Identification and anticipation of skill requirements: Instruments used by international institutions and developed countries

Abstract

The effectiveness and efficiency of a national vocational education and training (VET) system depends, amongst others, on whether it provides its learners with the required skills now and in the future. These requirements have changed over the last decades and they are expected to change again in the future. National VET systems need to adapt to these changes in time to avoid costly skill mismatches as not having the right skills means lower wages and lower job satisfaction for workers, lower productivity and more hiring costs for employers, and lower economic output for the economy as a whole. Skill mismatches are omnipresent in developed countries: on average 45% of workers in 27 EU countries reported being under- or over-skilled in 2010. Skill mismatches can be reduced by certain policies, however these depend heavily on information about current and future demand for and supply of skills and corresponding mismatches. Therefore, this report gives an overview of the current mechanisms used by international institutions and developed countries to identify and anticipate the skills requirements of firms, and furthermore it shows how this information is then used for policy development and communication. Special attention is given to the identification and anticipation of skills of individuals with a Vocational Education and Training (VET) background, either at secondary or tertiary level.