DGVT meeting – Brdo New insight into future skill needs in Europe Aviana Bulgarelli and Alena Zukersteinova Cedefop 1-4 March 2008 DGVT meeting – Brdo Why skills needs analyses • to fill existing information deficits to inform actors on future labour market needs for their decision-making • to support evidence-based policy-making in LLL, employment and social policy 1-4 March 2008 DGVT meeting – Brdo Why a European approach Education and skills - key driver for European growth, competitiveness and jobs need to know which occupations and skills will be required education and training will develop knowledge and skills, promote innovation, fill potential gaps, support growth and restructuring Approaches to anticipate skills exist in several Member States BUT: not yet well established at European level 1-4 March 2008 DGVT meeting – Brdo Cedefop’s pro-active approach • Consistent and comprehensive projections of skill needs across Europe • Unique at European level • European „team work“ launch and coordination of Skillsnet towards a European system for early identification of skill needs 1-4 March 2008 DGVT meeting – Brdo Cedefop presents the first European forecast on occupational skill needs … … to answer the following questions • In which sectors will employment be growing or declining? • Which occupations will be in demand? • For which qualifications will demand increase or decrease? 1-4 March 2008 DGVT meeting – Brdo European skills forecasting – comparable information Europe-wide – feasible & cost-effective First stage: demand side (skill needs - jobs) Second stage: supply side (available skills – people) and identification of possible imbalances Next stages: further improvement of methods and data bases; additional research; joint European approach 1-4 March 2008 DGVT meeting – Brdo Modular approach to skill needs forecasting Overview of the Framework Module 1: Macroeconomic and sectoral scenarios Module 2: Expansion demand by occupation Module 3: Expansion demand by qualification Module 4: Replacement demand 1-4 March 2008 DGVT meeting – Brdo Future trends at a pan-European level (EU-25+) • • • • by sector (up to 41 industries) by occupation (up to 27 occupations) by qualification (3 broad levels) plus replacement demands EU-25+ = EU-25 + Norway and Switzerland 1-4 March 2008 DGVT meeting – Brdo Past and likely future trends by sector (EU-25+) Millions 60 Distribution and transport 50 Non-marketed services Business & other services 40 Manufacturing 30 20 Construction 10 Primary sector & utilities 0 1996 97 98 99 2000 01 02 03 04 05 06 07 08 09 10 11 Forecast 1-4 March 2008 12 13 14 15 DGVT meeting – Brdo 17.9 All industries Past and likely future sectoral change and structure (EU-25+) 13.3 Primary sector and utilities -3.1 -2.3 -2.9 Manufacturing 1996-2006 -0.5 2006-2015 1.4 Construction 0.4 Distribution and transport 5.9 3.5 Business and other services 11.6 8.9 Non-marketed services 5.1 3.2 -5 0 5 10 15 20 million jobs 100% 80% 7.8 26.7 5.6 4.2 Prima ry se ctor a nd utilitie s 23.8 22.4 Ma nufa cturing Se rvice s 60% 40% 65.5 70.6 73.4 2006 2015 20% 1-4 March 2008 0% 1996 DGVT meeting – Brdo Legislators, senior officials and managers 3 2.7 3 Professionals 3.8 Technicians and associate professionals Past and likely future occupational change (EU-25+) 6 4.7 -1 Clerks 1996-2006 2006-2015 -1.3 Service workers and shop and market sales workers 4 2.5 Skilled agricultural and fishery workers -2 -1.7 Craft and related trades workers -2 -1.4 Plant and machine operators and assemblers 0 0.5 6 Elementary occupations 3.5 18 All occupations 13.3 -5 1-4 March 2008 0 5 million jobs 10 15 20 DGVT meeting – Brdo 100% Past and likely future occupational structure (EU-25+) 80% 34.9 37.8 40.6 High-skilled nonmanual occupations 60% 26.0 25.1 24.1 Low-skilled nonmanual occupations Skilled manual occupations 40% 20% 29.9 25.6 22.9 8.6 10.9 11.8 1996 2006 2015 0% 1-4 March 2008 Elementary occupations DGVT meeting – Brdo -2 0 2 4 6 8 10 12 Legislators, senior officials and managers Professionals Technicians and associate professionals Replacement demand (EU-25+) Clerks Service workers, shop/market sales workers Skilled agricultural and fishery workers Craft and related trades workers Replacement demand Plant and machine operators and assemblers Total requirements Elementary occupations 1-4 March 2008 Expansion demand DGVT meeting – Brdo Million jobs 250 Past and 200 likely future 150 qualification 100 trends (EU-25+) 50 High qualification Medium qualification Low qualification 1-4 March 2008 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 0 DGVT meeting – Brdo 100% Past and likely future qualification structure (EU-25+) 20.9 25.3 29.3 80% 60% 46.2 Medium qualification 48.6 49.9 40% 20% 32.9 Low qualification 26.2 20.8 0% 1996 1-4 March 2008 High qualification 2006 2015 DGVT meeting – Brdo Past and likely future qualification structure (Slovenia) 100% 15.6% 24.1% 80% 30.3% High qualification 60% 60.5% Medium qualification 60.6% 59.2% 40% 20% 23.9% 15.4% 10.5% 2006 2015 0% 1996 1-4 March 2008 Low qualification DGVT meeting – Brdo 13 High qualification Past and likely future qualification change (EU-25+) 12.4 13 Medium qualification 9.5 1996-2006 -8 Low qualification 2006-2015 -8.6 18 All qualifications 13.3 -10 -5 0 million jobs 1-4 March 2008 5 10 15 20 DGVT meeting – Brdo Qualification requirements increase in all occupations – also in elementary jobs Change 2006 - 2015 8.3 High-skilled non-manual occupations 3.3 -0.4 2.4 Low-skilled non-manual occupations 1.1 -2.3 High qualification Medium qualification 0.8 Skilled manual occupations 1.5 -4.8 Low qualification 0.9 Elementary occupations 3.6 -1.0 -5 1-4 March 2008 0 million jobs 5 10 DGVT meeting – Brdo Key similarities and differences across countries • Many common trends: – sectors, occupations, replacement needs, qualifications • Some differences: – stage of economic development, different industrial & occupational structures ► process of convergence 1-4 March 2008 DGVT meeting – Brdo Key findings Evolutionary structural change towards service sectors and knowledge-intensive jobs over 13 million additional jobs by 2015 – Almost 16 million new jobs in service sector – Loss of over 2 million jobs in the primary sector and 0,5 million in manufacturing 1-4 March 2008 DGVT meeting – Brdo Demand for skilled occupations today 80 out of 210 million people are employed in high skilled non manual jobs. Expected to increase in next decade jobs requiring generic clerical skills, crafts and agricultural occupations will decline increases expected in elementary occupations (construction, services) 1-4 March 2008 DGVT meeting – Brdo Qualification needs by 2015 job gains requiring highly (12,5 million) and medium qualified workers (9,5 million), in particular vocational qualifications job losses for low qualified workers (8,5 million), even in elementary occupations in 2015, 30% of jobs will need high qualifications, 50% medium. Low qualifications will fall from a third in 1996 to around 20% 1-4 March 2008 DGVT meeting – Brdo Results lead to a knowledge and competence based European model that combines needs for medium and high qualifications and continuing learning and up-skilling in all jobs workers in elementary occupations but with growing qualifications 1-4 March 2008 DGVT meeting – Brdo Future priorities Continuing dialogue: with country experts and stakeholders Overcome data problems: policy support needed to refine data Further refinement: the models/framework Complementary research: forecast of skills supply and more detailed analysis of skill needs at enterprise and sectoral level 1-4 March 2008 DGVT meeting – Brdo Contact details for further information: Cedefop: www.cedefop.europa.eu Skillsnet: www.trainingvillage.gr/skillsnet Alena Zukersteinova alena.zukersteinova@cedefop.europa.eu Torsten Dunkel torsten.dunkel@cedefop.europa.eu 1-4 March 2008