This paper argues that, as countries become richer and move up the value-added chain, the skills demanded will change. Bottlenecks will become more evident, constraining growth. Increasingly, labour productivity will depend on high-level cognitive skills (such as analysis, problem solving, and communication) and behavioural skills (such as discipline and work effort). The authors propose that these higher productivity skills are what employers now demand. The paper presents a simple conceptual framework - Skills Toward Employment and Productivity (STEP) - to assist in the design of systems to
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This paper argues that, as countries become richer and move up the value-added chain, the skills demanded will change. Bottlenecks will become more evident, constraining growth. Increasingly, labour productivity will depend on high-level cognitive skills (such as analysis, problem solving, and communication) and behavioural skills (such as discipline and work effort). The authors propose that these higher productivity skills are what employers now demand. The paper presents a simple conceptual framework - Skills Toward Employment and Productivity (STEP) - to assist in the design of systems to impart skills that enhance productivity and growth. Drawing on what is known about the elements of a successful skills development strategy, the framework can be used to guide the preparation of diagnostic work on skills, and subsequently the design of policies across sectors to create productive employment and promote economic growth.
The steps in the framework are as follows: Step one: getting children off to the right start; Step two: ensuring that all students learn; Step three: building job-relevant skills; Step four: encouraging entrepreneurship and innovation; Step five: facilitating labour mobility and job matching.
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