Future Skills Needs – Are You Ready? Trainers Network National Conference, 5 Nov. 2010

1. Future Skills Needs – Are You Ready? Trainers Network National Conference, 5 Nov. 2010 Marie Bourke Head of Secretariat Expert Group on Future Skills Needs

2. Outline of Presentation • Role of the Expert Group on Future Skills Needs • Labour Market Trends (sectors & occupations) • Sectoral studies & future skills • Example of the Green Economy Skills work • The National Skills Strategy & Progress • Future Trends & what training is taking place at FE level • Policy Implications • The Future Challenge

3. EGFSN Mandate Advise Gov. on • Projected skills requirements at national & sectoral levels & make recommendations on how best to address identified needs • Priority education & training requirements • Skill requirements that cannot be met internally that must be met through inward migration • Developments in content & delivery systems that support excellence in education & training quality elsewhere & on adaptations into training provision in Ireland • Recommend how existing systems & delivery mechanisms might be adapted • Convey views/recommendations on programmes supported by the National Training Fund to the Minister • Ensure that recommendations made are assessed by stakeholders & inform on progress made in the implementation of such recommendations

4. Skills Demands • Vacancies declined but still remain - even in recession, demand for recruits in occupations employing large nos. where replacement turnover is ongoing feature (sales assistants, clerical/accounts, security, hairdressing, catering & caring services) • Part-time /temporary positions increasing, Full-time positions decreasing • Competition is increasing • All occupations are becoming more knowledge-based – increasing breath of knowledge, rising technical qualifications, regulatory requirements & ability to continually learn • Requirement for experience is increasing – professional & managerial Skills shortages are confined to areas for people with 3rd level qualification, specific expertise & work experience

5. Labour Market – Broad Trends

6. Sectoral trends

7. Occupational Trends

8. EGFSN Sectoral Reports • Common themes • Demand for High-level Mathematical, Technical & Specialist Skills • Issues around breadth and depth of skills • Low levels of industry-academic collaboration/ interaction • Need for specific modules, eg. lean mfg, Supply Chain Mgt., business acumen • Need for internship / placement opportunities within companies

9. Importance of Science, Technology, Engineering & Mathematics (STEM) • Demand for certain high-skilled &‘experienced’ people even in less buoyant market • Significant future demand for a wide range of STEM occupations – drivers of economic growth • Mathematical skills required in several key occupations & underpin other disciplines such as science, engineering, technology, business & finance – key growth sectors for the future • Engineering skills highlighted by enterprise as a critical issue • Enterprise perspective, ‘education & skills’ is a key part of Ireland's value proposition to overseas MNCs

10. Qualities/Competencies required by enterprise • Specialist/technical skills, with breadth of understanding of others areas – interdisciplinary understanding & ability to work with other disciplines • People-related skills - communication, interpersonal, team working, customer-service • Conceptual & organisational skills - collecting & organising information, problem-solving, planning/organising, learning-to-learn, innovation & creativity, systems thinking • Prepared for Continuing Learning – will have many jobs during working career, may change careers, may occupy a role that doesn’t exist now • Knowledgeable about the significance of Regulation, Governance & business ethics • Flexible, good attitude & aware of workplace expectations & Entrepreneurial

11. Green Economy Future Skills Needs Report – to be published 29 Nov. • 'Smart Green Solutions • Housing • Environment • Transport • Industry • Consumer Products • Bio Diversity • Sustainable development delivering economic, social & environmental benefits Innovative, High-Value Products & Services

12. Key Competency Requirements across the Green Economy Sub-sectors

13. Skills Gaps Examples - Across all Companies • Managers – business development, sales & export marketing skills finance, project management , human resource planning Renewable Energies • Power Engineers – for the development of electricity grid into a ‘smart distribution network’- core engineering skills with a bias towards electrical engineering combined with ICT/business skills Efficient Energy Use & Management • Skilled Workers with system knowledge of types of renewable energy systems – providing advice to households on the optimum system to install and its expected economic payback

14. Recommendations - ‘Green Economy ‘Skills

15. National Skills Strategy (NSS) • The National Skills Strategy sets out a vision of Ireland in 2020 - a well-educated & highly skilled population which contributes to a competitive, innovation-driven, knowledge-based, participative & inclusive economy. • By 2020: • 48% of the labour force should have qualifications at NFQ Levels 6 to 10 (3rd/4th level) • 45% should have qualifications at Levels 4 & 5 (upper secondary); • the remaining 7% will have qualifications at Levels 1 to 3 (lower secondary or below) • Ireland should aim to build capability at fourth level & double its PhD output (Level 10) by 2013

16. Monitoring Progress of National Skills Strategy

17. Labour Market and Educational Attainment

18. Sectoral Forecast Source: Fás/ESRI

19. Occupational Change Source: Fás/ESRI

20. Growth in Export Led Sectors • Software & ICT • Life Sciences – Pharma, Biopharma & medical devices • Cleantech - Construction & Environmental Services & Energy • International Financial Services • Internationally Traded Services – Business Services • Digital Media & Content Industry • Food & Beverages

21. FETAC Award Holders 2007-2009

22. What are people training in? FETAC Awards 2009

23. FETAC Awards by Provider Group

24. Top FETAC Awards 2009 and Orientation

25. Policy Questions/Implications • Need for specific interventions e.g. males in construction - wider offering of traineeships • Right mix of provision re: regulation/health and safety awards vs. enterprise skills needs? Relevance of increases in some existing awards? • Does current demand merit current level of provision for construction awards? • High turnover sectors (retail, hospitality) have increasing skills demands by employers • Higher education • Current skills shortages are for experienced people • EGFSN reports – need for specific modules / structured undergraduate internships

26. OECD – Investing in Human & Social Capital: New Challenges • Skills easiest to teach & to certify are the ones rapidly disappearing from advanced economies. • Increases in demand for tasks requiring complex communication, involving interacting with people to acquire information, explain it or persuade others of its implications for action • Increases in the demand for non-routine analytical skills, involving solving problems for which there are no rule-based solutions requiring individuals to develop skills of problem-solving / inquiry-based learning throughout their education • Skill shortages do not translate efficiently into curricula & learning provision, - because education / training systems lack means to identify,& communicate required skills from those who use them, to the institutions who develop them, or - because they do not have the staff & instructional methods to develop them

27. The Challenge To meet these challenges, countries need to • Develop flexible educational pathways • Promote skill acquisition & equity of access to learning • Anticipate key sectoral trends & the evolution of labour demand • Identify essential skills for growth • Improve the match between skill supply and demand • Develop efficient approaches to the financing of lifelong learning • shift the focus from “life-long employment” to “life-long employability” • learning needed to prepare learners to conquer the unforeseen challenges of tomorrow

28. Thank you! Q&A Expert Group on Future Skills Needs www.skillsireland.com