The coordination between education and employment policies

At the end of the 20th century, knowledge production has been radically transformed. As knew knowledge economies and US were becoming an increasing threat for EU, the Lisbon Strategy was set to treat the economic problems that EU is facing. This article discusses and evaluates the potential of the Lisbon Agenda and presents the ways how growth in GDP per capita and employability could be increased by synchronized education and employment policies. It is widely believed that jobs are becoming more and more demanding of skills and as a result workers need to upgrade their skills or risk loosing out in the competition for jobs in the new economy. The research confirms that the reason why many of these unemployed workers might be considered "unemployable in a modern economy" is their comparatively low level of education. Employment rates rise with educational attainment and higher educated individuals also face a more stable labour market than lower educated individuals. The research concludes that in situation of stable higher unemployment rates and higher demand for specific labour skills it is obvious that the coordination between employment and education policies is needed. To ensure employability, policies for promoting education and lifelong learning have to be adjusted to changes in the economy and society.