In an increasingly competitive international environment, providing workers with the right mix of skills can help ensure that globalisation translates into new jobs and productivity gains rather than negative economic and social outcomes, according to a new OECD report. The OECD Skills Outlook 2017 reveals big differences in the extent to which countries are equipping workers with the right knowledge and ability to benefit from the globalisation of production chains. The report finds a country with a skills mix that is well aligned with the requirements of technologically advanced industries can specialise in these industries on average 8 percent more than other countries, and up to 60 percent more than countries with a low alignment between the mix and these industries requirements. A supplementary note covers the UK’s situation.

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As the country gears up for another general election, the CIPD warns today that the UK lags well behind its competitors in Europe and much of the OECD in literacy and numeracy, learning and development, and digital skills. According to the new analysis, this is largely due to the fact that UK employers train less and invest less in skills than most other EU countries. In its report – From ‘inadequate’ to ‘outstanding’: making the UK’s skills system world class’ – the CIPD warns that the UK is sleepwalking into a low-value, low-skills economy which leaves the nation ill-prepared for its post-Brexit future, particularly if the UK is to face restrictions on accessing talent from outside of the UK. The HR body is urging the Government to make funding available to tackle the problem in the workplace. The analysis, which forms part of the CIPD’s formal response to the Government’s Industrial Strategy Green Paper, highlights multiple failings in the UK.

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The OECD has published a new report which uses data from firms in eight countries (Belgium, Brazil, Canada, Costa Rica, Japan, New Zealand, Norway, United Kingdom) to assess the link between ‘business dynamics’ and productivity. The study, Business Dynamics and Productivity, claims that a dynamic business environment plays ‘an important role not only as a key driver of job creation but also as an engine of productivity growth. A growing body of research highlights significant differences in business dynamics across countries and over time, in particular over the different phases of the business cycle.’ Although the definition of ‘dynamic’ remains vague, the report suggests that firms who go beyond the average that is expected of them are not only better equipped to capitalise on the good times but also better at dealing with major economic shocks. The report looks in depth at the question of whether business growth and productivity are best served by organic growth through job creation or non-organic growth through mergers and acquisitions.