Erasing the “bright red dividing line” between education and work

by Marilyn Achiron
Editor, Directorate for Education

Central to the OECD Skills Strategy, which was released last week, is the idea that developing people’s skills and ensuring that those skills are used effectively on the job is everybody’s business—governments, employers, employees, trade unions and students. So who better to discuss the business of skills development than a business leader? Phil O’Reilly, Chief Executive of Business NZ, New Zealand’s largest business advocacy group, was in Paris this week to attend the OECD Forum. Calling the Strategy “an immaculate document” that “points out the complexity of what we’re dealing with”, O’Reilly makes a strong case for the importance of developing “soft” skills in today’s global labour market. “We all obsess about mathematics and science skills,” he says, “but cultural skills do matter.”

What do today’s employers look for in prospective employees? According to O’Reilly, businesses want good citizens working for them. “People who can read and add and think critically—and who can also act accordingly, like by voting; or getting up to give a seat to an older woman: that shows courtesy and the ability to think of others. Even showing up at a demonstration: that shows passion.”

These “soft” skills, defined as emotional intelligence, the ability to work in a team, and to communicate effectively, are largely taught by parents and by communities. While O’Reilly calls “hard” skills—literacy, numeracy, skills in using information and communication technologies, and what are called STEM skills (those in science, technology, engineering and mathematics)—the “ticket to ride” for today’s employees, “those skills will only be considered as good as the ability of someone to use them effectively in a particular place at a particular time,” he says. “Employees with both hard and soft skills are highly valued.”

For many people right now—young people just starting out in the labour market, or older workers who, for one reason or another, have not participated in the workforce for a while—just getting that first—or new—job is a struggle. O’Reilly suggests that these transitions can be eased dramatically if employers, governments and education systems work together to “break down the bright red dividing line between compulsory education and work.“ That can be accomplished, he says, by creating “pathways” between the two worlds, in the form of internships and apprenticeships. “We need to get students and employers to rub up against each other intellectually,” he says. “We need to narrow the gap between the end of compulsory education and the next experience”, whether that is work or continuing education or training, “because skills will deteriorate if we don’t.”

Information is crucial. The idea is not to tell students what to do, but to “give them and their parents information about what they need to do to get to where they want to be,” whether that is becoming an architect or a plumber. “We need to make sure students have enough information so that they can make an informed choice.”

In short, he says, “policy makers and businesses need to be talking about skills needs so that employers and workers are at the centre of the system, rather than being victims of the system.”

Links: 

OECD Skills Strategy

Visit our interactive portal on skills: http://skills.oecd.org

OECD Forum 2012

More blogs on skills:
Taking stock of education and skills: the youth perspective
Skills revolution will come from the grassroots
“I’ve been driven by goals”
Better skills and better policies lead to better lives for women
Discussing education and skills with the 2012 OECD Global Youth Competition winners
Business in-a-box: a global skills solution
Everybody into the talent pool
It all starts with building the right skills
What should students learn in the 21st century?

Photo credit: Office corridor /Shutterstock

Everybody into the talent pool

by Marilyn Achiron 
Editor, Directorate for Education

The OECD has just formulated a Skills Strategy to help countries make the most of their peoples’ talents.

How does one even begin to consider an issue as complex as skills? We found that visualising the supply of skills as a talent pool helps. The idea is to create a larger and larger pool of people who have fully developed their skills, encourage those people to supply their skills to the labour market, and then ensure that those skills are used effectively on the job. This new animated video will show you what we mean. 

Links:
To download the report:  Better Skills, Better Jobs, Better Lives: The OECD Skills Strategy   – and much find out more about skills and skills policies around the world – visit our interactive skills web portal: http://skills.oecd.org

Follow the launch of the Skills Strategy and join the debates on @OECD_Edu  #OECDSkills

It all starts with building the right skills

by Andreas Schleicher
Deputy Director for Education and Special Advisor on Education Policy to the OECD's Secretary General

Skills transform lives and drive economies. Without the right skills, people are kept on the margins of society, technological progress does not translate into economic growth, and countries can’t compete in today’s economies. But the toxic co-existence of unemployed graduates and employers who say that they cannot find the people with the skills they need, shows that skills don't automatically translate into better economic and social outcomes. The OECD has put together a strategy that helps countries transform skills into better jobs and better lives.

It all starts with building the right skills. Anticipating the evolution of the demand for labour is the essential starting point. We then need to improve the quality of learning outcomes, by putting a premium on skills-oriented learning throughout life instead of qualifications-focused education upfront. That’s about fostering relevant learning. Skills development is far more effective if the world of learning and the world of work are linked. Compared to purely government-designed curricula taught exclusively in schools, learning in the workplace allows young people to develop “hard” skills on modern equipment, and “soft” skills, such as teamwork, communication and negotiation, through real-world experience. Hands-on workplace training can also help to motivate disengaged youth to stay in or re-engage with education and smooth the transition to work. Data from our new Adult Skills Survey (PIAAC) provide powerful evidence of that. While you learn when you are in education between the ages of 16 and 25, the learning curve is even steeper if you combine education with work.

All of this is everybody’s business; and we need to deal with the tough question of who should pay for what, when and how, particularly for learning beyond school. Social partners can help in developing curricula that include broader, transferable skills and ensuring that good-quality training is available to all. Employers can do a lot more to create a climate that supports learning, and invest in it. Some individuals can shoulder more of the financial burden. And governments can do a lot to design rigorous standards, provide financial incentives and create a safety net so that all people have access to high quality learning.

But even the best skills simply evaporate if they aren’t maintained and upgraded to meet the changing needs of societies. There are people who are highly skilled who have decided not to work. Why? They may be too busy caring for children or elderly parents; they may have health problems; or they may have calculated that it just doesn’t pay to work. The answer is that we need to make better use of our talent pool.

Equally important, we need to ensure that skills are used effectively at work. OECD data show the link between how skills are used on the job and people’s earnings prospects and productivity. If you have great skills and have a demanding job, you’re fine, and your earnings continue to increase. If you don't yet have the skills but your job is demanding, you’ll see progress too. But if your employer does not use your skills, the earnings over your lifetime tend to deteriorate.

So what can we do about this? Quality career guidance is essential. People who have the latest labour-market information can help steer individuals to the education or training that would best prepare them for their prospective careers. Helping young people to gain a foothold in the labour market is fundamental too. Vocational training is a very effective way to achieve this. Coherent and easy-to-understand qualifications help employers identify potential employees who are suitable for the jobs they offer. And reducing the costs of moving within a country can help employees to find the jobs that match their skills and help employers to find the skills that match their jobs.

There may be young people just starting out who are well educated but have trouble finding jobs that put their education and training to good use. What most people don’t realise is that we can shape the demand for skills. Often we think that the demand for skills is as it is, and we just need to educate people to meet existing demand. That is a big mistake. There is much that governments and employers can to do promote knowledge-intensive industries and jobs that require high-skilled workers. Adding these kinds of high value-added jobs to a labour market helps to get more people working—and for better pay.

Last but not least, education that fosters entrepreneurship can help create jobs. Indeed, education is where entrepreneurship is often born.

In short, we’re all in this together – and there’s a lot more that we all can do to develop the right skills and turn them into better jobs and better lives.

Links:
To download the report:  Better Skills, Better Jobs, Better Lives: The OECD Skills Strategy   – and much find out more about skills and skills policies around the world – visit our interactive skills web portal: http://skills.oecd.org

Follow the launch of the Skills Strategy and join the debates on @OECD_Edu and @SchleicherEdu #OECDSkills