Skill up or lose out

by Andreas Schleicher
Deputy Director and Special Advisor on Education Policy to the OECD's Secretary-General

For the first time, the Survey of Adult Skills allows us to directly measure the skills people currently have, not just the qualifications they once obtained. The results show that what people know and what they do with what they know has a major impact on their life chances. On average across countries, the median wage of workers who score at Level 4 or 5 in the literacy test – meaning that they can make complex inferences and evaluate subtle arguments in written texts – is more than 60% higher than the hourly wage of workers who score at or below Level 1 – those who can, at best, read relatively short texts and understand basic vocabulary. Those with poor literacy skills are also more than twice as likely to be unemployed. In short, poor skills severely limit people’s access to better-paying and more-rewarding jobs.

It works the same way for nations: The distribution of skills has significant implications for how the benefits of economic growth are shared within societies. Put simply, where large shares of adults have poor skills, it becomes difficult to introduce productivity-enhancing technologies and new ways of working. And that can stall improvements in living standards.

Proficiency in basic skills affects more than earnings and employment. In all countries, adults with lower literacy proficiency are far more likely than those with better literacy skills to report poor health, to perceive themselves as objects rather than actors in political processes, and to have less trust in others. In other words, we can’t develop fair and inclusive policies and engage with all citizens if a lack of proficiency in basic skills prevents people from fully participating in society.

The case for acquiring and maintaining literacy skills is clear, but people’s proficiency varies widely. Roughly one in five adults in Japan and Finland reads at the highest levels on our test. In contrast, in Italy and Spain just one in twenty adults is proficient at that level, and more than one in three adults perform at or below the baseline level. And even highly literate nations have significant shallow areas in their talent pools. Across the 24 countries that took the test, more than 80 million people do not possess the most basic skills needed to succeed in today’s world. On top of that, in the United States, Poland, Germany, Italy and England, a difficult social background often translates into poor literacy skills.

And yet, the Skills Survey shows that some countries have made impressive progress in equipping more people with better skills. Young Koreans, for example, are outperformed only by their Japanese counterparts, while Korea’s 55 to 64 year-olds are among the three lowest-performing groups of this age across all participating countries. The results from Finland tell a similar story. But young Brits and Americans are entering a much more demanding job market with similar literacy and numeracy skills as their compatriots who are retiring.  The share of these countries in the global talent pool will shrink significantly over the next decades unless urgent action is taken both to improve schooling and to provide adults with better opportunities to develop and maintain their skills.

What our data also show is that actual skill levels often differ markedly from what formal education qualifications suggest. For example, Italy, Spain and the United States rank much higher internationally in the share of young people with tertiary degrees than in the level of literacy or numeracy proficiency among people that age. On average, young Japanese and Dutch high school graduates easily outperform university graduates in some other countries. In fact, in most countries at least a quarter of university graduates do not score higher than Level 2 on our literacy test, and are thus insufficiently equipped for what their jobs demand of them. Conversely, in Australia, Finland, Japan, the Netherlands and Norway, more than one in four adults without a high school degree have made it to Level 3 in literacy, which shows that people can, indeed, recover from poor initial schooling. Surely there are many reasons why skills and qualifications differ; but these data suggest that we may need to update and re-define our education qualifications.

We can’t change the past; but we can do something about our future. The Nordic countries, the Netherlands and Canada, for example, have been much better in providing high-quality lifelong learning opportunities, both in and outside the workplace, than other countries. They’ve developed programmes that are relevant to users and flexible, both in content and in how they are delivered. They’ve made information about adult education opportunities easy to find and understand, and they provide recognition and certification of competencies that encourage adult learners to keep learning. They’ve also made skills everybody’s business, with governments, employers, and individuals all engaged.

All this said, skills are only valuable when they are used effectively, and the Skills Survey shows that some countries are far better than others in making good use of their talent. While the US and England have a limited skills base, they are extracting good value from it. The reverse is true for Japan, where rigid labour-market arrangements prevent many high-skilled individuals, most notably women, from reaping the rewards that should accrue to them. At times, over-reliance on qualifications also makes it harder for those who have the right skills, but who did not have the same access to education as others, to gain entry into jobs where those skills can be put to full use. The data show that this is particularly true among migrant workers. Overall, the Skills Survey suggests that we can – and should – do better in matching the demand and supply of skills.

Figuring out how to get us there will not be easy, but the Skills Survey provides a foundation to build robust policies. It takes away excuses from those who are complacent, and it allows countries to set meaningful goals in terms of what’s achieved by the world’s leading skills systems.

Links:

OECD Skills Outlook 2013: First Results from the Survey of Adult Skills (2013)
Programme for the International Assessment of Adult Competencies (PIAAC) 
For more on skills and skills policies around the world, visit:
http://skills.oecd.org

Skills for the digital economy

by Simone Stelten
Consultant, Skills Beyond Schools Division, Directorate for Education and Skills

Digital economies are powered by skills. People with the high-end skills needed to invent and apply new technologies are in high demand the world over. At the same time, the portfolio of basic skills needed to navigate technology-rich environments and function effectively in our connected societies has expanded.

How severe is the shortage of ICT skills? And what needs to be done to fill the gaps?

Today, 6% of total employment in OECD countries consists of ICT-specialists and ICT-intensive occupations account for more than 20% of all employment. OECD data on Key ICT Indicators shows that countries differ considerably in the share of ICT-intensive employment, ranging from high levels such as 35% in Luxembourg or 28% in the UK to 15% in Portugal and Greece or 11% in Turkey (data for 2010). Growing skills shortages have become a global concern. The Manpower Talent Shortage Survey 2012 puts IT positions at number 5 on the global list of top 10 jobs that employers are having difficulty filling. Only three years ago, IT professionals did not even feature on this list.

Across the OECD the supply of higher education graduates from ICT-related study fields has stagnated or even declined. The share of all STEM (science, technology, engineering and mathematics) graduates declined from 22.7% in 2000 to 20.4% in 2010, indicating a long-term stagnation of the supply from highly demanded science and technology oriented fields. The share of computer science graduates among all graduates has stagnated at around 3% since 2000 (OECD data). Even in the United States, the homeland of computers, the share of computing graduates declined from 4.3% in 2005 to 3.1% in 2010. Similar declines in recent years can be observed in many other countries, including the UK and Germany, pointing towards a risk of ICT skills shortages in many OECD countries.

So what can employers do to fill the skills gap? The study “Building Competitiveness and Business Performance with ICT” from the business school INSEAD shows that firms, which operate in the ICT sector, need to combine the right ICT investments with strong technical talent to be competitively agile. Through the Grand Coalition for Digital Jobs employers have developed EU-wide initiatives, such as an online learning platform for ICT practitioners or open online ICT courses for secondary school teachers. Companies such as SAP set up study-programs, Microsoft will increase the number of apprenticeships and internships by 50% over 3 years, and Hewlett-Packard plans to train 500,000 IT-professionals globally by 2015. Clearly, government policy makers could do more to engage employers in meeting the skills challenges facing high value-added sectors.

What about ‘everyday ICT skills’? Survival in a digital economy now demands higher-level cognitive skills for understanding, interpreting, analysing and communicating complex information. The results of the OECD Survey of Adult Skills (PIAAC), to be published on 8 October 2013, will provide unique comparative data on the basic skills of adults in literacy, numeracy and problem solving in technology-rich environments. How to foster those skills effectively is the subject of another recent OECD report on Connected Minds: Technology and Today's Learners.

Tackling the ICT skills challenge will require new thinking and efforts to reach beyond ministerial silos and build partnerships with businesses, entrepreneurs and teachers. With its ‘whole-of-government’ approach to developing more effective national skills strategies, the OECD Skills Strategy offers a concrete roadmap for the future.

Links:
OECD Skills Strategy
OECD Survey of Adult Skills (PIAAC)
OECD data on Key ICT Indicators
Connected Minds: Technology and Today's Learner
Photo credit: Future technology / Shutterstock

Boys, girls and hypertext

by Marilyn Achiron
Editor, Indicators and Analysis Division, Directorate for Education

Computers, cell phones and tablets are now so much a part of our lives that we can’t even remember what life was like before them—much less figure out how we managed to get through the day without consulting them. The youngest students now surf the Net with the skill of cyber beach boys and text friends as easily as waving at them.

Or do they?

In 2009 PISA conducted a groundbreaking survey of digital literacy  among 15-year-old students. PISA wanted to find out whether boys and girls are as ready for the digital age as they—and we—think they are. As the latest issue of PISA in Focus shows, while many students may have the technological skills, not all have the cognitive skills to fully capitalise on technology to access, manage, integrate and evaluate digital information.

On average, PISA results show that student performance in digital reading is closely related to performance in print reading, meaning that those students who are proficient in reading texts on paper are also proficient in reading texts on a screen. But in some countries, such as Australia and Korea, students score significantly higher in digital reading than in print reading; while in other countries, notably Hungary, Poland and the partner country Colombia, students are better in print reading than in digital reading.

Perhaps the most interesting finding from this assessment has to do with the difference in digital literacy between girls and boys. Since the beginning of the PISA tests in 2000, girls have always scored higher in reading than boys–and by a substantial margin: the equivalent of one year of formal schooling. While this is still true for reading digital texts, the performance gap is significantly narrower: 24 score points compared with 38 score points in print reading.

A closer look at these results showed that there was a larger percentage of boys at the highest proficiency levels in digital reading than at the highest levels in print reading, and a smaller percentage of boys at the bottom proficiency levels in digital reading scale than at the bottom level in print reading.

What might account for this? Digital literacy involves more than using a computer and reading words, even if those words are on a screen rather than on a piece of paper. To be literate in digital reading, one must also be able to navigate easily through hypertexts, that is, construct one’s own text using embedded links to other texts and materials, rather than reading a text in predetermined sequence. Boys might be more interested–and have greater experience–in navigating through hypertexts than in reading a printed page.

In turn, that important finding could be used by parents, educators and policy makers to set in motion a “virtuous cycle” whereby encouraging boys to read more on line would lead to better digital reading proficiency which, in turn, would instill greater enjoyment of reading, which, ultimately, could lead to better reading performance in both print and digital media.

For more information:
on PISA: www.pisa.oecd.org
Full set of PISA in Focus: www.oecd.org/pisa/infocus
Students On Line: Digital Technologies and Performance, explores students’ use of information technologies to learn

Photo credit: ©Hemera/Thinkstock