PANEL 1B Solutions to the Skills Gap: Refocusing Education and Training

1. PANEL 1B Solutions to the Skills Gap: Refocusing Education and Training

2. Knowledge Economy Forum VICambridge April 2007 Panel 1B: Refocusing Education and Training

3. Challenges for Education and Training Systems • Focused on Vocational Education because: • VE reform is one of the most difficult issues in education policy worldwide; • VE is often ignored during discussions of secondary education reform • But VE must be articulated to Secondary and Tertiary Education and to Life Long Learning

4. Summary of Key Issues Issues and Propositions arising from report: Enhancing Labor Market Outcomes and Fiscal Efficiency, World Bank EU8 Fiscal Series (2007) Constraints encountered in 14 years of reform in New EU Countries

5. Early in the process of transition - background • Inadequately resources ( including needed materials and equipment) • Poorly qualified and motivated teachers; • Narrowly specialized vocational education tended to be provided too early. • Crisis in enterprises meant that employers could not afford to train or to pay for training and were not expanding recruitment.

6. Transition to markets - background • Changing Structure of Demand; • Changing Structure of occupations; • Narrow wage differentials affected incentives to acquire relatively low-level technical skills; • Institutions and instruments for managing VE were missing; • Quality controls were over inputs rather than outputs; • Social partner organizations were weak / discredited.

7. Vocational Education and Fiscal Efficiency (1) • A very large system: VE accounts for between 25 percent and 79 percent of upper secondary enrollment in the former centrally planned countries of the EU (EU8) • Indirect – through effect on productivity of labor and on economic competitiveness and growth • Direct – demand on public finance, through direct expenditure, support to employers and individual students

8. Vocational Education and Fiscal Efficiency (2) • Quality improvement of schooling at this level could contribute to competitiveness in skill-intensive sectors – to the benefit of growth rates and government revenue. • Increase in expenditure efficiency, incentives for more private provision in response to specific labour market signals and greater involvement of employers in financing and provision of VE could contribute to fiscal space.

9. Ranking (out of 117 countries) by innovation sub-index, EU8 countries, selected OECD countries, Chile, China and India: 2006 Source: World Economic Forum

10. Public Expenditure on VE Source: Country questionnaires

11. The unit cost of VE is much higher than that of general education. • Differences in student/teacher ratios – lower in vocational secondary schools • VE tend to have larger numbers of non-teaching staff • Larger premises – workshops • Dormitories • Proportion of students receiving stipends

12. Propositions about VE Reform (1) • It would not be possible or advisable to fund adequately a traditional VE system which would provide ready-to-work recruits with narrowly specialized skills for the economy’s enterprises.

13. Propositions about VE Reform (2) • One way to reduce costs would be to locate practical training entirely in-plant but this is increasingly difficult

14. Propositions about VE Reform(3) • EU8 employers’ traditional expectations of a fully-subsidized VE system delivering ready-to-work, specifically-skilled recruits are unreasonable • But: school system can deliver flexible and trainable recruits with broad transferable skills.

15. Propositions about VE Reform (4) • Traditional VE was the traditional answer to the question, 'What to do with the less able?' but this answer no longer convinces; • Benefits of avoiding premature tracking are now acknowledged (e.g. see Poland’s PISA results) • Later specialization more equitable PISA scores in reading literacy achieved by the 25th percentile of 15-year-olds, 2000 and 2003

16. Propositions about VE Reform(4):the Polish Hypothesis • Polish 15-year-olds who took the OECD PISA reading literacy tests in 2000 were already separated into general schools (for the successful) and vocational schools (for the failures). • By PISA 2003, Poland had lengthened the period of basic education and almost all who took the tests were in the final year of a shared lower secondary education. The unexpected improvement in the scores of bottom 25 percent may have many explanations but is at least consistent with the hypothesis that they benefited from not having been segregated.

17. Propositions about VE Reform(5) • Parents and students are showing an increasing preference for GE over VE • Why are parents & students ‘voting with their feet’? • Labor market results of VE (measured by unemployment rates & average earnings) are no better & often worse than those of GE. • The huge expansion of higher education in EU8 countries  ‘backwash effect’ on demand for GE

18. Gross enrollment rates, higher education, EU 8 countries,1990-2004 Source: UNICEF TransMONEE Database

19. Vocational/ technical as % of total secondary enrollment, EU 8 countries,1990-2004 Source: EUROSTAT

20. Some principles for reform of VE(1) • Do not try to recreate the old model; • Close or merge non viable schools; • Use need as the criterion for subsides;

21. Some principles for reform of VE(2) • Make all practical training in-plant; • Explore alternative sources of funding, but cautiously; • Encourage the growth of private training institutions;

22. Some principles for reform of VE(3) • Reform Higher Education Financing; • Move increasingly towards post-secondary VET; • Integrate rather than separate, and take equity seriously. • Transfer more of the cost of post-secondary training to beneficiaries

23. Conclusion • Propositions and Principles imply: • convergence between general and vocational education. • unified strategy for reform of upper secondary education as a whole – • Qualifications frameworks to smooth pathways from VE and Secondary Education to Tertiary Education • Competency based approach to education and training

24. Solutions to the Skills Gap:Re – focusing Education & Training Dr Muriel Dunbar Director European Training Foundation

25. Europe’s objectives • Strengthen links with working life & research, and society at large • Develop the spirit of enterprise • Improve foreign language learning • Increase mobility and exchanges • Strengthen European co-operation Europe’s challenge • Improve the quality and effectiveness of education and training systems in the EU • Make LLL accessible to everyone • Make our education and training systems more outward–looking as regards the rest of the world • Improve education for teachers and trainers • Develop skills for the knowledge society • Ensure access to ICTs for everyone • Increase recruitment to scientific and technical studies • Make the best use of resources • Open learning environment • Make learning more attractive • Support active citizenship, and equal opportunities and social cohesion Ref. European Council adoption of ‘Report on the concrete future, objectives of education systems’ 12.2.01

26. Europe’s Initiatives • European Qualifications Framework (EQF)* • European Credit Transfer in Vocational Education and Training (ECVET) • European Reference Framework for Key Competences for LLL* • Common Quality Assurance Framework (CQAF) • Adult Learning • European H.E. area ( Bologna Process) • European Institute for Technology

27. Features of EQF Encompasses all levels of education 8 reference levels based on learning outcomes A translation device to enable comparison between qualifications of different Member States MS should relate their national qualifications systems to the EQF by 2009 Progress in EECA on NQFs NQFs being developed throughout SEE C. Asia and S.Caucasus: regional co-operation on development of a pilot qualification framework in tourism sector Russia: qualification agency for VET being established at initiative of employers’ federation – draft NQF will follow

28. Key Competences for Lifelong Learning – a European Reference Framework Communication in the mother tongue Communication in foreign languages Mathematical competence and basic competences in science and technology Digital competence Learning to Learn Social and civic competences Initiative and entrepreneurship Cultural awareness and expression Research in Albania, Croatia, Macedonia, Montenegro and Serbia shows a shift is needed from teaching to learning: Lack of systematic support for development of key competences Changes to curriculum framework required Teaching content and environment need to change to allow for knowledge of a higher transfer value and for learning based on a high degree of learner activity and experience Formative assessment, self- and peer- evaluation gain in importance over summative assessment Challenge to teachers’ competences

29. Analysis of Adult Learning challenges in SEE Labour Market reviews in W. Balkans Creating networks of 1) social partners 2) Parliamentarians in W. Balkans Understanding the skills gap In EECA Developing skills profiles of prospective and returning migrants (Ukraine, Moldova, Albania) Implementing the European Charter for Small Enterprises in W. Balkans 2007 Analyses of Transition from Education to Work (Ukraine & Serbia)

30. Progress on implementing the European Charter for Small Enterprises in W. Balkans 2007 Charter has 10 policy dimensions including: • Education & training for entrepreneurship • Availability of skills Progress report (2007): « The gap between skills supply and the skills required by the market is growing. The W.Balkans countries have not yet established systematic tracking of training requirements relative to market demand. Furthermore, the issue of quality assurance for the training provided has not been effectively addressed. With increasing evidence of the links between quality manpower and SME performance, there is a need to give futher impetus to training initiatives. »

31. Transition from Education to work • Objective: To develop tools to analyse the transition from education to work in transition countries in order to better understand the links between education, training and labour market integration of young people. • Results: • A conceptual and analytical framework on transition from education to work • A methodology for a school – leaver survey for transition countries • An analysis of the transition from education to work in Serbia, Ukraine and Egypt based on the analytical framework • Results of school – leaver surveys in Serbia & Ukraine

32. Labour Market Reviews in W.Balkans Main trends of structural change: • Clear shift to services and de-industrialisation • Increasing share of the private sector to both GDP and employment as an outcome of privatisation and the entry of new private firms Skills required and job creation will depend on: • Continuation of the privatisation process and improved market oriented behaviour of enterprises • The development of the SME sector • The countries’ capacities to attract FDI and facilitate technological progress • Countries trade patterns – from low-skill to high-skill sector • Countries’ capacities to ensure balanced growth across regions

33. Interim results of project on Migration and Skills Objective: investigate the link between migration and education and skills General assessment: • Lack of data on migration and education • Lack of recognition of qualifications • Difficult to measure « brain-drain » impact • Skill shortages and oversupply as a result of migration not documented End product « Country Migration Profile » including: • Profile of typical potential migrants and returned migrants by socio-demographic data, education, skills, employment, income etc.

34. Recommendations for short-term measures to transform adult learning in SEE • An agreement within government of a timetable for increased resources to be spent on education and learning, specifying the share to be allocated to adult learning. • Establishment of a «Learning partnership » within government, bringing together relevant ministries and stakeholders. • Strengthening ministerial policy capacity to develop a comprehensive strategy for adult learning in consultation with key stakeholders. • Development of partnerships below national level. • Capacity-building for ministries, social partners and other stakeholders to engage in effective partnerships, using international experience and donor or expert assistance.

35. Networks in Western Balkans • Parliamentarians • Social partners • Attracting and retaining more people in employment • Investing in human capital through better education and skills • Social inclusion

36. THANK YOU For further information about the ETF please visit our website: www.etf.europa.eu

37. Knowledge and skills for competitiveness: The Finnish model PANEL 1B Solutions to the skills gap: Refocusing education and training Pasi Sahlberg

38. Competitive economy, well-performing education system Economic competitiveness (2006/07) • Switzerland • Finland • Sweden • Denmark • Singapore • USA • Japan • Germany • The Netherlands • UK • Hong Kong • Norway • Taiwan • Iceland • Israel

39. Competitive economy, well-performing education system Economic competitiveness (2006/07) • Switzerland • Finland • Sweden • Denmark • Singapore • USA • Japan • Germany • The Netherlands • UK • Hong Kong • Norway • Taiwan • Iceland • Israel Student achievement in (PISA 2003) Mathematics • Finland • Korea • The Netherlands • Liechtenstein • Japan • Canada • Belgium • Macao-China • Switzerland • Australia • New Zealand • Czech Republic • Iceland • Denmark • Sweden Reading literacy • Finland • Korea • Canada • Australia • Liechtenstein • New Zealand • Ireland • Sweden • The Netherlands • Honk Kong-China • UK • Belgium • Norway • Switzerland • Japan

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43. Progressive nation Human capital

44. Key elements of building knowledge and skills • Basic education • equal opportunities • same schooling for all • good teachers • creativity and identity • caring and guidance

45. Key elements of building knowledge and skills • Secondary education • choice • flexibility • lateral mobility • non-formal learning • career guidance • Basic education • equal opportunities • same schooling for all • good teachers • creativity and identity • caring and guidance

46. Key elements of building knowledge and skills • Higher education • high participation • building on solid base • cooperation and networking • Secondary education • choice • flexibility • lateral mobility • non-formal learning • career guidance • Basic education • equal opportunities • same schooling for all • good teachers • creativity and identity • caring and guidance

47. Key elements of building knowledge and skills • Higher education • high participation • building on solid base • cooperation and networking Risk-taking, creativity and innovation • Secondary education • choice • flexibility • lateral mobility • non-formal learning • career guidance • Basic education • equal opportunities • same schooling for all • good teachers • creativity and identity • caring and guidance

48. Key elements of building knowledge and skills • Higher education • high participation • building on solid base • cooperation and networking Risk-taking, creativity and innovation • Secondary education • choice • flexibility • lateral mobility • non-formal learning • career guidance • Basic education • equal opportunities • same schooling for all • good teachers • creativity and identity • caring and guidance Sustainable leadership

49. Education and training for skills development

50. Education and training for skills development • Building on solid ground