Skills anticipation in Spain (2023 Update)

Summary

Overview of the Spanish approach

Skills anticipation in Spain involves substantial stakeholder/social partner engagement. The overall approach is designed to bring about a better match between the skills supplied by workers and those required by employers. The involvement of the social partners reflects the tradition of social dialogue around vocational education and training (VET) in the country.

Skills anticipation has been reformed following the introduction of Law 30/2015 to address the relatively poor labour market outcomes arising from VET provision. The law regulates VET system in relation to both employed and unemployed people and implies that more effort is required to improve strategic planning – encompassing skills anticipation – to better coordinate and align the activities of employment and education authorities at national and regional levels. The remit of stakeholders such as employer associations and trade unions following the introduction of the Law is now that of identifying current and future training needs, but not to directly provide training as they did in the past.

At a ministerial level, coordination of skills anticipation activities rests with the Ministry of Labour and Social Economy (Ministerio de Trabajo y Economía Social), and the Ministry of Education and Vocational Training (Ministerio de Educación y Formación Profesional). The Ministry of Labour has responsibility for the public employment service (PES) known as Servicio Público de Empleo Estatal (SEPE), the Observatory of Occupations (El Observatorio de las Ocupaciones), and the State Foundation for Training and Employment (Fundación Estatal para la Formación en el Empleo, Fundae; formerly the Tripartite Foundation). The Ministry of Education and Vocational Training has responsibility for the Observatory of Professions (El Observatorio Profesional) at the National Qualifications Institute (Instituto Nacional de las Cualificaciones, INCUAL). Data on the employability of VET graduates is undertaken by the National Institute for Educational Evaluation (Instituto Nacional de Evaluación Educativa, INEE).

Efforts are being made by the Ministry of Labour and Social Economy (through SEPE and Fundae) and the Ministry of Education and Vocational Training (through INCUAL) to coordinate their methodologies in order to achieve a more consistent approach to skills anticipation. The governmental economic programme for fiscal discipline and social cohesion, known as the Agenda for Change (Agenda del Cambio), focused on enhancing training and human capital and moving towards an efficient and fair labour market. Skills anticipation activities are to provide evidence to measure progress. Component 23 of the Spanish Plan for Recovery, Transformation and Resilience includes funding for the identification of training needs in each of the 23 productive sectors of the Spanish economy. An updated classification of occupational standards will be developed in consultation with social partners, the private sector, and educational institutions to ensure it meets the needs of the labour market.

At the regional level, the regional governments have a responsibility to ensure that training provision meets local demand. Social dialogue takes place between workers and employers through Sectoral Joint Committees/Structures, which are responsible for assessing the skills content of qualifications and the adequacy of training provision in relation to businesses’ needs.

Active labour market policies experienced severe budgetary cuts at the beginning of the economic crisis, though their budgets have subsequently recovered since then. Reaching agreements between social partners at national sectoral level is being a challenge. All this is likely to have constrained skills anticipation activities. Furthermore, challenges remain in effectively disseminating information through career and vocational guidance channels, and in reaching target groups such as small businesses and their employees, as well as self-employed workers.

Description

Skills anticipation in Spain is a collaborative process between national government departments and agencies, namely the Ministry of Labour and Social economy (Ministerio de Trabajo y Economía Social), and the Ministry of Education and Vocational Training (Ministerio de Educación y Formación Profesional), regional governments and the social partners (employers’ and workers’ representatives). In addition, the Chambers of Commerce, of which there are 86 at local level, are co-ordinated by the Cámara de Comercio de España and assess the skills needs of their associated companies. A major reform of the training system for both employed and unemployed people was approved in 2015,[i] [ii]stipulating the improved coordination between the multiple actors involved in the VET system.

The reform also affected the system for monitoring and forecasting labour market needs, with the objective of making it more efficient and able to identify changes in demand for skills (whether basic, specific, or transversal) in the Spanish production system. The Ministry of Labour and Social Economy (via the Public Employment Service (PES) and the State Foundation for Training for Employment (Fundae)) and the Ministry of Education and Vocational Training (through INCUAL) use a coordinated methodology to develop training needs assessments and skills forecasting. Important here is the requirement established in Law 30/2015 of a multi-annual scenario: developed by the Ministry of Labour and Social Economy, this scenario should act as a framework for strategic planning and as reference for the programming and funding of all the training in the employment system as well as its evaluation. The goal is to ensure that training provision is guided by skills anticipation. The multi-annual scenario is expected to be developed every three years (art. 5 of Law 30/2015) by using PES’ annual report, which outlines skills needs (art. 4). This multi-annual scenario has not yet been produced, but in the meantime the Strategies for Active Employment (2017-2020[iii], 2021-2024[iv]) have presented general multi-annual scenarios.

Law 30/2015 also reformed the joint sectoral commissions (Comisiones Paritarias Sectoriales, CPS), in place since 1993, into joint sectoral structures (Estructuras Paritarias Sectoriales, EPS), made up of the representative business and union organisations in each relevant sector. The idea was to pass from the previous 90 CPS to a more manageable number of 23 EPS representing 143 sectors. Law 30/2015 thus expands the role of EPS, as compared with that of CPS, in that EPS should reach agreements on training needs and VET provision for employed and unemployed workers at national sectoral level. These agreements should also include proposals for improving management and quality of VET in the respective sector and information and dissemination of VET provision, especially among SMEs and micro companies. These tasks involve a larger scope than that of CPS, focused on developing sectoral collective agreements. In December 2017, a sectoral map with the 23 joint sectoral structures was approved by the General Council of the National Employment System, paving the way for the 23 joint sectoral structures to be set up. In 2018, the funding system of the sectoral structures was passed, fulfilling thereby the requirements of Law 30/2015. In December 2019, the first and sole (so far) joint sectoral structure was set up in the sector of digital economy and industry. As stated above, the difficulties to reach agreements among the social partners (employers’ and trade unions) are behind the lack of setting up more joint sectoral structures. As foreseen in Law 30/2015, in sectors where a joint sectoral structure has not (yet) been set up, the former joint sectoral commissions continue acting in the same way as before the law. Law 3/2023 tasks a new Office for the Employment Analysis to be created before March 2024- with "prospection and identification of training needs", in collaboration with the Observatory of Occupations and the joint sectoral commissions. Joint sectoral structures are not explicitly mentioned, possibly because only one joint sectoral structure has been set up so far, thus the responsibility of anticipating training needs is also tasked to the joint sectoral commissions. 

National and regional authorities along with the social partners are part of the General Council of the National Employment System (Consejo General del Sistema Nacional de Empleo),[v] which is the main consultation forum related to the vocational training system for employment. The Council guarantees, among other tasks, the correct implementation of Law 30/2015, in close cooperation, with the Spanish General Council on VET (Consejo General de la Formación Profesional) where necessary.[vi]

The principal outputs of skills anticipation activities, as included in Law 30/2015 consist of (a) a multi-annual scenario (which has not yet developed); and (b) the annual report of the PES (Informe Anual de Necesidades Formativas) which identifies the occupations with relatively strong employment prospects and their associated training needs [vii] and includes recommendations relating to training provision for both those in employment and those who are unemployed. Additionally, sectoral reference plans (planes de referencia sectoriales) are produced by the Sectoral Joint Committees.[viii]

Aims

The primary aim of skills anticipation is to match and adapt the skills developed in the education and training system with the skills in demand in the labour market. The skills anticipation approach in Spain attempts to achieve this through the inclusion of stakeholders in the assessment of skills needs. The latter is primarily the responsibility of the respective agencies of the Ministry of Labour and Social Economy, and the Ministry of Education and Vocational Training. The governmental economic programme for fiscal discipline and social cohesion, known as the Agenda for Change (Agenda del Cambio), was published in February 2019. The Spanish Plan for the Recovery, Transformation and Resilience approved by the European Commission in 2020 for the implementation of the MRR funds (Component 23), includes funding for the identification of skills and training needs. Action is focused on:

• enhancing training and human capital;
• promoting ecological transition;
• fostering scientific and technological progress;
• moving towards an efficient and fair labour market;
• reducing inequality and protecting the welfare state; and
• progressing towards a more efficient public administration at the service of citizenship.

Skills anticipation activities will provide evidence to measure progress towards these actions. The agenda also proposes an update to the classification of occupational standards to ensure they meet the needs of the labour market. This updating is to be undertaken in consultation with social partners, the private sector and educational institutions. 

Legal framework

With the aim of matching the provision of training to skills demand, the skills anticipation process has undergone a major reform, though it has not yet been fully implemented.[ix] The provision of training for employment is now matched more closely to labour market skills demand, based on multi-annual planning (through the Strategies for Activation of Employment) in consultation with stakeholders such as regional governments and the social partners. As a result of the reform, a focus has also been placed on the evaluation of training provision. The Sectoral Joint Committees and Structures are also responsible for producing sectoral analyses of changes in their sectors and developing training reference plans.

In summary, the legislative changes in 2015 ensure the following:

• The production of an annual report within a multi-annual framework provided by the Strategies for Activation of Employment (the multi-annual strategic scenarios have not been produced so far) to link training needs with training provision;
• The implementation of an integrated information system, which collates information on developments in the labour market and the associated demand for skills, alongside information on training provision at national and regional levels. This information is intended to inform training provision at national and regional levels. The evaluation of training activities has gained weight as a result of the Law;
• The assigning of the existing Sectoral Joint Committees according to the sectoral mapping developed by the General Council of the National Employment System, so as to prioritise where training needs analysis is to take place. One Joint Sectoral Structure has been set up in the sector of digital industry and economy. In the rest of sectors, the Sectoral Joint Committees continue to develop the tasks assigned.

Governance

Skills anticipation in Spain is governed by both the Ministry of Labour and Social Economy, and the Ministry of Education and Vocational Training and their respective agencies, as detailed above.

The role of stakeholders

Several stakeholders play a key role in skills anticipation activities. Chief amongst them are government agencies such as PES, the Fundae, INCUAL, the National Agency for Quality Evaluation and Accreditation (Agencia Nacional de Evaluación de la Calidad y Acreditación), regional employment and education authorities, and the social partners.

Coordination amongst stakeholders was strengthened with Law 30/2015. Several coordination meetings gathering all main stakeholders were held between 2019 and 2020. These were occasions to decide on the methodology to use for skills needs detection and their conversion into training specialities; to discuss good practice and bench learning within the national employment system on skills needed to fill job vacancies; and to facilitate the articulation of different agents’ roles in the determination of training needs in a shared knowledge space. The stakeholders involved in this process included SEPE’s Observatory of Occupations, National Centres for Vocational Training (Centros de Referencia Naciónal, CRN), Joint Sectoral Structures and Commissions, Fundae. Following the set-up of the first Joint Sectoral Structure in the sector of digital economy and industry in December 2019, in March 2021, Fundae released a tender for the identification of skills and training needs in the sector; in December 2021, Fundae released also a tender to establish a methodological tool for training needs identification to be used by all agents involved in vocational training for employment under the labour remit (sistema de formación profesional para el empleo en el ámbito laboral), and a tool for sharing the results with companies and workers.

Generally, key stakeholders are brought together in joint sectoral structures (EPS) and Sectoral Joint Committees (CPS), constituted by the leading employers’ associations and trade unions in the corresponding sector. EPS’ meetings involve roundtables at a national level to produce sectoral training reference plans, which are then considered by the PES. Various EPS/CPS met during 2021 to draw their proposals for new training specialities in response to training needs identified in each sector; overall, 380 new specialities have been identified. Fundae's technical services reviewed and characterised these training specialities to add them into the catalogue of training specialities (a tool that orders the entire VET offer and is used for its programming and execution).

The General Council of the National Employment System is the main coordinating institution related to the provision of training in relation to employment, and it is also an important forum through which the social partners play a role in skills anticipation (see section “Target groups’ uses of skills anticipation outputs”). It is comprised of representatives from the national and regional employment administrations and the social partners. The Council guarantees, amongst other things, the correct implementation of the recent reform of the VET system (c.f. Law 30/2015) with the Spanish General Council on VET. The Spanish General Council on VET, which is responsible for the development of the VET system, comprises representatives from the Ministries of Employment and Education, respectively, the regions, and the social partners.

The PES and the Fundae are both agencies of the Ministry of Labour and Social Economy. The PES, through its Occupation Observatory (a sub-agency), is the main agency responsible for the assessment of training needs. The Fundae is the managing institution for training both those in employment and those who are unemployed.

The social partners (employers’ and workers’ representatives) participate in the VET system through the Sectoral Joint Committees/Structures, which provide expert guidance on skills anticipation at the sectoral level, establish priorities for vocational training and monitor trends in supply and demand. The Chambers of Commerce help to assess their member firms’ training needs.

Regional employment and education authorities have responsibility for implementing skills policies and adapting them to local conditions. They cooperate and coordinate with the Observatory of Occupations, they participate in the elaboration of the multi-annual strategic documents and the annual reports on identification of training needs. They are also part of the General Council of the National Employment System and of the General Council on VET.

National Centres for Vocational Training (CRN) also play a role in skills anticipation. NRCs are public institutions specialised in the different professional branches. Most NRC are managed by regional administrations (regional employment or education authorities), but some are placed directly under central authorities. They are in charge of carrying out innovation and experimentation initiatives in the area of vocational training, as well as teacher and tutor training (for example, they pilot innovative training actions, assess professional certificates, promote good practices in VET, and establish collaboration agreements involving businesses, universities, and R&D agents). Among their functions, there is the analysis of emerging training needs together with companies of the sector and trade unions.

Target groups

Among the intended target groups are both the information providers themselves and other end-users, including the PES (with its Occupation Observatory), the Fundae, the INCUAL (and its Observatory of Professions), social partners, training providers, education providers (via career guidance counsellors for young people), career counsellors (for jobseekers) and regional governments.

Funding and resources

According to Law 30/2015 on reforming the VET system, expenditure for skills anticipation will be borne by the Fundae, and the respective regional authorities. Additionally, the PES, through the Observatory of Occupations, funds in part the analysis of skills anticipation, while the Ministry of Education and Vocational Training, through its various agencies, carries out and funds other activities. The regional authorities (both employment and education) carry out and fund skills anticipation activities. The Sectoral Joint Committees/Structures are funded by the Fundae.

Methods and tools

The PES is currently analysing future skills needs with up to 5-year horizon and is setting up a new system for future skills analysis. It uses descriptive statistics/stock taking, quantitative forecasting, skills and jobs surveys (questionnaire surveys), graduate tracer studies, qualitative research (including qualitative forecasting), foresight and big data (using web scraping/web crawling to access and gather data, analysing textual data with the use of natural language processing (NLP) tools, using machine learning (ML) algorithms to extract and elaborate information [x].

Skills assessment

The PES analyses skill needs in terms of demand and supply on an annual basis.

Skills assessment in Spain is primarily undertaken by the PES through the Observatory of Occupations, which analyses recruitment activity and employment trends to determine which occupations are increasing in employment and to identify the skills associated with these occupations. The Observatory uses quantitative and qualitative information, and analysis of skills included in companies’ online job advertisements[xi]. Training needs are analysed using both qualitative and quantitative methodologies. The Fundae undertakes training needs assessments by analysing administrative data on training courses and their participants (persons and companies).[xii] This approach was in place before the introduction of Law 30/2015, but the coordination of - and the importance attached to - skills anticipation in general, including skills assessments, has improved since its introduction.

At the end of 2018, the Ministry of Education and Vocational Training was in the process of developing a new regulation to modify the procedure for the identification of training needs of the different sectors. It was foreseen that the professional observatory of the National Institute of Professional Qualifications (INCUAL) would identify, update and, where appropriate, design occupational standards meeting labour market needs. The objective of the reform was to shorten the time necessary for designing and normative processing, while developing training offers (VET diplomas, Specialisation Courses, Professional Certificates) to allow for acquisition of occupational standards.

INCUAL carries out studies to assess the impact of Industry 4.0 to adapt existing occupational standards and define new ones.  INCUAL is currently carrying out prospective studies to assess the needs of adaptation of existing occupational standards to the requirements derived from Industry 4.0 and, where appropriate, defining new occupational standards [xiii].

Skills forecasts

The Fundae undertakes forecasting activities by analysing administrative data on recruitment activity, social security, and tax contributions, as well as exploiting big data. Skills demand forecasting is relatively new in Spain and began in earnest with the Anticipa Project, in 2012, led by the Fundae. This project constructed a model which produces medium- to long-term forecasts of the most in-demand skills in the labour market. It uses data from the EU Labour Force Survey and from the Labour Contracts Statistics, which are compiled by the National Statistical Office (Instituto Nacional de Estadística) and the PES respectively. Since the Anticipa Project, skills forecasting has been regularly undertaken by the Fundae.

Skills foresight

Skills foresight is mostly developed in the Sectoral Joint Committees/Structures through roundtable discussions at national and sectoral levels. The outcomes of their deliberations are sectoral reference plans usually including, amongst other objectives, adapting workers and employers to the use of new technologies, training actions to reduce accidents at work, improving workers’ job specific and transversal skills, increasing firms’ competitiveness, raising awareness about lifelong learning needs, increasing firms’ international trade, modernising firms’ management, and facilitating the introduction of quality systems.

The PES uses interviews and surveys with stakeholders, as well as experts’ workshops / meetings / panels[xiv].

Other skills anticipation practices

Other skills anticipation practices are undertaken by the regions. They typically carry out regional employer surveys to detect skills and training needs, as happens for instance in Andalusia[xv] and in Murcia.[xvi] They may also develop, together with the regional social partners, methodological studies about how to anticipate skills and training needs, and/or sectoral prospective analyses (as in Aragón). Provincial and local authorities also undertake their own activities.[xvii] Employers’ associations may also carry out sectoral analysis on skills and training needs, frequently through focus groups, for instance in the ICT sector (e.g. CONETIC).[xviii] Similarly, trade unions carry out surveys on workers in the sectors they represent. The Chambers of Commerce take advantage of their close relationship with local companies to detect their needs and organise training activities.[xix] Finally, tertiary level education institutions conduct tracking surveys of graduates to assess skills demand among graduate employers. The National Institute for Educational Evaluation (Instituto Nacional de Evaluación Educativa, INEE) also collects data on general education indicators, such as examination achievements. It produces reports on the employability of VET graduates.

The Observatory’s territorial network uses a Customer relationship manager (CRM) to identify information on skills required by employers for selected professional profiles, through online job advertisements posted on the website EMPLÉATE (Get Employed), managed by the PES. Efforts are underway to incorporate text analysis methods and tools, and machine learning to facilitate the use of information from EMPLÉATE in research and reports. Monitoring of jobseekers who hold recognised qualifications (university, vocational training, and professional aptitude certificate) and who are registered with employment offices allows for the analysis of the labour market for graduates[xx]. 

Dissemination and use

Use of skills anticipation in policy

Among the key actors involved in the dissemination of skills information are the PES, the Fundae, the National Qualifications Institute, the social partners, regional government, Chambers of Commerce, and guidance counsellors. Additionally, education institutions (at secondary and tertiary level) may disseminate information on skills demand to students in order to guide their career choices, making use of publications, studies and statistics, webpages, visits of the PES, job fairs and social media (Twitter, Facebook, etc.). The PES, the Fundae, and the Observatory of the Professions provide their information to the public through publications on, for example, sectoral developments and occupational trends.

Outputs from skills anticipation activities mainly affect policies, which in turn are relevant to the delivery of training. In this regard, the PES uses the outputs of the skills assessments it runs to produce multi-annual scenarios: the latter serve as a framework for strategic planning for training provision, supported by analysis of training needs, an annual report,[xxi] and numerous sectoral and thematic reports.[xxii] The training is then provided by authorised organisations/companies. Evaluation has been reinforced by the reform (art.21 of Law 30/2015) and plans for the evaluation of quality, impact, effectiveness and efficiency of the whole VET system within the field of employment are elaborated regularly. These are called Annual Evaluation Plans (PAE), although they are may also be pluri-annual. Promoted by the national PES (and Fundae), and with the participation of the regions and main employers’ representation and trade unions, the conclusions of the evaluations need to be adopted by the General Council of the National Employment System. The most recent PAE was referred to 2019[xxiii] and is based on subcontracting partial quantitative and qualitative evaluations of different parts of the system (training for occupied workers, training for the unemployed, training provided by the companies, etc.). As a result, a number of evaluations have been elaborated. [xxiv]

Cooperation with social partners occurs primarily through the Sectoral Joint Committees/Structures where expert opinion (derived from roundtable discussions between social partners) is used to inform the skills anticipation process. As described above, the Law 30/2015 foresees a rationalisation of the work of these Committees, merging them into new Sectoral Joint Structures, but this element of the law has not yet been fully implemented; in early 2023, the Joint Sectoral Committees coexist with one Joint Sectoral Structure. The Sectoral Joint Committees/Structures bring together employers and unions and produce sectoral reference plans, which PES into account when it commissions training from providers.

Workers’ and employers’ representatives, through their involvement in the Sectoral Joint Committees/Structures, provide substantial expertise which informs sectoral skills anticipation. As such, these actors play a key role in the dissemination of information through their sectoral organisations. Changes to the role of the social partners provided by Law 30/2015 imply that they are no longer involved in delivering training, meaning that training providers and regional governments now have to take on a greater role in the dissemination of information about skills anticipation.

Target groups’ uses of skills anticipation outputs

Including stakeholders in the skills anticipation process makes it easier to reach the respective populations that stakeholders represent, or the client groups they serve. However, difficulties remain in reaching certain groups, such as small and medium-sized enterprises and their employees, and those who are self-employed. There are also concerns about whether outputs from skills anticipation activities are being used by careers guidance services, as they often use information not directly relevant to the labour market. Career guidance at both secondary and tertiary levels often focuses on understanding students’ (or a graduates’) abilities and strengths rather than matching those strengths to labour market needs.

Executive summaries of skills intelligence findings are being used by the PES internally, while general reports presenting key skills intelligence findings are shared with external audience. These may regard specific analyses and evaluations focused on specific topics or target groups. Externals can also access skills intelligence findings through datasets for open access/use[xxv].

The PES staff is informed of skills intelligence outputs through handbooks/guidebooks/toolkits, as are PES customers (including jobseekers, employers, VET providers, other educational institutions). Skills intelligence also enriches guidance offered to externals by counsellors, upskilling and reskilling programmes addressing future skills requirements[xxvi].

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Endnotes