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PRODUCTIVITY IN LABOUR MARKETS A KEY DRIVER FOR GROWTH AND COMPETITIVENESS IN EUROPE “Employment and Skills” Roundtable Executive Briefing, 2014 think tank for the 21 st century

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PRODUCTIVITY IN LABOUR MARKETSA KEY DRIVER FOR GROWTH AND COMPETITIVENESS IN EUROPE

“Employment and Skills” RoundtableExecutive Briefing, 2014

think tank for the 21st century

TABLE OF CONTENTS

About this Executive Briefing 3

Europe’s Employment and Skills Landscape 4

The Productivity Challenge for Europe 6

Europe’s Skills for the Future 10

Duality within the European Labour Markets 14

The Role of Governments in the New Delivery Ecosystem 18

Conclusion 22

Acknowledgements 23

Key Contacts 25

References 26

PAGE 2 PRODUCTIVITY IN LABOUR MARKETS

This Executive Briefing builds on some of the key issues and insights explored in the study and presents outcomes from the European Centre for Government Transformation Roundtable on Employment and Skills, held in Brussels on 18 March 2014. The Briefing presents the debate through a thematic lens—addressing the productivity challenge for Europe, the skills for the future agenda, the duality of the European labour markets, and the role of governments in the new delivery ecosystem. Each topic includes insights and data based on Accenture’s research, statistics and analysis from the OECD and European Commission, as well as views from the Public Employment

Service (PES) experts who participated in the Roundtable. Please note that comments are not attributed to specific individuals.

“The EU is still far from having secured an inclusive and job-rich recovery: Member States and the EU should further step up their efforts to ensure that nobody is left behind as we try to exit the crisis.” European Commissioner of Employment, Social Affairs and Inclusion, László Andori

ABOUT THIS EXECUTIVE BRIEFING

In March 2014, Accenture launched a flagship study on Europe’s labour markets—“Towards World-Class Jobs and Skills in Europe”—exploring key themes and topics on the European employment agenda with a focus on how labour market productivity drives growth and competitiveness.

PAGE 3PRODUCTIVITY IN LABOUR MARKETS

EUROPE’S EMPLOYMENT AND SKILLS LANDSCAPE

Additionally, workforce participation rates among certain demographic segments, such as youth, are declining and putting a further curb on economic recovery. With over 3.5 million people under 25 years old out of workiii, a significant rethink and concerted action is required from policymakers to respond to the challenges in the European jobs and skills market.

Europe’s Labour Market – A ‘Job-less’ RecoveryEconomic recovery has been slower in Europe, compared to global trends. In the Euro area, employment grew by only 0.1% for the second half of 2013 while the unemployment rate remained at 10.7% in Q3 2013 (see Figure 1). In comparison, U.S. unemployment declined from almost 10% at the peak of the crisis (2009) to 6.7% in Q3 2013. Japan, with 3.7%

unemployment in Q3 2013, has had a relatively low and stable unemployment rate throughout the recessioniv.

The “two-speed” recovery in Europe has been clearly evident from the marked divergence in unemployment rates between countries such as Germany (5.1%) and the UK (7.1%) on the one hand, and Greece (27.5%) and Spain (25.6%) on the otherv. The impact across sectors has also been mixed with retail and IT performing better than manufacturing, in terms of minimising job losses (planned or incurred)vi.

In this volatile environment, there is a growing consensus among policymakers that jobs and skills need to be at the heart of a European recovery. Bold policy and delivery reforms are required to respond to the fundamental challenges in the labour market, and ensure Europe’s global competitiveness.

Figure 1: Unemployment rates (Q4 2007-Q4 2013) for selected economies

Europe is facing constraints to growth and prosperity from its ageing population, with the percentage of people in working age (aged 16-64) expected to drop from current rates of 65-70% to less than 60% of the total population by 2030ii.

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Europe’s Lagging SkillsEurope’s competitiveness is also threatened by the quality and availability of skills. Globally, Europe is lagging behind countries such as South Korea and Japan in key skills' areas, including literacy, numeracy, and problem solvingvii. However, even more concerning are the differences in skills proficiency between Member States. According to the Programme for the International Assessment of Adult Competencies (PIAAC), Finland, Netherlands and Sweden are

amongst the top performers for literacy and numeracy proficiency, whilst France, Spain and Italy score significantly below averageviii.

In terms of availability of skills, estimates show that Europe will experience substantial shortages in key sectors, including technology and science. According to the European Commission, there will be a shortfall of 900,000 ICT professionals in Europe by 2015ix. These deficiencies could have long-term negative effects on the growth prospects of the European labour market.

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THE PRODUCTIVITY CHALLENGE FOR EUROPE

Across Europe, productivity growth rates have been stagnant or trending down, with sharp drops since the onset of the crisisx.

THE ISSUES Productivity growth, like employment, has been much slower to increase in Europe compared to other economies. As observed in Figure 2, the growth of GDP per hour worked, an indicator of individual productivity, has been lagging in the Euro area compared to the OECD countries and the U.S.xi.

In some Member States, the situation is even more concerning. For example, Italy has been experiencing a steady productivity decline, with negative productivity growth since 2009, which hampers overall growth and competitivenessxii.

Given that in most European countries’ long-term productivity growth rate, defined as workers’ contribution to a country’s GDP (in constant 2005 US Dollars), is trending toward 0% (see Figure 3), analysis conducted by Accenture (as part of the European Centre for Government Transformation) estimates that, if there is no change to the current productivity and participation rates, standard of living —defined as real GDP per total population—is set to fall between 4% and 12% by 2030 across Europe (see Figure 4).

Figure 2: GDP per hour worked for selected economies

Source: OECD 2013

OECD

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Figure 3: Productivity growth rates in decline: Historical view of productivity growth (GDP / employed person) for a sample of 7 EU countries

Figure 4: Standard of living projection for Europe by 2030

Source: Accenture Research 2013

Source: Accenture Research 2013

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The Drag on ProductivityA key factor influencing productivity across Europe is labour regulations (such as stringent employment protection or high cost of hiring/firing), which limit employers’ flexibility to adjust labour output according to economic demand. For example, employers in some Member States (like the UK and Germany) have opted to maintain their headcount at reduced capacity (i.e., lower productivity), despite depressed demand, to avoid the cost of rehiring and training. Another factor that impacts productivity growth negatively is the slow adoption of technology to improve output at a lower cost base. Many European SMEs, for example, lag behind their U.S. peers in adoption of new technology.

The Quality of EmploymentSlow productivity growth also has an important impact on the quality of jobs and overall standards of living. Due to productivity pressures, many employers have lowered unit labour cost (ULC) to achieve competitiveness gains, which in practice has meant a decrease in real wages and a reduction in employees’ standards of livingxiii. Therefore, although many countries have benefitted from short-term measures to reduce operating costs, these have been at the expense of wage adjustments. In the long run, such gains from decreasing real wages will not be sustainable and will not lead to higher-quality employment. Thus, a key question for Europe’s policymakers is whether we want more jobs or better jobs.

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VIEWS FROM THE EXPERTSTo respond to the productivity challenge, actors in the jobs and skills ecosystem (i.e., policymakers, businesses and education providers) need to adopt a holistic, long-term view of reforms and invest in productivity-enhancing measures. A key focus should be up-skilling the workforce and innovating in high-value-adding industry sectors.

Working TogetherPolicymakers and businesses need to take concerted actions to ensure that future job growth also means sustainable growth and improvement to the standards of living. Furthermore, there is increasing consensus among policy officials that businesses should also take responsibility in providing productive, high-quality employment. Employers, including SMEs, need to have greater ownership of the talent pool and provide on-the-job training, invest in productivity-enhancing measures for their workforce (such as better use of technology tools), innovate, and ensure that working is financially rewarding and stimulating.

Government Interventions as a Catalyst for Productivity GrowthThere is a general consensus among Europe’s policymakers (represented at the Roundtable) that government needs to have a greater and more proactive role in improving the productivity of Europe’s labour force to rekindle growth and competitiveness. For example, in Ireland and the Netherlands, governments have adopted a strategic approach to deliver productivity gains by supporting key productive industries through labour market, economic, and education-system reforms and policies. Europe can also learn from global leaders in innovation and labour productivity, like Singapore. Its Workforce Development Agency (WDA) has a long-standing policy to improve the jobs and skills ecosystem by focusing on competitiveness. In particular, the WDA provides strong support for companies to invest in innovation and productivity through initiatives like the National Productivity and Continuing Education Council, the Productivity & Innovation Credit, and the Innovation & Capability Voucher.

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EUROPE’S SKILLS FOR THE FUTURE

Increased globalisation and new technological trends are radically transforming the European labour market. Two significant and interrelated trends threaten Europe’s ability to deliver the skills for the future.

THE ISSUES

The Skills MismatchFirst, increasing automation in the workplace has led to a reduction in middle-skilled jobs, a larger decline in low-skilled jobs and a corresponding growth in demand for high-skilled workers (Figure 5). Jobs in the service and technology sectors are forecast to increase at the expense of shrinking manufacturing and agricultural sectors. As a result of the changing composition of industry, the OECD estimates there will be

shortfalls of candidates with science, technology, engineering, mathematics (STEM), managerial, problem-solving, and soft skillsxiv. It is not surprising, therefore, that many employers find it increasingly difficult to recruit candidates with the relevant skills.

Some Member States face a greater skills mismatch than others. In the Netherlands, for example, where there is high demand for technical and soft skills, almost 70% of vacancies require higher or intermediate education and severe skills shortages are forecast for 55 out of 127 occupations in the next four yearsxv.

Figure 5: Evolution of employment in occupational groups by level of education globally

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Source: PIAAC OECD 2013

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A Matter of EducationSecond, the provision of skills for the future is also undermined by an educational mismatch where training and education is not aligned to business demand. According to Accenture’s Employers' Survey 2013, a majority of employers in the surveyed EU countries (e.g., 55% in Germany and 46% in the UK) are not confident that public investment in education and skills training is targeted to address current and future skills needs. An increasing number of graduates have struggled to find gainful employment (i.e., a position for which they are not overqualified). As a result, many young people realise that obtaining a degree does not necessarily result in a high-quality job, which has discouraged them from pursuing further education; thus exacerbating the problem even further.

Skills are a critical element in driving productivity growth. Countries that have a greater proportion of high-skilled individuals and focus on higher-value-adding industries have a greater productive output per worker. For example, in Italy, where, productivity has been lagging, the proportion of high-skilled workers is lower than the EU average and the rate of skills deterioration has been fasterxvi.

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VIEWS FROM THE EXPERTS The Roundtable experts agreed that to tackle the challenges outlined above, policymakers and PES in particular need to pursue several strategic priorities, namely:

Understand Business DemandGreater understanding of future skills needs is essential for reforming the job markets and education systems. As Accenture’s Employers' Survey 2013 shows, European employers are not confident that their governments are anticipating future skills needs (76% of French and 70% of Italian employers say that their government is not anticipating future skills needs). Technology has an important role to play in helping drive greater transparency and connectedness on the European labour markets. In particular, to enable greater understanding of labour market information, it is necessary to promote common qualifications standards, forecast demand and supply, supported by analytics capabilities, and match candidates more effectively to suitable jobs.

Connect ActorsA major issue for the European jobs and skills market is the lack of connectedness between the key actors: government, education providers and employers. Europe needs to reform its education system and make it relevant to the jobs and skills in demand. For this to happen, businesses need to work closely with educators to align curricula and develop apprenticeship programmes to create a pipeline of future workers. Policymakers should also engage with employers to understand future skills needs, trends within industries and seek to provide personalised solutions. This includes sharing labour market intelligence to help employers identify talent supply, assisting them in finding suitable candidates, and connecting employers to independent credentialing services. Employers could be offered incentives to increase recruitment through vouchers and tax breaks. Good examples of European PES' initiatives to connect and assist employers can be highlighted. For instance, the Spanish Public Employment Service (SEPE) has launched a programme to encourage dialogue between training centres and

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industry, aimed at identifying future skills needs and translating those into relevant training across the community. In the Netherlands, the Public Employment Service (UWV) is promoting the concept of “job carving”, which creates lower-skilled jobs by assisting employers to reshape employee’s job descriptions.

Empower Jobseekers PES, in collaboration with training providers and employers, should promote life-long training and continuous up-skilling for jobseekers, with a focus on those competencies that are most in demand. This is crucial to improve their employability and future productivity as well as the chances for sustainable employment. In addition, PES should embrace digital tools and platforms to deliver targeted training to jobseekers. Singapore’s approach, through programmes like the Workforce Training Support and the Lifelong Learning Endowment Fund, implemented by the WDA, offers examples of continuous training and up-skilling that start from school and are designed to complement a person’s entire work cycle until retirement.

Provide Career GuidanceAdditionally, career guidance and counselling for young adults is essential; schools should take responsibility in providing students with personalised and objective career advice, highlighting how their choices of skills specialisation will impact their future career. It is important to focus on vulnerable segments, like school dropouts, and provide more flexible paths in education (e.g., vocational education, apprenticeships). Recent experience in Flanders, Belgium, has shown that traditional education pathways do not always work, especially in cases of school dropouts. In such cases, personalised, early interventions often prove to be more effective at integrating people into the jobs and skills ecosystem.

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DUALITY WITHIN THE EUROPEAN LABOUR MARKETS

A key characteristic of the European jobs ecosystem is its duality— a two-fold development of the labour market, resulting from structural arrangements that create favourable conditions for participation of some, while limiting others (e.g., those out of work, youth, older workers, and women).

THE ISSUES One of the most devastating effects of the economic crisis has been the growth of long-term unemployment (those out of work for more than 12 months). Across Europe, almost every second unemployed person has been out of work for more than one year (approximately 12.5 million people are long-term unemployed)xvii. Such protracted periods away from gainful employment or training can cause social disengagement, severe skills deterioration and permanent exclusion from the labour market. Apart from this structural, long-term unemployment, some demographic segments have been particularly adversely impacted by the recent economic recession, namely:

YouthThe youth have been hit hardest by the economic recession, with unemployment rates for people aged 15-24 averaging 24% during 2013 (double the overall unemployment rate) and rates of not in employment, education or training (NEET) averaging 13% for the same yearxviii. Rigid labour market regulations in many EU countries protect long-term, permanent employees at the expense of new entrants, making it difficult for young people to join the labour market. Due to this duality of the labour markets, a large number of young people are engaged in temporary, shorter-term positions, especially in countries like Spain and Italy. This means that they are often excluded from the benefits of on-the-job training schemes and are usually the first to be made redundant

during economic recessions. Additionally, with an education system that is increasingly disconnected from the needs of employers, and a lack of opportunities for work experience, many young people face difficulties when trying to find employment after graduation. 48% of young jobseekers (aged 18-24) surveyed in the Accenture Jobseekers' Survey 2013 say that lack of work experience inhibited them from finding a job.

Older WorkersOlder workers also face employment challenges as a result of the duality of the labour market in Europe. Labour participation of older people is significantly lower than overall participation, with some countries facing levels of inactivity of more than 50% for people aged 55-65xix. Many companies prefer hiring younger people; for example, in the Netherlands, of the 23% of older workers (aged 55-65) who were looking for a job in 2011, only 2% were recruitedxx. Similar to challenges faced by the youth demographic, without adequate training and life-long learning opportunities, many older workers are at risk of skills deterioration and obsolescencexxi. At the same time, in a bid to increase participation of the ‘silver’ population, governments are implementing (or planning) reforms in the pension and social security systems to discourage retirement before the age of 65. This leaves many older workers in a difficult situation— without sufficient opportunity to continue active training and work, and without sufficient social protection.

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WomenWomen are another demographic group that has been impacted negatively as a result of the duality of the European labour market. With participation rates that are on average 12.1% lower than men for 2013xxii, the gender gap in employment remains a challenge, especially in Member States such as Italy, Portugal and Spainxxiii. Women are more likely to be involved in precarious forms of employment such as involuntary part-time employment (effectively underemployment). For example, in the

Netherlands, nearly 80% of employed women were employed on a part-time basis in 2012xxiv. Additionally, for many women, a barrier to entry is the phenomenon of “work does not pay” whereby ineffective tax and benefits systems, along with the high cost of childcare, deter women from moving from unemployment to employment. The Accenture Jobseekers' Survey 2013 reveals the extent of the problem— women surveyed in France, Germany, UK and Italy cited financial considerations as their main reason for not accepting a job offer.

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VIEWS FROM THE EXPERTSThe urgency and gravity of these issues is widely recognised by policymakers. To overcome the challenges, targeted policy interventions that address the structural imbalances of the European labour markets are needed, with a focus on:

Flexibility in RegulationsFirst, on the demand side, policymakers should improve the flexibility of the labour markets by introducing new legislation and harmonising existing legislation to allow employers to adapt and respond to business cycles (in particular through reducing taxation contributions, synchronising active and passive labour market policies). High tax wedges, rigid employment protection, the structure of unemployment benefits, and other regulatory imbalances

need to be addressed. This would allow businesses to respond rapidly to changes in demand whilst jobseekers are incentivised to seek and accept work. Spain and France are introducing such reforms in a bid to reduce the rigidity of the labour market and minimise the number of precarious employment contracts.

Personalisation of ServicesJobseekers also need to be provided with access to individual “pathways to success” and supported during transition periods (e.g., between jobs). Apart from a strong focus on up-skilling as a means for individual empowerment, labour interventions should be targeted to address individual needs. PES services need to become more personalised and tailored to specific demographic segments. Good examples of personalisation of services

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include Singapore’s individual learning portfolios and France’s plan for the introduction of personal training bank accounts (planned to be implemented from 2015). To address youth unemployment in particular, apprenticeships and work experience schemes such as the Youth Guaranteexxv have been implemented across Member States and have already achieved positive results in Spain and Italy.

Mobility of JobseekersPromoting jobseekers’ mobility is another key lever to alleviate some of the structural imbalances of the European labour market. One key measure necessary to improve mobility is the promotion of certification schemes for the recognition of qualifications across regions and borders. On EU level, the reform of the EURES platform, currently underway, will further

improve the common European job-search platform and provide jobseekers with better information on available jobs within the EU. On a Member State level, focusing on integration of labour migrants into the host country/region is essential to ensure that they are not ostracised and relegated to underemployment or working in the “grey” economy. In particular, assistance and counselling should be provided to overcome information, financial and cultural barriers for migrants. For example, Norway has developed an online portal that serves as a one-stop shop for information and links to local networks, offering mentoring support for labour migrantsxxvi.

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THE ROLE OF GOVERNMENTS IN THE NEW DELIVERY ECOSYSTEM

A growing consensus emerged from all our Roundtable experts: Governments and PES have a primary responsibility in orchestrating the reforms needed to achieve a world-class jobs and skills market.

THE ISSUESExternal and internal pressures require Governments in Europe to transform and deliver improved public services, particularly in relation to employment and education. Externally, with the advancements of digital technologies, consumers have become more informed and demanding; in the public sector, constituents' expectations for governments are also growing. Moreover, public attitudes towards the government have been deeply strained as a result of the tumultuous macroeconomic climate, following the recent recession. European citizens have little confidence that governments are doing enough to support job creation and only very few believe their governments are responding fast enough to meet employment and skills challenges. According to Accenture

Citizen Survey 2013, 72% of surveyed Europeans are not confident that their Government is acting fast enough to respond to the challenges in employment and skills.

Internally, governments across the EU have diverse, often incompatible priorities and regulatory compositions, which makes it difficult to coordinate a coherent, holistic approach to address the jobs and productivity challenge.

For instance, many Member States like Italy, have fragmented public labour market policy and delivery systems, with a variety of national and regional players who lack harmonisation in their approach, mandate, and understanding of the labour market issues. To overcome these challenges, it is important for governments to play a coordination role in managing labour market policies.

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VIEWS FROM THE EXPERTS The reforms needed within PES require a fundamental rethink of the roles and the structure of the delivery ecosystem. This includes re-shaping the role and competencies of national and regional PES providers. It also requires PES to put in place performance incentives based on successful outcomes to improve their organisational effectiveness. Finally, it includes the need for PES to promote their role and gain citizens’ trust.

The Need for Knowledge-Based PolicymakingTo achieve world-class jobs and skills markets in Europe, governments need to have greater insight into labour market needs and policies that

work. Greater transparency across all the relevant actors enables policymakers to grasp their role in addressing the issues. Use of new disruptive technologies can help to better analyse skills demand, allocate resources more efficiently and take strategic decisions based on insights, i.e., knowledge-based policymaking. A number of recent initiatives have helped to address these issues. In Italy, the INPS (National Social Security Institute) has set up a comprehensive information bank for labour market policymakers, which provides greater insight and transparency into active and passive labour policies nationally. Similarly, in Spain, SEPE has introduced a single, national employment portal to increase transparency and insight on the labour market and help PES better understand the issues that jobseekers face.

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The New Delivery ModelSuccessful implementation of labour market reforms that enable PES to provide high-quality services—depends on building the right delivery model. Organisations involved in implementing active and passive labour market policies should adopt a holistic view and be incentivised to collaborate to ensure successful outcomes for jobseekers (i.e., both job placements as well as improved skills). In particular, the centralised, top-down approach of PES delivery should be transformed to enable the best-placed actors, closest to the user, to deliver services. For example, in Spain, the state is responsible for enacting key labour market policies (mostly passive) but autonomous communities have the ability to shape their own policies and delivery, based on local contexts and jobseekers’ needs.

Incentivising Successful OutcomesFirst, PES’ performance assessment should be based on indicators that are oriented towards sustainable job outcomes. Making PES’ funding and budgets dependent on performance, rather than simply on the number of unemployed jobseekers processed, incentivises public officials to optimise interventions, collaborate with each other (on regional, national and international levels) and come up with more innovative solutions for jobseekers. Beside national assessments, it is also important for the EU to promote best practices across institutions, evaluate and benchmark Member States’ performance based on standardised indicators, highlight policies that have proven positive results, and provide financial and other incentives for modernisation.

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Innovation in the Operating ModelsSecond, there are increasing opportunities for PES to develop new operating models (e.g., Public Private Partnerships (PPP)) that can provide better delivery and greater efficiency at lower cost. For example, in Spain, PPPs will be introduced in 14 autonomous communities that will work with agencies to collaborate in future to deliver improved employment services. Best practices from other parts of the world include the National Skill Development Corporation (NSDC) in India. The NSDC is such a PPP model, with 51% industry ownership and 49% government, that has gone a long way in up-skilling people, mainly by fostering private sector initiatives in skills development programmes. This operating model has enabled NSDC to overcome issues with coordination and delivery of training on a large scale.

With greater insight into effective policies and greater innovation in delivery, combined with robust outcome-driven performance assessments, PES can provide more effective and more personalised services to jobseekers and employers.

Promoting the Role of PESFinally, it is important to promote the role of PES among jobseekers and employers. Public employment officials can improve their image by learning from similar organisations across the world that use innovative ways to promote their work. For example, to raise awareness and involvement in PES’ initiatives amongst jobseekers, the NSDC in India has created advocacy campaigns, TV reality shows and an e-skills database.

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CONCLUSION

PES experts are united that the key points for action should be; focusing on productivity; addressing the skills agenda; simplifying and harmonising regulatory environments; and rethinking the role of governments and public services to achieve a more transparent, connected and flexible labour market. In particular, governments need to put education as a key priority, with a focus on working closely with employers to respond to the changing employment landscape and future skills needs. On an EU level, the European Commission needs to participate in promoting mobility and harmonisation by mediating dialogue between Member States, highlighting benchmarks and best case solutions, and sponsoring new programmes. Member States should also focus on improving cross-regional and cross-border mobility by introducing transferable conditions and procedures along with assistance with relocation and settlement for labour migrants.

However, the challenges facing the European jobs and skills markets are multi-dimensional, requiring targeted and tailored solutions that respond to local realities and regulatory contexts. The learnings from the Roundtable highlight that

unlocking participation and productivity growth should be at the heart of European recovery and sustainable growth. Moreover, digital innovation, through solutions such as virtual labour markets, data analytics, personalised services, are essential for improving PES’ productivity and delivering tailored and efficient services to citizens; and thus, achieving a world-class labour market. Finally, important transformations in the operating models of PES and governments are required to enable new partnerships in an ecosystem of providers, each playing an important role in getting people back into sustainable jobs, identifying future skills needs and keeping the engine of productivity revving.

The economic crisis has put a severe strain on the European labour market. Yet, it also offers a unique opportunity to begin a positive transformation. Policymakers realise the urgency for change and the need to translate this into decisive reforms.

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ACKNOWLEDGEMENTS

A special thanks to all who participated in the lively discussion at this year’s Roundtable.

EU Representatives

Xavier Prats MonnéDeputy Director-General, DG Education and CultureEuropean Commission

Georg FischerDirector, Analysis, Evaluation and External Relations DG Employment, Social Affairs and InclusionEuropean Commission

Detlef EckertDirector, Europe 2020: Employment Policies DG Employment, Social Affairs and InclusionEuropean Commission

International Organisation

Sandrine CazesSenior Economist, Directorate for Employment, Labour and Social AffairsOrganisation for Economic Co-operation and Development (OECD)

Belgium

Paul DanneelsChief Information OfficerFlemish Service for Employment and Vocational Training (VDAB)

Anneleen PeetersDeputy Head of CabinetMinister of Finance, Budget, Employment, Flemish Government

France

Jean-Marie MarxGeneral DirectorAPEC

Germany

Wolfgang MüllerDirector, European RepresentationBundesagentur für Arbeit

India

Dilip ChenoyManaging Director and CEONational Skill Development Corporation (NSDC)

Ireland

John McKeonAssistant Secretary-GeneralDepartment for Social Protection

Italy

Salvatore PirroneGeneral Director, Active and Passive Labour PoliciesMinistry of Labour and Social Policies

Luca SabatiniGeneral Director, Unemployment and Income Support BenefitsNational Institute for Social Security (INPS)

Emerenziana SilenuHead, Employment and Labour Policies

Sardinian Ministry of Labour and Vocational Training

Netherlands

Fred PalingMember of the Executive BoardDutch Public Employment Services Agency (UWV)

Norway

Yngvar ÅsholtDirector, Research and AnalysisLabour and Welfare Service (NAV)

Haakon HertzbergHead of Section, PoliticsLabour and Welfare Service (NAV)

Singapore

Winston TohDeputy CEOWorkforce Development Agency (WDA)

Chee Lioy UDeputy Director Operations PlanningWorkforce Development Agency (WDA)

Spain

María de los Reyes Zatarain del ValleGeneral DirectorSpanish Public Employment Service (SEPE)

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KEY CONTACTS

Jan-Erik HunnGlobal Managing Director Accenture Human [email protected]

Ann MettlerExecutive Director of the Lisbon Council [email protected]

Olivier CostaDirector of Political and Administrative Studies College of [email protected]

Programme teamGaurav Gujral Programme Lead Delivering Public Service for the Future [email protected]

Stéphanie Lepczynski Associate Director at the Lisbon Council [email protected]

Irina Pencheva

Cristiano Colombaroni

Giacomo Buonpane

PAGE 25PRODUCTIVITY IN LABOUR MARKETS

i "Employment and Social Situation: Quarterly Review indicates little improvement despite first signs of recovery," European Commission, 31 March 2014. http://europa.eu/rapid/press-release_IP-14-346_en.htm?locale=en.

ii Accenture Research 2013.

iii Unemployment Statistics, Eurostat, European Commission, http://epp.eurostat.ec.europa.eu/statistics_explained/index.php/Unemployment_statistics.

iv OECD data, “Short-term labour market statistics,” 13 April 2014. http://stats.oecd.org.

v Eurostat 2014, http://epp.eurostat.ec.europa.eu/statistics_explained/index.php?title=File:Unemployment_rates,_seasonally_adjusted,_February_2014.png&filetimestamp=20140401075829.

vi EU Employment and Social Situation Quarterly Review,"March 2014. http://ec.europa.eu/social/BlobServlet?docId=11565&langId=en.

vii PIAAC Survey of Adult Skills – frequently asked questions," European Commission, 8 October 2013. http://europa.eu/rapid/press-release_MEMO-13-860_en.htm.

viii OECD, 2013. http://skills.oecd.org/documents/OECD_Skills_Outlook_2013.pdf.

ix “Grand Coalition for Digital Jobs,” European Commission, 2012. Accessed 28 February 2014. https://ec.europa.eu/digital-agenda/en/grand-coalition-digital-jobs-0.

x Accenture Research 2013.

xi Data from OECD 2014, available on http://stats.oecd.org.

xii Accenture Research 2013.

xiii "EU Employment and Social Situation Quarterly Review," March 2014. http://ec.europa.eu/social/BlobServlet?docId=11565&langId=en.

xiv OECD, 2013. http://skills.oecd.org/documents/OECD_Skills_Outlook_2013.pdf.

xv Information from UWV 2014.

xvi "PIAAC Survey of Adult Skills – frequently asked questions," European Commission, 8 October 2013. http://europa.eu/rapid/press-release_MEMO-13-860_en.htm.

xvii "Labour market and labour force statistics," Eurostat, Accessed 10 April 2014. http://epp.eurostat.ec.europa.eu/statistics_explained/index.php/Labour_market_and_labour_force_statistics.

xviii "EU Employment and Social Situation Quarterly Review," March 2014. http://ec.europa.eu/social/BlobServlet?docId=11565&langId=en.

xix “Employment rate by sex,” Eurostat, Accessed 31 March 2014, European Commission. http://epp.eurostat.ec.europa.eu.

xx Information from UWV 2014.

xxi "Preventing skill obsolescence," CEDEFOP, July 2012. http://www.cedefop.europa.eu/EN/Files/9070_en.pdf.

xxii “Female labour market participation,” European Commission, 2012. http://ec.europa.eu/europe2020/making-it-happen/key-areas/index_en.htm.

xxiii “Employment rate by sex,” Eurostat. http://epp.eurostat.ec.europa.eu.

xxiv “Female labour market participation,” European Commission, 2012. http://ec.europa.eu/europe2020/making-it-happen/key-areas/index_en.htm.

xxv "Youth Guarantee," Employment, Social Affairs & Inclusion, European Commission, Accessed 10 April 2014. http://ec.europa.eu/social/main.jsp?catId=1079.

xxvi Work In Norway The Official Guide, Accessed 03 February 2014. https://www.nav.no/workinnorway/en/Guide+for+EU+and+EEA+citizens/Get+started+in+Norway/Find+a+job.

REFERENCES

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PAGE 27PRODUCTIVITY IN LABOUR MARKETS

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ABOUT ACCENTUREAccenture is a global management consulting, technology services and outsourcing company, with approximately 289,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$28.6 billion for the fiscal year ended Aug. 31, 2013. Its home page is www.accenture.com.

ABOUT THE COLLEGE OF EUROPEThe College of Europe, founded in 1949 and based in Bruges (Belgium) and Natolin (Warsaw, Poland) was the first and is one of the most reputed institutes of European postgraduate studies, which prepares annually up to 400 students from over 55 countries to work and live in an international environment. The European Political and Administrative Studies programme offers a wide range of courses on the functioning and policies of the European Union. Read more: www.coleurope.eu.

ABOUT THE LISBON COUNCILThe Lisbon Council is a Brussels-based think tank and policy network committed to making a positive contribution by engaging political leaders and the public-at-large in a constructive exchange about the economic and social challenges of the 21st century. Incorporated in Belgium as an independent, non-profit and non-partisan association, the Lisbon Council is among Europe’s most authoritative and thoughtful voices on economic modernisation and social renewal. Its home page is www.lisboncouncil.net.

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