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Employment and Social Developments in Europe 2014



The service sector has a higher share of Chart 16: Big differences between small
companies providing training for their and large enterprises in less competitive countries
employees, compared to the industrial, Enterprises providing training as % of all enterprises, by size class
manufacturing or agriculture sectors. (2005 and 2010, EU-28, most and least competitive countries)
Moreover, within the service sector, knowl- 100
edge-intensive industries, like ICTs and
financial services, are most likely to invest 90
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private resources in training ( ). 80
The size of enterprises is also seen to be an 70
important factor in determining their pro - 60
pensity to invest in training for their employ -
ees. In general, larger companies seem 50 Big (250 or more)
more likely to provide training in both the 40 Medium (50-249)
most competitive and the least competitive Small (10-49)
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countries, confirming previous results ( ). 30 EU-28 EU-28 TOP-EU TOP-EU LAST-EU LAST-EU
(2005) (2010) (2005) (2010) (2005) (2010)
From 2005 to 2010 we see an EU-wide
increase in companies providing training, Sources: Eurostat, CVTS.
most notably in small firms (Chart 16). In Notes: *Top EU countries include EU countries that were in 2014, according to the overall competitiveness
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the most competitive EU countries ( ) the ranking, among the top 15 competitive countries (out of 60) and the last 15 EU countries includes those
increase is lower than in the least com - ranking in places from 46–60. **TOP_EU countries: SE, DE, DK, LU, NL, IE. *** LAST_EU countries: IT, HU, SI,
petitive ones, due to the already high share EL, RO, BG, HR. ****Overall ranking of the World Competitiveness Yearbook is based on four main factors:
Economic Performance; Government Efficiency; Business Efficiency and Infrastructure.
of companies providing training in 2005.
The gap between big and small compa -
nies in providing training is being reduced employees. Looking at scores in numeracy, of labour market skills becomes ever
at a faster pace in the least competi- literacy and problem-solving can provide more dependent on the maintenance
tive countries. an overview of the quality of education and updating of the existing workforce’s
and training. skills ( ), increasing the importance of
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These trends are confirmed by the recent policies to ensure a healthy life and pro-
rd
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3 European Company Survey ( ), which We focus on PIAAC scores for employed moting active ageing.
found that some 71 % of companies in people (both full-time and part-time) in
the EU provide paid time off for training the three dimensions of numeracy, literacy In this respect, age has a limited, but
for some employees at least, although and problem-solving, and observe differ- nevertheless significant, effect on the
small establishments are least likely to do ences among EU countries. The share of level of skill proficiency, as the analysis
this. Experiences vary considerably across employer-sponsored, job-related educa - of microdata below shows. Older adults
countries, with Bulgaria, Greece, Croatia and tion and training (Eurostat, Adult Education generally show lower proficiency in lit-
Lithuania being those where this is rarest, as Survey, 2011) correlates positively with eracy, numeracy and problem solving
compared with Austria, Finland, Sweden and the PIAAC scores across all three dimen- than younger people, but data from the
the Czech Republic. In general, where paid sions (Chart 17). This might suggest that PIAAC survey also shows considerable
time off for training is provided, the training the comparatively higher efforts done by variation in the skill proficiency of older
is mainly focused on enhancing employee the employers in providing training to the people across countries. This suggests
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skills in relation to their current job ( ). employees might contribute to these dif- that differences in education and labour
ferences. Section 3.3.1. further investigates markets may influence adults’ capabilities
Certainly training is not the only way through this stylised fact through an economet- to develop and maintain skills as they age.
which firms can help maintain and optimise ric analysis. Moreover, the general decline in cogni-
the use of human capital. Workplace prac- tive skills can be mitigated, delayed or
tices adopted by firms ( ) are complemen- 3.2.2. Active ageing and health prevented by continuous vocational train-
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tary to on-the-job training (see Box 1). ing, education and lifelong learning ( ),
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The demographic challenges posed by highlighting their importance in active
An analysis of the quality of human capi- the combination of lower fertility rates, ageing policies.
tal, through direct measurement of skills, longer life expectancy, and a declining
can help shed some light on the relevance share of the working-age population cre - In general, individuals with poor skills
of training provided by enterprises to their ates pressures to mobilise all available are less likely to engage in education
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human resources ( ). Since the propor- and training on their own initiative, and
( ) Continuing Vocational Training Survey,
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Eurostat. tion of older inactive people per those tend to receive less employer-sponsored
( ) Badescu et al. (2011). in work is rising, the contribution that training. This applies particularly to older
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( ) As ranked by the IMD World Competitiveness older people can make to the economy workers ( ). Therefore, they need well
Yearbook 2014, International Institute for
Management Development. and society becomes even more relevant targeted help to escape the low-skills/
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( ) Eurofound (2013). than in the past. Consequently, the stock low-income trap.
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( ) Ibidem, p.5. ( ) Desjardins and Warnke (2012).
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( ) For instance, job latitude and employee 75
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control and empowerment, performance ( ) The next chapter (Chapter 3) will further ( ) Desjardins and Warnke (2012).
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incentives etc. develop the analysis of active ageing. ( ) OECD (2013a).
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