Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
ILO/MOLSS International Forum on Chinese High Skilled Workers Innovative skills policy reforms: Sector-based approaches to skills development A SKILLS-AP Discussion Paper by Dr J. Sung and Prof D. Ashton presented by Trevor Riordan Manager, ILO/SKILLS-AP Introduction and background to the discussion Introduction • Increasing demand globally for higher levels of workforce knowledge and skills, which is driven by many factors: – Need for countries to improve productivity to compete in the global economy – Move to more higher value-added products with higher knowledge component – Changing patterns of work organization – Increasing skills intensification of economies/ jobs – Need to develop higher skilled workers for particular sectors (China) Why knowledge and skills are important One example: Contributions of different factors to economic growth 1.2 Educational attainment 1 Trade exposure 0.8 Variability of inflation 0.6 Investment share 0.4 0.2 Population growth 0 -0.2 Average annual per capita GDP Size of government growth rate (1980-1990) Source: OECD Skill Intensity of the Economy Accelerating in All Sectors 35 1971 1996 Knowledge and Management Occupations as a Share of Total Employment, 1971-96 - Canada 30 (%) 25 20 15 10 5 0 Mining Construction Transportation Trade Finance HRD and competitiveness POST-COMPULSORY SCHOOL AND EQUIVALENT QUALIFICATIONS Qualification profile index 120 100 USA Germany United Kingdom 80 Canada Czech Republic 60 France Norway Switzerland Austria Sweden Finland 40 Australia Greece Ireland 20 Italy Spain Turkey Portugal New Zealand Belgium Regression R2=.50 0 0 20 40 Denmark Netherlands 60 80 Competitiveness index 100 120 Introduction • Many countries are finding it difficult to reform their national skills development system to deal with the challenges of the global economy • Different innovations developed relate closely to social, political and historical context in which they were developed: – English speaking countries focus on outcomes – French speaking countries focus on process – German speaking countries focus on occupations Introduction • Most international approaches to skills development focus on integrated national skills strategies which develop the skills across the total workforce, rather than segments, such as high-skilled workers. This will be a feature of the presentations of the international resource persons • ILO/SKILLS-AP has brought international approaches to skills development from Partner Organizations in Australia, Germany, Republic of Korea and Singapore to this Forum • This presentation will focus on a new trend in skills development being implemented across many advanced countries Sector-based approaches to skills development Sector-based approaches to skills development Background • Many countries exploring new approaches to skills • A demand-led approach to training is currently a top priority in skills policies in many countries • This approach enables the coordinating agency to determine the skill needs within a sector, the kinds and level of training required and how such training should be financed and delivered • This paper examines the lessons learnt from countries which have adopted this approach. What is a sector approach to training? • No precise definition nor single model in the six countries which have declared sector approach as a major workforce development structure: • Australia, Canada, the Netherlands, New Zealand, South Africa and the UK (Singapore now included) • All systems differ in terms of: scope; objectives; funding, working relations with educ/training and qualification authorities; and number of sectors • But all system have two main common features: – Existence of sector-based coordinating bodies – Involvement of industry/employers in these bodies Why use sector-based approaches? • Governments wanting to focus on the development of particular economic sectors which provide the best prospects for increasing international market share, and developing skills for that sector e.g. Singapore in biomedical science • Strengthen emerging sectors that have potential for contributing to future economic growth • Linking skills development to the real economic divisions in the country • As a mechanism to steer employers towards higher value-added forms of productions • Ensuring more effective training delivery Six main features of an effective sector skills approach An effective sector approach: • allows employers to have key role in identifying demand for skills and designing the competencies required: – In the Netherlands, employers determine skills needs and qualifications through “Knowledge Centres” which ensure consistency between work- and centre-based training – In Singapore, government uses major employers as a model to identify skills needs of specific industries – In Hong Kong SAR employers set up and finance bodies to define and deliver the skills (textile & construction) – In UK, some problems emerged with employers involvement as they were only consulted after skills and qualifications were determined by consultants Six main features of an effective sector skills approach An effective sector approach: • secures the involvement of workers – assists in transferability of skills across labour market; in the Netherlands, unions are involved in identifying sector skills needs • maximizes the use of financial incentives – Levy schemes: in South Africa levy used to establish training infrastructure; in Netherlands only small levy (0.5%) used for specific skills projects: in Hong Kong SAR levy confined to 2 sectors; in Singapore only for low skilled workers Six main features of an effective sector skills approach An effective sector approach: • Maximizes the use of financial incentives (cont) – direct government subsidies: UK subsidies trainees wages and shares cost of training with companies; the Netherlands provides tax refund (15%) of trainees wages • Uses government funding of sector skills bodies to ensure that they consider longer term government objectives – Danger that if sector councils are responsive only to employers, longer term objectives may not be considered – In Canada, uses funding to ensure that its views on more general long-term policy are considered; In Singapore, government determines which parts of economy will grow Six main features of an effective sector skills approach An effective sector approach: • Ensures that some of the funds for public training goes through employer-led skills councils – In New Zealand funding is provided to Industry Training Councils on per capita basis; in the Netherlands funds are tied to volume of training provided; in USA, Workforce Investment Act success due to employer involvement; In UK and Australia some difficulties with councils limited control of funding, and less responsive to employers needs • Manages different interests between central government and provinces/states/ regions – Difficult problem for federal systems with differences between federal and state/provincial needs e.g. Canada and Australia Implications for creating a responsive sector system • Ensure that the component parts of the system are aligned to the same objectives • Governments may choose the sectors which relate most closely to national objectives • Ensure that sector councils represent the real divisions in the economy • Ensure clarity in functions of sector councils • Ensure complementarity of research and labour market information between coordinating body and individual sector council • Ensure effective performance monitoring Concluding thoughts • While no national systems can be directly transferred to others, many useful lessons can be learnt from observing other systems • This study has revealed key principles that drive the most effective sector systems • Sector based approaches are proving to be very effective in matching skills needs to national economic development • Many advanced countries using sector based approaches to develop their skills workforce and respond to challenges of globalization