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Commission presents plan to close skills gap

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Published 24 November 2010, updated 15 February 2011

Member states must increase efforts to help workers learn the skills needed to do the jobs that will be created in growth sectors in the coming years, according to the European Commission, which yesterday (23 November) adopted its 'Agenda for New Skills and Jobs'.

The Commission is promising to work with member states on finding ways to ensure that there are enough people with the right education and skills to fill the jobs that will be created in the coming years.

Achieving a better match between the supply of skilled workers and the demands of employers is unavoidable as the EU cannot afford an unemployment rate of close to 10%, said the Commission when yesterday (23 November) it published a set of proposals for strengthening the EU labour market.

The 'Agenda for New Skills and Jobs' is the latest in a series of seven so-called 'flagship initiatives' to be developed by the Commission in the framework of the 'Europe 2020' strategy, which was adopted by EU leaders in June 2010.

"We need to equip people with the right skills for the jobs on the market today and in the future," said László Andor, EU commissioner responsible for employment, social policy and inclusion, presenting the proposals to the European Parliament in Strasbourg. "We know that even now some employers are struggling to fill vacancies because they cannot find people with the right skills."

EU officials anticipate that in the coming years there could be serious shortages of skilled workers in certain sectors like ICT (information and communication technologies) and health care.

Crisis is 'no excuse' not to act

Andor accepts that the current context is especially difficult as a result of the financial and economic crises, with a total of 23 million unemployed workers in the EU, representing 10% of the working age population.

"Yes, the crisis has wiped out millions of jobs. Yes we face increasing international competition. But that is no excuse to shy away from taking action," said Andor in Strasbourg. "On the contrary, it is a call to act and shape our future. Creating more and better jobs is in our hands."

The commissioner said that the 'Agenda for New Skills and Jobs' would make an important contribution towards helping the EU achieve its target, which was agreed as part of the 'Europe 2020' strategy, to increase the employment rate from around 69% to 75% of the working-age population during the next decade.

"We need to allow the workforce to generate new ideas and set up new businesses. We need to ensure that the younger generation can benefit from the social model we have developed. We need for all employees better job quality and working conditions," Andor said acknowledging that employment remains mainly a national competence.

The 'Agenda for New Skills and Jobs' sets out actions in four areas: the functioning of the labour market, skills, job quality and working conditions and job creation. The agenda proposes 13 specific actions at EU level to be carried out in partnership with governments, social partners and civil society.

Matching skills and opportunities

Education and training are seen as vital means to improve skill levels, not only for young people but also for workers of all ages who find themselves out of a job. This links in with the concept of 'lifelong learning' that the EU has been promoting since 2001, through programmes such as Leonardo da Vinci, which supports cross-border cooperation and exchanges in the area of vocational education and training.

Europe is facing an acute lack of highly educated and qualified workers in the fields of science, technology and engineering, which threatens to undermine the future economic competitiveness of the EU. The Commission anticipates that the ICT sector will witness a significant shortage of skilled workers in the next five years, with perhaps as many as 700,000 job vacancies remaining unfilled.

One of the actions that the Commission is planning to develop in this area is a new online tool called the 'EU skills panorama', to be launched in 2012. This will provide up-to-date information for jobseekers, workers, employers and public institutions, for example on which countries are experiencing shortages of workers in specific areas or occupations.

The Commission has identified specific sectors where it expects millions of new jobs to be created in the coming years, creating demand for workers that have particular skills and knowledge. These include 'green jobs' in areas related to clean and energy-efficient technologies, as well as 'white jobs' in the fields of health and social care.

Positions: 

Steven D'Haeseleer, director of BusinessEurope's social affairs department, welcomed the fact that "the New Skills and Jobs agenda recognises the importance of flexicurity policies and their positive effects during the crisis".

"However, the agenda is not sufficiently strong on job creation. Instead, it proposed a series of unjustified reviews on EU legislation linked to quality of work. For instance, in the case of the 2002 National Information Consultation Directive, the main challenge now is to ensure enforcement of this directive," D'Haeseleer said.

"More importantly, this is not the time to re-open a debate on job quality. The political priority should be on reducing unemployment. Furthermore, the open-ended single contract should not be launched as a one-size-fits-all solution. Contrary to the aim of reducing segmentation on European labour markets, it will further add to their rigidities," he added. 

Eurochambres, the association representing EU chambers of commerce, said it was disappointed with the Commission's 'Agenda for New Skills and Jobs', which it claims "falls short in addressing the root causes of unemployment and in some areas risks exacerbating the problem".

Arnaldo Abruzzini, secretary-general of Eurochambres, said: "Almost 90% of entrepreneurs agree that inflexible labour laws are a significant source of unemployment in the EU. We thought the purpose of the communication was to help sustain the economic recovery by easing labour markets, yet what the Commission is considering would make things worse."

Eurochambres also regrets what it calls "the Commission's continuing negative stance on so-called atypical work – temporary work, freelancing, short-term contracts, etc."

According to Abruzzini: "What the Commission still terms atypical is becoming increasingly typical.  Europe needs diverse work patterns and contracts if we are to increase labour market participation rates, entrepreneurial activity and growth."

Eurociett (the European Confederation of Private Employment Agencies) responded positively to the Commission's Communication on 'New Skills and Jobs'.

Annemarie Muntz, president of Eurociett, told EurActiv: "The Agency Work Industry welcomes the Commission's call for labour market reforms necessary to enact flexicurity policies. Part time and agency work jobs were the main drivers of job creation in the past 10 years and countries which have reformed their labour markets to allow flexicurity record the most success in job creation and in transitioning workers into quality jobs and across sectors in line with market need."

Eurociett provided data on the number of temporary vacancies in Europe for the Commission's first European Vacancy Monitor (EVM). The EVM will inform policymakers at European, national, regional and sectoral level as to where vacancies lie and what occupations and skill sets are most needed.

Tine Radinja, president of the European Youth Forum, told EurActiv: "It has been widely acknowledged that young young people for various reasons have been disproportionately affected by the crisis and that transition from education to labour market is malfunctioning. Therefore the European Youth Forum hopes this European Commission initiative will offer the opportunity to clearly address this Europe-wide problem and to propose measures that lead to comprehensive solutions."

"These should be strongly linked to the tools that have been already put forward by the Youth on the Move flagship initiative, as well as to other on-going processes in the field of education such as Education and Training 2020 strategic framework and modernisation of universities," Radinja added.

Radinja warned that young people were disproportionately affected by the crisis and that the transition from education to the labour market was malfunctioning.

"There cannot be a competitive, inclusive and socially sustainable labour market in Europe unless we ensure that young people are an active part of it," he said. "Included in the labour market and equipped with the necessary skills, young people can not only improve their private life chances, but also positively contribute at local, regional, national and EU levels," he added.

The European Trade Union Confederation (ETUC) supports the communication of the European Commission 'An agenda for New Skills and Jobs', but believes this agenda needs to be placed in a new employment strategy and a new labour market which observes and respects labour standards and social rights.

Background: 

In June 2010, EU leaders adopted the 'Europe 2020' strategy. This strategy follows on from the Lisbon Strategy for jobs and growth, which was originally launched in the year 2000.

The 2020 strategy provides a framework for the governments of the 27 member states, supported by the European Commission, to work towards shared goals in terms of creating jobs and promoting smart, sustainable and inclusive growth.

The 2020 strategy defines a series of targets that the member states have promised to work towards over the next decade. These targets include: increasing the employment rate from 69% to 75% of the working-age population; and reducing the number of people living in poverty from around 17% to less than 13% of the total population.

'An Agenda for New Skills and Jobs' is one of seven flagship initiatives being developed at European level in the framework of the 2020 strategy.

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