Connecting skilled teleworkers to work opportunities.
Market developments and policy responses to the skills, employment and enterprise dilemma, March 2000
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Market developments and policy responses to the skills, employment and enterprise dilemma, March 2000
Across the European Union as a whole unemployment remains high - at or close to an average of ten per cent. During 1999-2000 political leaders have become aware that most "new jobs" will arise either in work connected directly with the Information Society and the new Networked Economy, or as a result of economic growth stemming mainly from the adoption and use of new technologies. But alongside unemployment Europe also has severe skill shortages. Data from the EITO Report (http://www.eto.org.uk/eito) shows that there were half a million unfilled vacancies for people with ICT skills in 1998 and that this will rise to more and 1.5 millions in 2002. The new dilemma is that without these skills companies cannot gain the benefits of e-commerce, teleworking and telecooperation; but unless companies do invest in the technologies and gain the benefits growth will be constrained and the much larger numbers of new jobs associated with that growth will not be created.
A second dilemma compounds this. Because the pace of adoption of the new technologies varies greatly across Europe, people who have the necessary skills are unemployed in one region while companies in another region cannot recruit competent staff. Europe's most "e-business ready" country already has more almost one PC for every two people (including children and elderly people), while the least prepared country has around one for every 12 people.
Governments are now reacting to these problems, but not necessarily in appropriate ways. Both Germany and Britain have announced during March 2000 that they will seek to import tens of thousands of ICT-skilled workers from outside the European Union in order to plug the gap. Ireland already announced similar actions. But most of these people will move into those areas of Europe that already have the highest ICT usage, the highest prosperity and growth, and the most stressed local infrastructures and worst shortages of affordable housing. They will come from countries and regions that have struggling economies and need their skills just as desperately as any country. Meanwhile, European Telework Online receives upwards of 2000 requests a month from people who have relevant skills and could provide them on a telework basis from both within and outside Europe, while still being available to earn and spend where they already live.
Clearly, new market mechanisms are needed to encourage and help companies that need ICT skills but cannot recruit them locally to "hire across the networks" and to tap the whole pool of skills without requiring people to leave their countries, homes and families. Many previous initiatives to address this have failed but the market conditions are now right for this and we have found some encouraging signs, notably the launch of smarterwork.com (http://www.smarterwork.com), a commercial company backed by substantial venture capital, that has already provided a secure environment for some 150 "projects" in which companies and individuals have worked together across the Internet.
This report reviews the market environment for work in 2000, the issues and barriers that have impeded teleworking as a solution, and the conditions for future success. The report is available here in:
Web format (html) for viewing online or downloading (32 kb plus associated image file) (See note below)
Acrobat format (.pdf) for reading online, downloading and printing (39 kb)
Word 97 format (.doc) for downloading and printing in fully editable form (233 kb)
Note: The html version does not yet include the footnotes and references that are included with the .pdf and .doc versions. This will be corrected shortly.