White Paper

The digital economy now permeates countless aspects of the world economy, impacting sectors as varied as banking, retail, energy, transportation, education, publishing, media or health. Information and Communication Technologies (ICTs) are transforming the ways social interactions and personal relationships are conducted, with fixed, mobile and broadcast networks converging, and devices and objects increasingly connected to form the Internet of Things. How can OECD countries and partner economies maximise the potential of the digital economy as a driver for innovation and inclusive growth? what are the evolutions in the digital economy that policy makers need to consider and the emerging challenges they need to address?

This report provides policy makers with insights and tools to mitigate the challenges of ageing societies and make the most of the opportunities they present. Three considerations underpin the assessment. First, ageing societies are not “a problem” as such. Longevity is the result of socioeconomic development and can provide opportunities for growth, such as through technological development. Second, ageing societies are not simply societies of “older people”. Cities, where older people live with a high quality of life, can be good places for any generation. Third, unlike other potential challenges, such as a financial crisis or natural disaster, ageing trends and their impact can be fairly predictable. Cities can thus take action now to prepare for future demographic changes. Those cities at the forefront in addressing these changes offer useful experiences for others. Policies for ageing societies are thus not only about responding to today’s needs and opportunities, but also about anticipating the future population structure, and the economic and social pathways for a smooth transition. Cities are essential partners for effective policy action in ageing societies and offer inspiring examples. Ultimately, cities are striving, in the face of increasing demographic pressures, to enhance their attractiveness to households and firms. Efforts to promote wellbeing for their residents, whether young or old, will help them not only support increasing numbers of older people as effectively and efficiently as possible, but also attract the younger people that they need to ensure continued economic and social dynamism. Ultimately, policies to meet the challenge of demographic change will be central to the construction of economically and socially resilient cities.

Migration is a feature of social and economic life across many countries, but the profile of migrant populations varies considerably. In part this is because of the variety of sources of migration. In much of Europe, for example, citizens enjoy extensive rights to free movement. In Australia, Canada and New Zealand, managed labour migration plays an important role. Other sources include family and humanitarian migration. Whatever its source, migration has important impacts on our societies, and these can be controversial. The economic impact of migration is no exception. Benefit or burden – what’s the reality? To answer this question, it can be helpful to look at migration’s impact in three areas – the labour market, the public purse and economic growth.

Based on a series of 20 country studies, this synthesis report of Skills beyond School looks at how OECD countries are responding to this growing demand for skills, and the further steps they need to succeed. The report underlines many challenges: while some countries have thriving post-secondary vocational sectors, others have found it difficult to find a place for shorter (one-or two-year) programmes in competition with better known academic qualifications. The engagement of the social partners – employers and trade unions – is as vital as it is sometimes elusive. Vocational training qualifications are sometimes outdated or lack currency in the labour market. This study identifies good practices and puts the spotlight on those countries that are making progress. Still, it argues that countries now need to step up their efforts to deliver higher quality post-secondary vocational programmes. This means programmes that integrate an element of work-based learning and foundation skills of literacy and numeracy, teachers who are well-versed in the techniques of modern industry (as well as in teaching ability), and well-prepared school and college leaders. It also implies strong qualifications (prepared with the involvement of employers), guaranteeing possession of a relevant skillset upon completion, effective career guidance for students based on good data about the labour market outcomes, and clear pathways from the vocational programmes to higher and academic education.

This first OECD Skills Outlook presents the initial results of the Survey of Adult Skills (PIAAC), which evaluates the skills of adults in 22 OECD member countries and two partner countries. The PIAAC survey was designed to provide insights into the availability of some key skills and how they are used at work and at home through the direct assessment of key information processing skills: literacy, numeracy and problem-solving in technology-rich environments. The book examines the social and economic context, the supply of key information processing skills, who has these skills at what level, the supply of and demand for these skills in the labour market, the acquisition and maintenance of skills over a lifetime, and how proficiency in these skills translates into better economic and social outcomes.

It is now widely recognised that it is essential to decouple economic growth from unsustainable environmental pressures, such as those leading to global climate change, and that a successful transition towards a low-carbon economy will necessarily reshape the labour market. Labour market and skill policies can make an important contribution to a successful transition by facilitating the structural change required to put green production practices in place, for example by minimising skill bottlenecks in expanding green sectors. The "greening" of the labour market will create new opportunities for workers, but also new risks that could undermine political support for green growth policies. Accordingly, labour market and skills policy should also seek to maximise the benefits of green growth for workers while assuring that unavoidable adjustment costs are shared fairly. Therefore, the aim of this report is to provide guidance for how best labour market and skill development policy can contribute to a fast, efficient and fair transition to a low carbon and resource efficient economy, particularly in developed countries.

Across OECD countries, governments are having to work with shrinking public budgets while designing policies to make education more effective and responsive to growing demand. The 2011 edition of Education at a Glance: OECD Indicators enables countries to see themselves in the light of other countries' performance. It provides a broad array of comparable indicators on education systems and represents the consensus of professional thinking on how to measure the current state of education internationally. The indicators show who participates in education, how much is spent on it, and how education systems operate. They also illustrate a wide range of educational outcomes, comparing, for example, student performance in key subjects and the impact of education on earnings and on adults' chances of employment. New material in this edition includes: an analysis of tuition-fee reforms implemented since 1995; indicators on the relationship between social background and learning outcomes; indicators on school accountability in public and private schools; an indicator on the fields of education chosen by students; an indicator on labour market outcomes of students from vocational and academic programmes; indicators on the scope of adult education and training; indicators on student engagement in reading.

This 30th edition of the OECD Employment Outlook examines the labour market performance of OECD countries as well as the prospects in the short term. Chapter 1 offers an overview of recent developments, focusing on how marginalised groups (youth, the low skilled, women, the chronically unemployed) have fared during the crisis. Chapter 2 looks at what structural factors may contribute to labour markets being able to weather economic downturns with limited social costs. Chapter 3 examines the relationship of labour compensation to domestic output. Chapter 4 looks at the policy challenges posed by green growth and jobs. The chapters are complemented by a comprehensive statistical annex.

Vocational education and training are deeply embedded and widely respected in German society. The system offers qualifications in a broad spectrum of professions and flexibly adapts to the changing needs of the labour market.