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Producing skills:
challenges and current trends

 InnoOmnia
2011.10.05

Gábor Halász
ELTE University, Budapest
(http://halaszg.ofi.hu)
A new focus on skills
                                           G20
            EU   OECD                ILO
                        World Bank
 Skills
   are today seen
   (together with innovation)     Various
                                  countries

   as the most important
   engine of growth and       CONTEXT
   competitiveness
Four questions to be
asked about skills
 • What skills are needed?
 • How to value the
   demand side?
 • How to produce the skills?
 • How to connect the two worlds?
ENJOY LEARNING!
Thank you for your
    attention!

 And success to
   InnoOmnia!
Intangible capital and
     productivity
„Intangible capital explains about a quarter of
labour-productivity growth in the US and
larger countries of the EU”
   • It explains more than 40% of market value of
     companies (data from more than 600
     companies)
   • Investment in intangible capital is now higher
     than investment in tangible capital in some
     developed countries



                                     Source: The Conference Board
Intangible investment




  Source: The Conference Board
Skills are one of largest
 part of intangible goods

 Skills are the simplest, best, most
direct way to boost productivity…
 skills investment is the quickest way to
maintain productivity…
 skills investment is the only way to
maintain productivity.
 Source: Mark Fisher, chief executive of the Sector Skills Development Agency, 2006
                                                   (Quoted by Ken Mayhew, SKOPE)
Skills strategies in
various countries
• United Kingdom
• Ireland
• New Zealand
• Australia
• Canada
Skills demands (2010-2020)




         Source: New skills for new jobs expert report, 2010
All forms of skills are important
                                High
                       performance
                        workplaces,
                          innovative
                            learning
                      organisations
A balanced view on the supply
     and the demand side
 • The recent EU and OECD skills
   strategies put a particularly strong
   stress on the demand side and the
   micro (workplace) level
   – Skills utilisation is seen as much important as skills
     production
   – Shoft from matching demand towards creating high
     equilibrium
From matching to good
                    equilibrium
                       High demand
                                                             HIGH SKILL
         SKILLS
         SHORTAGE                                            E Q U IL IB R IU M
         IM B A L A N C E
Low                                                                                                   High
supply                                                                                                supply
                                                            SKILLS
          LOW SKILL                                         SURPLUS
          E Q U IL IB R IU                                  IM B A L A N C
          M                                                 E
                     Low demand
                                                                                                                          Source:
                       T a c k lin g t h e L o w S k ills E q u ilib r iu m : A R e v ie w o f Is s u e s a n d S o m e N e w E v id
The trap of the low skills
          equilibrium
„A low skills equilibrium is a situation where
  an economy becomes trapped in a vicious
  circle of low value added, low skills and
  low wages.”

  Source:
  Tackling the Low Skills Equilibrium: A Review of Issues and Som
The high skills
      equilibrium
A dynamic „skills ecosystem” in
 which the producers and the
 users of skills interact so that
  – increasing demand for higher level skills generates
    higher level supply
  – the presence of high level skills generates higher
    demands
Ways to produce skills
                           Learning before adult life


                School based IVET                Dual IVET


                 Learning                          Learning in
                 in school                         workplace
                                                  Company
                  Integrated regional             training centres
                  VET centres                     and leaning
                                                  while working

                           Learning during adult life
PSDC Malaysia
The implications of
growing stress on the
demand side and on
workplace learning
• Innovative workplaces (private and public)
  must be integrated into training centres
• Training centres must be
  open to adults and lifelong learning
Bridges and traffic
between the worlds
of education and work
• National Qualifications Frameworks bringing all
  subsystems of education into a common
  framework
• Work-based elements included into general
  education and general competences developed also
  in work-based learning
• Dynamic, intensive interaction - the pleasure of
  discovering each other

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Producing skills: challenges and current trends

  • 1. Producing skills: challenges and current trends InnoOmnia 2011.10.05 Gábor Halász ELTE University, Budapest (http://halaszg.ofi.hu)
  • 2. A new focus on skills G20 EU OECD ILO World Bank Skills are today seen (together with innovation) Various countries as the most important engine of growth and CONTEXT competitiveness
  • 3. Four questions to be asked about skills • What skills are needed? • How to value the demand side? • How to produce the skills? • How to connect the two worlds?
  • 5. Thank you for your attention! And success to InnoOmnia!
  • 6. Intangible capital and productivity „Intangible capital explains about a quarter of labour-productivity growth in the US and larger countries of the EU” • It explains more than 40% of market value of companies (data from more than 600 companies) • Investment in intangible capital is now higher than investment in tangible capital in some developed countries Source: The Conference Board
  • 7. Intangible investment Source: The Conference Board
  • 8. Skills are one of largest part of intangible goods  Skills are the simplest, best, most direct way to boost productivity…  skills investment is the quickest way to maintain productivity…  skills investment is the only way to maintain productivity. Source: Mark Fisher, chief executive of the Sector Skills Development Agency, 2006 (Quoted by Ken Mayhew, SKOPE)
  • 9. Skills strategies in various countries • United Kingdom • Ireland • New Zealand • Australia • Canada
  • 10. Skills demands (2010-2020) Source: New skills for new jobs expert report, 2010
  • 11. All forms of skills are important High performance workplaces, innovative learning organisations
  • 12. A balanced view on the supply and the demand side • The recent EU and OECD skills strategies put a particularly strong stress on the demand side and the micro (workplace) level – Skills utilisation is seen as much important as skills production – Shoft from matching demand towards creating high equilibrium
  • 13. From matching to good equilibrium High demand HIGH SKILL SKILLS SHORTAGE E Q U IL IB R IU M IM B A L A N C E Low High supply supply SKILLS LOW SKILL SURPLUS E Q U IL IB R IU IM B A L A N C M E Low demand Source: T a c k lin g t h e L o w S k ills E q u ilib r iu m : A R e v ie w o f Is s u e s a n d S o m e N e w E v id
  • 14. The trap of the low skills equilibrium „A low skills equilibrium is a situation where an economy becomes trapped in a vicious circle of low value added, low skills and low wages.” Source: Tackling the Low Skills Equilibrium: A Review of Issues and Som
  • 15. The high skills equilibrium A dynamic „skills ecosystem” in which the producers and the users of skills interact so that – increasing demand for higher level skills generates higher level supply – the presence of high level skills generates higher demands
  • 16. Ways to produce skills Learning before adult life School based IVET Dual IVET Learning Learning in in school workplace Company Integrated regional training centres VET centres and leaning while working Learning during adult life PSDC Malaysia
  • 17. The implications of growing stress on the demand side and on workplace learning • Innovative workplaces (private and public) must be integrated into training centres • Training centres must be open to adults and lifelong learning
  • 18. Bridges and traffic between the worlds of education and work • National Qualifications Frameworks bringing all subsystems of education into a common framework • Work-based elements included into general education and general competences developed also in work-based learning • Dynamic, intensive interaction - the pleasure of discovering each other