGY ...OECD countries have sizeable shares of workers with low-levels of basic skills Adults with low literacy and/or numeracy proficiency Share

0

10

20

30

40

50

60

Use of reading at work Use of writing at work Use of numeracy at work Use of ICT skills at work Problem solving skills at work

Firm size Occupation Industry

High-Performance Work Practices (HPWP) Skills proficiency Country fixed effects

HIGH PERFORMANCE WORKPLACE PRACTICES

MATTER MORE THAN MANY OTHER FACTORS

The contribution of factors to the variance of skills use at work

Share of the variance in skills use explained by each factor

Source: OECD (2016) OECD Employment Outlook 2016

Page 32: LESSONS LEARNED FROM OECD SKILLS STRATEGY ...OECD countries have sizeable shares of workers with low-levels of basic skills Adults with low literacy and/or numeracy proficiency Share

SMEs IN PARTICULAR COULD BENEFIT FROM

THE INCREASED ADOPTION OF HPWP

High-performance work practice by firm size in the OECDAverage HPWP score by firm size

Source: OECD calculations based on OECD (2017), OECD Survey of Adult Skills database (PIAAC) (2012, 2015),

OECD, Paris, www.oecd.org/skills/piaac/ (accessed March 2017).

2,65

2,7

2,75

2,8

2,85

1-10 employees 11-50 employees 51-250 employees 251+ employees

HPWP - All factors HPWP - Work organisation factors only

Page 33: LESSONS LEARNED FROM OECD SKILLS STRATEGY ...OECD countries have sizeable shares of workers with low-levels of basic skills Adults with low literacy and/or numeracy proficiency Share

33

SKILLS USE MATTERS FOR SUCCESS IN SOCIETY

The effect of the use of skills on positive social outcomes%-point increase in likelihood of positive outcomes when reading skills are

used intensively at work and home, beyond the effect of literacy proficiency

0

2

4

6

8

10

12

High trust Regular volunteerism Strong political efficacy Very good or excellent

health

%-point difference

Intensive use of reading skills at work Intensive use of reading skills at home

Note: Regression controlling for literacy proficiency, educational attainment, gender, parental educational attainment and age.Only adults aged 25-64 included in regression, and employed for regressions on the use of reading skills at work. For the socialindicators, the following definitions have been used: high trust is reflected in (strongly) disagreeing with the statement of trusting onlyfew people, regular volunteerism is defined as participating in voluntary work at least once per month, and political efficacy isreflected in (strongly) disagreeing with the statement of feeling of no influence.Source: OECD calculations based on OECD (2012, 2015) Survey of Adult Skills (PIAAC) (database), http://www.oecd.org/skills/piaac/.

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34

KEY AREAS FOR ACTION

TO IMPROVE SKILLS USE

Promoting labour market participation: reducing barriers to work and activating displaced workers

Making more intensive use of skills in the economy: Improving work organisation and management practices and involving social partners in the

modernisation of work organisations

Using skills strategically to foster innovation and growth: Stimulating demand for higher-level skills and developing managerial and entrepreneurship

capabilities

Using skills to strengthen social cohesion: promoting, facilitating and incentivising the use of skills in society

Expanding the pool of available talent: attracting the right skills from abroad, improving transparency of skills and providing language training

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35

UK’s investment fund programmes-- employers submit funding proposals

to tackle particular skill challenges,

while working in partnership with their

employees, trade unions and training

providers

New Zealand has a number of policies to promote awareness about High

Performance Work Practices (HPWP)

and their benefits for employees and

employersItaly’s Industria 4.0 is a set of industrial

policies that support using skills to

transition the economy towards higher

technology intensity

Finnish Workplace Developmentsupported 1800 projects

in workplaces to disseminate good practices for work organisation and

management

EXAMPLES OF GOOD PRACTICES

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STRENGTHENING GOVERNANCE

OF SKILLS SYSTEMS

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THE POLICY HEADACHE: ISOLATED SECTORAL

POLICIES CAN HAVE UNINTENDED OUTCOMES

Improve access

to tertiary

education

Improve

education

outcomes

Firms cannot

implement

digital

transition

Stagnant demand

for skills in the

labour market

Migration

Loss of HK

No improvements

in primary and

secondary

education

Poor skills

outcomes and

mismatches

Increase R&D

investment in a

sector

Lack of tailored

education services

(Tertiary, VET)

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Housing &

transport policies to ensure

mobility of

workers

A RANGE OF POLICIES IS NEEDED TO MAKE THE

MOST OUT OF THE DIGITAL TRANSFORMATION

Education

policiesto develop the right

skills and better

harness potential of

technology

Labour market policies

to ensure

flexibility and

adaptability

Industrial policiesto foster

competitiveness

& adopt digital

innovations

Innovation

policiesto adopt and

invent new

technologies

Migration policies to influence

supply of skills and

support

knowledge

spillovers

Tax policies to create

incentives for

employees and employers to

invest in skills

Social policiesto ensure social protection for

non-standard

work contracts &

unemployed

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COORDINATING, ALIGNING AND SEQUENCING REFORMS

IS KEY TO OPTIMISING THE OUTPUT OF POLICIES

Coordinate

policies

Sequence

policies

Align

policies

Helps to ensure policies are coherent and mutually reinforcing

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Levels of government

COLLABORATION IS KEY TO SUCCESSFUL REFORMS

Stakeholders

Ministries

Government

agencies

Regional and local

authorities

EmployersTrade unions

Employment

services

Professional

associations

SME

representatives

Student

organisations

Educational

institutionsculture of lifelong

learning

Intensive skills use

in workplaces

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KEY AREAS FOR ACTION

TO IMPROVE GOVERNANCE

COLLABORATING

ACROSS

GOVERNMENT

ENGAGING

STAKEHOLDERS

BUILDING INTEGRATED

INFORMATION

SYSTEMS

ALIGNING AND

COORDINATING

FINANCING

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42

EXAMPLES OF GOOD PRACTICES

Portugal: General Council for Professional

Training (CGFP) advises government on the

ongoing improvement of professional

training in the civil service, including the

skills needed to support engagement

U.S. Next Generation Sector Partnerships supports public partners from local

workforce development, economic

development, education to work with

stakeholders to respond to skills challenges

identified by those stakeholders

Ireland Skillnetssupports groups of private businesses in the

same sector and/or region come together

to fund training that may not have been

possible if each firm acted on its own.

Illinois Longitudinal Data System (ILDS) links

education and labour market data to

support research and analysis by

government and qualified third parties,

while establishing strong protocols to

preserve privacy and security.

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The OECD Skills Strategy is being updated to better respond to countries’ needs for strong skills policies in the digital age

43

LEVERAGING THE OECD SKILLS STRATEGY

Lessons

learned from

experience

working on

national

skills

strategies

with

11 countries

New evidence on how

digitalisation and other mega

trends:

Analytical

insights on

policies that

work learned in the past five

years

Demand higher & new bundles of skills

Require developing skills throughout

life

Require strong governance and financing of skills systems.

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THANK YOU!

Andrew Bell, Team Leader, OECD Skills Strategy Projects

OECD Centre for Skills

To learn more about the OECD’s work on skills visit:

www.oecd.org/skills/

OECD SKILLS OUTLOOK 2019SKILLS AND DIGITALISATION

2019