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Meeting the Growing Demand for Skilled Labor. Jan Rutkowski World Bank Sarajevo October 27-28. World Bank work on skills and jobs. Main Messages. The shift in labor demand: from less to more skilled jobs

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meeting the growing demand for skilled labor

Meeting the Growing Demand for Skilled Labor

Jan Rutkowski

World Bank

Sarajevo

October 27-28

main messages
Main Messages
  • The shift in labor demand: from less to more skilled jobs
  • Industrial restructuring is an important source of a skills mismatch in transition economies
  • Hard skills are not enough: soft skills play a critical role
  • Skills mismatch may become an obstacle to modernization and growth of transition economies
  • Skills ≠ diplomas  need to develop better measures of skills supply and demand
outline
Outline
  • World Bank studies on labor market skills in Europe and Central Asia
    • Regional report
    • Country studies
    • Planned surveys of skills supply and demand
  • Main findings of country studies
    • FYR Macedonia
    • Croatia
    • Poland
  • Policy response to the skills gap
regional report skills not just diplomas
Regional report: Skills, not just diplomas
  • Demand for skills in ECA
  • Education and the supply of skills to the ECA market
  • Resolving the skills shortage in the ECA region: A policy framework
  • Managing for results at the pre-university level of education
  • Managing for results in the tertiary education sector
  • Advancing adult learning in ECA
recent country studies
Recent country studies
  • Ukraine labor demand study (2009)
  • Croatia: Reaching and sustaining higher rates of economic growth (2009)
  • Are Skills Constraining Growth in Bosnia and Herzegovina (2009)
  • Demand for skills in FYR Macedonia (2010)
  • Fuelling growth and competitiveness in Poland through employment, skills and innovation (2011)
skills measurement project
Skills measurement project

World-wide project on the supply of and demand for skills

  • Household based standardized survey of the supply of skills
  • Employer based standardized survey of the demand for skills
  • WB countries to be covered: Macedonia and Serbia
enterprise restructuring gives rise to a skills mismatch newly jobs differ from old jobs macedonia
Enterprise restructuring gives rise to a skills mismatch: newly jobs differ from old jobs (Macedonia)
skills mismatch has many dimensions
Skills mismatch has many dimensions
  • Between occupational groups
    • Too many social scientists, too few engineers
    • Too many clerks, too few nurses and electricians
  • Within occupational group (skills gap)
    • Inadequate technical (job specific) skills
    • Inadequate cognitive skills
    • Inadequate behavioral & social (soft) skills
    • Too much theoretical knowledge, too little practical skills
no direct single measure of the skills mismatch
No direct & single measure of the skills mismatch
  • Only proxies for skills: education, occupation
  • But skills ≠diplomas, educated ≠ skilled
  • Labor market indicators
    • Unemployment rate: excess supply
    • Vacancy rate: unmet demand
    • U/V ratio (by education, occupation)
  • Employer surveys
  • Tracer surveys of graduates
    • Poland: obligatory for tertiary education institutions
the challenge of closing the skills gap
The challenge of closing the skills gap
  • Educational system more responsive to the changing labor market needs
    • Broad and transferable skills to prepare workers for the world of growing job and occupational mobility
    • Interactions with employers
    • Life long learning
  • More emphasis on development of soft skills
    • Work attitudes and behavioral skills as important for employability as hard technical skills
    • Educational system focuses on equipping students with cognitive & technical skills rather than soft skills
    • Closing the skills gap will require reorientation of educational and training policy
  • Good and accessible labor market information to guide career choices
    • As opposed to manpower planning
  • Better information on skills supply and demand
    • Employer surveys, tracer surveys of graduates, survey of skills