The JRC Statistical Audit of the 2018 European Skills Index (ESI)

Abstract

Increased connectivity between nations, technological development, changes in work organisation and demographic trends have profound effects on the future of work and workplaces. Policies focusing on skills development and human capital are essential to turn these structural changes into an opportunity for all, by increasing productivity levels and quality of life in the EU. The Commission services have developed an EU tailor-made monitoring framework – the European Skills Index (ESI) – that measures the performance of a country’s skills system taking into account its multiple facets from continually developing the skills of the population to activating and effectively matching these skills to the needs of employers in the labour market. The European Skills Index builds on three pillars: skills development, skills activation and skills matching. These pillars are used to organise and aggregate 15 individual indicators into a single summary measure. This framework inevitably entails both conceptual and practical challenges. The statistical audit discussed in this note was conducted by the European Commission’s Joint Research Centre, and it aims at maximising the reliability and transparency of the European Skills Index (1). It should enable policy analysts and researchers alike to draw more relevant, meaningful and useful conclusions on the national skills systems in the EU.

(1) The JRC statistical audit is based on the recommendations of the OECD & JRC (2008) Handbook on Composite Indicators, and on more recent research from the JRC. Generally, JRC audits of composite indicators and scoreboards are conducted upon request of their developers, see https://ec.europa.eu/jrc/en/coin and https://composite-indicators.jrc.ec.europa.eu/