OECD Skills Strategy:
Netherlands
21 March 2016, the Hague
Joanne Caddy, Directorate for Education and Skills, OECD
What do we mean by skills?
Technical,
professional,
sector-specific
skills
General
cognitive
skills
Socio-emotional
skills
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Why is a skills strategy important?
Skills are central to boosting labour market participation…
Effect of education and literacy proficiency on labour market participation, PIAAC 2012
Odd ratios showing the effect of education and literacy proficiency on the likelihood of
participating in the labour market among adults not in formal education
Source: OECD. Survey of Adults Skills (PIAAC) (2012), Table A6.5 (L).
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Why is a skills strategy important?
…and skills are central to raising productivity
Labour productivity and the use of reading skills at work
adjusted for literacy and numeracy proficiency
Source: Survey of Adults Skills (PIAAC) (2012), Table A4.4.
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Why is a skills strategy important?
Skills are important for adjusting to the changing skill requirements of jobs
Forecast of job opportunities in The Netherlands
by qualification requirements, 2013 – 2025
Note: CEDEFOP Skills Forecast, 2013-2025.The definitions of skill levels are as follows: low qualification = ISCED 1 and ISCED 2 (less than
upper secondary); medium qualification = ISCED 3 and ISCED 4 (upper secondary or post-secondary non-tertiary); and high qualification
ISCED 5 and ISCED 6 (tertiary).
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Source: CEDEFOP (2015b) “Job opportunities: Skills forecast for 2015”, 2013-2025
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Why is a skills strategy important?
…and for promoting social cohesion In the context of economic and social change
Likelihood of positive social and economic outcomes among highly literate adults
Increased likelihood (odds ratio) of adults scoring at Level 4/5 in literacy reporting high levels of trust and
political efficacy, participating in volunteer activities and good health compared with adults scoring at or
below Level 1 in literacy (adjusted)
International average
3.0
2.6
2.6
Odds ratio
2.5
2.3
2.1
2.0
1.5
1.0
High levels of political
efficacy
Participation in volunteer
activities
High levels of trust
Good to excellent health
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What is the OECD Skills Strategy Framework?
OECD Skills Strategy
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DEVELOPING RELEVANT
SKILLS
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Developing relevant skills
The Netherlands has a highly skilled population, overall…
Mean literacy scores, by educational attainment,
selected countries, 25-34 year olds, PIAAC 2012
Source: OECD calculations based on the Survey of Adult Skills (PIAAC) (2012)
(database)
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Developing relevant skills
…but some groups are not performing as well as others
Differences in literacy proficiency scores, by immigrant and language background
Mean literacy score differences: Native-born and native-language minus foreign-born and foreignlanguage adults
Unadjusted differences are the differences between the two means for each contrast category. Adjusted differences are based on a regression
model and take account of differences associated with all of the following variables: age, gender, education, socio-economic background, and type
of occupation.
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Source: Survey of Adult Skills (PIAAC) (2012).
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Developing relevant skills
Many adults lack the skills needed to adapt to economic change, and they will
be in the workforce for many years to come
Note: low skilled = less than PIAAC level 2
Source: OECD calculations based on the Survey of Adult Skills (PIAAC) (2012) (database)
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ACTIVATING SKILLS SUPPLY
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Activating skills supply
There is room to increase labour utilisation, with workers in the Netherlands
contributing fewer hours of work than counterparts in most other OECD countries…
Annual hours actually worked per worker, 2000-2014
Source: OECD Online Employment Database
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Activating skills supply
…and with a growing rate of long-term unemployment
Long-term unemployment (12 months or more) in selected OECD countries
Percentage of total unemployment
% 80
2014
2009
70
60
50
40
30
20
10
0
Source: OECD calculations based on quarterly national Labour Force Surveys and OECD Short-Term Labour Market Statistics
Database.
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Activating skills supply
Many immigrants are struggling to gain access to the labour market
Gap in employment and participation rates between native and foreign-born, 2014
Percentage-points difference in employment and participation rates of foreign-born minus native-born
percentage points
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Gap in participation rate
Gap in employment rate
10
5
0
-5
-10
-15
-20
Source: OECD.Stat
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PUTTING SKILLS TO
EFFECTIVE USE
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Putting skills to effective use
Firms are not making full use of the skills of their workers, thereby constraining
productivity and growth
Average literacy proficiency vs reading at work
Source: OECD calculations based on the Survey of Adult Skills (PIAAC) (2012) (database).
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Putting skills to effective use
Skills mismatches are holding back productivity and wages
Potential gains from reducing skill mismatch
Note: The figure shows the percentage of workers who are either over- or under- skilled and the simulated gains to allocative efficiency rom
reducing skill mismatch in each country to the best practice level of mismatch. The figures are based on OECD calculations using OECD
Survey of Adult Skills (2012).
Source: M. Adalet McGowan and D. Andrews (2015), "Labour Market Mismatch and Labour Productivity: Evidence from PIAAC Data"
OECD Economics Department Working Paper No. 1209.
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Putting skills to effective use
Linkages between business and higher education could be improved to stimulate
innovation
Firms collaborating on innovation with higher education or
research institutions, by firm size, 2010-12
As a percentage of product and/or process-innovating firms in each size category
Source: OECD Science Technology and Innovation Scoreboard 2015
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TRENDS IMPACTING
SKILLS DEMAND AND
SUPPLY IN THE FUTURE
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Population Aging
Netherlands: Population by age ranges, 1950-2050
(historical and projected)
Source: OECD.Stat (Historical population data and projections (1950-2050) )
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Migration
Increasing immigration across the OECD
Immigrants as a share of national population, 1960-2010
Source: OECD Trends Shaping Education 2016
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Globalisation and technological Change
Online shopping from the comfort of your home
Individuals having ordered goods or services online,
including via handheld devices, 2007 and 2014
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Source: OECD Trends Shaping Education 2016
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Job Polarisation
Changing demand for skills has led to a polarisation in job tasks
Average annual change in total employment in the Netherlands by
occupation categories requiring different tasks, thousand employed persons
Source: OECD Economic Survey of the Netherlands 2016 based on Eurostat (2015), Employment and
unemployment (Labour Force Survey) (database).
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For more information
To discuss OECD’s work with countries on building more effective
skills strategies contact: [email protected]
To learn more about the OECD’s work on skills visit: skills.oecd.org
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