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Post-Pandemic Growth Needs New Skills for New Jobs that Are Open to All

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The World Economic Forum’s first Jobs Reset Summit convened more than 1,000 leaders from government, business and civil society to shape a new agenda for growth, jobs, skills and equity.

It follows the Forum’s January 2020 launch of the Reskilling Revolution online platform to create better jobs, skills and education for 1 billion people by 2030. The platform hosts global, national and industry coalitions.

The Forum’s Closing the Skills Gap Accelerators are a global network of national efforts to improve skills, redeploy upskilled workers and promote inclusion. At last week’s summit, three new countries – Georgia, Greece and Turkey – joined Bahrain, Brazil, India, Oman, Pakistan, South Africa, and the United Arab Emirates to close skills and employment gaps in their countries.

“Closing the skills and employment gap has never been so urgent and vital to our economy and society as we recover from the pandemic. The Accelerator in Greece will work with major private-sector companies and Regeneration as the local coordinator to build partnerships that would mobilize investment for job creation and reskill our workforce for the jobs of tomorrow,” said Adonis Georgiadis, Minister for Development and Investment, Greece.

Georgia has set up a new platform, Skills Georgia, under the Accelerator, a public-private agency run as a non-profit organization that will “give the opportunity for the new generation to become more innovative; more start-up, tech and innovation-oriented with their entrepreneurial thinking,” said Tamar Kitiashvili, Deputy Minister of Education, Science, Culture and Sport, Georgia.

Turkey is launching the Closing the Skills Gap Accelerator championed by three ministers – Industry and Technology; Education; and Family, Labour and Social Services – showcasing the cross-governmental collaboration required for rapid action on skills.

Leading policy-makers from Bahrain, Brazil and Pakistan provided updates on the efforts in their respective Accelerators to adapt to the pandemic and deliver skills to workers and out-of-work individuals. Brazil’s Deputy Minister of the Economy revealed that under Brazil’s Accelerator more than 8 million people will be trained to increase their future employability in the next two years. In Pakistan, the Minister for Overseas Pakistanis and Human Resources highlighted a standardization and accreditation system in more than 10,000 training centres across Pakistan, created in close partnership with the private sector. Bahrain’s Minister of Youth showcased the efforts focused on young graduates to equip them with the skills of tomorrow.

The Reskilling Revolution platform also hosts the Skills Consortium of top online education and training providers. These companies and organizations, including Coursera, Udacity and EdX, shared their support of workers in the current context and the opportunities for further delivering on the promise of online learning and training through better accreditation and recognition by employers.

Business-led and intra-industry collaborations were also announced at the summit to create solutions for workers who can be rapidly upskilled and redeployed to a different role within their sector, leveraging both online and in-person training. For example, Crescent Petroleum shared its partnership with Edraak to provide online learning for youth in the Middle East and North Africa region, with over 240,000 people already registered.

A New Agenda for Economic Growth, Revival and Transformation

A community of leading chief economists from the public and private sectors supported the development of the Forum’s Dashboard for the New Economy. The proposed set of macroeconomic targets aims to steer the COVID-19 recovery beyond GDP growth alone and give governments the impetus to put the focus on people, planet, prosperity and institutions.

The Forum also launched a priority list of 20 of the most promising Markets of Tomorrow that are poised to generate sustainable and inclusive job creation and growth beyond today’s economic models. A network of Closing the Innovation Gap Accelerators will be taking forward investments in these new markets and innovation ecosystems.

A New Agenda for Work, Wages and Job Creation

The World Economic Forum’s Future of Jobs Report, released during the summit, highlighted the “double disruption” faced by workers in the face of the pandemic recession coupled with accelerated automation.

A coalition of more than 60 chief human resources officers partnered with the World Economic Forum and Mercer to create a new set of principles for the future of work through the Resetting the Future of Work Agenda.

As part of a network of Preparing for the Future of Work Accelerators across nine industries, the Consumer Industry Acceleratorannounced an initiative to create “reskilling and redeployment pathways” for thousands of employees. Leena Nair, Chief Human Resources Officer, Unilever, announced the collaboration with Walmart, Accenture and Skyhive. “It’s the first of its kind, non-competitive, collaborative partnership,” said Nair. The coalition is inviting companies from across industries to join the response to deal with the scale of the reskilling challenge.

A New Agenda for Equity, Inclusion and Social Justice

In addition, Jordan joined 10 other economies, including Argentina, Chile, Colombia, Panama, Costa Rica, Peru, Dominican Republic, Egypt and France, deploying the Closing the Gender Gap Accelerators to enhance opportunities for women in the workforce.

“The government of Jordan is committed to gender equality and women’s empowerment as an effective tool to combat poverty, hunger and diseases. Today’s launch of the Jordan Closing the Gender Gap Accelerator will help us incorporate gender as a cross-cutting theme in our economic recovery plans. It is also in line with our longstanding public-private collaboration efforts to create more equitable growth,” said Nasser Shraideh, Jordan’s Minister of Planning and International Cooperation.

The Future of Jobs Report highlighted how the impact of technology and the COVID recession on jobs has been worse for women, youth and lower-income workers. The newly launched Resetting the Future of Work Agenda highlights the win-win of diversity, equity and inclusion in this context, while the recent Diversity, Equity and Inclusion 4.0 Toolkithelps companies deploy the latest HR technologies to support this.

The Valuable 500 – committed to transforming disability inclusion through business leadership and opportunity, launched at the Forum’s Annual Meeting 2019 – announced an additional 100 members since January 2020. With 334 organizations worldwide, combined revenues of over $4.5 trillion and an employee base of 11.9 million, The Valuable 500, in partnership with the Forum, launched its Transformation Leadership Programme to build capability at leadership and C-suite level.

Notable Quotes from Leaders throughout the Summit

Environmental and social pressures have exposed the fault lines in the structure of global capitalism. Ray Dalio, Founder, Co-Chairman and Co-Chief Investment Officer of Bridgewater Associates, said: “Capitalism by its nature tends to create greater wealth gaps. There needs to be a coordinated effort to restructure how the machine works.”

Unilever’s Chief Executive Officer Alan Jope referred to COVID-19 causing a jobs crisis but urged action on two further crises, climate change and the nature of capitalism itself, “We must change the measures of success,” he said, moving beyond the preoccupation with measuring only GDP and profit as yardsticks for the recovery.

“We have a tech-savvy younger generation, and the challenge now is how do we equip them more”, said Rania Al-Mashat, Minister of International Cooperation of Egypt, and a Co-Chair of the Closing the Gender Gap Accelerator in Egypt.

Jonas Prising, Chairman and Chief Executive Officer of ManpowerGroup, described a two-speed recovery from COVID-19. “Businesses that are able to adapt are recovering quicker than those that cannot. The same is true for the labour market. People with the right skills will come back faster.”

For Angel Gurría, Secretary-General of the Organisation for Economic Co-operation and Development (OECD), “Coordination is missing in action,” he said. Yet, the only way to deal with issues of international trade, migration, climate change, employment and economic recovery from COVID-19 – even the search for a vaccine – is through multilateral cooperation.

The International Trade Union Confederation (ITUC) and others called for the creation of a Global Social Protection Fund for those hardest hit by the COVID-19 crisis. “About half of the world’s people have no social protection or any sense of security,” said Sharan Burrow, General-Secretary, International Trade Union Confederation (ITUC).

Geraldine Matchett, Co-Chief Executive Officer and Chief Financial Officer of Royal DSM highlighted how technology can help to enable fairer access to jobs and that “the COVID crisis has shown us that it’s very possible to change the definition and format of work.” Royal DSM is a founding partner of the Forum’s Hardwiring Gender Parity in the Future of Work framework.

Additionally, the OECD and the Education Commission announced at the summit new studies that promote new metrics for soft skills and a new common agenda for education.

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Albania Has Opportunity to Build a More Sustainable Growth Model

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Albania’s economy, like other countries in the region, is recovering faster than expected after the historic recession created by the COVID-19 pandemic. Following the contraction of the economy by 4 percent in 2020, GDP growth is projected to reach 7.2 percent in 2021, one of the highest among Western Balkans countries, says the latest edition of the Western Balkans Regular Economic Report, Greening the Recovery.

The strong recovery is supported by consumption, tourism, and construction. Going forward, growth is expected to moderate at 3.8 percent in 2022 and 3.7 percent in 2023.

Albania’s poverty rate is projected to fall below its pre-pandemic level by end-2021. Employment and labor force participation is also recovering, albeit with a lag, and real wages are increasing.

The recovery is contributing to fiscal revenue collection. Macroeconomic policies have supported the recovery, but higher spending has led to a further rise in the debt-to-GDP ratio. Economic uncertainty remains high, as the COVID-19 pandemic continues worldwide.

“The Albanian economy has shown encouraging signs of recovery in 2021,” said Emanuel Salinas, World Bank Country Manager for Albania. “As growth rebounds, Albania has the opportunity to strengthen the sustainability of its economic model and implement reforms that further support sustainable and shared growth, while preserving macroeconomic stability.”

The report shows that the Western Balkans region has improved significantly, with GDP growth now projected to reach 5.9 percent in 2021, after a 3.1 percent contraction in 2020. Growth in the region is projected at 4.1 percent in 2022 and 3.8 percent in 2023.

The poverty rate for the region is projected to resume its pre-pandemic downward trend and fall by around 1 percentage point to 20.3 percent, close to its 2019 level.

The regionwide recovery is due to strength in both domestic and external demand. A sharp rebound in domestic consumption and in travel across Europe helped boost remittances as well as tourism inflows during the 2021 peak summer season. A strong recovery in advanced economies also provided a boost to demand for the region’s exports.

However, the recovery remains fragile. Early warning signals from the labor market call for close policy attention. Job losses from the recession and its aftermath have disproportionately affected women and youth, which may set back efforts to raise the region’s perennially low rates of labor force participation. Youth unemployment in the region rose to 37.7 percent in 2021, up 5.4 percentage points from June 2020, further worsening youth employment prospects.

“As the Western Balkans countries look to a post-pandemic future, their policy approach will need to focus on addressing key impediments to job creation and economic transformation, including green transition,” said Linda Van Gelder, World Bank Country Director for the Western Balkans. “All six countries would benefit from reforms in the business environment, governance, and digitalization, which would contribute to growth and close the gap with EU countries.”

The report also looks at the macro-fiscal challenges and drivers of greening the region’s growth. The Western Balkans now find themselves at a key decision point regarding the impending green transition.

Global strides toward climate action are causing fundamental changes in society. Consumer and investor preferences are shifting, green technologies and new business models are disrupting more markets, and green policies are reshaping economic landscapes. As such, greening a country’s economy is becoming a decisive factor in international competitiveness and the ability to attract international finance and investments.

The Western Balkans are no exception. Still characterized by a development model tilted toward familiar brown industries, moving toward a green growth pathway is far from easy, especially in the short term. Yet, the green transition offers significant opportunities for the Western Balkans – including closer integration into Euro-centric global value chains and access to significant EU resources to help fund a green transition.

Effectively managing this green transition, including the many policy tradeoffs, will need to be a core focus of policy attention for the Western Balkans in the years ahead.

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Montenegro on Course for Stronger Economic Recovery in 2021

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The Western Balkans region is rebounding from the COVID-19-induced recession of 2020, thanks to a faster-than-expected recovery in 2021, says the latest edition of the Western Balkans Regular Economic Report, Greening the Recovery.

The outlook for the region has improved significantly, with GDP growth now projected to reach 5.9 percent in 2021, after a 3.1 percent contraction in 2020. Growth in the region is projected at 4.1 percent in 2022 and 3.8 percent in 2023.

Driven by a rapid recovery in tourism, Montenegro’s economy is projected to rebound strongly by an estimated 10.8 percent in 2021, the highest rate among the six Western Balkan countries. Strong peak summer season has supported a rebound in tourism revenues, which are likely to reach close to 75 percent of their 2019 levels, from 55 percent previously estimated.

The rebound of economic activity has boosted government revenues, which coupled with careful fiscal management have led to a reduction in fiscal deficit from 11 percent of GDP in 2020 to an estimated 4 percent in 2021. Maintaining fiscal prudence in the medium term will be critical, as uncertainties loom.

“The economic crisis brought on by the COVID-19 pandemic continues to be a source of uncertainty, but also presents an opportunity for Montenegro to ensure a resilient, inclusive, and green post-pandemic recovery,” says Christopher Sheldon, World Bank Country Manager for Bosnia and Herzegovina and Montenegro. “The World Bank is committed to helping Montenegro implement reforms that can help ensure macroeconomic stability, create economic opportunities, and spur strong private-sector led growth”.

The report finds that unemployment in Montenegro remains high as the recovery has not ignited the labor market yet, which limits the pace of resumed poverty reduction. Poverty is projected to decline slowly in 2021, but it remains higher than its 2019 level.

The poverty rate for the region is projected to resume its pre-pandemic downward trend and fall by around 1 percentage point to 20.3 percent, close to its 2019 level.

The regionwide recovery is due to strength in both domestic and external demand. A sharp rebound in domestic consumption and in travel across Europe helped boost remittances as well as tourism inflows during the 2021 peak summer season. A strong recovery in advanced economies also provided a boost to demand for the region’s exports.

However, the recovery remains fragile. Early warning signals from the labor market call for close policy attention. Job losses from the recession and its aftermath have disproportionately affected women and youth, which may set back efforts to raise the region’s perennially low rates of labor force participation. Youth unemployment rose to 37.7 percent in 2021, up 5.4 percentage points from June 2020, further worsening youth employment prospects.

“As the Western Balkans countries look to a post-pandemic future, their policy approach will need to focus on addressing key impediments to job creation and economic transformation, including green transition,” said Linda Van Gelder, World Bank Country Director for the Western Balkans. “All six countries would benefit from reforms in the business environment, governance, and digitalization, which would contribute to growth and close the gap with EU countries.”

The report also looks at the macro-fiscal challenges and drivers of greening the region’s growth. The Western Balkans now find themselves at a key decision point regarding the impending green transition.

Global strides toward climate action are causing fundamental changes in society. Consumer and investor preferences are shifting, green technologies and new business models are disrupting more markets, and green policies are reshaping economic landscapes. As such, greening a country’s economy is becoming a decisive factor in international competitiveness and the ability to attract international finance and investments.

The Western Balkans are no exception. Still characterized by a development model tilted toward familiar brown industries, moving toward a green growth pathway is far from easy, especially in the short term. Yet, the green transition offers significant opportunities for the Western Balkans – including closer integration into Euro-centric global value chains and access to significant EU resources to help fund a green transition.

Effectively managing this green transition, including the many policy tradeoffs, will need to be a core focus of policy attention for the Western Balkans in the years ahead.

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North Macedonia’s Growth Projected Higher, but Economy Still Faces Risks

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The Western Balkans region is rebounding from the COVID-19-induced recession of 2020, thanks to a faster-than-expected recovery in 2021, says the latest edition of the Western Balkans Regular Economic Report, Greening the Recovery.

The outlook for the region has improved significantly, with GDP growth now projected to reach 5.9 percent in 2021, after a 3.1 percent contraction in 2020. Growth in the region is projected at 4.1 percent in 2022 and 3.8 percent in 2023.

The poverty rate for the region is projected to resume its pre-pandemic downward trend and fall by around 1 percentage point to 20.3 percent, close to its 2019 level.

The regionwide recovery is due to strength in both domestic and external demand. A sharp rebound in domestic consumption and in travel across Europe helped boost remittances as well as tourism inflows during the 2021 peak summer season. A strong recovery in advanced economies also provided a boost to demand for the region’s exports.

For North Macedonia, this translates into a growth projection of 4.6 percent for 2021, much higher than the forecast in spring. “This positive outlook is still surrounded by downside risks, with the pace of immunization low and supply chains still disrupted, while financial conditions have started tightening,” said Massimiliano Paolucci, World Bank Country Manager for North Macedonia and Kosovo.

However, the recovery remains fragile. Early warning signals from the labor market call for close policy attention. Job losses from the recession and its aftermath have disproportionately affected women and youth, which may set back efforts to raise the region’s perennially low rates of labor force participation. Youth unemployment rose to 37.7 percent in 2021, up 5.4 percentage points from June 2020, further worsening youth employment prospects.

“As the Western Balkans countries look to a post-pandemic future, their policy approach will need to focus on addressing key impediments to job creation and economic transformation, including green transition,” said Linda Van Gelder, World Bank Regional Director for the Western Balkans. “All six countries would benefit from reforms in the business environment, governance, and digitalization, which would contribute to growth and close the gap with EU countries.”

The report also looks at the macro-fiscal challenges and drivers of greening the region’s growth. The Western Balkans now find themselves at a key decision point regarding the impending green transition.

Global strides toward climate action are causing fundamental changes in society. Consumer and investor preferences are shifting, green technologies and new business models are disrupting more markets, and green policies are reshaping economic landscapes. As such, greening a country’s economy is becoming a decisive factor in international competitiveness and the ability to attract international finance and investments.

The Western Balkans are no exception. Still characterized by a development model tilted toward familiar brown industries, moving toward a green growth pathway is far from easy, especially in the short term. Yet, the green transition offers significant opportunities for the Western Balkans – including closer integration into Euro-centric global value chains and access to significant EU resources to help fund a green transition.

Effectively managing this green transition, including the many policy tradeoffs, will need to be a core focus of policy attention for the Western Balkans in the years ahead.

Continue Reading

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