EUROPEAN SEMESTER THEMATIC FICHE SKILLS FOR THE LABOUR MARKET Improving skills is one of the main ways to increase labour productivity in Europe. Skills are critical for competitiveness and employability, as structural changes such as globalisation and technological progress call for ever-higher skills for secure, quality jobs. The Annual Growth Survey 20151 stresses the need for a skilled work force in growing sectors such as the digital economy, green sectors and health. It particularly emphasises vocational training, dual education systems, lifelong learning, and regional and sectorial skills needs. 1. Assessment of the main challenges in the Member States 1.1. Basic, transversal and specialist skills Basic skills In a large number of EU countries there is still a very high proportion of 15-year-olds who are "low achievers" in basic skills.2 Only four Member States have reached the benchmark of having fewer than 15% low achievers in mathematics (see Figure 1) — although results in reading and science literacy are slightly better (see Tables 1 and 3 in the Annex). 1 http://ec.europa.eu/europe2020/pdf/2015/ags2015_en.pdf. 2 Low achievers are defined as those who scored below proficiency level 2 in one of the PISA test fields (reading, mathematics or science respectively). For more details on how these levels are defined, see http://www.oecd.org/pisa/test/. Thematic fiches are supporting background documents prepared by the services of the Commission in the context of the European Semester of economic policy coordination. They do not necessarily represent the official position of the Institution. Figure 1: Mean score and shares of low- and top-achievers in mathematics, 2012 Score Mean score % low achievers (rhs) % top performers (rhs) % 45 520 40 35 500 30 25 480 20 460 15 10 440 5 420 0 Data source: OECD (PISA). Under the open method of coordination in the field of Education and Training (‘ET 2020’), Member States agreed on a benchmark where the share of low-achieving 15-year-olds in reading, mathematics and science should be less than 15% by 2020. The results from the OECD's programme for international student assessment (PISA) reveal that still more than one fifth (22.1%) of the tested 15-year-olds have severe problems in solving relatively simple mathematical tasks related to their everyday life (see tables 1 to 4 in the Annex). The share of low-achieving boys in reading is twice that of girls (23.7% to 12.0%). It needs to be pointed out, however, that PIAAC data show that the gender difference in reading disappears among young adults (16 to 24-year-olds). The performance of BG, RO and CY — with more than 40% of 15-year-old low achievers in maths — is particularly low; however, the first two have been improving. Only NL, EE, PL and FI already meet the EU benchmark3. Broadly speaking, Member States with a greater number of low achievers also tend to have fewer "top-performer" pupils (those at level 5 or above in PISA maths tests); suggesting that the issue is weaknesses in the performance of education and training systems, rather than a choice to privilege excellence over equity. Socio-economic background remains one of the main determinants of skills acquisition in schools. Though some progress has been made since 2003, the difference in skill levels between those with the lowest and those with the highest socio-economic status remains very high, and persistently so across Member States (see Figure 2 below and Table 4 in the Annex). 3 This benchmark, based on the PISA-test of 15-year-old pupils, aims at reducing below 15 % by 2020 the share of pupils failing to reach basic levels of performance (2 out of 5). 2 Figure 2: Impact of socio-economic background on performance in mathematics, 2012 Source: OECD (PISA). The failure of European education and training systems to impart the most basic skills to 20% of pupils creates a serious employability problem.4 This highlights not only the size of the challenge to improve the performance of education and training but also the huge potential gains in terms of increased growth and employment if this proportion were reduced. Regarding the adult population (above age 15), in the 17 EU Member States participating in the Programme for the International Assessment of Adult Competencies (PIAAC), 43% of the population showed medium or high levels of literacy skills (levels 3 to 5),6 percentage points below the OECD average (49%). Furthermore, on average, one in five adults in participating EU countries display a low level of skills in literacy. In numeracy, it is even one in four. When it comes to very high skills, only a handful of Member States are able to match the performance of the best non-EU countries, such as Japan. Figure 3 shows that, at global level, Japan outperforms all other countries with its high share of performers at levels 3 and above and very few low performers. Other big non-European economies like Canada and the US do not score much differently from many EU countries. However, there are considerable differences in the distribution of skills across EU Member States. Broadly speaking, three groups of countries can be identified: those with high shares of medium to top-performing adults and few of low-performers (like NL, FI, SE and BE/FL, among which FI comes closest to Japan); countries with results not significantly different from the OECD average; and finally countries with medium to top performers below 40% and very high shares of low performers (ES and IT). While in some countries it is mainly the older age groups that show very low skills levels, in others younger age groups also perform rather poorly (e.g. in CY and UK). Moreover, the survey results confirm that proficiency is very strongly related to parental education and to migrant status, but to a very different extent across countries. 4 This is particularly true given that about a half (51%) of all EU jobs require advanced literacy skills to be performed while 30% of all jobs in the EU job market need advanced numeracy skills, according to Cedefop’s ESJ survey. 3 Figure 3: Share of the population 16-65 years old at each level of proficiency in literacy, 2012 100% 90% 80% Missing 70% Level 5 60% Level 4 50% 40% Level 3 30% Level 2 20% Level 1 10% Below Level 1 0% Source: OECD (PIAAC). Note: countries ordered by share of levels 1 and below combined. Missing: not taken the test. PIAAC results also show considerable differences in average skills levels across countries between people who hold comparable educational degrees. Though these differences are smaller than those within countries, it is striking that in some countries, young people with only an upper secondary degree (FI, NL, SE) show higher skills than those with a tertiary degree in other countries (IT, ES, CY). Figure 4: Average proficiency in literacy (16-29 year-olds) by educational attainment, 2012 350 Level 4 Level 3 300 275 250 Level 2 Mean score points 325 225 Level 1 200 FI NL SE BE nl AT EE DE CZ Lower secondary PL DK SK Upper secondary IE IT UK ES CY EU16 Tertiary Source: OECD (PIAAC). Note: countries are ordered by average score at tertiary education level. 4 Transversal skills Transversal skills (e.g. linguistic, digital, entrepreneurship, working with others, problem solving and communication) continue to grow in importance5. However, in the EU, only 42% of teenage pupils are competent in their first foreign language and just 20% in their second foreign language6. Concerning digital skills, PIAAC showed that at least 25% of European adults still lack even basic abilities to use ICT for problem solving. This has serious consequences for the employability of individuals and productivity growth. Two in three (66%) jobs in the EU require at least a moderate level of ICT skills, particularly among workers employed in high-skilled (e.g. managers, professionals and associate professionals) or clerical support jobs, according to data from the European Skills and Jobs survey of the European Centre for the Development of Vocational Training. The majority of skilled manual workers, and 4 in 10 employees in elementary jobs, also require a basic or moderate level of ICT skills to do their jobs. However, far too many workers in lower-skilled occupations are not required to use digital skills as part of their work life, which puts them at an overall disadvantage also with regards to aspects of their everyday life. Stacked bar 4 v2 Figure 5: WhichofofICT theskills following best describes the highest level of24-65) ICT skills doing Level required by occupation, adult (aged EU for employees, your job? 2014 ISCO 1 Managers 10 ISCO 2 Professionals 11 ISCO 3 Technicians and associate professionals 14 ISCO 4 Clerical support workers 15 67 32 ISCO 6 Skilled agricultural 32 % Basic ICT 2 57 25 5 23 28 35 ISCO 8 Plant and Machine operators ISCO 9 Elementary Occupations 25 25 % Moderate ICT 10 37 26 4 2 2 % Advanced ICT 4 24 42 7 22 15 2 61 71 ISCO 5 Service and sales workers ISCO 7 Craft and trade workers 21 37 5 36 55 % ICT skills not required Notes: All respondents (48,676). Responses to the question: “Which of the following best describes the highest Base: All of respondents (48,676) Source: Cedefop Europeandevice, Skills Survey level ICT skills required for doing your job? 1. Basic ICT (e.g. using a PC, tablet or mobile email, internet browsing); 2. Moderate ICT (e.g. Word-processing, creating documents or spreadsheets); 3. Advanced Usedeveloping the Crop Figure Heading button on each chart/figure you insert this text willsyntax then beor deleted ICT (e.g. software, applications or programming; using–computer statistical analysis packages) 4. ICT skills are not required”; 5. Don’t know/no answer (not shown). Source: Cedefop’s European Skills and Jobs (ESJ) survey. For more than three in four EU employees, transversal or ‘soft’ skills (e.g. problem-solving, team-working, communication, learning to learn, planning and organisation, customer handling) are deemed to be very or moderately important for doing their job. More than half 5 See, for example, the Public consultation on a European Area of Skills and Qualification. 6 EU Skills Panorama (2014) Foreign languages Analytical Highlight, prepared by ICF GHK and Cedefop for the European Commission. 5 of EU employees require foreign language skills for their jobs, although such skills tend to be specific to abar subset Stacked 4 v2 of occupations. On a6:scale from 0 to 10, where 0 means not at all important, 5 means Figure moderately important and 10 means essential, how important are the following for doing your job? Importance of transversal skills for job, adult (aged 24-65) EU employees, 2014 Problem solving skills 79 14 3 2 Team-working skills 78 15 4 1 Communication skills 77 16 4 2 74 Learning skills Planning and organisation skills 71 18 67 Technical skills Customer handling skills Foreign language skills 18 17 30 % Very important 6 21 61 25 % Moderately important 3 8 11 26 % Not important 4 2 3 9 18 % Skill not required Source: Cedefop European Skills Survey Base: All respondents (48,676) Notes: % of Use all respondents (48,676). to the question: a– scale from to 10, where 0 means not the Crop Figure Heading Responses button on each chart/figure you“On insert this text will0then be deleted at all important, 5 means moderately important and 10 means essential, how important are the following skills for doing your job?”; Responses in the interval 7-10 of the importance scale have been classified as “Very important”, 4-6 “Moderately important” and 0-3 “Not important”; “Skill not required” is a separate category. Don’t know/no answer not shown. Source: Cedefop’s European Skills and Jobs (ESJ) survey. Specialist skills The demand for certain specialist skills, especially in areas such as Science, Technology, Engineering and Mathematics (STEM), is growing7. According to the latest CEDEFOP forecasts8, demand for STEM occupations9 is expected to grow by around 9.5% between now and 2025, much higher than the average 3.2% growth forecast for all occupations. Employment in STEM-related sectors is also expected to rise by around 6.5% between now and 2025, although this masks big differences between different sectors. For example, employment in computer programing and information service or architectural and engineering is expected to rise by some 10% or 12% respectively, while the pharmaceuticals sector is expected to see a 1% decline. However, these data do not show the breakdown by field and there may be differences between sectors. In general, it is likely that there is almost universal demand for IT professionals, but the demand for natural scientists or engineers may vary considerably. 7 CEDEFOP, Rising STEMS, http://www.cedefop.europa.eu/en/publications-and-resources/statistics-andindicators/statistics-and-graphs/rising-stems. 8 http://www.cedefop.europa.eu/en/events-and-projects/projects/forecasting-skill-demand-andsupply/skills-forecasts-main-results. 9 Defined as the sum of science and engineering professionals and science and engineering associate professionals. 6 1.2. Initial vocational education and training Initial vocational education and training (IVET) is critically important to better link the worlds of education and employment. More than 50% of EU students enrolled at upper secondary level undertake vocational education and training, making IVET a key source of new skills and competencies for EU economies. CEDEFOP forecasts show that by 2025 almost 87% of job opportunities will require at least medium level qualifications and substantial vocational skills. VET has a key role to play in ensuring a steep increase in the availability of high level skills, with an increasing number of countries setting up VET programmes at post-secondary and tertiary level. Initial VET systems must provide adequate basic, transversal, and vocational skills that fit the needs of employers and also equip learners to continue to learn throughout their careers, and to manage transitions from education to employment as well as from one job to another or from unemployment to employment. Figure 7: Students enrolled in vocational upper secondary education, % of all students enrolled in upper secondary education (ISCED level 3), 2012 80 75.3 72.8 72.7 71.3 66.2 50.4 50.6 46.1 61.9 60.7 59.2 60 50 70.3 70.1 69.5 70 48.3 49.4 48.2 45.5 44.2 43.6 39.0 40 34.1 38.6 32.2 33.1 28.7 30 27.3 20 13.2 11.8 10 0 Source: Eurostat. The mission of IVET is to prepare young people to enter the labour market by developing skills relevant to the needs of the economy. Some countries have efficient and well established systems of IVET (DE, AT, NL, DK) with strong involvement of employers and social partners in planning, organising, delivering and financing. In some other countries IVET fails to supply the relevant skills to improve productivity and innovation. The IVET sector struggles in most EU countries with declining enrolment, a poor image - it is often perceived by policy-makers and the public as an instrument for less able students – and is sometimes too slow in responding to the reported skills needs of individual economic sectors. 7 Employers' representatives throughout the EU claim that there are skills shortages in vocational professions and say they struggle to find suitable candidates for their vacancies (see below). 1.3. Work-based learning / Apprenticeships The contribution of work-based learning and apprenticeships to youth employment and competitiveness is widely recognised. Countries with strong VET and apprenticeship systems perform better in terms of youth employment, including for special groups such as Early School Leavers (ESL).10 Evidence shows that the employability of young VET graduates increases with participation in high-quality work-based learning programmes fostering skills acquisition responding to labour market needs.11 However, while 50% of secondary school students participate in VET programmes, only 26.5% of VET students are in work-based programmes.12 Figure 8: IVET work-based students as % of upper secondary IVET, 2010, 2012 Source: Cedefop calculations based on Eurostat data/UOE data collection on education systems. Mainly as a response to the high youth unemployment rates experienced as a result of the economic crisis, a trend towards a revival of work-based learning, particularly apprenticeship programmes, has taken place in most EU countries.13 As for work-based learning, according to Cedefop’s ESJ survey, the majority of employees in the EU labour market who have completed at least an upper secondary degree are more likely to have completed their studies only within an educational institution (e.g. a school, college or university) (56%). Only 10 The average share of ESLs: 12% (2013) – EU headline target: 10% by 2020; 7.5 million young people = 13% were NEETs (2013). 11 Cedefop (2012), From education to working life. It should be noted that the distribution of company- and school-based training and the proportion of young people undertaking apprenticeships varies significantly across the EU. 12 Source: Cedefop (2010), Skills Supply and Demand in Europe, Medium-Term Forecast up to 2020. 13 CEDEFOP (2015), Stronger VET for better lives: Cedefop’s monitoring report on vocational education and training policies 2010-2014, Reference series 98, Luxembourg: Office for Official Publications. 8 for about 41% of adult workers did their studies involve some learning in a workplace in the broad sense (e.g. through apprenticeships, internships or other forms of work-based learning). There are strong differences across countries in the share of employees that spent some time in a workplace during their studies. For instance, over two-thirds of respondents in Germany have completed some form of workplace learning, while respondents in some EU countries (e.g. Portugal, Lithuania, Ireland, Malta, Belgium and UK) have predominantly learned in a school-based setting. Analysis of the ESJ survey confirms that individuals whose studies involved some learning in a workplace are more likely to make a direct transition from school to their first job, as opposed to having experienced an intermittent spell of unemployment or inactivity. They are also more likely to enjoy a continued ‘virtuous’ path of skill development in their jobs, as individuals with a work-based learning experience are, on average, placed in jobs with higher skill demands. Nevertheless, greater policy efforts are still required to promote the goal of work-based learning in specific educational programmes and fields of study. For instance, while over 67% of recent graduates (aged 25-34) from the fields of medicine and health-related sciences acquired some experience in a workplace as part of their studies, only about a quarter (25%) of graduates from the fields of humanities, languages and arts; economics, business and law; or other social sciences did so. Figure 9: Average incidence of work-based learning by field of study, younger individuals (aged 24-34) with above upper secondary qualifications, EU28, 2014 Humanities, languages and arts Other social sciences Economics, Business, Law and Fin Maths and Stats Natural sciences Engineering sciences Computing sciences Agriculture and veterinary scien Teacher training and education s Other Security, transport or personal Medicine and health-related 0 .2 .4 .6 Mean % WBL Notes: Responses to the question: “Did your study (leading to your highest educational qualification) take place only within an educational institution (e.g. a school, college or university) or did it involve some learning in a workplace (e.g. apprenticeships, internships, other forms of work-based learning)?” Source: Cedefop’s European Skills and Jobs (ESJ) survey. 9 Data from Eurostat and other international sources do not allow us to provide a comprehensive and consistent picture of apprenticeship demand and supply in Europe. However, there is a broad consensus that wider availability of high-quality apprenticeships would be an effective instrument to improve sustainable transitions from school to work in many Member States, notably by fostering skills relevant to the labour market and improving skills matches. Efforts to persuade companies, mainly SMEs, to invest time and money in young learners need to be intensified, by outlining more clearly the benefits of training apprentices combined with appropriate (financial) incentives. Other challenges need to be overcome too, including: securing sufficient availability of qualified trainers; establishing and implementing proper quality assurance systems; and attracting/organising funding and other types of support for cooperation arrangements between VET institutions and businesses. 1.4. Adult learning and continuing VET Extensive participation by adults in learning activities indicates a high commitment to invest in upgrading skills and developing competences throughout life. This is crucial to maintain a productive workforce equipped with relevant skills; an effective response to structural changes such as rapid technological progress, globalisation, and the implementation of effective active ageing strategies. According to Cedefop’s ESJ survey, about a quarter (26%) of adult employees in the EU labour market think it is moderately likely and one in five (21%) think it is very likely that several of their skills will become outdated over the next five years. Employees in EE and RO (42% and 39%, respectively) are the most likely to suffer from very high levels of perceived skill obsolescence, in contrast to those in MT and BG. More than three in ten respondents working in the information technology or communication services industry think it is very likely to see some of their skills become redundant in the foreseeable future, while skill obsolescence is also high in financial, insurance or real estate services and in professional, scientific and technical services. 10 Figure 10: Perceived skills obsolescence by EU Member State, 2014 Notes: Percentage of adult employees who think it is moderately or very likely that several of their skills will become outdated in the next five years. Source: Cedefop’s European Skills and Jobs (ESJ) survey. Despite the need for continued investment in lifelong learning, Cedefop’s ESJ survey highlights that more than one in five (22%) EU employees experienced stagnation in the development of their skills in their current job. Skill development is less likely to occur among individuals that returned to the job market after experiencing a spell of unemployment, older individuals and those employed in semi-skilled and low-skilled occupations. To retain continued skill development within jobs and to shield susceptible workers from skill obsolescence, it is necessary for European lifelong learning policies to maintain their commitment to (non-formal or informal) learning and training. Under the open method of coordination in the field of Education and Training (‘ET 2020’), Member States agreed on a benchmark to be reached by 2020, according to which at least 15% of the adults (aged 25-64) population should participate in learning. The average level in 2014 was 10.7%. 11 Figure 11: Participation in adult lifelong learning (population aged 25-64, %), 2014 Source: Eurostat, Labour Force Survey RO, BG, HR, SK, EL, HU, and PL show low levels of adults undertaking any form of learning: below 5 % (compared to the benchmark of 15 %). LT, LV, IE, CY, MT, BE, DE, IT, CZ, PT and ES also face a challenge as they are below the EU average. Participation in job-related training is dependent on learning opportunities supported by the employer (i.e. during working time or paid at least partially by enterprises), which is reflected in the latest 14 Continuing Vocational Training Survey results . On average two thirds of enterprises in the EU provided continuing vocational training in 2010, but large enterprises were much more likely to provide training than small and medium-sized enterprises. The proportion was less than a third in BG, EL, PL and RO. Many more enterprises provided Continuing Vocational Training in BE, CZ, DE, ES, FR, CY, LU, NL, AT, FI, SE and UK (70% or more). 1.5. Employability of graduates While many factors influence employability (such as labour market regulations or the overall economic cycle, which lie beyond the scope of education and training policies), equipping young people with relevant knowledge, skills and attitudes eases the transition from education to employment. Figure 12 shows the percentage of young recent graduates in employment against the benchmark, set by the Council in 2012, according to which at least 82% of young recent graduates should be in employment by 2020. 14 The Continuing Vocational Training Survey (CVTS) reports on continuing vocational training activities which took place in 2010. 12 Figure 12: Employability: employment rates of recent graduates 15, 2014 (%) all levels 100 upper secondary education tertiary education 90 ET 2020 benchmark 80 70 60 50 40 30 20 10 0 MT DE NL AT SE DK LU UK CZ EE LT BE HU FI LV EU28 PL FR IE SK SI PT CY RO BG ES HR IT EL Source: Eurostat, Labour Force Survey. EL, IT, CY, ES, BG, RO, CY and PT face a serious challenge: in these countries, the employment rate of young people (aged 20-34) who recently completed at least upper secondary school and are not in education and training is below 70%. SI, SK, IE, FR and PL are also below the European average of 75%. There is a great difference between the employment rates of young graduates from upper secondary education and those from tertiary education, particularly in IE, HR, BG, and LV where the difference is more than 20 percentage points. The employment rate of recent young graduates in the EU28 as a whole increased slightly to 76.1% in 2014, after 5 years of decreases from the 2008 peak of 82%. The increase is entirely due to the medium-educated (in other words, upper secondary graduates), as the rate for tertiary graduates fell marginally also in 2014. Against this background, it is positive that 17 Member States show increasing rates. For vocational education and training, evidence from a study by JRC16 shows that in many EU countries, upper secondary school graduates from vocationally oriented programmes have higher employment rates than their non-VET counterparts, as well as lower unemployment and inactivity rates.17 OECD analysis18 confirms that at the ISCED 3 and 4 15 The indicator on which the benchmark is based is defined as the share of all young people (aged 20 – 34) who graduated from at least upper secondary education in the period of one to three years before, who are in employment and who are not currently enrolled in any further education or training activity. 16 JRC CRELL (2015): Education and youth labour market outcomes: the added value of VET. Technical briefing; based on a special extraction from LFS provided by Eurostat concerning the third quarter of 2014. 17 Measured as proportion of employed individuals aged 20-34 whose highest level of education is upper secondary or post-secondary non-tertiary (ISCED 3-4). 18 OECD (2015):The effects of vocational education and training on adult skills and wages. What can we learn from PIAAC? 13 level, VET is associated with a higher probability of being employed, but slightly lower hourly earnings. The differences are small however, especially when considered by gender. At the ISCED 5 level, there is a strong advantage of academic education in terms of earnings and employment. 2. Horizontal issues 2.1 Labour market functioning and skills mismatch Skills mismatch – a difference between the available skills and qualifications and those required by the labour market – if persistent, can lead to short- and long-term economic and social losses for individuals, employers and the society. Skills mismatch can take the form of an imbalance between aggregate labour demand and supply, thus resulting in shortages or surpluses in particular sectors or occupations; but it can also reflect an inadequate fit between individuals' skills and their job requirements. In the latter case, individuals may have higher (over-qualified/over-skilled) or lower (under-qualified/under-skilled) qualifications and skills than required19. Structural transformation of an economy may imply that jobs are created in different sectors or regions than those from which jobs are shed. The efficiency of matching can to some extent be improved by better guidance and counselling and active labour market policies, and by supporting labour mobility. According to this logic, the EU and most of its Member States showed increasingly efficient matching prior to the crisis, indicating a decrease in both the unemployment rate and the job vacancy rate. Unemployment rates and job vacancy rates both increased initially; but from 2012 onwards, job vacancy rates stagnated. However, when labour demand remains low for a long time, individuals may remain unemployed for a long time, and suffer from skills loss. As a result, long-term unemployment (LTU) may put workers at a high risk of alienation from the labour market. In 2014, LTU rates (as a % of the labour force) were above the EU average of 5.1% in 10 Member States (BG, IE, EL, ES, HR, IT, CY, PT, SI, SK), while countries like DK, LU, AT, FI and SE had significantly lower LTU rates (see Table 5 in the Annex). Between 2008 and 2014 the rate of LTU doubled in the EU. In that time period LTU also rose from 38% to 47% of unemployment, implying that close to a half of all unemployed European citizens are out of work for more than a year. In the majority of EU Member States, individuals with lower education and skill levels are faced with a higher relative risk of LTU. Since 2008, the gap in LTU rates between low-skilled workers and highly skilled and medium-skilled workers has widened significantly (see Figure 14). 19 European Commission: Employment and Social Developments in Europe 2014. 14 Figure 14: Long-term unemployment rates by skill level (% of labour force), EU28, 2004-2013 Source: EMPL calculations based on Eurostat data. There has been a concern that labour outcomes have worsened for highly educated young people as well, in particular over the crisis period. Between 2012 and 2013, the unemployment rate for the highest level of education attained increased in the majority of the MS. EL saw the highest incidence of graduate unemployment (20.3 % in 2013), followed by ES (16.3 %), CY (13.3 %), PT (13.1 %), HR (10.7%), IT (7.4%), IE (7.3 %) and SK (7.3%). By 2014, however, the situation improved for most EU Member States (see Figure 15). Figure 15: Unemployment rates with tertiary education attained (%), 2013-2014 Source: Eurostat, Labour Force Survey. 15 Not only did unemployment rates increase for tertiary educated individuals over the crisis period; but the share of tertiary educated individuals that considered themselves as overqualified or over-skilled for their job increased as well. Overqualified workers tend to suffer from lower mean wages and job satisfaction and deteriorated long term job prospects, with migrants, female and younger workers particularly affected.20 Measuring over-qualification is a complex task. One objective way of measuring overqualification that has been proposed in the literature is by crossing ISCED5-6 levels with ISCO 4-9 occupational categories. This approach implicitly assumes that the ISCO occupational categories 1-3 require tertiary education, 4-8 require upper secondary education, and ISCO 9 (elementary occupation) requires less than upper secondary education. This imposes very strict assumptions however, and abstracts from the fact that skills requirements within these very basic ISCO categories may vary widely both within and between countries. According to this logic, the highest numbers of overqualified workers are found in ES, CY and IE; and these shares have increased on average over the last decade (Figure 16). Figure 16: Over-qualification. High skilled in medium or low skilled jobs (% of 2004 and 2014) Source: Eurostat (European Commission, DG EMPL, calculations) Crossing ISCED 5-6 and ISCO 4-9 as % of people employed with ISCED 5-6. 20 The expansion of higher education in Europe is not new. Since the 1970s the supply of high-skilled workers has increased substantially. According to the theoretical and empirical evidence, what seems to be new is that while in the past over-education was a transitory phenomenon, it has now turned into a permanent feature. This means that anyone starting on a job below their potential capacities has fewer possibilities than before to find work matching their educational qualifications in the future. In general, this may be because the supply of skilled workers has increased faster than demand for them. 16 There are also subjective measures of over-qualification based on self-assessment. Based on the ESJ survey provided by the European Centre for the Development of Vocational Training,21 which rely on a comparison of individuals’ highest qualification level with the level reported by themselves as necessary to actually do their current job, total qualification mismatch affected on average 29 % of the European population (see Figure 2 in the Annex). While workers can be well-matched by their levels of qualifications to those required by employers during their recruitment, they may be mismatched in their levels of skills because of heterogeneity of skill levels among individuals with the same formal credentials (e.g. differences in non-cognitive skills). Alternatively, individuals mismatched by qualifications may have adequate skills required for the job due to a high stock of informal skills and work experience acquired in the labour market over time (see Figure 3 in Annex). Cedefop’s ESJ survey reveals that in 2014 about 45% of employees in the 28 EU countries experienced skill mismatch (both workers who feel that some of their skills are lower than needed to do their job, and those with more skills than are needed by their job). Self-reported underskilling is the highest in the Baltic states, while more than 40% of workers feel that their skill level is higher than needed to do their job in AT, UK, EL, IE, DE, FI and ES. Overskilling is a dynamic phenomenon. Workers may enter their job underskilled, become increasingly better matched over time; and after some time even become overskilled for their same job. More than 40% of employees in some EU countries (AT, UK, DE, EL, ES, FI and IE) consider themselves overskilled for their job. These comprise employees who considered themselves overskilled at the time of entering their job; but also employees who have become overskilled over time. This happens much less often in the Baltic states, MT and RO. 21 See Employment and Social Developments in Europe 2012 Review. 17 Figure 17: 0 .2 .4 .6 Dynamic changes in skill mismatch status of EU adult employees, EU28, 2014 DE FR UK SE IT GR CZ PL NL DK HU ES AT BE IE SK FI PT EE RO LT CY SI BG LV LU MT HR % stayed overskilled % became overskilled although matched skills at start of job % became overskilled although underskilled at start of job Notes: Blue bars = percentage of adult employees who remained overskilled since the start of their current job; Red bars = percentage of adult employees with matched skills at the start of their current job but became overskilled over time; Green bars = percentage of adult employees who were underskilled at the start of their current job but became overskilled over time. Source: Cedefop’s European Skills and Jobs (ESJ) survey. At the same time, shortages of professionals may occur in specific sectors (e.g. healthcare, ICT, finance)22. Forecasts23 indicate that by 2025, 46.3% of all job openings (including both new and replacement jobs) in the EU will require high qualifications, 40.8% will be for medium qualified and only 12.8% will be of an elementary nature. The expansion demand for workers (i.e. new jobs) will continue to concentrate mainly on high skills. Around 40% of employers in the EU report difficulties in finding staff with the right skills, according to data from Eurofound’s 3rd European Company Survey.24 The incidence of skill shortages and mismatches varies by country according to the diversity in economic structure and growth, labour market conditions and skill matching policies in place.25 Over 60% of establishments in AT and the Baltic states have difficulties finding suitably skilled employees, compared to less than 25% in HR, CY, EL and ES. On average, they tend to be more prominent in the manufacturing sectors of economies and less prevalent in the financial 22 World Economic Forum: matching skills and Labour market needs, 2014. 23 Cedefop (2015). 24 http://www.eurofound.europa.eu/surveys/ecs/2013/european-company-survey-2013. 25 CEDEFOP (2015), Skill shortages and skill gaps in EU firms, Reference series report. 18 sector. The largest recruitment difficulties are reported in the engineering, ICT and health care sectors and for specific occupational groups (e.g. skill trades workers, welders, technicians, software analysts, machinists etc.). The perceived skill shortages of employers fell since the onset of the economic crisis and have remained below pre-crisis levels. While a third to a half of the perceived shortages of employers reflect a genuine inability to find labour with the right skills, a significant part can be attributed to poor working conditions offered and other constraints (e.g. inefficient human resource practices, geographical barriers, lack of attractiveness of some occupations and sectors etc.). Figure 18: Distribution of firms’ difficulties finding right skills by broad economic sector and EU Member State, 2013 Source: Cedefop’s analysis (Cedefop, 2015) based on data from 3rd European Company Survey (2013). 2.2. Skills needs' assessment, anticipation and forecasting A recent survey covering 8 EU Member States26 shows that one-third of employers report that lack of the right skills causes major business problems, in the form of costs, quality and time. 27% of employers indicated the lack of skills as the main reason for not being able to fill vacancies. This is particularly problematic for small businesses which are also less likely to invest in training for their employees after recruitment. At the same time, only 42% of young people believe that their post-secondary studies (vocational and academic) improved their employment opportunities and 79% are unhappy with their employment prospects. At national level, only a third of Member States monitor the evolution of labour demand with a further third only having partial data27. Nevertheless, initiatives to assess and anticipate skill needs have been put in place or are currently developed and refined in most 26 McKinsey (2014), Education to Employment: Getting Europe's Youth into Work. Countries include France, Germany, Greece, Italy, Portugal, Spain, Sweden and the UK. 27 Mapping and Analysing Bottleneck Vacancies in EU Labour, Overview report (2014). 19 EU countries.28 Approaches vary in terms of how skill needs are approximated (e.g. qualification levels or type; occupations; sectors), their time span (short-, medium- or longterm needs) and mix of methods (e.g. quantitative, qualitative or a mix of both). 29 Usually skills analysis is done by labour ministries, public employment services, unions, labour market research institutes, agencies or councils and national statistics offices. Many regions and municipalities also engage in skills analysis since labour markets are typically regional. The outputs of skills assessment and anticipation exercises are widely used to inform a range of skills-related policies across different policy domains (e.g. education and training, employment and migration). Labour market intelligence should then be better exploited when education and training courses and curricula are being designed. Skills intelligence must also support career guidance and counselling in schools and employment services in helping individuals choose learning and career paths that improve their employability. In doing so, important barriers need to be overcome, including lack of funds, political support, human resources and statistical infrastructure. Skill anticipation exercises must be linked to specific policy objectives, feed into end-users of the information and rely on good co-ordination across different ministries and strong stakeholder involvement.30 2.3. Visibility and recognition of skills Work on the comparability of qualifications across Europe started a decade ago and the European Qualifications Framework (EQF) is helping Member States to trust the quality of each other’s qualifications and easing the mobility of learners and workers within the EU. To date, 21 Member States have referenced their national qualifications frameworks to the 8 European levels foreseen in the European Qualifications Framework. The remaining Member States31 are in different stages of doing so. While across the EU further steps are necessary towards recognition, an increasing number of third countries have shown interest to align their qualification frameworks with the European Qualifications Framework, which could support labour migration movements and help to fill in some skills gaps. Skills acquired outside of the formal education and training system are not often documented or formally recognised. Identification and validation of skills is particularly relevant for people with lower qualifications, unemployed or at risk of unemployment, and for those who need to change their career paths, i.e. identify further training needs and access requalification opportunities. Based on the 2012 Council recommendation on the validation of non-formal and informal learning32, pathways have been established on the validation of skills acquired outside of the formal education and training system, e.g. through work 28 Medium-term forecasts of skill needs for all EU member states, developed by CEDEFOP under the auspices of the EU Commission Progress program, are available at: http://www.cedefop.europa.eu/en/events-andprojects/projects/forecasting-skill-demand-and-supply/skills-forecasts-main-results. 29 Cedefop/ILO/ETF (2015) Guide to anticipating and matching skills and jobs Volume 2: Developing skills foresights, scenarios and forecasts, Cedefop. 30 Based on information collected as part of the joint OECD/CEDEFOP/ETF/ILO ‘Anticipating and responding to future skill needs’ questionnaire to identify effective skill governance strategies across countries, forthcoming, 2015. 31 SE, FI, ES, EL, CY, RO, SK. 32 http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:C:2012:398:0001:0005:EN:PDF 20 experience, in-company training, digital resources, volunteering and life experience in general. Opportunities and uptake of validation, however, vary significantly across the EU. For instance, skills audits for particularly disadvantaged groups are available only in 13 Member States33. The possibility to acquire a national qualification or gain access to formal education on the basis of validation is available in 15 Member States34. In line with the Council Recommendation, Member States will report on progress on national validation arrangements by 2018. The 2012 Recommendation on validation of non-formal and informal learning identifies the link to national qualification frameworks (NQFs) as an important feature of validation arrangements across Europe. Overall, national qualification frameworks and validation are bound together through their shared emphasis on learning outcomes. The 2012 recommendation states, that ‘the same or equivalent (learning outcomes based) standards to those used in formal education’ should be used for validation of non-formal and informal learning. National qualification frameworks thus provide a common reference point for learning acquired inside as well as outside formal education and training. 33 BE (Flanders and Wallonia), NL, SE, SI, LU, EL, HU, FI, IT, PL, FR, HR, LV (Source: European Commission; Cedefop; ICF International (2014). European inventory on validation of non-formal and informal learning 2014. Final synthesis report http://libserver.cedefop.europa.eu/vetelib/2014/87244.pdf). 34 AT, BE (Flanders), BG, CZ, DK, FR, IE, LV, LT, LU, MT, PT, SI, ES, UK (England, Scotland, Wales) (Source: European Commission; Cedefop; ICF International (2014). European inventory on validation of non-formal and informal learning 2014. Final synthesis report: http://libserver.cedefop.europa.eu/vetelib/2014/87244.pdf) 21 Annex: Relevant statistics Measuring the quantity and quality of skills and their impact on employability and productivity is a complex task that is often constrained by data availability. The main data sources that are currently at our disposal are presented below. The EU Labour Force Survey (EU LFS)35, carried out by Eurostat and the national statistical institutes in all the EU MS, collects information on a wide number of work-related topics, including employment/unemployment and participation in lifelong learning broken down by different categories. The OECD Programme for International Student Assessment (PISA) 36 is a triennial international survey which aims to evaluate education systems worldwide by testing the skills and knowledge of 15-year-old students. The most recently published results are from the assessment in 2012, which measured skills in reading, mathematics and science (with a focus on mathematics) and covered all the EU MS, except Malta. The 2015 assessment will focus on science. The OECD Survey of Adult Skills (PIAAC)37 provides evidence about the skills of Europe's working age population. The data informs about literacy, numeracy and problem solving in technology rich environments of 16-65 year olds and thus allows looking into the long-term outcomes of educational provision in terms of the skills acquired or the relation between formal qualifications and skills levels. The 1st PIAAC round was carried out in 2008-2013 in 17 EU Member States38. The 2nd round is being carried out in 2012-2016 in 3 other MS (EL, LT, SI). The European Working Conditions Survey (EWCS)39 by Eurofound explores quality of work issues and provides information on inter alia training and learning at work. CEDEFOP's European Skills and Jobs Survey (ESJ)40 carried out in 2014 in all 28 EU MS collected information on the match of the skills of about 49,000 EU workers (adults aged 2465) with the skill needs of their jobs. It provides a first insight of the dynamics of qualification and skill mismatch in the EU, focusing on the interplay between changes in the (cognitive and non-cognitive) skills of employees in their jobs as well as the changing skill needs and complexities of their jobs. The survey also focuses on the role of European policies on initial (e.g. work-based learning) and continuing VET (e.g. formal, non-formal and informal training) 35 http://ec.europa.eu/eurostat/web/microdata/european-union-labour-force-survey. 36 http://www.oecd.org/pisa/ 37 http://www.oecd.org/site/piaac/ 38 AT, BE(FL), CZ, DE, DK, EE, FI, FR, DE, IE, IT, NL, PL, SK, ES, SE, UK (England and Northern Ireland). 39 To date, Eurofound has carried out five European working conditions surveys (1991, 1995, 2000/2001, 2005 and 2010). The 6th survey to be carried out in 2015 will include all the 28 EU MS. The first results will be available at the end of 2015. 40 http://www.cedefop.europa.eu/en/news-and-press/news/cedefop-launches-european-skills-survey-euskills. 22 and on workplace design for mitigating skill mismatch. The findings will be published in 2015.41 Other Eurostat skills and training surveys42 – Adult Education Survey (EU AES); Continuous Vocational Training Survey (EU CVTS); Unesco-OECD-Eurostat (UOE) data sources provide information on skills needs, training and barriers to training for individuals and companies. Table 1: Low achievers: PISA 2012 results in reading Low achievers in reading. % All EU countries Belgium Bulgaria Czech Republic Denmark Germany Estonia Ireland Greece Spain France Croatia Italy Cyprus Latvia Lithuania Luxembourg Hungary Malta Netherlands Austria Poland Portugal Romania Slovenia Slovakia Finland Sweden United Kingdom Iceland Turkey Liechtenstein Norway USA Canada Japan Korea 2003 19.5 17.9 : 19.3 16.5 22.3 : 11.0 25.3 21.1 17.5 : 23.9 : 18.0 : 22.7 20.5 : 11.5 20.7 16.8 21.9 : : 24.9 5.7 13.3 : 18.5 36.8 10.4 18.1 19.4 9.5 19.0 6.8 2006 23.1 19.4 51.1 24.8 16.0 20.0 13.6 12.1 27.7 25.7 21.7 21.5 26.4 : 21.2 25.7 22.9 20.6 : 15.1 21.5 16.2 24.9 53.5 16.5 27.8 4.8 15.3 19.0 20.5 32.2 14.3 22.4 11.0 18.4 5.8 2009 19.7 17.7 41.0 23.1 15.2 18.5 13.3 17.2 21.3 19.6 19.8 22.4 21.0 : 17.6 24.4 26.0 17.6 36.3 14.3 27.6 15.0 17.6 40.4 21.2 22.2 8.1 17.4 18.4 16.8 24.5 15.7 15.0 17.6 10.3 13.6 5.8 2012 17.8 16.1 39.4 16.9 14.6 14.5 9.1 9.6 22.6 18.3 18.9 18.7 19.5 32.8 17.0 21.2 22.2 19.7 : 14.0 19.5 10.6 18.8 37.3 21.1 28.2 11.3 22.7 16.6 21.0 21.6 12.4 16.2 16.6 10.9 9.8 7.6 Boys 2012 23.7 20.8 50.9 22.8 19.2 20.1 14.2 13.0 32.2 23.4 25.5 27.6 25.9 44.5 25.7 31.9 26.6 26.9 : 17.2 26.2 16.2 25.0 46.8 30.5 35.4 17.7 31.3 19.8 29.8 30.9 14.8 22.5 22.2 15.2 13.1 10.4 Girls 2012 12.0 11.5 27.0 10.6 10.1 8.7 4.2 6.1 13.3 13.1 12.7 9.5 12.6 20.5 8.2 10.4 17.6 13.0 : 10.6 12.8 5.2 12.5 28.1 11.1 20.4 4.6 14.0 13.5 12.0 12.2 9.7 9.6 10.8 6.6 6.1 4.5 Average score All 2012 497 509 436 493 496 508 516 523 477 488 505 485 490 449 489 477 488 488 : 511 490 518 488 438 481 463 524 483 499 483 475 516 504 498 523 538 536 Source: OECD (PISA). 41 http://www.cedefop.europa.eu/en/events-and-projects/projects/analysing-skill-mismatch. 42 http://ec.europa.eu/eurostat/web/education-and-training. 23 Overall situation, general trends: Since 2006, EU-level results have considerably improved, though overall progress from 2009 to 2012 was rather small with only 1.9pp. There is also a very big and persistent performance gap between by gender, with boys showing twice the share of low achievers as girls. Selected trends in performance: The share of low achievers fell in all but four countries, with particularly large drops in four countries (DE, EE, AT and PL). Conversely, it remains still very high in BG, RO, CY and SK. EL, HU and SE worsened their position and are above the EU average, while FI also increased, though still well below average. Table 2: Low achievers: PISA 2012 results in mathematics EU 26 countries Belgium Bulgaria Czech Republic Denmark Germany Estonia Ireland Greece Spain France Croatia Italy Cyprus Latvia Lithuania Luxembourg Hungary Malta Netherlands Austria Poland Portugal Romania Slovenia Slovakia Finland Sweden United Kingdom Iceland Turkey Liechtenstein Norway USA Canada Japan Korea % low achievers in mathematics All Boys Girls 2009 2012 2012 2012 22.3 22.1 21.2 23 19.1 19.0 19.3 18.5 47.1 43.8 45.1 42.3 22.3 21.0 19.3 22.7 17.1 16.8 15.1 18.6 18.6 17.7 16.8 18.7 12.6 10.5 10.6 10.4 20.8 16.9 15.2 18.7 30.3 35.7 34.5 36.9 23.7 23.6 22.1 25.1 22.5 22.4 22.3 22.4 33.2 29.9 28.8 31.0 24.9 24.7 22.8 26.7 : : : : 22.6 19.9 21.5 18.3 26.3 26.0 27.7 24.3 23.9 24.3 20.1 28.7 22.3 28.1 27.6 28.5 : : : : 13.4 14.8 13.9 15.8 23.2 18.7 16.1 21.2 20.5 14.4 15.0 13.8 23.7 24.9 24.0 25.9 47.0 40.8 40.4 41.2 20.3 20.1 20.4 19.8 21.0 27.5 27.6 27.3 7.8 12.3 14.1 10.4 21.1 27.1 28.2 26.0 20.2 21.8 19.7 23.8 17.0 21.5 23.2 19.7 42.1 42.0 40.8 43.2 9.5 14.1 11.2 17.3 18.2 22.3 22.6 22.0 23.4 25.8 26.5 25.2 11.5 13.8 13.4 14.3 12.5 11.1 10.9 11.2 8.1 9.1 9.2 9.1 Average scores All 2009 2012 493 495 515 515 428 439 493 499 503 500 513 514 512 521 487 501 466 453 483 484 497 495 460 471 483 485 : : 482 491 477 479 489 490 490 477 : : 526 523 496 506 495 518 487 487 427 445 501 501 497 482 541 519 494 478 492 494 507 493 445 448 536 535 498 489 487 481 527 518 529 536 546 554 Source: OECD (PISA). 24 Overall situation, general trends: Performance has virtually stagnated between 2009 and 2012 with a drop of low achievers of only 0.2 pp. In most EU countries, boys still do slightly better than girls, but in a number of countries girls are performing better (BE, BG, EE, CY, LV, LT, PL, SI, SK, FI and SE). Selected trends in performance: Countries that have improved their performance most since 2009 include RO, PL, AT, BG, IE and HR, while in SK, SE, HU, FI and EL it worsened significantly. Table 3: Low achievers: PISA 2012 results in science All EU 27 countries Belgium Bulgaria Czech Republic Denmark Germany Estonia Ireland Greece Spain France Croatia Italy Cyprus Latvia Lithuania Luxembourg Hungary Malta Netherlands Austria Poland Portugal Romania Slovenia Slovakia Finland Sweden United Kingdom Iceland Turkey Liechtenstein Norway USA Canada Japan Korea 2009 17.8 18.0 38.8 17.3 16.6 14.8 8.3 15.2 25.3 18.2 19.3 18.5 20.6 : 14.7 17.0 23.7 14.1 32.5 13.2 21.0 13.1 16.5 41.4 14.8 19.3 6.0 19.1 15.0 17.9 30.0 11.3 15.8 18.1 9.6 10.7 6.3 Share of low achievers Boys 2012 2012 16.6 17.5 17.7 19.1 36.9 41.8 13.8 14.6 16.7 16.4 12.2 12.9 5.0 6.0 11.1 11.6 25.5 29.8 15.7 15.9 18.7 20.5 17.3 19.5 18.7 19.6 38.0 41.9 12.4 15.3 16.1 19.5 22.2 20.3 18.0 18.8 : : 13.1 13.2 15.8 16.2 9.0 10.2 19.0 20.3 19.0 39.5 19.0 14.8 19.0 26.8 19.0 9.7 19.0 24.8 19.0 13.9 24.0 25.6 26.4 29.9 10.4 8.1 19.6 20.7 18.1 20.0 10.4 11.1 8.5 9.0 6.6 7.6 Girls 2012 15.7 16.2 31.7 12.9 17.0 11.5 4.1 10.6 21.3 15.5 17.0 15.0 17.8 34.0 9.4 12.6 24.2 17.4 : 13.0 15.4 7.9 17.7 35.3 10.8 26.9 5.6 19.6 16.0 22.4 22.7 13.0 18.5 16.2 9.7 7.9 5.6 Average scores All 2009 2012 501 504 507 505 439 446 500 508 499 498 520 524 528 541 508 522 473 467 488 496 498 499 486 491 489 494 : 438 494 502 491 496 484 491 503 494 461 : 522 522 494 506 508 526 493 489 428 439 512 514 490 471 554 545 495 485 514 514 496 478 454 463 520 525 500 495 502 497 529 525 539 547 538 538 Source: OECD (PISA). 25 Overall situation, general trends: There was a slight improvement in performance by 1.2 pp in the period 2009-2012. The share of low achievers among girls is lower than those of boys, at EU level and in the large majority of Member States (all except DK, LU and SK). Selected trends in performance: The share of low-achievers in science rose most in SK, HU, SE and PT while it fell considerably in AT, RO, IE and CZ. CY recorded the worst rate in 2012, at more than double the EU-average. Table 4: Low achievers: PISA results in mathematics, by socio-economic status Average scores Students according to socioDifference in performance between economic status 2012 bottom and top quarter Bottom quarter EU countries Belgium Bulgaria Czech Republic Denmark Germany Estonia Ireland Greece Spain France Croatia Italy Cyprus Latvia Lithuania Luxembourg Hungary Malta Netherlands Austria Poland Portugal Romania Slovenia Slovakia Finland Sweden United Kingdom Iceland Liechtenstein Norway USA Canada Japan Korea Top quarter : 469 384 450 460 467 496 462 413 442 442 438 447 : 453 439 438 422 : 484 458 473 441 407 458 416 488 442 458 464 490 549 442 486 500 516 : 567 501 552 545 569 558 545 502 533 561 517 522 : 532 522 546 539 : 565 552 571 548 501 552 545 555 518 545 526 563 522 532 558 575 595 2003 2012 : -133 : -105 -98 -123 : -88 -96 -80 -105 : -86 : -76 : -100 -126 : -99 -90 -96 -98 : : -119 -69 -90 : : : : : : : : : -98 -117 -102 -85 -102 -62 -83 -89 -91 -119 -79 -75 : -79 -83 -108 -117 : -81 -94 -98 -107 -94 -94 -129 -67 -76 -87 -62 -73 27 -90 -72 -75 -79 Source: OECD (PISA). 26 Overall situation, general trends: Students from the top quarter of the OECD's Socio-economic status index show significantly higher skills levels across all countries than those from the bottom quarter. Though the gap varies, it is in no country below 67 score points (almost two years of education), reaching 129 points in SK (equalling roughly 3.5 years of education). Since 2003, the gap has narrowed considerably in BE, DK, DE, IE, EL, IT, HU, NL and SE, but still increased in ES, FR, LV, LU, AT, PL, PT, SK. Selected trends in performance: Countries with a relatively small performance gap between migrant students and native students include UK, CZ, HR, LV, LU and IE. In HU and SK migrants outperform native students. Countries with a large performance gap between natives and migrants include BE, NL, FR, ES, IT and the Nordic countries. 27 Table 5: Long-term unemployment (% of active population) GEO/TIME 2008 2009 2010 2011 2012 2013 2014 EU 28 2.6 3.0 3.9 4.2 4.7 5.2 5.1 Belgium 3.3 3.5 4.1 3.5 3.4 3.9 4.3 Bulgaria 2.9 3.0 4.8 6.3 6.8 7.4 6.9 Czech Republic 2.2 2.0 3.0 2.7 3.0 3.0 2.7 Denmark 0.5 0.6 1.5 1.8 2.1 1.8 1.7 Germany 3.9 3.5 3.3 2.8 2.4 2.3 2.2 Estonia 1.7 3.7 7.6 7.1 5.5 3.8 3.3 Ireland 1.7 3.5 6.8 8.7 9.1 7.9 6.7 Greece 3.7 3.9 5.7 8.8 14.5 18.5 19.5 Spain 2.0 4.3 7.3 8.9 11.0 13.0 12.9 France 2.8 3.2 3.7 3.8 4.0 4.2 4.4 Croatia 5.3 5.1 6.6 8.4 10.2 11.0 10.1 Italy 3.1 3.5 4.1 4.3 5.7 6.9 7.8 Cyprus 0.5 0.6 1.3 1.6 3.6 6.1 7.7 Latvia 1.9 4.5 8.8 8.8 7.8 5.8 4.7 Lithuania 1.3 3.3 7.4 8.0 6.6 5.1 4.8 Luxembourg 1.6 1.2 1.3 1.4 1.6 1.8 1.6 Hungary 3.6 4.2 5.5 5.2 5.0 4.9 3.7 Malta 2.5 2.9 3.1 3.1 3.1 2.9 2.7 Netherlands 1.3 1.1 1.4 1.7 2.0 2.6 3.0 Austria 1.0 1.2 1.2 1.2 1.2 1.3 1.5 Poland 2.4 2.5 3.0 3.6 4.1 4.4 3.8 Portugal 4.1 4.7 6.3 6.2 7.7 9.3 8.4 Romania 2.3 2.1 2.4 2.9 3.0 3.2 2.8 Slovenia 1.9 1.8 3.2 3.6 4.3 5.2 5.3 Slovakia 6.7 6.5 9.3 9.3 9.4 10.0 9.3 Finland 1.2 1.4 2.0 1.7 1.6 1.7 1.9 Sweden 0.8 1.1 1.6 1.5 1.5 1.5 1.5 United Kingdom 1.4 1.9 2.5 2.7 2.7 2.7 2.2 Source: Eurostat. 28 Figure 1: Beveridge curves of Member States43 43 Source: Eurostat Labour Force Survey and European Commission, EU Business and Consumer Surveys. Data seasonally adjusted. The data used are the following: unemployment rate (UR, %); labour shortage indicator (LSI, %), derived from EU business survey results (% of manufacturing firms pointing to labour shortage as a factor limiting production). 29 30 31 32 33 34 Figure 2: 0 20 40 60 80 100 Average incidence of qualification mismatch among 25-65 year olds, % of employees, 2014, EU-28 DE FR UK SE IT GR CZ PL NL DKHU ES AT BE IE SK FI PT EERO LT CY SI BG LV LU MTHR Overqualified Underqualified Notes: Based on comparisons of an individual’s highest level of educational qualification with the (selfperceived) level of educational qualifications actually needed to do his/her current job. Source: Cedefop’s European Skills and Jobs (ESJ) survey. Figure 3: Qualification mismatch versus skill mismatch, % of adult employees, 2014, EU28 45 41 40 35 30 26 25 Overskilled 20 Matched skills Underskilled 15 10 10 5 8 6 4 4 1 1 0 Overqualified Matched qualifications Underqualified Source: Cedefop’s European Skills and Jobs (ESJ) survey. 35
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