Investment in Human Capital and The revised Lisbon strategy March 2005 Karin Winqvist Employment Strategy Unit, DG Employment, Social Affairs & Equal Opportunities, European Commission

Lisbon objective: To become the most dynamic and competitive knowledge-based economy in the world capable of sustainable economic growth with more and better jobs and greater social cohesion, and respect for the environment

The Lisbon Agenda Lisbon Macro-economic policy coordination Sustainable Development Strategy Macro-economic policy coordination stability and growth pact, monetary policy Micro-economic reforms industrial policy, innovation and R&D, reforms in product, service and financial markets Coordination on social protection & social inclusion Employment policy coordination attracting more people, adaptability of workers and enterprises, investment in human capital EES  The Lisbon Strategy initiated a comprehensive set of structural reforms.

Reporting - Indicators Targets and benchmarking Lisbon, Laeken, Barcelona etc Requests for more indicators and statistics Structural indicators, Employment indicators, Laeken indicators, Education indicators…  Expert groups develops indicators for political agreement ESS provides the underlying statistics

The European Employment Strategy The European Employment Strategy (EES) has coordinated Member States' employment policies since 1997 through: common European guidelines and recommendations annual national action plans (NAPs now NRPs) for employment monitoring, evaluation and mutual learning at EU level  A policy framework which complements EU action in the field of employment (cf. legislation, social dialogue and the European Social Fund)

The new Employment Guidelines (2005-2008) (17) To implement employment policies aimed at achieving full employment, improving quality and productivity at work, and strengthening social and territorial cohesion ATTRACT AND RETAIN MORE PEOPLE IN EMPLOYMENT, INCREASE LABOUR SUPPLY AND MODERNISE SOCIAL PROTECTION SYSTEMS (18) To promote a lifecycle approach to work (19) To ensure inclusive labour markets for job-seekers and disadvantaged people To improve matching of labour market needs IMPROVE ADAPTABILITY OF WORKERS AND ENTERPRISES (21) To promote flexibility combined with employment security and reduce labour market segmentation (22) To ensure employment-friendly wage and other labour cost developments INCREASE INVESTMENT IN HUMAN CAPITAL THROUGH BETTER EDUCATION AND SKILLS (23) To expand and improve investment in human capital (24) To adapt education and training systems in response to new competence requirements

Implement employment policies aiming at achieving full employment, Guideline No.17 Implement employment policies aiming at achieving full employment, improving quality and productivity at work and, strengthening social and territorial cohesion. Policies should contribute to achieving an average employment rate for the European Union (EU) of 70% overall, at least 60% for women and 50% for older workers (55 to 64) by 2010, and to reduce unemployment and inactivity. Member States should consider setting national employment rate targets.

Expand and improve investment in human capital through: Guideline No.23 Expand and improve investment in human capital through: inclusive education and training policies and action to facilitate significantly access to initial vocational, secondary and higher education, including apprenticeships and entrepreneurship training; reducing significantly the number of early school leavers; - efficient lifelong learning strategies open to all in schools, businesses, public authorities and households according to European agreements, including appropriate incentives and cost-sharing mechanisms, with a view to enhancing participation in continuous and workplace training throughout the life-cycle, especially for the low-skilled and older workers.

Guideline No.24 Adapt education and training systems in response to new competence requirements through: raising and ensuring the attractiveness, openness and quality standards of education and training, broadening the supply of education and training opportunities and ensuring flexible learning pathways and enlarging possibilities for mobility for students and trainees; easing and diversifying access for all to education and training and to knowledge by means of working time organisation, family support services, vocational guidance and, if appropriate, new forms of cost-sharing; - responding to new occupational needs, key competences and future skill requirements by improving the definition and transparency of qualifications, their effective recognition and the validation of non-formal and informal learning.

Learning as a process, aims are employment (employability, adaptability etc.) prevent the risk of social exclusion Inputs Process Outputs Outcomes Entrants Schools Graduates Skills Students Classes Trained workers Indiv. Returns Workers Educ. Methods Early leavers Eco. Returns Teachers ICT usage Dropouts Social Returns Expenditure Teacher training Funding Working time

Expand and increase investment in human capital Indicators to monitor guideline No.23: Expand and improve investment in human capital Expand and increase investment in human capital Investment in human resources (UOE) Investment by enterprises in training of adults (CVTS) EDUCATIONAL ATTAINMENT OF 22 YEAR OLDS (LFS) Reduce the number of early school leavers EARLY SCHOOL LEAVERS (LFS) Efficient lifelong learning strategies open to all PARTICIPATION IN EDUCATION AND TRAINING (LFS) Participation in CVT (CVTS)

Indicators to monitor Guideline No Indicators to monitor Guideline No.24: Adapt education and training systems in response to new competence requirements Ensuring attractiveness, openness and quality standards of education and training ? Easing access for all to education and training Responding to new occupational needs, key competences and future skills requirements Indicators measuring skills?

Statistics on participation in formal and informal learning (linked to employment) Participation in learning over the last 4 weeks in the LFS Continuing vocational training survey (CVTS) 2006 (every five years) In 2003, LLL module in the LFS Adult Education Survey (AES)

Some missing areas Information on the training providers (ex. quality) Information about outcomes: skills and competencies and economic and social returns

Measuring skills in a comparable way EMPLOYABILITY and ADAPTABILITY Which skills? Job or work related generic skills (communication, team work, …) Entrepreneurial – Social – Ability to learn - etc Literacy Numeracy ICT skills Problem solving, analytical skills Foreign language competency Which population? Low skilled or high skilled?

Annual Progress Report to the Spring Council More Growth and Jobs (Adopted by the Commission on 25 January) - Actions 1: Investing more in knowledge and innovation (>=2% of GDP to higher education by 2010) 2: Unlocking the business potential, particularly of SMEs 3: Responding to globalisation and ageing jobs for young people availability of quality childcare raise faster the particip. in training for pers. > age 45 4: Moving towards an efficient and integrated EU energy policy