OECD Skills Strategy: Investing In People’s Skills For .

2015/ISOM/SYM/006Session IIOECD Skills Strategy: Investing in People’s Skillsfor Inclusive GrowthSubmitted by: OECDSymposium on 2016 APEC PrioritiesLima, Peru10 December 2015

OECD Skills Strategy:INVESTING IN PEOPLE’S SKILLS FORINCLUSIVE GROWTHAndreas Schaal, Head of the Sherpa Office and GlobalGovernance Unit, OECD10 December 2015, LimaBuilding Inclusive Growth in the APEC Region To Achieve the Bogor Goals of open trade andinvestment Significant progress in trade and investmentliberalization and Facilitation (TILF) But less in Skills Development (ECOTECH) 2015 APEC Economic Leaders’ Declaration“Redouble our efforts to empower our peoplewith the tools to benefit from and participate ineconomic growth”skills.oecdBetter Skills, Better Jobs, Better Lives1

Why do skills matter?skills.oecdBetter Skills, Better Jobs, Better LivesSkills are a key driver of national productivity and growthLabour productivity and the use of reading skills at workadjusted for literacy and numeracy proficiency4.6NOR4.4IRL4.2USAAUTESP(log) Labour VKCZE3.4POLKOREST3.23lessUse of reading skills at workmoreSource: OECD Skills Outlook 2013.skills.oecdBetter Skills, Better Jobs, Better Lives2

Skills are key to the economic and social success of individualsLikelihood of positive social and economic outcomes among highly literate adultsIncreased likelihood (odds ratio) of adults scoring at Level 4/5 in literacy reporting high earnings, highlevels of trust and political efficacy, good health, participating in volunteer activities and beingemployed, compared with adults scoring at or below Level 1 in literacy (adjusted)International average3.02.92.62.62.52.3Odds ratio2.22.12.01.51.0High wagesHigh levels ofpolitical efficacyParticipation involunteeractivitiesHigh levels oftrustBeing employed Good to excellenthealthSource: OECD calculations based on the Survey of Adult Skills (PIAAC) (2012) (database).skills.oecdBetter Skills, Better Jobs, Better LivesWhat is the OECD Skills Strategy?skills.oecdBetter Skills, Better Jobs, Better Lives3

What do we mean by .oecdBetter Skills, Better Jobs, Better LivesOECD Skills Strategy: Implication for APEC EconomiesHow to unlock an economy’s skills potentialskills.oecdBetter Skills, Better Jobs, Better Lives4

Developing relevant skills for the futureWhich skills are mostrelevant for APEC’s futuredevelopment?What skills will APECcitizens need to thrive in arapidly evolving economy?How can the quality ofAPEC’s education andtraining system be raised?How can skillsdevelopment be moreinclusive?How can adults inAPEC economiesimprove their skills?skills.oecdBetter Skills, Better Jobs, Better LivesActivating skills supplyWhy is difficult forsome groups to getjobs?What are the mainobstacles faced bythose who want towork?How effective are thepublic employmentservices?Do labour marketregulations make itharder for people towork?Do social policiesencourage/discouragepeople to work?skills.oecdBetter Skills, Better Jobs, Better Lives5

Putting Skills to Effective UseAre people able to getjobs that use their skillseffectively?Do economic regulationslimit opportunities to useskills effectively?What prevents APECcompanies from usingskills more effectively?What main obstaclesprevent people usingtheir skills moreeffectively?skills.oecdBetter Skills, Better Jobs, Better LivesStrengthening the skill systemAre policy settingscoherent enough to deliverbetter outcomes?How could different levelsof government work moreeffectively together?How are differentstakeholders involved inthe skills system?Are skills informationsystems effective?Are the signals in theskills system strongenough?skills.oecdBetter Skills, Better Jobs, Better Lives6

What are the benefits to APEC ofadopting a Skills Strategy?IndividualsFacilitate transition from school to workIncrease employability and incomeImprove health and social outcomesStrengthen civil engagementImprove productivity and growthFirmsEnable firms to move up the value chainImprove competitivenessFoster innovationPromote job growthImprove quality of jobsEconomiesPromote economic growthIncrease foreign direct investmentStrengthen social cohesion and equityskills.oecdBetter Skills, Better Jobs, Better LivesAPEC-OECD Collaboration:Individual Approachesskills.oecdBetter Skills, Better Jobs, Better Lives7

Guiding principles for National Skills Strategyprojects Strengthening policy coherence on skills Whole-of-government approach Engaging all relevant stakeholders Collaboration between OECD and country Tailored to country context and priorities Cross-directorate OECD team National cross-ministry project team Challenging perceptions with evidence Drawing together experience within a country Learning from international comparisons Learning from other countriesskills.oecdBetter Skills, Better Jobs, Better Lives and insights from OECD analysisskills.oecdBetter Skills, Better Jobs, Better Lives8

APEC-OECD Collaboration:Considering international evidence skills.oecdBetter Skills, Better Jobs, Better LivesAPEC-OECD Collaboration:Collective ApproachesPotential areas of OECD contributionShort Term: Strengthening dialogue and knowledge sharing with relevantAPEC committee/working groups Co-host Skills Development workshop with HRD WorkingGroup in 2016: i.e peer learning seminars, seminar on thedevelopment of higher order skills Conduct projects with APEC groups to help implement 20152018 HRD Working Group Action Plan: i.e. comparative reporton skills in APEC economies drawing on PISA, PIAAC data Mid to Long term: Launch APEC-OECD Skills Development Program to supportAPEC to achieve sustainable and inclusive growth in the regionskills.oecdBetter Skills, Better Jobs, Better Lives9

For more informationTo discuss OECD’s work with countries on building more effective skillsstrategies contact: andreas.schleicher@oecd.orgTo learn more about the OECD’s work on skills visit: oecd.skills.orgAnnexOECD-Korea Skills Strategy Project10

Our journeyHow can acountrymaximise itsskills oecdBetter Skills, Better Jobs, Better LivesWhat are themain skillschallenges?What skillschallenges aretop priority?Presentation cworkshop(07.11.2013)What actionsneed to betaken and bywhom?Launch ofDiagnosticReport(05.11.2015)Skills Strategy - a collaborative projectOECDGOVERNMENT OF KOREADirectorate forEducation and SkillsMinistry of EducationDirectorate forEmployment, Labourand Social AffairsMinistry of Employmentand LabourEconomics DepartmentMinistry of Science, ICTand Future PlanningLocal Economic andEmploymentDevelopmentMinistry of Trade,Industry and EnergyDirectorate for Science,Technology andInnovationMinistry of Strategy andFinanceCentre for Tax Policyand AdministrationDirectorate for PublicGovernance andTerritorial Developmentskills.oecdBetter Skills, Better Jobs, Better LivesMinistry of PublicAdministration andSecurityKorea Research Institutefor Vocational Educationand TrainingKorea DevelopmentInstitute11

Korea’s Skills ChallengesDeveloping skills1. Tackling the overemphasis onacademic studies and highereducation2. Fostering entrepreneurshipand skills for a creativeeconomy3. Enhancing adult skills throughlifelong learning andeducationUsing skills effectively7. Improving the quality of currentand future jobs8. Reducing skills mismatches bymaking skills visible and usingskills effectively9. Identifying and anticipating skillsneeds to make effectiveuse of skillsActivating skills4. Activating women whilebalancing work and familylife5. Facilitating the school-towork transition for youth6. Activating older workerswhile improving their skillsand welfareStrengthening the skills system10. Promoting policy coherence andinter-linkages11. Strengthening whole-ofgovernment and whole-of-societyapproach to address skills12. Improving the coordination andcollaboration across levels ofgovernment to improve skillsoutcomesskills.oecdBetter Skills, Better Jobs, Better Lives12

OECD-Korea Skills Strategy Project. 11 skills.oecd Better Skills, Better Jobs, Better Lives Our journey Preparatory mission (27-29.08.2013) Presentation of preliminary findings (06.11.2013) National Diagnostic workshop (07.11.2013) Launch of Diagnostic Report (05.11.2015) How can a country maximise its skills potential? What are the main skills .