Tackling skills-mismatchwith dual vocational training

Karen Roiy, Senior Advisor

Agenda• The problem of skills mismatch

• How to combat youth unemployment– Mobile, dynamic and open labour markets– Educational systems linked to the needs of the labour

market• Dual learning/work-based learning• Close involvement of social partners

• What can EU do to help member states combat youth unemployment?

Individual perception of skills mismatch

Self-reported skills mismatch in selected OECD countries, 2010

Skills mismatches from an employer perspective

Anm.: How, if at all, does a lack of entry-level employee skills affect your company?Kilde: McKinsey survey, Aug–Sept 2012, 2013, Education to Employment: Getting Europe’s Youth into Work

Perception of skills mismatches

Anm.: 1 Overall, the entry-level employees we hired in the past year have been adequately prepared by their prehire education and/or training. 2 Overall, I think I was adequately prepared for an entry-level position in my chosen career field. 3 Overall, graduates from my institution are adequately prepared for entry-level positions in their chosen field of study. Kilde: McKinsey survey, Aug–Sept 2012, 2013, Education to Employment: Getting Europe’s Youth into Work

The problem of skills mismatch• We need a highly-skilled labour force in Europe to protect

our competetiveness and maintain investments in Europe

• Companies will only invest in Europe if they are sure they can find labour with the right skills

• Due to demographic challenges it is more important than ever to make full use of the potential of the working population in Europe

• In spite of high youth unemployment – companies cannot find candidates with the right skills

How to combat youth unemployment?

• Mobile, dynamic and open labour markets

• Educational systems linked to the labour market

Youth Unemployment in Europe

0

10

20

30

40

50

60

70Unemployment by age

Less than 25 yearsFrom 25 to 74 years

Dual learning systems• Why?

– Ensure a smoother transition from education to labour market

• Benefits for companies:– A recruitment source– Synergies between the worlds of education and business

• Benefits for young people:– Becomes attractive to the labour market– High employment rate – Mobility in the labour market

The Danish dual IVET system

• In the Danish dual training system pupils spend roughly 2/3 of the time in a company and 1/3 in a vocational school.

Legislation

Framework

Content

Education plan

Guidelines

VET governance

Decision maker Product Counselor

CentrallyLocally

Ministries

Committees

ParliamentVET council

School org.

Social partnersSchool Boards

Social partners involvement

What can EU do to help member states combat youth unemployment

• The Commission, the Parliament and many member states recognize the importance of a better link between education and business– European Alliance for Apprenticeship– (Youth guarantee)

BUT:• A youth guarantee will not combat youth

unemployment in Europe, only: – Mobile, dynamic and open labour markets combined

with– Educational systems linked to the demands of the

companies will

Recommendations for STYLE• Address ways to strengthen incitements to carry through

necessary reforms:– E.g. the EU could set a side means (European funds) to cover initial

costs for countries that wish to reform toward work-based learning/dual learning

– These means could be linked to the national reform programs

• Recommend the EU to continue existing programs that promotes mobility such as your first EURES job

• Recommend the EU/OECD to develop statistics/a benchmark to measure the performance of VET systems– Employability– Share of education spend in a company– Percentage of youth generation that carries through a VET education– Etc.