Young workers face increased challenges in an age of automation - PwC Young Workers Index 2017
- Findings show potential US$1.2 trillion boost to OECD economies in the long term through improving young workers’ skills, enrolment in education and job opportunities.
- Switzerland, Iceland and Germany are the top ranked OECD economies in PwC’s Young Workers Index for second year in a row based on a range of employment, education and training indicators.
- Across OECD countries, around 20%-40% of existing jobs for young workers could be at risk of automation by the early 2030s, but new technologies will also boost productivity and wealth, and create many new jobs.
- Enhanced vocational training and particularly STEM skills are needed to make young people adaptable enough to thrive in an increasingly automated world.
- The proportion of young workers not in education, employment or training (NEET) is back down to its pre-crisis levels of around 17% on average across the OECD. However, youth unemployment levels remain high in many countries, notably in Southern Europe.
- On average, students from lower socioeconomic backgrounds are three times more likely not to achieve a baseline level of proficiency in science.
- This disparity is especially pronounced for young men with low education levels, who could face risks of automation of up to 50% by the early 2030s, as compared to only around 10% for both male and female university graduates.
- Reducing NEET levels across OECD countries to the same level as Germany, one of the top performers in the index, could boost total OECD GDP by around US$1.2 trillion in the long term.
- Methodology: The PwC Young Workers Index is a weighted average of eight indicators, including NEET rates, employment and unemployment rates, incidence of long-term unemployment, school drop-out rates and educational participation rates. The age range covered is generally between 15 and 24, but varies as appropriate by indicator.
These indicators are normalised, weighted and aggregated to generate index scores for each country. The index scores are rescaled to values between 0 and 100, with the average value across all 34 OECD countries set, by definition, to 50 in 2006. Index scores were also calculated for 2011, 2015 and 2016 (or the closest years for which internationally comparable data were available).
- Further details of the methodology, including the calculation of potential long-term boosts to GDP from lower NEET rates, is contained in the full report. This will be available from 11 October at www.pwc.co.uk/youngworkers.
Rowena J. MearleyDirector, Global Communications/PRUnited Statesrowena.firstname.lastname@example.org+1 646 313 0937+ 1 347 501 0931
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