COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels 7.2.2001SEC (2001) 222

COMMISSION STAFF WORKING DOCUMENT

Benchmarking Report following-up the"Strategies for jobs in the Information Society"

[with the support of the High Level Group"Employment and Social Dimension of the Information Society" (ESDIS)]

2

1. INTRODUCTION

The Commission's Communication on "Strategies for Jobs in the InformationSociety"1 built on experience of Member States and set out the key areas of progressto seize the job opportunities and to enhance the living and working conditions for allcitizens in the Information Society.

It served as an important input to the Lisbon European Council which in March 2000set the strategic goal for Europe to becomethe most competitive and dynamicknowledge-based economy in the world capable of sustainable economic growth withmore and better jobs and greater social cohesion.

As a response to Lisbon, the European Employment Strategy further reinforced itsfocus on life-long learning and quality jobs in the knowledge-based economy. Thisapproach is supported by theeEurope Action Plan, the European Union's roadmap tothe Information Society by 2002, with one of its three key objectives focusing oninvesting in people and skills. The European Commission has also launched the"eLearning: Designing Tomorrow's Education" initiative in May 2000 in order tospeed up changes in the education and training systems for Europe's move to aknowledge-based society.

The aim of this report is to provide up-dated findings on the impact of the InformationSociety on jobs, and to track progress in response to the recommendations of the"Strategies". This report also contributes to some of the mandates of ESDIS under theeEurope Action Plan to follow-up its Action lines "Working" and "Participation for allin the knowledge-based economy".

The Member States have submitted data and supported this benchmarking particularlythrough the High Level Group "Employment and Social Dimension of theInformation Society"(ESDIS). In addition, a specific Eurobarometer survey on "ICTand working" (results November 2000) have been used.

This report presents the situation at the moment of its production in January 2001. Toreflect the dynamic progress in this area, data of this report will be up-dated and canbe consulted at the ESDIS-Website2.

1 COM (2000) 48 final of 4 February 2000 [abbreviated in the following as "Strategies"]2 http://europa.eu.int/comm/employment_social/soc-dial/info_soc/esdis/index.htm

3

2. KEY MESSAGES

The dataconfirms that the "Strategies for Jobs in the Information Society"addressed the most pressing issuesfor ensuring that citizens benefit from theemployment and social opportunities of the knowledge-based economy, and confirmsthe urgency of the actions identified.

… the impact of ICT on jobs is already higher than expected …

The "Strategies" predicted that Information andCommunication Technologies (ICT) would beaffecting jobs across all sectors. This is true and iseven faster than expected…. Already45 % ofworkers use a computer for their work

… but employers are not training their workforce …

Workers with ICT trainingpaid by the employer

16,7%Despite the high level of usage of computers forwork, training is not being provided by employers. Infact, most workers have to learn how to use acomputer on their own!

… telework is expanding and improves both productivity and quality of work…

The number of workers benefiting fromtelework is rapidly increasing. 13 % ofcomputer users now telework. Moremen thanwomenhave the opportunity to use it, andtelework is most widespread amongmanagers(19 % of users).

Using a computer for work

45%

Diffusion of telework

14,010,4

12,5

Men Women Total

(% of working computer users)

4

3. BENCHMARKING THE STRATEGIES

The "Strategies" set out specific recommendations to Member States, Social Partners,and businesses on learning, working, public services and the enterprise in theInformation Society. This report tracks a baseline for benchmarking progress.

3.1. Learning in the Information Society

The labour market supply of Information Society (IS) competence depends both onpreparing the youth and on life-long learning for the existing workforce. Thus, a keymessage from Lisbon is to adapt education and training to the needs of theknowledge-based economy. In response, and drawing on the "Strategies", theEmployment Guidelines 2001have already been adjusted:− Guideline 5 calls for developingeLearningfor all citizens with specific IS targets

for schools.− Guideline 15 further specifies the objective of ensuring IS literacy for all workers

(see section 3.2.).

… hardware and connectivity is quickly expanding at schools …

By the end of 2001, all schools must have access to the Internet and multimedia-resources. Member States are quickly approaching this target, with some alreadythere.3

3 This is a dramatically changing situation – up-dates are reported at the ESDIS web-site:http://europa.eu.int/comm/employment_social/soc-dial/info_soc/esdis/index.htm

S c h o o ls lin k e d to In te rn e t

70

56

1

80

30

75

25

38

63

42

90

57

8681

95

8490

10 0

86

10 0 99 9 89 4

80

1 009 5

95

18

9 0

1 00

B D K D E L E F IR L I LU X N L A P F IN S U K

P rim a ry S e c o n d a ry

S ou rc e: M in is trie s for E d uc a tion

(b eg in n ing o f a ca de m ic ye ar 19 99 -20 00 )

5

… but efforts need to be accelerated to ensure integration in learning process …

The number of PCsper pupil is too lowto allow sufficientintegration into thelearning process

N um ber of pupils p er PC

1116

30

17

6

65

910

16 1318

38

2530

18

35

14 139 10 7 5

1815 11 13

B D K E L E F IR L I L NL A P F IN S UK

P rim a ryS ec ondary

S ou rc e : E S D IS J an .200 1

A precondition for using IS toolsand contents in education is thedigital literacy of teachers. Bigefforts are still needed toachieve the target that allteachers should be skilled in theuse of these technologies by theend of 2002.

To further support progress, the Commission has recently launched the "eLearning:Designing Tomorrow's Education" initiative4. This major initiative seeks to mobilisethe educational and cultural communities, as well as the economic and social playersin Europe, in order to speed up changes in the education and training systems forEurope's move to a knowledge-based society. The Member States of the EuropeanUnion have decided to work together to harmonise their policies in the field ofeducational technology and share their experience. eLearning aims to support andcoordinate their efforts and to accelerate the adaptation of education and trainingsystems in Europe.eLearning is focusing on four areas:

• Improving ICT infrastructures in the education and training domains;• Increasing training at all levels, fostering digital literacy for all and contributing

to reduce the ICT skills gap;• development of European educational multimedia content and services,• promoting innovation at large scale and networking existing initiatives at all

levels.While most mobilised resources will be national, they are also supported byCommunity instruments: the Structural Funds; the education, training and youthprogrammes for innovative actions and exchange of good practice; the researchprogrammes, notably the Information Society Technologies (IST) programme; theEuropean Investment Bank and the development of partnerships between publicauthorities and industry.

4 COM(2000)318 final of 24 May 2000; http://europa.eu.int/comm/education/elearning/index.html

Teachers with IS literacy (% )

50

6

58 5563

54 54

7175

DK EL E F IRL I A FIN UKSource: ESDIS, Jan.2001

6

3.2. Working in the Information Society

3.2.1. All workers need digital literacy

The key message of the "Strategies" was thatall jobs have to adapt to theInformation Society.

Guideline 15 of the Employment Guidelines 2001invites the Social Partners, at allrelevant levels, to conclude agreements, where appropriate, on lifelong learning tofacilitate adaptability and innovation, particularly in the field of ICT. In this context,the conditions for giving every worker the opportunity to achieve IS literacyby 2003should be established.

… the impact of ICT on jobs is already stronger than expected …

The urgency of this objective isconfirmed by recent surveys. Thereal pace of ICT penetration in jobsacross all sectors is even faster thanpredicted last year. Currently,45 %of all workers and 73,5 % of whitecollar workers are already using acomputerfor their work , either atthe workplace and/or at home.

The growth of Internetpenetration (35 % of all workers)signals an increasing readinessfor e-commerce.

Use of computer for work

45,040,5

20,3

either at workplaceor at home

at work at home for work

(% of European working population)

Source: Eurobarometer, Nov.2000

Use of PC and Internet penetration byoccupation (%)

41,5

68,8

45,6

21,8

79,8

61,4

19,830,6

Self-employed Managers Other whitecollar workers

Manual workers

PCInternet

Source: Eurobarometer, Nov.2000

7

However, there is a marked divide across Member States – showing that theworkforce in some Member States could be at risk of being left behind.

Use of com puter for work

49,5

67,3

46,0

25,332,9

40,8 38,7 41,9

53,4

67,5

42,5

30,7

56,9

74,3

51,445,0

B DK D EL E F IRL I L NL A P FIN S UK EUSource: Eurobarom eter, Nov. 2000

(% of working population/Member State)

… job is most important reason for learning basic ICT skills …

To do, get,keep, orimprove a jobis by far themostimportantreason tolearn to use acomputer.

… but there is an enormous lack of training …

In sharp contrast to the high number of workers using computers, the proportionreceiving training from employers is disappointingly low. In fact,most workers haveto learn how to use a computer on their own.

R e a s o n s fo r le a rn in g to u s e th e c o m p u te r(% o f E U c o m p u te r u s e rs , m u lt ip le an s w e rs )

7,7

12,3

12,4

58,1

1 9 , 2

6 7 ,6

2 4

2 0 ,8

0 2 0 4 0 6 0 8 0

s e a rc h fo r e d u c a t ion a l m a te ria l

e -m a il (fa m ily , frie n d s )

fo r in fo rm a t io n via In te rn e t

to g e t a p ro m o t io n in jo b

to k e e p a jo b

to g e t a jo b

to d o jo b

F o r Jo b

S o u rc e : E u ro b a ro m e te r, N o v . 2 0 0 0

Locations for learning to use the computer(% of EU computer users, multiple answers)

3024,1

31,328,3

45,4

2214,5

39,5

50,2

At home onyour own

men women At work (onyour own

/assisted bycolleagues)

men women At school In a trainingcourse

At a friend'splac e

Sourc e: Eurobarometer, Nov.,2000.

8

Only 22 % of workers ever hadcomputer training for their job.Only16 % of the workforce had atrainingpaid by the employer.

The need for a commitment to training in digital competence is even more urgent andbroader than predicted. This reinforces the emphasis the European EmploymentStrategy puts on the important role of Social Partners and private enterprises to ensurelife-long learning in IS literacy.

By contrast, publicadministrations can betaken as a model – fortheir high standards ofemployee training

… approaching a European diploma in basic Information Society skills …

The "Strategies" argued that a European diploma in basic digital skills wouldstimulate up-take of certified training and its recognition across Europe. The eEuropeAction Plan took-up the recommendation of ESDIS to identify a European diploma inbasic digital skills and set a target for its establishment of 2001.

Computer training22,8

16,7 15,9 14,7

ever hadcomputertraining

paid by theemployer

during workinghours

at theworkplace

Source: Eurobarometer, Nov. 2000

(% of European working population)

Central Administration workers trained in ICTs

29

9080

23

8066

38

100 100

82

B DK EL E IRL I L NL A SSource: ESDIS, Jan.2001

( % )

9

To meet this objective, the vastmajority of Member States arepromoting the EuropeanComputer Driving Licence(ECDL)5.The strong growth ofECDL "skill cards" ( the basis ofthe ECDL certification scheme)issued across Europe to dateconfirms its increasing attractionfor users.

3.2.2. Jobs are growing … but there could be more

The increasing skills gap is abarrier for the development of European ICT sectors inthe short term, of e-business and, as a consequence,productivity and job growth inthe wider economyin the long run.

… growth not just in ICT, but in associated industries "up and down stream" …

Thespill-over of job creation is impressively evident, for example, in the case of thepackaged software industry.

5 see "Bilan des actions menées par la Présidence pour la mise en oeuvre du Plan d'action eEurope– Contributions des Etats membres", p. 47-48:http://www.presidence-Europe.fr/pfue/dossiers/01787/01787-fr.pdf

ECDL cumulative skill cards issued

600.000

700.000

800.000

900.000

1.000.000

1.100.000

Mar. June Sept Dec.

(year 2000)

Source: ECDL Foundation, Jan. 2001

012345678910

1995 1996 1997 1998 1999

Source: EuropeanCommission,basedonEurostat figures

GrowthrateISsectors*

Growthrateall sectors

Growthrateknowledgeintensiveservices

JobgrowthintheKnowledgeeconomy (cumulativegrowthrate)

* ISsector includes ITmanufacturing, high-techsectors, knowledge intensiveservices (e.g. communicationservices, software, business services,financing, community, social andpersonal services)

10

According to recent analysis fromDatamonitor, each job in thisindustry creates nearly four jobsin the wider European economy,both 'upstream' (at its suppliers)and 'downstream' (serviceindustries that rely on packagedsoftware to conduct theirbusiness), with 50% growth overfour years.

0

200

400

600

800

1000

1200

1400

1600

1999 2000 2001 2002 2003Source: Datamonitor 2000

Num

ber

ofw

orke

rs(0

00s)

Downstream employmentDirect EmploymentUpstream employment

Total employment due to packaged software willgrow by 52% between 1999 and 2003

…however job growth has not been maximised because of insufficient skills ..

The spill-over of employment opportunities due to ICT is spread throughout theeconomy, across a range of sectors, occupations and skill-levels. To realise this jobpotential of the knowledge-based economy demandsa wide-range of skills, includingbasic ICT skills and their adaptation to business (as set-out in section 3.2.1). In thisrespect, the conversion of skills through life-long learning is essential, particularly up-grading the competence of low-skilled people to adapt them to the job opportunities ofthe knowledge-based economy. Confronted with the present trend of an ageingpopulation, continuous up-dating of skills is also needed to off-set the decreasingnumber of young educated entrants to the labour market.Thus, it is not only the shortage at the level of ICT experts which is limiting,though it is very important.

According to a widelyquoted industry study, theoverall demand for ITexpert skills in Europe isexpected to grow from 10million to 13 million.However, supply is notmatching this demand withthe risk that up to 1.7million equivalent jobs willbe unfilled.

0

2

4

6

8

10

12

14

1999 2000 2001 2002 2003

Year

ITex

pert

s(m

illio

ns)

Dem and Supply Shortage

Source: IDC, 2000

IT skills in Western Europe: demand and supply

11

The increased demandfor experts ishighest forskills supporting ICTadoption by the widereconomy - like softwareapplications,Internetworking andskills combiningtechnology with businessknowledge to optimisebusiness processesthrough IT.

There are two levels of skill shortages: ICT technicians and ICT professionals (with adegree at university level). Higher levels of investment in human capital are needednow as there is a lead time to deliver the necessary expertise.

… Skills gap: different levels …

Skill typeEstimatedshortages

Actors InvolvedTime scale to

react

ICT Technician 600,000 – 1 millionBoth sides of industry;

education and training institutions;professional bodies; public authorities.

6 months to 1 year(Short to Medium)

ICT Professional 300,000 - 500,000Training institutions;

higher education bodies;professional bodies; public authorities.

5+ years(Medium to Long)

… Faster reaction to technical skill shortages (2nd level) …

The demand for technicians isgenerally higher than for professionals. And as thetraining needed is shorter, a conversion of skills is easier, and thusa reduction of thegap can be faster. In this respect, businessesthemselves can contribute a large partof training needs. Thus, the "Strategies " called for the promotion of business drivenIS courses at 2nd (technical) level and the recognition and support to participants ofindustry certified training schemes.

0

1

2

3

4

5

6

7

1999 2000 2001 2002 2003 Year

ITpr

ofes

sion

als

(mill

ions

)

Source: IDC,2000

Application

Breakdown ofskills demand inWestern Europe

Distributed

Internetwork ingNeutral

Host based

LegendApplication: skills in softwareapplications, also includingmulti-user ones (e.g. SAP)Distributed: skills in ITenvironments, client/servertechnology (e.g. Windows NT,Unix)Internetworking: skills in ICTsto underpin businessprocesses through InternetNeutral: skills to combinetechnical with businessknowledge, to optimiseprocesses through ITHost based: skills centredaround mainframe technology(e.g. IBM's MVS)

12

Member States are taking initiatives using all educational possibilities as set out inthe following:

ICT training places at 2nd level

Country No. ofplaces

Notes

D 53.000 ICT and media training places

EL 28.600

E 86.184 refers to 2nd level (conversion) training in ICT subjects for 35.621 employed and 50.563unemployed (of which 40,8 % women);

F 75.000 the figure relates only to apprentices trained in centres of the chambers of commerce

IRL 7.495 specific ICT training; training including some ICT elements involved 59.992 more people

FIN 12.831the reported number refers only to students at Polytechnics (which are at a higher level thanvocational training institutions and should thus be rather considered as 3rd level); femaleparticipation 22 %

S 32.350

Source: ESDIS, Jan.2001

… up-take in the training of professionals …

The EU has alower share ofgraduates inscience andtechnologythan the US.Here again,however, theperformancevaries stronglyamongMemberStates, with thetop countriesat world level.

Intensity of graduate output 1997 (%)

10,6

8,37,1 6,7

8,1

4,15

9,28,4

11

2,1

4,3 4,2

1,22,4

1,3 1,4

5,34,5

3,14,1

3,2

14,213,7

11,9 12,3

3,14,1

6,2

2,6 3,2 2,93,1

0

4

8

12

16

B DK D EL E F IRL I NL A P FIN S UK EU US JPSource: Eurostat/OECD/Unesco

Total graduates as a percentage of 20-24 year old people

Total graduates in S&T as a percentage of 20-24 year old people

13

0 ,6 7

3 ,1 1

1 ,0 21 ,0 7 1 ,0 3

1 ,7 8

3,2 6

2 ,0 8

4 ,5 4

0

1

2

3

4

5

D K D E L E F IR L F IN S U KS ou rc e : E S D IS , J a n. 20 01

IC T re la te d tra in in g p la c e s a t 3 rd le ve lp e r 1 0 0 0 inh a b ita n ts

Against this background, the"Strategies" called for anincrease in capacity anduptake of 3rd level(university) IS education,maintaining gender balanceand matching industryrequirements.

To facilitate this match, a consortium of leading European companies in this sector,supported by the European Commission, identified thirteen job profiles:

• Software architecture and design;• Digital design;• Systems specialist;• Digital signal processing;• Communications network design;• Multimedia design;• Software and applications development

• Radio frequency engineering;• Data communication engineering;• IT business consultancy;• Technical support;• Product design;• Integration and test engineering.

Source: http://www.career-space.com/job_careers/index.htm

… women equally use computers at work, but are behind in IS expert jobs …

Women and men have about the same share of computer usage at work (contrastingthe gap in Internet penetration in the entire population – see section 3.3.). There isalso no significant evidence for gender specific differences as concerns the usage ofvarious forms of basic applications and related computer training.

However, the picture is very different at higher levels of IS training. The proportion ofwomen in ICT related 3rd level training is low. Still, it is 26 % in Denmark, 18 % inFinland, and 25,5 % in the UK.

6.800

122.364

60.200

26.846

88.309

9.200

105.300

12.05711.000 23.623

4.3652.8600

30.000

60.000

90.000

120.000

150.000

DK D EL E* F IRL FIN S UK

total number

women in ICT related 3rdlevel training

Source: ESDIS, Jan. 2001

ICT related training places at 3rd level

E* : 53.507 in 5 year studies, 68.858 in 3 year studies

14

3.2.3. Changes in organisation of work

…positive impact on productivity and quality of work…

The overwhelming majority of users indicate that their work has benefited fromcomputers, e-mail and the Internet. They stress an increase in individual productivityand higher job quality, notably in terms of increased skills, contacts outside andwithin the company, more responsibilities and reconciliation of work with private life.

… technologies have to be supported by organisational change …

These effects of ICT on work highlight the key role of work organisation. Studieshave indicated that only a tenth of all Information Society investment of business is inICT (hardware and software), while 90 %, the vast majority, is in human resources,notably training, and changes in the organisation of work.

Real productivity gains can only be achieved when work organisation processes havebeen adjusted to take account of the higher level of skill and the greater flexibilitymade possible by the technologies. This is the most important element in terms ofproductivity gain. This is the area in which the labour market institutions, particularlysocial partners, have the greatest impact.

Thus, the key role of work organisation is stressed in the Employment Guidelines2001. Guideline 13 invites the social partners to negotiate and implement at allappropriate levels agreements to modernise the organisation of work, includingflexible working arrangements. Subjects to be covered may, for example, include theintroduction of new technologies, and new forms of work (e.g. telework).

… telework is progressing and promising ...

The number of workers benefiting from telework6 is rapidly increasing.13 % ofcomputer users, or 5.6% of all workerstelework. As stressed above, the number of

6 The Eurobarometer survey applied the following definition: "Telework occurs when paid workerscarry out all, or part of, their work away from their normal places of activity, usually from home, using

If so, how did it change ? (% of answers)

97,8 96,8 87,4 82,3 95,7 86,8 100,0

13,24,317,712,63,22,2

tasks carriedout in one day

use of skills contacts withpeople outsidethe company

close workingwith colleagues

responsabilities easy to combinework and

private life

savings(notably on

mail)

more/increased less/decreased

Source: Eurobarometer, Nov.2000

Computer, e-mail, internet:organising work differently

Did work change (%) ?

29,4 70,6no yes

15

'undeclared' teleworkers will be still much higher as afifth of the entire workforceclaims to use a computer at home for purposes of their work.

However, there are clear differences according to gender and type of occupation:More men than women have the opportunity to use it. Telework is most widespreadamongmanagers(19% of users), who use it frequently in addition to computer use attheir office, andself-employed(17 %). This distinction is also relevant in terms ofgender, as women are still under-represented in these job categories.

14,010,4

17,2 18,8

9,35,46,1 4,8

7,1

15,0

6,4

1,2

Men W om en Self-employed Managers Other whitecollars

Manual workers

as % of computer users for work by category as % of total workers in the category

Source: Eurobarom eter, Nov. 2000

Telew orkers by gender and category of occupation (EU average)

…with positive effects on work and on personal life …

Teleworkers overwhelmingly indicate that this form of work enhances theirproductivity and job quality, contrasting more sceptical expectations of those whohave never experienced telework. Combining work and private life is frequentlyregarded as a further advantage of telework, although it is important to maintain atime divide between both.

information and communication technologies". For further analysis on the situation of telework seealso "Benchmarking progress on new ways of working and new forms of business across Europe",ECaTT Final Report, supported by the IST programme, August 2000

Effects of telework in personal life: experiences and expectations

66,3

46,242,3 41,3

17,7

7,7 5,62,3

11,2

21,115,9

25,4 27,4

2,9

11,1

2,2 2

8,7

2,12,4

0

20

40

60

moreproduc tiveon the job

easier tocombinework and

private life

highersense of

autonomyin the job

reducedneed to

commute

less socialinteraction

moresocial

interac tion

morediffic ult tocombinework and

private life

lessproduc tiveon the job

lowersense of

autonomyin the job

inc reasedneed to

commute

%

effects reported by people teleworkingeffects expected by people who have not experienced telework

Sourc e: Eurobarometer, Nov.2000Multiple answers possible

16

In order to facilitate the uptake of telework, social partners at European level havebeen consulted by the Commission with a view to a framework on telework. Furtherto encouraging responses, this work is expected to advance in 2001.

3.3. Preventing a "digital divide" through public access and services

Internet access is increasingly a precondition for seizing the economic and socialopportunities in the knowledge-based economy. Thus, Lisbon called for anInformation Society for all.

... demand much higher than actual Internet penetration ...

More than half of the European population considers it important to be able to use acomputer in their daily life.

However, with Internet penetration at about a quarter of EU population, real accessdoes not meet this demand. There is still amultiple access gap – across MemberStates, and across gender, age, income, employment and educational levels.

Strong differences in Internet penetration persist amongMember States, despite allhaving had relative growth.

Access ofwomen to the Internethas advanced since last year.Still, it is only two thirds that ofmen, while female perception ofcomputer importance is equallyhigh.

G ender G ap

56,350,7

30,920,9

m a le fe m a le

Sourc e : Eurobarometer, Nov.2000

PC importan t In ternet usage

A ctual Internet penetration and perceived im portance of computerin daily life (% EU average)

Actual Internet penetration and perceived importance to be ableto use computer in daily life

(% of popula tion pe r M e m ber State)

39

75,9

56,5 58,5

45,3

31,5

60,1

77,9

57 55,7

48,3

35,8

45,8

53,2 53,6 53,4

22,8

52,8

20,3

11,215,7

19,625,2

21,6

33,4

50,1

26,8

11,7

61

39,9

25,7

47,7

0

10

20

30

40

50

60

70

80

90

B DK D EL E F IRL I L NL A P FIN S UK EUS ou rc e : Eu rob aro meter, No v. 2 00 0

Im portance of P C

Internet usage

17

Older people have scarcelyany access to the Internetdespite a relatively high levelof interest which confirmsthat older people are a keytarget for inclusion in theInformation Society.Awareness campaignstargeted at specific digitalbenefits for older people willfurther raise their demand.

Unemployedare stronglylagging behind in internetusage which needs to beovercome as it is anincreasingly importantcondition for theiremployability.

Income strongly definesaccess to the Internet –highincome earners have threetimes higher usage rates.

Further,education levelsimpact on the uptake ofdigital opportunities.Graduates have doublethe usage rates of non-graduates, whilst peoplewho are still studying(including older students)are even higher users.

Age Gap

54,1

3527,4

6,3

72,463

44,1 36

15-24 years 25-39 years 40-54 years 55 + years

Source: Eurobarometer, Nov.2000

PCimportant Internet usage

Actual Internet penetration and perceived importance of computer in dailylife (% EU average per age group)

Income Gap

57,168,4

26

42,1 45,8 47,3

15,5 18,8

Low Fairly low Fairly high High

Source: Eurobarometer, Nov.2000

PCimportant Internet usage

Actual Internet penetration and perceived importance of computer in dailylife (% EU average per income group)

Education Gap

66,2

84,3

45,056,852,9

36,623,6

6,7

up to 15 year old 16-19 year old 20 + year old still studying

Sourc e: Eurobarometer, Nov.2000

PC important Internet usage

Actual Internet penetration and perceived importance of computer in dailylife (% EU average per group)

age at which the education system was le ft

Employment Gap

56,859,8

16,2

34,1

employed unemployed

Source: Eurobarometer, Nov.2000

PC important Internet usage

Actual Internet penetration and perceived importance of computer in dailylife (% EU average per category)

18

There is a risk that factors of exclusion would be multiplied, unless appropriatepolicies are put in place to ensure access for all.Further to these findings, areport on e-Inclusion will be drawn up by ESDIS in 2001stimulating enhanced co-ordination of activities to bridge the digital divide. In thiscontext, issues of ICT accessibility, which have been highlighted in the 'Strategies JIS'in respect to the employability of people with disabilities, will also be addressed.

... mobile communications - an opportunity for cohesion ...

Mobile communications are known to be a European asset, with the EU ahead of theUS in terms of penetration rates. Moreover, compared to Internet access thepenetration rates of mobile technologies are less divergent across the Union, withsouthern Member States doing very well. Thus, mobile communications and servicescould contribute to a more cohesive Information Society.

3.3.1. Incentives to enhance access and digital literacy

To ensure access and digital literacy for all, the "Strategies" emphasised the role ofpublic Internet access points (PIAP). They should be set-up in all communities,supported by on-site training.

… public Internet access points – broad initiatives, but not yet convenient access …

National governments, regional, and local authorities, and private-public initiatives,are developing innovative approaches to set up PIAPs: in government offices(Ireland); libraries (Sweden, Belgium, Denmark, Finland, France, UK); post offices(France), employment services (France, UK, Austria), centres for the elderly (Spain),or in the streets of a city (Austria/Vienna; Italy/Bologna).7

7 see also "Bilan des actions menées par la Présidence pour la mise en oeuvre du Plan d'actioneEurope – Contributions des Etats membres", p. 49-51:http://www.presidence-europe.fr/pfue/dossiers/01787/01787-fr.pdf

M o b ile p h o ne us e rs (% )

0

10

20

30

40

50

60

70

80

FIN A S I D K L N L U K E P E U E L IR L D B F U S A

D e c .19 9 9 O c t.2 00 0

S ource : F T M o b ile C o m m u n ica tio n s; U SA : C e llu la r T e lecom s Industry A ssoc ia tion

19

However, the average number of inhabitants per PIAP is in several cases still above10.000. Thus, further efforts will be needed to ensure convenient access in allneighbourhoods.

Public Internet Access Points (PIAPs)(absolute values and per 1000 inhabitants)

0,03 0,030,07

0,15

0,040,06

0,08

0,16

0,11

0,46

590

1.050

1.763

342

4.700

781

2.380

601

1.603

989

0,00

0,05

0,10

0,15

0,20

0,25

0,30

0,35

0,40

0,45

0,50

B DK D F* IRL NL A FIN S UK

PIA

Ps

per

1000

inha

bita

nts

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

Num

ber

ofP

IAP

s

PIAPs per 1000 inhabitants

Total number of PIAPs

Source: ESDIS, Jan.2001

F*: F is currently expanding its PIAPs to a target of 7.000

Whilst public locations are necessary to ensure accessibility across the territory, homeusage is still mostly favoured by citizens, with about 75 % of all Internet usersaccessing it (also) from home.

Thus,incentives for citizens themselves to acquire and/or use IS equipmentare afurther component encouraged by the "Strategies". Some Member States havelaunched initiatives in this respect, e.g. the "Computers within reach" initiative in theUK providing recycled computers to low income families; different forms of tax reliefas a means of increasing access to computers and of encouraging access to broadbandnetworks in Sweden; or a flat rate charge for internet access, recently in Spain. In thiscontext, PIAP serve also as springboard for individual access, by raising awarenessand providing training. In France 2500 PIAP with targeted on-site training facilitiesare being set-up, while creating 4.000 new jobs for multimedia trainers.

3.3.2. Provide appropriate public content and services

The attraction of the Information Society, particularly for disadvantaged groups,depends on the on-line content and services. The "Strategies" highlighted the catalystrole of public services in this respect and recommended exploiting their positiveimpact on employment and social life.

20

… much general information, but little interactivity …

Public authorities across Europe are rapidly taking up this challenge. However, muchpublic content on the web is limited to general information. On-line interaction, thereal digital advantage for citizens, is still confined to few areas, with tax and culturalservices ahead.

In the table above, each column represents the weighted EU average of on-line services. Four modalities aredistinguished: provision of general information only; online ordering service possible; full interaction betweencitizen / businesses and public service providers; online payment.For instance, in the area of "Home Affairs", the columns show the percentage of how many services, out of aseries (issuing of passports, of driving licences, of residence permits, payment of police fees) are offered online, inthe different forms (from "General information", 57%, to "Online payment", 4%).

… on-line services in employment and social policies still scarcely realised …

Interactivity needs to be particularly expanded in areas relevant for employment andsocial protection. Surveys indicate demand: for example, about a third of unemployedcomputer users are already looking for a job on the internet.This is an important area of opportunity for public employment services.

97

61

42

17

80

52

31

9

78

27 26

5

75

53

29

0

75

2017

0

69

35

103

64

3025

1

64

27

18

0

58

18

0 0

57

19

54

Gen

eral

info

Ord

eron

line

Inte

ract

ion

Onl

ine

paym

ent Home

affairs

CivilProtection

ConsumerProtection

SocialPolicy

EducationEnvironmen

t

EmploymentHealth

CultureFinance

Online public services (%)

Source: ESDIS Jan.2001

21

… government sites in place, but response to demands of citizens and businessstill to be developed …

All national governments have established Internet sites. However, the "Strategies "emphasised the need for user-friendly central sites with cross-references to all relevantservices, organised in a way that responds to the demand of citizens rather thanadministrative structures. In this respect, further efforts are needed both with respectto "Citizens' sites" and "One Stop Internet Shops for Business".

Country Central governmentsite

Citizen's site at centralgovernment level

One Stop Internet Shop for Business

Austria www.austria.gv.at www.austria.gv.at

Belgiumwww.fgov.bewww.belgium.fgov.be

Denmark www.danmark.dkwww.danmark.dkwww.oresunddirekt.com

www.indberetning.dk

Finland www.vn.fiwww.opas.vn.fiwww.lomake.vn.fi

France www.internet.gouv.frwww.service-public.fr www.service-public.fr

www.finances.gouv.frGermany www.bundesregierung.de www.bund.de www.mittelstand-ans-netz.de

Greecewww.infosociety.grwww.government.gr

www.government.gr

Ireland www.irlgov.ie www.oasis.gov.ie www.basis.ieItaly www.governo.it www.acquisti.tesoro.itLuxembourg www.gouvernement.lu/ www.gouvernement.lu/Netherlands www.overheid.nlPortugal www.primeiro-ministro.gov.pt www.infocid.pt www.iapmei.pt

Spain www.map.es www.igsap.map.es/docs/cia/cives/cives.htmwww.igsap.map.es/guia/guia1.htm

www.igsap.map.es/docs/cia/cives/empresas.htm

Sweden www.regeringen.se www.sverigedirekt.riksdagen.se www.foretagarguiden.gov.se

UnitedKingdom

www.open.gov.uk

www.dti.gov.ukwww.companies-house.gov.ukwww.businessadviceonline.orgwww.tradepartners.gov.uk/

"eGovernment" is an important part of theeEurope Action Plan and progress onspecific government services will be benchmarked there.

64

36

27

73

36

27

82

45

9

73

64

27

73

64

27

8282

55

82

45

27

Gen

eral

info

Ord

eron

line

Inte

ract

ion Public

EmploymentService

Look for workand be

matched tojobs

Access tovocational

training

Access totraining for

unemployed

Financialsupport to

unemployed

Support to freemovement ofEU citizens

Work permitsfor non-EU

citizens

Online public services on Employment ( % )

Source: ESDIS, Jan.2001

22

3.4. Enterprise in the Information Society

… e-business booms in traditional sectors …

The spill-over from producers of communication tools, software and contents (short-term growth) to the wider economy (medium-term growth potential) becomes moreand more evident asbig traditional industries are rapidly taking-up e-business.

… slow adaptation of SMEs is still hampering IS job opportunities …

However, seizing thefull employment and growth potential of the InformationSociety will largelydepend onthe up-take bysmall and medium sized enterprises(SMEs). Thus, the "Strategies" put an emphasis on the access of SMEs to the digitalmarket place, and called for the promotion of innovation and competitiveness.

Only half of European SMEs are connected to the Internet. Still more striking,only asmall proportion actually use it for e-commerce.

IT spending on E-commerce applications by700 European companies

Financ ial s ervic es

Disc rete m anufac turing

Retail & wholes ale trade

Ins urance

G overnm ent

Com m unicat ions

Transport

S ervic es indus try

Utilit ies

P rocess m anufac turing

Health care

E duc ation

2003

1998

1,400 m illion E uro

S ourc e: E ITO 2000

23

The Employment Guidelines 2001 reinforce the emphasis on innovativeentrepreneurship exploiting new technologies to mobilise the job creation potential ofthe knowledge-based society.8 Further, the Commission has followed-up issuesidentified by the "Strategies" enhancing the digital performance of enterprisesparticularly through the Communications "Challenges for enterprise policy in theknowledge-driven economy"9 and "Innovation in a knowledge-driven economy "10,the Staff Working Paper on "Benchmarking Enterprise Policy"11, and the "Go-Digital"initiative for SMEs12.

8 see Guideline Nr. 10, but also Guidelines Nr. 13-15 encouraging adaptability of businessesand their employees

9 COM(2000)256 final of 26.04.2000, preparing the Council Decision (2000/819/EC) of20 December2000 on a multiannual programme for enterprise and entrepreneurship, and inparticular for small and medium-sized enterprises (SMEs) (2001-2005) OJ L 333/84,29.12.2000

10 COM (2000) 56711 SEC(2000) 1841 - 27.10.200012 The IST Workprogramme 2001 will contain Action Lines covering “Go Digital” objectives.

The Multi-annual Programme for Enterprise and Entrepreneurship (see above) willcomplement the 'Go Digital' initiative through benchmarking and the spread of best practice.A promotion campaign on e-business will be launched in parallel.

SME's Internet connection and use (%)

6058 57

55

5048 47

45 44

39 3836 35

2422

34

21 22

32

20

33

15

28

21 2124

15

22

17

11

15

10

3

14

9

13

7 6 7 8

35

7

2 13

70

6

S FIN IRL D DK A B LUX EU NL FR UK I E EL P

Connected Use for information Use for distribution

Source: European Network for SME Research (ENSR), 1999

24

4. CONCLUSIONS

This report confirms that the "Strategies for Jobs in the Information Society"addressed the most pressing issues for ensuring that citizens benefit from theemployment and social opportunities of the knowledge-based economy.

It provides evidence for an increasing, positive impact of the Information Society interms of productivity, employment growth, and quality of work.

• The usage of ICT by the workforce proves to be more advanced than expecteda year ago. However, the lack of structured training in IS competenciesprovided to the workforce is striking. This confirms the need for SocialPartners and enterprises to ensure that every worker has the opportunity toachieve IS literacy, as called for in the Employment Guidelines.

• ICT usage enhances the productivity and quality of work. To realise thispotential, not only the deployment of technologies, but also the adaptation ofwork organisation is essential. In this respect, increasing the opportunities fortelework is particularly promising.

• Skills shortages are still a dramatic barrier for development. Though progressin adapting education and training to the Information Society is visible, it hasto be accelerated to achieve the targets. The shortage of IS experts is ofconcern particularly given the lead time for supply through specialisededucation and conversion of skills.

• Whilst the evidence also shows that the development of ICT is creating jobopportunities throughout the economy, across all sectors, occupations andskills-levels, in many cases, a lack of basic skills is holding back job creation.This highlights the need for a full implementation of the EuropeanEmployment Strategy in order to make the most of the employment potentialof the Information Society.

• As the Information Society expands, the risk of a "digital divide" is evident.Initiatives to enhance public access and to exploit digital opportunities inpublic services have been launched, but are not matching yet the demands ofcitizens.

• Though efforts to respond to the "Strategies" are visible across Europe, thereport still underlines strong differences among Member States in seizing thejob opportunities of the Information Society.

This report sets a baseline for regularly benchmarking the objectives established atEuropean level, and provides empirical evidence for their further development in theframework of the European Employment Strategy.13

The issues of a digital divide will be further elaborated in a report on e-Inclusion to bepresented in 2001.

13 Development of data sources in order to improve the effectiveness of benchmarking is being put in place.