The State Comptroller, Matanyahu Engelman, today (Sunday) publishes a special international report on the readiness for the future labor market, in light of the development of technology, which means that many professions are at risk of not having to work in them. The report is the result of cooperation between Israel, which initiated it, and the State Comptroller’s offices of the European Union and of several countries: Finland, South Korea, Italy, Bulgaria and northern Macedonia.
The joint international report presents the audit findings carried out by each of the countries, with each ministry presenting its country’s response to the challenges posed by the changing labor market in relation to local conditions and while analyzing possible solutions. The participating countries are very diverse in terms of population size, area, location and level of socio-economic development. for example:
- The proportion of jobs at significant risk of change due to changes in the labor market ranges from 34% in Finland, 43% in Korea, 45% in Israel, 48% in 19 EU countries on average, and 51% in Italy.
- Labor productivity ranges from $ 26 per hour of work in Bulgaria, $ 40 in Korea, $ 42 in Israel, $ 53 in Italy, $ 54 on average in the European Union, to $ 62 in Finland.
- The proportion with an academic degree ranges from 20% in Italy, 21% in northern Macedonia, 28% in Bulgaria, 33% in the EU on average, 46% in Finland, and 50% in Korea and Israel.
- Investment in research and development ranges from 0.4% of GDP in northern Macedonia, 0.76% in Bulgaria, 1.5% in Italy, 2% in the EU on average, 2.8% in Finland, 4.5% in Korea, and 4.9% in Israel.
This range has contributed to presenting a complex and broad picture of the issues relevant to the changing labor market – from issues of population aging and negative immigration, to the need to strengthen high-tech industries.
The aspects examined by the countries included: The readiness of the education system for the changing labor market. The Israeli State Comptroller’s Office examined issues related to the education system’s readiness for the changing labor market and the adaptation of the study environment in the upper divisions to the infrastructure required to impart 21st century skills.
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It has emerged that in Israel, about five years since the Ministry of Education began implementing the significant learning reform, about half of those in post-primary education – the central supervisors (MFMRs), school principals and school subject coordinators – believe that the reform’s impact on teaching skills 21 There was not much for post-primary education students, and it was further found that from the implementation of the reform until the end of the audit, the Ministry of Education did not conduct a systematic and comprehensive learning process from the implementation process.
The audit in Finland examined the extent to which the education system for 15-7 year olds, serving over half a million students, takes into account future skills needs and suggests that there are gaps in imparting future skills between students from different socioeconomic backgrounds, and that teachers do not have enough time to develop The skills.
Recommendations in this area have addressed the need to tailor the training and support to be provided to teaching staffs and the digital tools required to impart the appropriate skills.
Another area that is reflected is the field of professional training for graduates (over the age of 18), which was examined by the Bulgarian State Comptroller’s Office, the Korean State Comptroller’s Office and the Israeli State Comptroller’s Office. The purpose of the test was to examine the suitability of vocational training and the scope of lifelong learning to the changing market requirements. The recommendations touched on the need to update the areas of training and curricula in accordance with the new needs of the labor market as well as the need to improve the effectiveness of training.
The report shows that in Israel about 15% of jobs are at high risk for change and their workers may be expelled from the labor market, and another 54% of jobs are at medium risk, but public spending on vocational training is 0.07% of GDP, compared to 0.11% on average in developing countries. OECD The number of participants in vocational training and technology in public funding in 2018 was about 53,200 people, but only about 7% of the participants in the funded vocational training of the Vocational Training Division do so in one of the collaborative tracks despite the agreement that these tracks are most effective.
The Bulgarian State Comptroller’s Office stated that some 250,000 had successfully completed vocational training in the years 2019-2017, and that the training system had not developed its understanding of the needs of employers and the skills needs of the labor market. In Korea there are about 660,000 students in vocational training colleges. The Korean State Comptroller’s Office pointed out that there were shortcomings in the operation of the national program to improve cooperation between colleges and employers, including setting low targets and not setting employment rates after receiving a certificate as a key target.
In the area of digital literacy required for the changing labor market, the EU Audit Office has examined the actions of EU countries to deal with some 75 million people with extremely low digital skills, and found that although digital literacy is one of the main objectives of the European Social Fund (ESF), only 2 % Of the fund’s budget in 2014 – 2020 was devoted to programs for improving digital literacy, and recommended appropriate investment of resources, setting goals and measuring results.
In this regard, the Israeli State Comptroller’s Office examined the need to provide lifelong digital literacy in order to adapt skills to the demands of the labor market – and found that among the 3.7 million people of working age (18-64) in Israel whose digital literacy level is low or minimal – many are Arab and ultra-Orthodox. Only 1% participated in a guided government program for digital literacy in 2019. Literacy was recommended for students and teachers and adults from literate populations – especially the Arab and ultra-Orthodox populations. The Israeli State Comptroller’s Office also examined the state’s actions to increase the number of high-tech workers.
The common conclusion of the audits was that digital literacy is required in all sections of the population and therefore governments should invest in its development, while setting measurable goals for it.
Another area dealt with by the offices of the Italian State Comptroller and the Northern Macedonian relates to the system of benefits and employment services in the context of the changing labor market. The Italian State Comptroller’s Office found that over 1.2 million households received an average of 570 euros a month in civilian income – about two-thirds of them in southern Italy, and that the allowance proved to be a tool for poverty reduction but not a tool for active labor market policy. The Office of the Northern Macedonian State Comptroller noted that young people make up 20% of the unemployed in the country, and found that national action plans on the subject have been partially implemented, and that young people lack the skills required in the labor market.
The International Report also reviewed local initiatives to address changes in the labor market. It turned out that, similar to the “work data” portal developed by the Israeli labor market analysis arm, required skills in various jobs and how to train for them, a similar project was developed in Bulgaria, which presents, among other things, labor market forecasts. The EU’s initiative is to promote policies regarding both education systems and vocational training and lifelong learning in order to adapt to the changing market. The report shows that Finland is implementing lifelong learning reform and in Israel part of the answer is through the “Campus IL” platform that enables online learning. Italy and Korea also have similar platforms for online learning and for improving digital education and learning for students and adults.
The joint report emphasizes the need to invest in human capital and in particular the need to invest in improving the skills and abilities of the students who constitute the future human capital reserve. At the same time, it is also necessary to improve and improve the skills of employees today in the labor market and especially those who have low skills, so that they can integrate into the changing labor market in jobs required for higher skills including problem-solving, creativity and thinking skills. In addition, a decrease in the demand for routine jobs or those based on physical ability can be identified, even now. This change was particularly pronounced during the Corona period, however, the Corona crisis may serve as an opportunity for governments to bring about the required change and invest in developing the skills and competencies of all workers and students, thus ensuring their optimal integration into the changing labor market.
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