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OECD: Progress on gender equality is too slow

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Governments around the world are paying more attention to gender equality but progress is too slow and uneven, and much remains to be done to increase women’s rights, opportunities and participation in public life and senior jobs, according to the OECD.

Despite gender equality reforms in many countries, with innovative rules and regulations in many countries, entrenched social and cultural norms continue to maintain discrimination against women and girls, according to the Social Institutions and Gender Index (SIGI) 2019 Global Report launched in the presence of H.R.H. Princess Beatrice of York during the OECD’s March on Gender events to mark International Women’s Day. The report estimates the loss of income worldwide attributable to gender-based discrimination at USD 6 trillion, or 7.5% of global GDP.

A second OECD report presented today, Forward to Gender Equality: Mainstreaming, Implementation and Leadership, finds that in advanced economies, persistent gender stereotypes and bias in policymaking and budget decisions is hampering progress. While women comprise over half of public sector employees, there are still too few women in senior public jobs and decision-making posts. The digital transformation now risks creating new divides.

“Despite a global realisation that women’s equality is an urgent priority, we are moving too slowly in closing gender gaps, and in some countries gender gaps have even widened,” said the OECD’s Chief of Staff, G20 Sherpa and leader on gender issues Gabriela Ramos. “We need to do more and to do it better. We need to be smarter in the way we design and execute policies and be held more accountable on the results; otherwise we may be looking at another 200 years to achieve gender equality.”

The latest update to the OECD’s Gender Portal shows the several areas in which gender gaps exist, including the wage gap across OECD countries that averages a stubborn 13.6%, Ms Ramos noted.

The SIGI report, covering 180 countries, finds that 33% of women worldwide have been victims of domestic abuse, although, encouragingly, social acceptance of domestic violence is receding. The share of women who say domestic violence is acceptable in some circumstances has dropped from 50% in 2012 to 37% in 2014 and 27% in 2018.

Since the last SIGI report in 2014, 15 countries have adopted legislation to criminalise domestic violence, meaning 132 countries now criminalise it while 48 do not. Another 15 countries have eliminated legal exceptions that allowed girls under 18 to be married, and eight have introduced legal measures to promote gender balance in elected public office. All but two countries – Papua New Guinea and the United States – now guarantee paid maternity leave.

Fast Forward to Gender Equality, which focuses on where OECD countries stand relative to the Organisation’s 2015 Recommendation on Gender Equality in Public Life, finds that on average across OECD countries, women now occupy 29% of parliamentary seats and 28% of ministerial posts. Among leaders in gender equality are Latvia, where the number of women elected to public office has nearly doubled to 31%, and France, where 40% of parliamentarians are women. Similar progress has been seen in Ireland, Italy, Mexico and Spain, where two-thirds of Ministerial posts were occupied by women in the last government. Certainly, all these averages mask important divergences among participating countries.

On the downside, women working in public administrations are still over-represented in low-level job categories. They occupy less than a third of senior positions in the civil service on average and make up 75% of part time workers in the public sector. The report offers guidance on using tools such as legislated or voluntary quotas and gender budgeting, which tracks spending that supports gender equality, to improve women’s participation.

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Recession and Automation Changes Our Future of Work, But There are Jobs Coming

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The Future of Jobs 2020 report has found that COVID-19 has caused the labour market to change faster than expected. The research released today by the World Economic Forum indicates that what used to be considered the “future of work” has already arrived.

By 2025, automation and a new division of labour between humans and machines will disrupt 85 million jobs globally in medium and large businesses across 15 industries and 26 economies. Roles in areas such as data entry, accounting and administrative support are decreasing in demand as automation and digitization in the workplace increases. More than 80% of business executives are accelerating plans to digitize work processes and deploy new technologies; and 50% of employers are expecting to accelerate the automation of some roles in their companies. In contrast to previous years, job creation is now slowing while job destruction is accelerating.

“COVID-19 has accelerated the arrival of the future of work,” said Saadia Zahidi, Manging Director, World Economic Forum. “Accelerating automation and the fallout from the COVID-19 recession has deepened existing inequalities across labour markets and reversed gains in employment made since the global financial crisis in 2007-2008. It’s a double disruption scenario that presents another hurdle for workers in this difficult time. The window of opportunity for proactive management of this change is closing fast. Businesses, governments and workers must plan to urgently work together to implement a new vision for the global workforce.”

Some 43% of businesses surveyed indicate that they are set to reduce their workforce due to technology integration, 41% plan to expand their use of contractors for task-specialized work, and 34% plan to expand their workforce due to technology integration.

By 2025, employers will divide work between human and machines equally. Roles that leverage human skills will rise in demand. Machines will be primarily focused on information and data processing, administrative tasks and routine manual jobs for white- and blue-collar positions.

New sense of urgency for the reskilling revolution

As the economy and job markets evolve, 97 million new roles will emerge across the care economy, in fourth industrial revolution technology industries like artificial intelligence, and in content creation fields. The tasks where humans are set to retain their comparative advantage include managing, advising, decision-making, reasoning, communicating and interacting. There will be a surge in demand for workers who can fill green economy jobs, roles at the forefront of the data and artificial intelligence economy, as well as new roles in engineering, cloud computing and product development.

For those workers set to remain in their roles in the next five years, nearly 50% will need reskilling for their core skills.

Despite the current economic downturn, most employers recognize the value of reskilling their workforce. An average of 66% of employers surveyed expect to see a return on investment in upskilling and reskilling of current employees within one year. They also expect to successfully redeploy 46% of workers within their own organization. “In the future, we will see the most competitive businesses are the ones that have invested heavily in their human capital – the skills and competencies of their employees,” Zahidi said.

Building a more inclusive future of work

The individuals and communities most negatively affected by the unprecedented changes brought about by COVID-19 are likely to be those that are already most disadvantaged. In the absence of proactive efforts, inequality is likely to be exacerbated by the dual impact of technology and the pandemic recession.

The Future of Jobs 2020 report partner ADP Research Institute tracked the impact of COVID-19 on the United States labour market. Between February and May 2020, data showed that displaced workers were, on average, mostly female, younger and had a lower wage. Comparing the impact of the global financial crisis of 2008 on individuals with lower education levels to the impact of the COVID-19 crisis, the impact today is far more significant and more likely to deepen existing inequalities.

“In the wake of COVID-19, the US workforce experienced immense change, and we were able to track this impact on the labour market in near real time,” said Ahu Yildirmaz, Head of ADP Research Institute Labour Market Research. “While the swift and staggering job loss in the initial months was significant, it is only one anomaly of this ‘recession.’ Industry distribution, business size and worker demographics were all disrupted due to labour market changes brought about by COVID-19, signalling that this downturn is unlike any other in modern US history.”

“The pandemic has disproportionately impacted millions of low-skilled workers,” said Jeff Maggioncalda, Chief Executive Officer of Coursera, another report partner. “The recovery must include a coordinated reskilling effort by institutions to provide accessible and job-relevant learning that individuals can take from anywhere in order to return to the workforce.”

Currently, only 21% of businesses worldwide are able to make use of public funds for reskilling and upskilling programmes. The public sector will need a three-tiered approach to help workers. This includes providing stronger safety nets for displaced workers, improving the education and training systems and creating incentives for investments in markets and the jobs of tomorrow.

Companies can measure and disclose their treatment of employees by adopting environmental, social and governance (ESG) metrics. This will help benchmark success, provide support where it is needed and ensure new gaps that arise are quickly identified and closed.

Remote working is here to stay but requires adaptation

Some 84% of employers are set to rapidly digitalize working processes, including a significant expansion of remote working. Employers say there is the potential to move 44% of their workforce to operate remotely.

According to the report, 78% of business leaders expect some negative impact on worker productivity. This suggests that some industries and companies are struggling to adapt quickly enough to the shift to remote working caused by the COVID-19 pandemic.

To address concerns about productivity and well-being, about one-third of all employers said they will take steps to create a sense of community, connection and belonging among their employees.

Career pivots become the “new normal”

The research also indicated that a growing number of people are making career changes to entirely new occupations. According to LinkedIn data gathered over the past five years, some 50% of career shifts into data and artificial intelligence are from different fields. That figure is much higher for sales roles (75%), content creation and production positions, such as social media managers and content writers (72%), and engineering roles (67%).

“As we think about ways to upskill or transition large populations of the workforce who are out of work as a result of COVID-19 into new, more future-proofed jobs, these new insights into career transitions and the skills required to make them have huge potential for leaders in the public and the private sector alike,” said Karin Kimbrough, Chief Economist at LinkedIn.

“Our research reveals the majority of transitions into jobs of tomorrow come from non-emerging jobs, proving that many of these jobs are more accessible than workers might think, Kimbrough continued. “If we can help individuals, and the leaders who are directing workforce funding and investment, identify the small clusters of skills that would have an outsized impact on opening up more sustainable career paths, we can make a real difference in addressing the unprecedented levels of unemployment that we’re seeing globally.”

Data shows how long to reskill

According to The Future of Jobs Survey, core skills such as critical thinking, analysis and problem-solving are consistently top of the reskilling and upskilling priorities for educators and businesses. Newly emerging in 2020 are skills in self-management such as resilience, stress tolerance and flexibility.

Data from Coursera suggests that individuals could start gaining the top 10 skills for each emerging profession in people and culture, content writing, sales and marketing in one to two months. Those wishing to expand their skills in product development and data and artificial intelligence could do so in two to three months, and those switching into cloud computing and engineering could make headway in the new skillset through a four to five-month learning programme.

There has been a fourfold increase in the number of people seeking opportunities for online learning under their own initiative, a fivefold increase in employers offering their workers online learning opportunities and a ninefold enrolment increase in people accessing online learning through government programmes.

Those in employment are placing larger emphasis on personal development courses; those unemployed have placed greater emphasis on learning digital skills such as data analysis, computer science and information technology.

“The pandemic has accelerated many of the trends around the future of work, dramatically shrinking the window of opportunity to reskill and transition workers into future-fit jobs,” said Hamoon Ekhtiari, CEO of FutureFit AI. “No matter what prediction you believe about jobs and skills, what is bound to be true is heightened intensity and higher frequency of career transitions especially for those already most vulnerable and marginalized.”

“The Future of Jobs Report is a critical source of insights in supporting companies and government through these workforce transitions, and FutureFit AI is honoured to share our data and insights in the Report, Ekhtiari continued. “We look forward to continuing to contribute to a just, worker-first, and data-powered recovery as a partner of the World Economic Forum’s New Economy & Society community and its Reskilling Revolutions Platform.”

The Future of Jobs

Now in its third edition, The Future of Jobs report maps the jobs and skills of the future, tracking the pace of change. It aims to shed light on the pandemic-related disruptions in 2020, contextualized within a longer history of economic cycles and the expected outlook for technology adoption, jobs and skills in the next five years. The Future of Jobs survey informs the report. It is based on the projections of senior business leaders (typically Chief Human Resource Officers and Chief Strategy Officers) representing nearly 300 global companies, which collectively employ 8 million workers.

It presents the workforce planning and quantitative projections of chief human resource and strategy officers through to 2025, while also drawing on the expertise of a wide range of World Economic Forum executive and expert communities. The report features data from LinkedIn, Coursera, ADP and FutureFit.AI, which have provided innovative new metrics to shed light on one of the most important challenges of our time.

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Big gender gap in students attitudes and engagement in global and multicultural issues

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Schools and education systems are failing to give boys and girls across the world the same opportunities to learn and apply their knowledge of global and multicultural issues, according to a new report on the first OECD PISA assessment of the knowledge, skills and attitudes of students to engage with other people and cultures.

Are Students Ready to Thrive in an Interconnected World? focused on students’ knowledge of issues of local and global significance, including public health, economic and environmental issues, as well as their intercultural knowledge, skills and attitudes. Students from 27 countries and economies took the test. Students, teachers, parents and school principals from around 66 countries and economies completed a questionnaire*.

The results reveal a gender gap in access to opportunities to learn global competence as well as in students’ global and intercultural skills and attitudes. On average across OECD countries, boys were more likely than girls to report taking part in activities where they are expected to express and discuss their views, while girls were more likely than boys to report taking part in activities related to intercultural understanding and communication.

Boys, for example, were more likely to learn about the interconnectedness of countries’ economies, look for news on the Internet or watch the news together during class. They were also more likely to be asked by teachers to give their opinion about international news, take part in classroom discussions about world events and analyse global issues with their classmates.

In contrast, girls were more likely than boys to report that they learn how to solve conflicts with their peers in the classroom, learn about different cultures and learn how people from different cultures can have different perspectives on some issues. These gender differences could reflect personal interests and self-efficacy but could also reflect how girls and boys are socialised at home and at school, according to the report.

“Education is key to helping young people navigate today’s increasingly complex and interconnected world,” said Andreas Schleicher, OECD Director for Education and Skills. “The schools and education systems that are most successful in fostering global knowledge, skills and attitudes among young people are those that offer a curriculum that values openness to the world, provide a positive and inclusive learning environment and offer opportunities to relate to people from other cultures.”

The findings reveal the key role teachers play in promoting and integrating intercultural understanding into their classroom practices and lessons. Most teachers reported that they are confident in their ability to teach in multicultural settings. But the lack of adequate professional development opportunities in this field is a major challenge. Few teachers reported having received training on teaching in multicultural or multilingual settings.

More than 90% of students attended schools where principals reported positive multicultural beliefs among their teachers. Yet students who perceive discrimination by their teachers towards immigrants and people from other cultural backgrounds, for example, exhibited similar negative attitudes. This highlights the key role of teachers and school principals in countering or perpetuating discrimination by acting as role models.

The report found a strong link between students learning activities at school and having more positive intercultural attitudes. Also, speaking two or more languages was positively associated with awareness of global issues, interest in learning about other cultures, respect for people from other cultures and positive attitudes towards immigrants.

On average across OECD countries, 50% of students reported learning two or more languages at school, 38% reported learning one foreign language and only 12% reported not learning any foreign language at school. The largest share of students (more than 20%) who reported not learning any foreign language at school were observed in Australia, Brunei Darussalam, Malaysia, New Zealand, the Philippines, Saudi Arabia and Scotland. By contrast, in 42 countries, more than 90% of students reported that they learn at least one foreign language at school.

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Smart Manufacturing Ecosystems: A Catalyst for Digital Transformation?

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Seventy-five percent of US manufacturing leaders surveyed are most concerned about the ongoing impact of COVID-19 and economic slowdown on operations, and 72% are concerned with meeting profitability goals.

In response, 62% of leaders surveyed are continuing smart factory investments, allocating 20% more to those initiatives than last year.

Manufacturing ecosystems are accelerating digital transformation and results, with early adopters achieving twice the revenue growth, digital maturity and new product/service delivery as their peers.

Eighty-five percent of manufacturers surveyed believe ecosystems are important or extremely important to their competitiveness.

Why this matters
Ongoing disruption and economic hardship caused by the COVID-19 pandemic have increased the urgency for manufacturers to accelerate smart manufacturing initiatives for future competitiveness. Deloitte and the Manufacturers Alliance for Productivity and Innovation’s (MAPI) new report, “Accelerating Smart Manufacturing: The Value of an Ecosystem Approach,” examines how smart manufacturing initiatives may have been impacted by COVID-19 and suggests an ecosystem approach to help companies stay the course, accelerate digital transformation and drive productivity and performance.

As part of the study, Deloitte and MAPI surveyed more than 850 executives at manufacturing companies across 11 countries in North America, Europe and Asia, representing a factory footprint of approximately 10,000 facilities.

COVID-19 disruption and meeting profitability goals remain the two biggest concerns
More than 70% of manufacturing leaders surveyed are moderately or extremely concerned over the pandemic’s ongoing impact on operations, supply and demand, as well as meeting profitability goals. In many ways, this uncertainty emphasizes the growing importance of adopting smart manufacturing initiatives that can drive agility, speed and performance.

Accordingly, investment in smart manufacturing is expected to rise, taking a greater share of budgets
In a separate MAPI CEO survey, 85% of leaders agreed or strongly agreed that investments in smart factories would rise by June 2021, and similarly the “2020 Deloitte and MAPI Smart Manufacturing Ecosystem Study” found 62% of respondents committing to continuing or accelerating investments. Those forging ahead also indicated they are on average allocating 20% more toward smart factory budgets than last year.

Ecosystem-focused manufacturers outperformed across multiple performance metrics
Overall, the study found manufacturers reaching outside their organization to deliberately connect with vendors and service providers are outperforming others and expediting their digital transformation.

  • Eighty-eight percent of surveyed manufacturers agreed that it is important to work with outside partners, vendors and other companies to fully realize their smart manufacturing and digital goals.
  • In fact, an analysis of Fortune 500 manufacturers identified that companies with more than 15 strategic alliances registered twice the revenue growth, compared with companies with fewer than 15 alliances.
  • The study also revealed that ecosystem-focused manufacturers experienced twice the pace of digital maturity and delivery of new products and services; and had operationalized 31% of their projects versus 15% of projects for those still focused internally.

Business leaders widely endorsed ecosystems, highlighting their transformative potential
The study identified four primary ecosystems that support smart manufacturing initiatives: production, supply chain, customer and talent. Analysis of survey responses found the share of manufacturers pursuing or implementing these ecosystems is 68%, 69%, 51% and 41%, respectively. Overall, respondents acknowledged that they valued working with outside partners and having an ecosystem focus:

  • Eighty-five percent of executives surveyed believe production ecosystems are important or extremely important for competitiveness of their business.
  • Eighty-five percent of respondents said ecosystems will transform the way manufacturers deliver value and will lead to higher revenue growth and output.
  • The top benefits cited were “increasing the pace of new products/services delivery” and “increased revenue from products/services.”

A playbook to maximize value and minimize risks of ecosystems
Creating an ecosystem for smart manufacturing initiatives is not easy. There are many factors that could hinder companies’ efforts to connect with a broader network to advance their key smart manufacturing initiatives, such as coordination difficulties, data protection and cybersecurity concerns, risk of intellectual property theft and highly variable skills and capabilities across factory footprints. The study explores potential approaches to address each challenge and offers a playbook for adoption and implementation.

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