How to measure skill mismatch is a core concern. Three alternative methods have been used: systematic job evaluation (objective measure), worker self-assessment (subjective measure) and empirical method (where data sets do not contain a direct question on the phenomenon). Each method has weaknesses. The report argues that over and underskilling may be superior measures to over and undereducation, especially if we are concerned with potential welfare losses. Skills obsolescence can be measured in several ways, but little consensus exists on which method is the most appropriate, while few data sets contain questions that can be used to assess skills obsolescence. Good data are probably the most crucial prerequisite to supporting timely, effective and evidence-based skill mismatch policies. The current shortcomings of data sets may take years to remedy. Ideally, new matched employer-employee panel data, with information on labour demand and supply, should be developed. Collecting these data is very expensive and several years of data are needed for full research potential. Individual or household data can be used instead, but with a comprehensive coverage of the various elements of mismatch, which is not currently the case. Remedying existing data sets is cheaper than developing new ones. An alternative cost-effective method for collecting Europe-wide data on mismatch could be a new module containing questions on mismatch, possibly introduced in several existing European large panel surveys at regular but infrequent intervals (such as once every three years). We support the view that alternative means of data collection should also be considered for issues that may be too detailed to be informed through conventional interviews.

The economic crisis has had a dramatic impact on the European labour market. Even in the best case, it is likely that employment growth in Europe will only recover gradually over the next decade. But there is also good news for Europe’s employment prospects. According to Cedefop’s latest forecast of the skills demand and supply in Europe, around seven million more jobs will be generated by 2020 (new jobs created less jobs lost elsewhere) than there are today – despite the recession. In addition it is estimated that another 73 million job opportunities will be created due to the need to replace workers who, for example, retire or change jobs. Consequently, the total number of job opportunities over the next decade is projected to rise to around 80 million. The question is, do we have the right skills to fill them?

There is a skill gap between today’s high school graduates and the needs of employers related to the demands of the 21st century. These skills, frequently referred to as 21st century skills, include students’ ability to problem solve, communicate, be creative and innovative and work in teams. This multi-site case study explores how leaders in four public school districts in the EdLeader Network utilize curriculum and assessment systems in support of developing 21st century skills in students. Key findings of the study include the importance of establishing a common definition and understanding of 21st century skills early in district work, utilizing a group of “early adopters” or “innovators” to help build capacity in administrators and staff, and working to integrate 21st century skills into existing curriculum and assessment structures. Process findings highlight the interconnectedness of capacity building, systems work, and translation and implementation of 21st century skill knowledge by district administrators and staff. Results suggested integrating 21st century skills into curriculum systems is a precursor to systematically assessing and reporting on the skills. A limitation to the study was the focus of EdLeader Network districts, thus the results are not generalizable. Further research is needed to more deeply understand the processes, resources and tools utilized by districts doing this work, without the support inherent in the EdLeader Network.

The future development of skills – both skill needs and supply – on European labour markets ranks high on the current policy agenda. The year 2008 was particularly marked with an increased political awareness of anticipation of skill needs by various recent policy documents calling for assessment of future skill requirements at both national and European levels. Cedefop, with support of its expert network Skillsnet, has been proactive in this respect and delivered, at the beginning of 2008, a first pan-European forecast of occupational skill needs up to 2015 for EU-25, Norway and Switzerland. The results were presented for the first time at Cedefop’s Agora conference ‘Skills for Europe’s future’ organised on 21-22 February 2008 in Thessaloniki. Other objectives of the conference were to discuss the findings and future network plans with policy-makers, social partners, practitioners and all other relevant stakeholders. It also aimed to disseminate other information on future skill needs collected and shared among experts and researchers in Cedefop’s network Skillsnet; these are summarised in the proceedings.

Decisive action on digital skills is the most effective way to secure a greater share of the world’s value added work and long-term economic stability. Based on up-to-date, authoritative research, this report demonstrates why this is the case, sets out a compelling vision for the UK’s future in a digital world, and identifies the action needed in order to realise that vision.

The current wave of technological change based on advancements in artificial intelligence (AI) has created widespread fear of job losses and further rises in inequality. This paper discusses the rationale for these fears, highlighting the specific nature of AI and comparing previous waves of automation and robotization with the current advancements made possible by a wide-spread adoption of AI. It argues that large opportunities in terms of increases in productivity can ensue, including for developing countries, given the vastly reduced costs of capital that some applications have demonstrated and the potential for productivity increases, especially among the low-skilled. At the same time, risks in the form of further increases in inequality need to be addressed if the benefits from AI-based technological progress are to be broadly shared. For this, skills policy are necessary but not sufficient. In addition, new forms of regulating the digital economy are called for that prevent further rises in market concentration, ensure proper data protection and privacy and help share the benefits of productivity growth through a combination of profit sharing, (digital) capital taxation and a reduction in working time. The paper calls for a moderately optimistic outlook on the opportunities and risks from artificial intelligence, provided policymakers and social partners take the particular characteristics of these new technologies into account.

The recent enlargement of the European Union (EU) has fundamentally changed migration patterns to the UK. Over the past five years, it has brought hundreds of thousands of new EU citizens into the UK’s society and labour market. The new migration poses distinctive new challenges for those who work to promote equality in the UK. An estimated 1.5 million workers have come to the UK from new EU member states since May 2004, and the number of eastern European nationals resident in the UK has increased to about 700,000. Not only have eastern Europeans made up about half of labour immigration in recent years; they also differ substantially from the UK’s previous immigrant groups. The catch-all term ‘eastern Europeans’ refers to a heterogeneous group of migrants who come to the UK for contrasting motivations and for varying time periods. On average, however, these individuals (and especially Polish people) are young and work for low wages in low skill jobs, even if they are highly educated (in other words they ‘downgrade’ and have a lower return on their education achievements than other migrant groups). Unlike other groups they work across the country in diverse and dispersed locations. EU freedom of movement has given recent migrants substantial flexibility, and this is reflected in their patterns of work and mobility. The new EU citizens’ migration strategies have often been distinctively informal. Many rely on recruitment agencies and strong social networks for employment, while often exhibiting ‘circular’ or ‘shuttling’ movement to and from the UK. Many come without knowing how long they will stay, while some move between the UK and their home country on a regular basis. A large proportion have found work in unskilled occupations, often in areas that have not typically attracted substantial immigration. The recent migration is still in flux, and we should expect continued change and fluctuation in its nature and volume; not least in response to the economic crisis.

Low-skilled prime-age men are less likely to be employed than high-skilled prime-age men, and the differential has increased since the 1970s. I build a search model encompassing three explanations: (1) factors increasing the value of leisure, such as welfare and recreational gaming/computer technology, reduced the supply of low-skilled workers; (2) automation and trade reduced the demand for low-skilled workers; and (3) factors affecting job search, such as online job boards, reduced frictions for high-skilled workers. I find a supply shift had little effect, while a demand shift away from low-skilled workers was the leading cause, and search frictions actually reduced employment inequality.

The 2015 Engineers Canada Labour Market Study provides supply and demand projections for 14 engineering occupations. The report highlights a large and growing need to replace retiring engineers as they exit the workforce. This is particularly relevant for civil, mechanical, electrical and electronic engineers as well as computer engineers. Replacement demand for engineers is an important theme that will be relevant for the next decade as the baby boom generation retires.