Sectoral Approach - methodological background

Using sectoral approaches: the main angles

Guide: core content

1. Sectoral approaches and methods. Broad taxonomy of sectoral approaches: objectives, methodologies and tools.
2. Institutional context – role of sectoral bodies. Focus on institutional settings/approaches conducive to skills anticipation and matching at the sectoral level.
3. Practical considerations in sectoral skills analyses. More in-depth detail on specific methodologies and tools. Moves towards a practical and didactic resource helping users to make choices.
4. Case studies (22 cases). Summary of the case studies, draws key lessons.

See: 'Working at sectoral level – guide to anticipating and matching skills and jobs' https://www.etf.europa.eu/en/publications-and-resources/publications/working-sectoral-level-guide-anticipating-and-matching

Advantages and limitations

• The approach encompasses a variety of methods and data. Some countries have their own systematic approaches.
• Many sectoral analyses have multiple objectives beyond the question of skills (strategic, economic, investment, productivity, export, etc.)
• From the skills perspective, a sectoral approach is typically used to address:
  • The types of skills and competences jobs require;
  • Emerging jobs;
  • Changing skills profiles of occupations;
  • The ability of the education & training system to meet the needs of each industry.

Key steps in carrying out a sector study

• Clarifying the aims and objectives;
• Defining the sector;
• Carrying out a data audit;
• Consulting key stakeholders;
• Identifying the main target audiences;
• Clarifying the key questions to be addressed;
• Deciding how best to answer them (choice of methodology);
• Executing the study;
• Final outcomes (dissemination, validation and policy action).

Implementation: defining the sector

Which sector to analyse – strategic priorities:

• Growth potential;
• Changes in technology;
• Users and institutional context;
• Developing a more elaborate 'vision' for the sector.

Defining, classifying and measuring the sector

• Official classifications (principal economic activity);
• 'Supply chains' ('input-output' tables); 
• Broader definitions of a sector 'occupational sector – observatories' and transversal sectors.

Implementation: engaging stakeholders

Key factors to be considered:

• The importance of social dialogue and involving social partners – particularly in the design, commissioning and execution stages;
• The audience for the final output: government, academics, employers, sectoral bodies, unions, education & training providers, career guidance professionals, individuals making career choices and decisions, and the general public;
• Power and ownership – the need to secure both financial and other types of support from the key players involved;
• The different (sometimes conflicting) needs and interests of various types of target groups have to be factored in.

Clarifying key questions

1. Understanding the context for the sector:
   • Key drivers of change generally and in the sector 
   • Links to other parts of the economy
2. Sector position and outlook:
   • Analyses of trends and future developments/scenarios
3. Implications for jobs and skills:
   • Numbers of jobs/changes in requirements for skills
4. Skills supply:
   • Possible imbalances and mismatches  
5. Synthesis and proposed responses:
   • Drawing together the results from points 1–4 to develop appropriate responses and priorities for action amongst different stakeholders.

Final outcomes

1. Communicating the findings:
   • Outputs can take many forms – 'participation' may be a key output
   • Good practice helps reinforce engagement and ownership
   • Note that you may need to reach a much wider audience
2. Uses and actions – different users have different priorities:
   • Users include policy-makers, education & training providers, employers and individuals.
   • Work on skills anticipation, whether at national or sectoral level is invariably carried out on behalf of the government. Dissemination strategies are often focused on policy-makers rather than other users/stakeholders.
   • There is a danger of developing a 'top-down' planning mentality – it has to be recognised that some level of vacancies and unemployment is inevitable and healthy in a well-functioning market economy.
   • Validation and evaluation – peer review and standard setting.

SUCCESS FACTORS

• Methodological and data robustness, demonstrated throughout the process, from data generation and analysis to structured stakeholders’ involvement and consultation, from the initial stages to the conclusion of the study.
• Leadership and ownership by the sector actors and alliances across the fields of work and education.
• A combination of relevant tools and approaches, in-house or outsourced data generation, analysis and interpretation, together with a mixture of quantitative and qualitative analysis.
• The ability to use the extensive potentialities of Big Data – for data generation and analysis.
• Networking and alliances, for example with data generation bodies, social partners, state actors and Labour Market/Skills Observatories, as well as through international cooperation (EU and beyond).
• Adaptation of final products to users: readability and attractiveness, online access.
• The ability to link research independence with the production of recommendations that are useful for the target users.

Generating credible and valid data for the sector-based studies can represent a challenge that should not be underestimated by the research team and the promoters of the study. A quick overview highlights problems such as:

• The need to distinguish between questions of fact and matters of opinion or 
perception: The focus should be on obtaining factual data rather than opinions or perceptions, but the former are generally much more difficult to obtain than the latter. 

• Particular concerns arise when asking for opinions about the future: Such views are generally subjective and not very reliable.

• The need for representative surveys to collect unbiased data: Good sampling frames are also important to ensure that the sample surveyed provides a true representation of the population. 

• Technical issues about the best way to obtain certain types of information: For example, are data on occupational employment structures best obtained by asking employers or individuals?

INSTITUTIONS AND ACTORS INVOLVED 

In the definition of the scope, approach and structure of the sector-based skills anticipation:

• Sector bodies: confederations, chambers, associations, councils;
• The relevant state body, if adequate (sector Ministry or department; Ministry in charge of education and training);
• The research institute(s)/team in charge of the anticipation and analysis.

In the consultation and review of preliminary results and the validation of the final output (beyond those indicated above):

• Qualifications and training actors;
• Relevant businesses;
• Social partners.