Without raising skills, no improvement in the economic situation

We begin by observ ing that there is a very strong correlation between labour force skills and the quality of the education system, for the obvious reason a poor ly performing education system translates in the medium term into low skills among the population as a whole. Comparing OECD countries, we then show the close link between labour force skills and: The weight of industry and export market shares; R&D spending and innovation; Corporate modernisation and productivity gains in industry and economywide; The employment rate, the participation rate and the unemployment rate; Income inequality before redistributive policies. Not raising skills in countries where they are low therefore risks rendering ineffective: Reindustrialisation and reshoring policies ( public subsidies, tax cuts for industrial companies ); Policies to support research and incentives for corporate modernisation (investment aid, research tax credits) and the drive to lift the economy up the value chain; Labour market policies (reduction in social contributions, return-to-work incentives ); Redistributive policies, if inequality before redistribution does not stop rising; Policies to reduce the public debt if low skills inevitably lead to low potential growth.