Innovation in Continuing Training – the Irish Strategy John McGrath Research Manager FAS – Irish Training and Employment Authority

Structure of Presentation The Institutions in the Labour Market The Irish Education System Identification of Skill Needs VET Qualifications Framework The National Human Resource Strategy Conclusions: Strengths and weaknesses Key challenges

Irish Education System Overview Post-Graduate - 13,600 awards Higher Cert (2 yrs) and Ordinary Degree (3 yrs) – 16,000 awards Honours Bachelor Degree (3-4 yrs) - 25,500 awards Further Education & Training (1-4 yrs) (VECs; FÁS; Teagsc; BIM; etc.) - 22,900 awards Leaving Certificate (2-3 years)- 54,000 awards Junior Certificate (3 years) - 57,400 awards Second Level Further Ed. and Training Higher Education Third Level

Key education facts Second level almost all academic About 82% complete the Leaving Certificate Apprenticeship only covers 26 trades About 45% have only junior certificate Many students take post leaving courses

Institutions in the labour market (4 Key players) Expert Group on Future Skills Needs Forfas FAS – Skills and Labour Market Research Unit Economic and Social Research Institute

Expert Group on Future Skill Needs Established in 1997 To advise Government on skill shortages Reports to both Ministers of Enterprise Trade and Employment; and Education and Science Tri-partite structure, employers, unions, Government Administration Services provided by Forfas In 2001 established its own in-house research resource This is Skills and Labour Market Research Unit

Forfas: the National Policy and Advisory Board for Enterprise, Trade, Science, Technology and Innovation. Responsible for the development of economic policy Co-ordinating the work of the development agencies (IDA Ireland; Enterprise Ireland)

FÁS – the Employment and Training Authority Manages the Public Employment Services Apprenticeship system Skills Training Foundation-level training Provides non-commercial community- based training for LTU’s Provides services for industry training Advises on labour market policies Conducts research

Training and Employment Resources 20 Training Centres 62 Employment Services Offices External Contracted Training Services 2,300 Staff 81 Workshops supported jointly with Communities and Departments of Education & Science and Justice, Equality & Law Reform Call Centre

The Skills and Labour Market Research Unit (SMLRU) In 2001 Expert Group created its own in-house research team (SLMRU) Set-up and maintain the National Skills Database Conduct skill studies of economic sectors Produce annual reports on skills supply and demand Identify imbalances in the labour market Conduct studies of economic sectors Produce ad-hoc analysis for Government departments and Development Agencies

National Skills Database Electronic storehouse All nationally produced data Skills supply and demand Structure of employment Immigration data All vacancies (public and private sources) Education enrolment, graduation Job-seeker activity

Occupation Numbers Employed % Fem ale Part- time % >55 % Non- Nation al Growth rate Work permit s Work visas DF V Repla cemen t rate Shortage indicator Comm ent Chemists2,00038%2%12%4%11%13 1 3%Skill shortageF Biological scientists3,50042%5%6%0%10%41 5 3%Skill shortageF Civil/mining engineers8,9009%1%7% 1096 (32) 6 3%Skill shortageS,C,F Mechanical engineers3,6006%1%9%5%7%7 3 3%No shortage Software engineers8,60017%2%1%16%8%70213 (61) 7 3%Skill shortageS,C,F Chemical engineers1,6009%0%3%5%18%2 3 3%Skill shortageS,C,F Quality control engineers2,30026%9% 5%-6%4 11 3%No shortage Medical practitioners11,80036%7%13%23%12%26047 (15) 2 3%Skill shortageS,C,F Pharmacists2,50050%10%15%9%3%273%No shortage Veterinarians1,80019%2%30%2%3%2 No shortage All occupations1,865,30042%17%12%6%3%3,5521,454 Demand and shortage indicators: sample

SLMRU research output to date Sectoral Studies Logistics industry (2002) Construction professionals (2003) Digital content study (2005) Paper, printing and packaging (2005) Basic Metals, Metal Fabricating and Transport and Equipment Engineering Sub-sectors (work in progress) Quality of Management Skills in the Construction Industry (work in progress) Construction (2003) Financial services (2003) Healthcare (2005) Financial services (2005)

Use of SLMRU research Education provision  New degree in logistics (Limerick IT)  Third school of architecture (Limerick University)  Financial advisors courses (FAS) Immigration policy  Skills for inclusion in Visa/Authorisation scheme  Skills for inclusion on new green-card/work permit schemes Career guidance  Information on employment trends Location decisions for Multi-Nationals

Key Features of Skills Needs Identification Model in Ireland  Integrates the demand-side and supply  of the labour market  Involves both employers and unions  Social partners decide work programme  Has on-line access to all relevant and up- date data  Annual review of recommendations  Recommendations must be implemented

Economic and Social Research Institute Major Private Research Institute in Ireland Has developed macro-economic model of Irish economy (Hermes) Produces regular commentaries on Irish economy Has major influence with Irish policy makers Provides sector output forecasts for the SLMRU

Institutional framework

The National Qualifications Framework

Key Features of NQF Single integrated system Designed to facilitate Life-Long Learning Through systems-wide recognition of qualifications Recognition of prior learning Promoting horizontal and vertical progression routes Through a system of add-on qualifications (minor awards and special awards)

Importance of Skills in Overall Enterprise Context Source: Enterprise Strategy Group World-class Skills, Education & Training

In general, Enterprise expresses satisfaction with the skills within the workforce, however, skill shortages exist in a number of sectors. High percentage of labour force with third level qualifications but also high level with lower secondary or below. There is poor participation in lifelong learning. There are poor levels of adult reading literacy although reading literacy amongst school children is good. Immigration has assisted in filling skills gaps, but also created fresh challenges for education and training providers. Ireland’s skills performance to date

Profile of labour force in 2020 based on no additional interventions

The answer is NO! Ireland will still lag comparator countries in terms of percentage of the labour force with lower secondary education or below Supply will not meet demand for skills in There will be shortages at third and fourth level and an oversupply of lower level skills From an economic and societal perspective it is not desirable to have such a large cohort at or below lower secondary level Skills have the potential to shape the economy of the future and contribute to productivity and innovation Will skills profile based on no additional interventions be good enough?

The Expert Group proposes a vision of Ireland in 2020, possessing a well-educated and highly skilled population which contributes to a competitive, innovation-driven, knowledge-based, participative and inclusive economy. Specifically, the Expert Group proposes that, by 2020  48% of the labour force should have qualifications at NFQ Levels 6 to 10;  45% should have qualifications at levels 4 & 5;  the remaining 7% will have qualifications at levels 1 to 3 by 2020; and  within this objective, Ireland should aim to build capability at fourth level and double its PhD output (Level 10) by Vision

Increasing emphasis on Generic Skills Basic or fundamental skills such as literacy, using numbers, using technology; People-related skills such as communication, interpersonal, team working, customer-service skills; and Conceptual skills such as collecting and organising information, problem-solving, planning and organising, learning-to-learn skills, innovation and creativity, systems thinking Changing Skills

Within Occupations There is likely to be demand for an: Increasing Breadth of Knowledge Increased Share of Knowledge Work / Reduced Share of Routine Work Rising Qualification and Technical Skill Requirements Importance of Continuing Learning Significance of Regulation Skills for Dealing with Others Management Level Skills Sales and Marketing Skills Language Skills R&D Enterprise Skills Changing Skills

1.45m From the current labour force of 2m 650,000 New flow of young people from the education system 300,000 Increased participation & Migration 2.4m Labour force Labour force in 2020 will be made up of : Labour force + +

Within the current workforce, an additional 500,000 people need to be upskilled through either education or training Upskilling the workforce

Within the formal education system: The retention rate to Leaving Certificate should reach 90% by 2020 (current rate 82%) In 2020, 94% of the population aged should have a second level qualification (current rate 86%) The progression rate from second to third level should increase to 72% by 2020 (current rate 55%) Formal Education

Immigrants need to be integrated into the education and training system at all levels English language supports need to be put in place The recognition of international qualifications is key to maximising the contribution of immigrant labour Migrant Skills

Education and training up to level 5 should be funded by Government for those currently without qualifications at this level. Education and training from level 6-10 should be funded in a tripartite arrangement between employers, employees and Government. New models required to incentivise employers and employees to engage in training and education. Endeavour to move to a system that is more enterprise and employee led, away from a provider driven model. Guiding Principles

Increase evaluation of education and training initiatives. Increase awareness of value of education and training. Increase emphasis on careers guidance and disseminating labour market information. Increase emphasis on course accreditation and recognition of prior learning. Co-ordinated approach to implementation is of paramount importance. Guiding Principles

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