Skills for growth: human capital composition and economic performance

Investing in Youth in Tunisia most important than ever, and the still relevance of the last Investing in Youth review 2014.

Latvia faces a huge demographic challenge. Since restoration of its independence in 1991, the country lost more than a quarter of its resident population.The report "Investing in Youth: Latvia" states that investing in youth, by upgrading skills and promoting employment, is a priority if Latvia wants to offer its young people a positive outlook and address the demographic challenge.

Average wages can vary markedly between socio-economic groups (gender, native- and foreign-born; high-skilled and low-skilled parents; workers of different ethnicities; age). These differences between groups of workers contribute to high overall wage inequality.

Regional disparities in the supply and demand of skills do exists in many OECD countries. Local level actors need to be equipped with the right tools and capacities to develop innovative employment and job creation strategies tailored to their local conditions.

Discussion on how technology helps measuring skills shortages in real time

Openness to change and a continuous questioning of the way we work are the keys to being prepared for the Future of Work. This advice comes from Mark Keese, Head of the Employment Analysis and Policy Division at the OECD, and we catch up with Mark following the OECD's Future of Work Forum in January 2016.

A discussion on how can we reconcile the apparently contradicting views of labour market demand for soft skills versus technical job-specific skills.

The Organisation for Economic Cooperation and Development (OECD) and J.P. Morgan through its Foundation today launched a new project “Adapting to Changing Skills Needs” to fill knowledge gaps in the assessment of skill mismatches and to identify international best practice in addressing them.

Today the OECD is launching a new project with JP Morgan and Chase Foundation to measure and analyse skills needs in a harmonized way across countries. Experts from various countries and fields of discipline are meeting at the OECD to discuss methodological issues involved in developing a cross-country indicator of skill needs. By informing policy, this new data tool will make strides towards addressing skill shortages.

Australia should provide early access to more intensive employment services for disadvantaged laid-off workers to help them find a new job more quickly, according to a new OECD report.

Sweden should address housing shortages, begin integration activities early, and improve the support for those with low skills to speed up the effective integration of refugees, according to a new OECD report.

Recent fires in Fort McMurray draw attention to a town that has been a prime destination for internal mobility in Canada over the past decades. This post discusses the role that geographical internal mobility can play in improving the matching of skill demand and skill supply in a national labour market, while also noting some of the barriers to labour mobility and potential economic and social costs.

OECD analyses have begun to understand the relationship between digitalisation, jobs and skills, the magnitude of potential job substitution due to technological change, the relationship between globalisation and wage polarisation, as well as the changes to the organisation of work.

This study will analyse how selected local areas/industry clusters identify the specific skills needed to support green growth and how related skills policies and practices can be made more effective in supporting their provision and accelerating transition to a low-carbon economy.

A range of OECD analysis has been exploring the relationship between digitalisation, jobs and skills, the magnitude of potential job substitution due to technological change, the relationship between globalisation and wage polarisation, as well as the changes to the organisation of work. This post focused on a recent paper on Automation.

Ongoing innovation in technology is changing labour markets worldwide. To understand the future of work in the digital era, we need to move away from the traditional economic classification of manufacturing and non-manufacturing sectors.

Tax incentives are used widely across OECD countries to incentivise individuals to invest in education and training, but are they effective? Recent evidence from the USA highlights the risk of creating overly complex systems in which the embedded incentives are no longer fully understood by individuals. This carries an important lesson for other countries in designing their own tax measures for skills investments.

A more skilled population ahead: age or cohort effects? Evidence from PIAAC and the differences in policies approach.

The demand for soft skills is increasing, and recent evidence suggests that the supply does not seem to keep up. The benefits from further development of these skills go beyond better labour market outcomes, as soft skills have been shown to contribute to overall well-being.

Today, the OECD publishes "Skills Matter: Further Results from the Survey of Adult Skills", the Second International Report for the Survey of Adults Skills, which covers a further nine countries and sub-national entities – Chile, Greece, Indonesia (Jakarta), Israel, Lithuania, New Zealand, Singapore, Slovenia and Turkey– that collected data in 2014-15.

This OECD report was developed in collaboration with the United States, Mexico and Canada, for consideration by the three Leaders in the context of the 2016 North American Leaders Summit.

Although Lithuania’s growth has been impressive, inequality is high, the risk of poverty is one of the highest of European countries, and life expectancy is comparatively low and strongly dependent on socio-economic background.

In 2015 the Lithuanian government launched an ambitious Social Model reform agenda aimed at balancing flexibility of the labour market and security provided through the system of social protection.

Labour markets are continuing to recover from the crisis and employment is set to return to pre-crisis levels in 2017, but wage growth remains weak, according to a new OECD report.

This chapter analyses how skills are used at work, why skills use matters for workers and economies and its key determinants. It draws on data for the 28 OECD countries participating in the Survey of Adult Skills.

Despite unprecedented progress over the past century, gender gaps in the labour market persist throughout the world and are especially marked in emerging economies. While the quantity of jobs held by women has increased in many countries, female workers continue to have worse jobs than men.

Denmark was hit harder by the global financial crisis than its neighbouring countries and the OECD area, but is now slowly recovering. In the first quarter of 2016, the employment rate was still 4.8 percentage points lower than before the GFC with only minor improvement since 2013.

The recently published Second International Report for the Survey of Adults Skills looks in detail at the extent to which proficiency in literacy, numeracy and problem solving in technology-rich environments matters for the well-being of individuals and nations. The answer that emerges is clear: proficiency is positively linked to a number of important economic and social outcomes.

The labour market recovery in the Netherlands is lagging behind. As of the last quarter of 2015, the unemployment rate stood at 6.7%, just one percentage point lower than its cyclical peak and three percentage points higher from its level at the start of the global financial crisis. As a result of the sluggish recovery, the unemployment rate in the Netherlands is now slightly higher than that for the OECD as a whole.

Despite unprecedented progress over the past century, gender gaps in the labour market persist throughout the emerging world and are accompanied by important skill gaps. Women tend to perform worse in STEM subjects, have lower financial literacy and business knowledge than men. The OECD Employment Outlook 2016 paints an up-to-date picture of gender gaps in 16 emerging economies and outlines a comprehensive set of policy recommendations.

The Netherlands should improve its policies to attract and retain highly skilled migrants in order to address labour shortages and strengthen its position as a knowledge-based economy, according to a new OECD report.

Low birth rates have become a pressing issue in Italy and many young Italians feel they do not enjoy the necessary economic stability to plan ahead and start a family. Education that matches the skill needs of employers leading to work-based learning in the form of apprenticeships can be useful to help young Italians plan ahead and to sustain the much needed increase in the birth rate.

The OECD has just released a new working paper by Thor Berger and Carl Frey which provides a systematic overview of the literature examining the impact of digitalisation on labour markets. The paper highlights some well-known as well as some lesser-known facts about digitalisation, deindustrialisation and the future of work.

New research finds that green jobs use high-level cognitive and interpersonal skills more intensively compared to non-green jobs, and tend to be less routinized. They are also heterogeneous in terms of skill level.

The Regional School of Public Administration (ReSPA) has devoted its 9th Annual Conference to opening direct channels of discussion on experiences, methodologies and innovative practices in the process of optimization of public administration in the Western Balkans.

This paper delivers a broad assessment of income inequality in Denmark.

Reforms that boost growth by enhancing economic flexibility often meet strong opposition related to concerns that they may imply adverse consequences for categories of workers. This study investigates how making product or labour market regulation more flexible changes workers’ risks of moving out of employment and jobless people’s chances of becoming employed.

Information and communication technologies (ICT) are profoundly changing the skill profile of jobs. Skill development policies need to be overhauled to reduce the risk of increased unemployment and growing inequality.

This document describes and discusses a new supply side framework that quantifies the impact of structural reforms on per capita income in OECD countries.

Skill requirements in the labour market have significantly changed over the past two decades. The restructuring of the economy is making the labour market increasingly knowledge-based.

OECD Global Network of Schools of Government provides direct access to OECD governance expertise and enables exchange of schools’ experiences and good practices in ensuring that public sector employees have the skills and competencies to address current and future priorities.

This report has been elaborated by the OECD in very close collaboration with the Portuguese government and, in particular, the Ministry of Labour. A final version was submitted to the government in late December 2016 and it is expected to be released in Lisbon on the 19th of January 2017.

Australia’s strong economy has helped drive a healthy job market. But to avoid a future shortage of labour as the population ages, further efforts are needed to help older women, indigenous Australians and mothers with young children into work, according to a new OECD report.

An increasing number of middle-income countries are participating in projects measuring cognitive skills of the adult population. Large differences in skill levels exist between these countries, with some having a large skills gap compared to OECD countries. Skill differences not only reflect differences in educational attainment, as skill levels among adults with the same level of educational differ widely across countries.

Information and communication technologies (ICT) are changing profoundly the skill profile of jobs. To thrive in the digital economy, ICT skills will not be enough and other complementary skills will be needed, ranging from good literacy and numeracy skills through to the right socio-emotional skills to work collaboratively and flexibly.

New Zealand should extend access to income support and introduce a longer minimum notice period for all workers to help disadvantaged laid-off workers find a new job and maintain their job quality and living standards, according to a new OECD report.

In an increasingly competitive international environment, providing workers with the right mix of skills can help ensure that globalisation translates into new jobs and productivity gains rather than negative economic and social outcomes, according to a new OECD report.

The talk of the town this year has truly been the so-called fourth industrial revolution–and rightly so. Digitalisation causes an increasing interconnectivity of people, production and processes. Combined with the rapid development in artificial intelligence, self-learning machines and robot technology it heralds a new time of revolutionary technological progress.

Recent debates of Basic Income proposals shine a useful spotlight on the challenges that traditional forms of income support are increasingly facing, and highlight gaps in social provisions that largely depend on income or employment status. Reforms towards more universal income support would need to be introduced in stages, requiring a parallel debate on how to finance a more equal sharing of the benefits of economic growth.