EUROPEAN COMMISSION Employment, Social Affairs and Equal Opportunities DG Employment, Lisbon Strategy, International Affairs CONCEPT PAPER Spanish Presidency Conference 'New Skills for New Jobs for a more competitive Europe' Barcelona, 8-9 April 2010 Skills anticipation and upgrading, and a better matching of skills and jobs are key to the success of the EU2020 strategy to "help us come out stronger from the crisis and turn the EU into a smart, sustainable and inclusive economy delivering high levels of employment, productivity and social cohesion". 'New Skills for New Jobs' are therefore essential, not only for inclusive growth but also for the EU's ambition to develop an economy based on knowledge and innovation, and to promote a more resource efficient, greener and more competitive economy. Objectives of the conference The overall objective of the conference is to discuss concrete ways to advance a comprehensive skills and jobs agenda (as proposed with the 'New Skills for New Jobs' initiative) in the framework of the EU 2020 Strategy, focusing both on skills upgrading in line with future skills needs, and better matching of skills and jobs. 'Concrete', because there seems to be agreement in general on the challenges that the EU is facing, and the important role a suitably skilled workforce and well-functioning labour markets play in addressing them. How to make this a reality is a less obvious endeavour which is why the focus should be on concrete tools and instruments and their implementation. 'Comprehensive' should be understood in two ways: First, the interaction of different policy areas, mainly employment and education and training policy, and second, the interaction of different policy levels (EU and Member States, regional and local, as well as international) and stakeholders, mainly the social partners and companies. The opening session and Session 1 will set the tone by spelling out what the challenges are, taking into account the crisis as well as the underlying drivers for our economies and societies. 1 Session 2 will explore approaches and examples that can deliver a comprehensive and concrete skills and jobs agenda, including from the international level, higher education and the private sector. Session 3 will seek to develop ways forward at both the EU and Member State level to deliver a skills and jobs agenda, as well as how in the future the two levels can be linked even more strongly. The final panel discussion brings together the current and future EU Presidencies, Members of the European Parliament, the social partners and the Commission to discuss how best 'New Skills for New Jobs' can contribute to the EU 2020 Strategy. Session 1 – An open discussion on the skills and jobs of the future According to Cedefop's latest forecast on skills demand and supply, the economic crisis has had a dramatic impact on the European labour market. Employment growth is likely to recover only gradually over the next decade. There will however still be a significant number of job openings, be it through new jobs, or those, the large majority, that will have to be filled because people retire of change jobs. In total there may be as many as 80 million job openings overall up to 2020. The precise volume and nature of the jobs of the future - and of the skills they will require – will depend on long-term structural factors such as technological change, globalisation or demographic trends but also on the extent and pace of the recovery from the current economic downturn. None of these challenges can be seen solely from an EU-level perspective: the strong global interdependence of our societies and economies is particularly obvious in the quest for talent; the focus of the G20 meeting in late April on 'global training strategies' is therefore most appropriate. On the supply side, while further progress is needed, we expect a clear continuous trend towards skills upgrading in the next decade. Especially women will be more highly-qualified than ever before, increasingly better than men. Several key questions arise from this scenario: 1. Can we already identify some of the long-term effects of the crisis on jobs and skills – and how these may affect economic restructuring? What skills will tomorrow's jobs require, and are we on the right track for our future workforce to acquire them? 2. What will it mean for our societies and economies that women are increasingly wellqualified? 3. How will ageing impact both demand and supply for skills, i.e. which and how many 'white jobs' will be created, who will fill these and all other available jobs and what will be their skills profiles? 4. In addition to the 'white jobs', where do we expect the main sources of job creation in Europe to be (services to business, 'green jobs')? How can we foster the creation of high-quality, high-skilled jobs to meet our citizens' aspirations and make the most of their potential? 5. In terms of skills, what is Europe good at, and where will it stand in the global quest for talent? Where should our priorities for lifelong learning policies lie? How can Europe be sufficiently attractive to retain and attract talent? 2 Session 2 – New Skills for New Jobs: finding what works Skills make a difference, but to act on this is sometimes not immediately obvious to every individual, employer or employee, or public authority or the social partners. The right incentives are therefore needed to help people of all ages to see skills development as a valuable, and rewarding, part of life and to enable them to develop their skills and their careers in accordance with labour market needs. At the same time it is important to support employers to maximize the skills of their employees so that they can sustain and grow their business, and create jobs. Developing meaningful partnerships at international, European, national, regional and local levels will help us work towards fulfilling our vision and drive forward real, positive and sustained change in Europe's skills performance. The following questions can steer the debate: 1. What incentives for individuals and employers to invest in and better use skills, and how and through whom to make them available? 2. With the right incentives many individual stakeholders understand the importance of and are mobilising efforts to up-skill and better match skills and jobs. However what is clear is that in isolation they can achieve very little impact. What steps are in place to ensure joined-up working for maximum outcomes and impact for all? 3. What are the best means/tools to help companies engage with education and training providers? What is the role of intermediaries in this process? And what support can be provided to employers to enable their employees to best use their skills? 4. What are the lessons learnt from these examples of good practice and how will these examples and methods adapt to the fast changing environments? 5. What is the scope of the transferability of these examples between different levels of governance? Session 3 – EU and national policy initiatives in response to future challenges EU Member States have taken and are taking action in the fields of skills anticipation, upgrading and matching as has been made evident on a number of occasions, not least in the EMCO contribution to the conference. Many Member States have skills anticipation systems, be it on a general level, or focusing on specific economic sectors. Often this is linked to a growing awareness to more strongly align education and training systems with actual labour market needs. At the same time given our challenges, and the consequences of the economic crisis, more needs to be done to both create and fulfil the ambition of a smart, sustainable and inclusive economy delivering high levels of employment, productivity and social cohesion. Therefore there is still potential to do more and to do better for a comprehensive and concrete skills and jobs agenda. 1. How can the EU further support Member States and regions to implement the NSNJ agenda? 2. Which additional steps are necessary at EU level to better anticipate and match skills and jobs? 3 3. How can current EU-level and national anticipation efforts be combined, and what should they focus on (short-, medium-, long-term perspective)? What role can the sectoral level play in this? Can national and EU systems interact more strongly to provide an EU-wide overview on skills shortages/surpluses? 4. How can the EU support stakeholders in the development of a common skills language through ESCO (and the EU vacancy monitor)? 5. How can Member States further advance the responsiveness of education and training systems to labour market needs, and how can the EU help in this? Final panel discussion: New Skills for New Jobs in the EU 2020 strategy On 3 March the Commission has presented its proposals for the Europe 2020 Strategy to overcome the crisis and prepare the EU for the next decade. The strategy identifies three key areas for action at EU and national level: smart growth (fostering knowledge, innovation, education and digital society), sustainable growth (making our production more resource efficient while boosting our competitiveness) and inclusive growth (raising participation in the labour market, the acquisition of skills and the fight against poverty). Success in these areas requires ownership at the top political level and mobilisation of all actors across Europe. It also requires dialogue with our global partners. Skills are an integral part of a smarter, more sustainable and inclusive Europe. Better skilled people are more likely to be employable, contribute to innovation and creative solutions to our key challenges and increasing the employment rate helps to reduce poverty A smarter EUROPE 2020 will entail promoting knowledge partnerships and strengthening the links between education, business research and innovation, as part of the "Innovation Union"; by exploring ways of promoting entrepreneurship through mobility programmes for young professionals and promoting recognition of non-formal and informal learning as part of the "youth on the move" initiative; and up-skilling to ensure citizens have the right mix of skills to meet the needs of a digital society forms part of the "Digital Agenda for Europe". A more sustainable EUROPE 2020 can only become a reality if companies adjust their production processes and products to the low-carbon economy. To do so companies, in particular SMEs will need support. Equally essential is more entrepreneurship, and the restructuring of sectors towards future orientated activities including through redeployment of skills to emerging high growth sectors and markets as part of the "resource efficient Europe" and "industrial policy for the globalisation era" initiatives. A more inclusive EUROPE 2020 will mean investing in skills and helping people to manage change in order to build a cohesive society. This will be done through giving a strong impetus to the strategic framework for cooperation in education and training involving all stakeholders, implementing lifelong learning principles including flexible learning pathways and reinforcing the attractiveness of vocational education and training; ensuring that competences required to engage in further learning and the labour market are acquired and recognised and developing partnerships between the worlds of education/training and work and social partners as part of "an agenda for new skills a jobs". Designing and implementing programmes to promote social innovation for the most vulnerable by providing education/training and employment opportunities for deprived communities will also contribute to an inclusive Europe as part of the "European platform against poverty" initiative. 4 Putting skills at the heart of recovery and growth strategies has also been endorsed at international level at the leaders' statement of the G20 Pittsburgh summit in 2009. Its charter for sustainable economic activity commits to putting quality jobs at the heart of recovery with a focus, in part, on skills development and inclusive labour markets. It is therefore essential to study the effects of globalisation on skills demand and measures taken by global partners to ensure lessons learnt are shared. Questions: 1. How can all stakeholders unite within the EUROPE 2020 strategy to deliver on the challenges for skills and jobs? 2. Policy dialogue and exchange of experiences with our global partners in the framework of the G20 will also help meet these challenges. How can NSNJ provide a useful contribution to the efforts of international partners to develop a global training strategy? 5
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