May 2015 Andreas Schleicher Skills Outlook 2015 Youth, Skills and Employability

Young people in OECD countries Many young people struggle in their transition to the labour-market

Youth neither employed nor in education or training (NEET) As a percentage of population, year-olds

Youth who are neither employed nor in education (NEET) As a percentage of population, year-olds

Young workers in routine jobs Share of workers who consider they have little freedom to change the order of their tasks

Youth who are badly prepared Share of individuals with low numeracy skills

7 Share of young NEET by parents’ place of birth

8 What can we do to strengthen young people’s skills and employability? Make a better use of young people’s skills at work Integrate youth into the labour market Improve young people education and skills Build a comprehensive approach

Skills Scoreboard: strengths and weaknesses Make a better use of young people’s skills at work Integrate youth into the labour market Improve young people education and skills Make a better use of young people’s skills at work Integrate youth into the labour market Improve young people education and skills Make a better use of young people’s skills at work Integrate youth into the labour market Improve young people education and skills France Ireland Italy Spain Denmark Korea Norway Poland Austria Check Rep. Slovak Rep. Sweden UK, US Australia Belgium Canada Estonia Finland Germany Japan Netherlands Improve young people education and skills Make a better use of young people’s skills at work Integrate youth into the labour market

Preparing youths Ensure that all youths leave school with relevant skills

11 Gap in literacy and problem-solving skills between young NEETs and employed youth

12 NEET rate by level of literacy skills

New graduates (<2-years) with low numeracy skills (<226 points)

Youth who lack basic ICT skills

15 Self-reported ICT skills deficiency As a percentage of working youth aged 16-29, 2012

Students and their experience with the labour market

17 Share of upper secondary graduates who are NEET by programme orientation

18 Gap in numeracy skills between post-secondary VET students and students in academic programmes who have spent the same number of years in education

Students in upper secondary vocational education who are participating in work-based learning

Participation in work-based learning of students in post- secondary VET and academic programmes Students in vocational programmes Students in academic programmes

Transitions from upper secondary vocational education to higher education Share of upper-secondary VET graduates enrolled in post-secondary education programmes

22 Share of workers in routine jobs by level of numeracy skills

Skills Scoreboard: Is the development of skills inclusive? Inequity Equity Low performance at school Strong link between social background and student performance Strong influence of migration background

Ensure that all young people leave school with relevant skills Take a holistic approach to skills Provide multiple pathways within the education system. Give disengaged youth a second chance to reintegrate into the education system Develop work-based learning programmes across different types of education, including universities Design high quality vocational education and training programmes that develop cognitive and social and emotional skills, and labour market experience Base career guidance services on relevant assessment of the market returns of various career paths Engage employers and other stakeholders in the education system at all levels.

Reengage youths Identify and help NEETs to reengage

Youth who risk of falling under the radar NEET who are not looking for a job Youth who are NEET and not looking for a job (inactive) or looking for a job (unemployed), 2013

Skills scoreboard: How close are NEETs to the labour market? Close Far High share of inactive NEETs Share of NEETs with poor skills Share of NEETs without baseline qualifications Share of long-term unemployed NEETs

28 Identify and help the NEETs to re-engage Develop a system of mutual obligations between youth and institutions Encourage employment through efficient job- search assistance and training, monitoring and financial incentives Target places in training programmes and job subsidies to youth with low skills and those who face specific barriers in the labour market.

Reengaging youths Remove institutional barriers to youth employment

It’s not just skills: some NEETs have good education and cognitive skills Cognitive skills of youth neither in employment nor in education or training

31 Remove institutional barriers to youth employment Design skills-friendly tax policies to foster employment of low-skilled youth Continue to lower the gap in employment protection legislation between temporary and permanent contracts Encourage end-of-study internships within a framework that combines flexibility and obligations to firms.

Using skills Make better use of young workers skills

33 Use of skills by upper secondary vocational students who are combining study and work in and outside of apprenticeships

Young workers on temporary contracts As a share of total employment in each age group, 2013

35 Use of skills at work, by type of employment contract

Skills Scoreboard: do workplaces promote skills? To a large extent To a small extent Task discretion Learning by doing Use of problem-solving skills at work Use of co-operation skills at work

37 Some drivers of low literacy skills The probability increases The probability decreases

38 Skills mismatch, by type of mismatch and age group Total Mismatch

39 Skills mismatch by type of mismatch and age group

40 Wages and mismatch, by type of mismatch and age group As a percentage change in wages due to mismatch, 2012

41 Share of individuals interested in entrepreneurship, European countries

42 Making a better use of young workers’ skills Remove barriers to geographical mobility to allow for local matching of jobs and skills Develop (inter)national qualification frameworks and formal recognition of skills acquired through non- formal and informal learning Promote more effective work organisation and human resource management strategies Remove barriers to entrepreneurship Invest in tools for assessing and anticipating skills needs.

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