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HUMAN RESOURCE DEVELOPMENT TARGETS AND MONITORING A background note for the Policy Leaders’ Forum, 10-11 October 2013 The FRAME initiative is built around four components: 1) foresight; 2) reviewing institutional arrangements; 3) monitoring; and 4) regional cooperation. The components are treated as unique interventions which constitute the building blocks of the sector approach to human resource development (HRD). The third component – monitoring – will lead to the development of an indicators- based tool to monitor progress towards achieving the skills 2020 vision developed during the foresight component. It will also strengthen accountability in implementing the sector-wide approach in HRD in line with the national, regional and European strategic objectives. Ambitious European and regional targets The critical role of education and skills are at the heart of the Europe 2020, Education and Training 2020 (ET 2020) and South East Europe Strategy 2020 (SEE 2020) strategies, not only as drivers for growth, employment and competitiveness but also to help individuals adapt to constantly changing demands on the labour market and to improve social cohesion. Specific headline targets have been committed at the EU level, supported by corresponding national targets which are highly relevant for Human Resources Development (HRD). The countries of South East Europe and Turkey (SEET) share common aspirations for EU membership and are in various stages in the process of accession to the European Union. Throughout the accession process, the countries promote networking, mutual learning among and between SEET stakeholders, the European Commission, EU Member States and other international organisations, regarding education, employment and social cohesion. A regional strategy for cooperation towards smart, sustainable and inclusive growth, SEE 2020, will be adopted soon. SEE 2020 brings the regional challenges and priorities by focusing on major economic opportunities and cooperation enhancement as a backbone for regional development. Education and employment are well positioned with three headline targets aimed at increased GDP per person employed, number of highly qualified and overall employment rate. Both the EU and SEE 2020 strategies rely on a strong inter-linkage between priorities and targets, and acknowledge that real and long term progress depends on an integrated reform package covering different areas: economic development, education and training, labour market and social aspects. Relevant examples at the EU level are the National Reform Programmes drafted by the Member States, using an integrated approach to set priorities, targets and actions, complemented by a consistent cross-country monitoring, progress assessment and peer review processes. Diversity of national targets – striving for convergence towards regional and European targets On education, employment and social inclusion, the SEET countries have a wide diversity of priorities and targets set at the national level, and with different time horizons. The diversity of national targets mirrors the countries’ different contexts, development and challenges. The annexed tables on education, employment and social inclusion illustrate this wide range of indicators. This reinforces the argument for enhancing the link between the national, regional and European follow-up and progress monitoring mechanisms in the field of education, employment and social inclusion at country and regional level. HUMAN RESOURCE DEVELOPMENT TARGETS AND MONITORING | 02
There is a golden opportunity for mutual exchange, at both the regional and EU levels, on how to monitor progress based on an integrated approach of priorities, targets and indicators. The main challenges are: ■ The availability at national level and comparability of data at the regional and European levels (e.g. human and financial resource constrains, time lag in data collection, inconsistencies of methodologies over time, etc.); ■ Inconsistent use of available data for policy making due to incomplete data processing and/or low relevance of information gathered; ■ Incomplete mechanisms to monitor the progress; and ■ Insufficient robustness of the mutual learning processes. Skills for innovation The EU has made decisive steps to improve its capacity to measure performance in innovation output by developing a composite indicator to complement the EU 2020 headline target on raising investment in Research & Development to 3% of GDP. The new indicator on innovation output focuses on four components relevant for measuring the extent to which innovative sectors contribute to jobs expansion and competitiveness: 1. Technological innovation measured by the number of patent applications per billion Euros of GDP; 2. Employment in knowledge-intensive activities as percentage of total employment; 3. Competitiveness of knowledge-intensive goods and services to reflect each country capacity to reach global markets with innovative products and services; and 4. Employment in fast-growing firms in innovative sectors. The new composite indicator is highly sensitive to the skills dimension as all components are closely linked to the capacity of the HRD sector to generate skills to support innovation (in particular the second component which indicates how the supply of skills feeds into the economic structure). Innovation is high on the SEET policy agenda at the country and regional levels (e.g. SEE 2020 Strategy) but a challenge remains: the availability and robustness of relevant indicators to reflect technological advancement and innovation as main contributors to increased competitiveness. Opportunities for streamlining and optimising synergies related to HRD The FRAME Initiative role The monitoring of the ET 2020 and SEE 2020 Strategies creates demand for streamlined key indicators relevant for evidencing progress. This encourages the countries to engage in working jointly on consolidated indicators that realistically reflect national and regional priorities and targets. In pursuit of these priorities and targets, HRD related policies and institutional framework must address the issue of skills for future, including the increased potential for innovation. The overall objective of the FRAME Initiative is to support countries to develop integrated medium to long-term policies for skills generation. FRAME serves as a catalyst to define “Skills for Future” visions and roadmaps for the adaptation of education and training and labour market systems to push forward the vision. It is part of the foresight as change management tool to monitor closely achievements HUMAN RESOURCE DEVELOPMENT TARGETS AND MONITORING | 03
towards the vision for skills. Accordingly the results of the foresight exercise are coupled with follow-up mechanisms at the national level based on a sound monitoring tool. Relying on a participatory approach the project aims at ensuring commitment and agreement of national stakeholders for a monitoring tool to measure progress in policies on skills generation and in implementing the related road map. The objective of the FRAME Monitoring component is to select a set of qualitative and quantitative indicators that can monitor: (i) the achievements in outcomes related to skills generation; and (ii) the evolution in the implementation of national policies towards the vision for skills. The process of indicator selection will take into consideration the national, regional and European strategic objectives and targets in order to ensure relevance at national level, provide consistency across countries and enhance the mutual learning processes. To this end, the monitoring tool is intended to support policymakers in assessing the progress towards the skills vision for 2020, based on three core elements: ■ Agreement on a common methodology, set up at the regional level but adapted to national needs; ■ Agreement on the indicators which are at the basis of the monitoring tool; and ■ Definition of national targets. ETF work in the region is intended to benefit from the National Technical Teams’ input and it comprises the following key elements: ■ Indicators (relevant for the country’s vision for skills); ■ Baseline data (describing the current situation); ■ National Targets (defined by government representatives); and ■ Shared Methods (for data collection and data processing). Points for discussion: ■ The role of monitoring in achieving the national skills vision and convergence towards regional and European targets ■ Monitoring as a tool to encourage and facilitate effective policy making ■ The links between country monitoring mechanisms and agreed European and regional targets relevant for skills generation HUMAN RESOURCE DEVELOPMENT TARGETS AND MONITORING | 04
FACTSHEET – EDUCATION AND TRAINING Europe 2020 Strategy Target - Share of early school leavers: below 10% Early leavers from education and training in 2012 (%, age group 18-24)1 50 40 30 20 10 0 Source: Eurostat and National Statistical Offices (Enlargement Countries), 2013. Notes: * 2010 data; ** 2011 data. Montenegro: 15.5% (females), 9.2% (males), 2011. Target - At least 40% of 30-34 year-olds completing third level education Tertiary educational attainment in 2012 (%, age group 30-34)2 60 50 40 30 20 10 0 Source: Eurostat and National Statistical Offices (Enlargement Countries), 2013. Notes: * 2010 data; ** 2011 data. 1 Bosnia and Herzegovina, Montenegro and Kosovo (This designation is without prejudice to positions on status, and is in line with UNSCR 1244 and the ICJ Opinion on the Kosovo Declaration of Independence) not available. 2 Ibid 1. HUMAN RESOURCE DEVELOPMENT TARGETS AND MONITORING | 05
Draft SEE 2020 Strategy3 Targets (Smart Growth pillar) ■ Increase GDP per person employed from EUR 27,485 at PPS to EUR 36,300 at PPS ■ Add 300,000 highly qualified persons to the workforce Regional 4 average/ ALB BiH CRO KOS MKD MNE SER total Growth of GDP per person employed by 33% Baseline – 2010 (EUR at PPS) 27,485 17,839 29,183 40,990 14,966 28,029 30,321 25,864 Target – 2020 (EUR at PPS) 36,300 24,000 40,200 52,000 20,200 35,000 37,000 34,000 Growth of highly qualified persons in the workforce (300,000 people) Baseline – 2010 (million people) 1.7 0.21 0.21 0.5 n/a 0.17 0.05 0.54 Target – 2020 (million people) 2.0 0.26 0.25 0.6 n/a 0.2 0.06 0.65 National targets ALBANIA National Strategy for Vocational Education and Training 2013-2020 (draft). Targets for 2020 increase enrolment rate in upper secondary education: 97% increase enrolment rates in tertiary education: 70% achieve a 30% share of students attending secondary vocational education BOSNIA AND Strategic Directions for Development of Education in Bosnia and Herzegovina 2008 – 2015. Targets for 2015 HERZEGOVINA Enrolled and completion rates in compulsory education increased to 100% Enrolment rate in secondary education increased to 90% Enrolment share in gymnasia and four-year vocational schools increased to 80% Enrolment rate in higher education increased to 32%. Illiteracy rate reduced to 2% KOSOVO* Kosovo Education Action Plan (KESP) 2011-2016. Targets for 2015 and 2016 all children aged 5-6 be included in pre-primary education by 2016 and that 35 per cent of children aged 0-5 be included in various forms of pre-school education; by 2016 over 95% of Kosovo children attend compulsory education; at least 35 per cent of the population aged 18-24 have access to higher education by 2015 FORMER Draft Strategy for Vocational Education and Training in a Lifelong Learning Context – Better Skills for a YUGOSLAV Better Tomorrow of FYR Macedonia. Target for 2020 REPUBLIC OF Train youth and adults without qualifications at ISCED 3 level and higher MACEDONIA MONTENEGRO National Strategy for Employment and Human Resource Development 2012-2015 Targets for 2015 Share of university graduates in the age group 25-34: 35% Share of children enrolled in preschool in total no. of children up to 6 years of age: 30% SERBIA National Education Strategy. Targets for 2020 Drop out: In primary schools less that 5%, In secondary schools less than 5% Enrolment: 40% of VET students enrol in higher education, 95% of students in general secondary education enrol in higher education Adult education enrolment: 7% enrolled in adult education programmes TURKEY Turkey – Vision 2023. Targets for 2023 100% literacy rate for people under 50 To have more than 200 universities Lifelong learning participation: 8%. Annual training of 400.000 unemployed to attain skills 3 The sections on SEE 2020 Strategy are based on the first draft of the Strategy “South East Europe 2020: Jobs and Prosperity in a European Perspective” (RCC, August 2013). 4 Although a recent EU Member State, Croatia participates in the SEE 2020 Strategy process. HUMAN RESOURCE DEVELOPMENT TARGETS AND MONITORING | 06
FACTSHEET – EMPLOYMENT Europe 2020 Strategy Target - 75% of the 20-64 year-olds to be employed Employment rate in 2012 (%, age group 20-64)5 90 75 60 45 30 15 0 Estonia EU28 Poland Finland United Kingdom Serbia** Bulgaria Czech Republic Greece Portugal Slovenia Ireland Cyprus Lithuania Luxembourg Slovakia Sweden Germany Croatia Latvia Hungary Malta Romania FYRM Belgium Italy Denmark Netherlands Turkey Spain France Austria Albania* EU27 Kosovo** Source: Eurostat and National Statistical Offices (Enlargement Countries), 2013. Notes: * 2010; 2012, age group 15-64: 56.4%; ** 2011. Bosnia and Herzegovina: 38.5%, age group 15-64, 2012; Montenegro: 47.4%, age group 15-64, 2012. SEE 2020 Strategy Target (Inclusive Growth pillar) - Increase the overall employment rate from 39.5% to 44.4% (% of population 15+) Regional average/ ALB BiH CRO KOS MKD MNE SER total Increase in overall employment Baseline – 2010 (%, population 15+) 39.5 47.1 32.5 41.1 41.7 38.7 40.1 37.9 Target – 2020 (%, population 15+) 44.4 54.3 33.9 47.5 45.8 43.6 49.6 43.8 5 Bosnia and Herzegovina and Montenegro not available. HUMAN RESOURCE DEVELOPMENT TARGETS AND MONITORING | 07
National Targets ALBANIA Sectoral Strategy on Employment and Vocational Training 2007-2013, part of the National Strategy for Development and Integration 2007-2013 (NSDI). Targets for 2013 Unemployment level: 11.5% Employment rate: 56% Number of PES matching/intermediations: 13.000 Number of unemployed participating in in training: 7,500 At least 20% of the registered unemployed people participate in a training or employment measure Main priorities for 2020: Enhancing the number of people participating in adult training Reducing the share of long-term unemployment Reducing the youth unemployment rate Reducing gender gaps in labour force participation and in employment BOSNIA AND Strategy for Employment HERZEGOVINA Targets for 2014: 2% annual increase in overall employment rates 2.5% per year increase in female employment Youth unemployment decreased to 30% by 2014 KOSOVO* Ministry of Labour and Social Welfare Strategic Action Plan 2011-20136 Target for 2013 Increase of vocational training capacities for jobseekers (unemployed) by 35% by 2013 FORMER YUGOSLAV National Employment Strategy 2011-2015 and the Action Plan on Youth Employment 2015 REPUBLIC OF Targets for 2015 MACEDONIA Increase in the number of secondary education leavers (age group 15-29) who are employed by: 14% Decrease in the number of youth (age group 15-24) who leave the secondary education system without qualifications: 1.5 percentage points Increase the employment rate of youth (age group 15-29) to: 29% MONTENEGRO National Strategy for Employment and Human Resource Development 2012-2015 Targets for 2015 Employment rate (15-65): 60% Female employment rate (15-65): 50% Unemployment rate (15-65): 15% Registered unemployment rate: 8% Youth unemployment rate (15-24): 28% Share of LTU in total unemployed: 55% Share of self-employed in total employed: 20% SERBIA National Employment Strategy for the period 2011 - 2020 Projections 2020 Activity rate (15-64): 68.8% Employment to population ratio (15-64): 61.4% Employment to population ratio (20-64): 66.3% Unemployment rate (15-64): 10.8% Unemployment rate (20-64): 8.7% Youth unemployment rate (15-24): 24% Share of LTU (15-64): less than 50% Share of ALMP funds allocated as percentage of GDP: 0.5% TURKEY Turkey – Vision 2023 Targets set for 2023 Unemployment rate: 5% Employment rate: 50% Unregistered employment in the non-agricultural sector: 15% Labour force participation rate of women: 35% 6 A new Sectoral Strategy of the Ministry of Labour and Social Welfare of Kosovo is under development with 2020 targets in employment and social welfare. HUMAN RESOURCE DEVELOPMENT TARGETS AND MONITORING | 08
FACTSHEET – SOCIAL INCLUSION EU 2020 Strategy Target - At least 20 million fewer people in or at risk of poverty and social exclusion People at risk of poverty or social exclusion in 2011 (%) 50 40 30 20 10 0 Source: Eurostat, 2013. Note: As data for the indicator – “People at risk of poverty or social exclusion” (sub-indicators: persons at risk of poverty, severely materially deprived, living in households with very low work intensity) are not available for the Enlargement countries, the following table provides data on the percentage of the population living below the national poverty line. Poverty headcount ratio at national poverty line (% of population) Poverty headcount ratio Last available year Albania 12.4 2008 Bosnia and Herzegovina 14.0 2007 Former Yugoslav Republic of Macedonia 19.0 2006 Kosovo 29.7 2011 Montenegro 9.3 2011 Serbia 9.2 2010 Turkey 18.1 2009 Source: The World Bank, 2013 Notes: National poverty rate is the percentage of the population living below the national poverty line. National estimates are based on population-weighted subgroup estimates from household surveys. SEE 2020 Strategy No specific target is set for poverty combating, although some measures of education and labour market inclusiveness are inserted in the Inclusive growth pillar (Employment dimension) and Smart growth (Human Capital Development Dimension). National Targets ALBANIA Strategy for Social Inclusion 2007-2013 (crosscutting strategy, part of NSDI) Targets for 2015 Absolute poverty: 12.2 % HUMAN RESOURCE DEVELOPMENT TARGETS AND MONITORING | 09
No households living in extreme poverty BOSNIA AND - HERZEGOVINA KOSOVO* Ministry of Labour and Social Welfare Strategic Action Plan 2011-2013 Target for 2013 Annual increase of provision of social and family services’ level by 20% -local and central levels Former Yugoslav - Republic of MACEDONIA No quantitative targets set in the National Strategy on Alleviation of Poverty and Social Exclusion 2010 – 2020 MONTENEGRO National Strategy for Employment and Human Resource Development 2012-2015 Targets for 2015 Poverty rate: 5% Share of socially vulnerable groups in total unemployment: 8% SERBIA - TURKEY According to the 10th National Development Plan for 2014 – 2018 Targets for 2018 Gini coefficient: 0.36 Population below $ 4.30 per person per day rate: less than 1%; Relative poverty: 9% HUMAN RESOURCE DEVELOPMENT TARGETS AND MONITORING | 10
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