Tackling the skills mismatch through education and training

Raymond Keaney, ITT Dublin20 February 2014

Introduction

• What do we mean by the skills mismatch?• Skill deficit and skill underutilisation• The causes of skills mismatch• The consequences of mismatch on

workers, firms and the economy• What can be done to tackle mismatch?• Case study

What do we mean by skills mismatch?

• The mismatch between workers’ competencies and what is required by their job

• The discrepancy between what the education system delivers and what the labour market needs

Quintini, G. (2011), ‘Over-Qualified or Under-Skilled; A Review of Existing Literature’, OECD Social, Employment and Migration Working Papers, No 121, OECD Publishing

Skill deficit and skill underutilisation

• A skill deficit (skill gap) signals the inadequacy of a worker’s skills relative to the requirements of the job

• Skill underutilisation (over-skilling) points to the opposite phenomenon whereby a worker’s skills exceed those required by the job

Quintini, G. (2011), ‘Over-Qualified or Under-Skilled; A Review of Existing Literature’, OECD Social, Employment and Migration Working Papers, No 121, OECD Publishing

The causes of mismatch

• Adjustment lags of firms (skill demand)

• Adjustment lags of the education system (skill supply)

• Frictions in matching process (skill demand and supply)

Quintini, G. (2011), ‘Over-Qualified or Under-Skilled; A Review of Existing Literature’, OECD Social, Employment and Migration Working Papers, No 121, OECD Publishing

The consequences of mismatch

• At the individual level, it affects job satisfaction and wages

• At the firm level, it reduces productivity and increases on-the-job search and turnover

• At the macroeconomic level, it increases unemployment and reduces GDP growth

Quintini, G. (2011), ‘Over-Qualified or Under-Skilled; A Review of Existing Literature’, OECD Social, Employment and Migration Working Papers, No 121, OECD Publishing

Tackling mismatch

• Requires co-operation of those involved in generating jobs, acquiring skills and bringing jobs and workers together

• Adult learning

• Open and clear progressive paths of study

Quintini, G. (2011), ‘Over-Qualified or Under-Skilled; A Review of Existing Literature’, OECD Social, Employment and Migration Working Papers, No 121, OECD Publishing

A case study in tackling skills mismatch

• BA (Hons) International Hospitality & Tourism Management

• Developed by ITT Dublin in 2010

• Aims at providing learners with the knowledge, skills and competencies necessary for effective management within the international hospitality & tourism sector

Two step process

• Step One – consultation with employers, individual workers, local government, public employment services and the social partners

• Step Two – awareness of and sensitivity to the global trends producing changes in skill demands

Outcome from consultation process

• The consultation process identified the skills that new hires lack despite having a tertiary degree:

– Leadership and management skills– Communication and foreign language skills– Social skills and competencies– Information technology and presentation skills and– Numeracy and financial management skills

OECD (2012), OECD Tourism Trends and Policies 2012, OECD Publishing

Matching skills

• Work –based training • Internship programme

• The international dimension• International work placements• Erasmus and student intake (Germany, Italy, Finland....)

• Up-skilling of educators • Guest lectures• Site visits• Educator’s Development Programme

• Improving ties with industry • Industry advisory board

Conclusion

Tackling the skills mismatch requires:

• Overhauling of curricula• Up-skilling of educators• Providing quality experiential learning opportunities,

preferably in the workplace• Offering open and clear progressive paths of study