The official commencement of the OECD Skills Strategy for Luxembourg (seminar 9 June 2021)

1. SKILLS STRATEGY SEMINAR
OECD Skills Strategy Luxembourg
Andrew Bell,
Head of the Skills Strategy Projects,
OECD Centre for Skills
Samuel Kim,
Project Leader,
OECD Centre for Skills
9 June 2021

2. 2
2
WHY DO SKILLS MATTER?

3. What do we mean by skills?
COGNITIVE AND
META-
COGNITIVE
SKILLS
SOCIAL AND
EMOTIONAL
SKILLS
3
Cognitive and meta-cognitive skills
1
Technical professional skills
Social and emotional skills
2
3

4. 4
Skills matter for individual well-being
Source: Survey of Adult Skills (PIAAC) (2012, 2015).
2.9
2.6 2.6
2.3
2.2
2.1
1.0
1.2
1.4
1.6
1.8
2.0
2.2
2.4
2.6
2.8
3.0
High wages High levels of political
efficacy
Participation in
volunteer activities
High levels of trust Being employed Good to excellent
health
Odds ratio
Likelihood of positive social and economic outcomes among highly literate adults, 2012/2015

5. Skills also matter for countries’ economic prosperity
Source: Survey of Adult Skills (PIAAC) (2012, 2015).
5
Australia
Austria
Canada Chile
Czech Republic
Denmark
Estonia
Finland
Flanders (Belgium)
France
Germany
Greece
Ireland
Italy
Japan
Korea
Lithuania
Netherlands
New Zealand
Norway
Poland
Slovakia
Slovenia
Spain
Sweden
Turkey
United
Kingdom
United States
Israel
R² = 0.2123
3.2
3.4
3.6
3.8
4.0
4.2
4.4
4.6
2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 3
Labour
productivity
(log)
Mean use of reading skills at work
Labour productivity and the use of reading skills at work, PIAAC 2012/2015
Adjusted for literacy and numeracy proficiency

6. SOCIAL AND
EMOTIONAL
SKILLS
6
Globalisation
Technological change
Demographic change
• More integrated world economy than ever
• Emergence of global value chains, offshoring and
outsourcing
• Increased vulnerability of some workers
• Rapid development of new technologies
• Emergence of new forms of work
• Expansion of sources of learning, especially online
• Magnified importance of people’s productivity and
skills, and countries’ ability to attract talent
Mega trends are changing and increasing the skills
needed for success in work and life

7. Many jobs will be impacted by automation in the future
7
Source: Nedelkoska and Quintini, Automation, skills use and training, (2018)
0
10
20
30
40
50
60
70
%
High risk of automation Significant risk of change
32%
14%
Jobs at risk of Automation
Share of jobs at high risk (>70%) of automation and at significant risk (50-70%)

8. Skills will be key to fostering recovery and building resilience
in the context of COVID-19
8
Source: OECD (2021), OECD Economic Outlook, Volume 2021 Issue 1: Preliminary version, OECD Publishing, Paris, https://doi.org/10.1787/edfbca02-en
%
Annual (projected) GDP growth of Luxembourg, 2018-2021
-2
-1
0
1
2
3
4
5
6
2018 2019 2020 2021

9. The COVID-19 crisis has depressed demand for skills
Note: The figure shows the percentage change in the number of job postings (weekly averages) with respect to the beginning of the year by countries. Postings are divided by group-specific average from January 19-February 29,
2020. For Australia, Canada, New Zealand, United Kingdom and United States, the second period covers the months from May to August. Data for the period between September and November are only available for Australia,
Canada, the United Kingdom, the United States and New Zealand.
Source: OECD calculations based on data from Burning Glass Technologies, December 2020.
33
Evolution of job vacancy postings, March-November 2020
Average change in the number of job postings
-100
-80
-60
-40
-20
0
20
40
60
March-April May-July September-November
%

10. Especially demand for the least skilled
Note: The figure shows the change in the number of job postings (weekly averages) with respect to the beginning of the year by minimum level of education required are divided by group-specific average from January 19-February 29, 2020. Postings
missing information on education requirements were discarded. New Zealand has been dropped due to a very small size sample. Countries are ordered by the drop in the number of online job postings requiring Secondary education.
Source: OECD calculations based on data from Burning Glass Technologies, December 2020.
34
Evolution of job vacancy postings, March-April 2020
Average change in the number of job postings by level of education
%
-80
-70
-60
-50
-40
-30
-20
-10
0
10
20
Volume
of
online
job
postings
Tertiary Secondary Post Secondary

11. 11
11
WHAT IS THE OECD SKILLS
STRATEGY?

12. 12
The 2019 OECD Skills Strategy Framework
12

13. 26 OECD Skills Strategy projects have been undertaken
in 18 countries
13
Mexico
Peru
Korea
Flanders (BE)
Italy
Kazakhstan
Netherlands
Norway
Latvia
Poland
Slovak Republic
Spain
Portugal Austria
Slovenia
Northern Ireland
(UK)
Lithuania
Luxembourg

14. Our approach to country work
Mapping of the skills system
Fostering whole-of-government
collaboration
Engaging stakeholders
Identifying international good practices
and facilitating peer learning
Inputs
Identifying policy priorities
Developing policy recommendations
Providing implementation guidance
Raising awareness
Outputs
A diverse, cross-sectoral team
14

15. Employing a whole-of-government approach for
OECD Skills Strategy projects
Directorate for Education and
Skills
Economics Department
Directorate for Employment,
Labour and Social Affairs
Directorate for Science,
Technology and Innovation
Centre for Tax Policy and
Administration
Local Employment, Skills and
Social Inclusion
OECD Luxembourg
Ministry of Higher Education
and Research
Ministry of Labour,
Employment and the Social
and Solidary Economy
OECD Centre for Skills
Ministry of National
Education, Children and
Youth
OECD Skills Strategy Luxembourg
Assessment and Recommendations
National Employment Agency
15

16. Employing whole-of-society approach to strengthen
understanding and build support for reform
Assessment Workshop
The Hague, Netherlands
12 May 2016
Assessment Workshop
Bratislava, Slovakia
9 April 2019
Recommendations Workshop
Warsaw, Poland
28 May 2019
16
Strategy Development Workshop
Riga, Latvia
27-28 February 2020
Virtual Skills Strategy Seminar
Vilnius, Lithuania
9 March 2020 16
Virtual engagement since
March 2020

17. 17
Project timeline and milestones
SCOPING
OBJETIVES
ACTIVITIES
Q2 2021 Q2-Q3 2021 Q4 2021 – Q1 2022 Q2 2022
ASSESSMENT RECOMMENDATIONS PUBLICATION AND
LAUNCH
> Introduce the project
> Discuss and agree on key
goals, timelines and outputs
> Map the skills system (actors,
policies, outcomes etc.)
> Identify key challenges
> Draft concrete policy
recommendation
> Test policy recommendations
with government and
stakeholder representatives
> Publish final report
> Disseminate the findings
of the project
Scoping Mission
> Skills Strategy Seminar
Assessment Mission
> Workshop
> Group discussions
> Bilateral meetings
Recommendations
Mission
> Workshop
> Group discussions
> Bilateral meetings
Launch
> Public launch of the
Report

18. 18
18
LUXEMBOURG’S SKILLS
PERFORMANCE AND
PRIORITY AREAS FOR THE
PROJECT

19. 19
Priority 1: Providing labour market relevant
adult learning opportunities
L
u
x
e
m
b
o
u
r
g
A
u
s
t
r
i
a
B
e
l
g
i
u
m
D
e
n
m
a
r
k
F
i
n
l
a
n
d
F
r
a
n
c
e
G
e
r
m
a
n
y
N
e
t
h
e
r
l
a
n
d
s
S
w
e
d
e
n
S
w
i
t
z
e
r
l
a
n
d
U
n
i
t
e
d
K
i
n
g
d
o
m
How skilled are youth? 1 1 1
Are skills of youth improving
Are skills of youth being developed inclusively? 1 1
How many young adults attain tertiary education? 1 1 1
What is the quality of tertiary education? 1 1 1 1 1 1
How inclusive is tertiary education? 1
How strong are digital skills of adults? 1
Is there a strong culture of adult learning? 1 1 1 1
Are employees involved in continued vocational training? 1 x
How inclusive is adult learning? 1
Developing
relevant skills
Dashboard indicators across
pillars of the Skills Strategy
1 Top 20%
2 Top 20-40%
3 Around the average
4 Bottom 20-40%
5 Bottom 20%
Luxembourg’s performance developing skills and proposed
priority areas
Priority 2: Guiding and incentivising skills
choices

20. How well are skills activated in the labour market? 1 1 1 1 1
How inclusive is the labour market? 1 1 1
How well aligned are skills with labour market? 1 1 1 1
Are skills used to support active, engaged citizenship? 1 1 1
Do employees have the skills required for their job? 1 1 1 x
Do firms adopt high-performance workplace practices? 1 1 1 1 1 x
Is skills use stimulated by innovation? 1 1 1 1 1
Using skills
effectively
Luxembourg’s performance developing skills and proposed
priority areas
20
1 Top 20%
2 Top 20-40%
3 Around the average
4 Bottom 20-40%
5 Bottom 20%
Priority 3: Attracting and retaining talent to fill skills shortages
Priority 4: Strengthening the governance of skills data
Priority 2: Guiding and incentivising skills choices

21. Priority 1: Providing labour
market relevant adult learning
opportunities
21
Overarching goals:
Support Luxembourg’s efforts to leverage skills policies to boost recovery; help Luxembourg address
skills challenges in the context of the Greater Region; build a resilient and adaptable skills system in the long-term
Priority 2: Guiding and
incentivising skills choices
Priority 3: Attracting and retaining
talent to fill skills shortages
Priority 4: Strengthening the governance of skills data
Skills Strategy Luxembourg
Summary of priority areas

22. 22
22
PRIORITY 1:
PROVIDING LABOUR MARKET
RELEVANT ADULT LEARNING
OPPORTUNITIES

23. EU27
Low education
level
Older person (55>)
Unemployed
Rural area
SME employee
Luxembourg
High education level
Prime age person (25-54)
Employed
City
Large enterprise
employee
0
10
20
30
40
50
60
70
80
Adult learning participation Education level Age Employment status Urbanisation Company size
Participation in adult learning varies significantly across
groups
Source: elaboration based on Eurostat data (indicator constructed for the EU Skills Agenda, based on the 2016 EU Adult Education Survey but excluding
informal learning and guided on the job training).
23
EU Objective
2025
%
Share of adults (aged 25-64) participating in adult learning and participation by background characteristics, 2016 (%)

24. 0
5
10
15
20
25
30
35
40
45
A relatively high share of adults encountered difficulties
when trying to access adult learning
24
Source: elaboration based on the 2016 EU Adult Education Survey.
% Adults encountering difficulties accessing adult learning, 2016 Main barriers in Luxembourg
1 – Schedule (22.7%)
2 – Family reasons (19.7%)
3 – Cost (12.4%)
4 – Lack of support from
employer/public services
(7.2%)
5 – No suitable adult
learning offer (6.8%)
Share of adults that wanted to participate in adult learning, but encountered difficulties

25. A significant share of employers report no or low alignment of
training with skills needs
Source: Elaborations based on the EU Continuous Vocational Training Survey (2015)
25
0
10
20
30
40
50
60
70
80
90
100
%
No alignment Low Fair Full
Employers’ views on alignment of training to skill needs

26. Providing flexible and accessible adult learning opportunities for all adults
Potential opportunities for providing labour market relevant
adult learning opportunities
Improving quality and relevance of adult learning provision to meet labour market
needs
Supporting co-ordination and collaboration among all relevant actors in the adult
learning system
Priority Area
01

27. 27
27
PRIORITY 2:
GUIDING AND INCENTIVISING
SKILLS CHOICES

28. The share of adults seeking and receiving information
about adult learning opportunities varies significantly across groups
Source: Elaboration based on the 2016 EU Adult Education Survey. 28
%
Share of adults receiving guidance and counselling by background characteristics, 2016
Low education
level
Non-EU
migrant
Unemployed Older person
(55>)
Male
Rural area Temporary SME employee
High education
level
National Employed Prime age person
(25-54) Female
City
Permanent
Large enterprise
employee
0
10
20
30
40
50
60
70
80
Education level Migration background Employment status Age Gender Urbanisation Contract type Company size

29. Enterprises differ in the collection and use of skills information to inform
adult learning provision
Note: elaboration based on the Continuous Vocational Training Survey 2015.
29
%
Share of enterprises that conduct assessments of future skills needs and respond to such collected information with
training provision
0
10
20
30
40
50
60
70
80
90
100
Small enterprises (10-49 employees) Medium enterprises (50-249 employees) Large enterprises (250> employees) Total
Skills assessment Respond to skills needs information with training

30. 0
10
20
30
40
50
60
70
80
90
100
The share of adults receiving financial support for adult learning
participation could be raised
Share of employees that receive job-related non-formal education and
training sponsored by their employer, 2016
Note: elaboration based on the 2016 EU Adult Education Survey. 30
%

31. The provision and funding of adult learning opportunities
varies significantly by enterprise size
Note: Elaboration based on the Continuous Vocational Training Survey 2015. 31
%
Small
enterprises
Medium
enterprises
Large
enterprises
Average training
funding per employee
during past year
422€
664€
612€
0
10
20
30
40
50
60
70
80
90
100
Training provision Internal training budget External training funding
Small Enterprises Medium Enterprises Large Enterprises
Differences across enterprises in providing training and having funding for training, by size

32. 32
Potential opportunities for guiding and incentivising
skills choices
Providing adults with guidance and counselling to support adult learning participation
Supporting enterprises in the collection and use of skills information to inform provision of
adult learning opportunities
Providing financial incentives for adults to raise adult learning participation
Providing financial incentives for enterprises to provide adult learning opportunities
Priority Area
02

33. 33
33
PRIORITY 3:
ATTRACTING AND RETAINING
TALENT TO FILL SKILLS
SHORTAGES

34. 0
2
4
6
8
10
12
0
5
10
15
20
25
30
35
40
45
50
Residents with Luxembourgish nationality Cross-border workers Residents with EU nationality (excl. LUX) Residents with non-EU nationality
Luxembourg heavily relies on foreign workers
34
Source: STATEC (2021), B3002 Emploi salarié intérieur par lieu de résidence et nationalité 1995 – 2020.
% of total labour force, 2019 (left axis) % change, 2018/2019 (right axis)
% %
Workers by place of residence and nationality
% of total labour force 2019, % change 2018/2019

35. Yet, employers report difficulties finding the right talent
in Luxembourg and the Greater Region
35
0
10
20
30
40
50
60
70
80
Mismatch between the offer and the salary
expectations of the candidates
Available workers insufficiently qualified Skills profiles needed not available in
Luxembourg and the Greater Region
%
Source: Chambre de Commerce Luxembourg (2019), Baromètre de l‘Économie, S1 2020.
% of employers in Luxembourg citing a specific recruitment difficulty, 2019

36. Luxembourg could improve on a number of areas in
attracting and retaining talent
Source: Tuccio (2019), Measuring and assessing talent attractiveness in OECD countries, https://www.oecd-ilibrary.org/docserver/b4e677caen.pdf?expires=1614777763&id=id&accname=guest&checksum=401F2B0D12CB6A6B4363C7C8331E1C48,
36
Scores on OECD Indicators of Talent Attractiveness
Workers with Master’s/PhD degrees, Luxembourg and selected EU countries
Quality of opportunities Income and tax Future prospects Family environment Skills environment Inclusiveness Quality of life
Belgium 1 -2 1 -2 -1 1 1
Denmark -1 1 -2 1 2 2 2
Estonia 1 -1 -1 1 -1 1 -1
France 1 -2 1 2 -1 -1 -1
Germany -2 -1 1 1 2 1 1
Ireland 1 1 2 -1 1 2 1
Luxembourg 2 -2 -2 -2 -1 2 1
Netherlands -2 1 2 2 1 1 1
-2 Bottom 25% -1 25-50% 1 50-75% 2 Top 25%

37. 37
Potential opportunities for attracting and retaining talent
to fill skills shortages
Facilitating the recruitment of foreign workers in line with Luxembourg’s labour
market needs
Supporting the integration of foreign workers into the society and the labour
market
Priority Area
03

38. 38
38
PRIORITY 4:
STRENGTHENING THE
GOVERNANCE OF SKILLS DATA

39. Some of Luxembourg’s skills data operate in isolation from one another, and
differ in structure, scope, granularity and classification consistency
39
Skills demand data (national/EU)
 Varying in scope and structure
 Some sources be further explored
Skills supply data (national/EU)
 Irregular
 Varying in scope and structure
 Classification inconsistencies
 Some sources limited to occupation-level data
Overview of selected skills data relevant for Luxembourg
Greater
Region
Greater region skills data sources
 To be leveraged further
Observatoire
de la
formation
data
Continuing
Vocational
Training
Survey
Chamber of
Commerce
Labour
Force
Survey
ADEM
jobseeker
data
VAE
data
CCSS
employee
entry
declarations
Structure of
Earnings
Survey
STATEC
population
statistics
MENJE
student
data
INFPC
School to
Life
Transition
House of
Training
Luxembourg
Lifelong
Learning
Centre
Adult
Education
Survey
Chamber
of Trades
Training
Institute of the
National
Education
Observatoire
de la formation
data
Center for
Documentation &
Information on
Higher Education
Observatory on
labour market
and
employment
Skills
Panorama
FEDIL Survey
of Tomorrow's
Qualifications
CC
Barometer
of the
Economy
Skills Online
Vacancy
Analysis
Tool
ADEM
job offer
data
CdM Survey
of the
Need of
Manpower
STATEC
Luxembourg
economy
statistics
CCSS
employee
entry
declarations

40. Skills data are collected, analysed and used by a number of different
governmental actors and non-governmental actors
Overview of selected relevant actors in Luxembourg’s skills data system
Public agencies and institutes
Ministries
40
Employer and
employee representatives
Education and training
providers
Researchers NGOs
E.g. University of Luxembourg,
Lunex University,
Sacred Heart University,
UBI Wiltz United Business Institutes,
HoT, Luxembourg Lifelong Learning
Centre (LLC),
, National Center for Continuing
Professional Education (CNFPC),
National Institute of Languages
(INL), Institut de Formation Sectoriel
du Bâtiment (IFSB), Centres de
compétences (GTB/PAR & DigiHW),
etc.
E.g. Employers associations
(UEL, FEDIL, ABBL, CLC,
Federation of Craft Workers,
HORESCA), Federation of Craft
Workers (FDA), Chambers
(Commerce, Skilled Trades and
Crafts, Agriculture, Employees,
Civil Servants and Public
Employees), Unions (OGB-L,
LCGB, CGFP), etc.
E.g. foundations, charities,
voluntary associations, etc.
E.g. National Employment Agency
(ADEM), National Institute of
Statistics and Economic Studies
(STATEC), General Inspectorate of
Social Security (IGSS), Mutual
Social Security Office (CCSS),
Maison de l’orientation,
Luxinnovation,
Luxembourg Trade & Invest, etc.
E.g. Ministry of National Education,
Childhood and Youth
(MENJE), Ministry of Labour,
Employment and the Social and
Solidarity Economy (MTEESS),
Ministry of Higher Education and
Research
(MESR), Ministry of European and
Foreign Affairs (MAEE), etc.
Luxembourg Institute of Socio-
Economic Research (LISER),
Luxembourg Institute of Science
and Technology (LIST), National
Institute for the Development of
Continuing Vocational Training
(INFPC), etc.

41. Strengthening effective linking and exchange of skills data
Potential opportunities for strengthening the governance of skills data
Improving the quality and relevance of skills data
Fostering effective use of skills data for policy and research
Priority Area
04

42. Comments and questions
Comments, questions and endorsement of the four priority areas from each organisation
(c. 5 minutes each).
42

43. Thank you!
To discuss OECD’s work on OECD Skills Strategy projects, please contact:
Andrew.BELL@oecd.org, Head of OECD Skills Strategy Projects, OECD
Samuel.KIM@oecd.org, Project Leader in OECD Skills Strategy Projects, OECD
To learn more about the OECD’s work on skills visit: www.oecd.org/skills/
43