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1.1 Skills for the future: managing opportunities

 

In 2018, the ETF hosted the international conference ‘Skills for the future: Managing transition’. The conference looked at the effects of global trends such as technological change, digitalisation, automation, globalisation, migration, demographic and climate change on individual countries, in particular ETF partner countries. The effects of global trends on a country depend on the national context; the economic structure, involvement in international trade, degree of technology and digitalisation, demographics and the impact of migration flows. Another important factor is the education system, its structure and capacity to provide qualified labour to drive innovation and productivity growth. But the future of a country is also shaped by the choices that are made. Countries can take advantage of global trends by seizing opportunities and transforming challenges in assets. 



People in partner countries are generally positive about the future, at least, that is the finding of a survey that ETF carried out prior to the 2018 conference to gather opinions and perceptions of individual people on the future, particularly the future of work and skills. 564 persons, most from partner countries and with a good balance of gender and age, completed the simple questionnaire. Respondents were a mix of employers, employees, students, teachers, self-employed, public officials and civil society representatives. 95% hold a university degree. The respondents are generally positive about the future, with 59% of respondents from partner countries believing that the future will be better. 94% think that their job or area of study will exist in the future but 84% believe that their job will be affected by technology, and they see that as an opportunity. All teachers and all employers agree that technology will affect them a lot. Digital skills, creativity, analytical and communication skills are considered the most important skills for future jobs. Online portals would be the most used tool to find a job. Flexible working hours and a stable long-term contract are the most important working conditions mentioned by respondents, while geographical location is the least important. People are potentially mobile and flexible, and 83% of respondents would like to work or study in another country - 78% would change occupation if needed. In all, 79% of participants from ETF partner countries are ready to change occupation, more than those from other countries. Young people are critical about their education though. 77% of those below 29 are of the opinion that their education has not prepared them sufficiently for future jobs. 



Opportunities for new jobs and skills sets

 



If people in partner countries are generally positive about the future, what then are the opportunities in their countries? An internal ETF document looks at opportunities in five domains.

1) Further integration in global value chains: ETF partner countries are well integrated into the global economies and their economic interdependency is growing. The majority of partner countries participate in Global Value Chains1 (GVC) , especially in sectors such as agriculture, processed food products, plastics, textiles, metal products, electronic equipment and motor vehicles. In a stimulating business environment, enterprises could upgrade their position in the value chain, develop linkages with domestic producers and help sharing knowledge and innovation. Examples of countries that are already heading in this direction are Tunisia (motor vehicle and aeronautics industries) and Egypt (ICT and automotive). 

 1 The term ‘value chain’ refers to the processes involved in developing, designing, producing, marketing and distributing a product. from The ‘chain’ connects upstream activities (research and development, for example) with downstream ones (assembly, distribution, marketing and after-sales service). GVCs are borderless by definition, operating across many countries, whether in one geographical region or in different parts of the world.

 



Success story from Egypt: Blended Entrepreneurial and manufacturing technologies



The Egyptian Automotive Feeding Industry supplies car assemblers in Egypt since the 1950s and has exported to the global market since the 1990s. Recently, Egypt has signed a Euro-Med agreement, which provides new opportunities on the EU market and enlarges opportunities for global sourcing. The Blended Entrepreneurial and Manufacturing Technologies project (BEMT) supports young entrepreneurs in Egypt to set up knowledge-based start-ups to increase the number of locally manufactured products for the automotive feeding industry. Universities and industry partner to develop training that supplements university education with practical expertise in manufacturing technologies blended with small business development knowledge. The training is based on lifelong learning principles and has been implemented in Egyptian universities. So far, 150 participants followed training and six start-ups have been realised. BEMT is co-funded by Erasmus+. 

 

2) Automation and digitalisation: automation can pose a challenge for partner countries, but can also raise productivity and generate new tasks in old jobs with higher quality standards and more sustainability. Established industries, for instance in the oil and gas, aviation, transportation and food industry, could boost a shift towards more knowledge intensive and higher value-added activities and the emergence of smaller companies.  The rapid digitalisation of services is already generating high demand, not only for ICT specialists but also for professionals who can combine digital and STEM skills with traditional subject expertise. All this requires major changes in workers’ job profiles.

 



Success story from Palestina: From Unemployment to Life of Giving



The Hebron Chamber of Commerce and Industry (HCCI) started an incubator project to empower young people in the Hebron area. In its first year, in 2018, 136 entrepreneurs received training and six sustainable start-ups were established, creating 26 jobs. Among the new start-ups are: Super Code, a company for web and graphic design. http://www.supercode.ps; Smart Farm, a system that controls air, humidity, food, water, temperature and light of poultry farms, which helps, reduce deaths of poultry; and Smart House, a company that uses high tech and security concepts for safe and secure homes, with camera alerts, controlling air and light conditions and smart door systems.

 

3) Greening of economies: The transition toward a more sustainable economic model has the potential to generate in partner countries thousands of new jobs, for example in sectors such as energy efficiency, recycling, repair or construction. This will require additional training or new modules on green technical solutions in some curricula, as well as creating new specialisms in certain technical skills.  

 



Success story from Kosovo: 



We received many success stories about projects from schools that raise the awareness of pupils and students about the environment. A special story comes from Kosovo, where the Kosovo Electricity Distribution and Supply Company (KEDS) has established the KEDS Academy. In partnership with the Bogaziçi Lifelong Learning Center, the Public University of Pristina and the Ministry of Education, Science and Technology, traditional electrical engineering education programmes have been revamped to make them more attractive for students and more relevant for the current and future needs of the energy sector. The Academy offers accredited programs for students of higher education institutions and other interactive programmes for high school students in Kosovo. The Academy also supports local initiatives related to energy saving and environmental protection.



4) Upgrading traditional sectors: Massive employment will still exist in many partner countries in traditional sectors such as agriculture, manufacturing and craftsmanship. Taking full advantage of technological advance could create niches of innovation within traditional sectors. For instance, upgrading and modernising small-scale subsistence farming would support poverty reduction, support formalisation and provide skills development opportunities, especially among women.

 



Success story from Serbia:



Agricultural School "Ljubo Micic" in Požega initiated a project to help adult students of the final grades start their own agricultural production. Students present their business ideas in a competition. 10 students were selected. They received grants, agricultural machinery, planting materials, irrigation systems and other equipment. The project will continue because of the good results, especially the quality of the business ideas, the enthusiasm of students, the will to develop family farms and the mutual support of students. The project was financially supported by the municipality of Požega, the Ana and Vlade Divac Foundation and GIZ.



5) Platform economy:  Platform work raises lots of debate about the quality of the jobs it generates and its impact on the market. However, platform work2  is also generating many new opportunities, providing access to work for people who would otherwise either be unemployed or inactive. As in the case of Egypt, which became Uber's fastest growing market3,  and Ukraine, which has the most workers on digital platforms in Europe. The platform economy could boost innovation, creativity and the development of new services, including for people living in remote areas, who usually have less access to job opportunities on the local market. E-commerce is also growing across countries, with millions of products bought online every year through international platforms and websites. These trends have the potential to create many new jobs in partner countries, not only for platform workers but also for people in ICT, service delivery, transport and logistics.

2 Platform work is defined as the matching of supply and demand for paid labour through an online platform. Platforms are digital networks that coordinate transactions, both commercial, such as the provision of goods and services for payment, and non-commercial, such as volunteering activities or social media.

3 More than 40,000 Egyptian drivers work on the platform every month, and new drivers are joining up at the rate of 2,000 a week: https://www.bbc.com/news/business-39416041

 



Example Eastern partnership:



Etsy.com is a global online marketplace for handmade or vintage items and supplies, as well as unique factory-manufactured items. It has 2 million active sellers, of whom 86% are women, including craftswomen and men from all Eastern Partnership countries. They sell their hand-made products online to 36 million active buyers in 83 countries. 



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