DEVELOPING SKILLS

FORESIGHTS, SCENARIOS
AND FORECASTS
GUIDE TO ANTICIPATING AND MATCHING SKILLS AND JOBS VOLUME 2
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Compendium on
Anticipation and
Matching of Skills

DEVELOPING SKILLS
FORESIGHTS, SCENARIOS
AND FORECASTS
GUIDE TO ANTICIPATING AND MATCHING SKILLS AND JOBS VOLUME 2
Part A: Martin Bakule, Věra Czesaná and Věra Havlíčková
Part B: Ben Kriechel, Tomáš Rašovec and Rob Wilson
FOREWORD

In a context of dynamic and complex labour markets, gathering

intelligence on current and future skill needs can support
better matching of training and jobs, which is of paramount
importance for every country in the world. In recent years,
better understanding of labour market needs and skills
matching have featured high on the policy agenda of many
countries, driven by both rapid technological advances and
global competition. Skills matching can also help reduce
unemployment, particularly among young people. It helps
build a better life for individuals by improving employability,
social mobility and inclusion.
The European Union (EU) places great emphasis on skills
anticipation and better matching. The Europe 2020 strategy and,
in particular, the Agenda for new skills and jobs, recognise that
anticipation and matching approaches and methods can help
develop a skilled workforce with the right mix of skills in
response to labour market needs, in a way that promotes job
quality and lifelong learning. The EU Skills Panorama, launched
in 2012, supports the effort to provide better data and
intelligence on skill needs in the labour market.
The tripartite representation of International Labour Organization
(ILO) Member States agreed that countries that have succeeded
in linking skills to gains in productivity, employment and
development have targeted skills development policy towards
three main objectives:

• matching supply to current demand for skills; training or through their work and life experience.
Education and training systems, in particular, have
• helping workers and enterprises adjust to change;
a key role to play in ensuring that opportunities are
• building and sustaining competencies for future provided for all individuals to develop their skills
labour market needs. continually in a lifelong learning perspective, enabling
them to adapt to rapidly changing labour market
Skills matching is a complex and dynamic process
requirements and conditions.
involving multiple stakeholders making multiple decisions
at different times: individuals and their families, as they Given the complexity and dynamics of the process,
make decisions regarding their own education and perfect matching between skills demand and supply
training; education, training and labour market policy is neither feasible (especially in rapidly changing labour
makers, as they decide on the configuration of education markets and economies) nor necessary, given the fact
and training systems, employment policies and that many people can do many different jobs and many
investments; training institutions, as they make decisions jobs can be done by people with different skill sets.
on the type and content of the training courses to be However, it is important for policy makers to be aware
delivered; and employers, as they take decisions on how of the importance of reducing the risk of creating large
to train workers and utilise skills. skills gaps that undermine the employability of
individuals and impede the productivity of enterprises
Jobs are changing rapidly and individuals are also
and the growth of economies.
changing their skill sets, either through education and

Developing skills foresights, scenarios and forecasts 5

International experience suggests that a tomorrow. They target professionals, policy makers,
comprehensive labour market information system is research commissioners, social partners and experts
the backbone of any education and employment who need an overview of how different anticipation
strategy, but no single methodology can generate and matching methodologies can generate reliable
sufficient knowledge of labour markets to avoid or labour market information and how information and
minimise skills mismatch. The right mix and evidence can be analysed and used for the
complementarity of different methods is essential for a development of policy interventions or adjustments in
reliable and comprehensive overview of skills demand education and employment strategies.
and matching.
The compendium brings together state-of-the-art
For developing and transition countries, skills matching international good practice and experience
and anticipation is becoming an even more complex worldwide. The most common approaches used for
task given their particular socio-economic conditions, skills matching and anticipation in different economic
weak institutions, capacities and governance systems. and country contexts are reviewed, and their
Many developing countries have limited labour market potential and methodological shortcomings for
information and more effort and investment is needed generating reliable data and information are
to build robust information systems. At the same time, examined. They serve as reference material for
even limited evidence can be better, and more readers to explain the scope, added value and
efficiently used, with proper methodological tools and limitations of diverse methodologies. The guides also
analyses. provide insight into how the results of different
methodologies can be analysed to provide
To respond to these challenges, the European Training
recommendations and policy formulations.
Foundation (ETF), the European Centre for the
Development of Vocational Training (Cedefop) and the Any feedback from readers and users of the guides is
International Labour Office have joined forces and very welcome, particularly regarding how the next
combined expertise and geographic coverage to editions could be improved or made relevant to their
develop a compendium of methodological guides on circumstances and policy dilemmas, how they are
anticipation and matching of skills supply and demand: used in different countries and contexts, including
especially in bringing stakeholders together, and which
• Volume 1: how to use labour market information.
topics could be added in the future to complement the
• Volume 2: how to develop skills foresights, current compendium.
scenarios and skills forecasts.
• Volume 3: what works at sector level. Chris Evans-Klock,
Chief of the Skills and Employability Branch,
• Volume 4: what is the role of employment service
Employment Policy Department
providers.
ILO – International Labour Office, Geneva
• Volume 5: how to develop and run an establishment
Madlen Serban,
skills survey.
Director
• Volume 6: how to carry out tracer studies. ETF – European Training Foundation
The six guides complement each other. They include Joachim James Calleja,
both qualitative and quantitative approaches, and Director
advocate strong social dialogue and institutions Cedefop – European Centre for the Development of
conducive to better understanding the skills needs of Vocational Training

6 Guide to anticipating and matching skills and jobs

ACKNOWLEDGMENTS

T he authors would like to thank Hana Ríhová, Zdeňka Šímová,

and Marta Salavová for their inputs to Part A of the volume;
Pavel Luksha, Luiz A. Cruz Caruso, Marc Bovenschulte, Bernd
Dworschak, Samuli Leveälahti, Tomoaki Wada, Gyu-Hee Hwang,
Maria João Rodrigues, Anastasia Fetsi, Hajnalka Tarjani, Mike
Campbell, and Rebecca Chesney for making available background
materials for case studies, and Tatiana Cyro Costa and Erasmo
Soto for their inputs to the initial literature review for Part A.
Our gratitude goes to all experts who participated in the
development of Cedefop’s project Forecasting skills supply and
demand in Europe and its methodology, which was used in Part B
of the volume.
Many thanks to ILO colleague Olga Strietska-Ilina for technical
editing, and Christine Evans-Klock, Fernando Vargas, and Theo
Sparreboom for their useful comments on the volume. We would
like to acknowledge all those experts who participated in the
validation workshop for their recommendations.
We are grateful for the energy, steering of the publication and
support received from Cedefop colleagues Pascaline Descy, Alena
Zukersteinova, Vladimir Kvetan and Roula Panagiotou, ILO
colleague Olga Strietska-Ilina, and ETF colleagues Anastasia Fetsi,
Timo Kuusela and Mara Arno.

Developing skills foresights, scenarios and forecasts 7

TABLE OF CONTENTS

FOREWORD  5
ACKNOWLEDGMENTS  7
TABLE OF CONTENTS  8
LIST OF FIGURES, TABLES AND BOXES  11
EXECUTIVE SUMMARY  14
Purpose of skills foresighting and forecasting  14
Approaches: foresighting versus forecasting  14
Implementation  15
INTRODUCTION  16
Foresights and skills anticipation: Part A 16
Skills forecasts: Part B 17
Foresights versus quantitative skills forecasts 17
Objectives 17
The reader 18
PART A: FORESIGHT 19
1. FORESIGHT AND SKILLS   20
1.1. What is a foresight? 20
1.2. Skills anticipation in foresight activities 22
1.3. Foresight story 24
2. COMPARATIVE REVIEW OF FORESIGHT AND SCENARIO METHODS 29
2.1. Categories of foresight methods 29
2.1.1. Exploratory methods 29
2.1.2. Normative methods 29
2.1.3. Other types of categories 31
2.2. Foresight methods 33
2.2.1. Supplementary methods 33
2.2.2. Exploratory methods 39
2.2.3. Normative methods 52
2.3. Conclusion: how to choose a method, or methods 56
3. KEY STEPS IN IMPLEMENTING FORESIGHT PROGRAMMES 60
3.1. Define foresight area to be considered 60
3.2. Clarify the purpose of the foresight exercise 61
3.3. Clarify the key programme design elements 61
3.4. Clarify key questions and the way to find answers 65
3.5. Manage the foresight exercise 65
3.6. Ensuring the use of results 67
4. ADAPTING FORESIGHTING TO LOCAL NEEDS 68
4.1. Key context factors 68
4.1.1. Country size 68
4.1.2. Economic and social context 68

8 Guide to anticipating and matching skills and jobs

 4.1.3. Political stability and culture 69
4.1.4. Openness and vulnerability to external changes 69
4.1.5. Cultural context 69
4.1.6. Institutional background 71
4.1.7. Resources 71
4.2. Success factors 71
4.2.1. Setting reasonable goals and scope of activities 71
4.2.2. Adequate institutional framework 71
4.2.3. Engaged stakeholders 72
4.2.4. Availability of resources 72
4.2.5. Choice of methods 73
4.2.6. Effective dissemination of results 73
4.3. Building foresight culture 73
4.4. Questions on preparation and implementation of a foresight exercise 74
REFERENCES AND RESOURCES ON PART A 77
PART B: SKILLS FORECASTS 81
5. INTRODUCTION TO SKILLS FORECASTS 82
5.1. Skills forecasting: for whom? 83
5.2. Duration of forecast 84
5.3. A brief history of labour market forecasting 85
5.4. Best practices: when to use quantitative skills forecasts 85
5.4.1. Limitations of quantitative models 86
6. GENERAL APPROACHES IN SKILLS FORECASTING 88
6.1. Quantitative modelling 89
6.2. Qualitative methods 90
6.3. Combining quantitative and qualitative methods 90
7. DATA 91
7.1. Key data 91
7.2. Data collection 92
7.2.1. Classifications 92
8. MODELLING APPROACHES 94
8.1. Macro models 94
8.1.1. The macro model for the Cedefop skills project: E3ME 94
8.1.2. A model suitable for transition countries: Hermin 95
8.2. Other economic modelling 96
8.3. Simpler models of employment change 97
8.4. Qualitative inputs into quantitative forecasts and expert evaluation 101
9. COMPONENTS OF SKILLS FORECASTING 104
9.1. Supply 104
9.2. Employment change 105
9.3. Replacement needs 106

Developing skills foresights, scenarios and forecasts 9

10. SPECIFIC ISSUES IN SKILLS MODELLING 109
10.1. Technological change 109
10.2. Skill mismatch 109
10.3. Imbalances 110
10.4. Indicators 111
10.5. Regional forecasting 111
11. EXAMPLES OF SKILLS FORECASTING 112
11.1. Pan-European forecasts: Cedefop 112
REFERENCES AND RESOURCES ON PART B 116
ACRONYMS 120
ANNEX: COUNTRY CASE STUDIES ON FORESIGHTS AND SCENARIOS 121
ANNEX 1. BRAZIL 123
ANNEX 2. GERMANY 137
ANNEX 3. FINLAND 147
ANNEX 4. JAPAN 156
ANNEX 5. KOREA 160
ANNEX 6. THE EUROPEAN UNION 163
ANNEX 7. SKILLS FORESIGHT IN THE EU ENLARGEMENT REGION 176
ANNEX 8. RUSSIA 184
ANNEX 9. AUSTRALIA 196
ANNEX 10. UNITED KINGDOM 203
ANNEX 11. UNITED STATES OF AMERICA 211
KEY TECHNICAL TERMS 214
ABSTRACT 216

10 Guide to anticipating and matching skills and jobs

LIST OF FIGURES, TABLES AND BOXES

Figures
Figure 1. Foresight activity chain 20
Figure 2. Foresight as a part of continuous process 22
Figure 3. Scheme of exploratory methods 30
Figure 4. Scheme of exploratory methods 30
Figure 5. Foresight diamond 32
Figure 6. SWOT matrix 36
Figure 7. Activities employed in Delphi analysis 42
Figure 8. Scheme of the backcasting method 52
Figure 9. Graphical representation of technological roadmapping 55
Figure 10. National accounts data by expenditure category and by sector 98

Figure A1 Updated general outline of the SENAI model 130

Figure A2. FIRJAN occupational observatory 132
Figure A3 Schedule of topic searches 140
Figure A4 Combination of methods in the BMBF’s process 141
Figure A5. Target scenarios 153
Figure A6. Vision for skills 2020 177
Figure A7. Process of foresight 181
Figure A8. Growing mismatch between training and new skills demand due to increased rate of
technological change 184
Figure A9. Key steps of skills foresight study 186
Figure A10. General methodology of foresight sessions 188
Figure A11. Key factors changing working tasks in all technology-driven sectors of the Russian economy 190
Figure A12. Emergence of new competency type’ in knowledge-based sectors of Russian economy 193
Figure A13. Scheme of the national strategic skills audit 204
Figure A14. The scheme of the project methods/activities 205
Figure A15. Six drivers and 10 skills needed in the future 212

Developing skills foresights, scenarios and forecasts 11

Tables
Table 1. Generations of foresight 23
Table 2. Pros and cons of literature and statistics reviews 35
Table 3. Pros and cons of SWOT analysis 37
Table 4 Pros and cons of brainstorming 38
Table 5. Pros and cons of brainstorming 41
Table 6. Pros and cons of Delphi analysis 43
Table 7. Pros and cons of horizon scanning 47
Table 8. Pros and cons of using scenarios 50
Table 9. Pros and cons of cross-impact analysis 51
Table 10. Pros and cons of backcasting 54
Table 11. Pros and cons of morphological analysis 55
Table 12. Pros and cons of roadmapping 56
Table 13. Pros and cons of morphological analysis 57
Table 14 Methods combination matrix (MCM) 58
Table 15. Some alternative approaches to anticipating skill requirements 89
Table 16. Canadian COPS model: the outlook for labour market conditions by occupation is determined
using observed conditions in recent years and projected trends in jobseekers and job openings 102

Table A1. Original SENAI foresight model 126

Table A2 2013-27 scenario 129
Table A3. Main drivers of change in each activity 166
Table A4. New critical competencies by occupation function in the specialised software industry 168
Table A5. Scenarios and implication for employment trends 169
Table A6. Jobs in expansion, transformation or decline in Scenario E ‘Expanding specialised
software, content industries and telecommunications and declining in executive jobs
in the other industries’ 170
Table A7. Main corporate strategies by activity 171
Table A8. Key framework conditions by activity 172
Table A9. Occupation profiles by function and activity in the EU Member States X 172
Table A10. Strategic choices to meet skills needs 173
Table A11. Overview of phases and tasks 179
Table A12. Key competencies of the Russian worker of the future 191
Table A13. Four competency types for knowledge-based sectors of the Russian economy 192

12 Guide to anticipating and matching skills and jobs

Boxes
Box 1. Literature review: example of Brazil 34
Box 2. Brainstorming: US example 38
Box 3. Expert panel: example of Germany 40
Box 4. Delphi survey: example of Japan 43
Box 5. Horizon scanning: example of the UK 45
Box 6. Scenarios: example of Australia 49
Box 7. Backcasting: example of the UK 53
Box 8. Finding research fields and topics: BMBF foresight in Germany 60
Box 9. Involving stakeholders 62
Box 10. Foresight programme team skills 66
Box 11. Cultural context in Japan 70
Box 12. Institutional framework in Russia 72
Box 13. Rationale for skills projections 83
Box 14. Use of input-output data 97
Box 15. The Lotus model for Vietnam 100
Box 16. Examples of econometric specifications in Cedefop’s expansion demand 106
Box 17. Simplified replacement demand: concentrating on retirement outflows 108
Box 18. Imbalances in the Cedefop forecast: RAS procedure 113

Box A1. Original SENAI model: activities and methods 127

Box A2. Adequate institutional framework in place 149

Developing skills foresights, scenarios and forecasts 13

Executive summary

Purpose of skills foresighting and forecasting While foresights and quantitative skills forecasts have
similar goals in informing decision-makers and
Foresighting and forecasting support decisions in areas
stakeholders about likely future outcomes and their
which involve long lead times, such as education and
probable consequences, they differ in the way they are
training, and long-term labour market planning. Skills
implemented, their requirements in terms of inputs,
anticipation offers early warning of evolving skill
and in the types of outputs that they can generate.
mismatches, allowing sufficient time for action to
counteract them. Individuals, firms and education and Qualitative foresights require less formalised (data)
training providers, who have to make decisions about inputs and are easier to set up initially. They do not
the kinds of education and training for the future require extensive data series or quantitative modelling
workforce, need to assess future prospects carefully, of labour market relations. Foresights depend on the
looking to fill information deficits and avoid future inputs from key experts and stakeholders and on the
imbalances and mismatches:. Anticipating the future is way which they are combined in methodology.
not straightforward, yet it allows identify current trends Foresight is a visionary tool which provides incentives
and strategies and their likely implications in the future. for participating stakeholders to come up with the
future they want and commit themselves to the
The main rationale for skills anticipation is that labour
implementation of the vision. Foresight is a highly
market failures make a case for public intervention.
interactive tool of social dialogue with representatives
Generating information for labour market actors
of the private sector.
ensures better match of skills acquired through
education and training, an important element for Quantitative skills forecasts offer a consistent and
economic policy decision-making. Ideally it is detailed picture of future developments by sector,
undertaken within a broader approach with other occupation, qualification or skills. They are more
elements of economic development, where demanding of the availability of adequate labour market
investment in education, training and quality of jobs data, both in quality and in the data series length.
is part of the process. Building and interpreting quantitative models takes
time and expertise, even if they are based on
established principles. Based on international
Approaches: foresighting versus forecasting
experience, the guide suggests combining (modules
The guide focuses on mid- to long-term anticipation, generating) supply by qualification, demand by sector,
ranging from five up to 20 years. These foresight and occupation, and possibly skills or qualification.
forecasting approaches are applied either at national
Both qualitative and quantitative elements can be
level covering the whole economy or – in the case of
mixed to develop a skills anticipation model or method
foresights – at sector level for one or more sectors
that is suitable for a country’s or region’s purpose.
within the economy.
Often missing elements of quantitative skills
Our review from various countries shows that there is forecasting can be substituted by simplified procedures
no single, simple model that could be applied or assumptions that can be based on qualitative
universally. However, several principles and approaches methodology. A methodology of skills anticipation that
can be identified that have been successful. Common is mainly based on qualitative approaches can be
experience in data and institutional requirements are supported by quantitative inputs at various stages and
reported. settings.

14 Guide to anticipating and matching skills and jobs

Implementation circumstances of the individual situation in specific
countries.
The guide emphasises a hands-on approach. It
discusses the steps that need to be taken in The guide sees several success factors, both for
foresighting and forecasting approaches. In this foresights and also for forecasting: successful skills
context, we do not only discuss issues of methodology anticipation depends on identifying clear and realistic
but also of implementation processes. goals; it should be embedded into an institutional
framework which includes identifying and engaging
Skill anticipation will only be successful if it is
key stakeholders; and to broaden the use and the
embedded into a structure in which the results are
usefulness of skills anticipation, dissemination of
developed, discussed and used with the various
results across various channels should become
stakeholders and decision-makers. It is not only the
increasingly important. Tools and instruments should
development and the instruments of generating
be chosen according to the infrastructure and
forecasting or foresighting results that are important,
resources. If the data infrastructure is good,
but also networks and institutions that work with the
quantitative skill forecast might be considered;
data, feed back into them, and participate in
qualitative foresights are less dependent on
development of the (initial) discussion or evaluation of
well-established and preferably long-term data
results.
collections. Skill anticipation should not be a one-time
Case studies and descriptions of approaches from exercise but a sustained, long-term effort that is
across the world are included to emphasise the repeated regularly to allow both for the development
importance of learning from others. They also show of a methodology of generating the skill forecast or
how the basic concepts and instruments need foresight and an understanding of how to use the
continuous adaptation to the particular results.

Developing skills foresights, scenarios and forecasts 15

Introduction

We live in a rapidly changing and uncertain world. associated with lower rates of unemployment and
Individuals, firms, and education and training providers higher earnings. Research strongly suggests that
have to make decisions about the kinds of education upskilling – measured as the share of post-secondary
and training that will offer the best returns. Peering into graduates in the population – played a key role in
the future is not straightforward yet there is rising countering the long-term trend of growing inequality
demand for information on potential developments. in earnings. Adult education and training also have
Long lead times on investment decisions such as a significant positive impact on workers’ productivity
education and training mean that it is necessary for all and wage levels. In contrast, having to support
those who are making such choices to assess future poorly-skilled people who are under- or unemployed
prospects carefully. This includes those concerned with can be very costly for governments (OECD, 2011; ILO,
macro-level policy in these domains, as well as 2008).
individuals, organisations and institutions making more
Education has a positive impact not only on economic
personal choices. Help is needed to fill information
performance but also on social outcomes. Adults with
deficits and avoid future imbalances and mismatches.
higher levels of education are more likely to report that
Foresights, skills anticipation and forecasting should their health is good, and they tend to have a greater
not be seen as only necessary in high-income interest in politics and higher levels of interpersonal
countries. Though such countries usually have easier trust. Skills – both cognitive and non-cognitive – play an
access to funds for these types of projects and more important role in empowering individuals to follow
developed statistical data available, the basic problem healthy lifestyles and to be active citizens. The strong
addressed by the activities within this guide remain positive relationship between education and health
important at all stages of development: to get an outcomes has also been documented for developing
understanding of current and future evolution on the countries and emerging economies (ADB, 2008). These
labour market, and to support the development of the benefits accrue to society as a whole, as they reduce
right mix of human capital within a nation. social costs – for example, in health expenditure – and
foster social cohesion.
The main rationale for skills anticipation is avoiding
labour market failures. This makes a case for public
interventions to ensure better match of skills acquired Foresights and skills anticipation: Part A
through education and training and those that are
The future is uncertain but, for policy goals, we need
necessary to succeed in the labour market and to
to try to understand what will happen. Foresight
ensure better lives for individuals. Skills anticipation
techniques and methods play a crucial role in
is therefore an important element for economic policy
revealing future developments. They help to deal with
decision-making. Ideally it is undertaken within a broad
uncertainty and provide insights for identifying future
approach, with other elements of economic
changes and needs. In education, anticipation of skill
development where the investment in education,
needs is essential to meet future skill requirements in
training and quality of jobs is viewed as part of the
the economy and society. Even though some have
process.
argued that systematic anticipation of changing skill
Skills are crucial to prosperity. They contribute to needs is impossible, with sophisticated approaches it
economic growth both directly, through increased is possible to fill information deficits and help reduce
productivity, and indirectly, by creating greater capacity future imbalances and mismatches. Foresight can
of workers and firms to adopt new technologies and help those concerned with policy making in
ways of working and to spur innovation. Conversely, anticipation of skill needs to make better decisions
skills shortages and mismatches between the supply and support planning. It is a helpful tool for education
of and demand for skills lower the potential for growth policy planning in times of rapid change. It allows
and may lead to waste of resources. engagement with a broad range of stakeholders in
meaningful discussions about not only what we think
Skills also improve the lives of individuals. The
education might become, but also what we want
economic benefits of higher levels of initial education
education to become.
are well documented. Higher levels of attainment are

16 Guide to anticipating and matching skills and jobs

The concept of foresight is introduced in the first procedures or assumptions based on qualitative
chapter of part A which provides understanding on how methodology. A methodology of skills anticipation that
foresights can be used within skills anticipation. This is mainly based on qualitative approaches can be
chapter details when and how this methodology is supported by quantitative inputs at various stages and
useful while chapter 2 introduces the various foresight settings. Part A discusses some examples in the
methods and procedures. Those interested in using chapters.
and implementing the methodology should read
chapter 3 and 4 that intend to show how foresights can
Objectives
be implemented and adapted to local needs. The annex
provides examples of implementation of foresights that This guide aims to provide countries which are starting
have been used in various country settings. to develop systems of skills needs anticipation with
information on different aspects and methodologies of
foresights, as well as ways to model and forecast skills
Skills forecasts: Part B
needs. The main purpose of the guide is to address
Quantitative skills forecasts offer a consistent and following key questions: why undertake skills
detailed picture of future developments by sector, foresighting and forecasting, what can be done and
occupation, qualification or skills. Models that provide how to proceed? It is not the intention to imply that
quantitative forecasts of future supply and demand on foresighting and quantitative skills forecasting must be
the labour market show – similar to foresight – how used together: in many cases only one of the two is
future outcomes can be generated to guide current used. However, elements of foresighting will normally
decision-making. This allows policy-makers to be included in the assumptions underlying quantitative
understand mid- to long-term developments and to models, and making quantitative models more explicit
react towards expected imbalances. through foresight techniques might improve their
forecasts. Further, foresights always benefit from many
Chapter 5 provides an overview over the use and
different inputs, as we will show below. Quantitative
usability of skills forecasting, the choice on duration
forecasts, if available, will always help to form better
and when to use quantitative forecasting. Chapters 6
foresight studies, as they provide a structured form of
to 9 provide detailed elements and methods to be
information that the outcomes of the foresight can
used. Some specific issues, such as the problem of
reflect upon.
technological change and qualification requirements,
the identification of imbalances, thoughts on indicators The overall aims of the guide are to help countries to
and issues of regional forecasting are discussed in develop such systems by providing useful, practical and
Chapter 10. Chapter 11 discusses some specific independent advice based on good practice from other
examples of skill forecasting. countries. It aims to support awareness and learning
process from the experience of many other countries
across the world (both developed and developing) that
Foresights versus quantitative skills forecasts
is useful for setting the vision, designing and
While foresights and quantitative skills forecasts have implementing a country’s own specific systems. It
similar goals in educating decision-makers and should serve as a reference and toolkit.
stakeholders about likely future outcomes and their
Experience of various individual countries makes clear
probable consequences, they differ in the way they are
that many different approaches to skills anticipation
implemented, their requirements in terms of input, and
have been applied across the world. It is obvious that
also in the types of output that they can generate.
there is no single, simple model that could be applied
Both qualitative and quantitative elements can be universally. The cases considered in this study suggest
mixed to develop a skills anticipation model or method that it is possible to draw out lessons from examples
that is suitable for a country’s or region’s purpose. of good practice as well as some methods that can be
Often missing elements of quantitative skills inspirational when adopting a particular approach in a
forecasting can be substituted for by using simplified country: the guide provides information on what works

Developing skills foresights, scenarios and forecasts 17

in a particular context. It is possible to extract the main
success factors common to most cases presented
here. Although some of the approaches and ideas
discussed come from a developed country’s
perspective, they are also well adaptable to specific
circumstances of developing countries on a case-by-
case basis.
The guide focuses on mid- to long-term (5 to 20 years)
skills foresight and forecasting approaches applied
either at national level covering the whole economy or
– in the case of foresight – also at sector level covering
primarily one or more sectors within the economy (see
annex). It aims to be a self-standing and self-
explanatory document. It is practice-focused with a
didactic step-by-step approach.

The reader
This guide is designed primarily for sponsors of skills
anticipation activities that can initiate or promote the
foresight processes and foster implementation of the
necessary structures. It also intends to advise a broader
range of stakeholders including policy-makers, education
and training providers, public employment services, social
partners, research and specialist organisations and other
stakeholders that may be involved in such activities.

18 Guide to anticipating and matching skills and jobs

 Part A:
Foresight
Chapter 1.
Foresight and skills

aimed at identifying opportunities and areas of

1.1.  What is a foresight?
vulnerability to assist present-day decision-making (1).
The term ‘foresight’ is nowadays widely used, The key element in foresight activities is that ‘they are
increasingly so over the last two decades. Even though action-oriented, in the sense that the final aim is to
foresight, mostly a qualitative approach, is quite often influence, shape and act upon the future. […] Foresight
confused with forecasting, extrapolating or planning, it processes and outputs should be oriented towards
does not have the same meaning. Foresight could be contributing to, facilitating or guiding the decision-
defined as a systematic, future intelligence-gathering making process’ (2). The chain of foresight activities is
and medium to long-term vision-building process shown in Figure 1.

Figure 1.  Foresight activity chain

Source: Authors based on Valenta (2012) and Conway (n.d.).

(1) JRC-IPTS, For-Learn online foresight guide: an A to Z of foresight http://forlearn.jrc.ec.europa.eu/guide/A1_key-terms/foresight.htm

­[accessed 24.6.2014].
(2) JRC-IPTS, For-Learn online foresight guide: action-oriented http://forlearn.jrc.ec.europa.eu/guide/A1_key-terms/action.htm [accessed
8.5.2014].

20 Guide to anticipating and matching skills and jobs

Forward-looking thinking is vital for policy planning to (c) developing capabilities throughout a region or
be able to meet future challenges proactively, including organisation, along with a ‘foresight culture’. The
the area of future skill needs. ‘Foresight enhances such aim here is for people with a variety of backgrounds
thinking by gathering anticipatory intelligence from a to be able to define and embark upon their own
wide range of knowledge sources in a systematic way foresight activities and create their own foresight
and linking it to today’s decision-making’ (3). networks;
Typical objectives of foresight exercises include one or (d) building strategic visions and creating a shared
more of the following: sense of commitment to implement the measures
associated with these visions among foresight
(a) informing policy-making so that decisions taken by
participants (4).
key actors in the commissioning body include more
awareness of longer-term developments and how Foresight is not a one-shot activity but a part of
these are liable to interact with current policy continuous evaluation. The results of every foresight
decisions. This can involve gathering intelligence on should be reflected in strategy and implemented in
possible longer-term developments and how these relevant areas. However, assessment and subsequent
may interact with the policy decisions made today, analysis should follow implementation of the strategy,
or providing alerts on major future risks and to ensure feedback and contribute to intended
opportunities. Often a foresight exercise will be development (Figure 2).
stimulated by the need to take a particular decision;
At first, most foresight initiatives focused on
(b) building networks that bring together people from technology and its social and economic impact.
different sectors and institutions involved in shaping New-generation foresights have dealt also with
the future of a particular topic: they are brought demographic change, health, social welfare, transport,
together to work on their visions and assessments energy, environment and climate change, community
of the future. The purpose of this is to help them development, culture, human resources, and skills
become better able collectively to understand the anticipation and education (5).
challenges and opportunities that they are liable to
confront, and the strategies and objectives that
others might pursue;

(3) JRC-IPTS, For-Learn online foresight guide: home http://forlearn.jrc.ec.europa.eu/guide/0_home/index.htm [accessed 8.5.2014].
(4) JRC-IPTS, For-Learn online foresight guide: why do foresight? Objectives http://forlearn.jrc.ec.europa.eu/guide/1_why-foresight/objectives.
htm [accessed 8.5.2014].
(5) JRC-IPTS, For-Learn online foresight guide: scoping an exercise: major decisions http://forlearn.jrc.ec.europa.eu/guide/3_scoping/dec_
scope.htm [accessed 8.5.2014].

Developing skills foresights, scenarios and forecasts 21

Figure 2.  Foresight as a part of continuous process

Source: Translated from Valenta (2012, p. 17).

1.2.  Skills anticipation in foresight activities In its relatively brief history as a formalised policy tool
(foresight started to evolve in the second half of the
The main rationale for skills anticipation is to help meet
20th century), foresight has gone through rapid
future skill needs by providing policy-makers and other
evolution and has been adapted to a diverse range of
actors with relevant information. Approaches to skills
policy domains. The generational model of the
anticipation are important for economic policy
evolution of foresight was developed to classify
decision-making. Ideally they are undertaken within a
increasing number of foresight activities (Table 1)
broader foresight approach with other elements of
(Miles et al., 2008). It is not meant to illustrate
technology and economic developments, where the
transitional development but all of the approaches
investment in education/training and the changes in
described coexist today and are used to address
structure and quality of jobs are viewed as part of the
different types of issues. Therefore, it is not possible
process. Various country cases considered here
to assign any time references to particular
illustrate, however, that many broader approaches have
generations of foresight; it is up to the foresight
resulted in less specific outcomes for skills policies
practitioner to select the appropriate approach given
while isolated skills anticipation activities tend to have
the nature of the issues to be addressed. The third
more limited success.
and fourth generation forms of foresight, with their
broad stakeholder involvement and their holistic
approach to policy issues, are ideally suited to
addressing skills issues.

22 Guide to anticipating and matching skills and jobs

Table 1.  Generations of foresight

First generation Second generation Third generation Fourth generation Fifth generation
Scope • Policy-makers • Policy-makers • Policy-makers • Organisation • Occurs within
• Subject area • Subject area • Subject area leaders specific
experts experts experts • Subject area organisations
• Industry • Industry experts • Organisation
• Society • Industry leadership
representatives • Society • Subject area
representatives experts
• Policy-makers • Industrial and
professionals
partners
Domain • Science and • Science and • Science and • Science, • Science,
technology technology technology technology and technology
• Social policy innovation and innovation
• Variable • Variable
configurations configurations
depending on depending on
participants participants
Inputs • Economic • Economic, • Economic, • Social and • Social and
and scientific social and social and scientific scientific
benefits of scientific scientific benefits of benefits of
technology benefits of benefits of technology technology
technology technology • Strategic plans • Strategic plans
• Potential • Potential • Dependent on • Dependent on
product product participants organisation
development development
• Markets • Markets
Outputs • Funding • Funding • Funding • Resource • Resource
priorities for priorities for priorities for allocation for allocation for
technological technological technological technological technological
development development development development development
• Public policy • Organisational • Organisational
• Education and strategies strategies
training needs • Public policy • Innovative
services and
products

Source: Georghiou et al. (2008) cited in Thayer (2012).

Developing skills foresights, scenarios and forecasts 23

Skills have been a feature of foresight from early days. 1.3.  Foresight story
Initially only higher qualifications were involved
As an example of the motives, policy challenges, and
because of the connections to public research and
the role of a skills foresight exercise, and its possible
development (R&D) and science and technology (S&T)
benefits, below is a fictional case study inspired by
policies. As the target of foresight has expanded to
up-to-date worldwide experience.
include a broader range of social policy concerns, all
levels and types of education have been addressed:
1.3.1.  Bellandia’s foresight programme
formal, non-formal, and informal. Since education is a
primary tool for structuring social futures, it is hard to Bellandia is a medium-size emerging economy. During
justify omitting from any large-scale foresight activity. the past five decades the country underwent rapid
However, the worldwide mapping of foresight activities industrialisation based on inward-looking strategy. It
carried out by international organisations such as the had a highly regulated planned economy at that time,
European Union (EU) suggests that skills are included with production intended mainly for its internal market
in few foresight programmes (16% of all foresight and, to lesser extent, for similar countries engaged in a
programmes in the world specifically addressed issues regional south-south cooperation. The economy was
relating to education) (European Commission, 2009). based on traditional sectors such as agriculture, natural
resource extraction or energy production, with a
Foresight might be a helpful tool for skills policy
growing share of construction, metallurgy and chemical
planning in times of rapid change. Its emphasis has
industry. Over the years heavy industry production
shifted from supporting top-down interventions aimed
became the main contributor to GDP. The industrial
at directly influencing skills produced to less direct
sector also became the main employer after the
influence of various stakeholders to make better
primary sector (agriculture, natural resource extraction).
informed decisions (employers, education and training
Education and training were developed to provide skills
institutions, students, workers). This has occurred in
that served industry needs. Given that there was little
countries with a more developed foresight culture
pressure on innovation, and that changes in industrial
(generally most developed countries). The various
production were slow, there was relatively stable
current approaches to foresight provide a powerful
demand for skills, and education and training could be
toolbox for foresight practitioners to find an ideal
easily adjusted.
method suitable for the issues to be addressed and the
outcomes anticipated. A shift from one-off foresights Due to internal political changes resulting from an
to regular exercises of envisioning future has occurred adverse economic situation and changes in the
in recent years. international environment (dissolution of the regional
cooperation bloc) in the early 1990s, Bellandia revised
A foresight exercise will lead to a number of
its development strategy and opted for closer
tangible and intangible outcomes, and can also bring
integration into world markets. Opening the economy
other benefits on various levels. However, foresight
exposed Bellandia to intensified global competition.
has its limitations and cannot be perceived as a
More liberalised markets for goods, services and
panacea.
investment helped to increase competitiveness and

24 Guide to anticipating and matching skills and jobs

productivity but also changed the traditional structure allow it to allocate sufficient national financial resources
of the economy. On the down side, the changes for the programme, so a grant was offered under
revealed some already latent social problems (large condition of shared financing, allowing the ministry to
informal sector) and triggered new ones. New launch the programme. Since there was little
challenges resulting from technological change, experience with such programmes, implementation
population growth and social innovation resulted in was assigned to the newly created Project
pressure for revision of public policies: industrial, Management Agency which had project
social, healthcare, education. The country has implementation for public authorities as its declared
experienced an unprecedented growing mission. The Ministry of Education, as the sponsor,
mismatch between industry needs for skills and those outlined the programme and instructed the Project
skills provided by education and training: this was Management Agency to start the feasibility phase.
identified by growing youth unemployment. The programme had to embrace all key sectors of the
Modernisation of the education and training system economy and their contribution to GDP and
was urgently needed. employment. Soon it was realised that the country
lacked adequate research capacities and expertise,
The government was aware of the fact that Bellandia
which required it to hire experts and consultants from
was in transition from industry to a service and
abroad. Further, there was little experience with
knowledge-based economy and the country was facing
participative social dialogue, weak institutions at
unprecedented challenges. Following consultation with
sectoral level, and weak cooperation among
several international institutions, the government
stakeholders. A quick survey among employers,
initiated development of a new national economic
however, revealed their willingness to participate in
strategy called Plan B, aiming to outline where
the programme. A data audit carried out by
Bellandia wished to be in the mid- to long-term. The
international experts showed there was an
debates between the Ministry of Economy, the
inadequate data infrastructure for applying quantitative
Ministry of Labour and the Ministry of Education
methods or building a skills forecasting model. After
ensured the skills mismatch issue was included on the
collecting available information on developing skills
agenda for the plan.
anticipation systems (including studying guides
Since it was recognised early that the education and published by international institutions and good
training system was unable to respond quickly to practice examples) and considering the local context,
changes in the labour market, the initial idea was to the programme focus shifted to foresight approaches
develop a tool that would help to anticipate what skills as the most adequate way of addressing the identified
will likely be demanded in future rather than just challenges.
recognise current skill needs. The Ministry of Education
The proposed foresight programme had to address two
was authorised to launch a skill anticipation
key questions: how new economic and social trends
programme. Economic conditions, however, did not
change the nature of working tasks and the demand for

Developing skills foresights, scenarios and forecasts 25

related skills; and what are the implications for education and training institutions, and public
education and training and other stakeholders. It was authorities including the sponsor. There were different
proposed to consider nine key growing sectors of the levels of involvement. Only the key stakeholders were
economy and their development in the mid- to represented in the steering committee of the
long-term (5-10 years). The Project Management programme but most were to be included in expert
Agency assessed and summarised the potential activities. All of them, including the general public,
benefits of the foresight programme for the were the target group for the dissemination activities.
stakeholders (the sponsor, the Ministry of Education, Soon it was realised that some groups of stakeholders
other relevant ministries, employers, education and were not appropriately represented. For example, the
training institutions, students) and prepared a feasibility SMEs that represent the bulk of employment
report for the sponsor. The Ministry of Education opportunities did not have corresponding associations
considered available resources and potential that could speak for them. The same was true where
benefits of the proposal and instructed the sectoral institutions did not exist at the time the
Project Management Agency to proceed with the programme was starting.
programme.
The methodology outlined in the feasibility phase was
The Project Management Agency started to set up the further developed and refined with the assistance and
organisational structures for the programme; it also consultation of international foresight experts. It
began to clarify the key programme design elements resulted in the definition of the best ways to find
such as a closer specification of objectives, outcomes, answers to key programme questions, with a stated
scope, time horizon and the expected duration of the method mix and parameters. Once all the programme
exercise. The objectives were adopted from the elements (objectives, outcomes) and the methodology
feasibility report. Outcomes were further specified to were clarified, they were combined into a coherent
be customised and delivered to the sponsor for design of the programme and became a basis for
strategic decision-making as well as for education and programme planning. The Project Management Agency
training institutions, sector employers, and the public engaged international experts and country’s top
(students, career advice). The outputs had to cover two researchers in these activities. Three phases were
time horizons: five and 10 years. The scope of the planned.
programme included the delivery of specified outputs
The first comprised collection, collation and summary
to stakeholders and their dissemination to the public
of available information. It started with meta-analysis of
but not the implementation of results, which was left
megatrends, international challenges and general
for stakeholders. The programme duration was
national environment, followed by general industry
estimated to be 14 months. Special attention was
analysis and a preliminary analysis of drivers of change
given to engagement of stakeholders. Six groups of
in a specified sector. The main methods used were
stakeholders were identified and classified based on
literature review and semi-structured expert interviews.
their potential interest and the likely impact of the
Collation and summary gave the information obtained a
programme on them: large employers, SMEs, research
structure and form and reduced its volume.
institutions, professional or sectoral associations,

26 Guide to anticipating and matching skills and jobs

The foresight phase comprised translation and Once the main activities had been completed, the
interpretation of the summarised information to foresight programme could deliver its results to
produce an understanding of its implications for the stakeholders, with outcomes customised for different
future. Given the national cultural background, the main stakeholder target groups. The future job maps
topic and programme objectives, and the nature of (including skill profiles) developed for nine sectors
possible methods, the Delphi method was chosen as it were delivered to stakeholders/employers in the
is evidence-based, allows spotting unexpected events, corresponding sectors. Recommendations for
and appropriate stakeholder engagement. The number curriculum changes were delivered to education and
of experts involved was estimated to be 200. The training institutions and the Ministry of Education.
phase was designed to produce a description of the Education and training providers (especially the private
main drivers of change for the sector, market ones) were interested mainly in outdated skills and
opportunities and threats, new core tasks likely to be new skill needs in the mid-term future while the
demanded in future, existing tasks that will be more in Ministry of Education was concerned with the
demand, tasks likely to disappear and future skills long-term overview for proposed curriculum reform.
(sector-related, cross-sectoral). The outputs also The general public, including students and career
included how skills can be formed (initial education, advisors, were delivered the top wanted future jobs
on-the-job training) and what can be done about it profiles. The dissemination of results was through
today. This phase resulted in understanding of what reports, public presentations (for professionals as well
can (or cannot) be done for the future. as the general public), media campaigns (press, TV,
radio, website-based tools), distribution of printed
The third phase included verification of foresight
materials (such as leaflets to schools, communities)
results in the steering committee, roundtables with
and even mobile phone applications.
decision-makers (sectoral and national level) and
surveys in stakeholder communities (mail- and The programme was effectively able to meet
website-based) for those not directly involved in stakeholder expectations. The Ministry of Education
previous activities. was able to use the long-term (10-year horizon) results
for the preparation of the curriculum reform,
Although the Project Management Agency employed
introducing more flexible ways of developing school
project managers with international experience in large
curricula. The programme also provided a significant
projects, managing the foresight programme was a
input (sectoral trend outputs) into the debate about
difficult task. Managing stakeholder expectations
developing the Plan B that could bring Bellandia closer
proved demanding because some presented
to a knowledge-based economy.
surprisingly diverging views, not identified before, in
the steering committee. For example, the sponsor The programme also had several immediate positive
expected very detailed results for strategic planning for side effects: it established networks with stakeholders
a limited budget, while employers were interested that can promote the creation of sectoral institutions, it
mainly in the immediate future. The debates about reviewed the data infrastructure for monitoring the
refocusing the programme delayed key activities that labour market and skills, and it improved the country’s
were also affected by unavailability of experts and by evaluation culture. The Project Management Agency
other unexpected events. gained considerable experience in managing the

Developing skills foresights, scenarios and forecasts 27

foresight programme. Now government structures can
benefit from this experience when considering similar
programmes; for example, the Ministry of Education is
considering a foresight programme to identify research
priorities.
The programme can yield more benefits in the long
term. Follow-up activities are necessary to take full
advantage of the foresight programme outcomes. The
Ministry of Education had already announced its
intention to monitor the impact of the foresight
programme (changes in curricula against development
of skills gaps). Using the results requires further
investment: financial resources are necessary to
reform education and training; for training teachers; and
to introduce new curricula or teaching methods. It also
requires true willingness to cooperate from other
stakeholders. The main contribution of the foresight
programme is in making available the information that
can guide today’s stakeholder decisions and lead to a
desirable future.

28 Guide to anticipating and matching skills and jobs

Chapter 2.
Comparative review of foresight and scenario methods

In this section we provide a detailed description and several categories: exploratory and normative methods
typology of foresight methods and approaches of and supplementary methods. The latter include
foresight application. The emphasis is on explaining techniques which are not directly considered as
how these methods are used, what the features are, foresight methods, but in some way support them in
and what are the pros and cons of using particular achieving their goal. This category comprises SWOT
methods. Most frequently used methods are analysis, literature and statistics review, focus groups,
accompanied with an example from a selected country. and brainstorming.
Choosing an adequate method is critical, though choice
often appears to be based on what is fashionable or 2.1.1.  Exploratory methods
which method practitioners are familiar with (UNIDO,
Exploratory methods start from the present with
2009). Therefore it is necessary to be able to
an attempt to see where events and trends might take
distinguish among particular methods, determine
us by exploring ‘what if?’ scenarios (6). This means that
which is appropriate to use, and decide how this
‘exploratory methods start […] with the pre-conditions,
method should be applied. No one particular
beliefs and social or technological possibilities which
method can be the solution for all problems; usually
already exist’ (Magnus, 2012). Among typical
a combination of methods has to be applied and the
techniques in this category are the Delphi method,
context of a particular country must be considered:
scenarios or cross impact analyses.
one size does not fit all. Different problems and
contexts require different configurations of foresight
2.1.2.  Normative methods
approaches. It is necessary to be familiar with foresight
methods, but more important is to know the specifics Normative methods start with a vision of a possible
and economic, institutional and social background or desirable future and work backwards to see if and
of particular countries. This means that evaluation how this future might be achieved, or avoided, given
of foresight efforts is not just a matter of examining the existing constraints (skills, resources, technologies,
the efficiency of the activities but must also consider institutions). Backcasting or morphological analyses
their effectiveness in promoting change to meet the are representative of this category.
challenges confronting us.
Limited available evidence on which of these approaches
is better and under which conditions suggests that
2.1.  Categories of foresight methods normative methods are more effective where a widely
shared vision already exists, and where foresight can
Foresight exercises offer many ways to gather
then develop a strategy for how to achieve it; where no
information regarding possible future outcomes.
consensus on the vision has yet been achieved,
Dependent on the aim and nature of the results
exploratory methods may be more useful (7).
aspired, foresight methodology can be split up into

(6) JRC-IPTS, For-Learn online foresight guide: methodology: exploratory versus normative methods http://forlearn.jrc.ec.europa.eu/guide/4_
methodology/meth_explo-norma.htm [accessed 8.5.2014].
(7) JRC-IPTS, For-Learn online foresight guide: methodology: exploratory versus normative methods http://forlearn.jrc.ec.europa.eu/guide/4_
methodology/meth_explo-norma.htm [accessed 8.5.2014].

Developing skills foresights, scenarios and forecasts 29

Figure 3.  Scheme of exploratory methods

Source: Authors, based on the For-Learn online foresight guide: exploratory versus normative methods.
http://forlearn.jrc.ec.europa.eu/guide/4_methodology/meth_explo-norma.htm [accessed 8.5.2014]

Figure 4.  Scheme of exploratory methods

Source: Authors, based on the JRC-IPTS, For-Learn online foresight guide: exploratory versus normative
methods. http://forlearn.jrc.ec.europa.eu/guide/4_methodology/meth_explo-norma.htm [accessed
8.5.2014].

30 Guide to anticipating and matching skills and jobs

2.1.3.  Other types of categories The current trend in foresight is to apply a mixture
of different approaches; it is broadly accepted that
Another way to classify methods is by considering
foresight activities cannot be completely dominated
their ability to gather or process information based
by purely quantitative methods and their results.
on evidence, expertise, interaction or creativity. These
Quantitative approaches often apply qualitative
attributes are the building blocks of the foresight
elements and qualitative approaches discuss and
diamond (Popper, 2008). The foresight diamond
provide insight to the meaning of the numbers which
(Figure 5) does not imply the combinations of methods
are results of quantitative methods (see also Part B
mentioned, but shows which attributes prevail in
on quantitative methods and models).
a particular method. The foresight diamond describes
methods from the perspective of how they are created Qualitative methods are often employed where the
and developed and which attributes are determinants key trends or developments are hard to capture using
of a particular method applied. For example, creating simplified indicators, or where such data are not
scenarios is considered as a creative activity; therefore available. These methods ‘are often used to provide
it is close to the peak ‘creativity’ at the foresight meaning to developments and observations. Such
diamond, even though the inputs are mostly ‘evidence’- interpretations tend to be based on particular views,
based. The foresight diamond acknowledges the core beliefs and knowledge which may be difficult to
activity when processing the method, not inputs nor corroborate since methods provide a lot of room for
outputs of a particular method. creative and subjective thinking’ (European Commission,
2009, p. 72).
The closer the method to a peak of the diamond,
the more it is affected by a particular attribute. Some ‘The second category comprises semi-quantitative
methods can be considered as mostly evidence-based, methods, applying mathematical principles to quantify
such as literature and statistics reviews, whereas some the opinions of experts’ (European Commission,
are mostly focused on creativity, as with scenarios. 2009, p. 72). This approach combines both qualitative
In the middle of the diamond are methods whose and quantitative methods and allows presentation of
results are created as a mixture of other attributes. numerical outputs from someone’s opinions or views.
Particular attributes overlap and combine in different This type of ‘translation’ of qualitative views and
proportions in each method. inputs also allows the use and mix of qualitative
inputs into quantitative models (see here especially
Foresight methods can also be categorised as
Section 8.4).
qualitative, semi-quantitative and quantitative methods.

Developing skills foresights, scenarios and forecasts 31

Figure 5.  Foresight diamond

Source: Adapted from Popper (2008).

These methods ‘are often used to monitor measurable (European Commission, 2009, p. 72). Quantitative
variables and apply statistical techniques to process skills forecasting, as described in Part B, is an example
and analyse the often called ‘hard data’ or indicators’ of these quantitative models.

32 Guide to anticipating and matching skills and jobs

2.2.  Foresight methods methods are divided into three categories:
supplementary methods, exploratory methods and
There are many foresight techniques which researchers
normative methods.
may choose and combine; this section describes a few
in more detail. As identified in the case studies
2.2.1.  Supplementary methods
(see annex) the methods used most often in skills
2.2.1.1.  Literature and statistics review
anticipation are Delphi method, expert panel,
scenarios, literature and statistics review, When starting to think about the future, we need
brainstorming and SWOT analyses. Other methods to achieve an understanding of the past and the
described in this section may be also suitable for skills present. One of the methods most used for this
anticipation in some country contexts but their use is is a literature and statistics review, which is usually
not so common. done at the start of a foresight project. This ‘is not
a foresight method as such, but rather an essential
According to research undertaken by the European
background activity or a first step in any foresight
foresight monitoring network (European Commission,
exercise’ (8). A literature and statistics review is part
2009), the methods mentioned above are also those
of the process rather than stand-alone method but
that are mostly used in foresight activities, though not
it is a key process which involves observation,
only for anticipating skill needs. The survey revealed
examination, monitoring and systematic description
that in the more established democracies of Europe
of the technological, sociocultural, political,
and North America, stakeholders prefer face-to-face
ecological and economic contexts (Georghiou et al.,
forums, thus they prefer methods such as expert
2008). Through such a review, knowledge can
panel and scenarios. By contrast, in new democracies
be accumulated and raw data converted into
and in Japan, more anonymous methods, such as the
information. It aims at broad exploration of all major
Delphi method, are often used (European
trends, issues, advances, events and ideas across
Commission, 2009, p. 39). Experience of different
a wide range of activities. It is often based on desk
countries make clear that many approaches to skills
research and involves a wide variety of sources,
anticipation have been applied across the world; there
such as newspapers, magazines, Internet, television,
is no single, simple model that could be applied
conferences, and reports. Sometimes it can prevent
universally. Any single method is not usually used by
us from ‘reinventing the wheel’, because we have
itself but is complemented or supported by other
an opportunity to learn from and build on what
methods or used in foresight ‘packages’. To achieve
others have done, as with the literature and statistics
desired outputs, combinations of methods have to be
review used within the SENAI model in Brazil
applied, where the output of one method serves as
(Box 1). (More information about SENAI, the National
input for another. Emphasis in this section is on
Service for Industrial Apprenticeship can be found
describing most frequent methods used in foresight
in the annex).
of skill needs and their features and specifics. These

(8) EFP, For Learn: methods: analysis: environmental scanning http://www.foresight-platform.eu/community/forlearn/how-to-do-foresight/meth-

ods/analysis/environmental-scanning/ [accessed 25.6.2014].

Developing skills foresights, scenarios and forecasts 33

Box 1.  Literature review: example of Brazil

Within the SENAI foresight model in Brazil, identification of new professions and roles emerging in other countries
signals possible changes in the labour market. It identifies and learns from the occupation structures of other
countries to anticipate which setting may be more likely to emerge in Brazil. This drives appropriate education and
training responses. The methodology is based on research of secondary data sources covering general and sector
and/or occupation studies conducted in other countries and involves three stages:
1. literature review to identify sector general and/or occupation studies conducted in selected countries.
Australia, Canada, New Zealand, the UK and the US are used because they produce studies on occupation
change and their occupational classifications are compatible with the international standard classification
of occupations (ISCO) and the Brazilian classification of occupations (CBO);
2. comparison with existing occupations in the CBO for the sectors studied. This comparison considers work
tasks in each occupation, as described in CBO, and work activities of occupations described in studies
from other countries. The comparison classifies identified occupations as emerging, evolving or stable.
The definition of the US Bureau of Labour Statistics was adopted for the concept of emerging and evolving
occupations. Emerging occupations include tasks, skills and knowledge that are completely new; they may
not be present in existing classifications. The tasks in evolving occupations include changes which may involve
expanding or reducing tasks. Stable occupations are those that do not display changes;
3. detailed description of emerging, evolving and stable occupations that contains a set of aspects related to job
content, skills and other requirements for performing these occupations. Secondary data sources provide
reasons and/or hypotheses for classification of these occupations.

Source:  Cruz Caruso and Bastos Tigre (2004).

A literature and statistics review should be a part other methods such as scenarios and backcasting.
of foresight exercise as a first step to obtain broad Literature and statistics reviews have limitations
understanding. It must be then complemented with (Table 2).

34 Guide to anticipating and matching skills and jobs

Table 2.  Pros and cons of literature and statistics reviews

Advantages Disadvantages
• provides an understanding of existing knowledge • requires time and research skills
• can reveal major trends, issues or weak signals • must be complemented by other methods
• method is desktop-based and so not too expensive • could be underestimated and some signals may
be missed
• very limited possibility to bring new issues,
new perspectives

2.2.1.2.  SWOT analysis and external (opportunities and threats) factors

that may shape the reality (now or in the future).
SWOT (strengths, weaknesses opportunities and
It can be used to develop a vision for a country/
threats) analysis is not a foresight approach per se but
region/sector taking into account its strengths/
can be used to provide inputs in foresight activities.
weaknesses and opportunities/threats; or it can be
It is not usually used by itself but is complemented
used once the vision is already available to develop
by other foresight techniques, such as scenarios,
an institutional or business strategy for how to
Delphi surveys or expert panels. SWOT analysis can
achieve the vision, taking into account strengths/
be used in tandem with brainstorming.
weaknesses and opportunities/threats of institutions
SWOT analysis is an analytical tool which helps or businesses.
to identify main internal (strengths and weaknesses)

Developing skills foresights, scenarios and forecasts 35

Figure 6.  SWOT matrix

Strengths Weakness
What are your advantages? What could you improve?
What do you do well? What do you do badly?
What relevant resources do you have access to? What should you avoid?
What do the others see as your strengths?

What obstacles do you face?

What is your competition doing?
Where are the good opportunities in front of you? Is changing technology threatening your position?
What are the interesting trends you are aware of? Do you have debt or cash flow problem?

Opportunities Threats

Source: Adapted from JRC-IPTS, For-Learn online foresight guide: methodology: main methods: SWOT analysis
http://forlearn.jrc.ec.europa.eu/guide/4_methodology/meth_swot-analysis.htm [accessed 12.5.2014].

SWOT analysis is often presented as a 2 x 2 matrix, A SWOT analysis is based on facts or expert opinions.
summarising significant internal and external factors The SWOT matrices help assess probability and
influencing strategies or possible futures. A set of impact of factors where a scoring system can
questions needs to be answered in every particular be used to provide a hierarchy of importance of
quadrant to create such a matrix. It is usually prepared factors. Factors that score high on both probability
by an expert team using variety of data sources and impact require special attention in strategy
(UNIDO, 2009). formulation (9).

(9) JRC-IPTS, For-Learn online foresight guide: methodology: main methods: SWOT analysis http://forlearn.jrc.ec.europa.eu/guide/4_methodol-
ogy/meth_swot-analysis.htm [accessed 12.5.2014].

36 Guide to anticipating and matching skills and jobs

Table 3.  Pros and cons of SWOT analysis

Advantages Disadvantages
• simplicity and flexibility • inadequate definition of factors
• looking at the problem from a different perspective • oversubjectivity in generation of factors
• opportunities can be exploited • no suggestions for solving disagreements
• possibility to overcome weaknesses

Source: JRC-IPTS, For-Learn online foresight guide: methodology: main methods: SWOT analysis.
http://forlearn.jrc.ec.europa.eu/guide/4_methodology/meth_swot-analysis.htm [accessed 12.5.2014].

2.2.1.3. Brainstorming (b) all opinions are equal. All participants should feel
free to present their ideas, regardless of their
Brainstorming belongs among creative methods
status or position in the social hierarchy. Nothing
and is often used at early stages of foresight
is considered as undesirable;
activities, usually prior to scenario building or within
SWOT analysis. Brainstorming as a method (c) quantity exceeds quality. Generating as many
encourages group thinking and supports generation solutions as possible to tackle defined problems
of ideas. By encouraging individuals to discuss their is the required output of this technique;
own ideas, brainstorming is a powerful tool which
(d) evaluation after discussion. To prevent a distortion
may help to increase group’s ownership of the
or prioritisation of some ideas, evaluation should
result, prevent conflict and achieve consensus.
be done after the brainstorming. It is recommended
Brainstorming has to follow, if it is to be done
to wait a couple of days for this (Potůček, 2006).
correctly, basic principles:
Effective brainstorming sessions involve 7 to 12
(a) no criticism and judgments. To encourage creativity
participants. There are examples of using brainstorming
and improve value of ideas, all ideas are presented
in the latter phases of a foresight process, as is shown
and accepted without any negative comment
by the example in Box 2.
or negative evaluation;

Developing skills foresights, scenarios and forecasts 37

Box 2.  Brainstorming: US example

Brainstorming is often used in the initial phases of foresight projects to gather a wide pool of ideas to identify
main future trends and/or key issues that should be in the scope of the further research in the next stages.
It may be also used as a means of assessing and interpreting the results in a later stage of the process. This is
how it was used by the Institute for the Future (IFTF) based in the US during their Future work skills 2020 project.
After the pieces of intelligence were gathered while drawing on IFTF’s previous foresight exercises and their
‘signals methodology’, a group of experts was brought together to participate in the brainstorming exercise.
They were experts from various fields and with diverse professional backgrounds. Their task during brainstorming
sessions was to identify key drivers of change and how these will shape future skill requirements. In the next
step, the outcomes were further analysed and filtered and the final six key drivers and 10 skills areas for the next
decade were determined.

Source:  IFTF (2011).

This example is an exception, because brainstorming of brainstorming are not used separately, but are
is usually used before the foresight process, part of the assessment process (10).
for example prior to scenario analysis. The results

Table 4.  Pros and cons of brainstorming

Advantages Disadvantages
• brings new ideas how to tackle a particular problem • importance of moderator is often underestimated
• free thinking encourages creativity • sometimes ideas produced are unworkable
• problems can be defined better as new questions • criticism often appears and ‘kills’ creative ideas
arise
• brainstorming helps to reduce conflicts

Source:  Adapted from JRC-IPTS, For-Learn online foresight guide: methodology: main methods: brainstorming.
http://forlearn.jrc.ec.europa.eu/guide/4_methodology/meth_crea_brainstorming.htm [accessed
12.5.2014].
2.2.1.4.  Focus group generate ideas, whereas a focus group concentrates
on improving, validating or complementing existing
A focus group supports generation of ideas and
ideas. Participants in a focus group are encouraged not
encourages group thinking. ‘A Focus group is a form
only to express their own opinions, but also respond to
of qualitative research in which a group of people are
other members and questions posted by the facilitator (12).
asked about their perceptions, opinions, beliefs, and
Brainstorming must have ground rules, whereas
attitudes towards’ (11) issues of interest. The main
a focus group is more open-ended, though both
distinction between brainstorming and a focus group
methods bring together people in an effort to gain
is that the purpose of brainstorming is mainly to
their ideas and opinions.

(10) JRC-IPTS, For-Learn online foresight guide: methodology: main methods: brainstorming. http://forlearn.jrc.ec.europa.eu/guide/4_methodolo-
gy/meth_crea_brainstorming.htm [accessed 12.5.2014].
(11) Wikipedia, http://www.cse.lehigh.edu/~glennb/mm/FocusGroups.htm [accessed 25.6.2014]
(12) Focus groups or similar techniques are also often used in the context of quantitative forecast. In evaluating and discussing detailed results
with key stakeholders in a focus group setting, the necessary qualitative background and feedback can be generated that helps to improve
quantitative models (see also Section 2.2 on foresight methods).

38 Guide to anticipating and matching skills and jobs

For a focus group, it is necessary to put emphasis on: The focus group session should be well organised;
all equipment and materials should be prepared and
(a) defining the purpose: this should be clear and
time should not be exceeded. The meeting should
specific to avoid being too broad and general.
be summarised, the summary analysed and the final
The objectives of a focus group are either validating
report should be created. Careful and systematic
or clarifying findings or filling information gaps;
analyses of the discussions provide information on
(b) establishing a timeline. It is necessary to identify how the discussed issue is perceived by the group
the participants, develop questions, locate a site, and perhaps what could be done better or improved.
gather materials for the session; The advantages and disadvantages of focus groups
and brainstorming are the same.
(c) identifying participants. First, it should be
determined how many participants are needed
2.2.2.  Exploratory methods
(usually 6-12, it is better to keep the number of
2.2.2.1.  Expert panel
participants low) and who will be suitable ones.
Participants may be all from one field or it could Expert panels are widely used in skills foresights
be a combination of different types of stakeholders. to stimulate sharing knowledge and ideas among
Identifying participants should be carefully planned experts. Panels usually consist of about 10-20
to create a non-threatening environment; experts but may involve many more if the discussion
is well structured and occurs in fairly small groups.
(d) generating the questions. The focus group may last
Panels are useful platforms for generating and
from one hour to one day but usually does not take
debating ideas on the future, gathering and
more than a couple of hours; therefore emphasis
validating information, and formulating priorities
should be put on a limited number of principal
and actions.
questions. Questions should be open-ended and
move from the general to the specific. Sometimes The key element in this method ‘is to develop
it is appropriate to send relevant materials or even a profile of the panel, i.e. to identify the sorts
distribute the questions to participants in advance, of expertise and/or stakeholders that should
so they have time to get familiar with the topic and be represented in light of the panel’s remit.
all issues. The composition of expert panels should serve
its objectives: a good mix of knowledge, views,
(e) selecting the facilitator: this is an essential role.
institutional representation, political roles, values
The facilitator should keep the discussion on the
and disciplines is required to achieve useful and
track and make sure every participant is heard.
balanced outcomes.

Developing skills foresights, scenarios and forecasts 39

Panel composition is of the utmost importance consultants, or even panel members, often
because, to achieve an outcome which would be precedes the panel discussion (13).
perceived to be reliable and legitimate, experts
Typically experts meet face-to-face at regular intervals
on the panel have to be technically valued and
over a specified time. However, as a variation there is no
politically recognised. Reliable and legitimate
need to meet face-to-face and some panels never meet
outcomes and panel recommendations for the
at all: interaction may occur online, and the number of
future are built on factual analyses of the past and
panel members does not need to be limited (14).
present with reasonable confidence of accuracy.
This is why research and data analysis, carried out An example of expert panel in practice is described
by members of the project team, external in Box 3.

Box 3.  Expert panel: example of Germany

During the Federal Ministry of Education and Research (BMBF) foresight process a sequence of expert panels
is used to identify new future research and technology fields. This helps to specify and refine topics of interest
and innovation. The cooperation with experts is based on face-to-face workshops, alternating with online
surveys which lead to step-by-step reclustering of topics.
The cooperation with experts includes three tools:
• cooperation with a closer group of experts through workshops and interviews;
• a broad online survey of experts to provide a differentiated evaluation of relevance and the need for action
(2 659 valid responses);
• using the specific tool inventor scouting (targeted surveying of young researchers).
The default base is created by nominated topic coordinators who prepare detailed maps of the developments
expected over the next 10 to 20 years in 14 of the research fields drawn from the German high-tech strategy.

The goals of the expert panel are to reach consensus implemented. Ideally, a clear plan with accountability
on key issues or to identify priorities and to come up of organisations for the implementation of actions
with the specific suggestions on how these can be is part of the panel ‘political’ objectives.

(13) JRC-IPTS, For-Learn online foresight guide: methodology: main methods: expert panel. http://forlearn.jrc.ec.europa.eu/guide/4_methodolo-
gy/meth_expert-panel.htm [accessed 12.5.2014].
(14) Idem.

40 Guide to anticipating and matching skills and jobs

Table 5.  Pros and cons of brainstorming

Advantages Disadvantages
• wide perspective on issues • experts can be wrong and miss weak signals
• fast feedback • a different group of experts may offer different
• convergent and divergent thinking advice
• good for evidence building • dominating personality can take over panel process
• encourages active engagement

Active engagement of experts is a clear value of this Delphi analysis comprises several activities, where
method. Specific forms of the interaction are mostly one activity is followed by another to achieve a
driven by complementary methods, such as desired goal. All activities to be performed are shown
brainstorming, scenarios or SWOT analyses. in Figure 7.
Delphi is an expert survey implemented in two or more
2.2.2.2.  Delphi method rounds where in the second and later rounds of the
survey, the results of the previous round are provided
Delphi is another widely used exploratory technique
as feedback (Cuhls, n.d.). ‘Therefore, the experts
with the aim to structure group thinking and
answer from the second round on under the influence
communication to reflect on complex issues. ‘It is
of their colleagues’ opinions, and this is what
particularly used by experts in a series of iterative
differentiates Delphi from ordinary opinion surveys.
learning rounds. Delphi first establishes the group’s
The idea is that the respondents can learn from the
initial view, presents instant feedback on differing
views of others, without being unduly influenced by
opinions, and seeks an agreed position in the final
the people who talk loudest at meetings, or who have
round. Contributors to the group analysis do not have
most prestige, etc. Ideally, significant [… opponents]
to meet in person and can see the results as they, and
from a developing consensus would be required to
their colleagues, add their views in real time. At the
explain their reasons for their views, and this would
beginning, the organiser formulates questions about
serve as useful intelligence for others’ (15).
the future and presents these to the contributors.
Contributors respond by adding their rankings and The method is particularly useful for assessing the
comments. The organisers then modify the anonymous distant future (up to 30 years). The Delphi survey is
comments received to formulate better questions. The a qualitative tool and is not meant to be representative (16),
process is run again, in a series of rounds, until a so the sample typically includes a limited number of
consensus answer is arrived at’ (Jackson, 2013, Section respondents. The restricted quantity, however,
3.7). The Delphi method can be defined as a relatively is compensated by quality of respondents whose
strongly structured expert group communication knowledge and opinions are important, either because
process on the topic, where there is incomplete of their political status (when they represent important
knowledge (Häder and Häder, 1995). policy institutions or membership organisations) or
because of their recognised expertise in the subject.

(15) JRC-IPTS, For-Learn online foresight guide: methodology: main methods: Delphi survey http://forlearn.jrc.ec.europa.eu/guide/2_scoping/
meth_delphi.htm [accessed 12.5.2014].
(16) Readers interested in methodology of representative surveys can consult Volumes 5 and 6 aimed on development establishment surveys
and tracer studies.

Developing skills foresights, scenarios and forecasts 41

Figure 7.  Activities employed in Delphi analysis

Source: Adapted from Potůček (2006).

Delphi is useful ‘where there is no empirical knowledge to a single statement and makes it
database, where external factors are likely to have possible to judge. On the other hand, in more
a determining effect and where social arguments complex issues, when the themes cannot be
may dominate economic or technical considerations. reduced that much or when thinking about and
As it implies identifying topics that are relevant for discussing alternatives are the major target,
the future, it reduces the tacit and complex Delphi is not the method of choice’ (17).

(17) JRC-IPTS, For-Learn online foresight guide: methodology: main methods: Delphi survey http://forlearn.jrc.ec.europa.eu/guide/2_scoping/
meth_delphi.htm [accessed 12.5.2014].

42 Guide to anticipating and matching skills and jobs

Table 6.  Pros and cons of Delphi analysis

Advantages Disadvantages
• a possibility to avoid large group gatherings • time-consuming process
• virtual participation • labour-intensive
• handles single or multiple questions • participant expertise may reduce results
• brings together large number of experts and thus • team leaders can bias the results
different opinions

The Delphi method is usually complemented or statistics review can also be added (18). A detailed
supported by brainstorming or scenario development in description of using Delphi in Japan for technology
the preparatory phase to define principal statements. foresight is described in Box 4.
Data from desk-based studies such as a literature and

Box 4.  Delphi survey: example of Japan

Japan is known as a pioneering country in science and technology (S&T) foresight. Since the early 1970s such
surveys were implemented by means of the extensive Delphi survey and only since the eighth S&T foresight
(2003-04) has the Delphi been accompanied also by other methods. In 2009 the ninth S&T foresight was
conducted by the National Institute of Science and Technology Policy (NISTEP), an organisation affiliated with the
Ministry of Education, Culture, Sports, Science and Technology (MEXT). The whole foresight exercise ‘employed
a combination of Delphi survey, based on interdisciplinary considerations with future targets in mind, scenario
method using several techniques, and region-based discussions (NISTEP, 2010, p. 1). In the Delphi survey, for the
first time an attempt was made to outline possible future developments in major areas that were defined
irrespective of existing S&T disciplines. The leading question was set as ‘what we should do from now on’ to
reach future goals and resolve the global and national challenges. The main stages of the Delphi survey were the
following:
1. four preliminary panels were organised, defined by broad themes: security, safety, international collaboration,
and international competitiveness. Experts (from humanities and social sciences, plus natural sciences)
discussed future targets that can be attained with the contribution of S&T, and the main global and national
challenges. Through the extensive discussions, 24 critical issues were identified;
2. a total of 12 interdisciplinary panels were established to determine relevant future issues irrespective of the
existing scientific disciplines. The panels consisted of 135 experts in the humanities, social sciences and
natural sciences (from universities, industrial sectors, and research organisations). During their discussions
the main topics and areas for the survey emerged. The topic covered elements of, for example, future science,
technology, and social systems while the area represented a group of interrelated topics.

(18) Idem.

Developing skills foresights, scenarios and forecasts 43

 Through the discussions, the primary focus was on the sciences and technologies that can contribute to
resolving the global and national challenges. The relationship of the topics and areas with the critical issues
was also taken into consideration. The names of disciplines or technological fields were intentionally left out
of the panel designations. The scope and central theme of the discussion was determined by each panel.
A general framework for subsequent discussions was considered. It was pointed out that the paths through
which future science and technology will be assimilated into society are of great importance. Therefore it was
necessary to bear in mind the following aspects: systematic research and development involving the
interrelated areas of S&T; a point of view that grasps multiple and interrelated areas of S&T as a unified
system; research of the methodology for implementation in a society; and an understanding of the social
system as an inseparable part of S&T.

Relationship with 12 interdisciplinary panels and four object-specific panels

Cross-cutting discussion on science and

technology
Interdisciplinary discussion involving humanity

Discussion by the members from various disciplines

No. 1 No. 2 -------- No. 12

Object – specific discussion

and social science member

Security

Safety

(International)
collaboration

(International)
competition

3. two rounds of the extensive questionnaire survey were conducted among experts who offered responses
on the future perspective of the topics (832 in total) from the viewpoint of a time span of 30 years until 2040
(focusing on 2025). In the first round, additional questions were designed by each panel about Japan’s
desirable approach to resolving global and national challenges. By the end of the second round, 2 900
responses had been gathered.
4. analyses of the final results from the second round were carried out.
The Delphi survey fed into the multi-methodology ninth S&T foresight that serves as major recent source
of comprehensive intelligence on what areas the future policies should focus. The project outcomes showed
that a mission-oriented and interdisciplinary approach is effective for finding out the direction of innovation.
Interdisciplinary approach and system thinking, that includes not only technical systems but also social systems
and provision of services, is necessary for grasping the futures and embedding technologies in real society, with
human resources as one of the key accompanying areas. The results have been used to create a draft of the S&T
basic plan of the government and they are also being considered in the process of developing the R&D plans in
individual organisations.

Source: NISTEP (2010, pp. 1-4).

44 Guide to anticipating and matching skills and jobs

2.2.2.3.  Horizon scanning explore the impacts of these changes in terms of what
skills will be required in the future.
Horizon scanning is both a name given to broad
processes of future thinking and also a specific Horizon scanning is a structured evidence-gathering
foresight or future tool. As a tool it ‘is a technique process based on desk research and expert opinions.
[designed] to detect early signs of potentially important It engages experts who are at the cutting edge of their
developments through a systematic examination of areas of specialisation and makes them look ahead
potential threats and opportunities’ (19). One of the beyond usual timescales and settings. Horizon
definitions of horizon scanning characterises this scanning is a form of collective thinking but, unlike
method as a systematic examination of opportunities the Delphi method, diversity in insights of the group is
and likely future developments which are at the encouraged. The method works well with a large group
margins of current thinking and planning: ‘it explores of participants (at least 20). The insights discovered
novel and unexpected issues, as well as persistent can provide the basis for decision-making and for
problems and trends’ (20). Potential changes are usually programme development. Horizon scanning has been
identified over a long timescale and it is possible to used in the UK for identifying trends (Box 5).

Box 5.  Horizon scanning: example of the UK

The UK Commission for Employment and Skills carried out the National Strategic Skills Audit for England (UKCES,
2010) with an aim to provide valuable insights into country’s strategic skills needs. Within this project, a ‘horizon
scanning and scenario’ foresight exercise was commissioned to assess the future drivers, challenges and
opportunities for UK skills. The St Andrews Management Institute carried out the exercise and produced the
report that was one of the key information sources for the National Strategic Skills Audit. Horizon scanning was
one of the core methods used, divided into two stages:
1. general scanning.
The purpose of the horizon scanning was to identify the trends and drivers that may potentially affect the UK’s
long-term employment and skills landscape and future skills needs. A variety of published information sources
was scanned to identify global and national key factors of future development. The factors were drawn
basically from the four ‘PEST’ areas (political, economic, social and technological factors) but also included
legal, regulatory and environmental factors. It considered not only issues with a potential of an impact up to
the project’s horizon of 2020, but also beyond (over the next 25 years), to stretch the thinking about the future.
This extended time horizon could also provide useful material for eventual further development of the time
lines of the scenarios that were drafted in the other methodology step of the project.
The general scanning phase identified 101 trends. The raw information extracted during this activity, together
with the associated sources, was gathered in a separate ‘clippings file’. It has been made available to the
client, but not distributed publicly with the final report as it was covered by the copyright;

(19) OECD, Overview of methodologies: horizon scanning. http://www.oecd.org/site/schoolingfortomorrowknowledgebase/futuresthinking/over-

viewofmethodologies.htm [accessed 25.6.2014].
(20) Idem.

Developing skills foresights, scenarios and forecasts 45

 2. prioritisation.
In the second step, a project team workshop was held to review the 101 trends. The trends were sorted
according to the probability – that they would be important to the world in general and impact the UK skills
landscape – and grouped into interrelated clusters. A four quadrant chart was created, based on these two
dimensions.
The trends with low estimated relative importance for the world and with low impact for the UK skills at the
same time (bottom left quadrant) were excluded from further analysis. This resulted in 23 trends and drivers
identified as likely to be the most influential factors of future development. These trends were further analysed
in the next stages of the project with the help of scenario methodology.

Prioritisation of the drivers

Increasing impact on the UK skills landscape

Economic growth in the UK

Infrastructure and networks Knowledge economy
Rise of China Cost and availability of capital
Resource shortages New technologies
Devolution, EU and trade liberalisation Death of distance in working practices
Security concerns Migration
Generation Y
Increasing importance on the world

Reducing carbon emissions

Regulation
The future of education
New jobs and new industries
Existing industry

Meeting growing consumer expectations

Advances in social science New ways of working
Improving the workplace Delivery of training online
Declining civic values Design and media
Outer space Ageing workforce in the UK
Promises Government interventions to 2020

Source: Duckworth et al., 2010.

46 Guide to anticipating and matching skills and jobs

As can be seen in Box 5, outputs of horizon scanning or linked with other methods such as a scenario
are further filtered and refined and often are fed into development or the Delphi method.

Table 7.  Pros and cons of horizon scanning

Advantages Disadvantages
• identifying future challenges and trends • outputs must be fed into other methods to gain
• drawing insights from participants reasonable results
• reviewing a broad spectrum of information, beyond • requires time and research skills
usual timescale and sources • there is always possibility to miss some weak signals

2.2.2.4. Scenarios plausible views of the future that decision-makers can

use to determine their best response and how to react
‘Scenario planning is one of the most well-known and
to alternative plays. Scenarios are qualitatively distinct
most cited as a useful technique for thinking about the
visions, told as stories, of how the future looks. They
future’ (Jackson, 2013, Section 3.20). ‘In foresight
make explicit the assumptions of how the world works’
projects, the scenario method is a policy analysis
(Jackson, 2013, Section 3.20).
tool that helps to describe a possible set of future
conditions’ (21). The scenario method is also often used The main contribution of this method is helping the
within quantitative forecasting projects to analyse and decision-makers to consider possible options and to
describe the outcomes of a skills forecast. An example choose the preferred vision for future policy decisions.
is the pan-European skills forecast by Cedefop It motivates creative thinking beyond the usual
(Section 11.1). short-term perspective. The following criteria are
important for scenario development:
‘At national, regional and local level scenarios can be used
to improve planning capacity, to enrich strategic public (a) plausibility: a scenario must fall within the limits of
policy decisions and to guide major capital investments’. what might conceivably happen;
‘Scenarios are a preparation for potential future
(b) consistency: the logical flow in a scenario must not
challenges, not predictions of what will happen. They help
undermine its credibility;
us to identify future option spaces and give us confidence
to act in a world of uncertainty [...] The method creates

(21) JRC-IPTS, For-Learn online foresight guide: methodology: main methods: scenario building http://forlearn.jrc.ec.europa.eu/guide/4_method-
ology/meth_scenario.htm [accessed 25.6.2014].

Developing skills foresights, scenarios and forecasts 47

(c) decision-making utility: the purpose is to tell today (d) formulation of a limited number of scenarios
what might happen in the future, so we can act (plausible, consistent and usable by decision-
upon it (22). making) that are narratives of how events might
unfold between now and the selected time-horizon
There are many different possible ways of developing
and what might happen to each key trend or factor
scenarios. Although they might differ in some features,
in each scenario.
and use different terminology, they still carry many
similarities (Potůček, 2006). Most of them contain (e) turning scenarios into strategies and/or
similar process that includes following stages: determining the opportunities and threats that
each scenario brings. It is better not to categorise
(a) identification of the key issues: this requires a good
scenarios as either the most or least likely: keep
and fairly narrow focus with the appropriate
an open mind to all possibilities. Choosing only
time-horizon;
one scenario as a goal may blind other
(b) identification of key drivers of change that influence developments and possibilities. However, all
the defined issues both at macro/global (social, stakeholders should operate with one common
technological, political, economic, legislative and scenario to harmonise their strategies to achieve
environmental) and micro level; desirable outcomes (23).
(c) prioritisation of importance of the key issues and Scenarios were used by the Australian Workforce and
identification of uncertainties surrounding the Productivity Agency to determine what the key drivers
influence of the drivers of change: this stage leads of demand and supply are in the Australian labour
to developing scenarios with factors with high market to 2025, and which scenarios should be
importance/low uncertainties and high importance/ considered – see Box 6.
high uncertainties;

(22) JRC-IPTS, For-Learn online foresight guide: methodology: main methods: scenario building http://forlearn.jrc.ec.europa.eu/guide/4_method-
ology/meth_scenario.htm [accessed 12.5.2014].
(23) Idem; Potůček, 2006; case studies.

48 Guide to anticipating and matching skills and jobs

Box 6.  Scenarios: example of Australia

In 2012 the Australian Workforce and Productivity Agency developed four possible, plausible scenarios for
Australia to 2025 to deal with uncertainty and limitations of making projections about the future in developing
the Future focus, 2013 national workforce development strategy. Scenarios are alternative visions of the possible
future and provide a means to make decisions that take account of uncertainty.
The intention is that, by comparing these alternative scenarios, the significance of different uncertainties can
be better appreciated. A comparison of the model results based on these scenarios helps to identify how much
difference possible alternative future developments are likely to make to the demands for different skills, plus
why, and what responses might then be most appropriate.
The four scenarios are:
1. long boom: this scenario is based on a quick recovery by the world economy from the uncertainty of 2011-12.
Australia prospers through strong demand for resources, agricultural products and services to Asia, particularly
China and India. In a restructuring economy, firms adopt productivity-enhancing strategies to remain
competitive;
2. smart recovery: the key characteristic of this scenario is instability in global financial markets, which continues
until 2014-15. Economic growth accelerates after governments in the United States and Europe constrain the
rate of growth of government debt to a path that markets accept as sustainable. Australia moves out of a low
growth economy thanks to the power of technology and the adoption of knowledge work as a critical factor
in productivity gains and new job creation;
3. terms of trade shock: in this scenario new global sources of mineral and energy resources lead to oversupply
and strong downward pressure on prices. Australia’s terms of trade fall, returning to historical levels, and the
dollar loses value. However technology and innovation drive industry restructuring and competitiveness,
and other non-mining industries do better;
4. ring of fire: this scenario is a world of continuing uncertainty and volatility characterised by sovereign debt,
bankrupt governments and a string of political crises involving many small shocks. Australia becomes more
conservative and protectionist, leading to lower productivity growth and economic growth.
In developing these scenarios a key question was: what are the key drivers of demand and supply for skills in the
Australian labour market to 2025? The drivers identified were:
• social, demographic and cultural trends;
• economic and financial trends and globalisation;
• labour force, industrial and workplace trends;
• science, technology and innovation;
• governance and public policy;
• sustainability (focus on water, energy, population).

Developing skills foresights, scenarios and forecasts 49

 All four scenarios identified common elements which will impact on the Australian future workforce: the ageing
population, globalisation, the importance of Asia, the increasing take up of technology and an urgent need for
Australia to grow the stock of qualified workers.
To support the work on the scenarios, a range of activities were undertaken:
• a joint forum with the Academy of Social Sciences which included papers from six experts each addressing
one of the drivers identified above;
• interviews with 24 experts to inform the development of the scenarios;
• stakeholder workshops to test the emerging scenarios;
• a webinar to provide information about the scenarios and the opportunity for questions and comments;
• a discussion paper followed by a period of consultation;
• provision of inputs to the 2013 national workforce development strategy.

Source: AWPA, Scenarios for Australia to 2025. http://www.awpa.gov.au/our-work/Workforce%20development/

national-workforce-development-strategy/2013-workforce-development-strategy/Pages/Scenario-
Development.aspx

Scenarios are usually preceded and supported by used to test the consistency and plausibility of
SWOT analysis. Also roadmapping (see later) can be scenarios.

Table 8.  Pros and cons of using scenarios

Advantages Disadvantages
• helps to avoid unpleasant surprises • can be constructed as the ‘official future’
• helps to ‘see’ the future and so make better • people may not be able to suspend their disbelief
decisions today • may suffer from cultural/cognitive myopia
• helps to inspire, engage and enable shared action • cannot be validated
• helps to identify issues for further horizon scanning

2.2.2.5.  Cross-impact analysis potential interactions among the forecasted items’

(Gordon, 2003, p. 4). ‘The model was introduced as
‘Cross-impact analysis is the general name given to
a means of accounting for the interactions between
a family of techniques designed to evaluate changes
a set of forecasts, when those interactions may not
in the probability of the occurrence of a given set of
have been taken into consideration when individual
events consequent on the actual occurrence of one
forecasts were produced’ (25).
of them’ (24). Probabilities of the occurrence of events
‘can be adjusted in view of judgments concerning

(24) JRC-IPTS, For-Learn online foresight guide: methodology: main methods: cross-impact analysis http://forlearn.jrc.ec.europa.eu/guide/4_
methodology/meth_cross-impact-analysis.htm [accessed 13.5.2014].
(25) Idem.

50 Guide to anticipating and matching skills and jobs

Because the future developments may be defined as B occurs, the probability of event A would change
the result of interactions between trends and events, to 0.65, if event B does not occur, the probability
the first step in this method is to define events that of event A would still be 0.5. The relationship between
can play a role in the characterisation of future these events can be also reciprocal; it means that not
developments of the defined issue (26). This is crucial only does B affect A, but A can affect B. This is the
to the success of the exercise. The initial set of simplest model including only two events; if there are
events is usually compiled from literature and more than two events, all possible relationships and
statistics review and/or opinions of experts; they may impacts should be determined. All probabilities
also come from actions to collect opinions, such as of occurrence of particular event are captured in
the Delphi method. Once the event set is determined, a cross-impact matrix.
the next step is to estimate the initial probability
A cross-impact model aims at producing scenarios.
of each event (Gordon, 2003, p. 4). Afterwards,
It is necessary to employ statistical software,
conditional probabilities in a cross-impact matrix ‘are
because ‘in a model with n events 2n possible
estimated in response to the question: ‘If event
scenarios are generated, each differs from all the
A occurs, what is the new probability of event B?’
others in the occurrence of at least one event. For
The entire cross-impact matrix is completed by asking
example, if there are 10 events to be considered,
this question for each combination of occurring event
they are 1024 possible scenarios to estimate’ (27).
and impacted event’ (Gordon, 2003, p. 5). The best
The output from the statistical software is usually a
way to illustrate this method is by example. Let us
list of scenarios ordered from the most probable to
assume that there is an event A with initial probability
the least probable. Generated scenarios need to be
of occurrence 0.5. The other event B has initial
interpreted and referred back to the original set of
probability of occurrence judged to 0.1. If an event
events (28).

Table 9.  Pros and cons of cross-impact analysis

Advantages Disadvantages
• forces attention into chains of causality, a affects b, • limitation in the number of included events
b affects c • difficult to understand consistency and validity of the
• estimates dependency and interdependency among technique
events • difficult to explore the future of a complex system
• clarifies and increases knowledge of future with limited number of hypotheses
development

Source: JRC-IPTS, For-Learn online foresight guide: methodology: main methods: cross-impact analysis.
http://forlearn.jrc.ec.europa.eu/guide/4_methodology/meth_cross-impact-analysis.htm [accessed
13.5.2014].

(26) Idem.
(27) IFP, Cross-impact analysis http://www.foresight-platform.eu/community/forlearn/how-to-do-foresight/methods/analysis/cross-impact-analy-
sis/ [accessed 13.10.2014].
(28) JRC-IPTS, For-Learn online foresight guide: methodology: main methods: cross-impact analysis http://forlearn.jrc.ec.europa.eu/guide/4_
methodology/meth_cross-impact-analysis.htm [accessed 13.5.2014].

Developing skills foresights, scenarios and forecasts 51

2.2.3.  Normative methods generated the future, to consider what actions,
2.2.3.1. Backcasting policies and programmes are needed today that will
connect the future to the present. Backcasting
This is one of the most used normative methods
reminds participants that the future is not linear, and
and is used in complex situations where there is
can have many alternative outcomes depending on
a normative objective and fundamentally uncertain
decisions made and the impact of external events
future events that influence these objectives.
on an organisation (Jackson, 2013). The backcasting
Backcasting defines a desirable future and then works
method is shown in Figure 8.
backwards to identify major events and decisions that

Figure 8.  Scheme of the backcasting method

Source: Matthew (2008).

52 Guide to anticipating and matching skills and jobs

As Figure 8 shows, backcasting comprises several technological and institutional milestones and
actions needed to achieve a desirable output. changes’;
According to Wilson et al. (2006) backcasting consists
(d) identifying interventions to initiate trajectories.
of four steps:
‘Backcasting provides framework for identifying
(a) defining problem context. This ‘involves bounding the interventions or actions [policy and strategy
the problem context, setting normative measures] required to implement the trajectories
assumptions, identifying stakeholders, considering which would lead to the desirable future’
scale issue and so on’; (Wilson et al., 2006, p. 144).
(b) characterisation of desirable futures. This focuses It is important to involve stakeholders at an early stage in
on construction of visions of desirable futures. the process and develop a future long-term vision of the
These futures reflect the values and wishes of the desired scenario. Once the collective desirable vision is
stakeholders; developed, alternative paths to achieve it are proposed
and scrutinised in terms of potential advantages,
(c) backcasting trajectories from future to present.
disadvantages, bottlenecks and problems. Stakeholders
As soon as desired futures are designed,
then select one pathway, formulate an action plan
trajectories are backcast from future to the
defining their roles, and commit to them. Box 7 shows
present. ‘Backcast trajectories are typically
how backcasting has been used in practice in the UK.
described in terms of first-order economic, social,

Box 7.  Backcasting: example of the UK

In 2006 the Tyndall Centre for Climate Change Research in the UK used a backcasting approach within the project
Decarbonising modern societies: integrated scenarios process and workshops. This project focused on creating
strategies ‘to reduce UK CO2 emissions by 60% by 2050 relative to 1990, a goal adopted by the UK Government.
The study took a backcasting approach which has been applied in two stages’ (p. 1). Before applying backcasting,
brainstorming was used with the aim of generating ‘a list of issues which […] would drive the future of the UK’s
energy system to 2050’ (p. 13).
‘Then a set of credible and consistent end points describing the energy system was devised, outlining alternative
visions of a substantially decarbonised society in 2050. […] These end points were used as the basis for
a backcasting workshop where experts and stakeholders articulated pathways for the transition to the defined
futures’ (p. 1).
‘Stakeholders were recruited from the policy community and from those with expertise in policy formulation and
implementation. The backcasting was structured into a series of steps so that participants initially thought about
the critical factors required for a particular end point to be achieved and subsequently elaborated these to define
how they might be achieved. The project team took the output from this workshop and combined the end points
and pathways to form the Tyndall integrated scenarios’ (p. 4).
There were ‘five detailed scenarios which described the transition from the present day to the contrasting end
points. The scenarios outline demand and supply side characteristics and policy steps through which change has
been brought about in the most important sectors’ (p. 4).
Developed scenarios described ways to reach future end points, and also dealt with the impact of particular
scenarios and related changes on employment and future skill requirements. It is clear that each scenario
contained a different impact on the labour market, and thus on the skills and competencies required in the future.

Source: Anderson et al. (2006).

Developing skills foresights, scenarios and forecasts 53

Table 10.  Pros and cons of backcasting

Advantages Disadvantages
• lightweight and creative • assumes the desirable future will occur
• avoids extrapolating present conditions • may need constant updating
• proactive character of backcasting – shaping the • can be resource intensive
future by designing the action today
• accessible and engaging

The main outputs of backcasting are future visions and system, product or process is considered as
ways to achieve them, discussed and agreed among a compound of attributes. New ideas are found
key stakeholders. by searching the matrix for new combination
of attributes that do not yet exist’ (31).
2.2.3.2.  Morphological analysis Morphological analysis can be based on five steps:
‘Morphological analysis [… is] a normative method, (a) defining and formulating a problem;
which starts with future needs or objectives, and then
(b) defining and analysing the parameters that might
seeks to identify the circumstances, actions,
be of importance for the solution of the given
technologies, etc., required to meet them’ (29).
problem;
The purpose of morphological analysis is to organise
(c) constructing a multidimensional matrix with
information to solve a problem or stimulate new
possible solutions;
ideas. It has widespread use for new product
development but it is particularly useful in foresights (d) evaluating the outcome based on feasibility and
for building scenarios (30). ‘Morphological analysis is achievement of desired objectives;
a method, which breaks down a system, product
(e) analysing the best solutions being selected and
or process into its essential subconcepts,
applied, provided the necessary means are
each concept representing a dimension in
available (32).
a multidimensional matrix. In this context every

(29) JRC-IPTS, For-Learn online foresight guide: methodology: main methods: morphological analysis and relevance trees http://forlearn.jrc.
ec.europa.eu/guide/4_methodology/meth_morpho-analysis.htm [accessed 13.5.2014].
(30) Idem.
(31) DIEGM, University of Udine, Morphological analysis http://www.diegm.uniud.it/create/Handbook/techniques/List/MorphoAnal.php
(32) JRC-IPTS, For-Learn online foresight guide: methodology: main methods: morphological analysis and relevance trees http://forlearn.jrc.
ec.europa.eu/guide/4_methodology/meth_morpho-analysis.htm [accessed 13.5.2014].

54 Guide to anticipating and matching skills and jobs

Table 11.  Pros and cons of morphological analysis

Advantages Disadvantages
• can discover new relationships, which may not • may be too structured and that could inhibit creative
be so evident thinking
• encourages the identification and investigation of • may yield too many possibilities
boundary conditions • human error: method requires critical judgment
• systematic analysis of future structure of the system

2.2.3.3. Roadmapping There are many approaches to roadmapping, although

generally the effort is a graphical depiction that
The term ‘roadmapping’ (usually understood in terms
provides a strategic view of the given subject (Phaal
of technology roadmapping) refers to various kinds
and Probert, 2009). This depiction can be used by
of foresight studies including visions and detailed
presenting the way forward and informing decisions
projections of future possible developments. It is
about possible future options. An example of visual
a normative method that aims to look at the future for
representation, comprising a multilayered, time-based
a chosen field and to seek the most important drivers
chart, bringing together various perspectives, is shown
of change in that field (33). It provides inputs for the
in Figure 9.
formulation of policies and strategies (UNIDO, 2009).

Figure 9.  Graphical representation of technological roadmapping

Source: EIRMA (1997).

(33) Idem.

Developing skills foresights, scenarios and forecasts 55

Roadmaps can be considered as dynamic business directly to questions that are applied in any strategic
or system frameworks, which enable the evolution context:
of system to be explored and mapped, supporting
• Where do we want to go? Where are we now?
innovation and strategy development and deployment
How can we get there?
at all levels (UNIDO, 2009). The different ‘ways’ in
roadmaps are designed by experts. • Why do we need to act? What should we do?
How should we do it? By when?
Even though the roadmapping is usually used in
technology foresight, it can be also applied when it The approach is quite flexible and can be adopted to
comes to other research areas or issues, linked suit a wide range of goals and context (UNIDO, 2009).

Table 12.  Pros and cons of roadmapping

Advantages Disadvantages
• graphical representation is an effective way • due to the broad complexity of the issue
to demonstrate relationships roadmapping can be challenging
• means to develop consensus about a set of needs • no single format is suitable for all situations:
and steps required to satisfy those needs approach has to be customised
• can help to identify key elements within a complex • it is a well-structured method which does not allow
system for large participation

2.3.  Conclusion: how to choose a method, given that some methods can relate to each other
or methods and are used in sequence. According to Keenan
combining foresight methods should be based on
‘The variety of foresight experiences demonstrates these criteria:
that no one method or structure is best: the choice
(a) ‘available resources (time, money, expertise, etc.);
must reflect both fitness for purpose and the national
culture in which it is situated’. According to Georghiou (b) nature of desired participation;
et al. (2008), any foresight exercise ‘is neither a single
(c) suitability for combination with other methods;
approach to a single problem nor a panacea for all
national problems’ (Georghiou et al., 2008). (d) desired outputs of a foresight exercise […];
Key questions are ‘How to choose proper foresight (e) quantitative/qualitative data requirements of
methods?’ and ‘How to combine foresight methods;
methods?’ to meet the objective(s) of the foresight.
(f) methodological competency (34) […]’ (Keenan,
Choosing an appropriate method or, better, a
2006, slide 4).
combination of methods is a challenge. According
to Jackson (2005) the selection of foresight The cultural, economic, political, social and institutional
methods should match the project´s objectives: the contexts play a crucial role and have to be taken into
desired project outcomes and the information consideration as well. Table 13 summarises all foresight
needs of stakeholders. A combination of methods methods and describes some of their specifics.
is usually used in foresight exercises, quite naturally

(34) The terms competency(ies) and competence(s), although slightly different in meaning, are used interchangeably throughout this publication.

56 Guide to anticipating and matching skills and jobs

Table 13.  Pros and cons of morphological analysis

Suitability for
Country Usually used Important features
Method Type skill needs
examples* together with of method
anticipation**
Backcasting Normative – +++ Literature and Provides a clear path
statistics review forward
Brainstorming Supplementary Japan, the US ++++ Expert panel, Can reveal unexpected
Delphi method development
Cross-impact Exploratory – ++ Literature and Evaluate probabilities
analysis statistics review, of the occurrence
Delphi method of set of events
Delphi method Exploratory Brazil, Germany, +++++ Literature and Good for spotting
Finland, Japan, statistics review, the unexpected, and
Korea brainstorming for engagement of
scenarios stakeholders
Expert panel Exploratory Brazil, Canada, +++++ Scenarios, Eliciting expert
Germany, Finland, brainstorming knowledge, help
Japan, Korea SWOT analysis identify priorities
Focus group Supplementary – ++++ Scenarios Improving or
generating ideas
Horizon Exploratory the UK +++ Scenarios Identifying future
scanning challenges and trends
Literature Supplementary Korea ++++ Scenarios, Evidence-based
and statistics backcasting,
review Delphi method
Morphological Normative – ++ Scenarios Breaks down a system
analysis and identify important
factors
Scenarios Exploratory Brazil, Germany, +++++ Literature and Good for spotting
Japan, Korea, statistics review, the unexpected, and
The UK SWOT analysis, for engagement of
science and stakeholders
technology
roadmapping
S&T Normative Russia +++ Scenarios, Provides a clear path
roadmapping brainstorming, forward
expert panel
SWOT analysis Supplementary – ++++ Scenarios, expert Lists factors with
panel, Delphi impact on issue
method

NB: * Reference from case studies; **the more +, the more suitable method for anticipation
is (maximum five+).
Source: Authors.

Developing skills foresights, scenarios and forecasts 57

A survey by the European foresight monitoring network techniques were combined in practice. The outcome of
mapped 866 different foresight exercises (European this survey is summed up in the methods combination
Commission, 2009) and examined how various matrix (MCM), shown in Table 14.

Table 14.  Methods combination matrix (MCM)

Ranking by frequency of use 1 2 3 4 5 6 7 8 9 10

Morphological analysis
Cross-impact analysis
statistics review

SWOT analysis
Delphi method
Brainstorming
Literature and

Roadmapping
Expert panels

Backcasting
Scenarios

Methods Combination Matrix

(MCM)

Literature and statistics

1 477 H H M
review

2 Expert panels VH 440 M M M

3 Scenarios H H 372 M

4 Brainstorming VH VH H 169 M M

5 Delphi method VH VH M H 137

6 SWOT analysis VH H H H M 101 M

7 Roadmapping VH VH M 72

8 Backcasting H H H M 47

9 Cross-impact analysis VH VH VH VH M VH 36 M

10 Morphological analysis VH VH VH VH M M M H 21

NB: (VH) very high, (H) high, (M) moderate, (blank) low.
Focus group and horizon scanning were not included in the MCM.
Source: Adapted from Popper (2011).

58 Guide to anticipating and matching skills and jobs

The diagonal shows the total number of times the
method was used in the sample of 866 cases.
The methods most used in foresight exercises are
literature and statistics review, expert panels and
scenarios. ‘Each cell outside the diagonal shows the
proportion in which two methods are combined with
a respect to the number how many times the method
on the row was used. To present the results in more
pleasant way, the percentages in the matrix were
replaced with mentioned categories: ‘blank’ for low
combinations (i.e. figures below 19%); ‘M’ for moderate
combinations (i.e. 20-39%); ‘H’ for high combinations
(i.e. 40-59%); and ‘VH’ for very high combinations
(i.e. figures above 60%)’ (Popper, 2011, p. 24).
Although, only some of the quoted cases were for
anticipation of skill needs, the matrix shows which
methods are combined with others more generally.

Developing skills foresights, scenarios and forecasts 59

Chapter 3.
Key steps in implementing foresight programmes

3.1.  Define foresight area to be considered different types of focus may coexist (e.g. future skills
shortage in a selected sector).
Defining the focus of the foresight exercise is essential
before starting. It usually tackles one core issue but

Box 8.  Finding research fields and topics: BMBF foresight in Germany

The BMBF foresight is a strategic instrument of the Federal Ministry of Education and Research (BMBF) that
provides technology foresight with a time horizon of approximately 10 to 15 years. It is characterised by combining
two approaches in a cyclic process model: a cycle strongly influenced by the technology push approach is
followed by a cycle that is mainly demand pull orientated. One cycle lasts about two years and leads to a
long-range look into the future needed for early agenda setting and prioritisation in German research and
innovation policy, including prospects for change in the education system. Research fields defined by the
High-tech strategy and by other foresight activities of the Ministry are being examined and refined in this cyclic
process.
The process in each cycle is carried out in several phases: search and analysis, transfer, and preparation of the
next cycle. Cycle 1 started in 2007 by mapping 17 proposed fields. They were discussed on workshops by
experts, followed by initial reclustering, online survey and second reclustering. By mid-2009, ‘future topics’ were
identified (neurosciences, optical technologies, water infrastructures) along with seven ‘new future fields’
(Production consumption 2.0, Sustainable energy solutions). In cycle 2 (since 2013) broad trends in demand pull
will be determined and evaluated. Results from research in social sciences, humanities, political sciences and
economy will be included along with results from interviews with lead users and persons who exhibit a particular
openness to sociocultural changes.
On the basis of this cycle, hidden trend developments may be added into the analysis which also extends to
education policy, skills and labour market changes. The results of cycle 1 and cycle 2 will be updated, combined
and linked to scenarios to point out future areas within research and science which have the greatest solution
potential to be considered in Ministry policy.

Source:  Cuhls et al. (2009). See also the case study in the annex.

60 Guide to anticipating and matching skills and jobs

Ideally the focus should be discussed and defined 3.3. Clarify the key programme
together with main sponsors, implementers and design elements
participating partners. This is useful time investment in
managing expectations and to avoid potential Once the focus of the foresight exercise is clear and
disagreements on desired outcomes. Formulating a decision to proceed is taken, a number of important
guiding question for the foresight exercise may be issues need to be planned: objectives, expected
useful (35). outcomes, foresight time horizon, partners,
stakeholders, participants, scope, methods and
formats to apply, and time and resources to allocate for
3.2. Clarify the purpose of the
the exercise.
foresight exercise
Ideally, objectives should be clearly formulated but,
The first step when thinking about a foresight unlike the foresight focus, do not have to be too
programme is to see if it can provide the kind of specific, at least at the initial stage of the process.
information sought and fulfil expectations: what role Gaining as broad support as possible early on is
can a foresight exercise play in meeting key social important but, again, managing expectations is
challenges for stakeholders? The main motive for necessary to avoid promising too much to too many
foresight should be enriching the understanding of players (37). The general objectives of foresight
likely future circumstances and potential strategies to comprise four main activities:
bring about a desired future. Foresight generates
(a) stimulating common discussion about the future
shared visions. Some national exercises have
and support for long-term thinking;
succeeded in achieving widespread consensus on
these visions but consensus is difficult to achieve in (b) collecting and combining wide-spread information
areas where there are profound underlying by gathering important protagonists and improving
disagreements. Further, employing foresight activities shared knowledge in consequence;
may not be always appropriate. If the purpose is to
(c) supporting creation of networks and stimulating
bring quantifiable knowledge of future skill needs,
common action;
foresight is perhaps not suitable (36); projections or
extrapolating activities can produce desired outputs (d) providing information and improving the quality of
provided robust data are available. present-day decisions.
Although the foresight process has the value of making There is no single objective in foresight activities. The
stakeholders interact and discuss, it is not an end in main output of foresight is to influence policies to
itself: implementing a foresight exercise can only be maintain quality of life and social and political cohesion.
justified by its desirable impact. Whether the latter can This can be achieved only through accomplishing
or cannot be achieved depends not on the quality of several partial objectives. Foresight should tend to set
foresight but on many conditions outside the effort of priorities and create ‘visions’, gather a range of
the foresight team. It is necessary, therefore, before opinions from stakeholders, enhance networking and
committing time and resources, to undertake a provide information.
feasibility check on whether these conditions will allow
achieving the desirable impact beyond the foresight
project life.

(35) JRC-IPTS, For-Learn online foresight guide: major decisions: defining the focus http://forlearn.jrc.ec.europa.eu/guide/3_scoping/dec_focus.
htm [accessed 14.5.2014].
(36) Part B deals with quantitative forecasts.
(37) JRC-IPTS, For-Learn online foresight guide: scoping an exercise http://forlearn.jrc.ec.europa.eu/guide/3_scoping/index.htm [accessed
14.5.2014].

Developing skills foresights, scenarios and forecasts 61

Care in determining scope helps achieve the objectives Mapping out the stakeholders includes considering
of the foresight exercise. Defining the scope means the degree of their interest in particular issues. The
choosing the appropriate level of intervention and different foci of a foresight exercise help defining the
relevant topics, and combining them with the agreed format of the desired outcome in relation to possible
focus into a coherent design for the exercise. The case users. Stakeholder groups can help to define the
of Russia (see annex) demonstrates that the scope of outcomes being aimed for. Typical stakeholders in
the project Skills 2030 foresight was defined as the skills foresight are government and its bodies
sectors where technology has been the primary driver (ministries, agencies) at national/regional/local level,
of change in skill demand. The topics focus on working employers and their bodies, trade unions, research
tasks and related skills. centres and specialised institutions, public
employment services, and education and training
Key stakeholders need to be identified and involved.
providers. Skills foresights include elements of social
Stakeholders involved in foresight are groups of
dialogue between government and the private sector
people that affect, are affected by, or have an interest
in its core activities. More information on
in particular foresight activity. One apparent, although
stakeholders to be involved in skills anticipation and
not always mandatory, stakeholder is the sponsor of
matching activities are provided in Volume 1. For work
the foresight. Other stakeholders may include direct
on sectoral level, the involvement of stakeholders and
and indirect users and beneficiaries of the foresight
the role of social dialogue are deeply discussed in
results who, should all be considered in the design of
Volume 3.
the foresight exercise to maximise its benefits.

Box 9.  Involving stakeholders

The composition of participants will depend upon the orientation of foresight activities; several practical
approaches can be used to identify appropriate individuals. One of the main aims of foresight activities is
maximum involvement of leading players because these will help determine the final outcome, whether foresight
is focused on formal activities, or on the activation of learning processes and development of specific skills. The
correspondence between foresight objectives and stakeholder needs depends greatly on the number of key
players involved and their effective participation, as well as their ability to intensify relationships of exchange
within the issue and with regard to external contexts.
The success of the foresight programme – and thus its ability to attract sponsors, engage stakeholders, and put
the results to effective use – will depend on its ability to mobilise sources of energy. As the effectiveness of each
foresight activity is strongly influenced by the number of key players involved and their degree of participation, in
order to avoid casual or misguided choices, the identification of these players must follow in-depth analysis of the
local system and refinement of the general objectives of foresight activity.
Participants must be identified according to the focus of the foresight activity, which will, in turn, be dependent on
the objectives of the initiative and country circumstances. It is necessary to consider the main components of the
system: objectives focusing on improvement of the training system will involve leading public decision-makers at
both local and national level, as well as the public and private training supply systems, and players representing
the demand for vocational skills.

62 Guide to anticipating and matching skills and jobs

 Three ways to recruit members and participants

Arguments to encourage participation in the exercise should emphasise the potential benefits of establishing
foresight activities. They should primarily focus on the types of benefit to be gained from the setting up of a
foresight activity. Such benefits can be divided into three types:
• ‘entry point’ benefits connected to the preparation of specific programmes for submission to national and
European financing. In this case, both local institutions and the various members of the training and social
systems will have specific interests in defining projects and programmes to attract resources into the system;
• benefits connected to long-term objectives, aimed at improving performance of the system. These objectives
depend on the structural features and may address aspects such as general economic development,
improvement of sector competitiveness, and greater dissemination of technologies in production and social
systems. Obviously, the most suitable arguments for involving players will depend on the objectives identified
and the relative benefits. For example, in the case of a foresight activity aimed at better skills match by
adjusting education and training provision, the arguments to be used with public authorities should revolve
around improvement for public budgets (less unemployment and related social problems). Citizens, on the
other hand, should be made aware that they will benefit from such improvements; arguments might focus on
the benefits from making better informed choices about a future career. Employers might benefit from better
availability of a ready workforce;
• benefits connected to the creation or strengthening of harmony between players. In this case, the arguments,
especially those aimed at political decision-makers and employers and entrepreneurial associations and trade
unions, should highlight the potential impacts of foresight activity. These could include improved interrelations,
cohesion and generation of shared vision between players. This type of benefit also has a direct effect on the
advantages to be gained from the foresight activity by individual participants. For example, individual
enterprises can improve their knowledge of the technological and economic scenarios in which they compete,
while individual citizens can increase their preparedness for new technologies, jobs and so improve their
quality of life.

Developing skills foresights, scenarios and forecasts 63

 Project management practice can help to prioritise stakeholders: there may be a long list of people and
organisations that are affected by the foresight exercise. The power/interest grid shown below classifies key
players by their power over the programme and by their interest in the programme.

The power/interest grid

Source: Kot, Requirements technique: stakeholder power/interest analysis: http://requirementstechniques.

wordpress.com/stakeholder-analysis/stakeholder-powerinterest-analysis/ [accessed 25.6.2014].

The positions on the grid suggest action to be taken:

• high power, interested players: these must fully engaged and the greatest efforts have to be made to satisfy
them (sponsor, government representatives);
• high power, less interested player: enough effort has to be made to keep them satisfied;
• low power, interested players: they should be kept adequately informed ensured that no major issues arise;
• low power, less interested players: they should be monitored but not burdened with excessive
communication.

Source: JRC-IPS et al. (2001).

64 Guide to anticipating and matching skills and jobs

The next step involves translating the defined should help to select a set of methods to be applied at
objectives into specific results expected to be achieved different stages of the process in the appropriate
through the foresight exercise. Such results could be sequence taking into account suitability for
tangible, such as reports, books, websites, combination with other methods, desired outputs of a
institutionalised networks, strategic documents, or foresight exercise, quantitative/qualitative data
intangible, related to the process itself, such as requirements of methods and methodological
informal networking, consensus on issues discussed, competency (Keenan, 2006). The selected sequence of
collaboration among stakeholders and social dialogue. methods will normally evolve and might be altered or
Expected outcomes from the foresight exercise have refined throughout the process. The methods have to
to be clearly defined and related to specific groups of be discussed with the sponsor, the team and key
stakeholders: part of this process is describing the stakeholders (40).
outcomes in the language relevant to audiences (38).
Defining time horizon is the next step: this has to be 3.5.  Manage the foresight exercise
done taking into account the subject of the foresight
The foresight implementation plan has to include a
and its dynamics. Many methods only work for certain
number of organisational issues, such as forming the
time horizons and so the decision on how long into the
implementation team and assigning roles and
future the foresight should look has to be taken before
responsibilities to its members, setting up a steering
selecting methods (39).
committee, outlining a communication strategy,
estimating and securing financial and non-financial
3.4. Clarify key questions and the resources, contracting external collaborators, and
way to find answers forming expert working groups if necessary.
Once these design issues are resolved the programme
Selecting an appropriate methodology should be done
can be launched. Managing the foresight exercise
early in the foresight design process. The chosen
poses a number of challenges. Due to the highly
methodology should be problem-solving driven and
participatory and interactive nature of the approach,
result-oriented. It should also take into account
continuous adjustment of the process without
feasibility of the implementation and resources needs/
jeopardising the overall outcome is a challenge. Other
constraints. The resources include availability of time
issues are managing time and people, including
including that of participating stakeholders, money,
relationships with the sponsor and the stakeholders,
expertise including that of a facilitator, venue,
and engagement of participants (41).
equipment and access to data. These considerations

(38) JRC-IPTS, For-Learn online foresight guide: major decisions: defining the outcomes http://forlearn.jrc.ec.europa.eu/guide/3_scoping/dec_
outcomes.htm [accessed 14.5.2014].
(39) JRC-IPTS, For-Learn online foresight guide: major decisions: defining the time horizon http://forlearn.jrc.ec.europa.eu/guide/3_scoping/
dec_time-horizon.htm [accessed 14.5.2014].
(40) JRC-IPTS, For-Learn online foresight guide: methodology: methodological framework http://forlearn.jrc.ec.europa.eu/guide/4_methodology/
framework.htm [accessed 14.5.2014].
(41) JRC-IPTS, For-Learn online foresight guide: running an exercise http://forlearn.jrc.ec.europa.eu/guide/3_running/index.htm [accessed
14.5.2014].

Developing skills foresights, scenarios and forecasts 65

Box 10.  Foresight programme team skills

Carrying out a foresight exercise requires appropriate skills among members of the foresight implementation
team. Their competency profiles and prior foresight experience are critical. Therefore, selection of the project
team and division of roles and responsibilities need careful consideration.
Many actors are involved in foresight exercise: universities, businesses, chambers of commerce, media, industry
associations, sponsors, experts, NGOs. Foresight exercises can potentially involve dozens of participants from a
wide variety of organisations and backgrounds. Identifying participants depends on the orientation of foresight
exercise. Objectives focusing on anticipation of skill needs will involve political representatives, public decision-
makers, employers and their associations, research centres and specialised institutions, public employment
services, trade unions and education and training providers.
Depending on the objectives of the foresight exercise and on the methods employed – a number of competencies
are required during the process. It may be that the right people with the right competencies are not available
within the foresight team (for example facilitators for workshops, rapporteurs for panel discussions, designers for
online surveys, foresight experts). There are strategies for solving this problem: by training the project team, by
bringing external competencies into the project for specific tasks or by outsourcing parts of the project (e.g. using
professional consultancy for facilitating discussions). It is recommended to think carefully from the start about
what competencies will be needed during the foresight process and what strategies are needed to recruit the
right people.
Special attention should be given to foresight experts and their skills and competencies. Especially experts with
knowledge of specific foresight methods are rarely available from local sources; often they are not available even
in the country. In practice, accessible local experts use methods they are familiar with or which are fashionable,
but not in correspondence with the objectives of the foresight exercise. This can cause serious problems in
achieving the foresight objectives. In such cases it is necessary to recruit experts from abroad and use their
expertise and knowledge.

Source: case studies (see annex); JRC-IPTS, For-Learn online foresight guide. Methodology: methodological
framework. http://forlearn.jrc.ec.europa.eu/guide/4_methodology/framework.htm ; Scoping an exercise:
setting up: team member profiles. http://forlearn.jrc.ec.europa.eu/guide/3_scoping/set_team_profiles.htm ;
[links accessed 14.5.2014].

66 Guide to anticipating and matching skills and jobs

Implementation of a foresight programme consists of Often, insufficient attention is given to follow-up, and
two phases. The first phase incudes collection, recommendations produced never get to the
collation and summary of available information. implementation. The key to success is to include
Collection of ‘information on future themes, trends, implementation into the foresight implementation plan
ideas, early signs, etc., is gained from a wide range of and treat the task as part of the exercise. This does not
sources such as experts, universities, business mean that the foresight implementation team will have
networks, personal networks, the literature, to implement the strategy that results from the
government, other foresight reports, research and foresight themselves. They may initiate broader
surveys by means of different methods such as Delphi, collaboration, engage other institutions and delegate to
surveys, systematic reading, or brainstorming other authorities, but the plan for the foresight afterlife
sessions’. Collation and summarisation give the has to be in place.
information a structure and form and its volume is
The responsibility of foresight programme
reduced. ‘Again, there are general methodologies and
implementers does not usually go beyond the delivery
processes available, such as scenario building, list
of programme outcomes to stakeholders or end users.
writing and prioritising, graphical comparisons,
Stakeholder expectations should be continuously
[matrix production], and cross impact analysis’
managed during the programme so that their needs
(Horton, 1999, p. 2).
are met adequately. Making benefits from programme
Actual foresight comprises the translation and results is a matter of stakeholder engagement and
interpretation of this information to produce an ownership over the programme. Foresight
understanding of its implications for the future from a programmes that have highly engaged stakeholders
specific point of view (such as for education and with strong ownership will more likely result in
training). It involves activities, tools, skills and people to follow-up actions that will implement foresight
do the translation and interpretation work for outcomes. But these activities are usually ‘out-of-
education, training and skill needs and what can be scope’ of the foresight exercise.
done about it today. This is the value- added phase,
Evaluation has to be an integral part of foresight
generating an understanding of what can (or cannot)
exercises. Evaluations ideally look not only at products,
be done for the future.
results and outcomes but also processes. Evaluating
outcomes is essential for accountability to client and
3.6.  Ensuring the use of results users, whereas evaluating processes is important for
future foresights (43). Understanding what worked and
The life of foresight does not stop at the end of the
what has to be changed will help to draw lessons and
implementation of the foresight activity itself; it
share good practices, with a view to systematising
includes tasks related to the use and dissemination of
foresight activities.
the results, their evaluation, and reflection on the
lessons for future foresights (42).

(42) JRC-IPTS, For-Learn online foresight guide: follow-up of the exercise http://forlearn.jrc.ec.europa.eu/guide/6_follow-up/index.htm [accessed
14.5.2014].
(43) Idem.

Developing skills foresights, scenarios and forecasts 67

Chapter 4.
Adapting foresighting to local needs

4.1.  Key context factors approaches difficult to apply because they may be too
closely linked to their bigger neighbours (so that skills
This guide argues that rather than presenting a ‘one
gained are used elsewhere due to cross-border
size fits all’ approach universally or within a group of
commuting).
countries, it is more convenient to consider
opportunities and barriers that arise from country
4.1.2.  Economic and social context
specifics. Reviewing the cases, a number of general
circumstances that have influence on foresight Developing or transition countries have several
activities have been identified. The context factors common features related to their level of social and
provide a framework for application of any foresight economic development, so the main skills issues may
approach and need to be considered at national level. vary from developed countries. As demonstrated in the
Understanding them helps in making better strategic Brazilian case, illiteracy and basic education quality can
decisions about foresight activities. undermine efforts to develop and better match skills on
the labour market.
The list of following themes is not exhaustive but
indicative of the areas where initial assessment is Economic growth is important but does not necessarily
useful when thinking of developing or adopting a make foresights easier to implement influencing
foresight approach. Though considered separately, context factors (such as political and institutional
these areas are closely interrelated. stability). An unfavourable economic situation may
disconnect new technologies from the main social
4.1.1.  Country size problems of a country and polarise the workforce. The
Brazilian case shows (see annex) that social progress
Country size, represented by the number of inhabitants
and increased social inclusion linked with good
or workforce, influences the scope of foresight
economic conditions (reduction of poverty, informality,
activities. For example, the population of Brazil
inequality) directly affected the number of workers
represents two fifth of the whole EU population,
included in government-monitored activities and made
making foresight activities at national level
foresight exercises more valuable.
incomparable to small European states which are the
size of Brazilian states. The size is reflected in There is a link between the level of development and
complexity of management of foresight activities (such foresight experience in countries. From the cases
as size of expert panels). The country area also matters. considered here, Japan, Germany and South Korea
As seen in the Brazilian case (see annex), spatial skills have gathered most foresight practice and can provide
mismatch is an issue that calls for attention. Small more examples on the use of specific methods. The
countries may also find some national foresight relevance of the foresight methodology to other

68 Guide to anticipating and matching skills and jobs

countries, including transition and developing 4.1.4. Openness and vulnerability to
countries, is high but the feasibility of application of external changes
specific methods must be always carefully considered
Generally, smaller countries tend to be more open and
(taking into account for instance the existing statistical
vulnerable to external changes. Economic structures
infrastructure or availability of expertise and foresight
and labour market adjustment are more prone to global
competencies).
trends. However, the degree of openness can be
influenced by political decisions, as in the 1990s when
4.1.3.  Political stability and culture
Brazil embarked on an outward-looking development
Developing foresight culture or carrying out a strategy and opened up its economy. Other countries
meaningful foresight exercise requires an environment may be satisfied with more inward-looking strategies,
in which a certain degree of continuity of public sticking to the low skill equilibrium where little pressure
processes and policies is allowed. Instability of public is put on increasing skills. In such cases foresight
institutions due to changing focus of political leaders interventions may be pointless.
and governments is a risk element for developing
foresight activities and for their success. 4.1.5.  Cultural context
Success of foresight activities requires a degree of Different cultures (western, eastern, regional,
forward-looking thinking by political leadership. Many institutional) and their values can affect the way
countries where reactive short-term thinking foresight is developed and implemented (such as the
penetrates all areas of public administration may find it transferability of some practices). Differences in the
difficult to start developing a foresight system that by operation of the labour market (key actors, hiring and
its nature serves mid- or long-term goals. firing regulations, level of informality, working
conditions) or the mode of acquisition of skills
The perception of necessity of change is an important
(education systems and values) influence the choice of
policy aspect. In countries where substantial political or
approaches.
cultural changes are common, foresight is more likely
to become part of the policy response since it helps to
guide today’s decisions for desired future.

Developing skills foresights, scenarios and forecasts 69

Box 11.  Cultural context in Japan

Japan, during long-term use of foresights, developed a considerable ‘foresight culture’. Foresight and its results
become widely known and used for various purposes at all levels (from national policies to individual institutions,
including stakeholders in R&D and education).
Japan has built its economic success predominantly on a skilled population, government-industry cooperation and
intensive science and technology development, mainly within technology-based industries. It has a culture of
staying long, if not for the lifetime, with one employer, which can result in a relatively less flexible labour market
and education system. Individual companies are motivated to invest in the development of their work force and
draw benefits from various foresight exercises.
Foresight methodology choices are related to the Japanese cultural context. Anonymous methods such as Delphi,
where the respondents’ answers cannot be influenced by factors such as deference to seniority staff, are
preferred over exercises that include face-to-face contact.
The results of the regular extensive foresight exercises, with a Delphi method at their core, carried out for the
Japanese government are regularly used by variety of stakeholders from both the public and private sectors. Since
the 8th S&T foresight in 2003-04 the results are also used as a direct input for S&T and R&D policy formulation
(the Science and technology basic plan). Individual institutions also draw their plans from the national foresight
results. Various other foresight (as well as other future-looking) activities are undertaken in Japan, ranging from
sector foresight, meso-level exercises to specific industrial association foresight and to micro-level foresight
within individual companies.
Often it is stressed that in Japanese foresight culture the main value of the foresight is seen not only in the direct
outputs like subsequent policies, but in the process itself, expressed as the ‘five Cs’: communication,
concentration on the longer term, coordination, consensus, and commitment (UNIDO, 2005, p. 11). From this
point of view, education, other policies and individual companies directly or indirectly benefit from foresights, even
if no direct regular institutional linkage is established.

Source:  Georghiou et al. (2008); NISTEP (2010); Cuhls (n.d.).

70 Guide to anticipating and matching skills and jobs

4.1.6.  Institutional background 4.2.  Success factors
Adequate institutional infrastructure is essential for Cases considered in the worldwide review of skill
producing successful foresight results and foresight approaches suggest that a numbers of
corresponding response. This covers not only common factors are found in successful cases. These
institutions that sponsor or promote foresight activities are generalised key conditions for the success of skill
(usually central or local governments and their foresight activities in every country.
agencies) but also relevant stakeholders (in particular
employers and their representations, research centres, 4.2.1. Setting reasonable goals and
sector bodies, employees and their representative scope of activities
bodies, education and training institutions and others)
For countries beginning to develop skills foresight
who are possibly engaged or committed to such
approaches it is essential to set a reasonable scope of
activities.
activities. Experience in various countries shows that
A lack of adequate institutional framework can mean a considerable, if more modest, progress can be made
need to develop a consensus on reforms of existing using elements of good practice rather than an
institutions or development of new ones, which ambitious, large-scale programme. Setting goals and
becomes a challenging issue. Establishing new scope should be based on initial assessment of
institutions may take a long time. Partnerships and country context which reveals the main opportunities
networking are often crucial success contributors. and barriers.
Existing institutional infrastructure and capability in a
4.2.2.  Adequate institutional framework
country affect the potential application of particular
approaches. Those involved need to have the capability Having an adequate institutional framework in place is
not only to produce foresight results but also to a key success element. Countries that are able to use
transform them into practical policies, programmes, an existing framework seem to gain considerable
and measures at different levels. This is a limiting factor advantage. Some countries have a long history of
for many countries that would be able to produce evolution of organisations involved in skills, education
foresight outcomes in some way (sponsored by and training development and policy. This has shaped
international programmes, for example) but are likely to the way skill needs are anticipated, and how possible
fail in producing a policy response due to weak skills mismatches can be dealt with. The case of Brazil
institutions (Georghiou and da Fonseca, 2009). shows (see annex) that the institution involved in skill
anticipation (SENAI) has an extensive network of
4.1.7. Resources branches across the country over several decades. It is
obviously easier to build on existing structures than to
Resources that are needed to perform foresight
reach a consensus on reforms and development of
exercises include not only funds but also an existing
new ones, which may take years. Usually, the
statistical infrastructure, previous research or human
framework comprises well established institutions
resources with relevant knowledge and expertise.
along with those that have been newly created in
Quality and availability of these resources influence
response to new challenges.
every foresight activity.

Developing skills foresights, scenarios and forecasts 71

Box 12.  Institutional framework in Russia

Skills foresight activities in Russia are sponsored by two government structures: one well established and a
second recently created to promote new business, young professionals, and social projects.
1. The Ministry of Education and Science of the Russian Federation launched a study of demand for new skills
and competencies in hi-technology industries as a part of its third science and technology foresight of the
Russian Federation.
2. The Strategic Initiatives Agency (established in 2011) has launched the Competency 2030 foresight as a part of
its initiative to create a national system of qualifications and competencies. This is a comprehensive project
coordinated through the roadmap that involves activities of the Ministry of Economic Development, Ministry of
Labour, Ministry of Education and Science, Ministry of Telecommunication and Mass Media, and others.

The Moscow School of Management Skolkovo (established in 2006) has been responsible for the execution of
both projects. The scope of the project for the Ministry of Education and Science involved key hi-tech sectors,
including biotechnology (including agriculture and food industry applications), healthcare, ground transportation
systems, aerospace, energy generation and transmission, information and telecommunication, extraction and
processing of mineral resources, environmental protection and waste management. Additional sectors for the
Strategic Initiatives Agency project involved construction, finance, education, government and public services.

Source:  Annex, case study on Russia.

More information on the role of social dialogue and involvement of industry (employers) is essential. The
stakeholders’ involvement and institutional setting in SENAI system in Brazil is managed by an executive
anticipating and matching skills are discussed in group formed by SENAI technical representatives,
Volumes 1 and 3. academia and business representatives who are both
the producers and users of the information generated.
4.2.3.  Engaged stakeholders
4.2.4.  Availability of resources
Crossing disciplinary boundaries is essential to be able
to address emerging real-world problems. Involvement While the issue of insufficient financial resources can
of a wide pool of expertise, and often of stakeholders be partially resolved by sharing costs in international
more generally, is needed to access relevant foresight programmes or reducing the scope of
knowledge, to engage more participants in the policy activities, lack of expertise (across institutions involved)
process, and to establish networks for coordination of and statistical data are more difficult to resolve in a
action and sharing of information. Experience from short time. Networking and knowledge transfer from
various countries shows commitment from abroad can help overcome expertise deficiencies.
stakeholders is necessary: this does not mean that all Successful foresight exercises are able to balance
stakeholders must be engaged but for skill forecast available resources and expected outcomes.

72 Guide to anticipating and matching skills and jobs

4.2.5.  Choice of methods A foresight programme/project is a time and resource
limited exercise which is only one step in building such
The choice of methods should reflect country contexts,
culture. Isolated activities with little follow-up tend to
the foresight exercise focus, and the nature of
have limited success, so broader support activities/
methods. International surveys have revealed that in
processes should be also considered:
Europe and North America, in circumstances where
stakeholders have longer experience in participatory (a) raising awareness of the importance of foresight in
social dialogue, actors prefer face-to-face forums such improving a country’s economic and social situation.
as expert panels and workshops. In Asia, more Awareness-raising activity should help to build
anonymous methods, such as a Delphi, are preferred. foresight into the thinking of future generations of
There is no prescription for optimum method mix but decision- and policy-makers. This can be done
rarely is a single method used. through conferences, forums, publications,
electronic books, the Internet and the media.
4.2.6.  Effective dissemination of results Promotional materials and events should familiarise
stakeholders with the concept, the practice and the
The foresight results should support informed
results of foresight activities. Special attention
decision-making by the target audience, so an effective
should be given to motivating industry to participate
mechanism for delivering results is a key element. The
in foresight initiatives as part of a general
SENAI Thematic Antenna in Brazil is a workshop-like
demonstration of the value of foresight results to
event where the executive group discusses the
stakeholders;
outcomes and generates recommendations for SENAI
in relation to vocational training and provision of (b) developing capacities and adapting foresight tools
technical and technological services for the sector in to a country-specific context. This involves
focus. Results are ultimately made available to the improving the skills of foresight practitioners
target audience through the website and fed into the through courses, workshops, seminars, fellowships
monitoring process to support SENAI in developing and study tours. Involvement and support for
skills strategies. national centres of excellence on foresight process,
which could be mobilised for the preparation of
foresight studies, is needed. Making use of
4.3.  Building foresight culture
exchange programmes with regional centres and
The country cases considered here show continuing institutions in other regions and engaging
efforts have to be made to ensure the long-term international experts on foresight and relevant areas
success of foresight activities. Such efforts can create of knowledge is also appropriate. Practitioners
a foresight culture, an environment in which foresight should be supported in developing and adapting
exercises produce meaningful results, inform decisions foresight tools to a country-specific context and in
and initiate corresponding responses. gaining knowledge and experience to ensure good
foresight products are created;

Developing skills foresights, scenarios and forecasts 73

(c) undertaking foresight exercises for selected areas 4.4. Questions on preparation and
or themes with proper dissemination of results. implementation of a
This involves conducting selected foresight studies foresight exercise
as cases to demonstrate the applicability of
foresight approaches and their added value for the This chapter offers an overview of some typical
development of national and regional policies; questions asked when deciding about the application
of a foresight exercise and during the course of it.
(d) strengthening national knowledge and the capacity
to use foresight for designing and improving Some of the following questions are extracted from the
policies and strategies. More foresight exercises annex and information about typical issues is taken from
create a more solid knowledge base for guiding a set of presentations given during the ILO-Skolkovo
current decisions towards creating desired future. (Moscow School of Management Skolkovo) International
To take full advantage of foresight results it is expert workshop ‘using technology foresights for
important to support their delivery to corresponding identifying future skills needs’ held in July 2013. Another
decision-makers. useful source of typical questions about foresight is the
FOREN network Practical guide to regional foresight
Stakeholders should be motivated to adopt common
(JRC-IPTS et al., 2001) although this is primarily focused
foresight objectives and aided to articulate foresight
at regional level and is not focused on skills anticipation.
needs: this demands awareness and knowledge.
What it offers can be regarded as generally applicable in
Setting up appropriate organisational structures for
foresight exercises and relevant to future skills and
foresight programmes helps generate consensus on
competencies foresight.
programme focus including goals, methodologies,
infrastructure and management. There are two main groups of questions: general items
to think about before a beginning of the foresight
Since foresight results should feed into decision-
exercise and those related directly to the process.
making processes (policy cycle), developing channels
to deliver the results to target audiences is necessary.
To which issues can a foresight exercise be applied?
These includes individuals making career choices,
practitioners in education, training and skill While most often applied to ‘hard’ scientific and
development, and those involved in labour market industrial topics, foresight can be applied more widely,
management systems: all those who know what is as with skills and competencies, although practical
going on in the labour market and can see how the examples of these exercises are not too common.
information gained can best be translated into relevant
The exercise should determine what challenges the
policy actions and other decisions. Relevant
country/region will face over the coming decades:
organisational structures foster a sense of ownership
these may be technical (building/location/discovery of
and make implementation of results easier.
new sources of energy, building of road networks) or

74 Guide to anticipating and matching skills and jobs

social (ageing of society, baby boom, greening collectively to understand the challenges and
economy). The need for the skills foresight is also part opportunities that they are liable to confront, and the
of changing technologies, processes and managerial strategies and objectives that others might pursue.
approaches in the economy resulting from
(c) To develop capabilities to support the development
technological progress and social innovations,
of a ‘foresight culture’. The aim of this is for people
increasing global competition for consumer markets,
of various kinds to be able to define and embark
efforts to modernise industries and to launch the
upon their own foresight activities, to forge their
‘knowledge economy’.
own foresight networks.
New challenges and activities are frequently
In practice, a mixture of these three reasons is
accompanied by labour market changes expressed as
often in play. The third rationale is probably the one
changes in occupation structure, working tasks and
that has been slowest to be recognised as a
skills. There are tasks that can be resolved with
practical goal, but it is often very relevant. There may
existing skills and knowledge, those that require new
also be other goals that stimulate interest in
skills and knowledge (hence the demand for new
foresight; it may start from a national exercise or an
competencies) and those no longer needed. The
effort to make the region’s voice heard within the
foresight should show which skills the country needs
context of such an exercise (see annex, especially
to develop in over the mid or long term and to
sections on main challenges and policy objectives of
determine how these skills can be generated by the
case studies).
education and training system. This means assessing if
the existing capacity of education (initial and When done well, foresight is more a process than an
continuing) is up to developing newly-detected academic study; involvement and mobilisation of the
professions, working tasks and skills. actors and the use of social dialogue with the private
sector are key success factors and can be seen as an
What are the main rationales for objective in itself. Some typical objectives set for
foresight activities? foresight can be plotted using the axes:
(a) To inform policy-making, so that decisions taken by • the mobilisation of actors and consensus building;
key actors in commissioning bodies reflect
• the ability to inform and shape policy-making and
longer-term developments and how these are liable
decision-making processes.
to interact with current policy decisions. Often a
foresight exercise will be stimulated by the need to
How can formal methods be used in foresight?
take a particular decision but the knowledge
developed, and the foresight capabilities that have Any foresight exercise involves a range of methods.
hopefully been embedded in the organisation, Some of these relate to the management of the
should have a wider significance. process, the securing of requisite support from its
constituencies, and achieving results among its
(b) To help build networks among the people centrally
intended ‘users’. Other methods are used for the
involved with shaping the future of a particular topic.
generation of informed visions of long-term futures,
They will be brought together to work on their
and various formal techniques are used for this
visions and assessments of the future. The purpose
purpose (44).
of this is to help them become better able

(44) More detail on these methods is provided in Chapter 2 and in the annex, especially sections on key institutions, processes, approaches,
methodologies and results.

Developing skills foresights, scenarios and forecasts 75

How can I go about identifying the foresight Who should be involved in a foresight exercise?
approach appropriate for my situation?
This totally depends on specific foresight objectives,
The issue is one of choosing the appropriate balance of but actors such as governments, universities,
approaches, and this will be influenced by the businesses, chambers of commerce, employers’ and
problems at stake, the resources at hand, and the industry associations, trade unions, media, and NGOs
political context. are normally involved. In the case of skills it should be
ministries of education, labour, social affairs, economy,
How could foresight be ‘positioned’ vis-à-vis ministry of finance, government agencies (public
existing policies and programmes? employment services, agencies for vocational
education and training and for higher education),
Foresight activities can be arranged as relatively
research community, social partners, and civil society
‘stand-alone’ exercises organised by public authorities
organisations (see annex, especially sections on key
or they can be embedded in existing policies,
institutions, processes, approaches, methodologies
programmes and strategy-making processes.
and results of case studies).
What would be the most suitable time
horizon for the foresight to adopt?
Time horizons tend to vary from five years up to
20 years, mostly reflecting the varying identities of
project beneficiaries, expected foresight products and
processes.

How long will it take to conduct a foresight

exercise?
An exercise lasts typically between six months and
three years.

How much will it cost?

Costs can vary. They will depend on location of
activities, scope of the exercise, number of people in
the project management team, organisation of events,
and approach selected.

76 Guide to anticipating and matching skills and jobs

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80 Guide to anticipating and matching skills and jobs

 Part B:
Skills forecasts
Chapter 5.
Introduction to skills forecasts

In the first part of the guide, qualitative methods of preference of governments worldwide suggests that
skills anticipation have been thoroughly reviewed. there is general acceptance of the case for carrying out
Methodologies have been discussed and such work as a ‘public good’.
implementation and its pitfalls are also described.
While qualitative approaches have their merit, a While it is now generally agreed that in a market
quantitative approach to skills forecasting can also be economy it is not possible to make precise predictions
useful. Though qualitative approaches are usually less that can be used for detailed ‘manpower planning’, the
demanding in terms of input and budget requirement, need to make strategic plans and choices which can
quantitative approaches excel when complex influence and shape the future path taken by the
interactions are to be examined, or comparability based economy and labour market is widely accepted. Such
on a fixed methodology is crucial in repeated plans need to be guided by robust labour market
forecasting and use of results. information and analysis, including a forward-looking
In the following sections, we aim to provide a brief element. This needs to be based on regular, systematic
overview of skills forecasting and to point readers and quantitative approaches to forecasting and
towards additional literature where they can find more scenario development.
information about the huge amount of work going on in Skills are a key part of the infrastructure of the
this area (45). economy; the choices made by policy-makers,
Skills forecasting is not an attempt to plan the system enterprises and individuals on investment in education
from the top down. It aims to inform all participants in and skills can help to determine the path the economy
the labour market and education and training arena, to takes. These individual choices also need to be guided
help make markets work better. Some have argued by good labour market information and analysis.
that systematic anticipation of changing skill needs is
It is telling that the US, one of the most capitalist
unnecessary and impossible and that nobody can
predict the future with certainty. But everybody can economies in the world, devotes more resources to
prepare or plan for it, including governments, this activity than anywhere else. The approach is
employers, education institutions and individuals. To do backed up by huge investment in labour market
this involves some element of forecasting: either information, including forecasting, aimed at ensuring
implicitly or explicitly. In this sense, not only is that students are well informed about the choices they
forecasting possible, it is also inevitable. The only face. Europe as a whole has some way to go to catch
meaningful questions are how it should be undertaken, up, although there are many examples of good practice
by whom, and with what end in mind. The revealed in individual Member States.

(45) In this text we incorporate experience and information from the programme of research led by the Warwick Institute for Employment
Research, funded by Cedefop. This report is only one part of the project. As a whole, the project focuses on the implications of structural
changes in European economies and labour markets on the demand for and supply of formal qualifications (Cedefop, 2010a).

82 Guide to anticipating and matching skills and jobs

The experience of the US and other countries across the Although there is strong evidence of causal links
world suggests that forecasting can provide systematic between investment in education, training and skills
analysis of the implications of continuation of past and and economic success (both at the whole economy
current trends and patterns of behaviour. It can help to level and for individuals), there is no guarantee of a
map out different scenarios, based on alternative positive return. It is crucial to invest in the right areas.
assumptions, which can form a basis for intelligent and This highlights the importance of understanding where
informed debate and further research, as well as helping the best opportunities will arise.
to inform individuals making career decisions.

Box 13.  Rationale for skills projections

The rationale for producing regular and detailed projections includes:

• filling existing information deficits and preventing future labour market imbalances;
• informing various actors on future labour market needs, as an aid to their choices and decision-making;
• supporting policy-making at national and European level in employment and social protection, lifelong learning,
guidance and counselling and migration.
Answering key questions:
• in which sectors and occupations will employment be growing?
• for which qualifications will demand increase or decrease?
• what about replacement needs?
• how will this compare with supply?

5.1.  Skills forecasting: for whom? A key set of questions to be addressed when
assessing such needs and systems are:
There are many different audiences for skills analysis
and forecasting, and their specific and detailed needs (a) when: what is the interval over which the skills
for labour market information and analysis may be very forecast is performed, for which duration;
different. In the current guide we take on the view of
(b) by whom (funding and execution): who is the
longer time horizons of 5- to 20-year forecasts. While
funding body of the skills forecast, and by whom is
shorter-term forecasts have a merit of their own, we
the skills forecast executed;
will not discuss them in this guide extensively. The
discussion will partly be informative for other time (c) for whom: what is the target group or the goal of
horizons as well. the skills forecast;
(d) how: which approach and or methodology is chosen
to generate and present the skills forecast.

Developing skills foresights, scenarios and forecasts 83

The main audiences include: Limited resources mean that the main national
projections are intended to serve many different users
(a) government, at national and regional level
and purposes. While this cuts costs, it may mean
(policy-makers);
compromises in terms of meeting the specific needs
(b) stakeholders, including local bodies, industry of different users. We will be discussing best practices
training organisations, employers, trade unions, in most cases, which show what can be achieved; this
education and training institutions, and careers does not imply simplification of modules or a
guidance organisations; combination of quantitative and qualitative approaches
(Part A). On the quantitative side, we have tried to
(c) individuals making occupation choices.
include alternative approaches that might supplement
The interests of the different audiences may be very best practices whenever those were straightforward to
different. They include: supplement.
(a) links to more general economic policy and analysis,
including productivity and growth; 5.2.  Duration of forecast
(b) occupation demand: future employment levels by The chosen duration of the forecast is often
occupation/skill; determined by the specific goals. Long-term planning
and insights into developments in the labour market by
(c) replacement demands: job openings (recognising
sectors and occupations, qualification and skills
the need to replace those leaving);
demand, are often well served by longer time horizons
(d) education and training requirements: qualifications (10-20 years). More specific questions on information
typically needed; on study choice might be better served by more
detailed, but mid-term (5-9 years), forecasts.
(e) supply/demand balances;
Employment service providers are often interested in
(f) terms and conditions of employment (pay). short-term detailed forecast which are nor discussed in
detail in this volume of the guide (see Volume 4).
What is done and how it is done, therefore, depends at
least in part on who it is being done for and why. Generally, the longer the forecasting period, the less
Different audiences have very different requirements detailed and precise the forecast necessarily becomes.
for both detail and general content. Policy-makers are It is useful in identifying important developments on
more interested in overall supply/demand balances and the labour market and long-term shortages that policy
the general areas where investment in skills is needed. might address, but less so for immediate study
Training providers and individuals are interested in choices. In the latter case, students are interested in an
much more detailed information about prospects in answer to the question: what qualification will help me
particular areas. find a job quickly after I graduate?
A particular ministry may have special requirements. Both are necessarily interrelated. While it might be
For example, the ministry of the economy may have true, that longer-term forecasts might not be able to
more interest in developing alternative scenarios pinpoint developments to the year, the outcomes are
showing links to macroeconomic drivers and policy likely to be important even for study choices, as
interventions. graduates will eventually not only find a first job, but
also keep being employed over their entire working life.

84 Guide to anticipating and matching skills and jobs

5.3. A brief history of labour market how useful the information is, to guide the decision-
forecasting makers to tackle future expected imbalances. The
critical point is to evaluate whether information
One early step in labour market forecasting was the provision in itself provides sufficient value for the costs
work around the Mediterranean regional project in the of establishing these models.
early 1960s (Parnes, 1962; OECD, 1965). The aim of
these projects was to understand the changing
5.4. Best practices: when to use
economic structures in six Mediterranean countries:
Greece, Italy, Portugal, Spain, Turkey and Yugoslavia. It quantitative skills forecasts
involved outlining detailed educational requirements
We believe that quantitative approaches to skills
that would stimulate desired growth through best
anticipation have helped to shape the analysis of future
planning of education output. Around the same time,
skills needs. We use what we consider best practices
similar projects were initiated elsewhere; all involved
as a guideline in this report and, in doing so, we will
the belief that detailed education planning and
also mention and discuss alternatives. These
manpower analysis could provide detailed forecast of
discussions will necessarily lack the depth and detail
required manpower.
that we can provide for methodology that we have
Path-breaking work was done at the US Bureau of adopted ourselves.
Labor Statistics. For more than 50 years, they worked
Wilson (2008; 2012) et al. (2004) has provided
on projections that helped to understand the future
general reviews of quantitative approaches to skills
challenges of the labour market. The first projection of
anticipation, drawing lessons from work in the UK
the labour force, industry output and employment, and
and at pan-European level. The reviews provide a
occupational employment and job openings, was
summary of the models, tools and other approaches
presented as early as 1966.
used to help identify future skill needs across the
Out of these detailed manpower planning models and world, including an assessment of their strengths and
approaches developed, in the 1980s, a much humbler weaknesses.
analysis of expected future demand and supply of skills,
The conclusions of such reviews are that ‘best practice’
mainly used for policy planning and information provision
worldwide, involves quantitative methods, based on
(Van Eijs, 1994). While the models build on similar data
the use of large scale, multisectoral models to produce
infrastructures, the methodology, outcome and
a comprehensive overview of how structural economic
interpretation was more careful. Supply and demand
and technological changes are affecting the demand for
were modelled to interact to some degree, and resulting
skills. This is not the only approach to skills anticipation:
imbalances were not interpreted at face value or in exact
such methods need to be complemented by other
numbers. Different approaches to the confrontation and
quantitative and more qualitative approaches,
presentation of supply/demand outcomes evolved in
especially where data for building quantitative models
different countries, but the common factor in most
are limited. However, quantitative projections based on
countries was the emphasis on uncovering imbalances
such methods can be a cornerstone in developing
rather than predicting exact requirements.
systematic approaches and limitations in data or
The usefulness of skills forecasts nowadays should not models can be overcome by using the qualitative
be tested on direct predictive power but in terms of methods discussed in Part A of this guide.

Developing skills foresights, scenarios and forecasts 85

5.4.1.  Limitations of quantitative models comprehensive, systematic, consistent and transparent
set of projections can help to inform everyone about
It is important to recognise what such quantitative
the world they are likely to face.
models can and cannot do. On the positive side,
projections can: The views presented are not the only possible future.
They represent a benchmark for debate and reflection
(a) help to make assumptions about the future explicit
and as an aid to inform policy development. The
and transparent;
detailed projections present a carefully considered
(b) help to enforce systematic and logical thinking; view of what the future might look like, assuming that
past patterns of behaviour and performance are
(c) act as a focus for intelligent debate;
continued over the longer term.
(d) provide a useful counterfactual to assess policy
The results should be regarded as indicative of general
impacts (what would have happened in the absence
trends and orders of magnitude and are not intended
of the policy intervention).
to be prescriptive. If policies and patterns of behaviour
But they cannot provide: are changed, then alternative (perhaps more desirable)
futures can result.
(a) mechanistic ‘manpower’ planning;
Combining quantitative forecasts with foresighting
(b) precise indications of education and training
techniques (Part A) allows elaboration on the strength
requirements.
and weaknesses of quantitative forecasts. By including
Sophisticated econometric techniques can be used alternative scenarios and varying underlying
where data are adequate. This is a feature of much assumptions, different forecasts can be produced.
macroeconomic modelling. The implications for These variants allow deeper analysis of the underlying
occupations and qualifications are then developed in factors influencing an economy.
other modules using extrapolative techniques, for
Quantitative models are regarded as essential to obtain
example modelling and projecting employment shares
a robust and consistent sectoral employment scenario,
within industries for occupations and qualifications.
which is the starting point for any comprehensive
Such results are intended to provide a sound statistical assessment of changing skill needs.
foundation for the deliberations of all those with an
The advantages of such an approach include:
interest in the supply of, and demand for, skills. This
includes individuals, employers, education and training (a) the sectoral and other detail it provides;
providers, as well as the various agencies and
(b) the fact that it is typically comprehensive, covering
departments of government. While the future cannot
the whole economy;
be predicted with precision or certainty, all the
participants in the labour market make plans for it, even (c) logical consistency;
if these are simply based on the default assumption
(d) imposition of accounting constraints;
that the future will be the same as the past. The
rationale behind such projections is that a (e) recognition of economic constraints and influences;

86 Guide to anticipating and matching skills and jobs

(f) the fact that it helps make underlying assumptions However, many trends are robust and these can be
explicit; used to inform all those involved about the world they
are likely to face.
(g) consistent scenarios across all sectors.
Data quality is a key issue: results from such models
Such methods have some disadvantages and
cannot be more robust than the data upon which they
problems, including:
are based.
(a) technical limitations, within fixed resource limits;
The development and use of quantitative models is a
(b) limits to current understanding of the way labour resource-intensive process, requiring substantial prior
markets work; investments in data and analysis, often taking many
years. However, it is argued here that by building on
(c) the possibly limited relevance of the past, such
existing models and methods, it is possible to develop
models being based on an assumption of a
something quite quickly that can help to begin the
continuation of past patterns of behaviour;
process of building a robust approach to such
(d) the data requirements of quantitative modelling requirements.
approaches are substantial: long time series of
Several other tried and tested methods complement
consistent sectoral data on a range of economic
the quantitative approaches and are less dependent
and labour market indicators, especially
upon such data; these can be implemented in a much
employment, lie at the heart of any multisectoral
shorter time. However, there is no substitute for robust
modelling approach to assessing changing skill
quantitative information on the current position and
needs, ideally linked to other economic indicators
trends.
within a system of national accounts. They also
require many years of substantial investment;
(e) data limitations: often the data used to build models
were not collected with modelling in mind;
(f) resource costs of development and maintenance.
Quantitative models should not, therefore, be seen as
a panacea but in most countries that conduct regular
national assessments of future occupational and skill
requirements, they are regarded as an essential
cornerstone. Such models are increasingly being
adopted in developing, as well as developed, countries,
as the availability of data and the capacity for model
building improves.
Nobody can predict with precision the demand for, or
supply of skills. Nor is the future predetermined.

Developing skills foresights, scenarios and forecasts 87

Chapter 6.
General approaches in skills forecasting

There have been many different approaches to The most frequently used approaches to anticipating
anticipating changing skill needs worldwide. These future skill needs can be grouped under four main
have tended to reflect perceptions of what is desirable, headings:
as well as the practical limitations of what is feasible.
(a) ask employers (such as employer skill surveys – see
Both of these have changed substantially over the past
Volume 5);
50 years.
(b) quantitative models (formal, national level,
From the earliest attempts, those engaged in such
quantitative, model-based projections);
work have adopted model-based, quantitative methods
wherever possible, simply because quantitative results (c) sectoral studies (see Volume 3);
have been seen as a key output required by potential
(d) primarily qualitative methods (focus groups/round
users. The use of formal models has been advocated
tables and other Delphi-style methods, and
on various grounds, as detailed below. However, the
scenario development. These may include some
merits of alternative, more qualitative methods have
quantitative aspects but are generally more
also been recognised (Lindley, 1994).
qualitative – see Part A of this Volume).
Each of these approaches has its own strengths and
weaknesses which are summarised in Table 15.

88 Guide to anticipating and matching skills and jobs

Table 15.  Some alternative approaches to anticipating skill requirements

Alternative approaches Advantage Disadvantage

Surveys of employers or other Direct ‘user/customer’ involvement May be very subjective
groups, asking about skill Focuses on behaviour Inconsistent
deficiencies and skill gaps Myopic
Can focus on the margins too easily
(i.e. current vacancies) rather than on skill
gaps within the current workforce
Formal, national-level, quantitative, Comprehensive Data-hungry
model-based projections Consistent Costly
Transparent Not everything can be quantified
Quantitative May give a misleading impression of
precision
Ad hoc sectoral or occupational Strong on sectoral specifics Partial
studies (using a variety of Can be inconsistent across sectors
quantitative (model-based) and
qualitative tools)
Focus groups/round tables and Holistic Non-systematic
other Delphi style methods Direct ‘user/customer’ involvement Can be inconsistent
Can be very subjective

6.1.  Quantitative modelling available. In many cases, only one or two observations
are available on occupation structure and this clearly
The basic methods adopted for quantitative modelling
limits the sophistication of what can be done! Where
can be classified under the following headings:
more time series observations are available, much
(a) extrapolation of past trends; more sophisticated analysis is possible; this attempts
to find patterns in a time series that can be used to
(b) more complex time series methods;
predict its future path. Such approaches are widely
(c) introducing behavioural content. used in the business and financial world, although they
are much better at predicting short-term change than
Extrapolative techniques are often used, especially
longer-term patterns.
where only very limited time series information is

Developing skills foresights, scenarios and forecasts 89

History suggests that most linear (or more complex) 6.2.  Qualitative methods
trend patterns eventually come to an end and so
Most of qualitative approaches have been described in
should not be relied upon for medium- to long-term
Part A of this guide. They include the use of in-depth
forecasting. Behavioural analysis is an attempt to move
interviews with key stakeholders, including employers,
beyond patterns in observed time series data and to
detailed case studies (especially of particular sectors),
provide some understanding of how it is that these
scenario development, focus groups, roundtable
patterns have arisen and, more important, why they
discussions and similar mechanisms. These enable
may change in the future. Analysis draws on disciplines
‘soft’ qualitative data to be incorporated into analysis
such as economics and sociology for an understanding
and thinking about future skill needs alongside the
of what influences the behaviour of the key actors in
‘harder’ statistical information on which most
the economy and how this is reflected in the main
quantitative analysis is based (compare especially with
economic and social indicators that can be
Chapter 2 in which these methods are discussed in
measured (46).
depth).
Such understanding finds representation in
computerised ‘models’, which take the form of
6.3. Combining quantitative and
algebraic equations linking key variables. A model is an
attempt to provide a simplified representation of reality qualitative methods
that can help understand the phenomenon of interest
Bringing together and combining quantitative and
(in this case changing patterns in demand for skills in
qualitative methods is desirable in skills anticipation.
the labour market). The idea of engineers building
Quantitative results can inform qualitative research and
models in order to test out their ideas, for example
vice versa. Such holistic approaches, along with
testing model aircrafts in wind tunnels, is familiar.
innovative solutions in research and analysis, can better
Models in the social sciences suit biological analogy
cater for the time gap between the actual change in
better than an engineering one; as an example,
demand and the policy and implementation response.
scientists have built models of dinosaurs in order to try
to understand how they could fly. Social scientists
attempting to understand how societies and
economies work face problems such as:
(a) lack of fixed laboratory conditions;
(b) lack of good experimental data (they can only
observe outcomes).
Social science models are typically built using quite
sophisticated statistical and econometric techniques.
They are based on data drawn largely from official
sources, including national accounts and related
estimates of employment based on surveys of
employers and of households.

(46) Expected paradigm shifts or historic data series that are deemed not to be adequate to estimate or feed into the quantitative model could be
supplemented by qualitative methods such as scenarios (Chapter 2) and their translation into quantitative effects. Vogler-Ludwig et al. (2013)
use such a method.

90 Guide to anticipating and matching skills and jobs

Chapter 7.
Data

It is hard to predict the future without knowing either expansion demand basically determines the
the past or the present. Data, especially labour market allocation of sector employment demand across
data, are crucial to do skills forecasting. In the occupations, for which we need information on the
following, we describe the key data requirements for occupation by sector employment and
quantitative modelling as it is advocated in this report. development;
In some sense, it does not matter whether the data
(c) historic data on employment by occupation and
are collected on a regional, national or transnational
age-gender groups is necessary for estimation of
level, if that is the level in which the forecast is to be
replacement demand. Ideally, individual changes
made. In general, it is assumed that the data are
(gross flows) of workers would be observed, but
collected on a national level.
repeated cross sections with employment in
occupations by age-gender groups are mostly used
7.1.  Key data to identify net flows to estimate replacement
demand;
The following list summarises the key data that can be
used for skill forecasting. The degree and duration for (d) employment by occupation and qualification helps
which these data are necessary depends on the in bringing together supply and demand. Having
specific series and the aims (see individual description historic information on the development of this
of the data): relationship helps to identify and interpret reactions
of the economy to imbalances in supply and
(a) national accounts time series on output by sector
demand;
and factor inputs on capital and, more important,
labour. More detailed data on these (e) historic data on population development. Often,
macroeconomic figures, as well as detailed data these are already processed into population
sector, employment and labour market participation forecasts, which are important for the labour supply
rates by age and gender, price and wage forecast;
information, help specify many aspects of the
(f) consistent information on participation and
macroeconomic model in more detail;
graduation in education is ideal to model more
(b) historic data on employment by occupation, detailed supply processes. However, these data are
education and industry. These are usually collected often at least partly missing or historic experience is
in either labour force surveys (LFS), as with the severely disturbed by administrative changes. This
surveys underlying the EU-LFS, but also as a part of can be in terms of financing education, which is
a (partial) census. As many aspects of the important for opportunities and decisions on
estimations are determined using historic data to enrolling in education, but also for the types of
identify both relationships and time trends, longer degrees. Examples are the introduction of the
time series with many waves are preferred; the bachelor and master system in continental Europe,
normal case would be detailed data based on an for which there is no direct (data) precedence.
annual labour force survey. The estimation of

Developing skills foresights, scenarios and forecasts 91

7.2.  Data collection information such as qualifications or occupation makes
such administrative data useful for quantitative
Surveys are the most common form in which the key
forecasts by detailed levels of occupation and
data described above are collected. Data quality needs
qualification.
to be good for reliable forecasts. Many countries
already have some form of labour force survey, a good Other sources potentially useful in providing detailed
source for the key numbers and relationships information about skills or qualifications are various
necessary to generate skills forecasts. Labour market skills surveys. These usually sample group adult
surveys usually sample a group of respondents to respondents and enquire about the utilisation of skills
generate statistics that sufficiently reliable and in different contexts. To be beneficial for quantitative
robust (47). forecasts these surveys need to be sampled by
occupational group.
Census data usually take stock of the entire population
in a country. Given the magnitude of this task, a Data sources suitable for skills anticipation and
census cannot be repeated as often as surveys. In matching are discussed in more detail in Volume 1.
some cases a country uses a sample to fill information
between full censuses. A census is often less detailed 7.2.1. Classifications
about qualification and labour market information, but
Classifications of sectors, qualifications and
could supply the basic information to enable skills
occupations are important in running quantitative
forecasts if they cover information on employment by
forecasting models. These classifications allow
occupation and sector as well as demographic
combining different data sources and set the level to
information on age, gender and qualification.
which forecasts can generally be made. If existing
Employer surveys usually collect information on classifications do not reflect the level of detail to which
employment within firms, qualifications, skills and/or a forecast is to be done, alternative classifications
tasks requirements, and firm- or sector-related would need to be determined.
information. They have the advantage that information
Within the European context, the international
about demand by skills or qualifications can be
classifications for industry (NACE), occupations (ISCO)
identified directly. However, they are not commonly
and education (ISCED) are used. These allow using the
used or integrated as a key data source in quantitative
time series of the data under the assumption that the
labour market forecasts.
classification into the categories has not changed (48).
New data sources that add to the above modes of data Changes in classification pose additional challenges to
collection come from the increasing ease with which forecasting, as they usually introduce breaks in time
administrative data that are collected for a different series that have to be considered in the (estimation)
purpose can be used. For example, the social security models of the quantitative forecasts. Ideally, the
contribution or tax payments of workers in classification change can be applied retrospectively to
employment relationships are already collected in data that have been collected earlier, to have long time
many countries in such a way that key information can series using the new classification. In practice, this
be identified: the employment (numbers) by sector, ideal case is not often observed.
age and gender. Adding or requiring additional

(47) The size of the sample to be drawn depends on the variation in the variables of interest. The more variation in the key variables and the more
heterogeneous the population, the bigger the sample has to be. Many countries draw samples that come close to 1% of the working popula-
tion. Using stratification along several key dimensions of the population allows scaling down the size of the sample.
(48) That this assumption is not always valid, can be found in the discussion on data quality of the Cedefop project. Shifts in the ‘interpretation’ of
classifications can be found for many countries within the EU-LFS. For forecasting it can be important to identify those implicit breaks in data
series and adjust them so that they do not interfere with the estimation methodology.

92 Guide to anticipating and matching skills and jobs

National data providers often do not adhere (directly) to
international classifications. This allows them to
introduce detail in aspects that are important for the
economy – such as detailed information on the
vocational education and training qualifications in
Germany that are not always easy to fit within the
ISCED categories – but it poses the danger that the
classifications cannot easily be compared.
Specific aspects of use of standard classifications for
skills analysis are also discussed in Volume 1.

Developing skills foresights, scenarios and forecasts 93

Chapter 8.
Modelling approaches

8.1.  Macro models 8.1.1. The macro model for the Cedefop

skills project: E3ME
A key building block in quantitative forecasting can be
macro models. These models calculate the effects of E3ME is a well-established model of the
changes in key parameters and endogenous reactions European economy and labour market (49). It
and feedback loops based on economic theory or delivers detailed projections of employment by sector
estimates from historic data. They build models of key and country and detailed projections of the
interactions in an economy by including those economically active labour force by age (and gender)
elements that are expected to drive the economy as a that drive the more detailed skills modules. E3ME
whole and specifically the outcomes that model has treats Europe as a multiregional area, with each
been developed for. country treated as region within the whole. The whole
system is solved simultaneously for all sectors and
The advantage of macroeconomic models over
regions (countries).
econometric techniques of (trend) forecasting is in the
model’s ability to include key interactions. This also The model is based on empirical relationships
allows to ‘run’ the model to evaluate different and econometric estimation. The main data source
scenarios (views) of the outcome of some key is Eurostat and the model has recently been
drivers of economic activity, or to include specific updated for NACE revision 2. The revised model
elements for which the outcome is of key interest to distinguishes 69 industrial sectors (to be aggregated
the policy-maker (policy simulations). for presentation to around 40 industries). It is
compatible with ESA-95 accounting classifications.
Many established national and international macro
Labour supply is split by gender and five-year age
models have been developed for various purposes. The
bands.
Dutch Planning Office, for example, uses macroeconomic
models to develop a short- to medium-term forecast and E3ME includes a detailed treatment of the labour
analyse the Dutch economy (Saffier II), the Athena model market with sets of equations for employment
for short to long-term forecasts that include an analysis of (treated as labour demand), labour supply, average
sectors and form the basis for the long-term scenarios, earnings and hours worked. The equations for labour
and Worldscan, the model used to investigate and demand, wages and hours worked are estimated and
forecast international issues such as European integration solved for each economic sector, defined at NACE
or climate change impacts. two-digit level. Labour participation rates are
disaggregated by gender and five-year age band, and
Inforge is a macroeconomic model that is used to
multiplied by Eurostat population data to obtain labour
simulate developments on the German labour market
supply.
which has been used for labour market forecasts by
the German Employment Services (Lutz et al., 2003).

(49) The discussion in this textbox is based on the E3ME website (http://www.e3me.com). A full technical manual is also available on this
website.

94 Guide to anticipating and matching skills and jobs

Employment is modelled using national accounts data, each country and sector: estimates are a key input to
as a total headcount for each industry and country as a both the employment equations and the price
function of industry output, wages, hours worked, equations in E3ME. In the absence of growing output,
technological progress, and energy prices. Industry rising wages will increase overall unit costs and
output is assumed to have a positive effect on industry prices. These prices may get passed on to
employment, while the effect of higher wages and other industries (through the input-output
longer working hours is assumed to be negative. The relationships), building up inflationary pressure.
effects of technical progress are ambiguous, as
Average working hours in each sector are determined
investment may create or replace labour; this will vary
by the position in the economic cycle and technological
between sectors.
progress. The estimate of hours worked is an
On the supply side, labour market participation is explanatory variable in the employment equation (see
estimated as a rate between 0 and 1 for each gender/ above). Hours worked is defined as an average across
age group and country. Labour market participation is a all workers in an industry and incorporates the effects
function of output, wages, unemployment, and benefit of higher levels of part-time employment in certain
rates. Participation is assumed to be higher when regions and industries.
output and wages are growing, but falls when
unemployment is high, or social benefits create a 8.1.2. A model suitable for transition
disincentive to work. There is also a measure of countries: Hermin
economic structure and the relative size of the service
The structural Hermin model was developed by Bradley
sector of the economy; this has been found to be
(2000). It represents a simplified version of the more
important in determining female participation rates.
complex multisector Hermes model, originally
Participation rates determine the stock of employment
designed by the European Commission in the early
available (by multiplying by working-age population,
1980s for an international comparison of structural
which is exogenous). Unemployment, both voluntary
funds (community support framework) effects on the
and involuntary, is calculated by taking the difference
national economy (d’Alcantara and Italianer, 1982). The
between labour supply and demand.
simplification in the Hermin model allows its use of
In E3ME, wages are determined by a complex union this model in countries lacking statistical data (such as
bargaining system that includes both worker the pre-accession EU countries). The methodology is
productivity effects and prices and wage rates in the also suitable for modelling small open economies. The
wider economy. Other important factors include original Hermin model structure is composed of four
unemployment, tax rates and cyclical effects. Generally main sectors (manufacturing, agriculture, market and
it is assumed that higher prices and productivity will non-market services) and contains both the supply and
push up wage rates, but rising unemployment will the demand side of the economy (Bradley et al., 1995;
reduce wages. A single average wage is estimated for Barry et al., 2003).

Developing skills foresights, scenarios and forecasts 95

In several applications modified model designs were (b) specification of the mechanisms through which an
introduced and comprised five main sectors: economy is connected to the external markets. The
manufacturing, market services, construction, external (or world) economy is very important to the
non-market services and agriculture. Such modified economic growth and convergence of lagging
versions of the Hermin model have been used to economies, through trade of goods and services,
evaluate national strategic reference frameworks inflation transmission, migration and inflow of
effects in, for example, Czech Republic, Estonia, foreign direct investment;
Romania, Slovenia (Bradley et al., 2005), and Slovakia
(c) need to recognise possible conflicts that may exist
(Kvetan et al., 2006). The Hermin model was initially
between the actual situation in the economy
developed to estimate effects resulting from the
(captured in a Hermin model calibrated with the use
allocation of structural funds ESRI (Zaleski et al., 2004;
of historical data) and the expected future
Kvetan et al., 2006) and was further developed for
development of the economy. Estimation of
analysis of different problems. The Hermin model
parameters based only on past data is likely to be
should also be applied to labour market long-term
inappropriate (even where it is feasible); it may be
forecasting based on demand side of economy.
necessary to calibrate some parameters based on
The Hermin model framework focuses on key expert estimations and the current economic
structural features of a cohesion-type economy, of existing situation should be evaluated with caution.
which the following are important:
To satisfy these requirements it is inevitable to
(a) the degree of economic openness, exposure to evaluate the overall economic development of a given
world trade, and response to external and internal economy and to possess the necessary skills.
shocks;
The Hermin model structure has proved its flexibility
(b) the relative sizes and characteristics of traded and and applicability to many countries (ranging from
non-traded sectors, together with their developed to post-communist countries); it has been
development (factors such as production used for different types of analyses ranging from
technology and structural change); evaluation of EU funds (Radvanský and Frank, 2010) to
labour market analysis in Macedonia (FYROM). Current
(c) the mechanisms of wage and price determination;
methodological progress is oriented towards regional
(d) the behaviour and flexibility of the labour market application of the Hermin model, particularly to NUTS-2
with the possible role of labour migration; Polish (Zaleski, 2009) and NUTS-3 Slovak regions.
(e) the role of the public sector and the possible
consequences of public debt accumulation, as well
8.2.  Other economic modelling
as the interactions between public and private
sector trade-offs in public policies. Econometric forecasting modelling cannot progress
much further without fundamental shifts in the
The Hermin model and its modifications were
availability and quality of data available. There are
developed to analyse medium-term policy impacts of
arguments for developing computable models to fill in
EU structural funds implementation. To fulfil this goal
some of the gaps where the existing data limit what
some basic assumptions need to be borne in mind:
can be estimated econometrically. For many years
(a) disaggregation into a small number of crucial economists have been developing computable general
sectors that allows identifying and modelling the equilibrium (CGE) models. These now fall into many
key sector shifts in the economy over the future different classes, including those that explicitly
years of development; consider disequilibrium situations.

96 Guide to anticipating and matching skills and jobs

In the European project, Meagher et al. (2012) have data-hungry models based on input-output tables or
demonstrated the feasibility of developing such CGE social accounting matrices can be useful in such cases.
models although the examples developed are neither
Input-output models are simpler than those described
general (considering just a small part of the skills
above. Their purpose is not an economic forecast: they
demand and supply nexus) nor necessarily equilibrium
are not designed to project GDP but to model impacts
(focusing on how the labour market adjusts to resolve
of changes in final demand for products on the
imbalances). However, the CGE type approaches
production of different sectors and on employment.
enable a much more in-depth examination of the key
They are used to demonstrate how a specific scenario
drivers of change in different sectors, understanding
on the demand side – for example higher demand for
the underlying reasons behind the quantitative decline
some products or services by households, a change in
or expansion of particular skills.
direct foreign investment, or a change in government
spending – will influence the volume and structure of
employment and, by implication, the demand for
8.3.  Simpler models of employment change
education and skills. For example, an input-output
Transition and developing countries often face model for the Philippines was used to assess the
problems with data availability and quality, in particular impact of austerity measures on its labour market
when longer time series are necessary. Less (El Achkar Hilal et al., 2013).

Box 14.  Use of input-output data

The OECD regularly publishes input-output tables for a number of countries (www.oecd.org/sti/inputoutput). In
case of missing data for the particular country or region, input-outputs tables from similar closely-related contexts
can be used.
In the PERI study on the employment effects of green energy investments, the input-output tables for Ontario
were not available in sufficient detail. The national Canadian data were therefore used as an approximation.

Developing skills foresights, scenarios and forecasts 97

The data requirements for the input-output models are The core of the model is an input-output table which
sufficiently low to be applicable in different country shows how much each sector produces, how much of
contexts. A study in 31 developed and developing this production is used by other sectors and what is
countries across the world from 2011 showed that, the amount of final demand for each sector’s
with rare exceptions, data for this type of models production. Final demand is usually distinguished by
are available, although their level of detail and households, government, export and for capital
periodicity differs significantly. For example, published creation and inventories; the model can translate the
input-output tables in the US provide detail for final demand for products of a specific sector into
420 sectors, in Thailand for 180, and in the Netherlands inputs from other sectors which support it. For
for 25 (ILO-PERI, 2011). example, increasing demand for cars will not only
influence production in the automotive industry, but
The core data needed are:
also in sectors which deliver direct inputs such as
(a) input-output table for the last available year; plastic and rubber, metal or electromechanical
engineering, as well as indirect inputs such as chemical
(b) data on volume and structure of employment
or types of materials. Lower government expenditure
(typically from a labour force survey or eventually
on healthcare will also influence the demand for
from an establishment survey).
pharmaceutical products or catering services in
hospitals.

Figure 10.  National accounts data by expenditure category and by sector

Source: Authors.

98 Guide to anticipating and matching skills and jobs

Using the information on productivity in different Input-output models are a useful tool and are relatively
economic sectors, production can be translated into transparent. However, like other models they have
total demand for labour by economic sector. Further several limitations following from the assumptions on
disaggregation of the employment data by occupation which they are built.
or other characteristics can be done if we have data on
Basic input-outputs models assume that:
the structure of occupations in each employment by
sector. Labour force data on employment structure are (a) prices are fixed and do not change with changing
usually used for this but some establishment data demand. But in the real world increasing demand
could provide similar information (50). for a product may raise its price;
The model procedure can be summarised in the (b) productive relationships remain stable. The same
following steps (Meade, 2010): final products need the inputs from the same
sectors all the time. But change in technology may
(a) calculate the value of each final demand vector
require inputs from different sectors in the future or
(demand of households, government, for products
an international supplier can take over inputs which
of various industries), using either econometric
used to be delivered by a domestic sector in recent
equations or assumed values;
years;
(b) solve for sectoral output, using the total final
(c) there are no constraints on the supply side. Any
demand and input-output matrix;
change in demand will result in a prediction of
(c) project labour productivity in sectors using time proportional change in employment. But in
trend or assumption; conditions of rapid economic growth, in countries
with a high share of the population at pre-
(d) calculate employment in sectors from production
retirement age, there may not be enough labour
and labour productivity;
and/or skills to meet rising demand. Skills mismatch
(e) project compensation per employee in sectors can cause a significant supply side constraint;
using equation or assumption;
(d) everything is happening at the same time, the
(f) determine total compensation by sector as a changes in demand influence the inputs and
multiple of compensation per employee and employment in the same period. But it is more
number of employees in the sector; realistic that, for example, the effect of changes in
government expenditures would be sequential.
(g) form macroeconomic aggregates, including totals
of each final demand and value-added vector, GDP,
personal disposable income, total employment, and
the unemployment rate;
(h) multiply sector employment by the occupation
coefficient matrix to obtain total employment by
occupation by sector.

(50) However, in developing economies coverage of establishment surveys may be limited to the formal economy.

Developing skills foresights, scenarios and forecasts 99

Box 15.  The Lotus model for Vietnam

The Lotus model for Vietnam was developed by Inforum (University of Maryland) in 2010 as part of the activities
of an ILO project with the Ministry of Labour, Invalids and Social Affairs in Vietnam. It is a good example of the
development of a quantitative employment model in a country where the labour market information and analysis
has clear limitations. It shows that development of a model can, at the same time, be an incentive for the
development of an effective labour market information and analysis system linked to policy development
(Sparreboom, 2013).
An inter-industry macro model is a one that builds up macroeconomic totals from industry detail, and uses the
input-output solution at its core. The Lotus model currently produces a forecast for 10 years, up to 2020. It
provides forecasts of input-output accounts at the level of 16 industries, the macroeconomic aggregate of final
uses in current and constant prices, and provides employment projections for 21 industries comprising the
Vietnam economy. Detail by type of occupation is produced for 53 occupational categories, including several
aggregate categories.
Example of Lotus model results: manufacturing, which is the second largest sector in terms of employment
(6.6 million in 2008), is not projected to grow as fast as in the recent past. This sector is very much influenced by
the growth of net exports. The projection is for both export and import growth to slow compared to 2000-07. This
is due partly to a slowing in global trade due to the global economic crisis, but also to increases in import
requirements. Increases in domestic investment stimulate a strong demand for imports, as does strong growth in
household and government final consumption. The slower net export growth results in slower projected growth in
manufacturing output. This factor, along with fairly strong projected productivity growth, results in an anaemic
employment forecast for manufacturing. However, it should be noted that this projection is extremely sensitive to
the growth of net exports, particularly the exports component, during the period 2014-20.

Employment growth rates (Vietnam Lotus model)

Source: Meade (2010) and Vietnam Ministry of Labour, Invalids and Social Affairs (2011).

100 Guide to anticipating and matching skills and jobs

Depending on data availability, a more advanced Breaks in series, missing data or insufficient coverage
input-output models core can be developed to of the economy are very often obstacles to robust
overcome these limitations and produce additional modelling in transition and developing countries. The
analytical outputs. For example, changes in technology results of quantitative forecasts can only be as good as
over time can be modelled using input-output data the input data and development and calibration of a
from several years, while prices can be made quantitative model takes time. Expert evaluation and
endogenous. More detailed input-output tables allow qualitative approaches can be a valid and useful tool to
us to develop scenarios for more specific products and fill these gaps, at least during the earlier stages of
sectors. Using social accounting matrices instead of development of the anticipation system.
input-output tables makes it possible to distinguish
Both these reasons provide relevant justification for
between different types of household or analyse the
combining quantitative modelling with qualitative
impact of taxes and government spending in more
methods and expert judgements. Collopy and
detail. The dynamic variants of input-output or social
Armstrong (cited in Moniz, 2008) argue that accuracy
accounting matrices models allow us to consider the
of forecasts improves if they include some judgment
time dimension.
elements, for example:
The relatively high flexibility of input-output models
(a) combination of judgment forecasts with
makes them applicable in developing and developed
extrapolation;
countries. Additional developments of input-output
models, such as price dynamics or supply side (b) adjustment of current status by judgment;
constraints, are already on the way to more
(c) use of judgment, not computer, to adjust outliers;
sophisticated CGE models.
(d) adjustment of trend by judgment (52).
8.4. Qualitative inputs into quantitative In practice, there are many approaches to combining
forecasts and expert evaluation (51) quantitative forecasts with qualitative methods.
A frequently used option is a qualitative evaluation
Given the inherently uncertain nature of future
and interpretation of quantitative forecasting results.
developments, there are some doubts about the value
In the Netherlands quantitative results are discussed
of historic information for future forecasts. ‘This time is
within a group of (external) experts from employer
different’ is a slogan that has been used many times to
associations, sector councils, and government
indicate paradigm shifts in the economy, on labour
agencies. This feedback is included in the
markets or within technologies. This critical view of the
deliberations about the final interpretation of the
extrapolative capacity of history for future
quantitative results.
developments is an important reason to think about
expert evaluation in skills forecasting. In some countries qualitative methods are used to
provide directs inputs into a quantitative forecast. The

(51) This section has benefited from consultations provided by SkillsNet members, especially by Hector Politt (Cambridge Econometrics), António
Moniz (ITAS-Karlsruhe Institute of Technology) and Annette Cox (Institute for Employment Studies).
(52) In addition to the use of judgments in forecasts, the paper also suggests other tips how to make a forecast more accurate

Developing skills foresights, scenarios and forecasts 101

volume and form in which the qualitative aspects the level of study usually required) as well as numerous
influence the final outcomes of the projection vary. related occupations in other skill levels. The goal of the
constraining process is to limit the number of
The E3ME model used for Cedefop European forecasts
post-secondary graduates who move into low-skilled
produces the initial projections, based on the
occupations’ (Ignaczak, 2011). Comparing this ex ante
estimated model parameters, historical data and
scenario, prepared by analysts, with the ex post
assumptions about economic and population growth.
scenario which models actual outcomes that
Then the initial results are shared with a group of
postsecondary graduates face in the labour market,
national experts who provide their feedback; they may
can support analysis of education-occupation
also bring information on likely future trends which the
mismatch. Other expert inputs in the COPS model are
model was not able to take into account.
related to vetting of projected trends in expansion
The Canadian COPS model includes several entries demand and to the imbalances indicators. In the latter,
based on qualitative judgments. In the school-leavers a qualitative recent labour market condition
component of the model, analysts prepare a set of assessment is applied to adjust the implicit assumption
matrices which only permits employment of a graduate of the model that the occupation is balanced in the
in a related occupation. ‘The constraints are quite base year (Table 16).
lenient and workers are allowed to move to any
occupation within the same skill level (as defined by

Table 16. Canadian COPS model: the outlook for labour market conditions by occupation is
determined using observed conditions in recent years and projected trends in
jobseekers and job openings

Projected gap
between future
job openings and Job openings Job openings Job openings
jobseekers > = <
jobseekers jobseekers jobseekers
Recent labour
market conditions
Shortage Shortage Shortage Balance
Balance Shortage Balance Surplus
Surplus Balance Surplus Surplus

Source: HRSDC http://www23.hrsdc.gc.ca.

102 Guide to anticipating and matching skills and jobs

Sometimes the qualitative inputs are used to form a The ultimate decision on how to combine quantitative
whole component of the forecast. There is no robust forecasting with expert inputs depends on the country
model for forecasting employment by sectors in the context. Data gaps, models at earlier stages of
Czech Republic so expert scoring of future productivity development, forecasting in rapidly changing conditions
and employment in the sectors was used in or ambition to cover new phenomena in the forecast
combination with extrapolation to break down total may require more direct qualitative inputs. The
employment into sectors. The weight of the expert availability of quality long time series and well
opinion for the final projection was generally 50%; it developed quantitative tools allows quantitative and
was higher in sectors more likely to be influenced by qualitative results to be brought together at a later
the economic crisis (53) or more sensitive to political stage of the anticipation process, when the
decisions. recommendations are formulated.
Within the German forecasting model for the Ministry
of Labour, several qualitative studies on key drivers of
future economic changes form the basis of qualitative
scenarios that are used to adjust and guide quantitative
models (Vogler-Ludwig et al., 2013).
A final example shows the use of expert judgements
as an important integral component of a highly
developed quantitative forecasting system. The US
Bureau of Labour Statistics (BLS) US uses expert
evaluation in determining expected developments in
individual occupations. While sectoral and economic
trends use economic (forecasting) models, experts
within the BLS are responsible for a view on
development of their occupations. The setting is that
these are experts within the BLS that track occupations
and their development over time as well as technology
and organisational trends related to these occupations.
The shares of occupations in sectors are adjusted for
the target projection year based on the experts’
judgments.

(53) The forecast was prepared in 2009 the past employment data did not reflect the impact of the recession.

Developing skills foresights, scenarios and forecasts 103

Chapter 9.
Components of skills forecasting

9.1. Supply Education choices are taken at various moments in life,

influenced by, for example, economic motives,
Ideally, analysis and projections of the changing
demographics, abilities, and socioeconomic
numbers of people holding formal qualifications should
background. At national level, the distribution of a
be built around a stock-flow model (Bosworth and
country’s population and labour force across the
Wilson, 2011), focusing explicitly on the inflows to the
various levels of qualification is also affected by the
active population of individuals with different level of
state of the economy and government policy on
qualifications. Such models allow for medium- to
education expenditure.
long-term trends in rates of acquisition of qualifications
and economic activity rates, while also allowing for the However, such models are very demanding,
outflows of individuals from the active population as requiring consistent data on stock and flows as
they come to the end of their working lives. well as information on the factors that drive
behavioural choices. Development of a stock-flow
In the Netherlands, supply is generated based on
model is often beyond the scope of skills forecasting
demographic flow models of the Ministry of Education.
projects; analyses are often restricted to a focus on the
These flow models determine the transition probability
stocks of education attainment utilising simple
between the different states of the educational career,
methods (54).
i.e. the proportion of students that leave one form of
education for another, where these movements are At macroeconomic level, other studies have explained
separated by having obtained a degree or not. These the importance of more general economic factors.
flow forecasts by the ministry are, however, A study by the European Commission focused on
differentiated only by the level and type of education, average aggregate macroeconomic trends (Livanos and
not the fields. To allow for the fields of education the Wilson, 2008). It suggests that, at this level, the main
Research Centre for education and the labour market , factors affecting educational attainment can be
ROA, has developed a module that allocates the flow summarised by the following equation.
outcomes of the ministry to the final education states
by level and education (for up to 110 education types). X = f(G,W,E,R,T,U,S)

(54) In the Netherlands, the use of supply flows is included in their forecasting model. Separate analysis on flows has been conducted by ROA,
and the results from the two methods compared (Cörvers et al. 2010).

104 Guide to anticipating and matching skills and jobs

Here X denotes average educational attainment, Which type of econometric model is chosen to
G denotes GDP growth, W denotes wages, E denotes translate sector development into demand by
the employment rate, R denotes returns to education, occupation or qualification depends on several aspects;
T denotes personal taxes, U denotes unemployment best choice depends on the data available for that
benefits, and S denotes education subsidies on the particular industry and model fit of the various
private incentive to invest in education (Livanos and specifications. Gaps in the data, and statistical noise,
Wilson, 2008). These factors are suggested to can result in unstable estimates. Judgement is also
have an impact on a country’s overall levels of required for the final choice, which is often based the
education. However, there is some ambiguity in evidence of qualitative analysis and other sources. This
specifications, such as in the direction of causality: overall approach can be regarded as focusing on the
does education lead to GDP growth or is it an demand side.
outcome from it?
The number of people in employment by occupation is
determined by multiplying employment per industry by
9.2.  Employment change the shares of occupations in that industry’s total
employment, and then summing over all industries.
The overall level of employment by industry is usually
derived from a macroeconomic model that takes The number of people in employment by qualification
feedback-loops into account. Overall employment by is determined by multiplying employment by
sector can then be translated by a separate model or occupation by the shares of qualifications in that
module into occupations using shares of employment occupation’s total employment, and then summing
by occupation within each industry. In a similar fashion, over all occupations. This process delivers a consistent
translation of overall employment can be translated set of employment estimates across all three
into qualifications demanded. In both cases, this can dimensions (sector, occupation, qualification).
be done in various ways, ranging from holding the
Expansion demands for both occupation and
shares fixed, to fitting more complex non-linear
qualification are the net change in employment from
regression trend models.
these equations, calculated between any two years.
Modelling employment shares can include: For example, total expansion demands by occupation
between 2010 and 2020 can be calculated by
(a) fixed shares;
subtracting the calculated values for 2010 from those
(b) OLS logistic trend estimates; for 2020.
(c) OLS linear trend estimates;
(d) OLS linear trend (moving) average estimates;
(e) multinomial logistic regressions.

Developing skills foresights, scenarios and forecasts 105

Box 16.  Examples of econometric specifications in Cedefop’s expansion demand

The projections of occupation and qualification shares are conducted separately, and are based on a similar
methodology, in turn similar to the supply share estimates. Various factors might explain changes in occupation
and qualification structure and estimation of complex, behavioural models is complicated in practice, mainly due
to data restrictions. This report presents results based on simple models that have time as the only repressors.
However, in future stages of this project a behavioural element will be included in the analysis to provide better
insights into factors that affect changes in occupations and qualifications structure.
The models estimated include a range from the general form shown in equation:
Sijt = F(time)
where Sijt denotes the share S of occupation i in industry j in time t. Three main methods of analysis were
adopted. These are based on analysis of occupations/qualifications shares in employment extracted from the
EU-LFS data, and adopting specifications as in the equation above.
These range from simple extrapolation between fixed points, to various methods based on ‘line fitting’. The latter
includes fitting:
• a linear trend, [S = a + b*Time];
• a log linear trend [Ln(S) = a + b*Time]; or
• a logistic equation [Ln(S/(1-S)) = a + b*Time].

For the shares to add to 100% an ad hoc external constraint is imposed in all the above models.

9.3.  Replacement needs Projections of replacement demand require three main

inputs:
Replacement demand focuses on what might be called
‘permanent or semi-permanent’ withdrawals from the (a) a forecast of demographic development within a
employed workforce. These include retirement, family country;
care or other reasons for temporary leaving the
(b) a forecast of (changes in) participation, preferably by
workforce, and emigration.
gender and age groups;
Replacement demand often provides a very large share
(c) an estimate of the outflow by occupation/education
of the job openings in an economy. It easily surpasses
category, gender and age group.
the share of job openings based on changes in the
employment structure, such as growing occupations or The outflow estimate by occupation or education,
growing demand. Estimating replacement demand to gender and age can be developed using the cohort
identify job openings by qualifications or occupations component method which is based on comparing the
can be an important part of the skills forecast. number of persons in the same age cohort at two
different points in time (55).

(55) The described methodology is based on that developed for the Netherlands (Cörvers et al., 2010) and also used for the European skill fore-
cast (Kriechel and Cörvers, 2009, Kriechel and Sauermann, 2010). Similar models using variants of the methodology are used in several other
countries, both within and outside the EU (BLS, 2008; Fox and Comerford, 2008; Shah and Burke, 2001).

106 Guide to anticipating and matching skills and jobs

From the labour force survey, it is possible to analyse Data on age structure are required since many of the
the demographic composition of each occupation or flows, especially retirements, mortality and occupation
education. This makes it possible to estimate specific mobility, are age-specific. Age structures vary
rates of outflows for each occupational class or significantly by occupation and education type.
education type. Projections of occupational Differences in age structure across occupations influence
employment typically focus on the total numbers of replacement demand due to occupation mobility and
people that are expected to be employed in such jobs retirement, which are age-related. Even inter-occupation
in the future. While these estimates can provide a mobility is affected differently over occupations.
useful indication of areas of change, highlighting the
Realised retirement rates can vary by gender and
likely net ‘gainers’ and ‘losers’, they give a misleading
by age and may differ for different occupation groups
impression of job opportunities and skill requirements.
and education. Outflows at older age are often
Even where the projections indicate significant
taggedas belonging to early retirement or retirement.
employment decline over the medium term, there may
Within replacement demand models it is also possible
nevertheless be quite good career prospects with
to include a mandatory or statutory retirement age. The
significant numbers of new job openings. This is
assumption is then made that all employees beyond
because, as long as significant numbers are still likely
that age will leave the occupation into retirement.
to be employed in the future, employers will need to
replace those employees who leave because of Occupation mobility is an additional source of
retirement, career moves, mortality, or other reasons. replacement demand in some occupations, although
Replacement demand may often dwarf any structural not for all. The full occupation mobility flow matrix
or expansion demand, resulting from growth in indicates that some occupations such as managers
employment in a particular category. It can easily tend to gain employment as people are promoted from
outweigh any negative changes from projected others. The cohort component approach does not
employment decline. differentiate replacement demand due to occupation
mobility; it only identifies net mobility.
The main problem in estimating replacement demand
is that official statistics place much more emphasis on Another potential outflow is mortality. While losses due
measuring stocks of people in particular states, rather to death are not great for individual age groups up to
than flows from one state to another. Yet it is the age of 65, they can cumulate to produce significant
measurement of such flows, which is essential to losses over an extended period. The focus of the
estimating replacement demand, ideally requiring a full cohort component methodology is to identify overall
set of demographic accounts that traces individuals’ outflows over cohorts, irrespective of the cause
movements from one socioeconomic position (such as (sickness, death, family obligations).
employment in a particular occupation) to another
The overall scale of change is dependent on the length
(such as retirement). In practice, such a complete set
of period considered, as well as the opening stocks
of accounts is rare even at national level.
and the age structure of the current workforce.
The information on outflow rates is often estimated Replacement demand is also dependent on the level of
using stocks of age-cohorts within occupations for occupation aggregation. With lower levels of
several years. Using the year-to-year changes the aggregation, observed occupation mobility is lower. For
outflow-rates by occupation-age cohort can be most, projections rates of outflow are assumed to be
estimated. However, these estimates may not allow constant over time. The scale of structural or expansion
discrimination between the reasons for the outflow demand (which in some cases may be negative) is
that leads to replacement demand. usually modest compared with replacement needs; in
most cases the latter offsets any negative change.

Developing skills foresights, scenarios and forecasts 107

There are three components to the model: based on the number of persons of the same birth
cohort who were employed at two different times can
(a) a forecast of demographic development within a
be calculated (Shryock et al., 1980). In essence
country;
repeated cross sections are used comparing the
(b) a forecast of (changes in) participation on the labour outflow of workers through these methods.
market, by gender and age groups;
The second step in modelling is to translate these
(c) an estimate of the outflow by occupation coefficients of outflow-percentages into the
(education) category, gender and age group replacement demand by occupation class. This
methodology measures only the net flow to or from a
Components (a) and (b) are considered external to the
class (56).
replacement demand model; they are set to be
consistent with the other elements of the model. The third step is to project historically measured net
Component (c) is derived using the cohort-component replacement demand rates per age-gender group,
method described below. measured by the estimated coefficient for a
particular occupation class onto the age-gender
The first step in modelling future replacement demand
structure of workers at the beginning of the forecasting
per occupation class is a description of the inflow and
period and for each subsequent year. The model can be
outflow patterns by occupation class in a historical
improved by correcting for participation rate changes,
period. The historical experience of outflow of specific
in which an increase in participation implies lower
(age x gender) groups within an occupation or
replacement demand. Higher worker participation
qualification is used to predict future outflows based
rates manifest themselves in this model by lower
on the implicit assumption that past behaviour has
outflow rates (57).
something to tell about future outflow. Any type of
outflow coefficient can be used; the closer this outflow Crucial factors in the estimation of replacement
coefficient to the true behaviour of labour market demand are the age and gender distribution of workers
participants, the better. in a specific occupation. Reliable measures of this
distribution in the base year, and in the past, make the
Because there are no appropriate data for mobility
estimates more reliable.
flows on the labour market, stock data are used. With
the cohort components method, cohort change rates

Box 17.  Simplified replacement demand: concentrating on retirement outflows

If detailed data on the age/occupation or age/qualification structure are unavailable, it is possible to approximate
replacement demand by its main drivers. The biggest share of replacement demand is generated through
retirement or early retirement. If the share of older workers is available by occupation (all workers above 55 years
of age) assuming the outflow of these workers over the remaining period up to the legal retirement age is a
workable approximation of the main share of replacement demand.

(56) This means that replacement demand satisfied by returning workers of the same age cohort is not measured, so replacement demand is
actually measured for newcomers on the labour market.
(57) For a more detailed description, see: Kriechel and Sauermann, 2010; Kriechel and van Thor, 2011.

108 Guide to anticipating and matching skills and jobs

Chapter 10.
Specific issues in skills modelling

10.1.  Technological change capital and R&D, reflecting the production technology
specific to each sector, and a short-term relationship
Technological change, changing trade patterns,
with changes in value added, capital and R&D. The
outsourcing and different forms of production, can lead
results indicate that high-skill occupations have a
to important shifts in the economic structure. This can
negative and significant elasticity with respect to value
lead to important changes in the sector, occupation and
added but a large and significant positive elasticity with
qualification structure. There is evidence of a shift from
respect to R&D. Output expansion in a sector led to a
unskilled to skilled workers (Machin and van Reenen,
decrease in employment in high-skilled occupations
1998; Autor et al., 2003; Machin, 2001; Murray and
within that sector. However, this effect can be partly or
Steedman, 1998), but also towards a polarisation
fully compensated by the complementarity of
of occupations into high skill and very low skill
high-skilled workers with new technology, as indicated
(Goos et al., 2009). The main causes of this change
by the positive elasticity of employment in high-skilled
have been suggested as using real incomes and
occupations with respect to R&D. Intermediate-skill
related changes in patterns of demand for goods and
occupations have a positive and significant elasticity
services international trade, and skill-biased
with respect to capital. The results have been used to
technological change.
complement the expansion demand model, to include
Briscoe and Wilson (2003) used annual data from these shifts into the allocation of sector developments
successive UK labour force surveys to model to occupations.
occupation trends over the period 1981 to 1999. They
developed time series models for some nine
occupation groups across 17 industry sectors. The 10.2.  Skill mismatch
variables they used included output, wages,
One of the problems skill forecasting wants to address
unemployment, and export and import shares, which
is to avoid skill mismatch, by no means a new
were combined with different technology (trend) and
phenomenon (58). Overeducation – people who work in
interactive dummy terms to identify the most
a job below their education level – signals
significant determinants of the changing demand for
overinvestments in education which are costly to
skills.
society, while undereducation – people who work in a
Cörvers and Dupuy (2006) developed a model to job above their education level – signals
explain the occupation structure of sectors of industry underinvestments in human capital that could result in
in the Netherlands. They estimated the structural productivity loss. The literature discusses over- and
parameters of a model for the period between 1988 underqualification at individual level (such as wage and
and 2003 using system dynamics OLS techniques to welfare effects of skill mismatches, see Hartog, 2000;
account for the employment dynamics dependence Sloane, 2003; Leuven and Oosterbeek, 2011). These
across occupations and sectors of industry. Cörvers studies show that overqualified workers suffer from
and Dupuy (2006) distinguish between 13 sectors of wage penalties relative to workers whose education is
industry and 43 occupation groups. They argue that better matched to their jobs, whereas they earn more
employment series by occupation and sector have both than others at their respective job level if they are
a long-term relationship with levels of value added, overqualified.

(58) Richard Freeman’s 1976 book The Overeducated American was the first to touch on the issue of individuals working in jobs below their level
of education. Ever since, there has been a lively debate as to the cause and consequences of skills mismatch (and overeducation in particu-
lar), and the body of literature has been growing.

Developing skills foresights, scenarios and forecasts 109

There is currently a tendency for people to attain higher issues regarding imbalances need to be considered with
level qualifications in all economies. This move towards some care if misleading inferences are not to be drawn.
higher levels of education has the potential to result in
Initial projections of the demand for and the supply of
overqualification if skills demanded do not increase in
skills are developed independently. Many adjustment
line with supply. In general, it is expected that the
mechanisms operating on the labour market reconcile
increase in the number of people with higher level
imbalance and mismatches as they evolve: short-term
qualifications grows broadly in line with the expected
influences include adjustments in wages and different
trend in skill demand, at least in advanced economies.
kinds of mobility, as well as changes in the ways
Increase in the high educated workforce is essential to
employers utilise available skills. In the longer term,
the development of a knowledge-based and innovative
both supply and demand adjust to imbalances and the
economy.
short-term adjustments they have created. Generally,
A perceptive theoretical framework is provided by employers will not cease operating if they cannot find
Sattinger (2012) who introduces two concepts of skill the ideal mix of skills but will work with what is
mismatch: short-term qualitative skill mismatch and available.
long-term qualitative skill mismatch. Short-term
There are several techniques to identify and analyse
qualitative mismatch is a temporary mismatch that is
imbalances. Koucky et al. (2010) describe the Australian
the result of matching under imperfect information. Not
and Canadian forecasting models, where supply and
all workers find adequate jobs for their qualifications,
demand are matched taking the differences between
nor do all firms find the perfect candidate. The implied
them as imbalances. In the Canadian model the
policy would be that the matching process should be
emphasis is on the occupation side, while in Australia
organised more efficiently, either by making
the emphasis is on education level and (broad) field.
information more transparent or by decreasing the cost
of its acquisition. Long-term qualitative mismatch is The Dutch procedure is to derive imbalances after
more structural; it is the result of changes in some of the discrepancies have been solved. This
qualifications or skills demanded in jobs which are not, should mimic the market mechanism that routinely
or only poorly, reflected in the worker’s education. The solves minor discrepancies automatically. However, the
policy implication would be the need to anticipate such procedure does not solve all imbalances, nor is that the
long-term mismatches and adapt education policies to intention. The substitution process often carries over
react to such shifts. imbalances from an initial education type with
imbalance to other, related education types, which aim
The skills mismatch and to use of labour market
to solve the initial imbalance (Cörvers et al., 2010).
information for better matching is the topic of Volume 1.
The ultimate goal of skill forecasting is to make
predictions about future imbalances in supply and
10.3. Imbalances
demand. Understanding the main outcomes of the
Comparing current demand and supply projections is forecasting exercise comes from presenting key trends
problematic, both practically and theoretically. Unless in a comparable way. Bringing together supply and
the two sets of results are based on common data and demand, however, is also the point at which all
are carried out simultaneously, they cannot be directly accumulated inaccuracies might show. In an ideal
compared. Various other conceptual and methodological world, indicators would be insensitive to the

110 Guide to anticipating and matching skills and jobs

accumulated error while showing the trends clearly. 10.5.  Regional forecasting
The results of the imbalance indicators should be seen
Skills forecasting in many cases takes place at regional
as indicative of a situation that would evolve if current
rather than national level: regional forecasts can exist
trends on sector, occupation and education level
alone or with national forecasts as well. It is natural to
continue to develop in the same way. Within the
think at regional level, as most countries match supply
imbalances it is shown that discrepancies will arise
and demand predominantly using regional supply and
that have to be solved on the labour market. It is
regional demand. Skill imbalances can then be
difficult to assess ex ante in which way such a market
addressed by regional actors who are often the
process will solve the imbalances.
relevant decision-makers.
Regional forecasting follows the main methodologies
10.4. Indicators presented in the second part of the guide as well as
qualitative elements from the first part. Some specific
Indicators provide a translation of some aspects of the
regional problems are addressed in this part, while we
forecast outcome. They provide and summarise
do not repeat the methodological issues already
information that comes from within the forecasting
addressed for national forecasting.
model, or that combines it with external information.
A good indicator translates outcomes to ease Ideally, a regional forecast is based on a national model
interpretation. A typical indicator shows the demand and forecast. In such top-down approaches, the results
pressure on specific occupation or qualifications that of individual regional forecasts reflect overall
indicate imbalances that might lead to recruitment development in the economy. Wilson (2008) sets out
difficulties in the future. The opposite can be true, with the requirements for regional forecasts that are
the indicator showing, for a given qualification, an embedded in national forecasts: they take national
oversupply which indicates poor labour market effects into account and make full use of any regional
opportunities for those achieving the qualification. information that might be available (59).
Many more possible indicators can be derived directly Regional skills forecasting will not always have access
or indirectly. An early discussion of indicators that can to a national skills model, or may not always be
be used in a quantitative forecasting framework to embedded into one. Many forecasts can only make
support the work of guidance counsellors, companies, use of a regional setting, in which the national part of
and school leavers looking for adequate training can be the development has to be approximated more or less
found in De Grip and Heijke (1988). precisely.

(59) See Kriechel et al. (2008) for a description of Dutch regional skills forecasting and contributions on regional forecasting in Knobel et al. (2008),
especially Wilson (2008).

Developing skills foresights, scenarios and forecasts 111

Chapter 11.
Examples of skills forecasting

Many countries have anticipatory measures in place skills needs studies. In many newer EU Member
and others are building and developing systems for States, information on skill needs is collected in one-off
skills anticipation. Approaches vary, but all have a studies or projects. Some countries, including
common objective: to improve the match between Germany, Spain, France, Latvia, Portugal and Romania,
labour demand and supply. There is a clear shift from have multilevel schemes for policy-making and
top-down, manpower planning towards informing all research in anticipating skill needs, linking anticipatory
labour market participants about the knowledge and activities at national, regional and sector levels.
skills required, and changes in job contents, in different
Most countries acknowledge that methods to
occupations.
anticipate skill needs have to improve. Quantitative
There are various approaches to achieve, combining and qualitative anticipation methods and results are
different methods and the efforts of many different not always consistent, and regional anticipation
institutions and projects. These range from analysis of systems also need improving. Most countries plan to
quantitative/qualitative trends in the labour market, develop models and improve methodologies.
through development of policy proposals to bridge the Norway and Sweden will broaden the tasks of
quantitative gap/qualitative gap, and to fostering existing bodies to include anticipation and identification
cooperation between firms and TVET (60) providers. of skills needs. Spain has already set up a national job
However, implementation of policy in practice, and market observatory network. Social partners also
programmes/actions to bridge the gaps identified in emphasise the importance of plans to establish
the results, remains the most difficult point. national information systems, develop networks for
skills assessment and to participate in wider EU
Many countries carry out regular skills forecasts. Most
studies.
long-term forecasts are done at national level, for
example in Cyprus, France, Germany, Malta, Norway
and the UK. Short-term forecasts are undertaken more 11.1.  Pan-European forecasts: Cedefop
generally at regional or local level, often through public
Anticipation systems across EU Member States,
employment services (PES), as in Latvia, Austria,
although having many similarities in features and
Poland and Slovenia.
development trends, are quite different in many
Other countries are currently developing their respects, such as detailed methodology and in data
forecasting methodologies, such as Romania and sources used. In consequence, they do not produce
Slovakia, including national strategies for skill comparable data at European level.
anticipation, as in Bulgaria, the Czech Republic, Latvia
Developing pan-European anticipation systems is
and Poland.
important for providing comparable data on future
Many countries, including Bulgaria, Germany, Estonia, challenges across Europe. Cedefop (with the support
Spain, France, Italy, Cyprus, Lithuania, Luxembourg, of the European Commission) has since 2008
Hungary, Poland, Slovakia, and Finland, conduct produced regular forecasts of skill supply and demand
employer surveys or annual labour market forecasts to for the EU and each Member State up to 2020,
inform TVET provision planning. Cyprus, Finland, including details by broad sector, occupation groups
France, Malta, Norway and Portugal conduct sector and education levels.

(60) TVET is an international term used to denote vocational education and training (VET). The two terms are used interchangeably throughout
this publication

112 Guide to anticipating and matching skills and jobs

To complement these quantitative forecasts, the a transversal analysis of the evolution of skills needs in
European Commission has also published a series of the selected sectors, taking into account their global,
studies on emerging competencies and future needs. national and regional contexts. The aim is to anticipate
These cover 18 economic sectors, and provide possible changes in jobs and skills needs up to 2020.

Box 18.  Imbalances in the Cedefop forecast: RAS procedure

The following contrived example aims to describe the module to reconcile supply and demand. From the initial,
individual forecast of supply and demand, a net supply by education level is calculated, being the supply minus
unemployment. To match supply (S) and demand (D), we reconcile them using a RAS procedure, within which,
the allocation of education levels within occupations is done such that the total of all workers with an education
level across occupations matches the predicted supply totals.
Consider a projection with the base year 0 and a projection into the year 5. Within that period, supply and demand
are extrapolated independently. Supply is based on the population trends, and the development of the education
shares within different age groups, while demand is extrapolated from the sectoral forecast and the projected
within sector occupation and education shifts, based on past developments.
This implies that the allocation of education levels within occupations (by sector) is a good prediction of
adjustments that an occupation has experienced in the past. Based on historic evidence, we can assume that, if
larger shifts in the education composition of an occupation have taken place, it will be possible to do that in the
future as well.
While the reconciliation takes place, the supply of education (levels) has to match the implied demand of
education levels from the demand. Let us take a simple example. The contrived example depicted in the table
below exemplifies the working and the interpretation of the processes within the RAS framework. In the example
we assume to have three occupation and three education levels. Three occupation levels are sufficient to show all
relevant relationships, but can easily be extended to any number of occupations.

Starting values within a contrived RAS example

Low Intermediate High Total
Occ./Edu. Demand forecast
education education education row
Supply forecast 100 200 150 450
Occupation 1 175 75 50 50 175
Occupation 2 200 100 80 20 200
Occupation 3 75 25 25 25 75
Total column 450 200 155 95

Source: Kriechel and Wilson, 2010.

Developing skills foresights, scenarios and forecasts 113

 The table has several elements: it specifies the outcome of the supply forecast of education in the first row,
i.e. the number of low-, intermediate-, and high-educated that will be employed. We assume that they will be
employed, as the supply depicted here is net of unemployment. Then there is the outcome of the demand
forecast in terms of total number in the occupations 1 to 3 in the first column. These supply and demand
outcomes can be seen as fixed, providing a frame in which the underlying allocation of education within
occupations has to be fitted. The last column and row sum the allocated workers within the occupation (column)
and within education (row). In the example, we used the estimated demand allocation of education levels within
occupation as starting values (numbers are in grey, inner matrix of the table). The interpretation is simple: these
are the values that firms would demand, if the current trend of development could go on undisturbed by any
supply problems.

Final values within a contrived RAS example

Low Intermediate High Total
Occ./Edu. Demand forecast
education education education row
Supply forecast 100 200 150 450
Occupation 1 36 75 61 78 175
Occupation 2 200 52 111 37 200
Occupation 3 75 12 28 35 75
Total column 450 200 155 95

Source: Kriechel and Wilson, 2010.

We can already interpret the discrepancies the table gives us: total demand by education is higher in lower
education than the supply (200 demanded, 100 supplied), and lower in the intermediate (155 demanded,
200 supplied) and higher education (95 demanded, 150 supplied). The economy in this contrived example has
thus shifted to provide more intermediate- and higher-educated than required initially, while the demand for
low-skilled cannot be met.
Within our economy we have to resolve the supply and demand discrepancies. Firms employing the various
occupations would now try to fill the occupations with workers of different levels of education from what was
initially demanded. In our case, intermediate- and higher-educated will fill the gaps that lower-educated have left.
The RAS procedure would, at this point, reweight the inner matrix using the ratio of (total demanded in education
level) over (total supplied in education level). This scales demand by education level to match supply, but the
occupation totals will – after this first (half) iteration of the RAS procedure – not match the number required. To
resolve this, the matrix is reweighted again, using as weight the (total of occupation in row) over the (total
demanded in occupation). This reweights the matrix to ensure that the total demand in occupation is met. Given
that this first part of the procedure will knock the total of the demanded education level somewhat away from the
supplied level, we have to repeat the two steps for several iterations until the matrix converges to values where
demand and supply match. The factors of the RAS procedure used to adjust the cells can be related to underlying
(relative) price changes, i.e. wages that adjust to balance supply and demand.

114 Guide to anticipating and matching skills and jobs

The current policy agenda favours further
developments in this area, and many EU Member
States are positive about developing a common
approach, or a common European tool, for anticipating
skill needs. A key problem is the diversity of current
methods, tools, statistics and definitions used. But
most of the countries also mention different stages of
economic development as a key issue. Nevertheless,
countries recognise the need for a common approach
which should consider the data limitations and local
knowledge. This should complement rather than
substitute for activities at national level, as well as
representing added value for EU Member States by
pulling together existing analyses and research.

Developing skills foresights, scenarios and forecasts 115

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Developing skills foresights, scenarios and forecasts 119

ACRONYMS

BLS Bureau of Labour Statistics

CBO classificação Brasileira de ocupações [Brazilian classification of occupations]
CGE computable general equilibrium
EU European Union
GDP gross domestic product
ILO International Labour Organization
IFTF Institute for the Future
IPTS Institute for Prospective Technological Studies
ISCED international standard classification of education
ISCO international standard classification of occupations
JRC Joint Research Centre
LFS labour force survey
MCM methods combination matrix
NACE Nomenclature statistique des activités économiques dans la Communauté européenne
[Statistical classification of economic activities in the European Community]
NUTS nomenclature of territorial units for statistics
OLS ordinary least squares
R&D research and development
S&T science and technology
SENAI National Service for Industrial Training
SME small and medium-sized enterprises
SWOT strengths, weaknesses, opportunities, and threats
TVET technical and vocational education and training
UNIDO United Nations Industrial Development Organisation
US United States
USD United States dollar

120 Guide to anticipating and matching skills and jobs

ANNEXES:
COUNTRY CASE STUDIES ON
FORESIGHTS AND SCENARIOS

ANNEX 1. Brazil 123

ANNEX 2. Germany 137
ANNEX 3. Finland 147
ANNEX 4. Japan 156
ANNEX 5. Korea 160
ANNEX 6. The European Union 163
ANNEX 7. Skills foresight in the EU enlargement region 176
ANNEX 8. Russia 184
ANNEX 9. Australia 196
ANNEX 10. United Kingdom 203
ANNEX 11. United States of America 211

Developing skills foresights, scenarios and forecasts 121

Introduction

The annex builds on a large range of country case

studies. The review is necessarily selective, based on
the following criteria:
(a) foresight processes on skills are in place in a
country;
(b) available country information gives a
comprehensive enough picture;
(c) the processes are able to create foresight products;
(d) the products are used by their potential users (for
example, are fed into policies).
Given the diversity of social-economic contexts across
countries it is virtually impossible to present only a few
top examples that represent the best practices. The
cases presented here provide a mix, taking into
account different stages of economic development,
different geographic regions and different cultural
backgrounds.
Review of the country cases reflects the fact that
foresight of future skill needs is a young discipline. An
ideal example of a functioning permanent system of
foresight for anticipating skill needs is not available and
it is likely that no such system yet exists in any country.
The most appropriate experience comes from Brazil.
Other examples show some elements of skills
foresights which are incorporated under an anticipation
system of future development of the society and
economy or they describe projects which could be a
basis for subsequent periodical activities in skills
foresighting: Russia is an interesting example from this
perspective. Nevertheless, all the cases presented
bring knowledge which could be useful for those
thinking about or already implementing a foresight
exercise.

122 Guide to anticipating and matching skills and jobs

ANNEX 1.
Brazil

A1.1. Economic and social context from social security, labour regulations and collective
bargaining. The other, more traditional, segment is
Brazil is Latin America’s largest economy and the world’s
labour-intensive, comprising mostly unskilled workers;
fifth-most populous country (200 million inhabitants). It
it lacks capital and has a large number of non-formal
is still classified as a developing country by the World
workers. Entrepreneurs and government authorities
Bank but is also seen as one of the most dynamically
tend to organise production for profit and invest in the
expanding economies and included in the BRIC group
formal segment of the labour market. The non-formal
with other important emerging economies (61). Although
segment, on the other hand, is subsistence-oriented,
its economy extensively relies on exports of traditional
with workers or producers unable to save or invest.
agricultural and primary goods, the service sector has
become the main driver of growth during the past In the 1990s, after years of inward-looking
couple of decades (62). development strategies, Brazil decided to undertake
structural reforms and open up its economy. The new
Brazil is geographically and socially heterogeneous. It is
development strategy has led to important structural
the world’s fifth largest country in terms of surface
changes in production. In the last decade the Brazilian
area, administratively a federation of 26 self-governed
labour market observed an important drop in
states (and one federal district) for statistical purposes
unemployment, concentrated on the metropolitan
gathered into five regions. Profound territorial
regions and equally distributed across all social groups,
disparities in terms of economic and social
although no substantial labour market reform was
development can be found not only across those areas
made during this period (de Holanda, 2011) (63).
but also between municipal and rural areas. Despite
Similarly, employment informality has been reduced to
rapid development of high-tech sectors
a historical minimum (below 40%) while schooling has
(nanotechnology, biotechnology, information and
increased (64).
communications technology) the Brazilian economy still
possesses many typical features of developing The recent global financial and economic crisis affected
economies such as economic dualism (almost a half of the country mildly. In 2011 the federal government
the 100 million workers, are on the informal labour announced the Brasil maior plan which included tax
market), extensive poverty (one fifth of inhabitants incentives for labour-intensive sectors that are sensitive
below the poverty line), widespread functional illiteracy to international competition, innovation and investment
(one sixth of inhabitants) and pronounced economic measures. This plan also embraces some foresight
and social inequalities often leading to violence and skills-oriented initiatives (65).
social unrest (highly unequal income distribution,
access to public education and, healthcare) (CIA, 2013). A1.2. Main challenges and policy objectives
The nature of the dual economy and dual labour market There is a wide range of challenges in the skills area in
determines the role of labour market stakeholders Brazil. The country’s labour market legislation is
(employers, federal and state institutions, trade unions, believed by industry to have adverse effect on
sector associations). One segment of the economy is employment and productivity growth. There is a need
considered modern, capital and skill-intensive, with a for institutional adjustments that allow companies to
relatively small number of mainly formal workers. compete in international markets with equal conditions,
Workers in the formal segment are expected to have while also ensuring that workers have adequate
regular, full-time jobs; they are registered, and benefit protection (Corseuil and Ramos, 2007) (66).

(61) Brazil, Russia, India and China (BRIC).

(62) Brazil has a relatively developed economic structure that contrasts with the transitional structure of employment.
(63) Department of Statistics and Socioeconomic Studies (DIEESE). http://www.dieese.org.br
(64) IPEA Boletim de mercado de trabalho: conjuntura e análise (2000-12) [IPEA Bulletin of labour market: situation and analysis] website:
http://www.ipea.gov.br/portal/index.php?option=com_alphacontent&view=alphacontent&Itemid=144
(65) Brasil Maior website: http://www.brasilmaior.mdic.gov.br/
(66) The inconsistency between labour legislation related to the 1988 Constitution on the one side, and the opening of the economy, monetary
stabilisation, the rise in the tax burden and the event of external shocks, on the other, result in rise in informality and a higher unemployment.

Developing skills foresights, scenarios and forecasts 123

The informal sector has its specific challenges in demand for new sources of energy and environmental
increasing the protection of workers who lack the skills concerns will stimulate energy efficiency and the use
to be engaged in formal sector. Reducing illiteracy and of renewable energies by industries, with consequent
raising skill levels of future generations, not only by demand for qualified professionals. The same
increased years of schooling but also by the quality of development is identified in the healthcare sector.
basic education, is seen as the way out of poverty and
New technology trends exert pressure on labour force
the informal sector for families (67). Despite
qualification, generating demand for new skills.
considerable efforts and remarkable social progress,
Whether these trends can be identified and met by
increased basic illiteracy and reduced basic education
the Brazilian labour force without further
quality was reported during the last decade. Education
segmentation remains the main research and policy
policy measures focus on addressing both quality and
challenge. The main approaches in the skills area in
quantity challenges in technical and vocational
Brazil intend to address the impact of technology or
education and training (TVET) in general.
production organisation on the demand for labour and
Given Brazil’s size, spatial mismatch is an important its consequences for work content. Derived from this,
issue. Economic development is taking place far from the key question is what professions will be needed,
traditional production regions. Multinational companies including emerging occupations in other countries,
opt for transferring workers from other areas to secure and what are the implications for education and
skilled workers. This may further aggravate territorial training.
disparities. However, it has been identified that newly
created jobs in many states are not suitable for the most A1.3. Key institutions, processes, approaches,
qualified workers, which underlines the skills matching methodologies and results
issue (overqualified workers are reported to earn less
than people matched to jobs) (ABDI and IPEA, 2012). Foresight in Brazil has evolved gradually. Programmes
and projects incorporating concepts and techniques
There is a need to improve the level of skills in industry.
from a wide range of international exercises, mainly
Participation in TVET and higher education is generally
from Europe, have been launched and supported by
low in Brazil (11% of people aged 18 to 24); promotion
the United Nations Industrial Development
of TVET can be particularly challenging in rural areas
Organisation (UNIDO) or the European Commission.
and in the informal economy. There is also a general
However, the country has also managed to develop its
lack of teaching staff for technically oriented subjects
own way of doing foresight, often due to the creative
(physics, chemistry, mathematics). Teachers’ capacities
use of limited resources, thus leading to effective
need to be complemented by pedagogical
innovations in practices and tools (Popper and Medina,
competency, with a focus on the transmission of a
2008). In recent years there has been increasing use of
range of high-level skills.
prospective methods and techniques by Brazilian
A shortage of talent and skilled workforce, especially organisations (from industry, academy or government)
those with technical qualifications, has been an issue in especially to help define research priorities and
many industrial sectors. Activity in sectors such as oil strategies, as well as to foster development to support
and gas, civil engineering and the automotive industry the national innovation system. These activities aim to
are in urgent need of qualified labour. Companies have integrate economic success, environmental quality and
identified skill shortages as a key issue, and many have social equity to achieve sustainable growth,
developed apprenticeship programmes and increased competitiveness and job creation (Santos and Fellows
spending on training and wages. The increasing Filho, 2006).

(67) The successful anti-poverty scheme Bolsa familia (covers one fourth of the population) offers cash conditional on school attendance and
vaccination of children in targeted families.

124 Guide to anticipating and matching skills and jobs

The first national foresight programme was launched in sector will work together to investigate the need for
the late 1990s as Brazil 2020, a large-scale reflection skilled human resources in Brazil in the short, medium
on alternative paths Brazil could take in the 21st and long term (ABDI and IPEA, 2012).
century. Four scenarios were produced, including one
Institutions specifically focused on skills forecasting
desirable for which a list of obstacles, and action to
include labour market observatories, TVET institutions,
overcome them, in 17 thematic areas were identified.
and technical advice forums. The key objective is to
In the last decade dozens of foresight exercise have
identify industry needs, including by specific
been conducted. The main bodies that initiated,
companies or groups. The approach is competency-
sponsored or carried out these exercise include the
based with a sectoral focus (Vargas Zúñiga, 2012). A
Ministry of Development, Industry and Foreign trade
key feature of the sectoral skills development system
(MIDIC), the Centre for Strategic Studies and
in Brazil is the network of non-profit institutions
Management in Science, Technology and Innovation
providing National Training Services for the industrial
(CGEE), the Brazilian Innovation Agency (FINEP) and
(SENAI), commercial (SENAC), transportation (SENAT)
the Centre for Strategic Affairs of the Presidency
and rural (SENAR) sectors. While these institutions are
(NAE). The areas covered include civil engineering,
mainly financed through a compulsory payroll tax, they
wood and furniture, plastics transformation, textile and
are managed by industry bodies, creating a strong link
garment, energy, biotechnology, bio-fuel, agro-
between TVET and labour market needs. These
business, telecommunications, petrochemical industry,
institutions are based on partnership between
water resources or climate change. Many of these
government organisations and stakeholders, such as
studies have a human resources component; some of
employer associations, rural labour unions,
them even lead to occupational profiles (for example,
cooperatives and other associations in their respective
researcher profile in 2022) (European Commission,
sectors. Their organisation structure is decentralised
2009) (68). Recent prospective studies under the
across regional administrations and states.
national innovation initiative covering strategic areas of
nanotechnology, biotechnology and ICT within the 2008 The best example of an integrated approach to skills
to 2025 timeframe include methodological design anticipation in Brazil is a foresight model developed by
leading to a proposal for six area actions including SENAI (69). This model develops sectoral prospects at
human resources (Ludovico de Almeida and Caldas de the national (federal) level. It aims to capture industrial,
Moraes, 2010). The latest large-scale foresight activity, technological and organisational change and the
the Brazil 3 moments project, aims to define national impacts on employment in order to anticipate future
objectives based on dialogue between different training and qualification needs (quantitative and
stakeholders of society over three horizons qualitative). The process is managed by an executive
(2007/2015/2022). Preliminary results of the project group formed by SENAI technical representatives,
have indicated that improving the quality of basic and academia and business representatives, who are both
primary education would have the highest positive the producers and users of the information generated.
impact on society. A specific exercise was launched on
Continuous approach to skills anticipation in SENAI
this topic (Popper and Medina, 2008).
was initiated in 2001 by focusing systematically on
In 2012 a brand new initiative was launched by the the two main questions: how many workers by
Brazilian Agency for Industrial Development (ABDI) and occupation and industrial sector will be demanded in
the Institute of Applied Economic Research (IPEA). The the near future, and what changes to the professional
Research network: education and labour market, is profile (knowledge, skills and abilities) will be
aimed at drawing a profile of the most in-demand required? These two questions have been addressed
professions in the labour market in the coming years by a series of interrelated activities coherently
and suggesting how to ensure TVET provision in the integrated in a model. Table A1 shows the original
future. Research institutions, government and private model design.

(68) Overview of foresight exercises in Brazil.

(69) SENAI is a technical and vocation education training institution focused on providing professional training and technological services for
Brazilian industrial companies. It has a total of 809 TVET schools and mobile training units located in all 27 Brazilian states. In 2012 it provided
professional training for 3.1 million students and workers at various qualification levels.

Developing skills foresights, scenarios and forecasts 125

Table A1.  Original SENAI foresight model

Projects Action Objectives Products

Technology Technology foresight Conduct foresight on emerging Series of sector studies. List of
observatory technologies related to specific specific emerging technologies
industrial sectors for a period
of 5 to 10 years
Organisational Conduct foresight on new forms List of new forms of work
foresight of work organisation for industrial organisation
sectors for the period of 10 years
Occupation Analysis of emerging Identify roles and occupations that Emerging occupations series
observatory occupations are emerging in other countries
Analysis of occupation Identify growth rates of selected Series analysis of occupation
trends occupations in specific industries trends
in Brazil
Occupation issues Conduct studies on occupation Series of occupation studies.
themes that bring impacts to Series of occupation monographs
the professional education and
occupation information to generate
content
Education Compared vocational Identify changes in vocational Series systems of vocational
observatory education education supply in selected education in comparison
countries for specific industries
Consolidation of Thematic antenna Analyse occupation and education Series em tempo (in time)
impacts impacts in technical and
technological services
Use of results System of occupation Generate occupation information Industrial professions website
information (SINO) for HR managers
Generate occupation information Almanac website
for the young
Generate occupation information Occupation perspectives website
for the general public
Generate occupation information Occupation directory website
for technicians and teachers of
SENAI
Generate occupation information Occupation sentinel website
for employed and unemployed
workers

Source: Cruz Caruso and Bastos Tigre, 2004.

126 Guide to anticipating and matching skills and jobs

The SENAI model has combined different recommendations generally relate to actions such
methodological approaches under each activity as changes in curriculum design, provision of new
(Box A1). These are foresight and forecasting courses, new technical and technological services
approaches used to feed an impact into occupation and upskilling trainers. The results of the foresight
analysis and subsequently into thematic antenna, exercise are released in various publications (70).
a workshop-like event, where the executive group Besides providing information for industry, students
discusses and analyses the outcomes, and and researchers, the results feed into a continuous
generates recommendations for SENAI in relation to monitoring process of occupations to support SENAI
vocational training and provision of technical and in development of skills strategies.
technological services for the sector in focus. The

Box A1.  Original SENAI model: activities and methods

The SENAI model combines several activities with their own methodology design. The main task of the
technology foresight exercise is to identify technologies with greater prospect of diffusion in the Brazilian
economy over five to 10 years. Sectoral studies conducted by SENAI and its partners (brainstorming, workshops
and literature review are the main instruments used) are key elements of the technology foresight exercise.
They characterise growth and supply/demand structure patterns, industry structure, employment evolution,
investment landscape and the structure of the sector’s value chain. These studies aim to elaborate a preliminary
list of emerging technologies in the sector that may impact the future occupation demands. The preliminary list is
the basis for the Delphi rounds of expert interviewing, which is the main instrument in the foresight exercise.
A minimum of 25 experts participate in two rounds of consultation. In the first, they have to evaluate each
preliminary ‘emerging specific technology’ in terms of: its commercial viability in the country over the coming
10 years; its likelihood of diffusion in Brazilian industry and the expected timing of adoption considering one third
and two thirds of all industries that are potential adopters; the impacts the technology may have on workers’ skills
needs (radical, incremental or low/null) and the respondents’ degree of familiarity/knowledge in respect to the
technology. In the second round, respondents receive the same questionnaire already processed with results
from the first round (mean, median and standard deviation) to be able to reformulate their first opinion if they
wish. As a result, a definitive list of technologies is produced.
Skills are influenced by adoption of new technologies but they are also a result of new trends in organisational
practices. The rationale is that changes in the architecture of firms and in the way of organising work impact
occupation and skills needs. This foresight exercise tries to identify management and human resources,
management models, decision making structures, hierarchy of firms and contractual or outsourcing practices
adopted that will impact the nature of occupations over a period of five to 10 years. The methodology is structured
in the same way as the technology foresight and comprises the following steps:
(a) elaboration, by external researches, of sectoral studies revealing organisational structures present in the
industry in focus;
(b) selection, by the executive group, of actors to be consulted for the prospective exercise considering the
sector’s value chain;
(c) preparation of the Delphi survey investigating main organisational trends (questions explore changes in the
content of work, such as the increase – or none – in the demand for more versatility from workers in a specific
occupation, fragmentation or accumulation of tasks by various occupations; changes in the composition of
firms’ workforces in relation to contractual arrangements, for instance increasing – or decreasing – number of
temporary workers and decision making process and hierarchy);

(70) SENAI ProspectaSE.

Developing skills foresights, scenarios and forecasts 127

 (d) application of the Delphi questionnaire in two rounds to a group of external experts;
(e) tabulation of the information; analysis and validation by the executive group; and
(f) elaboration of a list of organisational trends most likely to occur in the sector in focus over the coming
10 years.
Analysis of emerging occupations aims at identifying and characterising new occupations and changes in the
traditional occupation content. Research conducted in the US, Canada, Australia, New Zealand and in the United
Kingdom on sector occupations is revised and occupation content is compared to the Brazilian classification of
occupations system (CBO) (methods of literature review and comparative analysis are used). These countries are
selected because they systematically monitor occupation changes and because their occupational classification
systems are compatible with CBO. Occupations are then classified as ‘emerging’ if they comprise a whole new
range of tasks that do not find correspondence in the existing classification system; ‘in evolution or changing’
when they comprise an evolving set of activities and skills; and ‘stable’ if they do not reveal any substantial
change. This classification follows the United States Bureau of Labour Statistics definitions. Emerging and
changing occupation are further characterised in terms of work and skills content.
Analysis of occupation trends applies two models to estimate future quantitative changes in manpower demand
by industry and by occupation in the country. The first is an input-output model which estimates the sectoral
impact on employment changes in the final demand for goods and services produced by a particular industrial
sector and its value chains. The second part is analysis of the database of the Ministry of Labour and
Employment, the relatório annual de informações sociais (RAIS) [annual report of social information]. This enables
to identify the most dynamic occupations in a particular sector in the recent past (the ones that generated more
net employment). The RAIS database offers information by occupation breakdown in five digits.
A comparative study of TVET responses aims at identifying changes in the provision of sector-specific vocational
training and education services in selected countries that might guide the development of national skills response
strategies. This is done through literature review. In addition to characterising the type and reach of the training
institutions, financial mechanisms, planning and organisation structures, the analysis seeks to identify which are
the teaching methodologies and resources in use, how the training of trainers is being conducted and which
occupations in each sector are being more or less targeted for qualification or retraining activities. Analysis also
focuses on understanding the context in which the new strategies and solutions arise, so they can be better
adapted to the national circumstances.
Results from the exercises are presented in the thematic antenna, a workshop-like event gathering the executive
group. During approximately half a day (four hours), outcomes are debated and analysed to generate
recommendations for SENAI in relation to provision of TVET and technical and technological services for the
sector in focus. The recommendations are broadly structured around the following topics: new courses provision;
changes in the curriculum design; provision of new technical and technological services; needs for updates and
training for trainers; and needs for new studies.

Source: Cruz Caruso and Bastos Tigre, 2004.

128 Guide to anticipating and matching skills and jobs

The first foresight study was prepared in 2004, based in 2010, to provide a sound analytical basis for strategic
on SENAI’s own model to capture industry planning to 2027 (CNI and SENAI, 2010). Four scenarios
technological and organisational change, and its have been developed through considering possible
impacts on the future training and qualification needs future outcomes in different contexts: macroeconomic
(in quantitative and qualitative terms). A scenario and political-institutional; technological; TVET; and
methodology was incorporated to increase accuracy technical and technological services. Qualitative
rates, making it possible to perform analyses in variables were identified through expert consultation
contexts with variables others than those studied by by individual structured interviews and expert panel
the Model. Scenario planning was conducted by SENAI discussions.

Table A2.  2013-27 scenario

Brazilian context
Active entry to the world Product specialisation
market through product with passive entry into
diversification the international market
World context Shared leadership Scenario A Scenario B
Lack of a new world order Scenario C Scenario D

Source: Cruz Caruso, 2013.

To determine the impacts of the technology change, The integration of scenarios is an example of the
the technology diffusion paths and occupational evolution of the model. The original version of SENAI
impacts were identified through expert interviews. Model has been updated and some key activities
Employment projections under each scenario were have been reorganised (technology, organisation,
prepared using quantitative modelling. These occupation and education exercises) to fit user
projections were disaggregated to occupation level needs better but it retains its basic feature of
employment projections, which were mapped to find combining coherently various quantitative and
the demand for corresponding qualifications. The final qualitative approaches to the skills anticipation
results showed the demand for low, medium and high (Figure A1).
qualified workers under each scenario.

Developing skills foresights, scenarios and forecasts 129

Figure A1.  Updated general outline of the SENAI model

Source: ILO/Cinterfor, 2013.

130 Guide to anticipating and matching skills and jobs

Labour market anticipation is also performed at state
level by local observatories. In 2012, collaboration
among observatories in the state of Paraná
(observatory for prospecting and disseminating social
initiatives; observatory for prospecting and
disseminating technologies; observatory for industrial
development) resulted in a study that analysed future
skills demand through identifying promising future
industry sectors and strategic routes for them, and
developing professional profiles for this future (231
professional profiles in 12 economic sectors).
Identification of occupation profiles of the future was
based on preparatory studies on profiles, economy and
industry of the state and also on international
technology, social and industrial trends. The study
included university-industry interaction and methods
combined expert panels with quantitative data and
analysis of current professional profiles (Parise, 2012).
The occupation industrial observatory in the Rio de
Janeiro state is an activity of the FIRJAN system that
includes the federation of industries of the state of Rio
de Janeiro (FIRJAN), the industrial centre of Rio de
Janeiro (CIRJ), the industry social services (SESI),
SENAI and the national industrial training service and
the Euvaldo Lodi institute (IEL). Its aim is to provide
information on supply and demand of skilled labour in
industrial sectors of the state by presenting the labour
market situation, including its characteristics
(distribution of formal employment across industries),
trends and perspectives and employer needs to public.
The information is based on qualitative data from the
systematisation of information and research from
FIRJAN (such as salary survey) and quantitative data
from RAIS and CAGED (general register of employed
and unemployed). The main product is a website built
according the development map of the state: this was
drafted in 2006 with the aim of promoting TVET and
higher education and aligning it with the needs of
economic centres of the state. The website provides
regional (within the state) and sectoral views on the
labour market and its perspectives (71).

(71) Observatorio Ocupacional – Mapa de Desenvolvimento do Estado do Rio de Janeiro. http://www.firjan.org.br/site/observatorioocupacional/

index.html

Developing skills foresights, scenarios and forecasts 131

Figure A2.  FIRJAN occupational observatory

Source: FIRJAN, 2012.

132 Guide to anticipating and matching skills and jobs

A1.4. Lessons learned context factors (for example, political and institutional
stability). An unfavourable economic situation may
The Brazilian experience shows generally increasing
disconnect new technologies from the main social
foresight culture reflected in rapidly growing number of
problems and polarise the workforce. Recent social
foresight products. These products result from wide
progress and increased social inclusion linked with
adaptation of international experience to the Brazilian
good economic conditions (reduction of poverty,
reality. A variety of foresight approaches ranging from
informality, inequality) directly affect the number of
qualitative methods, such as scenario development,
workers included in government monitored activities,
Delphi style methods, focus groups, and expert panels,
making foresight exercises more valuable.
to more data-demanding formal quantitative modelling,
sectoral studies combining qualitative and quantitative ILO/Cinterfor (72) jointly with SENAI already promotes
methods and future-oriented employer surveys, have transfer of the SENAI foresight model to national
been developed or adapted and successfully used in training institutions in Central America and the
practice. Foresight is becoming part of strategic Caribbean. Five countries are involved, represented by
thinking in Brazil. the National Institute for Occupational Training of Costa
Rica [instituto nacional de aprendizaje] (INA), the
The Brazilian case demonstrates good practice in
Salvadorean Vocational Training Institute [instituto
coping with resource and capacity deficiencies found in
Salvadoreño de formación profesional] (INSAFORP),
many developing countries such as institutional
the Institute of Technical Training and Productivity of
framework and coordination, technology and innovation
Guatemala [instituto técnico de capacitación y
promotion capabilities, inflexible scientific institutions
productividad] (INTECAP), the National Institute of
or financing. The fact that such a large and
Vocational Education and Training for Human
heterogeneous country was able to develop integrated
Development of Panama [instituto nacional de
skills anticipation models, not only at the regional
formación profesional y capacitación para el desarrollo
(state) but also at the national (federal) level, is worth
humano] (INADEH) and the National Institute of
noting.
Vocational Technical Education of the Dominican
Integration of sector foresight for technology, Republic [instituto nacional de formación técnico
production organisation, occupational and educational profesional] (INFOTEP) that started to implement the
aspects under one institutional setting are further programme Skills anticipation: the transfer of the
elements of good practice, helping overcome some SENAI prospective model, in May 2012 (ILO/Cinterfor,
institutional framework deficiencies. 2013).
Networking in labour market research will help to
accumulate knowledge of heterogeneous social and
economic reality and develop appropriate
methodologies for anticipation of future labour market
trends. Networks support ambitious government
projects such as building a national database of training
courses to match supply and demand for TVET.
A general key factor in ensuring success of foresight
activities is the state of the Brazilian economy.
Economic growth is a necessary but not sufficient
condition for success of foresight activities, directly
through financial aspects of corresponding
programmes and indirectly through influencing other

(72) Cinterfor – Inter-American Centre for Knowledge Development in Vocational Training. More information is available in ‘Banco de Conocimien-
tos de Estudios Prospectivos’.

Developing skills foresights, scenarios and forecasts 133

References Survey results published on Firjan’s website.
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ABDI; IPEA (2012). Boletim eletrônico: formação e
pages/402880811F3D2512011F7FE00DA433D9.htm
mercado de trabalho [Electronic newsletter: training
and labour market]. First edition, December 2012. ILO/Cinterfor (2013). Skills anticipation: the transfer of
http://www.brasilmaior.mdic.gov.br/images/ the SENAI prospective model. Montevideo: ILO/
data/201212/e4196555d9f62d9286cccfaf5fd5e133.pdf Cinterfor. http://www.oitcinterfor.org/sites/default/files/
file_publicacion/Prospectiva_ingles.pdf
Cruz Caruso, L.A. (2013). SENAI’s forecast and
foresight model. Paper presented at the Skolkovo-ILO Instituto Nacional de Tecnologia (2003). Prospecção
International expert workshop ‘Using technology tecnológica: metodologias e experiências nacionais e
foresights for identifying future skills needs’, Skolkovo internacionais [Technology foresight: national and
Moscow School of Management, 11 and 12 July 2013. international methodologies and experiences]. Rio de
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Cruz Caruso, L.A.; Bastos Tigre, P. (2004). Modelo
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SENAI de Prospecçã. Documento Metodológico
tecnologica.pdf
[SENAI prospective model. Methodological document].
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(2010). Iniciativa Nacional de Inovação: modelo
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conceitual de prospecção tecnológica para áreas
training and technical and technological scenarios in
estratégicas no Brasil [National innovation initiative:
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market performance: 1995-2005. Paper presented at No 30, pp. 297-310.
the Seminar on labour markets in Brazil, China and
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the State of Paraná: Brazil. Presentation at the Skills
employmentpoliciesanddata/38355614.pdf
academy, elective course on skills anticipation, Turin, 15
de Holanda, F. (2011). Labour market changes in Brazil. to 26 October 2012.
Presentation. http://www.oecd.org/eco/
Popper, R.; Medina, J. (2008). Foresight in Latin
labour/48185653.pdf
America. In: Georghiou, L. et al. (2008). The handbook
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market. Geneva: ILO. Economic and labour market Cheltenham: Edward Elgar Publishing.
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into the future. Luxembourg: Publications Office. ftp:// default/files/exercices_prospective/pdf_brazil_s_t.
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foresight.pdf
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Websites
[URLs accessed 7.5.2014]
Brasil Maior.
http://www.brasilmaior.mdic.gov.br
Centre for strategic studies and management in
science, technology and innovation (CGEE).
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Cinterfor. Modelo SENAI de Prospección.
http://www.oitcinterfor.org/experiencia/modelo-senai-
prospecci%C3%B3n-brasil
CIA. The world factbook: Brazil. Washington D.C.:
Central Intelligence Agency.
https://www.cia.gov/library/publications/the-world-
factbook/geos/br.html
Department of Statistics and Socioeconomic Studies
(DIEESE).
http://www.dieese.org.br
FGV/IBRE (Instituto Brasileiro de Economia da
Fundação Getulio Vargas).
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IBGE (Instituto Brasileiro de Geografia e Estatística).
http://www.ibge.gov.br/home/
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http://www.ipea.gov.br/portal/index.php?option=com_
alphacontent&view=alphacontent&Itemid=144
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htm
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index.html
SENAI ProspectaSE.
http://www.senai.br/prospectase

Developing skills foresights, scenarios and forecasts 135

ACRONYMS

ABDI Brazilian Agency for Industrial Development

BRIC Brazil, Russia, India and China
CBO classification of occupations system
CGEE Centre for Strategic Studies and Management in Science, Technology and Innovation
CIA Central Intelligence Agency
Cinterfor Inter-American Centre for Knowledge Development in Vocational Training
[Centro Interamericano para el Desarrollo del Conocimiento en la Formación
Profesional]
DIEESE Department of Statistics and Socioeconomic Studies
FIRJAN Federation of Industries of the State of Rio de Janeiro
ICT information and communications technology
ILO International Labour Organization
IPEA Institute of Applied Economic Research
RAIS annual social information report
SENAI National Service for Industrial Training
[Serviço Nacional de Aprendizagem Industrial]
TVET technical and vocational education and training
UNIDO United Nations Industrial Development Organisation

136 Guide to anticipating and matching skills and jobs

ANNEX 2.
Germany

A2.1. Introduction and Research (BMBF). This ministry also uses

innovations and technology analysis (ITA) which studies
A major political and economic power of Europe,
the functioning of, and changes in, research and
Germany’s economy in 2011, as measured by gross
innovation systems supporting courses of action but
domestic product (GDP), produced USD 3 085 trillion.
with results also used for education and ministry
This makes it the sixth largest economy (by GDP in
strategy. Most of these projects are based on
purchasing power parity (PPP)). The service sector
objectives set out in the high-tech strategy. The
contributes around 70% of the total GDP, industry
high-tech strategy is the first national concept to
29.1%, and agriculture 0.9%. Most of the country’s
involve key stakeholders in innovation around a
products are in engineering, especially in automobiles,
common idea. It was launched in 2006, and in 2010 the
machinery, metals, and chemical goods. Of the world’s
federal cabinet decided to continue its use. The new
500 largest stock market listed companies measured
high-tech strategy 2020 will ensure the continuity of
by revenue, the Fortune Global 500, 37 are
the overall approach and new priorities. Its aim is to
headquartered in Germany. In 2010 the 10 largest
make Germany a leader in providing scientific and
companies were Volkswagen, Allianz, E.ON, Daimler,
technical solutions to challenges in the fields of
Siemens, Metro, Deutsche Telekom, Munich Re, BASF,
climate/energy, health/nutrition, mobility, security, and
and BMW. The German economy has withstood the
communication. Innovative technologies and services
global economic uncertainty and the European debt
create new jobs, and so every generation will have its
crisis. The government has held firm to policies
chance to develop its potential. Within the high-tech
emphasising sound public finance, keeping public
strategy 2020, and complementary to the activities
spending under control through deficit-cutting efforts.
carried out in ITA, the units of the BMBF are free to
Earlier labour market reforms that raised working-hour
carry out their own strategic planning processes; a
flexibility and reduced structural unemployment have
good example is the continuing (2013) process
contributed significantly to sustaining the relatively
Biotechnology 2020+ (74).
robust job market during the economic slowdown, and
that appears to be important for recovery. The official There are several different paths, which may be used
average national unemployment rate in May 2012 was as good practice and example of experience for other
6.7%. Germany has 81.8 million inhabitants and highly countries:
qualified labour force.
(a) BMBF foresight process;
A2.2. 
Main challenges and policy objectives (b) technology foresight: ITA;
Germany is experienced in technology foresight (as (c) Frequenz project;
defined) which has been developed for more than
(d) skill needs forecasting approaches (without
20 years (73). Initiatives using technology foresight are
emphasis on the development of technologies);
targeted to adoption of concrete political actions.
This approach is mainly oriented towards technology (e) ad hoc studies (ad hoc study work in the future:
foresight without direct focus on skills needs structures and trends of the work in the industry
identification but it provides important contributions to and trade unions).
the further development of the high-tech strategy and
innovation policy of the Federal Ministry of Education

(73) A good overview – especially on the Delphi and FUTUR approaches carried out in the 1990s and from 2001 to 2005 respectively – is provided
by a case study on Germany in the UNIDO technology foresight manual (UNIDO, 2005).
(74) See also http://www.biotechnologie2020plus.de/

Developing skills foresights, scenarios and forecasts 137

The foresight activities of German trade unions include The BMWi carries out several prognostic activities/
some technology foresight activities. A good example studies including future economic impacts of new
is the exercise on future internet technologies and its technologies. A good example is provided by the
consequences. A joint approach supported by VDI/VDE AUTONOMIK-guideline on human-machine-interaction,
Innovation + Technik GmbH (VDI/VDE-IT), addressing future challenges and needs in the
Industriegewerkschaft Metall (IGM), Vereinigte implementation of advanced cyber-physical systems
Dienstleistungsgewerkschaft (ver.di) and Deutscher and Industry 4.0, technologies into production
Gewerkschaftsbund (DGB) elaborated integrated processes (BMWi, 2013) (75).
roadmaps for sectors and working contexts affected by
Other ministries (such as environment or traffic) are
future internet technologies to derive impacts on
involved in fields like (electro-) mobility or energy.
working conditions and skills needed (Botthof and
Bovenschulte, 2009). Institutions involved in the BMBF ITA process
Targets of BMBF foresight process are: The institutions, according to research field, include:
work and technology; information and communication
(a) identifying new research and technology focuses;
technologies; innovation research; life sciences;
(b) identifying fields of societal changes and future mobility and urban development; nanotechnology;
demands; technology and society; environment and energy; and
science ethics. By legal status they are non-university
(c) identifying (and deriving) areas of activity covering a
research institute, university, consulting company,
range of research and innovation fields;
public research institution, companies, networks/
(d) analysing potential fields of technology and organisations/associations (76).
innovation in which strategic partnerships might be
Main technology research conductors
possible;
(a) VDI/VDE Innovation + Technik GmbH, programme
(e) derivation of priority action areas for research and
managing agency for foresight and ITA on behalf of
development.
the BMBF.
A2.3. Key institutions, processes, (b) VDI Technologiezentrum GmbH, future technologies
approaches, methodologies and consulting department (VDI TZ).
results (c) Karlsruhe institute of technology (KIT).
Ministries mainly involved in technology research are: (d) Institut für Technologie und Arbeit.
(a) the Federal Ministry of Education and Research (e) Fraunhofer institute for systems and innovation
(BMBF); research (FhG ISI).
(b) the Federal Ministry of Economics and Technology (f) Fraunhofer institute for industrial engineering (FhG
(BMWi). IAO).
(g) The office of technology assessment at the German
Bundestag (TAB).

(75) This guideline was developed in the context of accompanying measures and investigations of the BMWi-programme AUTONOMIK.
(76) Map of innovations – Technical analysis: http://www.bmbf.de/de/5331.php

138 Guide to anticipating and matching skills and jobs

Main institutions involved in labour market researchers were specifically consulted as inventor
research scouts, online surveys and other techniques. Inventor
scouting aims to find people with unconventional ideas
(a) Federal institute of vocational education and training
and it studies bibliometric clusters of isolated topics. The
(BiBB).
process sets out to identify people with ‘unconventional’
(b) Institute for employment research (IAB) of the ideas in the respective area, as well as young
German federal employment agency (BA). researchers and their topics, by means of the German
research association’s Hochschullehrerverzeichnis (index
A2.3.1. BMBF foresight process of academic staff) (PhD students) and the young
researchers’ competition.
The BMBF foresight is a strategic instrument of the
BMBF that provides technology foresight with a time Environmental scanning (literature research and
horizon of approximately 10 to 15 years. The BMBF analyses of conferences and relevant results),
foresight process provides information- and bibliometric analyses (for dynamic development in
knowledge-based decision-making support for scientific fields), and online surveys were conducted.
long-term and farsighted action in research and Central cross-cutting research fields were identified at
innovation policy. The process is carried out cyclically the interfaces between individual disciplines, thus
and in several phases: search and analysis, transfer, leading beyond the previous functional and programme
and preparation of the next cycle. BMBF foresight is logic (but based on the topics of the high-tech strategy
characterised by combining the two approaches in a and other departmental foresight activities).
cyclic process model: a cycle strongly influenced by
The starting point for this foresight process was the 17
the technology-push approach follows a cycle that is
thematic fields (five societal demands and 12 key
mainly demand-pull oriented, and vice versa. In this
technologies) of the German high-tech strategy and
way, the results of each preceding cycle can be
continuous foresight activities in the departments. By
evaluated and further developed in the subsequent
mid-2009, a set of advanced methods of future
cycle from an alternative perspective. After
research had been developed to identify new research
successful completion of cycle 1 (search phase:
and technology focus in 14 selected established future
2007-09), the BMBF started cycle 2 with a new
fields. This resulted in the so-called future topics in the
two-year search phase (since May 2012). The first
areas of health research, mobility, energy, environment
phase was conducted by the FhG ISI and the FhG
and sustainable development, industrial production
IAO on behalf of the BMBF.
systems, information and communications technology,
For the search phase of the first cycle (2007-09), the life sciences and biotechnology, nanotechnology,
BMBF chose a technology-orientated approach materials, substances and their manufacturing
(technology push) using a set of foresight methods: processes, neurosciences and learning research,
literature review; scenarios; expert workshops and optical technologies, services science, systems and
interviews; and international two-step panel. Young complexity research, and water infrastructures.

Developing skills foresights, scenarios and forecasts 139

Figure A3.  Schedule of topic searches

Source: Cuhls et al., 2009.

140 Guide to anticipating and matching skills and jobs

A future field is a cross-sectoral thematic field and is (b) needs dynamic: the new field promises to address
only defined as sustainable if it completely meets the central future challenges in a new quality.
BMBF’s criteria. In this context, there are established
In Cycle 1, the combination of methods applied
future fields, and so-called new future fields. Two
included monitoring, structured research, data mining,
criteria were decisive in creating a new future field:
bibliometric analysis, inventor scouting, expert
(a) research dynamics: the new field bundles a range discourse, and international monitoring panel.
of dynamic research aspects with a similar outlook
in a way that promises to enable better exploitation
of their innovation potential;

Figure A4.  Combination of methods in the BMBF’s process

Source: Cuhls, 2008.

Developing skills foresights, scenarios and forecasts 141

Cycle 2 (since 2011) is divided into three steps (which available on the BMBF website (77). This approach is
are conducted partly sequentially, partly in parallel): aimed at helping different actors in the innovation
process with decisions regarding research, technology
(a) inventory: until spring 2013 broad trends in demand
and innovation. Innovation and technology analyses can
(demand pull) will be determined and evaluated.
contribute to identification of possible chances and
Among other areas, results from research in social
risks, the acknowledgment of potential and options,
sciences and humanities will be included with
and the early recognition of possible restraints and
developments in society and the economy, along
supporting factors for innovations.
with results from interviews with lead users and
persons who exhibit a particular openness to The project ITA monitoring was financed within this
sociocultural change. The goal, above all, is to activity to identify the most important strategic themes
include fringe issues – hidden trend developments for ITA. It is based on problem-oriented methodology
and neglected phenomena – into the analysis; building on TAMI (78) aimed at transfer into practice. The
project contributes to the development of strategic
(b) updating: until autumn 2013, the technology-
issues for the innovation and technology analysis, inter
oriented results (technology push) of foresight
alia for a ‘topic field’ call for papers (for example, of the
Cycle 1 will be updated, and previously neglected
BMBF) and offers opportunities, conclusions and
topics will be added. The perspectives of further
orientations for the funding initiatives of individual
disciplines such as the cultural, social, and political
departments. Short studies represent preliminary work
sciences will be recorded and evaluated with
for concrete ITA projects but they are not ITA studies
respect to their relevance to the research policy;
themselves.
(c) linking: until spring 2014 the demand- and
Short studies are prepared for the selected topics which
technology-driven perspectives will be combined
comprise not only the transdisciplinary problem
and linked to scenarios to point out future areas
description but also recommendations for a problem-
within research and science which have the
adequate, methodical approach. Short studies are only
greatest solution potential.
methodical preparatory works; there is detailed
A2.3.2. Technology foresight process: ITA problem analysis of potential chances and risks,
potential and options. Concrete recommendations for
The ITA is a concept of the BMBF combining methodological proposals for the identified need of an
innovation research, technology assessment ITA were developed from this analysis. So this project
approaches and a middle-term foresight analysis contributes to the development of strategic topics for
focused on possible policy options and courses of the innovation and technology analysis (among others
action. ITA studies refer to the time horizon of 5 to 10 for the ITA topic cluster tenders of the BMBF division
years (in comparison with long-term technology 113) and offers possibilities to provide conclusions and
foresight process). Analysis seeks to identify fields of orientation for the research initiatives of the various
socially accepted technological progress, illustrate divisions of the BMBF. Systematic and continuous
potential, identify political scope and develop options monitoring will be established to identify relevant ITA
for research and innovation. topics, both from technology and demand perspectives.
This examines the many different institutions,
The ITA is a strategic tool to identify social innovation
instruments and strategies in industry, science and the
needs and technological innovation potential with
state sector which produce knowledge and
stakeholders from industry, the academic sphere,
technological innovations or play a role in this process.
politics and society. There is a map of stakeholders

(77) http://www.bmbf.de/de/5331.php
(78) TAMI, Transparent accountable data mining initiative.

142 Guide to anticipating and matching skills and jobs

The BMBF itself is the user of the ITA project results. The study includes a survey of experts. The experts
The entire process is coordinated in such a manner that were also asked about qualifications and creation of
possible topics are continuously in three cycles, additional study programmes such as nanostructure
prepared for innovation and technology analyses. The technology (at university) which most of them saw as
selection of topics by relevance and priority was made meaningful. Aside from the pilot study, there are two
in with the BMBF, taking expert opinions into account. studies on nanotechnology focused in depth on its
medical implications and economic potential.
Following new themes, four ITA have been identified:
electric vehicles, smart grids, ‘sticky information’ (data A2.3.3. 
Frequenz project
handling through IT) and non-medical applications of
neuroscience. The name is an abbreviation of the words early
identification of skill needs in the network
The ITA studies are larger studies based on more
(Früherkennung von Qualifikationserfordernissen im
methods, including in-depth technological analysis.
Netz). The project is directly aimed at linking the topic
Prepared as part of ITA was an interdisciplinary study
of professional qualifications and skills needs and
about nanotechnology, its medical implications and
anticipating technological development. The main
economic potential. Other studies deal with issues of
phase of the project lasted from 2004 to 2011 and the
biotechnology and information technology.
network involved 12 institutions. Frequenz has
The pilot study nanotechnology is based on, and continuing activities such as workshops.
operates with, six thematic dimensions and four time
dimensions. This preliminary study is based on A2.4. Lessons learned
secondary literature, a primary survey to ITA-related
Germany is very advanced in innovation and
aspects in nanotechnology, and guideline-based expert
technology. National initiatives aim at developing
talks. The experts were selected from Universities as
technologies in new economic and socially
well as department heads and laboratory heads of
interesting areas; a positive aspect is the ability to
companies. The discussions with them lasted between
engage a network of experts and institutions in
1.5 and 3 hours.
implementation of the high-tech strategy, ITA
(a) Thematic dimensions: process and BMBF foresight process. This also
(i) technical dimension; includes the search for new scientific talents (inventor
(ii) economic dimension; scouting) and interviewing so-called ‘antennas’
(iii) ecological dimension; (persons who exhibit a particular openness to
(iv) health dimension; sociocultural change, see 2.3.1. BMBF foresight
(v) individual and social dimensions; process, cycle 2 inventory).
(vi) political dimension.
Methodologies developed in Germany offer positive
(b) Time dimensions: models in their discussion about new foresight fields;
(i) short-term (up to five years); the Topic searches process during BMBF foresight
(ii) long-term (up to 10 years); process has value in this respect and the topic-
(iii) visionary (up to 30 years); specifying phase of ITA (ITA monitoring) offers a
(iv) science fiction (more than 30 years) or three-step process. Engagement of different interest
unforeseeable feasibility. groups into clusters is a good example for other
countries of building up a foresight environment.

Developing skills foresights, scenarios and forecasts 143

References Frequenz (2011). Newsletter 2011. Stuttgart: Fraunhofer
IAO.
Astor, M.; Bovenschulte, M. (2001). Innovations- und
Technikanalyse: Zukunftschancen erkennen und Kinkel, S. et al. (2007). Working in future: structures
realisieren [Innovation and technology analysis: and trends in industrial work. TAB report No 113. Berlin:
identifying and implementing opportunities for the Office of Technology Assessment at the German
future]. Bonn: BMBF. Bundestag.
BMBF (2004). Technologie und Qualifikation für neue Luther, W.; Malanowski, N. (2004). Nanotechnologie als
Märkte. Ergänzender Bericht zur technologischen wirtschaftlicher Wachstumsmarkt: Innovations- und
Leistungsfähigkeit Deutschlands 2003-04 [Technology Technikanalyse [Nanotechnology as a growth market
and skills for new markets. Supplementary report on opportunity: innovation and technology analysis].
Germany’s technological capabilities]. Berlin: BMBF. Düsseldorf: VDI-Technologiezentrum.
BMWi (ed.) (2013). Mensch-Technik-Interaktion: Malanowski, N. (2001). Vorstudie für eine Innovations-
Leitfaden für Hersteller und Anwender [Human- und Technikanalyse (ITA) zur Nanotechnologie
technology interaction: guidelines for manufacturers [Introductory analysis on innovation and technology for
and users]. AUTONOMIK-Leitfaden Vol. 3. Berlin: nanotechnology]. Düsseldorf: VDI-Technologiezentrum.
BMWi. On behalf of and with the support of the BMBF.
Botthof, A.; Bovenschulte, M. (eds) (2009). Das Internet Nusser, M.; Hüssing, B.; Wydra, S. (2007).
der Dinge: die Informatisierung des Alltags [The Potenzialanalyse der industriellen, weißen
Internet of things: the computerisation of everyday Biotechnologie: Endbericht. Studie im Auftrag des
life]. Arbeitspapier 176. Düsseldorf: Hans-Böckler- BMBF im Rahmen der Innovations- und Technikanalyse
Stiftung. [Analysis of potential for industrial white biotechnology:
Final Report. Study commissioned by the BMBF under
Cuhls, K. (2008). The BMBF foresight process. Paper
the Innovation and Technology Analysis]. Karlsruhe:
presented at the 3rd international Seville seminar on
Fraunhofer ISI.
future-oriented technology analysis: impacts and
implications for policy and decision-making, Seville, 16 UNIDO (2005). Technology foresight in action.
an d17 October 2008. Technology foresight manual, Vol. 2. Vienna: United
Nations Industrial Development Organisation.
Cuhls, K.; Ganz, W.; Warnke, P. (eds) (2009). Foresight
process: new future fields. Karlsruhe: Fraunhofer ISI;
Stuttgart: Fraunhofer IAO. On behalf of the BMBF.
Decker, M. et al. (2012). Zukünftige Themen der
Innovations- und Technikanalyse: Methodik und
ausgewählte Ergebnisse [Future issues of innovation
and technology analysis: methodology and selected
results]. Karlsruhe: Karlsruhe Institute of Technologie.

144 Guide to anticipating and matching skills and jobs

Websites
[URLs accessed 8.5.2014]
Biotechnology 2020+.
http://www.biotechnologie2020plus.de/
BMBF map of innovations: a technical analysis
(Germany).
http://www.bmbf.de/de/5331.php
BMBF strategy processes.
http://www.bmbf.de/en/6490.php
Hans-Böckler-Stiftung.
http://www.boeckler.de
Innovations and Technology Analysis.
http://www.innovationsanalysen.de/

Developing skills foresights, scenarios and forecasts 145

ACRONYMS

BMBF Federal Ministry of Education and Research

BMWi Federal Ministry of Economics and Technology
FhG IAO Fraunhofer Institute for Industrial Engineering
FhG ISI Fraunhofer Institute for Systems and Innovation Research
GDP gross domestic product
ITA innovations and technology analysis

146 Guide to anticipating and matching skills and jobs

ANNEX 3.
Finland

A3.1. 
Introduction and institutional context do not select their students but every student can go
to the school of his or her own school district. Public
The Republic of Finland is a Nordic country located in
authorities must secure equal opportunities for every
northern Europe. In terms of area, it is the eighth
resident in Finland to get education after compulsory
largest country in Europe and the most sparsely
education and to develop themselves, irrespective of
populated country in the European Union. Around
their financial standing. Legislation provides for
5.4 million people reside in Finland, with the majority
compulsory education and the right to free pre-primary
concentrated in the southern part of country. The
and basic education. Most other qualifying education is
labour force is about 2.7 million people.
also free of charges for students, including
Finland was a relative latecomer to industrialisation, postgraduate education at universities.
remaining a largely agrarian country until the 1950s.
General upper secondary education continues the
Thereafter, economic development was rapid, such that
teaching and education tasks of basic education to
today, Finland has a highly industrialised mixed
students aged about 16 to 19. The general upper
economy with a per capita output equal to that of other
secondary school ends in the matriculation
European economies such as Belgium, France,
examination which yields eligibility for all higher
Germany and the UK. The largest sector of the
education studies. Students in vocational upper
economy by employment is services at about 73% of
secondary education and training are mainly aged 16 to
the labour force, followed by industry and construction
25 years. The school-based education system means
at approximately 23%. Agriculture and forestry employ
full-time studies for three years at a vocational
about 4% of people. The key economic sector with
institution. 73% of the 25 to 64 year-olds have, at
respect to foreign trade is manufacturing. The largest
minimum, gained a certificate from upper secondary
industries are electronics, machinery, vehicles and
level and 33% (the highest in the European Union)
other engineered metal products, forestry and
have had a university or corresponding education. The
chemicals.
aim is that 92.5% of the age group 25 to 34 year-olds
In the 21st century, the key features of Finland’s will, by 2015, pass an examination at upper secondary
modern welfare state are a high standard of education, or tertiary level.
equality promotion, and national social security system,
The system of vocational education and training
the last of these currently challenged by an aging
consists of the national core curricula, each education
population and the fluctuations of an export-driven
provider’s locally approved curricula and the students’
economy.
personal study plans. The national core curricula are
Finnish society strongly favours education and the drawn up by the Finnish National Board of Education in
population is highly educated by international cooperation with employers’ organisations, trade
standards. Education is appreciated and there is a unions, the trade education union, and student unions.
broad political consensus on education policy. They are dealt with by training committees, which are
Education is compulsory between the ages of 7 and tripartite bodies established for each occupation field
16. Basic education encompasses nine years. Schools by the Ministry of Education and Culture.

Developing skills foresights, scenarios and forecasts 147

Interaction and partnerships are built at all levels of A3.3. Key institutions, processes,
activity. There is cooperation on development of approaches, methodologies and
education between various levels of administration, results
between schools, and between other social actors and
Foresight activities at both national and regional level in
schools. Education authorities cooperate with teachers’
Finland are fragmented among many actors in both
organisations, pedagogical subject associations and
private and public sectors. There are many forms of
school leadership organisations. This provides strong
foresight research: government level foresight;
support for development.
parliament level foresight; economy, industrial and skill
A3.2. Main challenges and policy objectives needs forecasting carried out by public research
institutes and funds; technology foresights; foresights
The Finnish economy has been acknowledged for its at regional level; and foresight activities by private
exceptionally high investment in research and companies and corporations.
development, high quality education, and social
The focus of the anticipating activities at national level
consensus. Recent decades have, however, brought
is set by the government foresight report produced
several challenges Finland has to tackle: recovering
once per government term (79). The report is created in
from the 2009 recession and unfavourable
cooperation with government sector authorities and
demographic development connected with expected
research community experts. The committee for the
major labour supply reduction are considered as the
futures in the Finnish parliament deliberates the
most important. The need to deal with the expected
government report, makes propositions for
consequences of the reduced workforce has
amendments and prepares reports concerning future
highlighted the efforts to make the education system
policy-making challenges for the Finnish parliament.
work more efficiently to ensure that the competencies
Along with foresighting projects carried out by single
of the workforce and the needs of employers will
ministries, there is the national foresight network of
match. As a consequence, Finnish foresight activities
the ministries as central government body that serves
aim to anticipate the demand for labour, changes in
as project coordinator and as a platform for sharing
qualifications and competencies of the labour force,
knowledge among ministries.
and education needs.
Among the individual ministries’ foresight projects are
The main policy goal is to improve the match between
the activity of the Ministry of Education and Culture
the competencies of the labour force entering the
(MEC), mainly the department for education and
market and skills needed by employers, improve the
science policy and its subordinate agency, the Finnish
availability of a competent work force, make the
National Board of education (FNBE), and the Ministry
education system more efficient, and target education
of Labour. However the cooperation of many actors is
characteristics such as flexibility, transition between
common in foresighting processes. Universities, social
different levels of education, and acceleration of
partners, think tanks and public sector agencies are
completion times).

(79) A new government foresight report is under preparation. The final futures analysis report, forming part of the preparations for the govern-
ment foresight report, was presented the 14 February 2013. The report highlights ways in which Finland can succeed in 2030. During spring
2013, the government will prepare a foresight report for parliament. In April 2012, the ministerial working group for the government foresight
report discussed the selection of foresight themes and approved following: the opportunities in the midst of scarcity; a new geography for
the north; business regeneration; public administration as an enabler; working life in the future; and citizens’ well-being and inclusion. The
group also discussed four cross-cutting themes: flexibility and crisis resilience; competencies and capabilities; ICT as an enabler; and the
global perspective. The futures analysis phase was implemented in collaboration between the Prime Minister’s Office, the Finnish funding
agency for technology and innovation, the academy of Finland and Tekes, with many independent specialists and experts from research
institutions, enterprises and non-governmental organisations taking part in the work. Discussions were held at www.2030.fi and at seven
locations in Finland in the autumn of 2012.

148 Guide to anticipating and matching skills and jobs

Box A2.  Adequate institutional framework in place

The Finnish foresight system has the following six parts (http://www.2030.fi/en/what-is-a-foresight-report):
• the government foresight report. This is a major report that discusses the development aspects of the country
in one large thematic area, usually 20 to 30 years ahead, and defines the government’s vision and guidelines.
The Prime Minister’s office’s policy analysis unit is responsible for its preparation. Appropriate background
reports are commissioned, and they are elaborated by the state’s sector research institutes such as
government institute for economic research (VATT), national institute for health and welfare (THL), technical
research centre of Finland (VTT), statistics Finland. The next government foresight report is always on a new
theme. This long term visionary document goes to the Parliament for its comments. Next the Parliament
futures committee with Prime Minister’s office begin discussions with citizens around the country; they
introduce the report results and gather citizens’ opinions. Implementation of government foresight normally
takes a much longer time than one government term which means that it partly binds the work of the next
government;
• the government foresight network of people who do, order, or coordinate anticipation work in different
ministries. The network has two members from each of Finland’s 12 ministries. It shares produced foresight
knowledge, discusses substance, issues, and foresight methods;
• the Finnish parliament’s committee for the future. This was established as a temporary committee in 1993 and
became permanent in 2000. It collects the parliament’s answer to the government foresight report and
performs future-oriented duties, conducts research associated with futures studies, and makes assessments
of technological development and the effects of technology on society;
• the foresight consortium for labour force, competency, and educational needs. This was established in 2008
based on a decision of the minister’s group of Finnish work, entrepreneurship, and labour markets. The idea
was to establish a mutual foresight system for coordinating all of the Finnish government actors’ decision-
making regarding vocational education and labour markets competency needs issues. The steering of the
system’s work is divided between the Ministry of Employment and the Economy (MEE) and the Ministry of
Education and Culture (ME). The domain of the MEE contains both the short-term foresight of competency
and education needs, and the labour force needs foresight, in general. ME sets out the foresight of
competency and education needs in the medium and long term. The foresight system orders its basic
forecasts and input data of the labour markets and economy from the VATT. These data are further broken
down for use at regional level, in different administrative fields, and are also used in the work of the
Government foresight network, and in the government future report writing. VATT forecasts are then
complemented with other organisations’ development forecasts, with corporate organisations participating in
the foresight especially in fields facing remarkable structural changes. The biggest challenge here is to merge
the quantitative forecasts to qualitative foresight into one storyline;

Developing skills foresights, scenarios and forecasts 149

 • SITRA’s foresight network (Finnish innovation fund). This was set up in conjunction with the Bank of Finland in
1967. Today it is an independent public fund that, under the supervision of the Finnish parliament, promotes
the welfare of Finnish society. It concentrates its activities in programmes oriented to Finland’s future. It
identifies and closely examines change drivers that are relevant to Finland. The national foresight network is a
part of the foresight work in SITRA (http://www.foresight.fi);
• the Finnish futures community. This covers the various futurists’ or future-oriented people’s networks in
Finland. The biggest is the Finnish society for futures studies, established in 1980.
There are three main groups in the Finnish strategic foresight system: functions related to the parliament, to the
government and to the futures or futurists community outside the government.

Source: Kuosa, 2011.

important players in this area. The VATT prepared The main processes, instruments, methods and results
scenarios in 2010-11 for employment trends in different are developed below.
industries by 2025. The FNBE produces data on
demand for labour by occupation groups and education A3.3.1. Education and labour market
needs. Responsibility for qualitative anticipation of A.3.3.1.1.  The Mitenna model
education content rests with the FNBE, higher
The Mitenna is a quantitative model developed for
education institutions and education providers. The
anticipation of education needs; its outputs are used as
system of national education and training committees
a basis for formulating Finnish education policy. It is a
functions as the expert organisation in qualitative
model for forecasting the requirement for student
foresight of education, consisting of a steering group,
places in comprehensive and vocational schools and
the national education and training committees, and
universities. A broad spectrum of data sources and
fixed-term expert groups. The system of national
approaches is taken into consideration in formulating
education and training committees is an expert
education needs forecasts. The model is geared
organisation in qualitative foresight of education. The
towards anticipating long-term education needs (about
government foresight network is an inter-ministerial
15 years) based on the needs of the labour market,
forum for cooperation and exchange of information on
which have been used specifically in preparing the
issues relating to the anticipation of the future.
Ministry of Education and Culture’s development plans
In general, the recent foresight studies carried out in for education and research, drawn up for every
Finland concerned: government term. The outputs of the model are used
both directly in planning intakes into education and
(a) education and labour market;
training, and indirectly in providing advice and guidance
(b) challenges for economy; to individuals (especially young people) who are
choosing their education paths.
(c) technology and innovations.

150 Guide to anticipating and matching skills and jobs

A.3.3.1.2.  Oivallus A3.3.2. Economic foresights
A.3.3.2.1.  Economic five-year regional forecasting
Oivallus is coordinated by the Confederation of Finnish system by research institute of the
Industries (EK) and funded by the FNBE, the European Finnish economy (ETLA)
Social Fund (ESF) (2008-11) (80) and the confederation
of Finnish industries. The purpose is to identify Forecasting by ETLA consists of five-year predictions of
potentially successful fields and obtain information economic development of Finnish regions and
from a multitude of perspectives. Oivallus attempts to industries. Forecasting outputs are summed up twice a
characterise working life in the 2020s and consider year in the publication Suhdanne and include
what kind of experts and skills will then be needed. predictions of production, employment and other
crucial economic indicators. Forecasts of development
A.3.3.1.3.  T
 he national qualitative anticipation in Finland are linked with trends in the global economy
project and the situation in the European Union.

The aim of the project is to develop and establish a A.3.3.2.2.  VATTAGE

permanent operating model to anticipate skills needs in
different sectors of the world of work. It was launched VATTAGE is a model of the VATT based on an applied
in 2008. The anticipation results will be used in general equilibrium method. It is a quantitative
development of curricula, qualifications and approach to long-term forecasting of the economy and
qualifications frameworks. The model of anticipation labour market.
developed within the project will serve different
education structures and meet the anticipation needs A3.3.3. Technology and innovations
of both national language groups (Finnish and A.3.3.3.1.  Finnsight 2015
Swedish).
Finnsight 2015 is a joint project of the academy of
Finland and Finnish funding agency for technology and
A.3.3.1.4.  T
 he education intelligence foresight innovation (Tekes) carried out in 2005-06 that explored
system drivers of change as they affected Finnish business and
industry and society at large, and identified emerging
The education intelligence foresight system developed
challenges for innovation and research. It also analysed
by the confederation of Finnish industries is a series of
focus areas of competency in science, technology,
studies that seeks to anticipate changes in the
business and industry and society at large that needed
industrial environment. Its outputs consist of
to be strengthened with a view to enhancing
cluster-related predictions. A cluster is understood as a
well-being in society and boosting the competitiveness
network of suppliers, producers, customers and
of Finnish business and industry. Findings from
competitors related by cooperation and competition.
Finnsight 2015 are being incorporated into national
The clusters analysed were ICT, well-being, chemistry
science and technology policies.
and biotechnology cluster, forestry, construction, real
estate and infrastructure, and service and knowledge-
intensive products (SKIP).

(80) Oivallus final report. http://ek.multiedition.fi/oivallus/fi/liitetiedostot/arkisto/Oivallus-Final-Report.pdf

Developing skills foresights, scenarios and forecasts 151

A.3.3.3.2.  Tekes foresight systems surprised by future development is a subject of great
importance in the Finnish policy-making. Foresight
Tekes is the main public funding agency for applied and
research is fully embedded in the operation of the
industrial research and development (R&D) in Finland.
Finnish government and legislative bodies, making the
Tekes’s mission is to fund business and public
level of institutionalisation unique.
research and development projects, promote
development in specific sectors of technology and The most common foresight methods are expert
industry and to coordinate key players in Finnish R&D. panels, literature review, scenarios, futures workshops,
Tekes also carries out technology foresight studies to SWOT and Delphi.
initiate new programmes and develop a common
What can be considered as remarkable is the way the
vision and industrial strategy. Technology foresight
outputs of foresights are directly transferred into
studies typically include interviews, workshops,
policy-making. The connection between outcomes of the
broad discussions, as well as having internet-aided
anticipation of demand for labour and education needs
sections.
made by the Finnish National Board of Education and the
major educational policy document, the development
A.3.3.3.3.  F
 innish innovation fund (SITRA) plan for education and research, is a clear example.
foresight systems
Article No 103 of the development plan for education
SITRA is an independent public fund promoting the and research 2011-16 states that:
welfare of Finnish society. It has a multistrand foresight
‘The supply of higher education institutions in 2016 will
report: welfare and everyday living; working life; public
be quantified based on national foresights:
sector; multiculturalism; and environmental technology.
The foresighting programmes are done using a wide (a) the overall volume of university education will be
range of methods including studies, strategy kept unchanged. In terms of field of education, the
processes, and innovative experiments. need for increases exists especially in teacher
education. The field-specific increases will be made
There are also projects carried out regularly at
through the retargeting of existing provision;
governmental level (the government foresight report,
the ministries’ future reviews) and reports from the (b) the intakes in polytechnics will be reduced by 2 200
Finnish Parliament’s committee for the future that are entrants in 2013. The cuts will be primarily made in
not focused on single topic but deal with various the fields of culture, tourism, catering and domestic
future-related issues. services, and technology, communication and
transport. A small increase is needed in health care
A3.4. Lessons learned and social services.’

Finnish forecasting activities seem complex and Part of the development plan for education and
sophisticated. There are many public and private research sets specific targets for intakes of students
institutions involved in programmes that anticipate and expected output of graduates in individual
development in various spheres of society. Not to be disciplines and degrees.

152 Guide to anticipating and matching skills and jobs

Long-term anticipation data are used while preparing objectives, profiles, and priorities, as well as quantitative
target and performance agreements between the targets for single universities and polytechnics.
Ministry of Education and the universities and
The intention of all stakeholders is to increase the
polytechnics. Regular negotiations between the Ministry
impact of anticipation on education and training.
of Education and higher education providers are the main
Cooperation between ministries and different levels of
element of the steering process of higher education.
administration is being promoted.
Result of these negotiations is an agreement on the

Figure A5.  Target scenarios

1. Education and Research 2007–2012. Development Plan. Ministry of Education, 5th Dec. 2007.
2. Anticipation results on provision targets for 2012. Target scenario. Finnish National Board of Education.
3. New students in 2006 (Statistics Finland, AMKOTA database).

Source: Hanhijoki et al., 2009.

Developing skills foresights, scenarios and forecasts 153

References Websites
[URLs accessed 13.5.2014] [URLs accessed 13.5.2014]
Ahola, E. Technology foresight within the Finnish Aggregates together foresight insights and relevant
innovation system. Helsinki: Tekes, National information from Finland and abroad.
Technology Agency. http://www.nistep.go.jp/IC/ http://www.foresight.fi
ic030227/pdf/p3-4.pdf
CIA. The world factbook: Finland. Washington D.C:
Arnkil, R. 2010. Anticipating and managing Central Intelligence Agency.
restructuring: 27 national seminars, ARENAS. The case https://www.cia.gov/library/publications/the-world-
of Finland. National background paper presented at the factbook/geos/fi.html
Finnish seminar, The National Institute of Health and
Finnish National Board of Education.
Welfare, Helsinki, 20 to 21 May 2010.
http://www.oph.fi/english
Confederation of Finnish industries EK (2011).
Finnish government: government foresight network.
OIVALLUS Final report. Helsinki: Confederation of
http://valtioneuvosto.fi/tietoarkisto/ennakointiverkosto/
Finnish industries.
en.jsp
Hanhijoki, I. et al. (2009). Education, training and
Ministry of Education and Culture, Finland.
demand for labour in Finland by 2020. Helsinki: Finnish
http://www.minedu.fi/OPM/?lang=en
National Board of Education.
What is a foresight report.
Hanhijoki, I. et al. (2012). Education, training and
http://www.2030.fi/en/what-is-a-foresight-report
demand for labour in Finland by 2025. Helsinki:
Finnish National Board of Education. http://www.oph.fi/
download/144754_Education_training_and_demand_
for_labour_in_Finland_by_2025_2.pdf
Kaivooja, J.; Marttinen, J. (2008). Foresight systems
and core activities at national and regional levels in
Finland 1990-2008: developing foresight systems for a
better life in Finland and Europe. Turku: Finland Futures
Research Centre, Turku School of Economics.
Kuosa, T. (2011). Practising strategic foresight in
government: the cases of Finland, Singapore and the
European Union. RSIS Monograph No 19. Singapore:
Rajaratnam School of International Studies.
http://www.rsis.edu.sg/publications/monographs/
Monograph19.pdf
MEC (2012). Education and research 2011-16: the
development plan. Helsinki: Ministry of Education and
Culture.

154 Guide to anticipating and matching skills and jobs

ACRONYMS

ETLA Research Institute of Finnish Economy

FNBE Finnish National Board of Education
MEC Ministry of Education and Culture
MEE Ministry of Employment and Economy
R&D research and development
SITRA Finnish Innovation Fund
Tekes Finnish Funding Agency for Innovation
VATT Government Institute for Economic Research

Developing skills foresights, scenarios and forecasts 155

ANNEX 4.
Japan

A4.1. Economic and social context public and private sectors and, since the eighth S&T
foresight, also offered direct input to science and
Japan has built its economic success predominantly on
technology policy formulation (the science and
a skilled population, government-industry cooperation
technology basic plan).
and intensive science and technology development,
mainly within technology-based industries. It has a As well as extensive long-term surveys, a variety of
culture of staying long, if not for the lifetime, with one other foresight activities are undertaken. These range
employer, which can result in a relatively less dynamic from sectoral foresights, mezzo-level exercises for
labour market and education system(81). Though this specific industrial associations, to micro-level foresight
can mean fewer opportunities to influence the labour within individual companies. They use a wide range of
force directly from a central level, individual companies methods.
are motivated to invest in the development of their
The following description concerns the major
work forces and draw benefits from various foresight
nation-wide exercise of recent years, the ninth S&T
exercises.
foresight carried out in 2009. The main institution
A4.2. Main challenges and policy objectives involved in carrying out the surveys was the National
Institute of Science and Technology Policy (NISTEP).
The main objectives of the nationwide science and Associated partners included the Ministry of Education,
technology foresight exercises include: Culture, Sports, Science and Technology (MEXT) and
the Council for Science and Technology Policy (CSTP).
(a) outlining the future prospect of evolutions in major
areas of science and technology; The following processes and methodologies were
employed.
(b) determining what should be done from now to
attain future goals and overcome major global and
A4.3.1. Setting of ‘grand challenges’
national challenges;
A preliminary discussion considered current global and
(c) contribution to the development of science and
national trends and identified the main scientific and
technology policies (for example, the basic plan for
technological challenges/goals for future development.
science and technology) and to setting the
The following four directions (grand challenges) were
corresponding priorities for investment and
determined:
resource allocation;
(a) central players in the scientific and technological
(d) providing respective data to a broad variety of
arena;
stakeholders and decision-makers.
(b) sustainable growth through green innovation;
A4.3. Key institutions, processes,
(c) successful model for a healthy-ageing society;
approaches, methodologies
and results (d) secure life.

The major technology and science foresight surveys A4.3.2. Delphi survey

are carried out regularly every five years and cover the
Four preliminary panels were organised, defined by
following 20 to 30 years. Initially they consisted solely
broad themes: security, safety, international
of extensive Delphi surveys, determining science and
collaboration, and international competitiveness.
technology supply, but in the last two surveys (eighth
Experts (from humanities and social sciences as well
science and technology (S&T) foresight in 2003-04 and
as natural sciences) discussed future targets that can
ninth S&T foresight in 2008-10) the approach was
be attained with the contribution of science and
broadened to cover demand for new technologies;
technology, and the main global and national
multiple methodologies (for example, scenario
challenges. Through these extensive discussions,
development or regional workshops) were used.
24 ‘critical issues’ were identified.
The results have been used by stakeholders from both

(81) http://www.meti.go.jp/english/report/downloadfiles/2-3e.pdf

156 Guide to anticipating and matching skills and jobs

A total of 12 interdisciplinary panels were established A vision of attainable future society was outlined.
(in contrast to the previous surveys where panels were Those of the Delphi topics likely to be widely available
field-based) to determine relevant future issues and/or widely known in society by 2025 were selected
irrespective of the existing scientific disciplines. The to outline the shapes of future society. Science and
panels consisted of 135 experts (in total) in the technology areas of key importance for attaining the
humanities, social sciences and natural sciences (from goals and resolution of challenges were identified.
universities, industrial sectors, and research Management of technology-related issues, such as
organisations). The main topics and areas (the area knowledge base, business, risk, globalisation, and
represented a group of interrelated topics) for the human resources, was seen as inevitable.
survey emerged from their discussions.
A4.4. Lessons learned
Two rounds of an extensive questionnaire survey were
conducted among experts. They offered responses Often it is stressed that in Japanese foresight culture
about the future perspective of the topics (832 in total) the main value of the foresight is seen not only in the
over 30 years until 2040. In the end, 2 900 responses direct outputs like subsequent policies, but in
were gathered. Analysis of the final results of the benefiting from the process itself, expressed as the
questionnaire survey was then carried out. ‘five Cs’: communication, concentration on the longer
term, coordination, consensus, and commitment
A4.3.3. Scenario writing (UNIDO, 2005a). From this it can be suggested that
education policies have been indirectly formed by such
In the framework of extensive interdisciplinary
exercises, even if no direct regular linkage has been
discussions by expert groups scenarios were created
established so far, especially since the eighth S&T
to outline future changes that may be brought about by
foresight when the MEXT and the government CSTP
the development of science and technology, including a
were largely involved. Ministerial proposals regarding
path for reaching goals. A description of related
education or training are generally made by reference
elements was also requested, including human
to surveys and estimations based on predicted change
resource development.
in industry structure; some may also result in policy
Scenarios were also developed from a Delphi survey, formulation. For example, the eighth Delphi study
reflecting the average outlook of experts. Future contributed to the strategy Innovation 25 which
scenes of daily life in 2025 were described, integrating outlines major Japanese prospects and challenges
forecast Delphi topics; regarding innovations until 2025. It also contains a
chapter on the human resources where basic
Group discussion was held among representatives of the
directions (as for example, fostering creativity of young
younger generation to compensate for the possible age
people by gaining experience overseas) are set.
bias, as the experienced experts who took part in scenario
groups or Delphi questionnaires came disproportionately The mission-oriented and interdisciplinary approach of
from the middle-aged and older generations. the ninth S&T foresight proved effective in determining
the direction of innovation and its promotion strategy.
A4.3.4. Regional workshops System thinking that includes not just technical
systems but also social systems and provision of
Workshops were held in eight Japanese regions.
services is essential for embedding technologies in real
Participants discussed ideal regional lives in the future,
society. The survey results included a strong call to
and what kind of science and technology will be
support future human resources related to the
expected to contribute to them.

Developing skills foresights, scenarios and forecasts 157

identified areas. As the responsible national bodies technology. Report No 141. Tokyo: National Institute of
participated from the beginning in the survey (see Science and Technology Policy.
‘institutions involved’), the identified needs make their
NISTEP (2010d). The 9th science and technology
way to the national policies indirectly by the major
foresight: capability of local regions for the green
policy papers drawing from them. The S&T forecasts
innovation. Report No 142. Tokyo: National Institute of
have been used to create a draft of the government’s
Science and Technology Policy.
science and technology basic plan. The realisation time
forecast in the surveys led to the setting of R&D Shirakawa, N. (2011). Foresight-related activities at
targets in government and industry research institutes NISTEP. Presentation at UNIDO mutual learning
and universities. The survey results are also being workshop, Bucharest, 29 to 31 August 2011.
considered in the process of developing the R&D plan
UNIDO (2005a). Organisation and methods. Technology
in educational and other organisations.
foresight manual, Vol. 1. Vienna: United Nations
Employers – especially those active in research and Industrial Development Organisation.
development – make use of the results of the
UNIDO (2005b). Technology foresight in action.
foresights, and it can be assumed that many consult
Technology foresight manual, Vol. 2. Vienna: United
the results when devising their human resources
Nations Industrial Development Organisation.
strategy, though exact overview of the methods they
use is not available. Yokoo, Y.; Okuwada, K. (2011). Identifying the direction
and promoting factors of innovation toward grand
challenges. Fourth international Seville conference on
References
future-oriented technology analysis, Seville, 12 and 13
[URLs accessed 13.5.2014] May 2011.
European Commission (2008). The European foresight
monitoring network: collection of EFMN briefs, Part 1. Websites
Brussels: European Commission. http://ec.europa.eu/
[URLs accessed 13.5.2014]
research/social-sciences/pdf/efmn-report_en.pdf
Ministry of Education, Culture, Sports, Science and
European Commission (2013). Japanese S+T foresight
Technology. http://www.mext.go.jp
2035. Foresight brief No 35 of the European foresight
monitoring network. http://www.foresight-platform.eu/ National Institute of Science and Technology Policy.
wp-content/uploads/2011/04/EFMN-Brief-No.-35- http://www.nistep.go.jp
Japanese-S+T-Foresight-2035.pdf
NISTEP (2010a). Contribution of science and
technology to future society: summary on the 9th
science and technology foresight. Report No 145.
Tokyo: National Institute of Science and Technology
Policy.
NISTEP (2010b). The 9th science and technology
foresight: the 9th Delphi survey. Report No 140. Tokyo:
National Institute of Science and Technology Policy.
NISTEP (2010c). The 9th science and technology
foresight: future scenarios opened up by science and

158 Guide to anticipating and matching skills and jobs

ACRONYMS

CSTP Council for Science and Technology Policy

MEXT Ministry of Education, Culture, Sports, Science and Technology
NISTEP National Institute of Science and Technology Policy
R&D research and development

Developing skills foresights, scenarios and forecasts 159

ANNEX 5.
Korea

A5.1. Economic and social context A5.3. Key institutions, processes, approaches,

methodologies and results
The Republic of Korea has a distinctive education
system that produces outstandingly educated people Since the 1990’s, Korea has had its national foresight
in terms of international comparison and is believed to programme which has assisted the government in
be one of the important factors behind the Korea’s exploring the future of science and technology. It is
rapid economic rise in the last decades. Education is embedded in legislation (S&T basic law) and is
egalitarian and highly appreciated. Nevertheless, the undertaken every five years by the Korean Institute for
recent focus on knowledge-based society, rapidly S&T Evaluation and Planning (KISTEP). Initially, only the
changing, has brought new demands and the Delphi method was used, but since the third national
drawbacks of the Korean education system, such as technology foresight (2003-04) a multi-methodology
lack of flexibility and autonomy in education approach has been taken. The revision of the third
institutions, insufficient diversity and creativity, have national technology foresight (2007) and the fourth
become more apparent. There are significant national technology foresight (2010-11) were directly
disproportions between labour market needs and used to feed the national S&T basic plans that outline
workforce supply. The systems of the labour market the S&T policy.
(employers) and education are not sufficiently
Following the Japanese example, Korea has developed
interlinked. Government seeks to address these
its own foresight culture, with each of the ministries
problems by various initiatives, including merging the
having started its own foresight projects. This
Ministry of Education with the Ministry of Science and
background, together with the participation of the
Technology, the establishment of sector skill councils
ministry responsible for education in the national
that identify and monitor skill needs in high-growth and
foresight, sets the basic conditions for interlinking the
technology-intensive sectors, and surveys of the
areas of technology foresight and education policy,
demand for training on the labour market. The practical
though concrete mechanisms are yet to be formalised.
effect of these measures so far seems limited.
The following description is of the third national
A5.2. Main challenges and policy objectives technology foresight of 2003-04. The two main
institutions involved in the exercise are the Ministry of
The main objectives of the recent nationwide science
Science and Technology (MOST) and the KISTEP.
and technology foresight exercise include:
The following processes and methodologies were
(a) providing a vision and direction for emerging
employed:
science and technology areas;
(a) a panel of experts from various disciplines was
(b) identifying technologies that have high potential of
established with a task to identify future prospects
contributing to growth (in terms of national wealth
and needs of Korean society. The prospects and
as well as quality of life);
needs were distinguished according to four
(c) implementation of the results in science and so-called ‘actors’: world, nation, society and
technology (S&T) policy (concretely, as in the individual: 15 main themes and 43 subthemes were
national S&T basic plan). explored;

160 Guide to anticipating and matching skills and jobs

(b) a separate survey of 1 000 experts and 1 000 References
members of the general public was conducted,
[URLs accessed 21.5.2014]
followed by an additional Delphi study via an
internet-based questionnaire, with more than European Commission (2013). Korea 2030. Foresight
32 000 experts (PhD holders) addressed in the first brief No 36 of the European foresight monitoring
round. Almost 17% (ca 5 400) of them replied in the network. http://www.foresight-platform.eu/wp-content/
first, and 61% (3 300) in the second round. The uploads/2011/04/EFMN-Brief-No.-36-Korea-2030.pdf
questionnaire contained 40 to 50 questions about
Kim, G-J. (2002). Education policies and reform in
one or two of the eight defined fields of technology;
South Korea. In: Secondary education in Africa:
(c) scenario panels of the experts with various strategies for renewal. Africa region human
backgrounds were set up. They visualised likely development working paper series. The World Bank.
scenarios for Korea in education, labour, health
Kis, V.; Park, E. (2012). A skills beyond school review of
services and safety systems. Alongside the
Korea. OECD reviews of vocational education and
experts, a group of undergraduate students
training. Paris: OECD Publishing.
contributed to the education panel, choosing one or
two future technologies that might have the biggest Ra, Y-S.; Shim, K.W. (2009). The Korean case study:
impact on systemic change in education. They also past experience and new trends in training policies.
developed related scenarios. SP Discussion paper No 0931. Washington, D.C.:
The World Bank.
Databases of technology subjects were created for
policy and strategy use. Out of total 761 technologies, Shin, T.; Hong, S-k.; Grupp, H. (1999). Technology
189 were selected as priorities. The databases were foresight activities in Korea and countries closing the
also complemented with the technologies with high technology gap. Technological forecasting and social
investment potential in other countries. change, Vol. 60, No 1, pp. 71-84.

A5.4. Lessons learned Yim, H. (2011). Korean views for technology foresight in

society. Presentation at KISTEP, 10 October 2011.
The results of the foresight were used to formulate http://www.vtt.fi/files/events/foresight_seminar/
strategic initiatives and contributed to determining the Ennakointiseminaari1010_Yim.pdf
priorities and allocation of resources regarding future
science and technology developments. Future
Websites
development of the education system was outlined
within the scenarios phase in the terms of how the [URLs accessed 21.5.2014]
technologies might change it.
Korea Educational Development Institute.
The third national technology foresight enjoyed http://eng.kedi.re.kr/khome/eng/webhome/Home.do
unprecedented public promotion. Cartoons, science
Korea Institute of S&T Evaluation and Planning.
books, posters, short movie and similar promotional
http://www.kistep.re.kr
materials were produced with the aim of spreading a
foresight culture in Korea. The revision of the third Ministry of Education, Science and Technology.
national technology foresight that took place in 2007 http://english.mest.go.kr/enMain.do
contributed to the policy paper on the national S&T
basic plan.

Developing skills foresights, scenarios and forecasts 161

ACRONYMS

S&T science and technology

KISTEP Korean Institute for Sciences and Technology Evaluation and Planning

162 Guide to anticipating and matching skills and jobs

ANNEX 6.
The European Union

A6.1. Context different EU Member States and recommended a

European foresight cross-sector methodology. The
The European Union has an overall strategic goal to
purpose was to prepare possible future actions to
promote more and better jobs and to offer equal
investigate new jobs for Europe, encouraging more
opportunities for all in its social agenda. There are
effective interaction between innovation, skills
numerous options for supporting this goal, one of
development and jobs creation.
which is a foresight exercise developed under the
financial support of the European Commission in the The methodology takes several factors into account:
second half of last decade. competitiveness, industrial evolution, innovation, and
globalisation. It also integrates elements such as the
A6.2. Main challenges sectoral dimension, mechanisms to update the results,
and level of precision in job profiles. This methodology
The restructuring processes underway in Europe
has been designed with the following possible uses in
should be placed in the broader context of securing
mind:
and improving the EU’s competitiveness, plus
redeploying the European economy to new activities (a) to identify new sector drivers for jobs renewal
with more added value and providing new and better (main trends in demand and supply, process,
jobs. To be successful, this approach should be products and service innovations, organisation);
underpinned by more strategic management of human
(b) to support sector innovation and employment by
resources, encouraging a more dynamic and future-
developing foresight instruments to analyse
oriented interaction between labour supply and
emerging activities, shaping factors, skill needs
demand. Without this there is the risk that bigger
and job profiles;
shortages, gaps and mismatches of skills will result in
structural unemployment. (c) to spread new job profiles in each sector in
vocational guidance, employment services and
Europe aims to renew its competitiveness, increase its
competency validation;
growth potential and productivity, while strengthening
social cohesion; this places emphasis on knowledge, (d) to improve strategic sector planning in education
innovation and optimisation of human capital. Fostering and training;
growth and jobs by stepping up the transition to a
(e) to encourage the development of partnerships for
knowledge-intensive society remains a core ambition.
innovation, skills and jobs at sector level, involving
A6.3. Methodology all stakeholders.
The methodology includes the following steps:
A methodology developed by Professor Maria João
Rodrigues over the last decade supports strategic (a) present and analyse the main economic and
management of human resources. Professor employment trends, the occupational structures of
Rodrigues, with the financial support of the European the sector over the past 15 years;
Commission, identified and analysed foresight on
(b) identify the main drivers of change with regard to
emergent job profiles and their training needs in the
the sector: economic, technological, organisation;

Developing skills foresights, scenarios and forecasts 163

(c) identify the main emerging or changing sector job (f) Usable within short time frames and with limited
profiles, skills and competencies; resources.
(d) identify three different scenarios (roughly over a (g) Focusing on different possible uses:
period of seven years) for future development;
(i) early identification of emergent jobs and skills
(e) draw the main implications of these scenarios for needs;
employment trends: new jobs in expansion, jobs in (ii) building qualification standards according to
transformation, and jobs in decline; the levels defined by the European
qualifications framework (EQF);
(f) identify the strategic choices to meet sector skill
(iii) supporting a credit system for transfer,
needs;
accumulation and recognition of learning
(g) identify specific implications for education and outcomes, as proposed by the European credit
training of sector skill needs; system in education and training (ECVET);
(iv) curriculum development;
(h) main recommendations.
(v) vocational guidance: possible use by the portal
The European foresight methodology to identify on learning opportunities throughout the
emergent jobs and their skills needs is described European space (PLOTEUS) and the European
below (Rodrigues, 2007). jobs network (EURES);
(vi) organisational development;
A6.3.1. Framing a European foresight (vii) human resources management at company,
methodology on skills needs sectoral, regional, national and EU level;
A6.3.1.1. Main features of the methodology (viii) sectoral learning strategies and competency-
building projects;
(a) Forward-looking approach:
(ix) partnerships for innovation, skills and jobs, in
(i) focusing on activities with relevant potential for connection with industrial high level groups,
jobs creation; clusters, lead markets and technology
(ii) identifying the main drivers and their platforms promoted at European and national
implications for skills needs. level.
(b) Enabling a strategic conversation by identifying (h) Easy to be used and adapted by the main
consistent, plausible but contrasted scenarios to stakeholders.
support strategic choices by the main stakeholders.
A6.3.1.2. Main research techniques
(c) Keeping a flexible approach on occupations
evolution, open to different combinations of The main techniques to be used are:
competency units.
(a) statistical and forecast analysis;
(d) Adaptable to different national contexts.
(b) desk analysis;
(e) Enabling two-way interfaces between foresight and
(c) foresight techniques, notably systems analysis,
forecast analysis, ensuring compatibility with the
scenarios building and actors games; in this stage
statistical classification of economic activities of the
of the pilot project, their main purpose should be
European Community (NACE), the international
neither simulation, nor optimisation but exploration
standard classification of occupations (ISCO) and
of possible scenarios;
the international standard classification on
education (ISCED). (d) web search;

164 Guide to anticipating and matching skills and jobs

(e) workshops involving top experts in the focused relative specialisation of the EU versus other
economic activities, dealing with markets, international partners:
technologies, human resources, research or education
(a) employment trends by industry in the EU, US,
and training and coming from big, medium and small
Japan and others (notably in BRICS);
companies, business consultants, research, education
and training institutions. (b) the same in vertical shares;
Selection of experts is crucial for the outcome of these (c) the same in horizontal shares.
workshops, as are the roles of chair and rapporteur.
To compare the employment trends and the relative
Their preparatory phase is also particularly important to
specialisation of the Member States:
provide a good background report to all the
participants. Previous interviews and meetings may be (a) employment trends by Member States in each
required for good preparation. Moreover, these considered industry;
workshops should be conducted with precise
(b) the same in vertical shares, of each Member
methodology, as follows.
States/total EU.
A6.3.2. Presentation of the methodology To measure the key economic trends:
Taking into account the framework already defined, we (a) output trends by industry in the EU, US, Japan and
will now present a draft methodology for the expert others (notably in BRICS);
workshop, assuming that it should be prepared in
(b) trade balance by industry in the Member States;
detail and that its outcomes should be further
developed by its rapporteur. (c) knowledge intensity by industry in the EU, US,
Japan and others (notably in BRICS).
The sequence of steps to be performed, with clear
direction by the chairperson and the rapporteur, should To measure the qualification content of each
be the following. considered industry:
Step 1: What are the main economic and employment (a) employment trends by education level in each
trends and structures in these activities? industry in the EU.
To present a brief statistical portrait of these activities, To measure the occupation structures of each industry:
focusing on the considered industries as disaggregated
(a) employment by occupation in the Member States
as possible to get statistical data:
in each industry in the EU;
(e) comparing EU and its main international partners;
(b) employment by form of work organisation in the
(a) comparing Member States with the EU total in Member States.
three different dates over the past 15 available
(Rodrigues, 2007).
years, if possible, when the purpose is to analyse
the main trends. Step 2: What are the main drivers of change in these
activities?
It would also be very useful to take into account
the projections to be provided by the project on Table A3 provides the grid which aims at identifying the
pan-European skills forecasts. main drivers of change with possible implications for
employment and competency trends.
The following would be particularly relevant for this
exercise, to compare employment trends and the

Developing skills foresights, scenarios and forecasts 165

Table A3.  Main drivers of change in each activity

Main drivers Technical Technical Economic Economic Organisational Organis. Others

activities product and process demand supply conceptual executive
services
Content industries
Specialised Interactive Automatisation Very rapid Network Specialisation, Routinisation
software software increase, companies, creative activity
customised differentiation, role of
software price also start-ups
matters and SMEs,
outsourcing,
offshoring
Generic software
Computing
hardware
Telecommunication
services
Telecommunications
hardware

Source: Rodrigues (2007).

These drivers, defining challenges and opportunities The time horizon to be proposed for this exercise is
are: seven years: 10 years would be too much and too risky,
taking into account the present speed of change, while
(a) in the economic dimension, the main trends in
five years would be too short to organise large scale
demand and supply;
initiatives at European level. Seven years is a relevant
(b) in the technological dimension, the main trends in policy-making cycle in the EU, based on the financial
process innovations and in product and service perspectives and EU community programmes for
innovations; research and technological development (RTD),
innovation or lifelong learning.
(c) in the organisational dimension, the main trends
regarding the more conceptual functions and the
more executive functions.

166 Guide to anticipating and matching skills and jobs

Step 3. What are the main emergent competencies by Considering these assumptions, the current exercise to
function in each of these activities? identify skills needs:
This exercise, assumes that: (a) should be general enough to accommodate the
national specificities afterwards;
(a) competencies can basically be of three types:
theoretical (‘knowledge’ in the ECVET; technical (b) should be focused on competencies and on
(‘skill’ in ECVET); and social (‘competencies’ in occupation functions and not on occupation
ECVET); profiles, which are diverse across Member States.
Nevertheless, if the need for a new occupation
(b) competencies are combined in occupation profiles,
profile is clearly identified, it should be registered;
where they can be core competencies,
specialisation competencies or complementary (c) should locate these competencies in a general grid
competencies. Most occupation profiles are in defined by the main occupation functions: general
permanent transformation by adding new management, marketing, financial and
competencies up to a point where emergent new administrative management, research and
occupation profiles can be signalled and development (R&D), logistics, production
recognised; management, production, quality and maintenance.
This grid should be connectable with the eight
(c) these occupation profiles are quite often translated
levels of the EQF (to be completed);
into qualifications standards, which are diverse
across Member States, reflecting their different (d) should not aim at an exhaustive listing of
structures of education, work organisation, competencies in each occupation function, but at
collective agreements and social identities; identifying some of the emergent critical
competencies in each function, to meet the challenges
(d) transnational cooperation to define common
defined by the main drivers of change. An exhaustive
qualification standards in high-level education is
list of competencies can be found in several national
taking place with the Bologna process; under the
occupation directories prepared by Member States;
Copenhagen process, the same progressive change
can take place for technical and vocational (e) should take into account the need to define
education and training (TVET), using the EQF as a consistent competency units (or unit of ‘learning
common frame as well as the method proposed by outcomes’ as named by ECVET), composed by
the ECVET. This system is based on units of theoretical, technical and social dimensions.
learning outcomes combining the three types of
Table A4 helps identify new critical competencies by
competency.
occupation function in the specialised software industry.

Developing skills foresights, scenarios and forecasts 167

Table A4.  New critical competencies by occupation function in the specialised software industry

Main drivers Economic Economic Tech. process Tech. products/ Organisation Organisation
demand supply services conceptual executive
Functions Very rapid Outsourcing, Automatisation Interactive Specialisation, Routinisation
increase, off-shoring software creative
diversification, activity
customisation
General Focus on Global Promoting Improving
Management new customs networking creative control
needs Intercultural environments systems
management
Marketing Exploring Developing
new market corporate image
segments
Financial and International
administrative finance
management
R&D International Applying new Improving
cooperation and languages mechanisms for
competition interactivity
Logistics International
supply chain
Production International
management supply chain
Quality
Maintenance
Production

Source: Rodrigues (2007).

168 Guide to anticipating and matching skills and jobs

Step 4. What are the main scenarios and their The possible employment trends are given by
implications for employment trends? comparing the present situation with the possible
situation over seven years. This comparison is signalled
This exercise aims to identify different possible
in Table A5 by:
scenarios for the employment trends, to be defined in
terms of specialisation patterns, taking into account (a) I, increase the employment level;
the international division of labour:
(b) M, maintain the employment level;
(a) where some of the considered economic activities
(c) D, decrease the employment level;
can develop, and others decline in Europe;
(d) ?, uncertain trend.
(c) where the more conceptual functions or the more
executive functions can either develop or decline in In answering these questions, the experts’ opinions
Europe. should be confronted with the statistical analysis on
employment trends presented in step 3.

Table A5.  Scenarios and implication for employment trends

Active/functions Content Specialised Generic Tele-communication Tele-communication

scenarios industries software software services hardware
Conceptual Conceptual Conceptual Conceptual Conceptual
executive executive executive executive executive
A. E xpanding all II II II II II
activities
B. E xpanding all
activities except
hardware
C. E xpanding ID ID ID ID ID
conception,
reducing execution
D. F
 ocusing on
specialised
software, content
industries and
telecommunications

Source: Rodrigues (2007).

These scenarios should be built on plausible trends and Step 5. What are the implications of these scenarios
their consistent combination. It is then be possible to for competencies and occupation profiles?
identify the most probable ones among them in
In this step, it should be possible to reach a central
analytical terms and, afterwards, the most desirable
outcome of this methodology, by building on the
ones. It can also be useful to launch some ‘wild cards’
previous steps.
by suggesting some possible unattended scenarios.
First, it is necessary to deepen the analysis of at least
All these contrasted scenarios provided the basis for a
two of the previous scenarios by specifying the
‘strategic conversation’ in the expert workshop, which
implications for each occupation function in terms of
should then be deepened on at least two scenarios,
jobs expanding, transforming or declining. Table A6
one best and one worst among the probable ones. This
should be filled in by indicating the occupation function
is the purpose of the next step.
at stake.

Developing skills foresights, scenarios and forecasts 169

Table A6. Jobs in expansion, transformation or decline in Scenario E ‘Expanding specialised
software, content industries and telecommunications and declining in executive jobs in
the other industries’

Employment trends New jobs in Existing jobs in Jobs in Jobs in decline

activities expansion expansion transformation
Content industries All functions
Specialised software All functions
Generic software R&D, logistic General managers, Production, quality
marketing, financial,
production, quality
Computing hardware Production, quality
Telecommunication All functions
services
Telecommunication R&D, marketing, General managers Production, quality
hardware logistic

Source: Rodrigues (2007).

Building on the previous steps, particularly step 3, it Step 6. What can be the main strategic choices to
should then be possible to describe the scenarios, as meet these skills needs?
telling possible stories about the future, in the
In discussing this issue, it is important to bear in mind
following terms.
that skills needs can be met in quite different ways:
In scenario E, ‘Focusing on specialised software,
(a) changing work organisation;
content industries and telecommunications’:
(b) retraining employed workers;
(a) the jobs in specialised software will expand,
requiring new competencies, such as in general (c) recruiting unemployed workers with or without
management: focus on customer needs, building retraining;
global networks, intercultural management,
(d) recruiting young people coming from education,
promoting creative environments, improving control
with or without retraining;
systems; in marketing etc.
(e) recruiting workers from other Member States;
(b) the jobs in generic software, in computing hardware
and in telecommunications software will decline. (f) recruiting workers from non-Member States;
This concrete story about the future can only be (g) outsourcing and offshoring;
exemplified during the workshop. Its detailed drafting
(h) other ways.
can only be made afterwards by the rapporteur, who will
circulate it to receive the comments from the experts. For identified critical skills gap, it might be useful to
draft a flow chart to identify possible solutions.
If there is the need to draw implications from these
scenarios for some Member States, it is possible for Step 7. What are some of the more specific
them to adapt them using a correspondence grid such implications for education and training?
as Table A7. However, it is never possible to make the
Among the solutions to meet skills needs, many
mechanical transposition of European scenarios to
depend on new replies from education and training
national scenarios, as several adaptations are required.
institutions. This methodology can support their future
choices by providing:

170 Guide to anticipating and matching skills and jobs

(a) Table A4 on the critical competencies by occupation (g) recommendations to meet the skills needs;
function in each industry;
(h) support to sectoral learning strategies;
(b) Table A6 on jobs in expansion, transformation or
(i) support to partnerships for innovation and jobs
decline;
creation.
(c) Table A9 on occupation profiles by function and
industry in a specific Member State. A6.3.3. Further developments to adapt European
references to national or local conditions
Step 8. Main recommendations
The outcomes of this expert workshop will lead to
In conclusion, some recommendations can be
references at European level which can be relevant but
formulated by building on the main outcomes of this
necessarily quite generic and abstract. In order to
methodology:
adapt them to the national or local conditions, it is
(a) map of emerging economic activities and their main necessary to mobilise more information involving
connections; key-stakeholders at these different levels:
(b) employment trends of these activities in Europe in (a) strategic choices to be made by the different actors;
a globalised economy;
(b) framework conditions to develop the cluster and
(c) drivers of change and implications for critical competency-building;
competencies;
(c) concrete occupation profiles in each occupation
(d) new critical competencies by occupation functions; function;
(e) scenarios and implications for employment trends (d) various choices to meet the identified skills needs.
and competencies;
The following tables provide a grid to get this
(f) list of jobs expanding, changing or declining; supplementary information.

Table A7.  Main corporate strategies by activity

Corporate strategies Main competitive factor Scope broadening/ Corporate structure vertical
Activities Cost efficiency/product specialisation in integration/networking/
differentiation the range of products outsourcing/offshoring
Content industries
Specialised software
Generic software
Computing hardware
Telecommunications
services
Telecommunications
hardware

Source: Rodrigues (2007).

Developing skills foresights, scenarios and forecasts 171

Table A8.  Key framework conditions by activity

Key framework Research Intellectual Human Venture Tax Infra- Standards Others
conditions property resources capital incentives structures
activities rights
Content industries
Specialised software
Generic software
Computing hardware
Telecommunications
services
Telecommunications
hardware

Source: Rodrigues (2007).

Table A9.  Occupation profiles by function and activity in the EU Member States X

Activities Content Specialised Generic Computing Telecommunications Telecommunications

industries software software hardware
Function/
EQF level
General
management
Marketing
Financial and
administrative
R&D
Logistic
Production
management
Production
Quality
Maintenance
Function/
EQF level

Source: Rodrigues (2007).

172 Guide to anticipating and matching skills and jobs

Table A10.  Strategic choices to meet skills needs

Choices to meet Changing Re-training Recruiting Recruiting Recruiting Recruiting Offshoring

skills needs work employed unemployed young workers workers and
Activities organisations workers workers people from other from outsourcing
Member abroad
States
Content industries
Specialised software
Generic software
Computing hardware
Telecommunications
services
telecommunications
hardware

Source: Rodrigues (2007).

A6.4. Lessons learned • computer, electronic and optical products;

A series of forward-looking sector studies was • building of ships and boats;
elaborated under the European Community
• furniture and others;
programme for employment and social solidarity
(PROGRESS) (2007-13) using the European foresight • electricity, gas, water & waste;
methodology. They were completed in 2009.
• distribution, trade;
The sectors covered were:
• tourism including hotels, catering and related
• non-energy extractive industries; services;
• textiles, wearing apparel and leather products; • transport;
• printing and publishing; • post and telecommunications;
• chemicals, pharmaceuticals, rubber and plastic • financial services (bank, insurance and others);
products;
• health and social work;
• non-metallic materials (glass, cement, ceramic,
• other services, maintenance and cleaning.
etc.);
• electromechanical engineering;

Developing skills foresights, scenarios and forecasts 173

A6.4.1. Use of the studies Websites
Following input from the European Commission ( ) 82
[URLs accessed 21.5.2014]
these sectoral studies were disseminated to European
European employment strategy. http://ec.europa.eu/
sectoral social partners with the aim of encouraging
social/main.jsp?langId=en&catId=101
debates between them about possible trends in their
sectors. The results were also disseminated among the EU skills panorama.
different services in charge of these sectors inside the http://euskillspanorama.cedefop.europa.eu/
Commission.
PROGRESS programme 2007-13. http://ec.europa.eu/
The main message for the Commission is the social/main.jsp?catId=327
importance of creating sectoral capacity to update
these first studies (for example, to take on board the
economic crisis). Given the lack of a space for sharing
information about sectoral trends at European level
(national sectoral observatories may exist but any
exchange between them is at European level), the
Commission supports the concept of European
sectoral Councils.
This concept will be an element of the EU skills
panorama (83), the aim of which is to develop links with
the services in charge of education (84).

References
European Commission (2007). Comprehensive sectoral
analysis of emerging competences and economic
activities in the European Union. Invitation to tender No
VT/2007/090. Tender specifications. http://ec.europa.
eu/social/main.jsp?catId=624&langId=en&callId=86&
furtherCalls=yes
Rodrigues, M.J. (2007). Innovation, skills and jobs.
Pilot-project to develop a European foresight
methodology to identify emergent jobs and their skills
needs. Working document 8.3.2007.

(82) Reply of Jean François Lebrun, Advisor EMPL/C, European Commission, on the E-mail request No 19965 from 29.5.2013.
(83) http://euskillspanorama.cedefop.europa.eu/
(84) See the EU employment strategy. http://ec.europa.eu/social/main.jsp?langId=en&catId=101

174 Guide to anticipating and matching skills and jobs

ACRONYMS

ECVET European credit system in education and training

EQF European qualifications framework
R&D research and development
TVET Technical and vocational education and training

Developing skills foresights, scenarios and forecasts 175

ANNEX 7.
Skills foresight in the EU enlargement region

A7.1.  Introduction A7.2. 

Economic and social context
The European Commission has entrusted the European Enlargement countries need to ensure a more
Training Foundation (ETF) to support enlargement coherent and evidence-based policy approach to
countries (85) in their human resources development human resources development and improved
(HRD) efforts. The overall objective is to assist the institutional and interinstitutional cooperation.
countries to develop the skills of their people for Strengthening evidence and capacity for better
sustainable economic development and social institutional performance will lead to better match
cohesion in a medium to long-term perspective. The between education and training and the needs of the
ETF initiative is part of the drive to support the economy and the labour market. A more strategic
implementation of the second cycle of the European approach for developing a vision for human resource
Union (EU) instrument for pre-accession assistance development needs to be adopted.
2014-20 (IPA), which requires a future-oriented strategy.
The rationale for skills anticipation in the enlargement
Foresight is one of four components of the ETF project region is not only to minimise labour market failure and
and will be complemented with a review of institutional to ensure better careers and lives for individuals; there is
arrangements and monitoring at national level, as well also the additional purpose of informing programming
as regional cooperation among the enlargement for the next cycle of EU structural funds, for example,
countries. At national level, the aim of foresight is to IPA for the period 2014-20.
elaborate a commonly agreed vision and a road-map
A qualitative approach is applied to developing a vision
for skills 2020 in a wider human resources
for skills 2020, taking broader issues and trends into
development context.
account and building on existing evidence.
Skills will be at the centre of the foresight initiative in
the enlargement countries, addressing the question A7.3. 
Main challenges and policy objectives
‘Which skills should the country develop towards 2020,
Key stakeholders in the countries have recognised the
and how can these skills be generated by the
need for policy coherence and have outlined strategic
education and training system?’
development goals in education, employment and
This case description draws on experience so far, in social inclusion in national and regional development
implementing foresight in two enlargement countries. plans, in sector policies and programmes and in related
strategies. What is needed is to derive implications for
skills from these strategies.

(85) Albania, Bosnia and Herzegovina, former Yugoslav Republic of Macedonia, Kosovo (this designation is without prejudice to position on status,
and is in line with UNSCR 1244 and the ICJ Opinion on the Kosovo Declaration of Independence), Montenegro, Serbia, Turkey.

176 Guide to anticipating and matching skills and jobs

Figure A6.  Vision for skills 2020

Major efforts are being made in the region to match of the problems faced by the countries relates to the
the needs of the labour market with training and skills capacity of institutions for implementation and
development. These efforts aim at reducing the interinstitutional cooperation and coordination.
mismatch of demand and supply of skills and While countries recognise the need to strengthen
supporting economic and social development of the their policies to make HRD a cornerstone of their
countries. All countries have been working on economic and social development, a shared vision
national HRD strategies with more or less success in among all stakeholders and institutions, as well as the
focusing on skills and in transforming strategies into means to implement an effective policy cycle, remain a
concrete and forward-looking measures. A key aspect high need.

Developing skills foresights, scenarios and forecasts 177

The key objectives of skills foresight in the A7.4. 
Key institutions, approach, process
enlargement region are: and results
A7.4.1. Institutions involved and active
(a) to break down silos between ministries and to
develop more joined-up policy approaches for skills, Participation in the foresight process ensures
bringing together the key players in the sector and representativeness from the main government
drawing together the HRD component in these institutions with a stake in the HRD sector, economic
strategies and identifying the interfaces between actors and civil society. The institutions involved are the
them; ministries of finance and European integration, line
ministries (labour, education, social affairs, research,
(b) to promote a more future-oriented approach to
economy), government agencies (public employment
skills policies, paying attention to key stakeholders
services, agencies for vocational education and training
(private sector, civil society) which may not have
and for higher education), social partners and civil
been sufficiently engaged in the development of
society organisations. In line with the management
the strategies;
system for EU structural funds in place, a coordinating
(c) to flag key concerns in relation to skills, in particular government institution is nominated which takes the
the mismatch between demand for and supply of lead for drafting and disseminating the results and
skills; forwarding them to be adopted by the government.
(d) to promote capacity-building for the HRD policy A7.4.2. Approach
cycle with regard to implementation of EU support
provided under IPA. Foresight for skills 2020 in the enlargement countries
also aims at informing the programming process for
Interinstitutional cooperation for better coordination, IPA, contributing to best use of funds. There are
monitoring and implementation of the many strategies particular features of foresight which distinguish it from
has increased but still needs substantial improvement. other strategic planning processes:
There are platforms and councils in most of the
(a) systematic: in the sense that it involves a
countries to discuss issues related to skills policies, job
well-designed approach based on a number of
creation, employment, or social inclusion but their role
phases and using appropriate tools;
and capacity are still limited. Social partners have been
involved in developments at system, regional, sectoral (b) participatory: since it brings together a wide range
and local level, but not sufficiently. of stakeholders and encourages interactions,
networking and learning;
The qualitative foresight approach adopted should be
supported by quantitative data on skills anticipation and (c) future intelligence gathering: studying trends and
robust evidence. In most countries of the enlargement drivers, their interactions and possible disruptions,
region, quantitative forecasts and a coherent labour thereby allowing more evidence-based policy
market information system remain to be improved. approaches and a level of anticipation;

178 Guide to anticipating and matching skills and jobs

(d) vision-building: exploration of alternative scenarios Following this general design, specific actions were
supports eventual focus on a common vision and implemented in the first two countries where foresight
consensus-building; had been carried out.
(e) shaping decision-making: foresight empowers the During the system building phase, national government
participants to move beyond exploration to shape institutions and agencies, social partners and donor
the future through more proactive thinking; organisations were consulted. A government institution
responsible for overall coordination of the foresight
(f) mobilising action: by engaging stakeholders it
process was assigned, and further stakeholders
supports the pathway to effective policy
consulted and invited to participate. The added value of
implementation through joined-up approaches.
foresight and expectations were discussed with the
A7.4.3. Process main stakeholders.
Milestones of the ‘foresight proper’ process were three
The foresight process basically consists of four main
workshops, but it also included work done between
phases: preparation, system building, proper foresight,
these events, like drafting inputs and summarising
and follow up to ensure best use of the results.
results, and consultation meetings. All work was done in
local language and translated into English.

Table A11.  Overview of phases and tasks

Phases Tasks/steps
Pre-foresight Basic preparation of the exercise;
preliminary analysis of reference documents in HRD;
information gathering among a wider group of potential stakeholders;
mapping of existing government strategies.
System building Identification and commitment of participants:
securing political and technical support and resources;
identification of participants (involving relevant stakeholders in the exercise).
Foresight proper Issue analysis, strategic panorama and its skills relevance;
trends and drivers at global and national level;
developing success scenarios;
developing a shared vision, setting priorities and elaborating roadmap.
Follow-up Ensuring commitment after the exercise:
documentation of the foresight process and results;
formal debriefing of results with key policy-makers;
communicating results to a wider audience.

Source: Casingena Harper et al., 2014.

Developing skills foresights, scenarios and forecasts 179

Workshop 1 with the specification of main responsible and
coordinating bodies and the objectives to be achieved.
This workshop brought together more than 30
These objectives were specified in terms of qualitative
stakeholders. To place developing the skills vision in the
and quantitative targets, with result-oriented indicators.
wider context of the country’s macroeconomic
Baseline targets and targets to be achieved by 2020, as
strategy, government representatives presented the
well as interim targets, remain to be fine-tuned with
key national strategies. To complete the wider context,
the support of monitoring experts. Among the priorities
the main goals and comparative benchmarks of the
were systemic issues that will be further elaborated in
Europe 2020 strategy for growth and jobs and the
the course an institutional capacity review which is
south-east Europe regional growth strategy 2020 were
foreseen within FRAME (86).
also brought in. A strategic panorama, mapping the
core national strategies, was prepared and eventual Results
key issues and gaps discussed. This underlined the
The result to be achieved for each country is a concise
need to develop a coherent and forward-looking
Vision for skills 2020, containing a joint vision
approach over the mid-term. Current issues and
statement, policy priorities, and a roadmap for how to
problems were discussed in breakout groups, covering
make the vision real. The results are documented in the
supply side, demand side and cross-cutting issues
form of a short and concise paper, proposed for
related to human resource development.
endorsement by the government and used as input for
Workshop 2 IPA 2014-20 programming.
This workshop started with further exploration of Foresight is process-oriented work, together with key
demand side issues, debating what is currently done to national stakeholders. Cooperation between different
anticipate future skills demands. A presentation of stakeholders – involving different government
economic, social and technological global trends and organisations, social partners, civil society
drivers inspired a debate about their likely relevance organisations and researchers – is not a new practice.
and impact on the national skills system. Breakout However, foresight works best with shared
groups worked on success scenarios, developing understanding that this is a change management
future visions linked to the main issues and defining process which requires regular and long-term
main actions to be taken to achieve these future engagement.
visions. The workshop concluded with first drafts for a
The added value of foresight as tool for strategic and
skills vision 2020.
future-oriented policy development lies not only in a
Workshop 3 well-documented result but also in the process. The
experience enhances adoption of a future-oriented
This workshop was key element in the vision-building
mindset among stakeholders. The process does not
process. To ensure policy relevance of the vision, key
end with the elaboration of a vision for skills; regular
government institutions highlighted their core strategic
monitoring will ensure sustainable results and a
priorities, followed by identifying and defining shared
tangible impact. As a management process, the
priorities which require a coherent approach and
foresight experience helps to develop future
cooperation among stakeholders.
intelligence that can be applied for further, in-depth
During the follow-up phase actions were taken to foresight studies.
complete and finalise the roadmap, specifying how the
To provide an example of the overall process, timing
vision will be realised. Clustered in few (four) policy
and steps are depicted below in Figure A7.
priorities, activities and measures were defined, each

(86) ETF FRAME project: http://www.etf.europa.eu/web.nsf/pages/Frame_project

180 Guide to anticipating and matching skills and jobs

Figure A7.  Process of foresight

Developing skills foresights, scenarios and forecasts 181

A7.5. Lessons learned Reference
The process design for foresight needs to be tailored Casingena Harper, J. et al. (2014). The future FRAME
to the specific framework conditions in each country foresight guide for skills 2020. Turin: European Training
and each case. There are many variations and Foundation.
differences in the institutional set up and the timeliness
of exercise compared to other processes. Previous
Website
experiences and – most important – parallel activities
with similar future-oriented processes need to be [URL accessed 22.5.2014]
considered and synergies explored.
ETF FRAME project, skills for the future.
Alternative process designs may also be considered. http://www.etf.europa.eu/web.nsf/pages/Frame_project
The vision-building process may involve much wider
groups, including larger parts of the business
community and civil society. But when it comes to
setting priorities and elaborating the details of a
roadmap, small groups of decision-makers and experts
may work most efficiently in achieving good results.
It is important to build on past experiences and on
national expertise, with the involvement of researchers.
When working on skills, the opinions of employers,
human resources (HR) managers of companies of key
industrial sectors, and owners of small companies may
certainly bring in additional insights. It is not enough
just to involve employer representatives.
Also important is scoping the foresight question, with a
clear thematic focus for the process. Addressing ‘skills’
as such is like using a wide-angle lens: while this has
advantages in terms of coherence, a view with a
telephoto lens (for example, addressing an economic
sector, a specific industry or [subnational] region) might
lead to more concrete and practice-relevant results.

182 Guide to anticipating and matching skills and jobs

ACRONYMS

ETF European Training Foundation

HRD human resources development
IPA instrument for pre-accession assistance

Developing skills foresights, scenarios and forecasts 183

ANNEX 8.
Russia

A8.1.  Economic and social context The ‘normal’ process of coordination between
education and training and labour markets, involving
Similar to most industrialised countries, Russia is
recognition of new tasks, adoption of new education
experiencing growing mismatch between the demand
and training programmes, and subsequent preparation
for labour with specific skills and competencies, and the
of new specialists, today risks that demand for these
training and education provided by the vocational and
specialists will disappear even by the time they
tertiary education system. One of the causes is
complete their education. Additional investment in their
accelerated technological progress, with the
training will then be required to close the skills gap). In
introduction of new technologies and methods into
Russian vocational education, the complete cycle from
various industries and economic sectors, plus
communication of new skill demand to new specialists
intensified global competition. The cycle of technological
being ready can take between two and three years; in
renovation is getting shorter even in more traditional
tertiary education, this cycle can take between four
industries (such as agriculture, natural resource
and six years. As the education system is often
extraction, or construction), from decades to years; in
inflexible and unable to recognise new labour market
new and emerging industries (such as information and
needs, the cycle becomes even longer.
communications technology (ICT) or biotech) substantial
revision of technologies applied can take just few years,
and in some cases as short as 12 to 18 months.

Figure A8. Growing mismatch between training and new skills demand due to increased rate of
technological change

Source: Authors.

184 Guide to anticipating and matching skills and jobs

A8.2.  Main challenges and policy objectives (d) declining quality of Russian system of tertiary and
vocational education and training, and its inability to
The inability of tertiary education to adapt to labour
cope with international standards.
market needs has caused severe mismatch: according
to December 2012 statistics from the Ministry of A8.3.  Key institutions
Labour of the Russian Federation, only 43% of new
specialists in the formal sector of the Russian economy The skills 2030 foresight in Russia was launched in
find jobs in accordance with their qualification. In the 2011 by two government areas:
informal sector, the gap is even higher: only 24% work
(a) the Ministry of Education and Science of the
in accordance with their qualifications.
Russian Federation launched a study of demand for
One of the ways to cope with this challenge is to new skills and competencies in hi-technology
reorganise the cycle through replacement of demand industries as a part of its third science and
recognition with demand anticipation (Figure A8). This technology foresight;
allows to align industry technological development with
(b) the Strategic Initiatives Agency for the President of
human capital development, and to prepare specialists for
Russian Federation launched the competency 2030
industry challenges that may unfold in the future. Also,
foresight as a part of its initiative to create a
because foresight process establishes communication
national system of qualifications and competencies.
between employers and education institutions, this allows
This is a comprehensive project coordinated
better synchronising even for existing labour demand.
through the roadmap that involves activities in
The current context of the skills 2030 foresight project several ministries including economic development,
is set by growing pressure to revise industrial policies labour, education and science, and
in Russia. Sectors that have been primary drivers of telecommunication and mass media.
economic growth through the 2000s (oil and gas, steel
The team at Moscow school of management Skolkovo
and mining, and defence) are now stagnating.
was responsible for execution of both projects. The
Technologies in infrastructure sectors (transportation,
project for the Ministry of Education and Science
energy) are obsolete, and substantial investments into
involved key hi-tech sectors, including biotechnology
modernisation will be required through the 2010s. The
(including agriculture and food industry applications),
government also considers the possibility of using
healthcare, ground transportation systems, aerospace,
some of the Russia’s competitive advantages, such as
energy generation and transmission, information and
the relatively high quality of its technology and
telecommunication, extraction and processing of
engineering education, to create new drivers of
mineral resources, environmental protection and
economic growth such as in information and
waste management. Additional sectors for the
telecommunication sector or aerospace.
Strategic Initiatives Agency project involved
Four key factors in establishing the need for the skills construction, finance, education, government and
foresight in Russia are: public services.
(a) changing technologies, processes and managerial A8.4. Skills 2030 foresight process, methods
approaches in the economy resulting from
and results
technological progress and social innovations;
(b) increasing global competition for consumer markets The skills 2030 foresight was conducted for sectors
and skilled labour; where technology is the primary driver of change in
skills demand (hi-tech sectors and technology-
(c) government efforts to modernise industries and
dependent industries). The main focus of the foresight
launch the new ‘knowledge economy’;

Developing skills foresights, scenarios and forecasts 185

was to assess how key trends and new technologies enterprises (SMEs) in the sector (i.e. employers),
change the nature of working tasks, shifting demand representatives of research institutions and
for existing and new skills. universities, and representatives of professional
associations, regulators, and advisors working with
The study of the demand for competencies consisted
the sector. Employer organisations were expected
of (Figure A9):
to be listed in industry rankings (including SMEs
(a) general economic analysis: definition of global and that were listed as ‘most innovative’ or were
country challenges of the future. This phase was supported by leading Russian development
conducted by systematising key international studies agencies) and were expected to be involved in
on megatrends and challenges of the future, as well collaboration with universities on development of
as through a cycle of interviews with leading new education programmes. It has also been found
economists, analysts, and industry experts in Russia; productive that between one-third and one-fourth of
participants are industry ‘outsiders’: suppliers, users
(b) industry analysis: systematisation of Russian and
of industry products, and students in industry-
international industry forecasts of scientific,
related programmes;
technological and economic development. This
stage allowed determining the technological and (d) foresight session (see below for details);
social factors driving industrial change;
(e) post-session verification of reports through round
(c) formation of expert groups including tables and questionnaires.
representatives of large, small and medium

Figure A9. Key steps of skills foresight study

Source: Authors.

186 Guide to anticipating and matching skills and jobs

The core of this study was foresight sessions. These due to changing technologies and industry context,
focused the collaborative design of the industry ‘map and emerge due to changing industry context.
of the future’ through structured discussion Working tasks were identified for intellectual and
(Figure A10): manual labour;
(a) analysis of key trends that drive change in the (d) for new tasks that cannot be resolved with existing
sector, and discussion of new ‘hard’ technologies skills and knowledge, new core competencies were
(new equipment, production processes) and ‘soft’ identified; some were described through samples
technologies (new managerial methods, new of best practices that may exist in other countries
organisational formats) resulting from these trends. or in other industries, and some were described
These ‘factors of the future’ were analysed across through requirements for new knowledge and
three time horizons: short-term (next three years: skills. Between 8 and 12 new competencies related
2012-15), mid-term (following five years: 2015-20), to technological change were identified in every
and long-term (following decade: 2020-30). Around industry. Also, between three and eight
12 to 15 key trends and soft technologies, and competencies in every industry were either
around 15 to 20 new ‘hard’ technologies were cross-sectoral or meta-competencies, which
identified during this discussion; allowed for some of the study generalisations (see
below);
(b) analysis of new market opportunities (products and
services) and new market threats formed by trends (e) accomplished during verification sessions:
and new technologies. Identification of changes in participants also evaluated whether competencies
working tasks due to changing industry will be widespread (most industry workers are
technologies, new opportunities and new threats supposed to master them) or narrow (only a few
that the industry has to deal with; specialists would be required). Participants also
discussed how these competencies can be formed
(c) identification of working tasks that are similar to
(for example, change in education programmes, use
existing working tasks (that can be resolved with
of simulators, on-the-job training).
existing skills and knowledge), become obsolete

Developing skills foresights, scenarios and forecasts 187

Figure A10. General methodology of foresight sessions

Source: Authors.

188 Guide to anticipating and matching skills and jobs

Results of the skills 2030 foresight (b) increasing (international) cooperation in research
and development (R&D) and production. Despite
Apart from new competency maps for key hi-tech and
increased competition, industry leaders also often
technology-driven sectors (which cannot be presented
collaborate to share investment resources, human
here for reasons of confidentiality), the study has also
capabilities and knowledge pool (thus the
produced two generalisations: key competencies that
phenomenon of ‘collaborative competition’, dubbed
will be required in all technology-driven sectors; and
as ‘coopetition’). Industrial innovation and rapid
key managerial competencies required in hi-tech
growth often occurs on the borders of disciplines or
sectors will become new drivers of economic growth.
industries, dissolving ‘traditional’ knowledge and
Three factors that influence all technology-driven production domains;
sectors are (Figure A11):
(c) digitalisation/automation: ICT penetrates all
(a) rapidly increasing competition (sometimes dubbed industries and domains of human activities, changing
as ‘hypercompetition’). This trend leads to the nature of manual and intellectual labour. All
increasing innovativeness (seen as the key routine operations, whether manual or intellectual,
competitive advantage) and thus the higher rate of are gradually automated, and workers shift from
technological renewal (calling for flexible production actually doing their work to programming devices to
systems), and also to increased control over do their work. The proportion of non-routine activities
consumer and supplier markets (direct economic (creative work, especially in teams, and related
power as well as indirect influence through communication and management processes)
sophisticated marketing and supplier network increases and relevant competencies become
management); mandatory for workers of the future.

Developing skills foresights, scenarios and forecasts 189

Figure A11. Key factors changing working tasks in all technology-driven sectors of the Russian
economy

Source: Authors.

190 Guide to anticipating and matching skills and jobs

Key competencies of the ‘worker of the future’ working in a global context, cross-professional
resulting from these trends are presented in Table A12, competencies and meta-competencies.
divided into technical competencies, competencies for

Table A12. Key competencies of the Russian worker of the future

Key competency areas Key competencies

Technical skills and knowledge Multidisciplinary background: from T-shaped to m-shaped workers
Technical + economic background
Skills and knowledge for global Foreign languages
contexts Cross-cultural competencies
Knowledge of global practice domain (for example, standards, design
environments, etc.)
Cross-professional competencies Creative collaboration (co-creation) in project teams
Communication skills
Working with large volumes of information
Meta-competencies System thinking
‘Programmer thinking’ (working with programmable environments)
Rapid learning and re-learning (adaptation to various working contexts)
Self-development skills
Self-regulation skills

Source: Authors.

Another generalisation concerns the key skills and of key competencies required to launch and maintain a
knowledge required for creation and development of knowledge-based economy, including design,
new hi-tech sectors in Russia, such as ICT, biotech, production, transfer of technologies, integration of new
smart grids, and smart transportation. In every industry activities, adaptation and standardisation of products
considered, four competency types have been (see Table A13). All of these competencies require a
identified, in addition to industry-specific technology combination of technological and managerial education,
specialists. These competency types are combinations training and experience.

Developing skills foresights, scenarios and forecasts 191

Table A13. Four competency types for knowledge-based sectors of the Russian economy

New skill cluster Work tasks Key competencies

‘Integrators’ (including technological End-to-end organisation of innovative Business management and
entrepreneurs) production from an idea to a product technology (understanding innovative
on the market activities across the product lifecycle)
‘Translators’ (cross-discipline/inter- Cross-discipline/cross-industry Understanding technologies and
industry) transfer of technologies (markets for processes in at least two industries
new products in mature industries) Marketing competencies
‘Adaptors’ Product adaptation to customer Requirements management
demands; design (including interface Client behaviour patterns
design and usability) Design competencies
‘Standardisers’ Development of industry standards Management (negotiations, lobbying,
(with regulators or through self- promotion) and basic technology
regulation)

Source: Authors.

These competency types are required at different evolutionary innovations (that involve minor and gradual
stages of the industry life cycle, as the industry product improvements); during the later stages,
environment moves from early growth into more industry leaders, through their innovative ecosystems,
mature stages. During the early stages, integrative are able to launch and maintain disruptive innovations
competencies (to help launch new enterprises and (that requires the collective effort of supplier and
create business and the regulatory environment) are distributor networks, often of hundreds and thousands
required, then industry is able to work with of independent enterprises).

192 Guide to anticipating and matching skills and jobs

Figure A12. Emergence of new competency type’ in knowledge-based sectors of Russian economy

Source: Authors.

A8.5. Lessons learned and next steps teams with inter-dependent competencies that
allow inventing, designing, marketing, producing
Summarising these findings, our team concluded that:
and supporting new products;
(a) a substantial share of new competencies in
(c) future-oriented approach to skills and knowledge
technology-driven sectors are cross-professional or
demand is necessary for the development of new
meta-competencies that go beyond the demand for
industries. However, few employers are ready to
competencies in specific sectors. Multidiscipline
discuss their future needs. The key problem here is
ability is among the key competitive advantages of
that most industries are lacking ‘translators’ that
the ‘worker of the future’;
could help connect strategic planning, technological
(b) for knowledge-based sectors, an ‘ecosystem’ development, and human resource preparation in
approach is most productive: creation/preparation of the industry domain.

Developing skills foresights, scenarios and forecasts 193

Project development largest aircraft producer in Russia. Other sectors
are anticipated to follow through spring and
The skills 2030 foresight results have been
summer 2013, including the transportation industry,
communicated to the Ministry of Education and
and the nanotech/new materials industry;
Science, the Agency of Strategic Initiatives, and a
number of innovative forums, where its results were (b) creation of the career guidance tools (including
evaluated. However, the priority of our team is to have Navigator through 100 jobs of the future and 30
tangible results with observable social and industry jobs that will disappear in the next 15 years) for the
impact. Therefore, the foresight process is planned to Russian public (youth and their parents), to be
continue to the end of 2013 and beyond. Among key published summer 2013;
scheduled activities are:
(c) creation of a short-term/mid-term and long-term
(a) ‘grounding’ of key foresight findings in the context demand anticipation tool in collaboration with the
of specific industries to revise education Ministry of Labour (as a part of the roadmap for a
programmes for industry-related universities and national system of qualifications and
vocational training institutions. Since late 2012, this competencies), to be implemented in pilot regions
work has begun for the aerospace sector in of Russia through 2014.
collaboration with United Aircraft Company, the

194 Guide to anticipating and matching skills and jobs

ACRONYMS

ICT information and communications technology

SMEs small and medium enterprises

Developing skills foresights, scenarios and forecasts 195

ANNEX 9.
Australia

A9.1.  Policy context conference ‘The future of work – Developing Australia’s

workforce in a global economy’ organised by leading
Australia is one of the few developed countries which
institutions in the field, the Australian workforce and
have weathered the effects of the global financial crisis
productivity agency and industry skills councils. Some
well, and its economy has remained in a strong
of the questions explored at the conference included:
position. This is primarily due to the uninterrupted
resources boom, accompanied by significant capital (a) what does the state of the nation in 2025 look like?
investment in the mining related sectors of resource-
(b) what are the major changes looming that will affect
rich states. At the same time, trade-exposed sectors,
work and productivity?
such as manufacturing, tourism and education have
been negatively affected by the increasing terms of (c) what will be the impacts of the ‘Asian century’, for
trade. This has created a ‘patchwork’ economy, as the economy, for jobs, for learning/skills
those states where the proportion of these sectors is development?
higher in the economy are growing at a lower speed.
(d) what are the implications for the tertiary sector of
A9.2.  Main challenges and policy objectives meeting the skill needs of employers and
individuals?
Skill and labour shortages have been prevalent features
(e) are improvements in labour productivity the key to
of the Australian labour market for a number of years.
continued prosperity?
While shortages in trade-exposed sectors have eased
due to the recent changes, they prevail and are seen as (f) what are the implications for various industry
constraining growth in other sectors. The labour market sectors of all this?
also faces a number of challenges in the long term,
(g) how will the fast pace of change in information and
such as the ageing population, and slowing labour
communications technology (ICT) and social media/
productivity growth. Addressing these issues through
social networking change the way we work?
the creation of a high-skilled, world-class labour force
has been the primary focus of government workforce (h) what is the impact of technology?
development policies. Training policy responses are
being formulated to aid structural adjustment of the The event promoted dialogue, raising the profile of the
labour market. challenges and solutions around developing future
Australia’s workforce in a global economy.
Hot issues of Australian future of work and jobs were
expressed in key questions at the October 2012

196 Guide to anticipating and matching skills and jobs

A9.3. 
Key institutions, processes, (c) driving engagement between industry, training
methods and results providers and government on workforce
development, apprenticeships and technical and
The sectoral approach has been a key feature of
vocational education and training (TVET) reform;
vocational education and training in Australia. The key
institutions in the sectoral skills development (d) administering the new national workforce
framework are the national and state/territory level development fund, and prioritising industry sectors,
industry skills bodies. regions, and groups for funding;

A9.3.1. Australian workforce and productivity (e) developing sectoral skills and workforce
agency (AWPA) development plans in conjunction with industry
skills councils and industry;
The Australian workforce and productivity agency was
(f) promoting workforce productivity.
established in 2012, to support the formulation of
workforce development policy and advice, and direct
A key addition to the functions of the AWPA is
skills funding to industry needs. The AWPA’s key
administration of the newly created national workforce
objectives are to sustain economic growth, avoid future
development fund. The fund is an Australian
skills shortages and raise productivity by increasing and
government programme that supports training of
deepening the skills of Australia’s workforce. To achieve
existing and new workers in areas of identified
these objectives the AWPA engages directly with
business and workforce development need. Industry
industry on workforce development issues and to
skills councils (ISCs) participate in the administration of
address sectoral and regional industry needs.
the fund, as they assist businesses with identifying
The AWPA’s membership provides balanced their training needs, selecting a registered training
representation of industry, employees and employers, organisation, and monitoring the implementation of
and includes experience from academia, training projects.
provision or education, economics, industry, and the
The AWPA provides research for a number of key
representation of employees.
workforce development areas. They prepare the
The agency has replaced Skills Australia, with specialised and skilled occupations lists, which provide
expanded roles and functions. As an independent the basis of the skilled migration programme. They also
statutory body, Skills Australia’s main role was to undertake work on skill needs and workforce
advise the Minister for Education, Employment and development in specific sectors, including in the
Workplace Relations on Australia’s current, emerging resources sector, the defence industry, and green
and future workforce skills needs and workforce skills.
development needs. Building on this remit, the AWPA
Most important, the AWPA has established a rigorous
is responsible for:
process to formulate a national workforce development
(a) skills and workforce research, including into the strategy in 2010, with the second, updated national
quality of jobs and future working life in Australia; workforce development strategy released in 2013. The
process involves three key stages of research and
(b) providing independent advice on sectoral and
analysis.
regional skills needs to support workforce planning;

Developing skills foresights, scenarios and forecasts 197

In the first phase, a number of scenarios are developed and demographic projections; it also includes the
to identify what factors are likely to drive demand and contribution to qualifications from net migration
supply for skills in the Australian labour market to 2025. (Deloitte Access Economics, 2012). Detailed
The scenario approach acknowledges the limitations of projections on both the demand and supply side have
economic modelling methods, particularly in accurately been produced across a range of occupations,
forecasting over the long term. The scenarios provide industries, years, qualification levels, and regions.
plausible alternative futures for the Australian economy
The third phase includes the development of
through which common outcomes and key
additional information and analysis for each industry,
uncertainties and risks can be identified, so strategies
based on the scenarios and the modelling. These
that take account of uncertainty can be developed.
industry snapshots include analysis of industry-specific
The scenarios take into account social, demographic data from sources like the Australian Bureau of
and cultural trends; economic and financial trends and Statistics and the Department of Education,
globalisation; labour force, industrial and workplace Employment and Workplace Relations. They also use
trends; science, technology and innovation trends; the ‘environmental scans’ and other information
governance and public policy; and sustainability. They provided by the ISCs.
have been developed through extensive consultation
This approach seems effective in combining qualitative
using forums, expert interviews, stakeholder
and quantitative intelligence from a broad range of
workshops, discussion papers and broadcasting
sources, using sophisticated economic modelling and a
information through a webinar. For the first strategy in
rigorous analytical process.
2010, over 400 people attended roundtables and
industry briefings, and skills Australia received 45 A9.3.2.  Industry skills councils
written submissions.
ISCs bring together industry, educators and
The second phase involves economic modelling to
governments to create a common industry-led agenda
draw out skill implications of the various scenarios. The
for skills and workforce development at the national
AWPA has commissioned a private consultancy to
level. Their key role is to represent industry in the
translate the scenarios into assumptions about key
management and planning of vocational education and
macroeconomic variables. Using a dynamic macro
training and in the development of training products,
model of the Australian economy, the model forecasts
and to provide advice to Australian, state and territory
the balance between the demand and supply of
governments about industry skills needs.
qualifications under the different scenarios. The model
estimates employment growth by occupation, The formal roles of ISCs include:
replacement demand, and new job openings. Based on
(a) collecting information on industry training needs
the current qualifications profile, it also projects skills
from employers, unions and professional industry
deepening and skills broadening to forecast the implied
associations;
demand for qualifications. The supply of qualifications
has been modelled as additional qualifications resulting (b) providing industry intelligence and advice on current
from domestic student qualification completions, and future workforce development and skills needs
considering current qualifications completion profiles to the AWPA, government and enterprises;

198 Guide to anticipating and matching skills and jobs

(c) supporting the development, implementation and about the drivers of workforce development and the
continuous improvement of high quality training and perceived effectiveness of Australia’s training system.
workforce development products and services; ISCs also use various methodologies to identify current
and future skills needs in quantitative and qualitative
(d) primary responsibility for the development and
terms, and to validate the information gathered from
maintenance of training packages (competency
industry (87). Some use high-quality macroeconomic
standards);
models through contracted professional agencies (88).
(e) providing independent skills and training advice to Others rely more on in-house analysis of historical data
enterprises, including matching identified training and projections prepared by the Australian Bureau of
needs with appropriate training solutions; Statistics, the Department of Education, Employment
and Workplace Relations and other central agencies.
(f) together with the AWPA, coordination of the
national workforce development fund. Besides providing intelligence about industry skill
needs to stakeholders, environmental scans form the
ISCs do not provide training or assessment services, or basis for developing training packages.
work with individual companies but focus on strategies
ISCs work as a network, mirroring the
that serve the needs of the wider industry.
interrelationships between industries and the supply
The network of ISCs was created in 2004 by chain nature of the economy. From time to time, they
significantly rationalising the former system of national also conduct joint work to provide consolidated, formal
industry training boards. A total of 11 ISCs have been advice to government on specific issues that affect skill
established along the main areas of the real economy. needs across sectors (ISC, 2009; 2011).
They are independent, not-for-profit companies,
governed by industry-led boards. They are bipartite in A9.3.3. State/territory industry training
ownership and through the membership of their advisory boards (ITABs)
boards, but they are not required to have equal
The Australian skills development framework operates
representation. ISCs are funded by the Australian
across two-tiers of governance. State and territory
Government through base and project funding. The
governments have jurisdiction over education policy,
amount of funding to each ISC varies in line with the
and have training authorities that administer vocational
number and size of sectors, enterprises, workforce,
education and training in their jurisdiction. These
and occupations it covers.
agencies are responsible for allocating funds,
ISCs provide key labour market intelligence to the registering training organisations, and accrediting
AWPA and other stakeholders through the annual courses; they also have a key role in the development
‘environmental scans’ of their respective industries. and endorsement of training packages. The state
The information in these scans is unique, as it is based training authorities are accountable to their minister,
on real-time industry views and evidence from across who is a member of the Council of Australian
Australia. A common point in them is that ISCs use Governments standing council on tertiary education,
various surveys and consultation to collect information skills and employment.

(87) For example, see http://tlisc.org.au/wp-content/themes/tlisc/downloads/escan_flyer.pdf

(88) For example, Service skills Australia commissioned detailed Labour and skills forecasts for the service industries. http://www.serviceskills.
com.au/labour-and-skills-forecasts

Developing skills foresights, scenarios and forecasts 199

States and territories also have their own industry-led often work together with their national industry skills
sectoral skills development networks (89). These are council counterparts. For example, their intelligence
state-funded, with funding tied to the provision of feeds into discussions on training, skills and workforce
services to support critical areas of TVET. Industry development issues impacting the industry’s growth in
training advisory boards or councils are autonomous, the national context. Areas of collaboration include
industry-led bodies that aim to identify and prioritise attraction of people into the industry, particularly in
their industry’s skills and workforce development terms of improving its image; building workforce
needs. Their general role is to ensure the availability capability and engagement; and improving the quality
of suitable training and skills development of training delivery in thin markets.
arrangements in vocational education and training. In
addition to representing industry’s skills needs and A9.4.  Lessons learned
providing advice to stakeholders, ITABs assist the
Australia has a well-developed effective system of
development of training products, develop training and
anticipation of future skills needs. It is based on a
career information resources, promote the benefits
combination of qualitative and quantitative approaches.
and opportunities of vocational education and training
The sectoral doorway has been a key feature of
to their industries, and provide support training
vocational education and training generally as well as in
providers.
processes linked to the future skill needs.
Similar to the environmental scan of the ISCs, most
The main tool used for designing possible futures is
ITABs produce annual change drivers reports that
scenarios development. Many actors, stakeholders and
provide qualitative and quantitative information on
experts from industry, the state training boards, the
current and future skills needs in their sectors, and
education and training sector, intermediaries and
identify training solutions. Besides surveying industry
enterprises participate in this; such collaboration offers
to collect first-hand information, the reports use various
valuable insights into the future. The collaborative
methodologies and data sets to provide an analysis and
approach is one of the typical characteristics of the
broader context on industry skill needs.
foresight exercise, as are consensus on shared visions
The functions of ITABs significantly overlap with those and commitment to the results. The fact that
of the ISCs. They seem to capture better industry administration of the process comes from the
needs at state-regional level, while ISCs focus more on government guarantees that findings will be used for
issues affecting the overall strategic development of improvement of education and training packages for
their sectors and the national training system. ITABs the benefit of the future labour force.

(89) Various arrangements exist across the states and territories. The number of state level ITABs is ACT (2), Northern Territory (6), Western
­Australia (10), Tasmania (1+industry liaison officers), Victoria (used to have 16, they have been abolished in 2012), Queensland (11), South
Australia (9), New South Wales (11).

200 Guide to anticipating and matching skills and jobs

References
[URLs accessed 22.5.2014]
AWPA (2010). Australian workforce futures: a national
workforce development strategy. Skills Australia.
Canberra: Australian Workforce and Productivity
Agency.
AWPA (2012). Australia’s skills and workforce
development needs. A discussion paper for the 2012
national workforce development strategy. Canberra:
Australian Workforce and Productivity Agency.
http://www.awpa.gov.au/publications/documents/
Future-Focus-Australias-skills-and-workforce-
development-needs-Discussion-Paper.pdf
AWPA (2013). Future focus: national workforce
development strategy. Canberra: Australian
Workforce and Productivity Agency.
http://www.awpa.gov.au/publications/Documents/
Future%20Focus%20key%20messages.pdf
Deloitte Access Economics (2012). Economic modelling
of skills demand and supply. Report prepared for the
Australian workforce and productivity agency. Barton:
Deloitte Access Economics.
ISC (2009). Environmental sustainability: an industry
response. Industry skills councils of Australia.
http://www.isc.org.au/pdf/FA_ISC_Sustainability_
Report_Single_LR.pdf
ISC (2011). No more excuses: an industry response to
the language, literacy and numeracy challenge.
Industry skills councils of Australia.
http://www.isc.org.au/pdf/NoMoreExcuses_FINAL%20
FINAL%20single%20page.pdf

Developing skills foresights, scenarios and forecasts 201

ACRONYMS

AWPA Australian Workforce and Productivity Agency

ISC(s) Industry skills council(s)
ITABs Industry training advisory boards
TVET technical and vocational education and training

202 Guide to anticipating and matching skills and jobs

ANNEX 10.
United Kingdom

A10.1. Economic and social context opportunities for UK skills. The example examined is the
national strategic skills audit for England and particularly
In the beginning of the 1990s, the research and
the 2020 horizon scanning and scenario project that
development in the United Kingdom (UK) that should
was a source of key foresight data for the audit.
reinforce technology infrastructure and business was
losing its drive compared to many other countries. In A10.2. Main challenges and
response, the newly established minister for science
policy objectives
founded an office of science and technology that began
to work to develop national science and technology
The main general objective of the national strategic
foresight activities and culture. In 1994 a technology
skills audit was to provide information on the
foresight programme was commissioned. It initially
challenges and opportunities and underlying trends for
concentrated on fostering a national foresight culture,
the future development of the English workforce in
closer interaction between scientists, industry and
relation to England’s strategic goals in this area. It
government as well as pragmatic issues such as
should provide intelligence for the decisions of
identifying science and technology development
government, employers, education and training
opportunities and exploring how these developments
providers as well as individuals.
could address key future challenges. As the
programme reached across the largest sectors of the The 2020 horizon scanning and scenario project used
UK economy and explored various social, foresight methodologies (especially horizon scanning,
environmental, economic and policy dimensions, it was interviews and scenario approaches) in support of its
soon renamed the UK foresight programme. aims:
Progress was made towards a foresight culture; (a) to identify key issues (within the UK as well as
foresight activities gained considerable support at the worldwide) that may in the long-term impact the UK
government level and engaged the interest of employment sector and skill requirements;
participants. Government, its departments and agencies
(b) to determine employment and skills drivers of change;
became major sponsors of various foresight exercises.
(c) to produce a working set of scenarios for the 2020
Since 2008 the economic crisis has affected the
employment and skills landscape and use them to
economy of the UK along with most other developed
analyse the challenges and opportunities for
countries. The competitiveness of the UK’s workforce
government and employers.
seems to be threatened as its skill levels are falling
behind other countries (Spilsbury and Campbell, 2009; A10.3. Key institutions, processes,
2010). In 2008 a Commission for Employment and Skills
approaches, methodologies and
was established to raise UK prosperity and opportunity
by improving employment and skills and by providing results
strategic information and guidance for the UK
Among the key institutions involved were the UK
government and other stakeholders. Among other
Commission for Employment and Skills (UKCES) which
activities the commission carried out a national strategic
was responsible for the process. The audit built on five
skills audit aiming to provide valuable insights into
separate research undertakings:
strategic skills needs; an. audit for England and Wales
has been carried out so far. As one of the research (a) an initial labour market information (LMI)
activities feeding into the audit, a foresight exercise was assessment drawing on a wide range of source
carried out to assess the future drivers, challenges and materials, predominantly based on quantitative data;

Developing skills foresights, scenarios and forecasts 203

(b) 25 sector skills assessment reports produced by (e) a horizon scanning and scenario report provided by
each of the sector skills councils (SSCs), based on a the St Andrews Management Institute (SAMI),
mix of national data supplemented by sectoral based on foresight methods and identifying key
surveys, interviews and other information; issues and changes which may impact on
employment and skills over the long term.
(c) six additional skills assessment reports focusing on
emerging sectors produced by SSCs grouped in The scheme of the national strategic skills audit
respective cluster’; illustrates the position of the horizon scanning among
the other activities, as shown in Figure A13.
(d) three additional skills assessment reports on three
of the emerging sectors produced for the UKCES
by experts;

Figure A13. Scheme of the national strategic skills audit

Source: UKCES, 2010b.

204 Guide to anticipating and matching skills and jobs

A10.4. 2020 horizon scanning and scenario (c) overlaying existing economic and social scenarios
project for 2020 (the scenarios developed within the
foresight futures vision project (2002) ‘foresight
The UKCES commissioned the 2020 horizon scanning
2020’ (90) were used) with the identified skills
and scenario project from the SAMI, who also
drivers resulting in a working set of scenarios for
produced the report.
employment and skills landscape;
In its initial phase, the project ‘focal question’ was
(d) analysis of the challenges and opportunities for
formulated: ‘What will be the drivers and impact of
government skills policy in relation to the developed
change on the employment and skills landscape in
scenarios;
England by 2020; what are the challenges and
opportunities for government and employers?’ The (e) drafting a report to contribute to the national
basic project outline consisted of: strategic skills audit 2010.
(a) identification of key issues and changes that have Several interlinked methods were used to fulfil these
(in the long term) potential to influence UK objectives.
employment and skills;
(b) identification of the main employment and skill
drivers;

Figure A14. The scheme of the project methods/activities

Source: Duckworth et al., 2010.

(90) The scenarios were developed for the then Department of Trade and Industry by a team of the University of Sussex (SPRU-Science and
Technology Policy Research). Various experts from business, government and academia were involved in the scenario development, and an
extensive review of national and global future scenarios were devised. The results have been widely used in the UK.

Developing skills foresights, scenarios and forecasts 205

A10.4.1. Interviews world in general and then for impact on the UK skills
landscape and grouped into interrelated clusters. A four
Some 21 interviews were conducted, with a main
quadrant chart was created, based on these two
focus on the key question of the project: ‘What will be
dimensions. The trends with the low estimated
the drivers and impact of change on the employment
importance for the world and with low impact for the
and skills landscape in England by 2020; what are the
UK skills at the same time were excluded from further
challenges and opportunities for government and
analyses. This resulted in 23 trends and drivers
employers?’
identified as the most important factors of future
Among the experts interviewed were senior members of development.
the UKCES, other stakeholders cooperating with the
Commission and experts in economics, technology and A10.4.3. Scenarios
society; their names were not published to maintain the A10.4.3.1.  Selecting base scenarios
strict non-attributable character of the exercise. The main
Existing scenarios for future development, created in
goal was to select key areas for further research: the
the framework of the foresight futures vision 2020
results were added to scanning data and were used to
project, were chosen as a base for the next process.
prepare the skills overlay for the scenarios as well as for
They were built on analysis of socioeconomic trends
the optimistic and pessimistic scenarios for skills in 2020.
taking into account possible new developments and
changes. Two key dimensions were considered:
A10.4.2.  Horizon scanning
orientation of social values (from an individual approach
A10.4.2.1.  General scanning
at one extreme to community-oriented values at the
The purpose of the horizon scan was to identify the other); and autonomy of the national government, from
trends and drivers that may potentially affect the UK’s decision-making staying firmly with national or regional
long-term employment and skills landscape and future governments at one extreme to decision-making shifted
skills needs. more to supranational bodies – for example, the
European Union or multinational corporations – at the
A comprehensive scan of global and national key
other. From the original four scenarios (based on four
factors was based on various published information
quadrants resulting from the two dimensions), three
sources. The factors examined were drawn basically
were selected that were considered to have greater
from the four PEST areas (political, economic, social
impact on employment and skills in the UK. They were
and technological factors) but included also legal,
then further elaborated to reflect the global
regulatory and environmental factors.
developments since the time when original scenarios
Issues were considered in terms of potential impact up were created and to take into account potential recovery
to the project horizon of 2020, and also beyond (over paths following the economic crisis. The scenarios are:
the next 25 years), to stretch the thinking about the
(a) world markets: high individual aspirations and
future and also to provide useful material for eventual
independence in a global economy sustained by
next development of the scenarios time lines. The
international cooperation, internationally
activity produced 101 selected trends.
coordinated policy ensures efficiency of markets,
minimal government, emphasis on the rights of
A10.4.2.2. Prioritisation
individuals, high growth;
The suggested 101 trends were reviewed in a project
(b) national enterprise: both individuals and
team workshop. They were sorted first according to
governments seek autonomy and independence;
the probability that they would be important to the
personal independence and material wealth within

206 Guide to anticipating and matching skills and jobs

 a nationally-rooted cultural identity, liberalised A10.4.3.3.  Scenario workshop
national markets, aspiration for a high degree of
The variants of scenarios with the analysis of the
national self-reliance and security, minimal
implications of each of the key drivers were reviewed
international cooperation, more fragmented world,
at a workshop of SAMI team members, UKCES
medium-low growth;
members and other relevant experts. The experts were
(c) global sustainability: a caring world where allocated to three groups according to the three base
individuals value the community and government scenarios. Their task was to assess the impact of the
implements policies for welfare and sustainability; scenarios on the UK employment and skills landscape
aspiration to high levels of welfare within and to derive a basic view of the challenges and
communities, more equally distributed opportunities for the government and employers.
opportunities, emphasis on active public policy and
international cooperation, competition within a A10.4.4.  Scenario ‘wind tunnelling’
regulated framework, medium-high growth.
In the final stage of the project, the technique called
‘wind-tunnelling’ was used. Its purpose is to test
A10.4.3.2.  Skills overlay to the base scenarios
current policies and strategies by exploring their
This step sought to develop the general scenarios to possible impact in the different futures. The three
reflect the employment and skills dimensions and scenarios were compared with the existing relevant
developments represented by the drivers identified policies and the future policy options. The process
during the scanning process. Each of the selected produced an outline of the implications for government
drivers was assessed against each of the scenarios strategy for future skills, suggesting the respective
with its relevance, likelihood and impact (on or within challenges and opportunities.
the scenario) being estimated. The drivers that
represented probable trends over the next 10 years A10.5. Lessons learned
were overlaid to all three scenarios, while drivers that
The 2020 horizon scanning and scenario project
appeared rather uncertain were assigned to the
identified the sectors, occupations and skills that
scenarios in different degrees. Finally, the consistency,
should be of special attention in meeting the new
plausibility and accuracy of the scenarios were
challenges and developments of the economy and
assessed.
labour market. The resulting final report was intended
Although the broad scope of the research made it not to stimulate wider debate and appropriate action
possible to examine in detail the implications of each among all stakeholders involved in shaping a
single driver against each scenario, or draw out the successful future for the UK.
interdependencies between drivers, the exercise
It was one of the main inputs for the national
provided valuable relevant insight into the possible
strategic skills audit. Through the work of the
futures in terms of employment and skills.
UKCES, the intelligence gathered serves the UK

Developing skills foresights, scenarios and forecasts 207

government, employers, training providers and (i) define: the social values, culture, economic
individuals as background information for their systems, politics and public policy which
decisions. Various implications and recommendations shape the world around us;
have resulted for continuation of the national (ii) relate: the social and organisational structures
strategic skills audit research programme in relation which link people, influenced by
to foresight activities: demographics, lifestyles, work and the
economy, the environment, business models,
(a) the ‘wind tunnelling’ technique can be used for
government and education;
testing further policies and strategies relevant to
(iii) connect: the technologies used to connect
skills;
people, places and things including information
(b) the horizon scanning activity should be extended to technology, the media, language and planning;
a 20-year scope for the next national strategic skills (iv) create: how goods and services are produced,
audit. As education is necessarily a long-term including manufacturing, energy generation,
investment, and technologies under rapid life sciences, material sciences;
development will probably of significant impact (v) consume: how we acquire and use goods and
after 2020, the time horizon of 2030 seems services, such as consumer goods, energy,
appropriate for the next exercise; food and agriculture, housing, healthcare,
natural resources, and the environment;
(c) an appropriate scenario framework is a key issue. It
can help to inform strategic evaluation and (d) a deeper and more extensive technology scan is
implementation of policies, make them more robust needed within the next skills audit exercise. The
against a range of possible futures, and reduce the 2020 horizon scanning and scenario project
level of risk. Complex interactions between concentrated on current technology trends, the
technology and society mean that the 2020 impact of which up to 2020 is more or less
scenarios cannot be simply extended over a longer predictable. The UK will also need an appropriately
period. A scenario framework that includes these skilled workforce for new technologies currently in
additional factors, such as the ethnographic futures development, if it intends to be at the heart of
framework, is recommended for the 2030 foresight these developments;
horizon. The ethnographic futures framework is an
(e) the addition of geopolitical factors, such as China
approach that tries to characterise the future by
potentially becoming the largest economy, is
addressing several broad aspects:
recommended for future research.

208 Guide to anticipating and matching skills and jobs

References UKCES (2010b). Skills for jobs: today and tomorrow –
the national strategic skills audit for England 2010.
[URLs accessed 22.5.2014]
Volume 2: the evidence report. London: UK
Berkhout, F.; Hertin, J. (2002). Foresight futures Commission for Employment and Skills.
scenarios: developing and applying a participative
UKCES. National strategic skills audit. http://www.
strategic planning tool. University of Sussex: Greenleaf
ukces.org.uk/ourwork/nssa
Publishing.
Duckworth, M. et al. (2010). Horizon scanning and
scenario building: scenarios for skills 2020. A report for
the National Strategic Skills Audit for England.
Newbury: SAMI Consulting. http://www.
samiconsulting.co.uk/4UKCEShorizonscanning.pdf
European Commission (2009). Mapping foresight
revealing how Europe and other world regions navigate
into the future. Luxembourg: Publications Office of the
European Union. ftp://ftp.cordis.europa.eu/pub/fp7/ssh/
docs/efmn-map¬ping-foresight.pdf
Spilsbury, M.; Campbell, M. (2009). Ambition 2020:
world class skills and jobs for the UK. The 2009 report.
London: UK Commission for Employment and Skills.
Spilsbury, M.; Campbell, M. (2010). Ambition 2020:
world class skills and jobs for the UK. The 2010 report.
London: UK Commission for Employment and Skills.
UKCES (2010a). Skills for jobs: today and tomorrow –
The national strategic skills audit for England 2010.
Volume 1: key findings. London: UK Commission for
Employment and Skills.

Developing skills foresights, scenarios and forecasts 209

ACRONYMS

LMI labour market information

SAMI St Andrews Management Institute
UKCES UK Commission for Employment and Skills
SSCs sector skills councils

210 Guide to anticipating and matching skills and jobs

ANNEX 11.
United States of America

A11.1. Economic and social context A11.3. Key institutions, processes,

approaches, methodologies and results
The United States (US) economy is the world’s largest
with about USD 15 trillion gross domestic product The University of Phoenix Research Institute sponsored
(GDP) (purchasing power parity (PPP)) and a population the research exercise by the Californian foresight
of 312 million. The US has still not recovered fully from organisation Institute for the Future (IFTF), an
the 2008 financial crisis and ensuing recession. independent, non-profit, strategic research group that
has pioneered foresight tools and methods for more
The US is one of the leading countries in occupational
than 40 years.
and skill needs anticipation in the world. Considerable
efforts and resources are devoted to the composition The research methodology was based on the following
of supply and demand for skilled labour and on limiting components.
the extent of skill shortages within the economy. The
forecasts are actively used not only by government A11.3.1.  Drawing on existing foresights
officials but also career counsellors, enterprises and
During the work, the IFTF drew on its previous
individuals.
forecasts in areas as diverse as education, technology,
There are many (sometimes competing) forward- demographics, work, and health, and their annual
looking activities to identify trends, future opportunities ten-year forecast. The ten-year forecast is based on
and funding priorities in science and technology, IFTF’s ‘signals methodology’ which builds on
developed by different institutions in various fields. The aggregating data, expert opinion, and trends research to
project Future work skills 2020, sponsored by the understand patterns of change. A signal is understood
University of Phoenix in 2011, has been chosen as an as a typically small or local innovation or disruption that
example of foresight used for anticipation of future skill has the potential to grow in scale and geographic reach.
needs. The activity resulted in recommendations It can be a new product, a new practice, a new market
relevant for skills development in areas of education, strategy, a new policy, or new technology that points to
business and government. larger, perhaps global, implications. Signals tend to
capture emergent phenomena sooner than traditional
A11.2. Main challenges and policy objectives social science methods, so are very useful in
anticipating highly uncertain futures.
The research institute of the University of Phoenix
pursues academic research on working learners, higher Signals differ from trends as they can point to possible
education and industry with the aim of improving innovations before they become obvious. They also
educational outcomes and promoting a more prepared differ from indicators, because they often cover
workforce. In 2011 it commissioned research to marginal, but potentially game-changing, phenomena
increase understanding of the skills workers will need rather than mainstream. Though local trends and
over the next decade in a technologically advanced and indicators can function as signals when they reach a
changing world. The resulting report, Future work skills certain threshold, they may indicate a change
2020 (authored by the Institute for the Future) analyses spreading to the larger population.
key drivers that will reshape the landscape of work and
identifies key work skills needed in the next 10 years. A11.3.2.  Expert workshop brainstorming
It does not seek to determine what will be the jobs of
The research was complemented by the expert
the future, but to identify the proficiencies and abilities
workshop held at the IFTF’s headquarters. Experts in a
required across different jobs and work settings.
diverse range of disciplines and of various professional

Developing skills foresights, scenarios and forecasts 211

backgrounds were brought together. They were A11.4. Lessons learned
engaged in brainstorming exercises to identify key
The research outlined basic challenges that the future
drivers of change and how these will shape future skill
workforce will face in the form of general skill
requirements.
requirements on the labour market, but also of society
as a whole. Individuals will have to navigate paths
A11.3.3.  Analysis and filtering of collected data
through the rapidly changing landscape of
In the final stage, all of the information gathered was organisational forms and skill requirements, continually
analysed and filtered. Six key drivers and 10 skills areas reassessing, developing and updating their skills. High
that will be most relevant to the future workforce were adaptation capabilities, flexibility and life-long learning
identified. will be necessary to succeed.
The results of the exercise are summarised in
Figure A15.

Figure A15. Six drivers and 10 skills needed in the future

Source: IFTF, 2011.

212 Guide to anticipating and matching skills and jobs

The results have implications for individuals, education (c) for government policy-makers:
institutions, business and government. Authors of the
(i) to make education a national priority to ensure a
study suggest several directions for each of the
country’s ability to prepare people for a
stakeholder groups to tackle the challenges of future
sustainable future;
development:
(ii) to consider the full range of skills citizens will
(a) for education institutions: require, as well as the importance of lifelong
learning and constant skill renewal.
(i) to support developing skills as critical thinking,
insight, and analysis capabilities;
(ii) to integrate new-media literacy into education References
programmes;
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(iii) to include experiential learning that
emphasises soft skills (for example, ability to Holtmannspötter, D. et al. (2010).
collaborate, work in groups, read social cues, Technologieprognosen. Internationaler Vergleich 2010
and respond adaptively); [Technology forecasts. International comparison 2010].
(iv) to target their provision not only to youth, but Düsseldorf: VDI Technologiezentrum GmbH. http://
also to adults; www.vditz.de/publikation/technologieprognosen/
(v) to Integrate interdisciplinary training that
IFTF (2011). Future work skills 2020. Palo Alto: Institute
allows students to develop skills and
for the Future. http://www.iftf.org/uploads/media/
knowledge in several subjects.
SR-1382A_UPRI_future_work_skills_sm.pdf
(b) for enterprises:
OECD (2011). OECD Factbook 2011-12: economic,
(i) to adapt their workforce strategies to respond environmental and social statistics. Paris: OECD
to future skill requirements; Publishing.
(ii) to reconsider traditional methods for
OECD (2012). OECD science, technology and industry
identifying critical skills, as well as selecting
outlook 2012. Paris: OECD Publishing.
and developing talent;
(iii) to take into account the disruptions likely to
reshape the future so it is possible Website
continuously to reshape the company skills
[URL accessed 29.5.2014]
and talents pool for the sustainability of
business goals; Institute for the Future. http://www.itif.org
(iv) to collaborate with universities to address
lifelong learning and skill requirements.

Developing skills foresights, scenarios and forecasts 213

KEY TECHNICAL TERMS

Anticipation Denotes various qualitative and quantitative methods aimed at identifying future skill
needs.
Apprenticeships Systematic, long-term training alternating periods at the workplace and in an
educational institution or training centre. The apprentice is contractually linked to the
employer and receives remuneration (wage or allowance).The employer assumes
responsibility for providing the trainee with training leading to a specific occupation
(Cedefop).
Backcasting Normative method that is used in complex situations where a desirable future is
defined and agreed, and then the method works backwards and identifies several
actions needed to achieve a desirable output.
Cluster A cluster is understood as a network of suppliers, producers, customers and
competitors connecting between themselves and with institutions of knowledge
production and diffusion to build new competitive factors and new competencies and
to increase added value.
Competency The proven or demonstrated individual capacity to use know-how, skills, qualifications
or knowledge in order to meet usual and changing occupation situations and
requirements (UNESCO).
Delphi method This is an expert survey implemented in two or more rounds where, in the second and
later rounds of the survey, the results of the previous round are provided as feedback.
Employment service Public and private employment services whose main task is to aid job matching. (See
provider Volume 4).
European Qualification Reference tool for describing and comparing frameworks for lifelong qualification levels
Framework (EQF) in qualifications systems learning developed at national, international or sectoral levels
(Cedefop).
Exploratory method Future research that attempts to identify multiple possible future settings. It starts with
the preconditions, beliefs and social or technological possibilities which already exist.
Forecasting Quantitative forecasts are statistical projections, econometric models or similar
methods that produce information on aspects of future labour markets (supply and
demand, skills, qualifications, etc.). Forecasts use data about the present and past to
estimate future developments.
Foresight studies Foresight studies are typically multi-disciplinary, mostly qualitative approaches based
on interviews, discussions, focus groups, Delphi methods, to analyse present and
future developments. The key feature of foresights is their action orientation.
Horizon scanning A systematic examination of opportunities and likely future developments which are at
the margins of current thinking and planning: it explores novel and unexpected issues,
as well as persistent problems and trends (OECD).
Job A set of tasks and duties performed, or meant to be performed, by one person,
including for an employer or in self-employment (ILO, 2012).
Labour market Any information concerning the condition, functioning and problems of the labour
information market. The information includes opportunities which may be available to it, and the
employment-related intentions or aspirations of those who are part of it. (See Volume 1).
Labour market A labour market information system consists of a set of institutional arrangements,
information system procedures and mechanisms that are designed to produce labour market information
(LMIS) (ILO, 1997). (See Volume 1).
Matching Matching denotes approaches and actions that aim to increase the employability of the
workforce and reduce skills shortages, including filling jobs with qualified jobseekers.
This term is broader than job referral or placement.

214 Guide to anticipating and matching skills and jobs

Mismatch Mismatch refers to situations where a person does not meet the job requirements
and where there is a shortage or surplus of persons with a specific skill. It includes
different types of skill gaps and imbalances such as over-education, under-education,
over-qualification, under-qualification, over-skilling, skills shortages and surpluses,
skills obsolescence and so forth. Skills mismatch can be identified at the individual,
employer, sector or economy level.
Normative methods Future research that attempts to identify desirable future settings and works
backwards to see if and how this future might be achieved, or avoided, given existing
constraints.
Occupation An occupation is defined as a set of jobs whose main tasks and duties are
characterised by a high degree of similarity. A person may be associated with an
occupation through the main job currently held, a second job or a job previously held
(ILO, 2012).
Public Employment Public Employment Services provide job search assistance and placement services.
Service (PES) They analyse and disseminate labour market information, and develop and implement
targeted labour market programmes and services (ILO, 2009). (See Volume 4).
Qualification A formal expression of the vocational or professional abilities of a worker which
is recognised at international, national or sectoral levels (ILO). An official record
(certificate, diploma) of achievement which recognises successful completion of
education or training, or satisfactory performance in a test or examination.
Roadmapping A normative method that aims to look at the future for a chosen field and to seek the
most important drivers of change in that field (JRC-IPTS). It provides inputs for the
formulation of policies and strategies (UNIDO).
Skill Skill is understood as being the ability to carry out a mental or manual activity, acquired
through learning and practice, where skill is an overarching term which includes
knowledge, competency and experience as well as the ability to apply these in order to
complete tasks and solve work-related problems.
Skill gap Used as a qualitative term to describe a situation in which the level of skills of the
employee or a group of employees is lower than that required to perform the job
adequately, or the type of skill does not match the job requirements (Cedefop, 2010).
Skills Shortage Used in this guide as a quantitative term to describe a situation in which certain skills
are short in supply, for example where the number of jobseekers with certain skills is
insufficient to fill all available job vacancies.
Swot analysis Analytical tool which helps to identify main internal (strengths and weaknesses) and
external (opportunities and threats) factors that may shape the reality (now or in the
future).

Developing skills foresights, scenarios and forecasts 215

ABSTRACT

This guide is a part of the ETF, ILO and Cedefop series of guides on skills anticipation and matching. All the guides
follow a common structure, although they vary in terms of level of detail, technical content and case studies. All
guides have gone through extensive validation and peer review; they were also discussed in detail in international
expert seminars in which academic representatives, anticipation and matching experts, and potential end-users
from all over the world provided comments and feedback on content and usability. Experts and staff of the three
organisations also peer reviewed the guides before their publication.
This volume covers development of skills foresights, scenarios and skills forecasts and aims to support setting up
skills forecasting systems at national level by means of quantitative and/or qualitative approaches. The guide is
built on a number of experiences and case studies in both developed and developing countries. It proposes a set
of instruments devised to help guide new initiatives in this area. Adapted to specific objectives and country
contexts, elements of methods described can be combined.
The guide is intended specifically for countries which are starting to develop systems of skills needs anticipation.
It informs sponsors and implementers of skill needs anticipation initiatives such as policy-makers, education and
training providers, public employment services, social partners, research and specialist organisations.

216 Guide to anticipating and matching skills and jobs