Economist Debate – 30 October 2013 Is the younger generation properly skilled to meet tomorrow’s challenges? Steve Bainbridge Cedefop

Economist Debate – 30 October 2013 Every generation despairs of the one that follows

Economist Debate – 30 October 2013 And we all worry about the younger generation

Economist Debate – 30 October 2013 Reasons for concern? Young people – usually defined as those between 15 and 24 years old - need to cope with the pace of technological and organisational change, globalisation, demographic shifts, environmental pressures and changing regulations. If that is not enough, young people currently face an unwelcoming labour market following the worse economic recession since the Second World War.

Economist Debate – 30 October 2013 A more demanding labour market Jobs at all levels will have less routine. The term ‘elementary jobs’ is increasingly misleading. There is no direct link between the skill level of a job and how much of it is routine. It is likely that we will have aeroplanes without pilots before cars without drivers. Jobs at all levels will increasingly be more complex, requiring people to think, communicate, organise and decide.

Economist Debate – 30 October 2013 Different figures – different stories Youth unemployment rate – the number of unemployed young people as a proportion of young people actually in or looking for a job. Youth unemployment ratio – the number of unemployed young people as a proportion of all young people, including those in full-time education or school- based training.

Economist Debate – 30 October 2013 Youth (15 to 24 year olds) unemployment rate and unemployment ratio Source: Eurostat (2013) * August 2013 Youth unemployment rate (August 2013) Youth unemployment ratio (Q2 2013) European Union (28)23.3% 9.7% France 25.5%8.6% Spain56.%20.8% Greece 65.1%16.8% Germany 7.7%3.9% UK21.1%11.8%

Economist Debate – 30 October 2013 Young people acquiring skills 5.5 million young people aged unemployed in the EU – equivalent to Athens 27 million young people aged in the EU in education and training – more than twice the population of Greece + +

Economist Debate – 30 October 2013 A better qualified workforce: rising educational attainment EU

Economist Debate – 30 October 2013 Skill mismatch? What’s the difference between a joist and a girder?

Economist Debate – 30 October 2013 Skill mismatch: What’s the difference between a joist and a girder? Joist wrote Ulysses…and Girder wrote Faust

Economist Debate – 30 October 2013 What’s the difference between a joist and a girder?

Economist Debate – 30 October 2013 A shortage of applicants with the right skills

Economist Debate – 30 October 2013 Who’s to blame? According to the Manpower survey, only 42% of employers agree that graduates are adequately prepared. 70% of employers blame the education and training system for the shortfall of skilled workers. Is this the case, Professor ? (I don’t think so)

Economist Debate – 30 October 2013 A skill shortage or other things? In the 2010 Eurobarometer survey 25% of employers acknowledged that they were unable to offer a competitive starting salary. In developing countries the 2009 Business Environment and Enterprise Performance survey revealed that only 9% of employers in Eastern Europe and Central Asia consider an inadequately skilled workforce as the most serious obstacle to their business operations.

Economist Debate – 30 October 2013 A skill shortage or other things? According to the Manpower survey only 13% of employers widen their recruitment searches. Only 7% of employers are willing to redefine their job requirements when facing recruitment difficulties. Employers also complain about the lack of experience of young applicants. But most education systems struggle to find work- placements for students.

Economist Debate – 30 October 2013 Over-qualification Weak employment demand is increasing competition for jobs, and people are accepting jobs for which they are overqualified.

Economist Debate – 30 October 2013 Over-qualification Over-qualification tends to persist. Over-qualified workers are more likely to have lower job satisfaction and poorer future job prospects. Over-qualification especially affects women, migrants and, of course, the young.

Economist Debate – 30 October 2013 Do we know what the right skills are? The younger generation is doing all it can to prepare itself for tomorrow’s challenges. About 40% of young people currently leave education with a university degree or equivalent. Young people are told that they need the ‘right’ skills. But the labour market is not and never has been static. The ‘right’ skills change over time and in different places.

Economist Debate – 30 October 2013 People People are the most important element of competitive advantage. People innovate, not machines. People make or destroy an organisations’ reputation. People look after existing customers and find new ones.

Economist Debate – 30 October 2013 Young people, the most talented workforce in our history, need a chance 9 GCSEs 4 A levels 1 degree No job.

Economist Debate – 30 October 2013 Are the younger generation properly skilled for the challenges of tomorrow? YES Thank you