Bridging the skills gap

by Kathrin Hoeckel
Analyst, Skills Beyond Schools Division, Directorate for Education

If you were to ask someone which countries tend to bear the brunt of a shortage of skills in this era of globalised trade, you couldn't fault them for thinking of developing countries.

While this is certainly true, the problem is by no means limited to poorer countries. Indeed, even in countries at the forefront of the developed world and consistently at the top of the PISA rankings, skills shortages can plague the economy.

Two such countries are Australia and Canada.

The Canadian Council on Learning says there is a clear “gap between the demand for workers with strong literacy and numeracy skills and the supply of Canadians who possess them.” They point out that the growth in the information communication technology industries, coupled with the reduced demand for unskilled workers due to foreign outsourcing, has only served to intensify the need for skilled workers. The question is why there is such a gap when Canadian teenagers do so well on tests such as PISA's. The answer, they posit, lies in the failure of adults to keep up with the “demands of the emerging knowledge society and information economy”. In other words, lifelong learning is as essential to a strong economy as successful schools (as can be seen in the OECD’s Education at a Glance statistics on adult participation in education and learning, job-related training is comparatively low in Canada).

Australian companies are also hard hit by the skills gap. The Australian Institute of Management recently released a study that found 82% of organisations admit to a skills shortage in their workplace, with middle management lacking particularly in leadership and technical skills.

Brian Schmidt, Australia's 2011 Nobel Prize winner for Physics, feels that a key problem is the lack of skilled teachers, particularly in maths and science. He points to the OECD’s Education at a Glance statistics on teacher salaries, which indicates that there tends to be a correlation between well paid teachers and students that excel.

The country's mining industry is suffering, in Mr Schmidt's opinion, from a direct consequence of this. He says that the industry's lack of highly trained engineers threatens the resource boom currently under way in Australia. He relates how the chair of the mining company BHP Billiton told him the biggest problem his company faces is finding highly skilled employees competent in mathematics.

The consequences could be dire for Australia. BHP Billiton predicts that the mining industry alone will require an additional 150 000 workers over the next five years.

Furthermore, Chris Evans, Australia's Minister for Tertiary Education and Skills, estimates that Australia will need over 2 million additional workers by 2015 with higher vocational education and training (VET) qualifications. To meet this challenge, Australia drew up ambitious plans just last year to improve its existing VET system (which, as Learning for Jobs: OECD Reviews of Vocational Education and Training shows, is already quite strong) by investing up to €15 billion by 2020.

In an altogether different region of the world, Latin America, the economic pain from the skills gap – evocatively known in Spanish as “la brecha”, or the breach – is also acutely felt. According to the Inter-American Development Bank (IDB), youth unemployment has increased across Latin America more than any other region in the world, and this can be directly attributed to young people lacking the skills required by the labour market. Not surprising when time and time again the research shows that poor skills go hand in hand with economic hardship.

In a study released earlier this month, the IDB stated that the youth in Latin America have a long way to go in developing the “interpersonal skills the market requires, such as responsibility, communication and creativity”. Its research shows that the majority of young workers across the region have informal jobs and lack social benefits.

One thing that is common to all these countries is that children from disadvantaged socio-economic backgrounds are disadvantaged when it comes to foundation skills in reading, mathematics and science (see OECD’s Education at a Glance statistics on equality in educational outcomes and opportunities). However, countries with the very best scores in PISA tend to have schools that are more inclusive. In other words, students can score well regardless of their socio-economic background. This in turn benefits the economy and society as a whole.

For if knowledge and skills are the global currency of the 21st century, countries will do well to stock up on their reserves. They can do so by encouraging people to learn, enticing skilled people to enter their countries, encouraging people to use and build their skills at work, retaining skilled people, matching skills to demand, and finally increasing the demand for high-level skills. That goes for economic heavyweights and flyweights alike.

Interested in learning more? Watch out for the OECD Skills Strategy, coming in May 2012, where we will lay the land for bridging the skills gap, turning brain drain into brain exchange, coping with ageing societies and declining skills pools and more.

Links:
OECD Skills Strategy
Education at a Glance 2011: OECD Indicators
Programme for International Student Assessment (PISA)

Photo credit: © olly / Shutterstock

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Lessons in learning, amid the rubble

by Barbara Ischinger
Director for Education

A school band played for us. It was the best school band I’ve ever heard—and I’ve heard many. It was the true image of hope, team spirit and positive attitudes. For the students, it was the welcome experience of normality.

A brass band playing in the midst of vast devastation; a landscape that reminded me of street scenes from my childhood in Germany after the war. But this was just one week ago, in Japan, during a visit to the area torn apart by the earthquake and tsunami a year ago today. I went there to participate in the launch of the Japan edition of our Strong Performers, Successful Reformers series and to discuss the OECD’s Tohoku School project with local partners.

This is a project whereby students learn through doing. In this case, they are planning an international event, scheduled to be held in 2014 in Paris, to attract visitors to the devastated Tohoku region of Japan. To do this, they will need to acquire and use very specific skills, but ones that still aren’t commonly taught in classrooms: critical thinking, creativity, teamwork. They will have to think and act like entrepreneurs: create a plan, develop it and see it through.

PISA results show that students who are motivated perform better in school than students who aren’t; and project-based learning is a great motivator. The students participating in this project are given real-life tasks to perform to accomplish their goals and they learn while doing those tasks.

These children are learning these skills in dramatic circumstances; but these are skills that all children, everywhere, need to learn to participate fully in 21st-century societies. Students around the world need the confidence to not just accept what they have seen around them during their childhoods, but to be bold and courageous and try new things, consider professions for themselves that aren’t customary in their families or even in their regions. Every child should have the confidence to think big—have big dreams, big ambitions—and both teachers and parents should help to instil this confidence in their children.

The responsibility for education does not only lie in the hands of government and enterprises, it also lies in the hands of individuals. To be committed to lifelong learning is the solution. We want to plant this seed in the Tohoku School and elsewhere, so that schools teach students the skills they need to become lifelong learners. Indeed, one of the main messages of the OECD’s Skills Strategy, which will be unveiled in May, is that to thrive in the global knowledge-based economy, we all need to become lifelong learners.

The children and teachers I met in the Tohoku region understand the value of learning. I found evidence of that in an unlikely place: a non-descript building next to a temple that had been claimed by an enterprising local NGO as a study room. The room seemed to absorb the temple’s spiritual atmosphere and comforting silence. It is where displaced students could go to prepare for their school entrance exams. These students are living with their families in one-room temporary housing; were it not for this space, they would have had no other quiet place in which they could concentrate on their studies. The teachers there were coaching the students, mentoring them. You see small gestures like this and you feel that something is coming back: flowers are blooming, spring is unfolding.

Links:

OECD-Tohoku School

Strong Performers and Successful Reformers in Education - Lessons from PISA for Japan

Video series: Strong Performers and Successful Reformers in Education
Photo: Japanese cherry - sakura flowers. Petals of cherry blossoms on the water surface as a sign of sorrow and sympathy to the Japan after by floods and earthquakes. 
Photo credit: Repina Valeriya / Shutterstock

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Increasing higher education access: one goal, many approaches

by J.D. LaRock
Senior Analyst, Innovation and Measuring Progress Division, Directorate for Education

Few would dispute that having a higher education is more important than ever to help people build positive economic futures and strengthen the knowledge economies of countries. Yet as the second issue of the OECD’s new brief series Education Indicators in Focus explains, OECD countries have adopted dramatically different strategies for increasing higher education access – both in terms of how higher education is financed, and in the level of financial support they provide to individuals seeking a degree.

For example, in countries with more progressive tax structures, such as Denmark, Finland, Iceland, Norway and Sweden, students pay low or no tuition fees and have access to generous public subsidies for higher education. Tuition fees are much higher in Australia, Canada, New Zealand, the Netherlands and the United States, but students in these countries also have access to significant financial support.

Before recent reforms in Japan and in Korea, students paid comparatively high tuition fees, but had relatively low access to public subsidies. Meanwhile, in Austria, Belgium, the Czech Republic, France, Ireland, Italy, Portugal, Switzerland, Spain and Mexico, students pay little or nothing for higher education, but have limited access to financial aid.

At a time when most OECD countries are experiencing surges in higher education enrolments – but also face significant budget constraints – which model stands a better chance of promoting higher education access and positive outcomes for students in the most equitable way? As it turns out, there’s something to be learned from several of them.

As detailed in the OECD’s thematic review of higher education, charging a moderate level of tuition fees – while simultaneously giving students opportunities to benefit from comprehensive financial aid systems – is an effective way for countries to increase access to higher education, stretch limited public funds, and promote equity by acknowledging the significant private returns that students receive from higher education.

In particular, access to robust financial aid seems to be the key.  For example, countries with especially well-developed student support systems – like Australia, New Zealand, the United Kingdom and the United States – all have above-average university entry rates, even though they also have comparatively high tuition fees.

At the same time, the type of financial aid countries offer is also critical. The OECD’s review suggests that financial aid systems that couple means-tested grants and loans that have income-contingent repayments not only promote access and equity at the front end of higher education, but also lead to better outcomes for students at the back end. Australia and New Zealand have used this approach to mitigate the impact of high tuition fees, encourage disadvantaged students to enter higher education, and reduce the risks of high student loan indebtedness. Other OECD countries that use this strategy include Chile, the Netherlands, the United Kingdom, and the United States.

Increasingly, countries are adjusting their higher education financing and support systems in other ways as well. For example, more countries have raised tuition fees for international students in recent years, in part to shore up the finances of their higher education systems. At least 14 OECD member and partner countries differentiate tuition fees among fields of study to account for the higher cost of operating some academic programmes.  Some countries like Australia have even attempted to link higher education charges to labour-market opportunities by lowering tuition fees for fields with skills shortages.

In an era of booming enrolments and tightening belts, it won’t be surprising if still more changes are on the horizon.

For more information
On this topic, visit:
Education Indicators in Focus
On the OECD’s education indicators, visit:
Education at a Glance 2011: OECD Indicators  www.oecd.org/edu/eag2011
On the OECD’s Indicators of Education Systems (INES) programme, visit:
INES Programme overview brochure

Related blog post:
Higher education: an insurance policy against global downturns

Chart excludes OECD countries for which specific data on public subsidies is not available.
Source: Education at a Glance 2011: OECD Indicators, Indicator B5 (www.oecd.org/edu/eag2011).

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Starting Strong: The people helping to raise young children

by Kelly Makowiecki
Assistant to the Early Childhood Education and Care Project, Directorate for Education

For my generation, the concept of a stay-at-home parent seems like something of the past. And even if you want to stay home for the first few years of your child’s life, who can afford not to work these days? So what are kids up to during those precious, formative early years after their parents go back to work and before compulsory school begins around age 5 or 6? At some point, a lot of them enter into a formal education or care setting and are the responsibility of someone other than their family.

Who are the people we turn to for help in the immensely important role of raising our young children? And can we value them as much as we depend on them?

That’s difficult to judge when, for starters, the early childhood education and care (ECEC) workforce consists of a wide variety of actors with an equally wide range of qualifications.  Those working as preschool/kindergarten teachers tend to have higher qualification requirements than those working in child care centres or family day care: the former usually need a university degree, while the latter sometimes only need to complete compulsory education. But in countries like Japan and Portugal, the same university-level qualification is required for both job types.

Maybe they’ve completed a 4-year teacher training programme or have a vocational degree in child care. Maybe they have prior learning or work experience that was converted into credits towards an ECEC certification, which is popular in countries like the Netherlands and New Zealand. No matter the pathway taken into the profession, professionals need to be equipped with the knowledge and skills that enable them to foster a high-quality pedagogic environment conducive to favourable cognitive and social outcomes for children.

So perhaps more important than the qualification level itself is the content of the training required to obtain the qualification. When entrusting a child with a childcare professional, we expect them to know about how children develop and learn. We want them to be trained in nurturing children’s perspectives and responding to their needs. Such skills ensure that kids are provided with the strong start they deserve.

Thanks to a growing body of research, the importance of high-quality ECEC is increasingly apparent. Academic institutions all over the world have or are developing programmes of study in this field. Governments are investing in recruiting better trained staff and undertaking campaigns to raise the profile of the profession. Employers are encouraging their staff to pursue ongoing training to fill in knowledge gaps and maintain their professional quality.

Are these endeavours cheap? No. Are they worth it? Yes. The ECEC workforce is on the front line of helping to ensure that young children develop the skills they need to be successful in compulsory school and beyond. School failure and its social costs later in life can be far more expensive.

The OECD has been reviewing ECEC for well over a decade; and it is no wonder that improving workforce qualifications, training and working conditions has emerged as a policy priority across countries. To learn more, check out Starting Strong III: A quality toolbox for early childhood education and care, a new OECD publication to be launched at a Roundtable in Oslo, Norway on 23-24 January 2012.

Links:
For more information about OECD’s work on early childhood education and care (ECEC): www.oecd.org/edu/earlychildhood
Online quality toolbox for early childhood education and care: www.oecd.org/edu/earlychildhood/toolbox
Investing in high-quality early childhood education and care (ECEC) (PDF 1.79 MB)
OECD-Norway High-level Roundtable: Starting Strong: Implementing Policies for High Quality Early Childhood Education and Care (ECEC)

Related blog posts:
Starting Strong: what should children learn?
Early childhood education: an international development issue

Photo credit: Microsoft

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Starting Strong: what should children learn?

by Matias Egeland
Consultant, OECD Directorate for Education

In Norway, where I’m from, we believe children have the right to progress at their own speed, and enjoy a childhood of pleasure and freedom. The fundamental idea, shared by several Nordic countries, is that childhood is the time to have fun, as opposed to being in school (or anything resembling school for that matter). Admittedly, this sounds very nice, if not a bit idealistic.

While it is important for children to be just children, the early years are also especially formative and important for children to develop skills and competencies . The importance and value of good quality care and education for children is becoming increasingly clear, and have shown to impact things as diverse as creativity and life-time earnings.

As the early years represent a crucial chance to shape and impact children and their future development, the key question is which traits and abilities do we want children to acquire and harness?

The curricula that shape and guide early childhood programmes have traditionally been divided between those seen to focus on “academic” learning in specific subject areas, and those seeking a “comprehensive” approach more focused on children’s social development. The Nordic take on child care has tended towards that of the “comprehensive” approach.

The countries that tend to favour an “academic” approach usually see the child as  a young person to be formed, the child presenting an investment for society. They try to centre curricula on what is considered “useful” learning. However, what actually is “useful” for children to learn should be given some thought.

The “soft” skills favoured in a “comprehensive” approach such as self-confidence, creativity, independence and initiative are useful beyond giving children a happy childhood. Indeed, these personality traits are important for making children capable life-long learners. Initial knowledge of geography is likely not as important as confidence and willingness to learn for later academic success. For example self-control and attentional control are found to be a stronger predictor for school readiness than IQ and entry level reading or math. Moreover, these traits are proving increasingly important for later labour market success.

Soft skills that can be fostered in the early years are not just useful, they are also important from an equity perspective. They can play a key role in evening out the gap between children who are less likely to develop confidence and emotional control in their home setting. A US study showed that children from professional families experience around six positive verbal interactions (affirmations or encouragements) for each negative one (prohibitions, being told off, etc.). In contrast children in families on welfare experience two negative interactions for each positive one. Furthermore, as the Economist put it in a recent article: “the qualities that employers in the service sector want are those the middle classes acquire at home: articulacy, confidence and smartness”.

Confidence and emotional control do not develop automatically, but can be facilitated by skilled professionals by focusing on children’s perspectives and through active use of play . What goes into the curricula that guide what children learn and do in a care or education setting is of great importance. The new OECD publication “Starting Strong III: A Quality Toolbox for Early Childhood Education and Care” states clearly that curriculum matters and lessons from the Nordic, and other, countries  suggest that focusing on the “child” and effectively using  play as a learning strategy can  benefit children's development. 

Starting Strong III will be launched in Oslo on January 24th. Having invested hugely in child care, revamped their curriculum and reformed their kindergarten staff education, the Norwegian minister of Education, Kristin Halvorsen, is hosting an OECD Roundtable on Early Childhood Education and Care. Ministers, policy-makers and stakeholders from across the world are coming together to address the challenges in achieving high-quality child care and education.


Links:
For more information about OECD’s work on early childhood education and care (ECEC): www.oecd.org/edu/earlychildhood
Investing in high-quality early childhood education and care (ECEC) (PDF 1.79 MB)
OECD-Norway High-level Roundtable: Starting Strong: Implementing Policies for High Quality Early Childhood Education and Care (ECEC)

Photo credit: iStockphoto, Microsoft Partner

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Education does not equal skills

by Julie Harris
Consultant, OECD Department of Education

Mapping skills at the European Youth Forum

I went back 25 years in time yesterday, as I sat with participants at the European Youth Forum, all young, vibrant, educated and driven. I felt as if I were at university with my daughter and 100 of her friends. We discussed the future, skills, and in particular, the skills mismatch, described by Andreas Schleicher as “a lot of unemployed graduates plus a lot of employers looking for skilled workers”.

At the eve of my own career 25 years ago, my current profession did not exist. The Internet did not exist. There were fewer graduates and fewer employers looking for skilled employees. Did we worry about getting jobs? Probably, but back then a degree was the passkey.

Today, as my daughter graduates from college in 2013, the debate for her as well as for the 120 participants we worked with today, centred around jobs, skills and education. Just what is the link? Does a degree guarantee a job? Less and less so. Does work experience play a role? Yes, but the youth in my breakout group felt that unpaid internships amounted to exploitation and rarely provided the learning originally intended. What about the “soft” skills that so many students report are not developed in traditional school settings: clear communication skills, emotional intelligence, problem-solving, collaboration, curiosity, critical thinking and technological skills? How do individuals best acquire these skills – which mean more to long-term professional success than purely occupational skills do – and what do we need to do as a society to develop, value and encourage such skill development?

As Andreas Schleicher pointed out in his introduction to yesterday’s session, we need to build strong generic skills (skills that cross contexts, such as reading, writing, problem-solving, communication and collaboration), better utilise talent pools and skill for future jobs.

So how do we go about that?

Some of the ideas participants in the session came up with were:

1. Link studies to labour market demand. Should governments regulate entry into study programmes, for example when there is a skills surplus and a jobs deficit?
2. Improve career counselling to students and involve parents. Help students and parents know what the jobs of the future will be, where some of the shortages may lie and what skills will best help them succeed.
3. Provide internships/work experience opportunities on a parallel track along with university studies (as in the United States and France).
4. Put more professional, practical skills training into university education. 
5. Encourage entrepreneurship and innovation among youth: communicate that small-business owners are important actors in society and that there is room for thinking outside the box, across disciplines and beyond borders.
6. Build skills locally (rather than outsourcing to cheaper providers).
7. Keep in mind that skills mismatch can begin at school – tracking can lead to rigidity and close down broader skills development. 

In sum, and as one participant put it, skills is a complex issue. It is more than the ability to “do something” and bigger, much bigger than education alone. Education, both formal and informal, at school and in the workplace, gleaned young and old, is a vital piece of the skills puzzle, but education alone does not skills make.

Learn more:
European Youth Forum: Youth Employment: A Call for Change
OECD Skills Strategy
Participate in the 2012 OECD Global Youth Video Competition

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