NEW SKILLS FOR THE DIGITAL ECONOMY MEASURING THE DEMAND FOR ICT
SKILLS AT WORK Vincenzo Spiezia Senior Economist Working Party on
Measurement and Analysis of the Digital Economy (MADE)
[email protected]. Sind wir f.IT fr die
Zukunft? 2. Juli 2015 WKO Wien 22 June 2016 1.1 Economic and social
benefits of an open Internet1.2 Stimulating digital innovation
across the economy 2.1 Improving networks & services through
convergence2.2 Internet of Everything 23 June 2016 3.1 Consumer
Trust and Market Growth 3.2 Cooperation in managing digital
security & privacy risk 4.1 New markets and new jobs in the
digital economy 4.2 Skills for a digital world OECD Ministerial
Meeting on the Digital Economy Objective: Identify new approaches
to education, training and re-skilling to meet the fast-changing
demand for new skills in the digital economy Inputs: evidence of
the demand for new skills; assess possible skills mismatch and
shortage; put forward a set of education and training policies to
meet such a demand Outcome : Call for an OECD-wide digital skills
strategy and an enhanced measurement agenda. Panel 4.2 - Skills for
a Digital World 3 Where will new jobs be created? What skills will
be needed? ICT generic skills ICT specialist skills ICT
complementary skills Outline Where will new jobs be created?
-60-50-40-30-20-100102030-6,0-5,0-4,0-3,0-2,0-1,00,01,02,03,02001
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013ICT
contribution to total growth ((right hand scale) OECD ICT growth
OECD total growth %% Source: OECD Digital Economy Outlook 2015,
forthcoming. Annual contribution of the ICT sector to total
employment growth in the OECD area, 2001-2013 ICT and total
employment growth (left-hand scale), percentage contribution to
total employment (right hand scale) Where will new jobs be created?
0.11.10.20.10.20.24.90.01.00.10.1 14.4
0.11.20.00.10.70.50.21.70.60.10.30.10.40.10.10.4 0123456%Computer,
electronic and optical products Software publishing
Telecommunications IT and other information servicesMillions, 2013
Employment in the ICT sector and sub-sectors, 2013 Source: OECD
Digital Economy Outlook 2015, forthcoming. Where will new jobs be
created? 01234567% Electronics and telecom installers and repairers
ICT technicians Electrotechnology engineers ICT professionals ICT
service managersSource: OECD Digital Economy Outlook 2015,
forthcoming. ICT specialists in OECD economies, 2014 As a share of
total employment, by category Where will new jobs be created?
-30%-20%-10%0%10%20%30%40%Source: OECD National Accounts 2015 OECD
employment growth by industry 2000-2012 1. ICT generic skills
ability to use ICTs in daily work, e.g.:use software, send email,
etc. 2. ICT specialist skills ability to program software, develop
applications, manage networks, etc. 3. ICT complementary skills
ability to carry out work in a technology-rich environment, e.g.:
communicate on social networks, brand products on e-commerce
platforms, etc. ICTs at work raise demand for new skills Two steps:
1. Intensity of ICT use in each occupation (PIAAC) 2. Demand for
ICT generic skills ICT intensity linked to employment by occupation
(LFS) ICT generic skills at work ICT-intensity by occupation PIAAC
ask how often the respondent: a.send/receive email; c.find
work-related information on the Internet; d.conduct transaction on
the Internet; e.use spreadsheets; f.use word processors; g.use
programming languages; or h.have real-time discussions. Answers
range from Never to Every day Individuals with no experience with
computer use 05101520253035(%)25% of OECD respondents reported no
computer experience at work Source: OECD 2015 , based on PIAAC
Top-20 ICT-intensive occupation across countries
RankOccupationISCO-08Frequency 1Administration professionals242100%
2Information and communications technology service managers133100%
3Business services and administration managers12195% 4Finance
professionals24195% 5Information and communications technology
operations and user support 35195% 6Sales, marketing and
development managers12295% 7Sales, marketing and public relations
professionals24389% 8Software and applications developers and
analysts25189% 9Database and network professionals25284%
10Financial and mathematical associate professionals33179%
11Electrotechnology engineers21574% 12Engineering professionals
(excluding electrotechnology)21468% 13Managing directors and chief
executives11268% 14Physical and earth science professionals21168%
15Professional services managers13463% 16Authors, journalists and
linguists26458% 17Legislators and senior officials11153% 18Life
science professionals21353% 19Sales and purchasing agents and
brokers33242% 20Business services agents33337% 15 out of the top-20
ICT-intensive occupations are not ICT specialist occupations Demand
for ICT generic skills by country
0.00.20.40.60.81.01.21.41.61.82014 2011Economy-wide index of ICT
intensity at work Source: OECD 2015 , based on PIAAC Top-20 ICT
specialist-intensive occupations RankOccupationISCO-08Frequency
1Information and communications technology operations and user
support 351100% 2Engineering professionals (excluding
electrotechnology)21495% 3Software and applications developers and
analysts25195% 4Information and communications technology service
managers13389% 5Database and network professionals25289% 6Physical
and earth science professionals21179% 7Electrotechnology
engineers21579% 8University and higher education teachers23174%
9Mathematicians, actuaries and statisticians21263% 10Architects,
planners, surveyors and designers21663% 11Vocational education
teachers23258% 12Telecommunications and broadcasting
technicians35258% 13Physical and engineering science
technicians31153% 14Electronics and telecommunications installers
and repairers74253% 15Blacksmiths, toolmakers and related trades
workers72242% 16Life science professionals21337% 17Metal processing
and finishing plant operators81237% 18Administration
professionals24232% 19Sales, marketing and public relations
professionals24332% 20Process control technicians31332% 13 out of
the top-20 occupations are not commonly classified as ICT
occupations Source: OECD 2015 , based on PIAAC Demand for ICT
specialist skills by country 00.10.20.30.40.50.62014
2011Economy-wide index of ICT specialist intensity Source: OECD
2015 , based on PIAAC Enterprises that reported hard-to-fill
vacancies for ICT specialists 0%1%2%3%4%5%6%7%8%2014 2012As a
percentage of all enterprises Top-10 jobs that employers are having
difficulty filling RankJob 1Skilled Trade Workers 2Sales
Representatives 3Engineers 4Technicians 5Drivers
6Management/Executives 7Accounting & Finance Staff
8Secretaries, PAs, Administrative Assistants & Office Support
Staff9IT Staff 10Production/Machine operators Talent Shortage
Survey (Manpower, 2015) ICT specialists shortage should result in:
upward trend in job vacancy ratesand/or longer job vacancy duration
and/or increase in wages relative to productivity ICT specialist
skills Job vacancies in ICT services (ISIC Rev4 J) 0%1%2%3%4%5%2014
2009vacancy rate = # vacancies / (# vacancies + # employed) Annual
average of quarterly rates Source: OECD 2015 , based on PIAAC
Business cycle matters 1.01.21.41.61.82.02.22.42.6Q1 Q2 Q3 Q4 Q1 Q2
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Q1 Q2 Q3 Q4 Q1 Q2 Q32006 2007 2008 2009 2010 2011 2012 2013
2014EA-18 EU-28** %Job vacancy rates in ICT services in the
European Union (2006-2014) Source: OECD 2015 , based on PIAAC
Vacancy rates - ICT services to total business
0.00.51.01.52.02.53.03.54.02014 2009Annual average of quarterly
rates Source: OECD 2015 , based on PIAAC Changes in wages relative
to labour productivity -4%-2%0%2%4%6%8%10%12%ICT Total
businessAnnual averages 2001-2014 Online job vacancies
0%5%10%15%20%25%Australia Canada France Germany Netherlands New
Zealand UnitedKingdomUnited States2012201320142015Source: OECD,
based on Burning Glass and Jobfeed As a percentage of all online
postings ICT vacancy duration 0102030405060Netherlands Germany
France2011201220132014Median number of days Source: OECD, based on
Jobfeed ICTs are changing the way work is carried out Demand for
ICT complementary skills Ability to carry out work in a workplace
shaped by ICTs, eg: Higher frequency of information calls for
better capability to plan in advance and to adjust quickly More
horizontal work organisation calls for more cooperation and
stronger leadership Wider diffusion of information among workers
increases the importance of management and coordination The sales
skills in face-to-face commercial transaction are not the same as
in an anonymous e-commerce sale The demand for ICT complementary
skills The PIAAC survey collects information on the frequency at
which respondents: 1. Performs a set of tasks at work; 2. Carry out
activities that involve the use of cognitive skills. What skills
are complementary to ICTs? Evidence from PIAAC Cooperation:
Cooperating or collaboration with co-workers Horizontal
interaction: Sharing work-related information with co-workers
Instructing, training or teaching people, individually or in groups
Making speeches or giving presentations in front of five or more
people Client interaction: Selling a product or a service Advising
people Self-direction: Planning of own activities Organising own
time Managerial tasks: Planning the activities of others Influence:
Persuading or influencing people Negotiating with people inside or
outside the organisation Problem solving: Problem solving in less
than 5 minutes Thinking about a solution for a problem for at least
30 minutes Physical tasks: Working physically Skilled manual tasks:
Using skill or accuracy with hands or fingers Tasks performed at
work (PIAAC) -0,3 -0,2 -0,1 0,0 0,1 0,2 0,3CollaborationInformation
sharingTraining othersGiving presentationsSelling a product or
serviceAdvising othersPlanning of own activitiesOrganising own
timePlanning activities of othersPersuading peopleNegotiating with
peopleProblem solving in less than 5 minutesThinking about a
solution for at least 30 minutesWorking physicallyUsing skill or
accuracy with hands or fingersCorrelations between ICT intensity
and other tasks - OECD Cooperation Horizontal interaction Client
interaction Self- direction Managerial skills Influence
Problemsolving Physicalskills Manualskills -0,4 -0,3 -0,2 -0,1 0,0
0,1 0,2 0,3 0,4CollaborationInformation sharingTraining
othersGiving presentationsSelling a product or serviceAdvising
othersPlanning of own activitiesOrganising own timePlanning
activities of othersPersuading peopleNegotiating with peopleProblem
solving in less than 5 minutesThinking about a solution for at
least 30 minutesWorking physicallyUsing skill or accuracy with
hands or fingersHigh education Medium education Low
educationCorrelations between ICT intensity and other tasks by
education OECD Cooperation Horizontal interaction Client
interaction Self- direction Managerial skills Influence
Problemsolving Physicalskills Manualskills -0,5 -0,4 -0,3 -0,2 -0,1
0,0 0,1 0,2 0,3 0,4 0,5 0,6CollaborationInformation sharingTraining
othersGiving presentationsSelling a product or serviceAdvising
othersPlanning of own activitiesOrganising own timePlanning
activities of othersPersuading peopleNegotiating with peopleProblem
solving in less than 5 minutesThinking about a solution for at
least 30 minutesWorking physicallyUsing skill or accuracy with
hands or fingersHigh education Medium education Low
educationCorrelations between ICT intensity and other tasks by
education AUSTRIA Cooperation Horizontal interaction Client
interaction Self- direction Managerial skills Influence
Problemsolving Physicalskills Manualskills Correlations between ICT
intensity and cognitive skills by education OECD
0,00,10,20,30,40,50,6Numeracy Reading WritingHigh education Medium
education Low education0,00,10,20,30,40,50,60,7Numeracy Reading
WritingHigh education Medium education Low educationCorrelations
between ICT intensity and cognitive skills by education AUSTRIA The
demand for ICT generic skills has increased in most countries Yet,
ICT intensity continues to differ across countries: from 1.6 in US
and Norway to 0.8 in Poland and the Slovak Republic Austria is in
the middle The demand for ICT specialists has been growing fast
over the last years but wage premia, vacancy rates and vacancy
duration suggests ICT skills shortage is not large and limited to
few countries Little evidence of ICT specialist skills shortage in
Austria However, available statistics do not permit to fully
address these questions - better measures are needed Conclusions
(1/2) ICTs are also raising the demand for ICT complementary skills
On average, intensive use of ICT at work is associated to: more
interaction with co-workers and clients, more problem solving less
physical work In Austria, these changes are bigger and towards:
Client interaction Negotiation Coordination Changes in the tasks
associated to ICTs larger for low-skill occupations: stronger
orientation to numeracy in Austria Conclusions (2/2) The OECD
Skills Strategy framework
http://skills.oecd.org/documents/OECDSkillsStrategyFINALENG.pdfEncourage
and enable people to learn throughout life: Gather and use
information about changing skills demand to guide skills
development. Engage social partners in designing and delivering
curricula and education and training programmes Ensure that
education and training programmes are of high quality Promote
equity by ensuring access to, and success in, quality education for
all Ensure that costs are shared and that tax systems do not
discourage investment in learning Maintain a long-term perspective
on skills development, even during economic crises Foster
international mobility of skilled people to fill skills gaps:
Facilitate entry for skilled migrants Design policies that
encourage international students to remain after their studies Make
it easier for skilled migrants to return to their country of origin
Promote cross-border skills policies: Invest in skills abroad and
encourage cross-border higher education 1. Developing relevant
skills Encourage people to offer their skills to the labour market:
Identify inactive individuals and the reasons for their inactivity.
Create financial incentives that make work pay Dismantle
non-financial barriers to participation in the labour force Retain
skilled people in the labour market: Discourage early retirement
Staunch brain drain2. Activating skills Create a better match
between peoples skills and the requirements of their job: Help
employers to make better use of their employees skills Tackle
unemployment and help young people to gain a foothold in the labour
market Provide better information about the skills needed and
available Facilitate internal mobility among local labour
marketsIncrease the demand for high-level skills: Help economies
move up the value-added chain Stimulate the creation of more
high-skilled and high value-added jobs Foster entrepreneurship3.
Putting skills to effective use US BLS Occupational Information
Network (O*NET) 1100 occupations (US SOC) over 1998-2014 940
occupations have been comprehensively updated over time By linking
these updates, changes in ICT use at work are correlated to changes
in the other 40 work activities ICT use is measured by the
importance of the work activity Interacting with Computers The sign
of the correlation is a measure of the degree of complementarity
between ICT and other activities at work The higher the correlation
coefficient, the stronger the complementarity What skills are
complementary to ICTs? Evidence from O*NET Activities classified in
five groups : Information Input - Where and how are the information
and data gained that are needed to perform this job? Mental
Processes - What processing, planning, problem-solving,
decision-making, and innovating activities are performed with
job-relevant information? Interacting with Others - What
interactions with other persons or supervisory activities occur
while performing this job? Work Output (complex, technical) - What
skilled activities using coordinated movements are done to perform
this job? Work Output (physical, manual) - What activities using
the body and hands are done to perform this job? What skills are
complementary to ICTs? Evidence from O*NET 1. Interacting with
Others Establishing and Maintaining Interpersonal Relationships
(0.6) Performing for or Working Directly with the Public (0.59)
Communicating with Supervisors, Peers, or Subordinates (0.57)
Selling or Influencing Others (0.53) 2. Mental ProcessesScheduling
Work and Activities(0.53) Organizing, Planning, and Prioritizing
Work (0.49) Updating and Using Relevant Knowledge (0.48) Developing
Objectives and Strategies (0.48) 3. Information Input Estimating
the Quantifiable Characteristics of Products, Events, or
Information(0.34) 4. Work Output (complex, technical) Repairing and
Maintaining Mechanical Equipment (0.33)Drafting, Laying Out, and
Specifying Technical Devices, Parts, and Equipment(0.32) 5. Work
output (physical, material) Operating Vehicles, Mechanized Devices,
or Equipment(0.46) Correlations between ICTs and activity groups
(changes over time) Correlations between ICTs and activity groups
(changes over time) 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8Work Output
(physical, manual)Information InputWork Output (complex,
technical)Mental ProcessesInteracting with Othersjob zone 1 job
zone 2 job zone 3 job zone 4 job zone 5By typical skill level of
occupations (job zone) 1 2 3 4 5
