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Socio-Economic Aspects of Human Capital: Assessment of the State of Play in Employment in the Railway Sector

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Socio-Economic Aspects of Human Capital: Assessment of the State of Play in Employment in the Railway Sector Socio-economic aspects of human capital: Assessment of the state of play in employment in the railway sector Human Capital Report Series Moving European Railway Forward About this publication Manuscript completed on 11 July 2018. Shift2Rail JU, nor any person acting on behalf of Shift2Rail JU is responsible for the use that might be made of the following information. © Shift2Rail Joint Undertaking 2019. Reproduction is authorised provided the source in acknowledged. For any use or reproduction of photos or other material that is not under the copyright of the Shift2Rail Joint Undertaking and Fuel Cells and Hydrogen Joint Undertaking, permission must be sought directly from the copyright holders. PDF HI-01-19-632-EN-N ISBN 978-92-95215-13-9 doi: 10.2881/576255 Project number: 060.32480 Report number: R18025 Authors: S. Dhondt, K.O. Kraan, T.M. Chen, F.A. van der Meulen, D. Islam, F.A. van der Zee Contact: Healthy Living Steven Dhondt Schipholweg 77-89, 2316 ZL Leiden, P.O. Box 30052301 DA [email protected] Leiden, The Netherlands +31 88 866 61 55 www.tno.nl; T +31 88 866 61 00; [email protected] Photos credits: Cover © Adobe Stock, Trafikverket, Amadeus; Back Cover © Shift2Rail JU Legal notice: This document has been prepared by TNO and NewRail for Shift2Rail Joint Undertaking (S2R JU). The information and views set out in this study are those of the authors and do not necessarily reflect the official opinion of the S2R JU. The S2R JU does not guarantee the accuracy of the data included in this study. S2R JU nor any person acting on the S2R JU’s behalf may be held responsible for the use which may be made of the information contained therein. More information on the S2R JU is available on the Internet: www.shift2rail.org. Shift2Rail Joint Undertaking Avenue de la Toison d’Or 56-60, Brussels [email protected] Summary The goal of the report is to assess the current skills for different categories of railway staff, from workers to engineers, railway managers and researchers (task 1). The study on socio- economic aspects of human capital starts with assessing the state of play regarding present employment situation considering work already done on forecasts for human capital in the railways, differentiating between different European regions. The following questions are cen- tral: › What is the current employment level in the EU-railway sector? › Can these figures be differentiated at the level of four regions/clusters? › What is the distribution of employment according to job category and skill level? › What are drivers for change in skill use? To what degree do working conditions play a role? Current employment level According to the Eurostat Labour Force Survey (LFS) 2016, the current level of employment is 817,752 persons working in the following four NACE-sectors: › 30.20 Manufacture of railway locomotives and rolling stock (7%); › 42.12 Construction of railways (NACE-3: 421 Construction of roads and railways) (48%); › 49.10 Passenger rail transport, interurban (ISIC 49.11) (35%); › 49.20 Freight rail transport (ISIC 49.12) (9%). Over the period of five years, employment in the sector seems to have declined with more than 60,000 persons, a drop of nearly 7%. The report provides overviews of employment in four major railway companies in Europe: SNCF, DB, NS and Network Rail. A further differen- tiation of the Eurostat figures to two regions in Europe was done: Germany, Netherlands, France and UK (the so-called core-countries) were compared to all the other countries in Europe. This comparison reveals that the core-countries show stable employment levels, and also a higher level of employment in managerial, engineering and technical jobs in comparison to other countries. Skills distribution In the project, the ISCO-distribution for occupations has been used. The classification is quite abstract. To make the distribution somewhat more understandable, the following jobs should be associated with the occupational titles: › Senior managers: for example, rail operations manager; › Professional engineers: for example, mechanical engineer; › Technicians and associate professionals: for example, dispatcher; › Clerical support workers: for example, railway sales agent; › Service workers and sales workers: for example, train attendant; › Craft and related trades workers: for example, rail switch person; › Plant, machine operators: for example, train drivers; › Elementary occupations: for example, cleaning personnel. Table 1 provides an overview of the current skills distribution according to occupational cate- gory. TNO report R18025 | 060.32480 i Table 1 Trend 2012-2016: development over time of skill distribution within the professional groups 2012-2016: trend ISCED 0-2 ISCED 3-4 ISCED 5-6 Senior managers -10% +5% +5% Professional engineers 0% -1% +2% Technicians and associate professionals -1% -3% +4% Clerical support workers -1% -4% +5% Service workers and sales workers -5% +5% -3% Craft and related trades workers -4% +2% +2% Plant, machine operators and train drivers -3% +1% +1% Elementary occupations -3% -4% +6% The following results are of importance in analysing the skills distribution and development: › There is a clear upskilling tendency visible in all railway jobs towards ISCED5-6 (aca- demic level), but mainly in higher jobs such as professionals, technicians and clerical support workers. In more basic jobs, job requirements also appear to have shifted up- wards, but more to middle educational levels; › Most of the employees need at least middle level of educational degrees to get recruited and to perform their jobs; › The CEDEFOP ESJS-survey adds to this picture that educational requirements may be on the rise in these higher jobs, but that employees experience that requirements in work itself may not be rising. Rising recruitment levels seem not connected to changes in job content. The figures do not allow to say if future changes may require higher job levels. The OECD PIAAC-survey confirms this result in the sense that current requirements to work in a job have risen over time. Most employees find that these requirements are needed for the jobs, but an important group of railway employees also find they are over- qualified for their jobs; › Both surveys PIAAC and ESJS allow overviews of different types of skills needed for occupations (technical, communicative, social, organisational skills). The ESJS results do not show major distinctions in skills profiles between occupational groups, which would mean that all jobs require a considerable amount of skills. The PIAAC results show more differences between jobs, with more technical and organisational skill requirements for management and top-professional categories. Working conditions A separate analysis was taken up on the drivers of skill changes. The railway sectors have always been a demanding sector to work in. The figures of this research confirm this. The only working condition that is markedly better than other sectors, is the training opportunities/effort. Foresight and forecasting studies This report analyses a great number of foresight and forecasting studies on employment. The main conclusions from these reports are: › Employment levels will continue to decline until the end of this decade. After this decade, new growth is foreseen; › Skill levels should be rising, mainly because of technological demands. The sector will see great skill discrepancies, mainly caused by an ageing workforce; › Solutions to deal with these skill discrepancies are seen in more training and in shifting employment practices. In report D1b, the outcomes of these foresight and forecasting studies have been compared to the opinions of experts. The forecast studies show clear discrepancies with the actual TNO report R18025 | 060.32480 ii 6 - 5 Stable 9% Maintenance personnel Maintenance Underskilled Machine driven work driven Machine autonomy High job intensity, low intensity, job High Noisy, physical work physical Noisy, Use of computers of Use Complex work Complex Less client driven client Less Working with substances with Working 6 - - - - - Barrier: more risksfor: more Barrier: - - - - Driver: leading on other sectors: other on leading Driver: Decline 3 44% Train drivers Train TNO report Communicative skillsCommunicative for skillfor changes Working Working R180 or barrier or 6 as adriver as conditions - theIn following figure,the main results have been summarized. ference outcome. in tendencies in employment and skilling. The foresight workshop is needed to e Stable 3 6% 25 | 060. Rail switch worker Rail switch 32480 4 - 3 Growth 10% policies. policies. - Service personnel Service discrepancies Technology raises skillTechnology recruiting recruiting need Ageing Ageing raises workforce - - Forecasters/foresight? Eurofound Eurofound reports overskilling. artefact of artefact HR PIAAC, PIAAC, ESJS:upskilling be may Technical (STEM) skills(STEM) Technical 6 Stable - Socialskills 5 15% Dispatching 16, - 6 - 5 Growth 9% Labour Labour Force Survey : Professional engineers Professional 7% decline 7% decline in 2012 general general upskilling jobs in all 6 - 3 Stable 6% Managers Organisational skillsOrganisational Low High level) - xplain this dif Specificstatistics General statistics General PIAAC 817,752 persons 817,752persons in four sectors four insectors 2016 Labour Labour Force Survey: Skill profile Skill Job growth?Job (ISCED Upskilling? Distribution Summary of main results - iii Contents Summary ............................................................................................................................................i
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