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Other Services
Comprehensive sectoral analysis of emerging competences
and economic activities in the European Union
European Commission
Submitted to the European Commission, DG Employment, Social Affairs and
Equal Opportunities
Executed by:
TNO Netherlands Organisation for Applied Scientific Research
SEOR Erasmus University Rotterdam
ZSI Centre for Social Innovation
DG EMPL project VC/2007/0866
Other Services
This report is published as part of a series of forward-looking sector studies on New Skills and New
Jobs in the frame of the project Comprehensive Sectoral Analysis of Emerging Competences and
Economic Activities in the European Union.
This publication is commissioned under the European Community Programme for Employment and
Social Solidarity - PROGRESS (2007-2013).
This programme is managed by the Directorate-General for Employment, social affairs and equal op-
portunities of the European Commission. It was established to financially support the implementa-
tion of the objectives of the European Union in the employment and social affairs area, as set out in
the Social Agenda, and thereby contribute to the achievement of the Lisbon Strategy goals in these
fields.
The seven-year Programme targets all stakeholders who can help shape the development of appro-
priate and effective employment and social legislation and policies, across the EU-27, EFTA-EEA and
EU candidate and pre-candidate countries.
PROGRESS mission is to strengthen the EU contribution in support of Member States’ commitment.
PROGRESS will be instrumental in:
1. providing analysis and policy advice on PROGRESS policy areas;
2. monitoring and reporting on the implementation of EU legislation and policies in PROGRESS
policy areas;
3. promoting policy transfer, learning and support among Member States on EU objectives and
priorities; and
4. relaying the views of the stakeholders and society at large
For more information see:
http://ec.europa.eu/employment_social/progress/index_en.html
The information contained in this publication does not necessarily reflect the position or opinion of
the European Commission.
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European Commission
Other Services
Comprehensive sectoral analysis of emerging competences
and economic activities in the European Union
Executive Summary
The full study is available under the link
http://ec.europa.eu/restructuringandjobs
European Commission
Directorate-General for Employment, Social Affairs and Equal Opportunities
Unit F3
Manuscript completed in 2009Neither the European Commission nor any person acting on behalf of the Commission may be held
responsible for the use that may be made of the information contained in this publication.
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© European Communities, 2009
Reproduction is authorised provided the source is acknowledged.Preface
Education and of society and the economy, as a
training, in the means to increased competitive-
context of a life- ness and growth, as well as to great-
long learning er social cohesion, in Europe.
perspective, are
an indispensable This is more important than ever in
means for pro- the current situation of crisis that
moting adaptability and employabi will undoubtedly lead to substan-
lity, active citizenship, personal and tial changes in economic activities
professional fulfilment. in Europe coming years.
Investment in human capital With this in mind, the Commission
through better education, and the has elaborated a set of analysis of
development of skills and compe- emerging competences in 18 sec-
tences should be increased. It is tors. Those analysis are available
important to anticipate skills needs to all economic, social and profes-
— and also skills gaps — which are sional organisations, educations
emerging in the European labour and training institutions, etc. They
market, as well as to improve the can help them to refine their stra
matching of knowledge, skills tegies and to engage into forward-
and competences with the needs looking actions.
Robert Verrue
Director-General, Employment,
Social Affairs and Equal Opportunities DG
3Other Services Aims and methodology The renewed Lisbon strategy and by a number of other initiatives over European Employment strategy the oncoming year and beyond. The stress the need for Europe to place current economic crisis calls for the more emphasis on a better antici- reinforcement of policies aimed at pation of skill needs together with developing the employability of the the need to reduce labour markets workforce. This project fits within mismatches. These policies aims this policy objective. also at minimising social costs and facilitating adaptation during 18 sector studies, restructuring processes through one methodology a better anticipation and positive management of change. Globalisa- The results of this study aim to serve tion, technological change, climate as a guide in launching further EU change and demographic develop- and other actions to promote the ments (including ageing and migra- strategic management of human tion) in that respect pose huge chal- resources and to foster stronger lenges, comprising both risks and synergies between innovation, opportunities. In that context, the skills and jobs, taking into account Commission has launched recently the global context and encourag- the New Skills for New Jobs initiative ing adaptations to national and together with other related Euro- regional level. pean projects aimed at identifying future job and skills needs using To validate, add and complement quantitative modelling approaches. the findings of the project and While having advantages of robust- to make sure that results are dis- ness, stakeholders as well as the seminated as broadly as possible European Commission identified a across Europe, relevant stakehold- clear need for complementary more ers including European social part- qualitative forward-looking analy- ners, other services from the Com- sis. Consequently, the European mission with the expertise in the Commission commissioned in 2007 sectors analysed, representatives a series of 18 future-oriented sector from the European Parliament, studies (horizon 2020) on skills and the European Economic and Social jobs following a uniform, qualita- Committee, the Committee of the tive methodology. Results of these Regions, Eurofound and Cedefop studies have become available in were involved in the project from summer 2009, and will be followed the beginning. 4
Aims and methodology
Sectors Covered
Automotive industry
Defence
Textiles, wearing apparel and leather products
Printing and publishing
Chemicals, pharmaceuticals, rubber and plastic products
Non-metallic materials (glass, cement, ceramic…)
Electromechanical engineering
Computer, electronic and optical products
Building of ships and boats
Furniture and others
Electricity, gas, water & waste
Distribution, trade
Hotels, restaurants, catering and related services
Transport
Post and telecommunications
Financial services (bank, insurance and others)
Health and social work
Other services, maintenance and cleaning
A standard predefined methodo for emerging competences and
logy was developed by a panel of occupation profiles in terms of
experts under the direction of Prof jobs expanding, transforming or
Maria João Rodrigues and applied declining, and their implications
to all 18 studies to ensure consis- in terms of strategic choices and
tency and comparability of the subsequent recommendations for
results, the studies being produced companies, education and trai
by different contractors. ning systems, social partners and
public authorities at all levels. This
Based on the basic methodologi- foresight methodology implies an
cal framework, each contractor approach combining desk research
executed 7 defined steps, starting and expert knowledge.
with the mapping of main trends,
key drivers of change, leading to At the end of each sector study a
scenarios of plausible evolution final European workshop for the
and their implication for employ- sector was organised by the Com-
ment at the year 2020 time horizon, mission to validate results as well
the identification of implications as refine recommendations. In
5Other Services
addition to European Commis- of all sections were summarised
sion and Eurofound staff, about in a SWOT analysis and were used
20 experts per workshop from as input to identify key drivers.
industry, academia and sector
organisations including workers Drivers of change
and employers’ representatives with
a sound knowledge of jobs and On the basis of the mapping of
skills were invited to comment and the sector, a set of key drivers,
provide recommendations to the sector specific or not, was identi-
report as part of the methodology. fied. Literature review and expert
knowledge of the sector were
Brief description of then used to define a conclu-
the methodological steps sive list of sector-specific drivers.
Drivers were classified as exo
Mapping genous or endogenous depen
ding on the ability for the sector’s
The main purpose of this ana stakeholders and policymakers
lysis was to provide factual back- to influence them. These lists of
ground to identify key drivers drivers were also discussed in the
used in the subsequent scenario experts’ p anel workshops.
development. Consequently, the
Report analysed recent sector Qualitative scenarios and impli-
developments and trends and, at cations for employment trends
the same time, depicts the current
state of play in the sector with an The set of selected sectoral drivers
emphasis on innovation, skills of change served as an input to
and jobs. It was based on an ana develop scenarios for the evolution
lysis of available time series data of the sector and implications for
and relevant existing studies. It different occupations (composition
analysed 1) structural character- of employment / emerging compe-
istics (production, value added, tences) in the period 2008 to 2020.
employment in various dimen-
sions, and related factors); 2) Implications of scenarios
the value chain; 3) technological and emerging competences
change and innovation; 4) trade
and international competition as Scenarios were built to assess the
well as 5) regulation. The results implications for the level (absolute
6Aims and methodology
demand) and composition (relative were looked at in this step of the
demand compared to other job methodology, focussing more
functions) of employment of dif- particularly on the specific role
ferent job functions by 2020. New to be played by sectoral organi-
and emergent skills required by dif- sations, educational institutions
ferent job functions were identified and governments such as a stron-
based on the analysis of the evolu- ger cooperation between stake-
tion of past data on employment holders or an increased flexibility
by occupation, on the analysis from through modularisation of educa-
the present situation and of experts’ tion and training.
comments during the workshop.
The focus was on identifying and Recommendations
describing key and critical com-
petences for the future for each of Each sector study contains spe-
the major occupational function in cific recommendations to the
relation to the different scenarios sector. However, with the studies
elaborated. These formed the basis analysing Europe as a whole, the
for the strategic choices identified recommendations remain general
in a next step. and need a follow-up at the
national and regional level. The
Strategic choices for companies to intention of the project especially
meet emergent competence needs in the follow up phase is to use the
results to stimulate stakeholders
Each sector study assessed possible at lower territorial levels (national
strategic choices in terms of feasi- / regional) to work out results in
bility and actor involvement. The more details, repeat and adapt this
options comprised recruiting wor exercise to local needs rather than
kers from other sectors, countries, providing standardised solutions.
recruiting graduates, re-training Some general recommendations
employed workers as well as chang- call for an intensified co-operation
ing work organisation. between relevant stakeholders,
the need to invest strongly in
Specific implications human capital, more standardised
for education and training regulations, enhanced VET to
increase social mobility and coor-
Options to improve or to adapt dinated National and European
education and training systems Vocational Qualifications.
7Other Services
The other services sector –
main characterisation
For the purpose of this study other • washing and (dry-) cleaning of
services comprises the activities textiles and clothing;
summed up in Table 1. This report
concentrates on other personal • funeral and related activities;
services (93/96) and activities of
households as employer of domes- • physical well being activities
tic personnel (95/97). (sauna, steam bath, massage
salons, not fitness centres and
Other personal services comprise a not medical treatment);
variety of activities:
• other personal services (among
• hairdressing and other beauty others: dating and escort servi
treatment; ces, pet care service, astrologists
and spiritualists, tattooing and
piercing studio’s, etc.).
Table 1 Overview of activities and their relevance to this study
NACE Rev 1.1 NACE Rev 2.0 Description Relevancy
90 Sewage and refuse disposal, Irrelevant
sanitation and similar activities
91 94 Activities of membership Irrelevant
organizations
92 Recreational, cultural and Irrelevant
sporting activities
95 Repair of computers and Regarded as part
personal and household goods of retail
93 96 Other personal service activities Relevant
95 97 Activities of households as Relevant:
employers of domestic personnel Important share of
informal activity
98 Undifferentiated goods- and Less relevant
services-producing activities of
private households for own use
8The other services sector – main characterisation
The activities of households as rganizations (for instance orga-
o
employers are a special case, as nizations in sports, environment,
they belong for a large, if not major consumer interests, patients orga
part to the informal sector (moon- nisations) become more and more
lighting or undeclared work of the professional and relying less on
working force, officially inactive only volunteers. Although the
population and persons on bene- scale of employment might remain
fits). It comprises personal services rather small in these activities, a
(e.g. hairdressing, child care, pet further increase in employment
care and transport of elderly, sick can be expected, creating oppor-
and disabled) and activities like tunities for specialists. Repair and
cleaning, construction, repair and maintenance (95) is very often
gardening. But also administrative combined with trade and should
activities, such as assistance in fill- better be taken into account in
ing in forms (registration forms, tax the discussion of that sector. In our
forms), are delivered by individual opinion the household produc-
workers to households. For a part tion of goods and services for own
relatives, friends and acquaintanc- use (98) is also less relevant to this
es, partly paid, partly free of charge, study, as it will have little meaning
supply these services. in terms of required skills. However,
in various countries in the Middle
In this study activities of mem- and Eastern parts of the EU this
bership organizations (91/94) production might be important,
are less relevant. Nevertheless, in although it is not certain whether
some countries in the north and it is registered or measured accu-
west of the EU, some membership rately in the country statistics.
9Other Services
Main economic and
employment trends
Looking at the other services indus- the new member states the change
try as a whole, total value added was dramatic, with an annual aver-
in EU is € 282 billion. Value added age decline of value added of 6%
in the EU increased annually with between 1995 and 2006. Personal
1.6% between 1995 and 2006. There services in the EU make up 0.8% of
are, however, large differences in national GDP, both in the old and
the development of value added new member states.
between the EU 15 and the new
member states. In the EU 15 value Employment
added grew with an average of 1.8%
annually. Between 2000 and 2006 Employment in the EU in the other
the growth slowed down. In the new services industry totals about
member states value added declined 14 million jobs (Table 2). The over-
between 1995-2006 with an average whelming majority of the jobs,
of 1.3 % annually. In many cases the 90% are to be found in EU 15. The
overall economy grew faster than industry faces a structural growth
the other services sector. between 1995 and 2006, with an
annual average of 2.6% in the EU.
Value added in other personal ser- The growth in the new member
vices in the EU (NACE 1.1 code 93) states lies on a slightly higher level
amounts to € 93 billion in 2006. than in the EU as a whole. Employ-
Between 1995 and 2006 value ment growth is twice as high as
added in this sector increased with value added growth – indicating
a modest 0.8 annually. In EU 15 the limited possibilities for productiv-
growth was relative strong (1.3%). In ity growth in this sector.
Table 2 Employment other services, 2000-20061
Countries Level (*1000) Average annual Share in EU Change in
2006 growth (%) employ-ment share in EU
2000-2006 sector (%) employment
2006 sector (%)
2000-2006
EU 27 14 046 2.6 100 0
EU 15 12 638 2.6 90 0
NMS 1 409 2.7 10 0
Source: Eurostat/TNO data
10Main economic and employment trends
There appears to be no country elpers, cleaners and launders (16%
h
with a high concentration of other in EU 15 and 22% in new Member
services employment and also an States). These categories are gain-
increase of the number of jobs ing ground as the shares have risen
(designated as ‘winning’). There in the last seven years. In the new
are, however, countries with a high member states the change in share
concentration of other services is large for domestic helpers, clea
but with a declining employment. ners and launderers.
These countries are labelled ‘Losing
momentum’ and are always mem- Occupations and
bers of the EU 15. Two large groups education level
of countries do not have a high
concentration in other services and Only a few figures are available for
show opposite trends. Upcoming the education level combined with
countries are dominated by new occupations. It is clear, however,
member states, while retreating that the majority of the services
countries are dominated by old in this sector do not require more
member states. In this last group, than elementary skills. However in
however, also four new member the last seven years for most occu-
states are present. pations the share of low education
decreased, while the share of mid
Note, however, that these figures are education increased. In the new
including data for sectors not reflect- member states we see a decrease
ing our sectors of interest (like sec- both in low and mid education for
tor 90, waste). The next paragraph other service workers, where the
shows that developments are very share of high education increased
different when data are available for significantly. An exception are the
the sectors of interest. craft and related trade occupa-
tions, where the share of low edu-
Employment trends cation increased during the last
by job function seven years.
The occupation structure is domi- Occupations and gender
nated by other personal service
workers and other service work- Regarding the gender distribu-
ers (51% in EU 15 and 45% in new tion it is clear that in the EU female
Member States) and domestic employment is very high, except
11Other Services for craft and related trade workers. compared to 76% in the EU 15) For domestic personnel the share but also more women working in of female workers climbs up to other personal services (90% com- 94% in the EU. The share of female pared to 83% in the EU 15). The workers in other personal services share of women working in the amounts to 84%. The figures for the other services industry has slightly new member states differ modest- increased between 2000 and 2006 ly: they have more male domestic for most categories. The exceptions workers (13% compared to 6% in are other service and craft workers the EU 15) and craft workers (92% in the new member states. 12
SWOT analysis
SWOT analysis
The SWOT analysis in the table below Strengths, Weaknesses, Opportuni-
provides an overview of perceived ties and Threats of the sector.
Strengths Weaknesses
• Lack of innovation due to severe price
• Customized services, tailor-made competition, low profits, value added
solutions, personalized, one-on-one
services • Lack of economies of scale
• Low barriers to entry • Enforcement of rules and regulations
difficult
Opportunities Threats
• Structural growth of incomes
• Demography and ageing
• Enforcement of rules and regulations
•Development of new business models
difficult
• Transparency in labour markets
• Quality assurance, certification
Source: TNO-SEOR-ZSI
13Other Services
Main drivers of change
Drivers of change have been iden- the demand for and the provi-
tified using a systematic approach sion of personal services.
which addresses trends in Demo
graphy, Economy, Society, Tech- • Ageing: It is certain that ageing
nology, Environment and Politics plays a major role in the sector.
(DESTEP). Starting with a long Ageing affects both the supply
list of possible drivers the most of labour and the demand for a
relevant drivers for this sector number of personal service, spe-
have been selected in consulta- cifically aimed at the elderly.
tion with an expert panel using an
instrument (presented in the table • Income: Income is demand indu
below) that scores possible drivers cing in the other personal ser-
on a number of criteria: relevance vices sector. Income level and
for the sector, uncertainty, expect- income distribution determine
ed impact on the volume of to a large extent the demand for
employment, on the composition personal services
of employment, and on skills and
competences – and if so when and • Life style: Major differences are
where. The following drivers have present between life styles resul
been identified as most relevant to ting in an individual setting
the other services sector: promoting formal and paid ser-
vices and life styles resulting in
• Ageing: adapting to market a social setting promoting infor
demands is of key importance. mal services by family, friends
and voluntary organisations.
• Economic: income level and
income distribution determine • Market segmentation: An impor-
to a large extent the demand for tant difference exists between
personal services. developments stimulating gene
ral services and developments
• Cultural values: life style changes incurring dedicated services.
such as individualisation affect More diverse cultural values are
the demand for personal ser- also leading to growing market
vices. segmentation.
• Institutional issues: especially • Labour market: Flexible labour
labour market regulations affect markets will be able to quickly
14Main drivers of change
restore imbalances between between labour supplied at the
demand and supply of labour. formal and black labour market.
For the other personal services
sector the tax system is crucial. • Quality of institutions: Institutions
Flexible arrangements include are here defined as legal bodies
price interventions such as grants supervising regulations. A high
given to demand or supply. It quality institutional framework
is, for instance, possible to use promotes the solution of prob-
these grants to decrease the gap lems in an efficient manner.
15Driver Is this How How Are sub- Are sub- Are sub- Short, Are subs- Are sub-
driver relevant uncertain stantial stantial stantial medium tantial stantial
relevant is this is this impacts impacts impacts or long diffe- diffe-
16
for the driver driver expected expected expected run rences rences
sector? for the for the on the on on impact?1 expected expected
Y/N sector? sector? volume of employ- new S M L between between
Category
Scale Scale 0-10 employ- ment skills? (groups sectors?
0-10 ment? compo- Y/N of) coun- Y/N
Other Services
Y/N sition? tries?
Y/N Y/N
Ageing - Adapt to the Y 9 0 Y Y Y Y N N
market demands of
an ageing and more
diversified society
Ageing /
demographics
Income per capita and Y 9 0 Y N Y Y Y Y
household
Income distribution Y 9 0 Y N Y Y Y Y
Economic
Increasing market Y 9 3 N Y Y Y Y Y N
Key drivers of change for the Other Services Sector
segmentation (tailor
made production, mass
customization)
Lifestyle changes Y 9 3 N Y Y Y Y Y N
Quality of institutions Y 7 0 Y Y Y Y Y Y Y N
(judiciary, transparency,
lack of corruption,
Cultural values
viable business climate,
structural rigidities)
Labour market Y 9 0 Y Y Y Y Y Y Y N
regulation
1
Short = 0-3 years; medium = 3-7 years; long = > 7 years. All three categories may apply
Source: TNO-SEOR-ZSIScenarios for the other services sector
Scenarios for
the other services sector
Four sector scenarios are devel- The scenarios depict plausible and
oped for the other services sector: credible futures for the utilities
sector in Europe by 2020. Rather
• Scenario I: Informal; than wishful pictures of the future,
scenarios are founded on drivers and
• Scenario II: Mix; trends observed and are derived in
a logical and deductive way, hence
• Scenario III: Underground; making inferences about plausible
future developments.
• Scenario IV: Professional.
(see figure below).
Scenarios for other services
Endogenous, sector specific
drivers:
- Labour market
- Quality of institutions
Flexible labour market, high
quality institutions
Exogenous
II. IV.
drivers:
Mix Professional
- Ageing Certain Certain
- Income Low High
- Lifestyle Community Individual
changes General service Dedicated service
I. III.
- Market
Informal Underground
segmentation
Inflexible labour market, and
institutional framework
Source: TNO-SEOR-ZSI
Scenario I: Informal and undertaking are used, of course,
but especially the more high quality
Source: TNO-SEOR-ZSI
In ‘Informal’ the demand for other services are less in demand. Many
personal services is relatively low as services are provided by informal
a result of low incomes of inhabit- suppliers within their own com-
ants. Basic services like hairdressing munity (e.g. family support). The
17Other Services
labour market is inflexible, decreas- of rather informal practices and
ing the demand for formal services undeclared work.
further as labour taxes are in many
cases too high to make formal ser- Scenario III: Underground
vices profitable.
In ‘Underground’ a sharp increase
Scenario II: Mix in demand for other personal ser-
vices is visible. Luxury services
In ‘Mix’ the level of formal service like physical wellbeing activi-
provision is increasing somewhat ties and beauty arrangement are
as regulation tries to formalise demanded much more as dispos-
informal labour. However, the able incomes rise. This demand
demand for low paid services is not is increased further by ageing, as
compatible with this development. more people require dedicated
As the quality of institutions is high, services. The industry changes to
authorities get hold on the infor- supply the required services from
mal market. This reduces informal general to dedicated service deli
services, but does not result in an very. Informal services are profi
equal rise in formal services. ting more than formal services as
a result of the high tax rates and
Institutions and regulators try to inflexible institutions.
control informal services leading
to price increases. As a result, an Customers expect rather high
increasing number of people refrain quality services. Since the regu-
from making use of these services. latory framework is weak, many
This is, however, dependent on the service providers are operating
way the supply side is financed. It is informally in a legal sense, but are
possible to give grants to suppliers actually running their business
to decrease the gap between the quite professionally. Networking
costs of the formal and black labour and ‘secret tips’ are an important
market. This scenario depicts to means of marketing. The com-
some extent the current situation petition is high and the service
in some countries with existing for- providers are mostly sufficiently
mal regulations for many services qualified. Quality is an important
(e.g. in childcare, elderly care, well- factor, but the market is the deter-
ness services) and where regula- mining factor rather than institu-
tors try to control the ‘grey zones’ tional controls.
18Scenarios for the other services sector
Scenario IV: Professional available, though at a lower level.
Although the institutional frame-
In ‘Professional’ the labour market work is quite flexible, the formal
is reorganised to accommodate market for services it is not suffi-
the growing demand for other ciently developed to drive out all
personal services (as a result of the informal services.
developments already described
in ‘Underground’). Compared with The formal service sector is quite
‘Mix’ more possibilities to regu- professionalised and maintains
late the supply of other personal institutional quality control. Cer-
services are available due to the tifications and legal aspects (e.g.
high income demand. Innovative licensing) play an important role
arrangements are implemented and are an important factor for
making it possible to formalize gaining the customer’s trust. At the
and professionalise personal ser- same time informal services contin-
vices, while at the same time the ue to exist, but they are generally of
effective tax rate is not too high. lower quality and sometimes non-
Informal services, however, remain certified, but also cheaper.
19Other Services
Implications of scenarios for jobs,
skills and knowledge by job function
The scenarios presented above (involving manual dexterity and
do not only have implications for the use of methods, materials, tools
the expected the volumes labour and instruments). Knowledge refers
required in different job functions, to the outcome of the accumulation
they also have an effect on the types of information through learning. It
of jobs. New jobs may emerge and is the body of facts, principles, the-
significant changes in the nature of ories and practices that is related
the work to be undertaken in exist- to a field of work or study. In EQF
ing jobs can be expected. context, knowledge is described as
theoretical and/or factual. Compe-
Identification of emerging tences refer to the proven ability to
competences, skills and use knowledge, skills and personal,
knowledge needs social and/ or methodological abili-
ties, in work or study situations and
By taking the scenarios and drivers in professional and personal deve
as a starting point, logical inferences lopment. Competences thus defined
(‘guestimates’) of skills and knowl- come actually close to what is gen-
edge needs were made for each of erally understood nowadays as ‘soft
the identified job functions. Skills skills’. In EQF context, competences
refer to the ability to apply know are described in terms of responsi-
ledge and use know-how to com- bility and autonomy. In the practi-
plete tasks and solve problems. In cal elaboration of future skills and
the context of the European Quali- knowledge needs for the purpose
fication Framework (EQF), skills of this study, both have been fur-
are described as cognitive (involv- ther ‘disentangled’ to result into six
ing the use of logical, intuitive clusters of similar and related skills
and creative thinking) or practical and knowledge needs.
20Implications of scenarios for jobs, skills and knowledge by job function
Overview of skills and knowledge needs identified for each job
function and scenario
Knowledge (‘hard skills’)
• Legislative / regulatory knowledge (environmental / safety / labour / contracting);
Language; e-skills; Marketing skills; Technical knowledge; Product knowledge; Product
development
Social Skills
• Team working skills; Social perceptiveness (listening / understanding); Communication;
Networking; Language; Intercultural
Problem-solving Skills
• Analytical skills; Interdisciplinary; Initiative, Multi-skilling; Creativity
Self-management Skills
• Planning; Stress and time management; Flexibility; Multi-tasking
Management skills
• Strategic & visionary; Coaching and team building; Change management; Project
management; Process optimizing; Quality management; People skills crucial for collegial
management style
Entrepreneurial skills
• Supplier and customer relationship / understanding; Business understanding /
development; Trend setting / trend spotting
Source: TNO-SEOR-ZSI
Future skills and service and the person receiving
knowledge needs the service are closely linked. A high
by job function degree of trust is needed as person-
al services such as cleaning are pro-
As in other sectors in the other ser- vided in the home of the client.
vices soft skills will become increas-
ingly important. This applies not The general trend of up-skilling
only to high skilled professional job across job functions applies in this
functions but – because of the per- sector only to a limited extent –
sonal nature of many functions in mainly where personal services
this sector – also to low skilled job are provided through professional
functions. In personal services the service providers. Here certain
service, the person providing the knowledge – notably e-skills – will
21Other Services
become more important. Emerging from customers with a flexible
competences of higher skilled jobs regulatory framework – leading to
mostly refer to how to learn, com- new types of service provision and
municate, interact and adapt to a more formalised organisation. In
changing environments in addition the ‘Underground’ scenario a large
to a high quality education. Emer share of services is provided in the
ging competences in medium-edu- form of undeclared work. Managers
cated job functions that mostly exe- working in the formal sector need
cute defined tasks and processes to deal with competition from the
refer mostly to specific knowledge grey and black market segment
sets that can be taught through and will be challenged to find ways
learning. For many basic personal to attract qualified personnel. The
service functions there will be few main challenge for managers is thus
changes in skills required. to deal with high quality demands
from customers. Some of the new
Key emerging skills and knowledge management skills needed in the
needs by job function are sketched ‘Professional’ scenarios apply also
out in the following summary 1: to the ‘Mix’ scenario as more regu-
lation requires a general formalisa-
Managers – Managers face differ- tion of business. In ‘Mix’ and ‘Profes-
ent challenges in the four scenari- sional’ new regulations apply. Rules
os. In general, in the two scenarios and regulations deal specifically
with relatively low income growth with working conditions, safety
challenges for managers are less and environmental issues, the use
severe than in those scenarios with of chemicals (e.g. in hairdressers)
high expected income growth. Of and formal requirements to be able
those, the ‘Professional’ scenario is to supply services, including financ-
the most demanding in terms of ing mechanisms (e.g. vouchers).
new skills required from managers
as it combines a growing demand Technicians – The other services
for services based on a combina- sector is a sector with a gener-
tion of growing incomes, individual ally low potential for technologi-
lifestyles, high quality demands cal change as most services are of
a personal nature, often provided
1 F or expected changes in main skills and knowledge
clusters, see tables below. More extensive and detailed
by individuals, micro-enterprises or
accounts on future skills and knowledge needs can be small companies, all of which have
found in the main report, with further differentiations
made by scenario. a low possibility to invest in new
22Implications of scenarios for jobs, skills and knowledge by job function
technology. This might change in administrative staff will most likely
the long run as robotics may come need to know about changing rules
in as a major technology after 2020. and regulations with regard to
However, between 2009 and 2020 labour laws, health and safety in the
it is not probably that this tech- workplace, tax regimes and financ-
nology shows a high penetration ing mechanisms (e.g. vouchers). In
rate. It is important to distinguish ‘Underground’ and ‘Professional’
self-employed workers from those quality demands from customers
working for companies – the for- become more important requiring
mer require a broader range of better understanding of customer
(self ) management entrepreneur- needs, social perceptiveness, higher
ship and e-skills. All scenarios still quality communication and quality
require that technicians keep up management. In ‘Professional’ plan-
with the ongoing technical deve ning skills become more important
lopments in their field. In ‘Under- as customers do not like waiting
ground’ and ‘Professional’ this is time and waiting lists, while formal
more important as quality demands businesses might have a tendency
from customers are increasing. for bureaucracy.
E-skills also become important in
all scenarios as technicians may Service workers – Service workers
use ICT as a problem solving tool, can be either skilled or low-skilled.
for information purposes and as Skilled service workers include
a communication tool with their employees providing specialist
employers and customers (market- services for which a diploma or
ing new types of services and the certificate is required or expected.
possibility to deliver these services These include hairdressers and
in novel ways). beauticians and for example sup-
pliers of specialised cleaning servi
Administrative support staff – For ces. Demand for these specialist
administrative support staff differ- services will be highest in the high
ences between scenarios are not income growth scenarios. E-skills
expected to be substantial. New are of key importance in all sce-
skills needed include e-skills in narios as these services are often
order to deal with internet-based provided by individuals or micro
payroll and administration systems, enterprises which can strongly
especially for small companies. In benefit from the internet in the
the ‘Professional’ and ‘Mix’ scenario, development of new services and
23Other Services
better communication with (poten- (baby sitting for four hours) – with
tial) customers. The internet also almost no possibility to improve
provides new ways of delivering labour productivity. Services very
services to customers. Technical often come with a person and are
knowledge (again to provide inno- provided at the employer’s home –
vative up-market services) is more a situation in which trust is of vital
important in the ‘Underground’ importance In the ‘Professional’,
and ‘Professional scenarios’ as cus- ‘Underground’ and ‘Mix’ scenarios
tomers are expected to demand e-skills are needed but only for
more high quality services. In the independent service providers
‘Mix’ and ‘Professional’ scenario, in order to be able to advertise
legislative and regulatory know their services in an effective man-
ledge becomes more important as ner to reach potential customers.
business is formalised. Flexibility In the scenarios with more regu-
and multi-tasking are also impor- lation, knowledge about labour
tant in the ‘Professional” scenario. laws, safety regulations and legal
In ‘Underground’ and ‘Professio requirements for businesses
nal’, several new skills emerge as a become increasingly important.
result of the growing demand for Apart from the ‘Informal’ sce-
high-quality services. nario, many low-skilled functions
are provided by recent migrants.
Helpers & cleaners – In general, Therefore, a key success factor for
low-skilled job functions, such as these employees will be the ability
cleaners and dog-walkers, have to speak the local language and
little potential for upgrading and to have basic intercultural skills
innovation. Services are often pro- in order to adapt to the specific
vided for an agreed time period working environment.
24Main strategic choices to meet skill and knowledge needs
Main strategic choices to meet skill
and knowledge needs
In order to meet future skills and part of an overall longer-term busi-
knowledge needs, apt and timely ness strategy, also for SMEs. Some
solutions – referred to here as stra- solutions will be found within
tegic choices – are required (see the company itself, e.g. through
table below). Strategic choices reorganising functions within or
refer and relate to the medium- between plants, by offering (re)
and longer term, even though training trajectories or by active
emerging skills and knowledge global sourcing of personnel. For
needs in practice may also apply SMEs and especially for micro-
to the now and tomorrow. Essen- enterprises such longer-term, more
tial in seeking appropriate solu- strategic human resource manage-
tions is to keep this longer time ment often will be more difficult to
perspective in mind. Rather than organise and operationalise.
focusing on one single solution, a
set of linked strategic choices will In order to address the identified
in most cases be the best strategy future skills and knowledge needs
to follow. Prioritising both in time in an encompassing and timely
(what first, where to follow up) and manner, appropriate joint action is
in allocation of resources (includ- needed by all stakeholders, includ-
ing budgetary focus) followed by ing the industry (firms, sector
further fine-tuning is a clear neces- organisations and social partners),
sity to guarantee that skills needs training and education institutes,
are targeted and solved. Skill needs intermediary organisations and,
can be identified at various levels, last but not least, government at
ranging from assessments at the all levels (EU, national, regional and
national or even European sector local). Collaboration is needed in
level to more precise assessments order to agree on and implement
at the regional and company level. a package of feasible solutions.
Increasingly the identification of Timely, targeted and reliable infor-
skills and knowledge needs but also mation to make decisions – i.e.
the search for adequate solutions adequate monitoring and analysis
will have to become an integral – is an essential prerequisite.
25Other Services
Conclusions
A summary of quantitative and 6) Supply special courses dedi-
qualitative changes expected, and cated to sector characteristics –
strategic options for different job taking into consideration that the
functions is presented in the table workforce is often low-educated,
below. Conclusions and recom- and working part-time.
mendations are provided in sum-
mary form at two levels: first, spe- 7) Supply special courses for old-
cifically for education and training er workers.
and then ‘other’ main conclusions
and recommendations. 8) Develop and increase the
acknowledgement of certificates.
Conclusions and
recommendations on 9) Provide career guidance for
education and training labour market entrants.
1 ) Improve the information pro- Main other conclusions
vision on skill needs and job and recommendations
requirements which is essential for
improving training and education. 1) Focus on change – anticipating
new trends and developments in
2 ) Collaborate with all relevant the sector.
stakeholders and intensify co-oper-
ation in education and training. 2) Expand the possibilities for
legalising undeclared work in
3) Improve the flexibility of the this sector.
vocational education and train-
ing (VET) and general education 3) Improve collaboration between
systems. all sector stakeholders.
4) Promote Life-Long-Learning
and develop incentives and cost
sharing mechanisms between
governments, companies and
individuals.
5) Prepare vocational educational
schools for future demands.
26Informal Mix Underground Professional
1. Employment M I M I+
volume change
2. Skills changes Count 0 Count 8 Count 11 Count 20
counted
3. Emerging skills Knowledge, Social Social Skills, Self Knowledge,
needs Skills management, Social Skills, Self
management,
Entrepreneurship
4. Most important Recruit from other Recruit from other Recruit from other Recruit from other
Managers
solutions sectors, (Re)train sectors, (Re)train sectors, (Re)train sectors, (Re)train
employed workers, employed workers, employed workers, employed workers,
information about information about information about information on new
emerging skills, skills, Improve sector emerging skills, skills, Improve sector
Improve sector image image Improve sector image image
players in anticipatory action by scenario
5. Most important C,S,E C,S,E C,S,E C,S,E
actors
1. Employment M D I I+
volume change
2. Skills changes Count 2 Count 3 Count 7 Count 8
counted
3. Emerging skills Knowledge Knowledge Knowledge, Social Knowledge, Social
needs Skills Skills
4. Most important Recruit from other Recruit from other Recruit from other Recruit from other
solutions sectors, Recruit sectors, Recruit sectors, Recruit sectors, Recruit
Summary of job volumes, skills changes, strategic choices and main
unemployed, Recruit unemployed, unemployed, Recruit unemployed, Recruit
Technicians
young people from Recruit from school, young people from young people from
27
Conclusions
school, Outsourcing Outsourcing and school, Outsourcing school, Outsourcing
and offshoring, offshoring, Improve and offshoring, and offshoring,
Improve sector image sector image Improve sector image Improve sector image
5. Most important C,S.E C,S.E C,S.E C,S.E
actors28
Informal Mix Underground Professional
1. Employment M I M I+
volume change
2. Skills changes Count 1 Count 2 Count 5 Count 7
Other Services
counted
3. Emerging skills Knowledge Knowledge Knowledge, Social Knowledge, Social
needs Skills Skills
4. Most important Recruit from other Recruit from other Recruit from other Recruit from other
solutions sectors, Recruit sectors, Recruit sectors, Recruit sectors, Recruit
unemployed Recruit unemployed, Recruit unemployed, Recruit unemployed, Recruit
young people from young people from young people from young people from
school, (Re)train school, (Re)train school, (Re)train school, (Re)train
employed workers, employed workers, employed workers, employed workers,
Outsourcing and Outsourcing and Outsourcing and Outsourcing and
Administrative support staff
offshoring, offshoring, Information offshoring, Information offshoring, Information
on new skills on new skills on new skills
5. Most important C,S.E C,S.E C,S.E C,S.E
actors1. Employment M D I I+
volume change
2. Skills changes Count 0 Count 2 Count 9 Count 17
counted
3. Emerging skills Knowledge Knowledge Knowledge, Social Knowledge,
needs Skills Entrepreneurship
4. Most important Recruit from other Recruit from other Recruit from other Recruit from other
solutions sectors, Recruit sectors, Recruit sectors, Recruit sectors, Recruit
unemployed, Recruit unemployed, Recruit unemployed, Recruit unemployed, Recruit
young people from young people from young people from young people from
school, (Re)train school, (Re)train school, (Re)train school, (Re)train
Service workers
employed workers, employed workers, employed workers, employed workers,
Outsourcing and Outsourcing and Outsourcing and Outsourcing and
offshoring, Information offshoring, Information offshoring, Information offshoring, Information
on new skills, Improve on new skills, Improve on new skills, Improve on new skills, Improve
sector image sector image sector image sector image
5. Most important C,S,I,E,U C,S,I,E,U C,S,I,E,U C,S,I,E,U
actors
29
Conclusions30
Informal Mix Underground Professional
1. Employment M D I I+
volume change
2. Skills changes Count 0 Count 3 Count 5 Count 9
Other Services
counted
3. Emerging skills Knowledge, Social Social Skills Knowledge, Social
needs Skills Skills
4. Most important Recruit from other Recruit from other Recruit from other Recruit from other
solutions sectors, Recruit sectors, Recruit sectors, Recruit sectors, Recruit
unemployed, Recruit unemployed, Recruit unemployed, Recruit unemployed, Recruit
young people from young people from young people from young people from
school, (Re)train school, (Re)train school, (Re)train school, (Re)train
Helpers and cleaners
employed workers, employed workers, employed workers, employed workers,
information on new Information on new Information on new Information on new
skills skills skills skills
5. Most important C,S,G,E, C,S,G,E, C,S,G,E, C,S,G,E,
actors
=Companies; S=Sectoral organisations, U=trade Unions; E=Education and training institutes; G=Government (EU, Member State, regional, local)
Source: TNO-SEOR-ZSIWhere to find more information?
The following information can be found on the Europa website under the address:
http://ec.europa.eu/restructuringandjobs
The other 17 sector studies on the analysis of the sector’s evolution and future skills needs
The Restructuring in Europe report
The thematic restructuring forums
The checklist and the toolkit on restructuring processes
The training guide for SMEs
The national seminars on restructuring in 27 EU countries
Official documents related to restructuring policiesYou can also read
