G20 Training Strategy Bridging Education, Training, and Decent Work CONFERENCE ON NEW SKILLS FOR NEW JOBS IN THE WESTERN BALKANS Sarajevo, 12-13 July 2012 INTERNATIONAL LABOUR ORGANIZATION Skills and Employability Department (EMP/SKILLS) ILO-OECD cooperation on LED and skills in Southeast Asia Colleagues most directly working with LEED unfortunately not able to be here, to present the book tomorrow and to continue discussion in person Akiko Sakamoto and myself, from Skills Department of the ILO – me from Geneva, and Akiko working out of Manila – happy to be here, meeting which focuses on Asia in the post-crisis context, skills development Outcome statement – result of requests constituents – government, workers and employers

Bridging the world of education and training to the world of work, To improve the employability of workers, To increase the productivity and competitiveness of enterprises, To expand the inclusiveness of economic growth

G20 Training Strategy for strong, sustainable and balanced growth Pittsburgh Summit, September 2009 Called for putting quality jobs at the heart of recovery Adopted framework for strong, sustainable and balanced growth Asked the ILO, in partnership with other organizations and with employers and workers, to develop a training strategy “.. to strengthen the ability of our workers to adapt to changing market demands and to benefit from innovation and investments in new technologies, clean energy, environment, health and infrastructure” Washington Ministerial Meeting, April 2010 Accepted the draft assessment, conceptual framework, and building blocks Toronto Summit, June 2010 Received and welcomed the G20 Training Strategy document Seoul Summit, November 2010 Human resource development pillar to build on the G20 Training Strategy to strengthen national vocational education and training institutions and programs - Met in London in April set a course for recovery. Put jobs at heart of the recovery Met in Philadelpia in September, ILO estimated that the efforts of the G20 members had created or saved 7-11 million jobs. As growth returns, every country must act to ensure that employment recovers quickly. We commit to implementing recovery plans that support decent work, help preserve employment, and priotitze job growth.. In addition we will continue to We should implement policies consistent with ILO fundamental principles and rights at work. (para 43) New framework for Strong, Sustainable, and Balanced Growth – inclusive labour markets, ALMPs, and quality education and training programs. Each of our countries will need, through its own national policies, to strenthen the ability of our workers to adapt to changing makret demands and to benefit from innovation and investments in new technologies, clean energy, environment, health and infrastructure. It is no longer sufficient to train workers to meet their specific current needs; we should ensure access to training programs that support lifelong skills development and focus on future market needs. Developed countries should support developing countries to build and strengthen their capacities in this area. We recognize successful employment and training programs are often designed together with employers and workers, and we call on the ILO, in partnership with other organizations, to convene its constituents and NGOs to develop a training strategy for our consideration. Para 45. W agree on the importance of building an emploment-oriented framework for future economic growth... And welcome Global Jpbs Pact, and we commit our nations to adopt kay elements to advance the social dimension of globalization. US DoL asked to convene Employment and Labor Ministers, early 2010, consulting with labour and business, and building on the OECD Labour and Employment Ministerial meeting on the job crisis. Assess the evoloving employment situation, review reports from the ILO and other organizations on the impact of policies adopted, report on further desirable measures, and consider medium-term employment and skills development policies, social protection programs, and best practices to ensure workers are prepared to take advantage of advances in science and technology. 3

G20 training strategy Drivers of change - the “Why” On supply side: Demographic challenge Educational attainment Commitment to inclusive growth On demand side Globalization of markets Technological innovation Climate change The motivation. The WHY

G20 training strategy - the Core Messages Broad based good quality general education Seamless pathways from education to TVET to the world of work Employability through core skills, continuous learning and portability of skills – Enabling workers and enterprises to adjust to change Sustaining a dynamic development process: Use skills as a driver of change Policy convergence and coordination mechanisms Review of country experience shows that countries that have succeeded in linking skills development to productivity and employment growth have targeted their skills development policies towards meeting three objectives: The first two objectives – improving skills matching and helping workers and employers adjust to change - focus on skills development in the short-term or medium-term Obj one Objective one requires policies and institutions to ensure the matching of skills supply and demand. Skills policies need to develop skills that are needed by employers, and ensure the quality as well as the quantity of training. This objective is especially important for young people preparing to enter the labour market. Whatever investments made by young women and men, by their families, their communities, and public education services should prepare them for genuine jobs. Their training must be demand driven or these investments of time and money will not lead to good employment. Meeting demand for skills includes extending availability of training across all sectors of society – It means understanding and overcoming any barriers that women face in accessing training, it means extending training to the informal economy, in rural communities, and to disadvantaged groups. Obj 2 Objective two is based on the recognition that new products, markets, and technologies result in some skills becoming redundant. The ready availability and affordability of training in new skills helps insure against prolonged unemployment or underemployment in the face of change. Lifelong learning helps maintain the employability of workers. Maintain employability and adaptability through re-skilling and upgrading skills. And it helps ensure that enterprises are able to adjust to change because workers can learn new skills. This objective focuses on making it easier for workers and enterprises to move from declining or low productivity activities and sectors into growing, and higher productivity activities and industries. It also focuses on managing the impact of change efficiently and equitably so that workers and enterprises see their own goals and those of society moving in the same direction. Easing adjustment to change requires a strong foundation in basic education and core skills – literacy, numeracy, openness to learn – this endows workers with the capacity to continue to learn and respond to new challenges and opportunities throughout their working lives. Efforts in this objective focus on re-training services for midcareer and older workers, for displaced workers, for women re-entering the labour market, and for older workers to maintain their productivity The goal of inclusive development requires extensive outreach of skills and education programmes. Retraining and employment services for those who lose their jobs should be part of the social contract to share both the gains and the pains of change, enabling those in declining sectors to enter growing ones. Policies and institutions to meet this commitment require the active support of employers’ and workers’ organizations. Their efforts and effective social dialogue helps direct skills development towards maintaining workers’ employability and enterprises’ sustainability. provide incentives and opportunities for lifelong learning as a form of security against long-term unemployment in the face of technological and market changes , The third objective takes a longer-term perspective and focuses on anticipating and delivering the skills that will be needed in the future The fourth objective applies to all of the first three – it is about who we target, who we reach - about who has access to education and sikills development that is of good quality, that is relevant to their own aspirations and to the labour market. It is about affordability, about accessibility, and it links back the ILO’s work on skills to its fundamental objectives about social justice. HOWEVER... The potential benefits of training are not realised without job- rich growth

G20 Training Strategy Building blocks - the “How” Anticipating skill needs Participation of social partners Sectoral approaches Labour market information and employment services Training quality and relevance Gender equality Broad access to training Finance Assessing policy performance Review of country experience shows that countries that have succeeded in linking skills development to productivity and employment growth have targeted their skills development policies towards meeting three objectives: The first two objectives – improving skills matching and helping workers and employers adjust to change - focus on skills development in the short-term or medium-term Obj one Objective one requires policies and institutions to ensure the matching of skills supply and demand. Skills policies need to develop skills that are needed by employers, and ensure the quality as well as the quantity of training. This objective is especially important for young people preparing to enter the labour market. Whatever investments made by young women and men, by their families, their communities, and public education services should prepare them for genuine jobs. Their training must be demand driven or these investments of time and money will not lead to good employment. Meeting demand for skills includes extending availability of training across all sectors of society – It means understanding and overcoming any barriers that women face in accessing training, it means extending training to the informal economy, in rural communities, and to disadvantaged groups. Obj 2 Objective two is based on the recognition that new products, markets, and technologies result in some skills becoming redundant. The ready availability and affordability of training in new skills helps insure against prolonged unemployment or underemployment in the face of change. Lifelong learning helps maintain the employability of workers. Maintain employability and adaptability through re-skilling and upgrading skills. And it helps ensure that enterprises are able to adjust to change because workers can learn new skills. This objective focuses on making it easier for workers and enterprises to move from declining or low productivity activities and sectors into growing, and higher productivity activities and industries. It also focuses on managing the impact of change efficiently and equitably so that workers and enterprises see their own goals and those of society moving in the same direction. Easing adjustment to change requires a strong foundation in basic education and core skills – literacy, numeracy, openness to learn – this endows workers with the capacity to continue to learn and respond to new challenges and opportunities throughout their working lives. Efforts in this objective focus on re-training services for midcareer and older workers, for displaced workers, for women re-entering the labour market, and for older workers to maintain their productivity The goal of inclusive development requires extensive outreach of skills and education programmes. Retraining and employment services for those who lose their jobs should be part of the social contract to share both the gains and the pains of change, enabling those in declining sectors to enter growing ones. Policies and institutions to meet this commitment require the active support of employers’ and workers’ organizations. Their efforts and effective social dialogue helps direct skills development towards maintaining workers’ employability and enterprises’ sustainability. provide incentives and opportunities for lifelong learning as a form of security against long-term unemployment in the face of technological and market changes , The third objective takes a longer-term perspective and focuses on anticipating and delivering the skills that will be needed in the future The fourth objective applies to all of the first three – it is about who we target, who we reach - about who has access to education and sikills development that is of good quality, that is relevant to their own aspirations and to the labour market. It is about affordability, about accessibility, and it links back the ILO’s work on skills to its fundamental objectives about social justice.

Countries that sustain a “virtuous circle” link education, skills, decent work by… Coordinating! To close the gaps between… … basic education, vocational training, and the world of work … training providers and employers at sector and local levels … skills development and industrial, trade, technology and environmental policies … development partners Avoid skill gaps today and drive economic and social development tomorrow.

Action 1: Conceptual framework Indicators of skills for employability Inter-Agency Group on TVET: Working Group on Indicators – to improve countries’ evidence-based policy design and policy monitoring ILO contributions: Concepts and indicators on school to work indicators Labour Force Survey modules School-to-Work Transition Surveys

Action 2: Pilot Countries Action Plans on Skills for Employment Country selection criteria Seoul Agreement: “self selected countries” low-income countries Development Working Group accepted additional criteria: Country had asked at least 1 intl org for support on skills (evidence of eventual sustainability) Those intl orgs had mobilised some funds with which to respond Geographical distribution Current pilot countries: Malawi, Benin Additional proposed: Bangladesh, Haiti

Pilot Country Action Plans Skills for employability Hoped for benefits to Pilot Country Support implementation of national development strategy and employment objectives Benefit from, and to contribute to, knowledge-sharing on skills for employment Identify gaps or priorities for further support Improve skills for employment indicators Expectations from the Pilot Country Coordinate teamwork by the international organizations in support of the Action Plan (ILO, UNESCO, development banks) Willingness to share experiences, especially with other countries in the Region Strengthen the mechanisms or institutions for coordination among projects and across Ministries

Action 3: Public-Private Knowledge-Sharing Platform on Skills for Employment Meet constituents’ requests for analysis of WHY approaches and policies work – with what financial and human resources, over what period of time, with what complementary policies and institutions Design user-friendly format – meeting different audiences’ needs for different length of documents Use the Conceptual Framework and the Building Blocks as the organizational framework Build partnerships with the other international organizations – sharing knowledge products and maintenance costs

Potential Outcomes and Impact G20 Training Strategy expands visibility & outreach of ILO tripartite agreements on skills development strategy Knowledge-Sharing opportunities: Turin workshop on implementing the G20 Training Strategy, May 2011; Turin Technical workshop on skills indicators, March 2012 Joint ILO/UNESCO TVET reviews and tripartite workshops in Malawi, Benin and Haiti in 2011 Prospects to support inter-project coordination in pilot countries such as in Haiti, as planned for 2012 Prospects for some G20 Countries to invest in pilot country work, or extend work to other countries, for example Russia funding G 20 Training Strategy implementation work in a number of Asian countries Monitoring use of knowledge-sharing platform The motivation. The WHY

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