Report V - Skills for improved productivity, employment growth and development

The designations employed in ILO publications, which are in conformity with United Nations practice, and the presentation of material therein do not imply the expression of any opinion whatsoever on the part of the International Labour Office concerning the legal status of any country, area or territory or of its authorities, or concerning the delimitation of its frontiers. Reference to names of firms and commercial products and processes does not imply their endorsement by the International Labour Office, and any failure to mention a particular firm, commercial product or process is not a sign of disapproval. ILO publications can be obtained through major booksellers or ILO local offices in many countries, or direct from ILO Publications, International Labour Office, CH-1211 Geneva 22, Switzerland. Catalogues or lists of new publications are available free of charge from the above address, or by email: [email protected]. Visit our website: www.ilo.org/publns. Introduction The central aim of this report is to examine how, within a decent work perspective, countries can develop their skills base so as to increase both the quantity and the productivity of labour employed in the economy. Inadequate education and skills development keep economies trapped in a vicious circle of low education, low productivity and low income. The report therefore analyses how strategies to upgrade and enhance the relevance of skills training and to improve access to skills for more women and men can instead help countries move to a virtuous circle of higher productivity, employment and incomes growth, and development. Skills development 1 is central to improving productivity. In turn, productivity is an important source of improved living standards and growth. Other critical factors include macroeconomic policies to maximize opportunities for pro-poor employment growth, an enabling environment for sustainable enterprise development, social dialogue and fundamental investments in basic education, health and physical infrastructure. Effective skills development systems – which connect education to technical training, technical training to labour market entry and labour market entry to workplace and lifelong learning – can help countries sustain productivity growth and translate that growth into more and better jobs. This report examines the challenges faced by countries at different levels of development and their policy options. In so doing, it seeks lessons that are relevant for least developed, developing and more industrialized countries in linking skills development systems not only to the current needs of labour markets, but also to future needs as technologies, markets, the …