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 In a time of fast changing occupations, it is inevitably out of date.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.

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.”

The problem – a major shortage of jobs

We are constantly being told that we have to improve our employability skills and qualifications for finding employment. Yet whilst more qualifications may help in getting a job, from a policy perspective if ignores the obvious. There is simply a shortage of work.

New research from the UK Joseph Rowntree Foundation explores the difficulty of job searching for young people seeking low-skilled work in three areas in England and Wales. Their overall finding is that the main problem for disadvantaged young people looking for work is fundamental – a major shortage of jobs.

Other key findings include:

  • Over two-thirds of applications (69%) received no response at all.
  • 78% of the jobs applied for paid under £7 an hour, while 54% offered the minimum wage. Only 24% of the vacancies offered full-time, daytime work.
  • In the weak labour market, 10 jobseekers chased every job compared to five jobseekers in the strong one.
  • Jobseekers who do not have high-speed internet at home are at a substantial disadvantage and can only search for jobs sporadically, rather than the daily basis that is required.
  • Applications sent a week after jobs were first advertised were half as likely to receive positive responses as those sent in the first three days.
  • The research found there was strong evidence that good-quality applicants from neighbourhoods with poor reputations were not more likely to be rejected by employers.
  • However, employers expressed a preference for local candidates with easy journeys to work.

Wales to encourage schools to make full use of social networking technologies

Leighton Andrews, Wales Assembly Government Minister for Education and Skills, has announced an ambitious agenda in response to an independent review of digital classroom teaching. Of particular note is the commitment to “a new approach to the use of social networking technologies in education” through “encouraging schools to make full use of social technologies in order to engage learners and improve learning outcomes.”
Andrews says:

In previous years, local authorities have been asked to block access to social networking sites in schools, libraries and youth clubs, as a result of very understandable concerns about online predators, cyberbullying and the risk of disruption to classroom activities. However, this policy can have adverse effects. It deprives schools of access to tools and resources which might otherwise be used creatively and constructively in education both within and beyond the classroom. More importantly, it means that children are most likely to be using these sites outside the school, at home, or on mobile devices, in environments which may be unsupervised and where they have less access to informed guidance and support on how to stay safe online.
In 2008, Wales was the first country in the UK to introduce the teaching of safe and responsible use of the Internet into both the primary and secondary school curriculum. The underpinning approach was that we first teach children to use the Internet safely under supervision, and then help them to develop the skills and understanding they need to manage their own risk as they use the Internet independently. Enabling access to social networking sites in schools will be consistent with this approach, providing pupils with the opportunity to learn safe, responsible and considerate online behaviours in the context of supported educational activities. It will also help schools to include parents in these activities.”

We have long argued that blocking of social networking (and other web sites) in schools was a backward and futile step. Lets hope that other countries follow the lead of Wales.

The right to work

When I was at school, I never had a Saturday job, or even a paper round, although many of my friends did. My parents were afraid that working would interfere with my education. But I did work in the summer holidays and after leaving school worked for a year before going to university. And I think I learned as much working as I ever did at school. Indeed, the importance of work experience was shown up in our European funded G8WAY project on school to work and university to work transitions.

The Guardian newspaper has drawn attention to a study by the UK Commission for Employment and Skills (UKCES) on part time jobs.

The study found that “the proportion of teenagers combining part-time jobs with school or college has slumped from 40% in the 1990s to around 20% now, according to a government agency. Latest figures show that 260,000 teenagers have a Saturday job compared with 435,000 in 1997.”

UKCES say that there are multiple reasons for this. “The trend is not just recession-related but the result of an increasing expectation that young people should stay on at school, as well as a dwindling number of Saturday jobs, according to the report. Many of the jobs that young people do, such as bar work, are in long-term decline, and are forecast to stagnate or decline further over the next decade.”

The lack of opportunity for paid work is preventing young people becoming independent and in many of the case studies we undertook through the G8WAY project, resulting in considerable family tensions.

And there is an irony here. At the very time young people are being denied the right to work, employers are increasingly demanding work experience, as a precursor to employment. The result is that many young people are being forced to undertaken internships, either at a low pay rate or even without pay. That such internships exist, suggest that there are jobs. It is just employers do not want to pay.