The latest OECD Labour Market Report, Employment Outlook 2021, highlights that the slow recovery of jobs entails a high risk of long-term unemployment and how governments have responded by harnessing the skills needed to keep the situation alive.
Data collected show that, in particular, the youth employment gap increased dramatically in 2020, with almost 3 million young people in OECD countries being NEETs compared to 2019. Adults are not in a better position: compared to 2 019.14 million people are currently inactive in OECD countries: this means people who are not working or looking for a job. The average period of unemployment also increased between 6 and 12 months.
A positive message in this dramatic pandemic situation is the response of national governments to the crisis, an increased awareness that this historic moment represents a unique opportunity “to restore more resilient labour markets and address long-term structural challenges exacerbated by the COVID-19 crisis”.
The current response, which is very different from that seen in previous crises over history, has not reduced resources: on thecontrary, Member State governments have allocated unprecedented recovery funds, which were prepared for the 5-10 periods of reconstruction works. An important example is the EU’s Recovery and Resilience Facility: EUR 723.8 billion (in 2020 prices) in loans (EUR 385.8 billion) and grants (EUR 338 billion) available to support reforms and investments undertaken by European Member States.
An OECD survey shows that in 2021, 53 % of countries increased support to jobseekers and 52 % increased support for matching skills and talent needs. Upskilling and reskilling of the workforce is clearly identified in the OECD survey as a tool to contribute to the faster recovery of people at higher risk of chronic unemployment.
Best practices in European countries
In terms of best practices, in some countries PES are implementing concrete examples of this approach. For example, in Ireland, the Ministry of Employment and Social Protection has created a link between workers made redundant since the recent closure and workplaces in the health, retail, life sciences, infrastructure and information technology, customer care and other sectors facing short-term staffing needs. TheLithuanianPublic Employment Service (PES) also collaborated with a large provider of Open Online Courses (MOOC) to offer free courses to unemployed adults in summer and autumn 2020. Thousands of unemployed adults who participated in e-learning activities have already been involved in this initiative. The Public Employment Services in Brussels have also developed an active campaign on their websites, using their newsletter to promote training offers (in particular basic digital skills and language learning) and motivate adults to use them. TheItaliangovernment has also set up a website that brings together various short courses that can help managers and employees develop their skills and competences for more efficient teleworking.
Several governments also worked with educational institutions to make rapid progress in providing online learning during the pandemic. For example,France launched free three months of online VET courses, including basic vocational school curricula and basic vocational training courses for professional qualifications, while in the Netherlands personal vocational education and training in small groups was organised for students who did not have sufficient digital resources.
Investments in upskilling and reskilling of unemployed and redundant workers have been recognised as key measures to support job-to-job transition in the recovery and to respond to changes in skills demand due to automation, digitalisation and structural change. More than ever, the current crisis has highlighted the importance of developing the skills needed to access various digital tools, including job search and online training.
Thecurrent crisis has highlighted the need to strengthen digital skills.
The crisis has highlighted that the continuous development of e-learning will be essential: as a result of social distancing policies, digitalisation trends have increased sharply and countries need to invest in digital training and skills.
This means basic digital skills, but also advanced digital skills: some countries with existing e-learning solutions have managed to train staff quickly at all levels, and massive open online courses (MOOCs) have been developed for all sectors around the world in recent months.
Basic digital literacy training can enable low-skilled jobseekers to acquire the digital skills that are currently needed in almost all occupations and which are essential for job search itself. Many countries have implemented programmes targeting adults with very low levels of ICT literacy.
Among the best practices reported in the OECD survey, Portugal is mentioned as a comprehensive set of digital education programmes to equip its workforce with the skills needed to succeed in the digital age, Activar.PT. Work with private stakeholders to quickly identify skills gaps and develop accredited training programmes for unemployed young adults and vulnerable groups in a wide range of training opportunities. At the same time, it introduced a digital guarantee to ensure that, by 2023, all unemployed people have a digital training offer appropriate to their qualification level and qualification profile.
In conclusion, the current crisis situation points to a strong and targeted direction by governments in equipping the population with the necessary digital skills, as confirmed in the OECD report: “Failure to address inequalities and exclusion is now likely to widen social disparities and negatively impact productivity and economic recovery”.