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Skills and employability for the ageing population christine evans-klock, global hr forum 2010.pdf, seoul, korea

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The demographic shift towards ageing societies is one of the key drivers of change in labour markets and in skills development systems. Globally, by 2050 one out of every three persons in developed ...

The demographic shift towards ageing societies is one of the key drivers of change in labour markets and in skills development systems. Globally, by 2050 one out of every three persons in developed countries will be over the age of 60. In developing countries, one out of every five persons will over the age of 60. What this means in the labour market is that instead of there being 9 persons of working age to support every person over the age of 50, by 2050 there will be only 4. Ageing societies in Europe and Asia especially are going to face labour shortages, as well as challenges for their pensions, health care, and social security systems. What are the options? Help persons stay employed longer? Increase labour market participation rates? Import labour from other countries? Improve the productivity of persons in prime working years? Curb discrimination of older workers? Prepare more workers for growing occupations in health care and services? All of these options have important implications for national skills development systems – in particular for targeting training to new groups who need to keep their skills up-to-date, for labour market information systems and employment services, and for combating myths and outright discrimination against older workers in training and in opportunities for decent work.

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    Skills and employability for the ageing population christine evans-klock, global hr forum 2010.pdf, seoul, korea Skills and employability for the ageing population christine evans-klock, global hr forum 2010.pdf, seoul, korea Presentation Transcript

    • Skills and Employability for the ageing population Global HR Forum 2010 Christine Evans-Klock Director, ILO Skills and Employability Department
    • Presentation 1. ILO skills development strategy 2. The demographic challenge 3. Applying the strategy to Older workers: Maintaining employability of older workers Lifelong learning and Training Employment services Fairness: Combating discrimination
    • Presentation 1. ILO skills development strategy 2. The demographic challenge 3. Applying the strategy to Older workers: Maintaining employability of older workers Lifelong learning and Training Employment services Fairness: Combating discrimination
    • ILO Agenda and mandate: Decent Work GOAL of PEOPLE everywhere for productive work in conditions of freedom, equity, security and human dignity ILO POLICY AGENDA, necessary elements: 1. Rights at work 2. Productive employment 3. Social protection 4. Voice and representation Global ADVOCACY to keep productive work and social inclusion at the heart of poverty reduction and fair globalization strategies
    • ILO skills development strategy: to move from a Vicious Downward Circle... Unavailable or low quality education and training: • Traps the working poor in low-skilled, low productive, low-wage jobs • Excludes workers without the right skills from participating in economic growth • Discourages investment in new technologies
    • …To a Virtuous Circle More and better skills makes it easier to: • Innovate • Adopt new technologies • Attract investment • Compete in new markets, and • Diversify the economy Which boosts job growth while at the same time improves productivity and social inclusion ILO Objectives: Skills development improves employability of workers, productivity of enterprises and the inclusiveness of economic growth
    • To sustain a “virtuous circle,” skills development policies serve 4 objectives 1. Match demand and supply of skills in the labour market 2. Maintain employability of workers and sustainability of enterprises in the face of change 3. Sustain a dynamic development process: Use skills as a driver of change 4. Social inclusiveness HOWEVER... Potential benefit of skills and entrepreneurship go unrealised in the absence of job-rich growth
    • Skills development: Shared responsibilities International Labour Standards, adopted by Government, Employers and Workers: Convention 142 on Human Resources Development (1975) Recommendation 195 on Human Resources Development: Education, training and lifelong learning (2004): Governments have primary responsibility for – education – pre-employment training, core skills – training the unemployed and people with special needs The social partners play a significant role in – further training – workplace learning and training Individuals need to make use of opportunities for education, training & lifelong learning
    • Coordination is critical for success To tackle the gaps between… … basic education, vocational training, the job market, and lifelong learning … skills providers and employers … skills development and industrial, investment, trade, technology and environmental policies Institutions for Coordination • Social dialogue • Inter-ministerial mechanisms • Local and sectoral skills councils • Value chains and clusters • Employment services & labour market information system
    • Social inclusiveness: Fairness and productivity Rural communities: improve access and quality of education and training Informal economy: promote transition of economic activities to the formal economy Disadvantaged youth: basic education, apprenticeships, employment services Persons with disabilities Older workers Women in all of these groups
    • Presentation 1. ILO skills development strategy 2. The demographic challenge 3. Applying the strategy to Older workers: Maintaining employability of older workers Lifelong learning and Training Employment services Fairness: Combating discrimination
    • G20 training strategy: Drivers of change On supply side: 1. Demographic challenge 2. Educational attainment 3. Commitment to inclusive growth On demand side 4. Globalization of markets 5. Technological innovation 6. Climate change
    • Demographic change, 2010-2050 Globally: ↓ birth rates and ↑ life expectancy → AGEING POPULATION Population aged 60 years and older will rise: • In more developed regions, from 22% to 33% • In less developed regions, from 9% to 20% Working age population – age 25-59 years: • Will fall in more developed regions, from 49% to 41% • Will rise in less developed regions, from 43% to 46%
    • Population aged 60 and over (billions) UN, Population Division, “World Population Prospects”
    • Population aged 60 and over, by region (millions) 1,400,000 1,200,000 1,000,000 800,000 '000 600,000 400,000 200,000 0 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 ASIA AFRICA LATIN AMERICA AND THE CARIBBEAN EUROPE NORTHERN AMERICA UN, Population Division, “World Population Prospects”
    • Demographic trends: Dependency ratios Number of persons of working age to support each person aged 65 or over: 2000: 2050:
    • Financial crisis →→ Youth crisis Youth unemployment in 2009 highest ever: • 81 million unemployed, out of 620 million 15-24 year olds, = 13% • Unemployment still climbing • Social hazard and lost productivity Young persons entering the labour market now face lifelong loss of earnings What do their societies lose? ILO, Global Employment Trends for Youth 2010
    • Presentation 1. ILO skills development strategy 2. The demographic challenge 3. Applying the strategy to Older workers: Maintaining employability of older workers
    • Ageing populations: Three major implications for skills & training 1. Economic growth will depend on productivity growth 2. Labour shortages create demand for higher labour force participation (and migration) 3. Gender issues and disability issues affect both productivity and equity
    • Productivity rates by region ILO, Trends Econometric Models, 2009
    • Policies to keep older workers productively engaged in world of work 1. TRAINING Retraining: to move from industries or occupations with declining productivity to those with rising productivity Skill upgrading: to keep up with new technologies within a job or occupation Older workers as trainers: experience equips older workers to mentor younger ones
    • Policies to keep older workers productively engaged in world of work 2. Employment Services To enter the labour market To transfer between jobs – Requires good labour market information systems and social dialogue Examples: Canada Japan
    • Policies to keep older workers productively engaged in world of work 3. Combating discrimination Myth: older workers have difficulty learning Evidence: With appropriate training, older workers learn just as easily as younger ones. Myth: investment in training older workers does not make good business sense because they retire soon Evidence: younger workers have higher turnover. Older workers tend to stay with their employer.
    • Policies to keep older workers productively engaged in world of work 3. Combating discrimination Older Workers Recommendation, 1980 (no. 162): – Promote equality of opportunity for workers of all ages – Provide access to training and retraining – Prevent discrimination in access to employment services – Measures to help older workers stay in employment – Measures to allow gradual transition into retirement – Make the age qualifying for pension flexible
    • Older workers - social security .. Demographic trends, labour force participation, and social security are intertwined. . ...Keeping older workers productively employed, requires Job-centred macroeconomic, trade and investment policies ... Extending productive work is no substitute for effective old-age pensions and social security
    • Global Jobs Pact Advice on training & retraining 1. Prepare displaced workers for the new jobs available in the recovery. 2. “Build back better” - use the downtime to invest in new skills or upgrading skill levels to boost enterprise productivity in the recovery. 3. Avoid skills gaps in public investment stimulus packages - infrastructure, green technologies, social services. Within these measures, meet needs of target groups – youth, rural areas, disabled persons, older workers In deciding on and implementing these measures, exercise social dialogue
    • Thank you Christine Evans-Klock Director ILO, Skills and Employability Department evans-klock@ilo.org “Skills for improved productivity, employment growth and development” at http://www.ilo.org/public/employment/skills “Employmentand social protection in the new demographic context” at http://www.ilo.org/emppolicy