Several global and domestic drivers of change are impacting on both the business environment in which Irish enterprises operate and the skills profiles of workers. These include the digitalisation of products, services and processes; the impact of automation and artificial intelligence; and changing consumer market preferences. Brexit is an additional driver impacting on agri-food, traditionalmanufacturing and logistics activities, and more generally on the supply chain operation in sectors such as biopharma.
Recent OECD estimates suggest that on average 14%of jobs across OECD countries are at a high risk of automation over the next 15-20 years. Another 31%of jobs are deemed at risk of significant change in terms of task content. New jobs will be created too, although these will not be the same as those that are lost. The OECD conclude that the capacity of Irish domestic firms to absorb and implement new technologies is being impeded by relatively weakmanagerial skills and that this partly reflects the low proportion of workers participating in lifelong learning activities. They have highlighted that Ireland is relatively low in supply chainmanagement skills compared to other competitor countries. This is of concern given the importance of international trade for Ireland and the effect of the impending UK Brexit on such supply chains.
A recent report by Ireland’s Expert Group on Future Skills Needs on “Assessing the Impact of Digitisation in Ireland” estimate that one third of jobs in Ireland are at a high risk of being disrupted by the adoption of digital technology over the next 15 years. Much of this will result in changes in job roles and tasks performed by individuals. Sectors consideredmost likely to be affected are agriculture, retail, transport, hospitality andmanufacturing. Persons with lower levels of education are most at risk of job losses.
Findings by the Department of Finance indicate that Irish indigenous firms in themanufacturing and services sectors have experienced declining productivity over the past decade and that the productivity gap between foreign-owned and local enterprises has widened. The resilience of the Irish economy hinges on unblocking the productivity potential of these indigenous SMEs.
The Government’s new Future Jobs Ireland 2019 programme launched on 10th March 2019, prioritises cross-government actions aimed at building a resilient and innovative economy. As Ireland approaches full employment it is seen as timely to shift the jobs focus towards growing highly productive and skilled people working in productive and sustainable business. The development and implementation of Future Jobs Ireland 2019 is being jointly led by the Department of the Taoiseach and the Department of Business, Enterprise and Innovation. Future Jobs is organised around five pillars which are:
• Improving productivity, particularly in Small and Medium Sized Enterprises
• Innovation and technical change
• Enhancing skills and developing and attracting talent • Increasing participation in the labour force; and • Transitioning to a low carbon economy
Future Jobs Ireland 2019 comprises a range of initiatives including those aimed at doubling the participation rate in life- long learning to 18%by 2025, improving leadership and management capabilities in businesses, developing training for emerging technologies, encouraging employers tomake use of underrepresented groups, delivering a new female entrepreneurship strategy, holding a national consultation on the extension of working options to all employees, and the commencing of a strategy for remote working.
Future Jobs 2019 was informed by engagements and consultation across Government Departments and with key stakeholders. This consultation culminated in the Future Jobs Summit held in November 2018 attended by a range of stake- holders, including the IITD. Government Departments are to work collaboratively with stakeholders to develop further deliverables for inclusion in 2020.
Take AwayMessages The upgrading of workforce skills will improve productivity and facilitate the adoption of new technology to take advantage of new business opportunities including in Life Sciences, advancedmanufacturing, agri-food, clean technologies, data analytics, and personal health. Technical skills need to be complemented with leadership, entrepreneurship, communications, teamworking, problem-solving and creativity skills.
Irish SMEsmust significantly ramp up their investment in management and staff training and development. Companies need to develop a Training Plan which identifies the skills necessary to support their Strategic Business Plan and then follow up with the necessary investment.
Companies can enhance their talent supply pipeline by introducing High-PerformanceWorkplace and family-friendly practices, including by offeringmore flexible working arrangements enabling workers to combine work with family and caring needs, education and training, disability, and transitioning to retirement.
The improved alignment of the design and delivery of education and training provision to enterprise needs will enhance enterprise performance and future proof individual’ skills profiles. Flexible, blended learning delivery approaches are needed to fit in with workplace learning needs especially for smaller companies.
As unemployment continues to fall there is a case for a higher proportion of the National Training Fund being allocated towards the co-financing of in-company training including for management development within SMEs and for the digital upskilling of workers at all levels.
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