As labour market reform continues in the EU's labour markets, it is clear that any kind of market reform must work in tandem with constant workforce training and education. Despite the fact that recent employment growth has been quite impressive in the EU (the recently published Joint Employment Report points out that almost 6.5 million new jobs were created during the last two years and another five million jobs are forecast by 2009), there still is the need for more investment in education and training. Today it is a fact that European workers will have to re-skill in coming years as technological and organisational changes push up the demand for increased qualifications, even in the most elementary jobs.
In a study published last week by Cedefop (the European Centre for the Development of Vocational Training), the results of the first Europe-wide forecast of skills were announced. The study, Future Skills Needs In Europe: Medium-Term Forecast concerns the demand for skills and occupations until 2015. It is based on employment data and on an analysis of economic and technological trends including, for example, trends in innovations and demography. It covers 25 EU member states (not Bulgaria and Romania) plus Norway and Switzerland.
The most significant result of the study is that European workers will have to re-skill in the coming years in order to be able to fully integrate in the labour market. The ongoing and long transition of European economies from the primary and manufacturing sectors towards the service sector will continue in the near-to medium-long future; at the same time, in all sectors and occupations, skill needs will continue rising.
The study forecasts that by 2015, the primary sector is expected to employ 10 million workers across Europe (down from 12 million in 2006), while manufacturing will employ 34.5 million (down from 35 million in 2006). As expected, the demand for skills is being driven by the ever-growing services sector, which is expected to generate more than 13 million new jobs by 2015. According to Education and Training Commissioner , the forecast gives "a clear idea of where the skills deficits are likely to occur in the years to come and allows young and old to assess their training needs for the future job market".
Change in skill requirements poses serious repercussions for Europe's workforce. The continent already has a population which is shrinking, in the process increasing the demand for skilled workers to replace an aging workforce. At the same time workers in the near future will need higher qualifications to perform the "same job". Bottlenecks are already appearing in an increasing number of sectors, e.g. health care and elderly care, education, the artisan and crafts sectors, and engineering. Consequently, a substantial rise in investment in human capital, targeted towards labour market needs, is essential to prevent skills mismatches in the future. Training and education needs to start at a very early age and continue throughout life with qualifications gained on the job recognised throughout Europe.
The EU recognised this need and has actively been promoting lifelong learning through the integrated guidelines for employment for 2005-2008. At the same time, the EU has constantly promoted teaching and training across the Union through the European Social Fund (ESF) and the Leonardo Da Vinci programme. The ESF, created in 1957, is the EU's main financial instrument for investing in people. It supports employment and helps people enhance their education and skills in order to improve their job prospects. The Leonardo Da Vinci programme, one of the EU's main flagship funding programmes, bolsters the competitiveness of the European labour market by helping EU citizens acquire new skills, knowledge and qualifications in European countries outside their home country.
It is up to businesses entities in the EU member states to participate in such programmes which help to address their skills problem. The member states themselves need in turn to invest more in lifelong learning. Regrettably, participation in lifelong learning in the EU barely increased between 2005 and 2006, while it actually decreased in half of the member states, and overall adult training provision remains uneven.
• Mr Cuschieri is an executive at Impetus Europe Consulting Group Ltd and may be contacted at marvin.cuschieri@impetuseurope.com
http://www.impetuseurope.com
In a study published last week by Cedefop (the European Centre for the Development of Vocational Training), the results of the first Europe-wide forecast of skills were announced. The study, Future Skills Needs In Europe: Medium-Term Forecast concerns the demand for skills and occupations until 2015. It is based on employment data and on an analysis of economic and technological trends including, for example, trends in innovations and demography. It covers 25 EU member states (not Bulgaria and Romania) plus Norway and Switzerland.
The most significant result of the study is that European workers will have to re-skill in the coming years in order to be able to fully integrate in the labour market. The ongoing and long transition of European economies from the primary and manufacturing sectors towards the service sector will continue in the near-to medium-long future; at the same time, in all sectors and occupations, skill needs will continue rising.
The study forecasts that by 2015, the primary sector is expected to employ 10 million workers across Europe (down from 12 million in 2006), while manufacturing will employ 34.5 million (down from 35 million in 2006). As expected, the demand for skills is being driven by the ever-growing services sector, which is expected to generate more than 13 million new jobs by 2015. According to Education and Training Commissioner , the forecast gives "a clear idea of where the skills deficits are likely to occur in the years to come and allows young and old to assess their training needs for the future job market".
Change in skill requirements poses serious repercussions for Europe's workforce. The continent already has a population which is shrinking, in the process increasing the demand for skilled workers to replace an aging workforce. At the same time workers in the near future will need higher qualifications to perform the "same job". Bottlenecks are already appearing in an increasing number of sectors, e.g. health care and elderly care, education, the artisan and crafts sectors, and engineering. Consequently, a substantial rise in investment in human capital, targeted towards labour market needs, is essential to prevent skills mismatches in the future. Training and education needs to start at a very early age and continue throughout life with qualifications gained on the job recognised throughout Europe.
The EU recognised this need and has actively been promoting lifelong learning through the integrated guidelines for employment for 2005-2008. At the same time, the EU has constantly promoted teaching and training across the Union through the European Social Fund (ESF) and the Leonardo Da Vinci programme. The ESF, created in 1957, is the EU's main financial instrument for investing in people. It supports employment and helps people enhance their education and skills in order to improve their job prospects. The Leonardo Da Vinci programme, one of the EU's main flagship funding programmes, bolsters the competitiveness of the European labour market by helping EU citizens acquire new skills, knowledge and qualifications in European countries outside their home country.
It is up to businesses entities in the EU member states to participate in such programmes which help to address their skills problem. The member states themselves need in turn to invest more in lifelong learning. Regrettably, participation in lifelong learning in the EU barely increased between 2005 and 2006, while it actually decreased in half of the member states, and overall adult training provision remains uneven.
• Mr Cuschieri is an executive at Impetus Europe Consulting Group Ltd and may be contacted at marvin.cuschieri@impetuseurope.com
http://www.impetuseurope.com