A labour market perspective on LLL Presented by: Tony Donohoe, Head of Education and Social Policy

Labour Market & Educational Attainment National Unemployment Rate = 12.7% Educational attainment levels have improved significantly in recent years – 38 percent of LF now have third level educational attainment and above – although we still have significant cohort (20%) of those with lower secondary and below. Significant gender differences here too with females in the labour force having much higher levels of educational attainment. It is also worth noting here that the profile of unemployment will be different to that which existed in the past – we generally have a labour force that is better skilled and can do more. Without going into the detail of it, unemployment for graduates is less than half what it is for those with below Leaving Cert Main point is the educational attainment is a good marker as to whether someone is likely to be/remain unemployed – and therefore this is a way of targeting/prioritising certain groups and we will come back to this.

Labour market turnover - main source of job opportunities

Employment & Skills Outlook Pharma, medical devices, ICT services, globally traded services, environmental industries expected to hold up. Particular pressures on construction, print and packaging, primary food, retail, local services, traditional manufacturing, financial services, tourism & leisure Multinationals Consolidating, repositioning and evaluating global operations. Success will be measured by job creation and job retention Indigenous enterprises Strategic management skills and experience are essential. Niche sectors will perform strongly (life sciences, software, environmental goods & services) May be an increased interest in start-ups The need for upgrading skills has not changed – industries still moving on same paths, though maybe not as quickly

Generic skills Basic skills literacy, using numbers, using technology, digital skills People-related skills communication, interpersonal, team working, customer-service skills, languages Conceptual & organisational skills Learning-to learn, collecting & organising information, problem -solving, planning & organising, learning-to-learn skills, innovation & creativity, systems thinking

Science/Technology, Engineering & Mathematics Demand for certain high-skilled and ‘experienced’ people exists even in a less buoyant labour market There is and will be significant future demand for a wide range of STEM occupations – drivers of economic growth From an enterprise perspective, ‘education and skills’ is a key part of Ireland's enterprise value proposition to foreign direct investors High level mathematical skills are required in several key occupations in both manufacturing and services Engineering skills critical Science, Technology, Engineering and Mathematics disciplines will be highly relevant to our future growth prospects. We are still seeing demand in vacancies underpinned by these disciplines – for example computer analysts and quality control engineers. Having a high stock of STEM graduates is also important from a foreign direct investment perspective – the key future growth opportunities I mentioned previously – pharmaceuticals, medical devices, biotechnology, environmental industries and food all heavily rely on the STEM disciplines. The STEM disciplines are not limited to manufacturing – Services such as Financial and ICT services also require a range of mathematical skills. In recent reports by the EGFSN on the ICT sector and the Medical Devices sector, the availability of engineering skills was highlighted as a critical issue by enterprises.

Arts, Humanities, Business and Social Sciences Underpin sectors such as finance, business, legal, communications, cultural, tourist & education & social services Knowledge of foreign languages & understanding of world cultures can be an asset to any exporting enterprise Understanding of consumer and natural behaviours Hybrid and Blended Skills Linking with the Natural Sciences Entrepreneurship Many enterprises seek employees who have both sector-specific skills and a good understanding of business practices and markets. As a result, the skills of AHSS graduates are highly valued by sectors such as financial services, professional services, communication and distribution services, and also in health, education and social services. Foreign languages can also be an essential asset to any enterprise – particularly exporting enterprises looking to break in to foreign markets. Equally important is understanding world cultures, how business is done in different countries and what is important to customers in those markets. Our indigenous industries primarily export to English speaking markets and we believe a lack of foreign languages and understanding of world cultures may be precluding many enterprises from capitalising on opportunities in foreign-language speaking markets. Industries in the knowledge-based economy, which include computer games and digital media, rely heavily on AHSS content. For example, the creative arts and understanding of natural behaviours are at the heart of developing the content, appearance, story, and realism of the gaming experience. An understanding of customer needs from the gaming experience is also a prerequisite for successful gaming, in addition to effective advertising and marketing that will maximise sales and distribution. Demand is likely to increase for particular combinations of skills, both specialist and generic. Manufacturing firms will need service skills, as they increasingly engage in service-related activities, and service firms will need skills more usually associated with manufacturing, as they adopt manufacturing process concepts (such as lean techniques) to increase their productivity. Individuals who can combine discipline-specific technical knowledge with entrepreneurial skills and an ability to think creatively will be more sought after in the future. As managers and employees of innovative service firms, they will need to be able to communicate knowledgeably with people from other backgrounds, such as scientists, designers and engineers. AHSS have the potential to contribute to the Natural Sciences through a number of ways such as: A better understanding of the socio-economic impact of technological advances; better management techniques; improving training methodologies; better understanding of society and human behaviour and how this will impact the adoption and dissemination of new technologies; commercialisation and international marketing skills; managing and commercialising IPR particularly digital rights management; As technologies proliferate and sectors converge, we have to increasingly think about how various disciplines can complement each other rather than consider them as in competition with each other.

Key areas for discussion Accredited National Graduate Internship Scheme Systematic and coordinated interaction between business and education Need for continuous alignment of education with skills needs Business involvement in development and revision of course curricula Using the Framework to stimulate cross-disciplinary work Stimulate creativity, innovation and entrepreneurship project work problem and inquiry based learning

Key areas for discussion – upskilling/reskilling Timing of course delivery Introduction of modularisation, distance learning and CPD programmes Modules that require specific learning (e.g. software engineers that require entrepreneurial skills) Availability of part-time and evening learning Recognition of Prior Learning