1. New Skills for New Jobs: Action Now Professor Mike Campbell OBE Director of Research and Policy ETUC Conference International Trade Union House, Brussels 2 September 2010

2. A New Ambition We need a new Ambition, a new ‘Common Sense’: we need New Skills for New Jobs Our prosperity depends on Jobs and Productivity: Skills are vital to both We can and must do better – everyone needs to ‘step up’ 2

3. Economy Productivity/Competitiveness Employment/Reduced Economic Inactivity Individuals Job Entry and Sustainability Wage Return/Progression Job Quality/Satisfaction Employers Productivity Business performance Society Health Improvements Crime Reduction Participation Social Cohesion/Mobility Skills Development Economically Valuable Skills: The Benefits of Skills Development

4. The Value of Skills 4 Earnings by Educational Attainment (25-64 year olds) OECD Countries in the EU CountryBelow Upper SecondaryUpper SecondaryTertiary Austria66100157 Belgium89100133 Czech Republic74100183 Denmark82100125 Finland94100149 France85100149 Germany90100164 Hungary73100214 Ireland86100166 Italy79100165 Netherlands84100148 Poland84100173 Portugal67100177 Spain85100132 Sweden86100126 United Kingdom70100159 Source: OECD (2008) Education at a Glance (most recent data for individual countries)

5. The Value of Skills in the Recession 5

6. A New Ambition We need a new Ambition, a new ‘Common Sense’: we need New Skills for New Jobs Our prosperity depends on Jobs and Productivity: Skills are vital to both Yet Europe’s ‘inconvenient truth’ is that we are not sufficiently skilled We can and must do better – everyone needs to ‘step up’ 6

7. EU and OECD Countries: International Skills Benchmarks 7 Below Upper Secondary (Low Skills) Upper Secondary (Intermediate Skills) Tertiary (High Skills) Country% QualifiedRankCountry % Qualified RankCountry% QualifiedRank Czech Republic9.5 1 Czech Republic76.8 1 Canada48.3 1 Japan11.3 2 Slovak Republic72.9 2 Japan41.0 1 USA12.1 3 Poland67.6 3 New Zealand41.0 3 Slovak Republic13.0 4 Austria62.6 4 USA40.3 4 Canada13.4 5 Hungary61.2 5 Finland36.4 5 Poland13.7 6 Germany60.1 6 Scotland36.2 n/a Switzerland14.6 7 Switzerland55.5 7 Korea34.6 6 Sweden15.4 8 Sweden53.3 8 Norway34.2 7 Germany15.6 9 Japan47.6 9 Australia33.7 8 Finland19.5 10 USA47.6 9 Ireland32.2 9 Austria19.9 11 Norway44.7 11 Denmark32.2 9 Hungary20.8 12 Finland44.2 12 Belgium32.1 11 Norway21.1 13 Denmark43.3 13 England32.1 n/a Korea22.1 14 Korea43.3 14 UK31.8 12 Denmark24.5 15 Netherlands42.4 15 Sweden31.3 13 Netherlands26.8 16 France41.9 16 Wales30.1 n/a New Zealand28.4 17 Luxembourg39.2 17 Netherlands30.8 14 Scotland28.4 n/a Italy38.7 18 Switzerland29.9 15

8. 8 Below Upper Secondary (Low Skills) Upper Secondary (Intermediate Skills) Tertiary (High Skills) Country% QualifiedRankCountry % Qualified RankCountry% QualifiedRank England31.1 n/a Canada38.3 19 Iceland29.8 16 France31.3 18 Wales38.0 n/a Spain29.0 17 UK31.7 19 Greece36.9 20 Northern Ireland28.3 n/a Australia31.8 20 England36.8 n/a France26.8 18 Wales31.9 n/a UK36.5 21 Luxembourg26.5 18 Belgium32.0 21 Belgium35.9 22 Germany24.3 20 Ireland32.4 22 Ireland35.4 23 Greece22.7 21 Luxembourg34.3 23 Scotland35.4 n/a Poland18.7 22 Iceland35.5 24 Northern Ireland34.9 n/a Hungary18.0 23 Northern Ireland36.8 n/a Iceland34.7 24 Austria17.6 24 Greece40.4 25 Australia34.4 25 Mexico14.9 25 Italy47.7 26 New Zealand30.6 26 Slovak Republic14.1 26 Spain49.3 27 Spain21.7 27 Czech Republic13.7 27 Mexico66.7 28 Mexico18.4 28 Portugal13.7 27 Turkey71.3 29 Turkey17.9 29 Italy13.6 29 Portugal72.5 30 Portugal13.8 30 Turkey10.8 30 Source: OECD, Education at a Glance 2009, http://statlinks.oecdcode.org/962009061P1G001.xls, data relates to 2007.http://statlinks.oecdcode.org/962009061P1G001.xls Note: Distribution of the 25-64 year old population by highest level of education attained. Japan is adjusted compared to the published 2009 data based on the historical proportions published by OECD as data on low skills is no longer collected. EU and OECD Countries: International Skills Benchmarks

9. A New Ambition We need a new Ambition, a new ‘Common Sense’: we need New Skills for New Jobs Our prosperity depends on Jobs and Productivity: Skills are vital to both Yet Europe’s ‘inconvenient truth’ is that we are not sufficiently skilled Challenges and opportunities are growing more urgent, with major changes in our economy and labour market: demographics, globalisation, technological and social change We can and must do better – everyone needs to ‘step up’ 9

10. A New Ambition  Make the Case for Skills  Develop a balanced and coherent Action Programme 10

11. Proposed Lines of Action Better anticipate future skills needs and opening up to talent! Develop the right mix of skills! Bring the worlds of education, training & work closer together! Provide the right incentives for individuals and employers! Action Now ! Better anticipate future skills needs and opening up to talent!

12. Action Now  Agreement, Engagement and Sustained Commitment of the Social Partners  The role of Trade Unions:  Empowering the Workforce  Reducing Skills and Jobs Inequalities  Sector Councils  Employer Ambition  Business Strategy  Management and Leadership  Economic Policy and a ‘high added value’ economy  The VET Sector 12

13. A workforce with poor skills not only makes their own lives poorer, it makes all of our lives poorer ….. and a highly skilled workforce will not only make their own lives richer, it will make all of our lives richer Remember.......