Where are the real skills shortages?

The debate over skills shortages is looming again. For some years national governments and the European Commission have been warning over shortages of qualified workers in Science, Engineering, Technology and Maths (STEM) . Yet a number of studies refute these claims.

A blog post on SmartPlanet quotes Robert Charette who, writing in IEEE Spectrum,  says that despite the hand wringing, “there are more STEM workers than suitable jobs.” He points to a study by the Economic Policy Institute that found that wages for U.S. IT and mathematics-related professionals have not grown appreciably over the past decade, and that they, too, have had difficulty finding jobs in the past five years. He lists a number of studies that refute the presence of a global STEM skills shortage. The U.S. Bureau of Labor Statistics, for one, estimates that there was a net loss of  370 000 science and engineering jobs in the U.S. in 2011.

I doubt that figures in Europe would be much different. One of the issues is how to define a ‘STEM” job. In the UK jobs are classified through a system called Standard Occupational Classification. This itself has its problems. Given the desire for comparability, SOC is only updated every ten years (the last was in 2010). In a time of fast changing occupations, it is inevitably out of date. Furthermore jobs are classified to four digits. This is simply not deep enough to deal with many real occupations. Even if a more detailed classification system was to be developed, present sample sizes on surveys – primarily the Labour Force Survey (LFS) would produce too few results for many occupations. And it is unlikely in the present political and financial environment that statistical agencies will be able to increase sample sizes.

But a bigger problem is linking subjects and courses to jobs. UK universities code courses according to the Joint Academic Coding System (JACS). It is pretty hard to equate JACS to SOC or even to map between them.

The bigger problem is how we relate knowledge and skills to employment. At one time a degree was seen as an academic preparation for employment. Now it is increasingly seen as a vocational course for employment in a particular field and we are attempting to map skills and competences to particular occupational profiles. That won’t really work. I doubt there is really a dire shortage of employees for STEM occupations as such. Predictions of such shortages come from industry representatives who may have a vested interest in ensuring over supply in order to keep wage rates down (more on this tomorrow). For some time now, national governments and the European Union, have had an obsession with STEM and particularly the computer industry as sources of economic competitiveness and growth and providers of employment (more to come about that, too).

However, more important may be the number of occupations which require use of mathematics or programming as part of the job. One of the problems with the present way of surveying occupational employment is that there is an assumption we all do one job. I would be pretty pushed to define what my occupation is – researcher, developer, write, journalist, project manager, company director? According to the statistics agency I can only be one. And then how the one, whichever it is, be matched to a university course. Computer programmers increasingly need advanced project management skills.  I suspect that one factor driving participation in MOOCs is that people require new skills and knowledge not acquired through their initial degrees for work purposes.

My conclusions – a) Don’t believe everything you read about skills shortages, and b) We need to ensure academic courses provide students with a wide range of skills and knowledge drawn from different disciplines, and c) We need to think in more depth about the link between education and work.

LMI for All API released

I have written periodic updates on the work we have been doing for the UKCES on open data, developing an open API to provide access to Labour Market Information. Although the APi is specifically targeted towards careers guidance organisations and towards end users looking for data to help in careers choices, in the longer term it may be of interest to others involved in labour market analysis and planning and for those working in economic, education and social planning.

The project has had to overcome a number of barriers, especially around the issues of disclosure, confidentiality and statistical reliability. The first public release of the API is now available. The following text is based on an email sent to interested individuals and organisations. Get in touch if you would like more information or would like to develop applications based on the API.

The screenshot above is of one of the ten applications developed at a hack day organised by one of our partners in the project, Rewired State. You can see all ten on their website.

The first pilot release of LMI for All is now available and to send you some details about this. Although this is a pilot version, it is fully functional and it would be great if you could test it as a pilot and let us know what is working well and what needs to be improved.

The main LMI for All site is at http://www.lmiforall.org.uk/.  This contains information about LMI for All and how it can be used.

The APi web explorer for developers can be accessed at http://api.lmiforall.org.uk/.  The APi is currently open for you to test and explore the potential for  development. If you wish to deploy the APi in your web site or application please email us at graham10 [at] mac [dot] com and we will supply you with an APi key.

For technical details and details about the data go to our wiki at http://collab.lmiforall.org.uk/.  This includes all the documentation including details about what data LMI for All includes and how this can be used.  There is also a frequently asked questions section.

Ongoing feedback from your organisation is an important part of the ongoing development of this data tool because we want to ensure that future improvements to LMI for All are based on feedback from people who have used it. To enable us to integrate this feedback into the development process, if you use LMI for All we will want to contact you about every four to six months to ask how things are progressing with the data tool. Additionally, to help with the promotion and roll out of LMI for All towards the end of the development period (second half of 2014), we may ask you for your permission to showcase particular LMI applications that your organisation chooses to develop.

If you have any questions, or need any further help, please use the FAQ space initially. However, if you have any specific questions which cannot be answered here, please use the LMI for All email address lmiforall [at] ukces [dot] org [dot] uk.

 

LMI for All – coming soon

A quick and overdue update on the Labour Market Information for All project, which we are developing together with Raycom, the University of Warwick and Rewired State and  is sponsored by the UK Commission for Employment and Skills (UKCES).

LMI for All will provide an online data portal bringing together existing sources of labour market information (LMI) that can inform people’s decisions about their careers.  The database will contain robust LMI from national surveys and data sources providing a common and consistent baseline to use alongside less formal sources of intelligence. Due for release at the end of May 2013, access to the database will be through an open API. the results of queries can then be embedded by developers in their own web sites of apps. We will also provide a code library to assist developers.

The project builds on the commitment by the UK government to open data. despite this, it is not simple. As the Open Data White Paper (HM Government, 2012)highlights,  data gathered by the public sector is not always readily accessible. Quality of the data, intermittent publication and a lack of common standards are also barriers. A commitment is given to change the culture of organisations, to bring about change: ‘This must change and one of the barriers to change is cultural’ (p. 18).

We have talked to a considerable number of data providers including government bodies. It is striking that all have been cooperative and wishing to help us in providing access to data. However, the devil is in the detail.

Much of the data publicly collected, is done so on the condition that is is non disclosive e.e. that it is impossible to find out who submitted that data. And of course the lower the level of aggregation, the easier it is to identify where the data is coming from. And the more the data is linked, the more risk there s of chong qi cheng bao disclosure.

We have developed ways of getting round this using both statistical methods (e.g. estimation) and technical approaches (data aggregation). But it remains a lot of work preparing the data for uploading to our database. And I guess that level of work will discourage others from utilising the potential of open data. It may explain why, transport excluded, their remain limited applications built on the open data movement in the UK.

It may suggest that the model we are working on, of a publicly funded project providing access to data, and then providing tools to build applications on top of that data, could provide a model for providing access to public data.

In the meantime if you are interested in using our API and developing your own applications for careers guidance and support, please get in touch.

 

The cost of austerity and privatisation

There is growing concern over the consequences of the English (Scotland, Wales and Northern Ireland have different policies) government’s cutbacks and privatisation of  careers guidance for young people. The International Centre for Guidance Studies reports on a discussion paper called ‘Cost to the Economy of Government Policy on Career Guidance: A Business Case for Funding and Strengthening Career Guidance in Schools‘ from Lizzie Taylor who is an Careers England Affiliate Member. “The report claims that the economic consequence of current government policy on career education is an escalating annual cost to young people in reduced and lost earnings, reaching £676m p.a. in 2018 before dropping back slightly to £665 m p.a.2022. The total cost in reduced and lost earnings to young people in the period 2013 to 2022 is estimated as £3.2bn.”

How can we make work in construction trendy?

For some reason the construction industry is not a sexy research area. Motor cars, yes, machine tools, yes, the computer industry, yes, yes, yes. But poor old construction, boring. Yet in economic terms, construction could be seen as the most important sector in Europe.

Our initial research under the Learning Layers project reveals some interesting contradictions. The construction industry is probably the biggest victim of the present recession. Even the neo liberal UK government is now taking actions to stimulate house building – through the partial nationalisation of mortgage debts. Probably an emphasis on infrastructure projects or on social housing would have had a bigger impact and would have avoided the risk of another house price bubble. But the fact they are doing anything at all shows the problem.

But whilst the recession has badly hit profitability and employment another concern has arisen in our interviews with construction companies. Managers are severely worried about the ability to recruit new trainees and particularly to recruit the better educated apprentices they see as critical to cope with the increasing use of technology in construction. Managers point to the major issue as being the image of the industry – just as in research they consider the industry not to be sufficiently sexy. They are less likely to discuss issues such as wages, opportunities for progression or just the sheer hard physical work involved in many construction trades. Having said that, reality may be very different from practice in other images which have a positive image. Work in the games industry can be hard, poorly paid and boring. And for every kid who makes a fortune out of a mobile app, thousands make no money at all.

Either way they are right in that there will almost certainly be demand for new skills to deal with technology – both in the uses of technology for construction but perhaps more important the changing materials being used in building today, not least due to ecologiocal and energy saving concerns and legislation. Whilst improving initial education training programmes is one response and attempting to improve the image of the industry, the big challenge may be to improve research and development and to develop more continuous training for existing employees. In this short extract form previous research, below, we provide an overview of the industry in Europe and Germany, together with issues in how training – or informal learning – might be improved.

The total turnover of the construction industry in 2010 (EU27) was 1186 billion Euros forming 9,7% of the GDP in 2010 (EU27). The construction industry is the biggest industrial employer in Europe with 13,9 million operatives making up 6,6% of the total employment in EU27. In addition it has a substantial influence on other industries represented by a multiplier effect. According to a study by the European Commission, 1 person working in the construction industry is responsible for 2 further persons working in other sectors. Therefore, it is estimated that 41,7 million workers in the EU depend, directly or indirectly, on the construction sector. Out of the 3,1 million enterprises 95% are SMEs with fewer than 20 and 93% with fewer than 10 operatives.   The level of investment in R&D in the European construction sector is low compared to other sectors. The construction sector only invests a small portion of its total production value in research, development, and innovation.

The developments of new processes and materials provide substantial challenges for the construction industry. The traditional educational and training methods are proving to be insufficient as the rapid emergence of new skill and quality requirements (for example those related to green building techniques) require much faster involvement and action on all three levels (individual, organisational and cluster) in order to react quickly to these changes and exploit opportunities. Without this the market potential is hampered by lack of innovation skills and training gaps (Dittrich, Deitmer 2003). The increased rate of technical change introduces greater uncertainty for firms, which, in turn, demands an increased capacity for problem solving skills (Toner 2011, 7). This situation is aggravated in some fast developing European Regions because skilled craftspeople are missing. Therefore there is increasing need for rapid re- and upskilling of the building workforce across the construction cluster.

The construction industry in Germany is one of the country’s most stable economic sectors. Providing jobs to more than 2,2 million people it holds a market share of 21% making the German construction sector the largest in the EU27 in terms of production value. In Germany the federal states, enterprises and the apprentices share the costs of the dual education system (practical training in schools and on-site training). The German compensation fund for construction industry SOKA-BAU reported a total of 270 million Euros of training allowances and job training costs in 2010 making it just a little more than 0,1% of the total production value. In fact, the building trade has one of the lowest participation rates for employees towards further training provision than any other sector (TNS INFRATEST 2008). This is because much of the formal training offering is only weakly connected with real work tasks. The cost pressure in building enterprises limits chances for time-consuming training measures far away from the workplace (Schulte, Spöttl, 2009). Any mobile support for learning and informing at the work place would be welcomed by companies as well as by building workers themselves. With enterprises paying for all the costs associated with the on-the-job training, SMEs need a cost effective solution to overcome the issues that occur with the rapid development in the technologies, processes and materials.