Educated Workers and Managers in the EU-27

Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - The inadequately educated workforce is identified as the top obstacle for firms in the EU-27, with 27% of firms in typical NUTS2 regions citing it as their primary challenge [2][8] - Economic development alone is unlikely to resolve the issue of inadequately skilled and educated workers, indicating a need for targeted policies to improve education and training [65][66] - Training provided by firms is positively correlated with labor productivity and helps reduce disparities in productivity among firms [27][65] Summary by Sections Inadequately Educated Workforce - Firms in the EU-27 rank inadequately educated workers as their most significant operational obstacle, particularly among medium and large firms [2][8] - The incidence of firms citing this issue varies significantly across NUTS2 regions, highlighting the importance of regional factors [3][10] Economic Development and Education - Higher income levels correlate with a greater share of skilled workers, but this relationship diminishes beyond a certain income threshold [9][12] - Policy focus should shift towards ensuring the availability of adequately educated workers as economies develop, especially in lower-income regions [12][65] Training and Productivity - Approximately 43% of firms in typical NUTS2 regions provide training, with larger firms more likely to do so [22][25] - Training is associated with a significant increase in labor productivity, particularly benefiting less productive firms [27][35] - The relationship between training and the share of university-educated workers suggests that training complements higher education rather than substituting it [26][63] Manager Education and Firm Performance - Firms with highly educated top managers exhibit higher labor productivity, more exports, and greater likelihood of engaging in R&D activities [63][64] - The probability of having a highly educated manager increases with the share of tertiary-educated adults in the region, but not significantly with income levels [51][63] Policy Recommendations - Targeted policies aimed at improving education and skills among workers and managers are essential for enhancing firm performance, particularly for less productive firms and those in poorer regions [66]