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OECD SKILLS STRATEGY FLANDERSDIAGNOSTIC WORKSHOP

Dirk Van DammeHead of Division

OECD Centre for SkillsEducation and Skills Directorate

15 May 2018

Use Pigeonhole for your questions

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WHY DO SKILLS MATTER?

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Skills empower countries and people to…

….thrive in our increasingly interconnected and rapidly changing world

Why do countries need skills strategies?

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Trends shaping education and skills

GLOBALISATION DEMOGRAPHIC CHANGE

TECHNOLOGICALCHANGE

Skilled workers are less likely to have routine jobs

Correlation between country-industries’ employment share in high routine jobs and average workers’ skills

Source: OECD Skills outlook 2017, Figure 2.19

-0.42-0.5

-0.38

0.4

-0,6

-0,5

-0,4

-0,3

-0,2

-0,1

0

0,1

0,2

0,3

0,4

0,5

Literacy skills Numeracy skills Problem solving skills intechnology-rich

environments

Physical skills

Notes:- High routine jobs are based on official occupation or sector classifications- The employment share in high routine intensity tasks is an average over the period 2000-11. Average workers’

skills are in 2012.

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An increasing share of jobs requires higher levels of skills

Employment opportunities by typical education requirements of occupations, historical and projected, OECD-EU countries, Shares of employment growth

Note: the OECD-EU countries refers to the 22 countries that are members of both the European Union and the OECD. These 22 countries are Austria, Belgium, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy,Latvia, Luxembourg, the Netherlands, Poland, Portugal, Slovenia, the Slovak Republic, Spain, Sweden and the United Kingdom; Education level requirements have been estimated using the International Standard Classification of Education 1997 (ISCED97).Source: OECD calculations based on CEDEFOP (2017), EU-CEDEFOP database: Employment trends.

20.9 23.1

-41.4

-30.4

4251.2

78.5

56.1

-60

-40

-20

0

20

40

60

80

100

2005-2015 2016-2025

%

Primary (ISCED97-1) Secondary and post-secondary non-tertiary (ISCED97-2+3+4)

Tertiary non-university (ISCED97-5B) Tertiary - university (ISCED97-5A+6)

Note: Increased likelihood (odds ratio) of adults scoring at Level 4/5 in literacy reporting high earnings, high levels of trust and political efficacy, good health, participating in volunteer activities and being employed, compared with adults scoring at or below Level 1 in literacy (adjusted) Source: OECD Skills Outlook 2013

Higher skill proficiency is associated with improved social and economic outcomes

Likelihood of positive social and economic outcomes among highly literate adults

2,9

2,6 2,6

2,3

2,22,1

1,0

1,2

1,4

1,6

1,8

2,0

2,2

2,4

2,6

2,8

3,0

High wages High levels of politicalefficacy

Participation in volunteeractivities

High levels of trust Being employed Good to excellent health

Odds ratio

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WHAT IS THE SOCIO-ECONOMIC CONTEXT FOR

FLANDERS?

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Source: OECD (2018), Dataset: Regional Economy.

Demographic change makes productivitygrowth increasingly important in Flanders

Growth productivity and labour utilisation in Flanders, 2007=100

96

97

98

99

100

101

102

103

2007 2008 2009 2010 2011 2012 2013 2014 2015

Real growth index of labour productivity (GVA / employment)Growth index of labour utilisation (Employment / Population)

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Source: Eurostat (2018), Regional Employment, LFS

The share of population which is inactive is relatively high

Economic inactivity rate, selection of countries, 15-64 year-olds, 2016

0

5

10

15

20

25

30

35

40

Switz

erla

nd

Den

ma

rk

Swed

en

Aus

tria

Brus

sels

Euro

pea

n Un

ion

Luxe

mb

ourg

Fran

ce

Fla

nder

s

Belg

ium

Wal

loni

a

% of population

Note: Each well-being dimension is measured using 1-3 Better Life Indicators with equal weight, and are normalised by re-scaling to be from 0 (worst) to 10 (best).

Source: OECD (2017), OECD Economic Surveys: Belgium 2017

Well-being in Belgium is generally high compared to the OECD average

OECD Better Life Index

0

2

4

6

8

10Income and wealth

Jobs and earnings

Housing

Work-Life balance

Health status

Education and skillsSocial connections

Civic engagement andgovernance

Environmental quality

Personal security

Subjective well-being

Belgium OECD

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WHAT IS THE SKILLS STRATEGY FRAMEWORK?

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Applying the Skills Strategy

Contributes to economic prosperity

Contributes to social cohesion

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The OECD Skills Strategy Dashboard

Note: These summary indicators are calculated as a simple average of a range of underlying indicators. All underlying indicators have been normalised in a way which implies that a higher value and being among the “top 20%” reflects better performance. "x" indicates insufficient available data for underlying indicators

5 Priority areas for the project

Developing a learning culture

Strengthening skills use in workplaces

Improving skills matches

Strengthening skills governance and structures

Improving the financing of education and training

Preliminary analysis

Policy context

Discussion with Project Team

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PRIORITY 1: DEVELOPING A LEARNING CULTURE

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Adults exhibit an above average performance in most comparative cognitive skills measures

Mean proficiency scores in literacy and numeracy, and the % scoring at Level 2 or 3 in problem solving in technology-rich environments, 16-65 year-olds

Source: OECD (2016), Skills Matter: Further Results from the Survey of Adult Skills, Figure 1.2. http://dx.doi.org/10.1787/888933365695

200 220 240 260 280 300

ChileTurkey

ItalySpain

GreeceSlovenia

FranceIrelandPoland

OECD averageN. Ireland (UK)

AustriaUnited States

GermanyDenmark

KoreaEngland (UK)

CanadaSlovak RepublicCzech Republic

FlandersEstonia

NorwaySwedenAustralia

New ZealandNetherlands

FinlandJapan

A. Literacy, mean score

200 220 240 260 280 300

ChileTurkeySpain

ItalyGreece

United StatesFranceIreland

SloveniaN. Ireland (UK)

PolandEngland (UK)

OECD averageKorea

CanadaAustralia

New ZealandGermany

EstoniaAustria

Czech RepublicSlovak Republic

DenmarkNorwaySweden

NetherlandsFlandersFinlandJapan

B. Numeracy, mean score

0 10 20 30 40 50

TurkeyGreece

ChilePolandIreland

SloveniaSlovak Republic

EstoniaN. Ireland (UK)

KoreaOECD average

United StatesAustria

Czech RepublicFlanders

JapanEngland (UK)

GermanyCanadaAustralia

DenmarkNorway

NetherlandsFinland

SwedenNew Zealand

C. Problem solving, % level 2 or 3

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Flanders does face some challenges with respect to the socio-demographic distribution of skills

Socio-demographic adjusted differences in literacy

Source: OECD (2016), Skills Matter: Further Results from the Survey of Adult Skills, Figure 3.1. http://dx.doi.org/10.1787/888933365979.

0

10

20

30

40

50

60

Age (25-34 - 55-65) Immigrant (native -foreign)

Education (Tertiary -lower than upper

sec).

Parents' Education(tertiary parents - less

than upper sec.parents)

Score-pointsFlanders OECD average

But the effect of parents’ educational level appears to decrease in Flanders

Disparities in literacy between individuals with and without tertiary educated parents in PISA 2000 and PIAAC 26-28 year-olds

Source: Borgonovi, F. et al. (2017), “Youth in Transition: How Do Some of The Cohorts Participating in PISA Fare in PIAAC?”, OECD Education Working Papers, No. 155, OECD Publishing, Paris. http://dx.doi.org/10.1787/51479ec2-en

00,10,20,30,40,50,60,70,80,9

Standardised gapPISA 15 year-olds PIAAC 26-28 year-olds Note: The standardised gap

refers to the difference in the mean scores of individuals with at least one parent educated at the tertiary level and individuals without tertiary educated level parents divided by the average standard deviation of countries participating in the study in a particular education. Countries are ranked in descending order of the gap in PISA 2000. Bars and diamonds highlighted in dark represent groups for which the gap is statistically significant at the 5% level. * Next to the country name denotes PIAAC round 2 countries for which PISA 2003 data were used to identify performance at age 15.

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And large share of the workforce is vulnerable to automation

Source: Elliott, S. (2017), “Computers and the future of skill demand”, OECD Publishing.

Proportion of workforce using general cognitive skills at or below level of computer capabilities, historical and projected

0%

10%

20%

30%

40%

50%

60%

70%

80%

Computer capabilities in 2016 Additional capabilities projected for 2026

Creating a culture of lifelong learning is becoming increasingly important

A culture of lifelong learning could:

Help to reduce socio-

economic differences

Help adults to upskill and reskill to meet changes in skills demand

Raise productivity, innovation, and

economic growth

Improve social cohesion, health,

and civic participation

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But participation in adult education could be expanded

Source: OECD Survey of Adult Skills database (PIAAC) (2012, ‘15).

Participation in adult education, 25-64 year-olds, by type, 2012/2015

0

10

20

30

40

50

60

70

%Participation in non-formal education onlyParticipation in formal education onlyParticipation in both formal and non-formal education

Low-skilled adults are much less likely to participate in formal and non-formal learning

Participation gap in formal and non-formal learning for job-related reasons, Percentage of high-skilled and low-skilled adults

Source: OECD calculations based on OECD (2017), OECD Survey of Adult Skills database (PIAAC) (2012, 2015), OECD, Paris, www.oecd.org/skills/piaac/ (accessed March 2017).

0

5

10

15

20

25

30Percentage points

non-formal learning for job-related reasons formal education

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Flemish adults are comparatively unwilling to participate and face severe obstacles

Not willing to participate in formal and/or non-formal education, % of 25-64 year-olds, 2012/2015

Source: OECD calculations based on OECD (2017), OECD Survey of Adult Skills database (PIAAC) (2012, 2015), OECD, Paris, www.oecd.org/skills/piaac/ (accessed March 2017).

0102030405060708090

100

% Participated, but does not want to participate (more)Did not participate, and does not want to participate

PRIORITY 2: IMPROVING SKILLS MATCHES

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Flemish workers are comparatively well-matched in education and skills level, but not in field-of-study

Mismatch, by type of mismatchAs a percentage of all employment

Source: OECD calculations based on the Survey of Adult Skills (PIAAC) 2012.

0 10 20 30 40 50

Slovak RepublicSlovenia

TurkeyPoland

DenmarkCzech Republic

FlandersFinland

SpainKorea

United StatesNetherlands

ChileGreece

GermanyOECD average

NorwayAustria

ItalyN. Ireland (UK)

EstoniaJapan

SwedenCanadaAustralia

England (UK)IrelandFrance

New Zealand

A. Qualification mismatchOver-qualified Under-qualified

0 10 20 30 40

N. Ireland (UK)Netherlands

PolandFinland

CanadaFrance

SwedenFlanders

EstoniaDenmarkAustraliaSlovenia

KoreaUnited States

JapanEngland (UK)

NorwayNew Zealand

OECD averageTurkey

GermanySlovak Republic

ItalyCzech Republic

AustriaSpain

IrelandChile

Greece

B. Literacy mismatchOver-skilled Under-skilled

0 20 40 60

FinlandGermany

AustriaSloveniaNorwaySweden

NetherlandsDenmark

EstoniaCanada

Slovak RepublicCzech Republic

FlandersOECD average

PolandGreece

TurkeySpain

United StatesJapan

N. Ireland (UK)Italy

ChileKorea

C. Field of study mismatch

Flanders has labour shortages in technical occupations, and enrolment in STEM-studies is lagging behind

B. Graduates STEM studies in tertiary educationper 1000 of population aged 20-29, 2014

Source: OECD (2017), Education at a Glance, Table A2.1. Profile of upper secondary graduates from general and vocational programmes(2015). Eurostat, Education administrative data; STEM Monitor 2017

0

5

10

15

20

25

0

5

10

15

20

25

30

35

40

45

50%

A. Graduates in upper secondary engineering, manufacturing and construction programs

% of graduates in upper secondary, 2015

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And despite labour shortages, many adults are still outside of the labour market

Long-term unemployment, NEETs, and inactivity rate, 2016

Source: OECD (2017), Long-term unemployment rate (indicator). doi: 10.1787/76471ad5-en; Eurostat (2018) Regional statistics

0 20 40 60 80

SwedenDenmark

OECD averageAustria

LuxembourgGermanyFlanders

NetherlandsFrance

WalloniaBrussels

% of unemployed

A. Long-term unemployment

0 10 20

NetherlandsSweden

GermanyFlanders

AustriaDenmark

LuxembourgEU average

FranceWallonia

Brussels

%

B. NEETs, 15-24 year-olds

0 20 40

Switzerland

Denmark

Sweden

Austria

Brussels

European Union

Luxembourg

France

Flanders

Wallonia

% of population

C. Inactivity rate

PRIORITY 3: STRENGTHENING SKILLS USE IN WORKPLACES

30

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Skills are not used to their full potential in the workplace

Use of numeracy skills and numeracy proficiency

Note: Skills use indicators are between 1 "Never" and 5 "Every day". Source: OECD Survey of Adult Skills database (PIAAC) (2012, ‘15).

250

255

260

265

270

275

280

285

290

2,3

2,35

2,4

2,45

2,5

2,55

2,6

Proficiency scoreSkills-use indicator Use of numeracy skills at work (left)Numeracy proficiency (average score) (right)

But Flemish firms are adopting HPWP at a higher rate than their counterparts in most other countries

Share of jobs and index High performance work practices (HPWP)

OECD (2016a), OECD Employment Outlook 2016, OECD Publishing, Paris, http://dx.doi.org/10.1787/empl_outlook-2016-en.

2,4

2,5

2,6

2,7

2,8

2,9

3,0

0

5

10

15

20

25

30

35

40

45

Index%

Percentage of jobs with high HPWP (left)Mean HPWP index (right)

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Some task-based skills could be used more often by workers

Workers' task-based skills, 2012/2015

OECD (2016a), OECD Employment Outlook 2016, OECD Publishing, Paris, http://dx.doi.org/10.1787/empl_outlook-2016-en.

0,45 0,5 0,55 0,6

Marketing and accounting skills

STEM skills

Managing and communicationskills

ICT skills

Self-organisation skills

Flanders OECD (PIAAC)

PRIORITY 4: STRENGTHENING SKILL GOVERNANCE AND

STRUCTURES

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The relevance of governance and partnerships for skills systems

Civil societyPublic Authorities

Financing institutions

Employers and Unions

Education training and research

Skills system stakeholders

Belgium is comparatively strong in engaging stakeholders when developing regulations

Stakeholder engagement in developing regulations, 2014

0

0,5

1

1,5

2

2,5

Methodology score: primary lawsOversight score: primary lawsSystematic adoption score: primary laws

Transparency score: primary lawsTotal score: subordinate regulations

Source: OECD (2017), Government at a Glance 2017, Figure 1.7 and 8.1. Stakeholder engagement in developing regulations, 2014.

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Governance in Belgium can be improvedExecutive capacity, SGI-score, 2017

Source: Bertelsmann Stiftung (2018), Sustainable Governance Indicators (SGI), http://www.sgi-network.org/2017/.

1 2 3 4 5 6 7 8 9

Evidence-based Instruments

Organizational Reform

Policy Communication

Societal Consultation

Strategic Capacity

Adaptability

Implementation

Interministerial Coordination

BelgiumOECD average

PRIORITY 5: IMPROVING THE FINANCING OF

EDUCATION AND TRAINING

38

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Flanders implemented several financial incentives to promote adult learning

Types of financial incentives for individuals and firms to support participation in adult learning

Opleidingscheques('Training Vouchers')

Loopbaancheques ('Career Guidance Vouchers')

IndividueleBeroepsopleiding (IBO) ('Individual vocational training')

Exemptions or no entrance fees for adult education

Actieplan Werkbaar Werk('Workable Work')

StrategischeTransformatiesteun('Strategic Transformation Support')

KMO-portefeuille ('SME Portfolio')

Individual Firms

Employers cover a relatively large share of expenditures, but especially for the high skilled

% of employees receiving employer financial support for education or training, by skills level, 25-64 year-olds

40%

45%

50%

55%

60%

65%

70%

75%

80%

low skilled high skilled

Source: OECD Survey of Adult Skills database (PIAAC) (2012, ‘15).

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The cost of adult education is rarely a reason to not participate

Reasons for not participating, 2012/2015

Source: OECD (2017), Education at a Glance, Table C6.3a.

0 10 20 30 40

Did not have the prerequisites

Something unexpected came up

Too expensive

Lack of employer’s support

Other

Inconvenient time or place

Childcare, family responsibilities

Too busy at work

%

Flanders OECD average

Questions? <<From Pigeon hole>>

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For more informationTo discuss OECD’s work with countries on National Skills Strategy projects contact: montserrat.gomendio@oecd.orgdirk.vandamme@oecd.organdrew.bell@oecd.org

To learn more about the OECD’s work on skills visit: www.oecd.org/skills/