IBEC & IGC Annual Careers Conference

Future Expectations in Ireland’s evolving economy

23 November 2010

Marie BourkeExpert Group on Future Skills Needs

Ireland’s Future Skills Needs

Outline of Presentation

• Work of the Expert Group on Future Skills Needs

• Sectoral Studies

• National Skills Bulletin

• Changing Nature of Skills

• Key messages

EGFSN Mandate

• Advise Gov. on projected skills requirements at national & sectoral levels & make recommendations

• Advise Gov. on associated priority training requirements

• Advise on any skill requirements that cannot be met internally so must be met through migration

• Advise on developments in training quality elsewhere & on adaptations to training provision here

• Make recommendations on how training systems & delivery mechanisms might be adapted

• Respond to any request for advice to the Minister on the National Training Fund

• Inform members of progress made in the implementation of recommendations

Food & Beverage Sector

• Gross Value Add €6.9 b (2007), 4% national GVA• Exports: - €8.2 b (2008)

- Increase of €1.2 b since 2003- Predicted to grow to €9.5 b by 2011

• Employment- 50,000 people employed directly in 2008- further 60,000 indirect- plus 120,000 farmers

• 586 enterprises (2006) - 93% Irish owned- The 7% foreign owned. - 25% of employment

• 39% (20,000) employed at Plant/Machine Operative level

• 62% (30,000) - low or no level of formal 2nd level education –

11% higher than national average

• % of employees with low–level education in decline

• Those with 3rd or 4th level qualification increasing

Profile -Food & Beverage Sub-Sectors

Meat Fish Fruit & veg DairyGrain / animal feeds

Drinks Other foods Total

GVA €745m €93m €81m €854m €160m €1,512m €3,516m €6,961m

Employees 14,300 2,000 1,500 4,500 2,500 4,300 13,000 42,100

Sector prospects

↑↓ ↑ ↓ ↑ ↑ ↑ ↔

Sub-sector – GVA & number of employees

Food & Beverage Sector Skills Gaps Identified

• R&D, New Product Dev/ existing product renovation in SMEs

• Up-skilling of operatives in basic skills

• Commercial awareness

• Business skills for owners and managers in SMEs

• Dealing with multiples

• Brand management

• Financial, commercial & business acumen across all functional areas

• Succession & second tier management development

Wholesale & Retail Sector

• Accounts for approx. 11% of Gross Value Added

• Employs 270,000 - 14% of total employment

• Significant occupational mix, diverse range of skills

• Increasingly professional

• Flexible - good employment opportunities for all skills levels

• Potential for entrepreneurship

• Source of transferable skills for other sectors of the economy

7

Projected employment to 2016

8

Average annual skills demand 2011-2016

9

Wholesale & Retail Sector Skills Issues

10

Biopharma-PharmachemSector Profile

11

• Exports: €42 billion (2009)

• Employment: 25,300 (2009)

• Indirect employment: 24,000 (2009)

• Corporation tax contribution: > €1 billion (2008)

• Highly skilled labour force – educational attainment levels higher than national average

• Workforce concentrated in 25-44 age group

• Greater proportion of males than females in labour force –60% male, 40% female

Biopharma-PharmachemOccupational Profile 2009 vs 2015

12

2009 2015

Source: Analysis by SLMRU based on CSO data Source: SLMRU, FÁS

The Green Economy - Six Sub-Sectors

Innovative, High-Value Products & Services

'Smart Green Solutions Housing

Environment

Transport

Industry

Consumer Products

Bio Diversity

Sustainable development delivering economic, social & environmental benefits

Renewable Energies

Efficient Energy Use &

Management

Water and Waste Water Treatment

Waste Management Recovery & Recycling

EnvironmentalConsultancy

Services

'Green' ICT

Anticipated Total Sector Employment – two Scenarios

Green Economy Sub-sectorsKey Competency Requirements

Core Professional Skills

>Business Skills - business

development, finance, sales & marketing

>Engineering & High-Level ICT

>Sustainable Building - new materials &

technologies

People Skills

▪ Entrepreneurship

▪ Leadership

▪ Critical Thinking

▪ Communications

▪ Teamworking

▪ Customer Service

Organisational Skills

▪ Initiative/Adaptability

▪ Creativity & Innovation

▪ Project Management

▪ Decision Making

▪ Applying theory in Practice

Technical Skills

▪ Commercial Awareness

▪ ICT Proficiency

▪ Maths Proficiency

▪ Systems Knowledge

▪ Financial Awareness

▪ Tendering & Contracts-

▪ Health & Safety

Green Economy Sub-sectorsSkills Gaps Examples

Across all Companies

• Managers – business development, sales & export marketing skills, finance, project management , human resource planning

Renewable Energies

• Power Engineers – for the development of electricity grid into a ‘smart distribution network’- core engineering skills with a bias towards electrical engineering combined with ICT/business skills

Efficient Energy Use & Management

• Skilled Workers with system knowledge of types of renewable energy systems – providing advice to households on the optimum system to install and its expected economic payback

Other EGFSN Sectoral Reports

Common themes• Demand for High-level Mathematical, Technical & Specialist Skills• Issues around breadth and depth of skills • Low levels of industry-academic collaboration/ interaction• Need for specific modules, e.g. lean mfg, Supply Chain Mgt., business

acumen• Need for internship / placement opportunities within companies

17

Growth in Export Led Sectors

• Software & ICT

• Life Sciences – Pharma, Biopharma & medical devices

• Cleantech - Construction & Environmental Services & Energy

• International Financial Services

• Internationally Traded Services – Business Services

• Digital Media & Content Industry

• Food & Beverages

Within Occupations there is likely to be demand for:

– Increasing Breadth of Knowledge

– Increased Share of Knowledge Work/Reduced Share of Routine Work

– Rising Qualification & Technical Skill Requirements

– Importance of Continuing Learning

– Significance of Regulation

– Skills for Dealing with Others

Enterprise Strategy Group

– Management Skills

– Sales and Marketing Skills

– Language Skills

– R&D Skills

Changing Skills Requirements –Importance of Lifelong Learning

Importance of Arts, Humanities, Business and Social Sciences

• Underpin sectors such as finance, business, legal, communications, cultural, tourist and education and social services

• Knowledge of foreign languages and understanding of world cultures can be an asset to any exporting enterprise

• Understanding of consumer and natural behaviours

• Hybrid and Blended Skills

• Linking with the Natural Sciences

• Specialist/technical skills, with breadth of understanding of others areas –

interdisciplinary understanding & ability to work with other disciplines• People-related skills - communication, interpersonal, team working,

customer-service skills• Conceptual & organisational skills - collecting & organising information,

problem-solving, planning & organising, learning-to-learn skills, innovation & creativity, systems thinking

• Prepared for Continuing Learning – will have many jobs during working

career, may change careers, may occupy a role that doesn’t exist now

• Knowledgeable about the significance of Regulation, Governance &

business ethics

• Flexible, good attitude & aware of workplace expectations

• Entrepreneurial

Qualities/Competencies required by Enterprise

21

• Demand for certain high-skilled &‘experienced’ people is there even in less buoyant market

• There is & will be significant future demand for a wide range of STEM occupations – drivers of economic growth

• Enterprise perspective, ‘education & skills’ is a key part of Ireland's value proposition to overseas MNCs

• High level mathematical skills are required in several key occupations -mfg & services

• Engineering skills have been highlighted by enterprise as a critical issue

National Skills Bulletin

• Vacancies declined but still remain - even in recession, there is demand for recruits in occupations employing large nos. where replacement turnover is ongoing feature (sales assistants, clerical/accounts, security, hairdressing, catering & caring services)

• Part-time /temporary positions increasing, Full-time positions decreasing

• Competition is increasing

• All occupations are becoming more knowledge-based – increasing breath of knowledge, rising technical qualifications, regulatory requirements & ability to continually learn

• Requirement for experience is increasing – professional & managerial – any skills shortages are confined to areas for people with 3rd level qualification, specific expertise & work experience

23

Skills Demands

Employment & Skills Outlook

• Pharma, medical devices, ICT services, globally traded services, environmental industries expected to hold up.

• Particular pressures on construction, print and packaging, primary food, retail, local services, traditional manufacturing, financial services, tourism & leisure

• Multinationals – Consolidating, repositioning and evaluating global operations.– Success will be measured by job creation and job retention

• Indigenous enterprises– Strategic management skills and experience are essential.– Niche sectors will perform strongly (life sciences, software, environmental

goods & services) – May be an increased interest in start-ups

• The need for upgrading skills has not changed – industries still moving on same paths, though maybe not as quickly

24

Key Messages

• Education, training, & skills - crucial for the future of economy

• Need to balance current concerns with longer-term goals

• Skills requirements are increasing across & within occupations – even

those that may be considered low skilled

• All disciplines contribute – STEM & AHSS

• Skills development is not limited to qualifications - needs continuous

learning & ability to adapt

• Learners should engage in areas that suit their talents and interests &

take responsibility for their education, training and lifelong learning.

Labour Market and Educational Attainment

Food for Thought

• Educational Attainment - key

• Build up Competencies (Voluntary & Social interaction)

• Some top jobs advertised in last year did not exist 6 yrs. ago

• Build capacity of individuals to fill roles we may not yet know

• Education to Drive the future economy not just fill jobs

• Think about being an employer not just an employee

• Importance of Maths across many occupations

Thank you!

Expert Group on Future Skills Needswww.skillsireland.com

Forfáswww.forfas.ie

Ireland’s Future Skills NeedsOutline of PresentationEGFSN MandateFood & Beverage Sector�Profile -Food & Beverage Sub-SectorsFood & Beverage Sector Skills Gaps IdentifiedWholesale & Retail Sector �Projected employment to 2016Average annual skills demand 2011-2016Wholesale & Retail Sector �Skills IssuesBiopharma-Pharmachem �Sector ProfileBiopharma-Pharmachem �Occupational Profile 2009 vs 2015The Green Economy - Six Sub-Sectors Anticipated Total Sector Employment – two Scenarios Slide Number 15Green Economy Sub-sectors�Skills Gaps Examples Other EGFSN Sectoral ReportsGrowth in Export Led SectorsSlide Number 19Importance of Arts, Humanities, Business and Social SciencesSlide Number 21Slide Number 22Skills DemandsEmployment & Skills OutlookKey MessagesLabour Market and Educational AttainmentFood for ThoughtThank you!