Annexes to COM(2020)274 - European Skills Agenda for sustainable competitiveness, social fairness and resilience

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agreements with social service providers, such as social enterprises or non-profit organisations, and with investors that pay for the delivery of pre-defined social outcomes, for example on skills 66 . The objective is to finance social services. In particular those focused on innovative solutions to social challenges or prevention measures.

Through this mechanism, the government or an intermediary raises funds from private-sector investors, charities or foundations. These funds are distributed to service providers to cover their operating costs. If the measurable outcomes agreed upfront are achieved, the government proceeds with payments to the intermediary organisation or directly to the investors.


Conclusion

Now is the time to act. With this call to action, the Commission aims to put skills at the heart of the European policy agenda for the next 5 years to make the right to lifelong learning a reality and implement Principle 1 of the European Pillar of Social Rights. The recovery of our economy, strengthening Europe’s global competitiveness and pressing forward with the twin green and digital transitions, requires a bold skills policy. For this the Commission will:

·propose to businesses, social partners and other stakeholders to WORK TOGETHER, under an ambitious Pact for Skills;

·develop SKILLS FOR JOBS, thanks to a forward-looking approach to skills development, based on sound skills intelligence and modern and dynamic education and training provision that links directly with labour market and societal needs;

·EMPOWER PEOPLE to build up their skills by developing innovative tools, making learning pathways more flexible and accessible.

To bring this ambition to life, the Commission proposes ambitious quantitative objectives that will allow to measure progress on an annual basis. The Commission is calling on Member States and all stakeholders to help bring about a skills revolution and make full use of the unprecedented opportunities offered by Next Generation EU.


(1) Before the outbreak of the COVID-19 pandemic, it was estimated that 1 million jobs would be created by 2030. Employment and Social Developments in Europe (ESDE), 2019. Similarly, it was estimated that these technologies would create almost 60 million new jobs worldwide in the next 5 years.
(2) Identifying the recovery needs; SWD (2020) 98 final
(3) COM(2020)442 final.
(4) European Commission (2017), Investment in Human Capital – Assessing the Efficiency of Public Spending on Education, Note for the Eurogroup on 6 November 2017.
(5) Woessmann, L., The Economic Case for Education, EENEE Analytical Report No. 20, Ifo Institute and University of Munich, 2017.
(6) In the European Investment Bank’s Investment Survey 2017, almost 80% of firms cited lack of skilled staff as an obstacle to their investment.
(7) European Commission (2014), The Economic Case for Education. Background paper prepared by the Commission services to inform the policy debate of the Council on 12 December 2014.
(8) COM(2020)441 final/2.
(9) COM(2016) 381 final.
(10) Commission Communication on the European Green Deal, COM(2020) 640 final.
(11)

European Digital Strategy, 2020 https://ec.europa.eu/digital-single-market/en/content/european-digital-strategy

(12) COM(2020) 102 final and COM(2020) 103 final.
(13) COM (2020) 241 final.
(14) These will include anti-discrimination and gender considerations.
(15) As indicated in the EU Industrial Strategy adopted in March 2020.
(16) COM(2020) 276 final.
(17) Pledges are commitments by private or public organisations to make a direct contribution to reducing digital skills gaps facing Europe, such as committing to providing skills training or placements or access to digital skills development opportunities. They can be found at:  https://pledgeviewer.eu/
(18) CEDEFOP Skills Panorama, Health professionals and associate professionals.
(19) EIT Health and McKinsey, 2020, 'Transforming healthcare with AI: The impact on the workforce and organisations'.
(20) OECD, Evaluating the initial impact of COVID-19 containment measures on economic activity, Figure 1
(21) In 2017, 94% of companies in construction were SMEs, Eurostat [sbs_sc_con_r2].
(22) European Builders Construction, web page on skills
(23) Directive (EU) 2019/882 on the accessibility requirements for products and services.
(24) Transport in Figures 2019 https://op.europa.eu/en/publication-detail/-/publication/f0f3e1b7-ee2b-11e9-a32c-01aa75ed71a1  
(25) European Automobile Manufacturers Association (ACEA), Employment impact of COVID-19 on the European auto industry
(26) A Blueprint project on skills needed for the battery sector ‘ALBATTS’ has been launched which will be important not only for the automotive sector but also for the growing energy storage sector.
(27) COM(2020) 550 final: Tourism and transport in 2020 and beyond.
(28) C(2020) 3251 EU Guidance for the progressive resumption of tourism services and for health protocols in hospitality establishments – COVID-19 2020/C 169/01.
(29) https://nexttourismgeneration.eu/
(30) Cedefop ‘Skills Ovate’, NUTS 2 level.
(31) The online tool will provide granular and up-to-date skills intelligence, especially at regional and sectoral levels, providing a snapshot of labour market skills demand in real-time, that can be repeated within very short intervals and allows to identify trends in skills needs and detect newly emerging skill needs.
(32) VET programmes cut across different levels of education and training. In absolute figures, the largest number of VET learners (8.5 million learners) are enrolled in programmes at upper-secondary level. This compares to 1.5 million learners at post-secondary non-tertiary, 1.2 million learners at short-cycle tertiary, 1.2 million learners at bachelor and 0.7 million learners at master level vocational/professional programmes. Source: Unesco-Oecd-Eurostat (UOE) joint data collection on education and training.
(33) With the goal of supporting excellence and internationalisation of VET, European vocational core profiles would define a certain share of a common training content at European level. The profiles – as part of Europass platform and complemented, where possible, by vocational digital learning tools - have a potential to significantly facilitate mobility of learners and workers, automatic recognition of qualifications, and the development of joint vocational education and training curricula, qualifications and micro-credentials.
(34) European Commission Study on Mapping of Centres of Vocational Excellence: https://ec.europa.eu/social/main.jsp?catId=738&langId=en&pubId=8250&furtherPubs=yes
(35) This ambition is based on the Commission’s proposal for the next Multi-annual Financial Framework.
(36) This action will be coordinated with the European Research Area.
(37) The roll out of the EU Bioeconomy Strategy is a good example towards this direction with actions enabling skills development, synergies with education and lifelong learning.
(38) ICT for work: Digital Skills in the Workplace: study carried out for the European Commission by Ecorys and Danish Technology Institute, 2017
(39) Eurofound, Living, working and Covid-19, April 2020.
(40) OECD (2019), Going Digital: Shaping Policies, Improving Lives, OECD Publishing, Paris. Cf. OECD Employment Outlook 2019 : The Future of Work, box 2.1.
(41) ENISA, Cybersecurity skills development in the EU, March 2020.
(42) The Commission’s Digital Economy and Society Index (DESI) monitors on a yearly basis the level of basic as well as advanced digital skills in each Member State and in the EU. 
(43) https://ec.europa.eu/eurostat/statistics-explained/index.php/Tertiary_education_statistics#Graduates
(44) Data on STEM tertiary graduates from Eurostat [educ_uoe_grad04].
(45) OECD, Why don’t more girls choose STEM careers  
(46) 2018 International Computer and Information Literacy Study (ICILS)
(47) European Commission, 2016, Does the EU need more STEM graduates ?, section 3.3.1.
(48) The Gender Equality Strategy highlights the support for women’s entrepreneurship by EU cohesion policy.
(49) OJ C 484/01 24.12.2016
(50) Based on the data from the EU Adult Education Survey.
(51) Micro-credentials can be defined as documented statements that acknowledge a person’s learning outcomes, which are related to small volumes of learning and that for the user are made visible in a certificate, badge, or endorsement (issued in a digital or paper format).
(52) EURES is the European Job Mobility Portal that facilitates the free movement of workers across the EU. It provides an online job database and provides a wealth of information on intra-EU mobility for job-seekers and employers. https://ec.europa.eu/eures/public/homepage
(53)

EURAXESS - Researchers in Motion  https://euraxess.ec.europa.eu/  delivers information and support services to professional researchers, supporting researcher mobility and career development, while enhancing scientific collaboration between Europe and the world.

(54) Legally residing migrants continue to face difficulties showcasing their skills and qualifications acquired outside the EU. Cf. JRC (2020) “Foreign Degrees, Region of Birth and Under-utilisation of Tertiary Education in the EU”.
(55) Available indicators often do not allow capturing the qualitative aspect of training. Evidently, this Skills Agenda drives a step-change also in qualitative terms by pushing to the front the principle of ‘skilling for a job’.
(56) Assuming an average duration of the learning activities of 3 months.
(57) The four indicators link in with the Social Scoreboard that accompanies the European Pillar of Social Rights. In addition to the two indicators on adult participation in learning during the last 12 months and basic digital skills, which are already in the Social Scoreboard, two more indicators on the participation in education and training of low-qualified and unemployed adults are proposed. These indicators are also well recognised, have been endorsed by the Employment Committee in 2018 (Joint Employment Report 2019) and have been used in the European Semester ever since. The indicator on digital skills is the same used in the Digital Economy and Society Index (DESI).
(58) The indicator shows the share of adults aged 25-64 who have participated in at least one formal or non-formal education or training activity (but excluding guided-on-the-job training activities) during the 12 months before the survey interview. The current source of the data for this indicator is the EU Adult Education Survey. As of 2022, the data for this indicator will come from the EU Labour Force Survey.
(59) The definition and sources of the indicator are similar to the first indicator on adult participation in learning. The main difference is the focus on low-qualified adults, i.e. those adults who have achieved at most a lower secondary qualification (or below) as their highest formal educational qualification. Thus, the indicator measures the share of low-qualified adults who report having participated in formal or non-formal education and training over a period of 12 months.
(60) The data is available from the EU Labour Force Survey. ‘Recent learning experience’ refers to participation in formal or non-formal education and training during the last 4 weeks.
(61) The source of the data for this indicator is the EU Community survey on ICT usage in households and by individuals.
(62) This estimate is based on the number of additional adult learners needed in each country to reach the 50% participation mark (compared to current participation levels), combined with the country-specific lump-sums per hour of employee training for reimbursements from the European Social Fund from the Commission Delegated Regulation 2019/2170 and assuming an education or training duration of 100 hours per year.
(63) Amounts in this section are mentioned in 2018 prices.
(64) Proposal for a Regulation on the public sector loan facility under the Just Transition Mechanism, COM(2020) 453 final.
(65) “A Strategist’s Guide to Upskilling”, PwC, 15 July 2019.
(66) Understanding Social Impact Bonds, OECD Working Paper 2016, pg. 4.