Investing in skills

A NEW SKILLS
AGENDA
for Europe
INVESTING IN SKILLS
#EUSkillsAgenda
As the working-age population declines, a more skilled workforce, capable of contributing
and adjusting to technological change and new patterns of work organisation, is essential
to maintain productivity and growth in Europe.
Skills drive GDP growth
Higher investment in skills leads to a more competitive economy. At country level, education
is an important driver for economic growth.
Correlation between GDP growth and student achievement, 1960–2009
Average annual growth rate of real GDP per capita (%)
6
5
4
NLD
3
GRC
GBR ITA
ESP
AUT
GER
2
1
0
350
400
450
500
550
Average scores on international student achievement tests
Source: Hanushek and Woessmann (2015), “The Knowledge Capital of Nations: Education and the Economics of Growth”
Investment in education pays off. In the EU-28, employment rates are highest for those with
higher education or VET diplomas; those with (secondary level) general education suffer a
substantial disadvantage in the labour market.
Employment rates of young adults aged 30–34 by level of education, 2014
(%)100
90
80
70
60
50
40
High
Medium (vocational education and training)
Medium (general education)
Low
30
20
10
0
AT
BE BG CY
CZ
DE DK EE
EL
ES EU-28 FI
FR
HR HU
IE
IT
LT
LU
LV MT NL
PL
PT RO SE
SI
SK UK
Source: DG EMPL calculation based on Eurostat Labour Force Survey data
Skills, an excellent investment for individuals
Higher levels of educational attainment and skills also go along with higher individual
earnings on the labour market. Among those who have a job, earnings increase on average
by 7.4% for each additional year of education.
Relative earning of employed adults (25–64) for EU-21* average
100 = average earning of adult with upper-secondary or post-secondary non-tertiary education
Tertiary education
Secondary education
Below secondary education
0
20
40
60
80 100 120 140 160 180
* EU Member States that are also members of the OECD
Source: OECD, Education at a Glance 2013
How will the New Skills Agenda for Europe help Member States to invest more in
skills and talents?
• Raise awareness among Member States and stakeholders
• Keep dialogue with Member States on how to make best use of EU Financial
Programmes (European Social Fund, European Regional Development Fund, etc.) to
achieve the Skills Agenda objectives
• Use the European Fund for Strategic Investments (EFSI) to boost private-sector
investment in skills development