This major new initiative aims to help governments build economic resilience, boost employment and reinforce social cohesion.

The Skills Strategy, to be discussed by Ministers at the OECD Ministerial Meeting in Paris this week, acknowledges that with public finances under pressure, governments have tough budgetary decisions to make. But spending on education and skills is an investment for the future and must be a priority.

OECD Secretary-General Angel Gurría, said: “Skills have become the global currency of 21st Century economies. They transform lives and drive economies. Governments must invest more effectively in the education and skills that people will need in tomorrow’s workplace. They need to deploy their talent pool more strategically so that these investments translate into better jobs and better lives. Achieving this is everyone’s business, and employers and unions have a central role to play.”

Today, one in five young people leave school in OECD countries without completing upper secondary education. And in many countries, a third of adults lack the minimum core skills needed to engage in further learning and get a good job.

The social and economic costs are huge: OECD analysis shows that people with poor skills are at much greater risk of unemployment, poverty and reliance on social benefits.

The Strategy tailors recommendations to particular needs in individual countries. In the short-run, the focus in most countries should be on helping youth acquire the skills required by the labour market.

The economic crisis has hit the young and low-skilled particularly hard. The youth joblessness rate is in double digit rates in most OECD countries and two to three times that of adults.

Despite today’s high unemployment rate, a lack of skilled workers means many vacancies remain unfilled. Even at the height of the crisis, more than 40% of employers in Australia, Japan, Mexico and The United States said they couldn’t find people with the right skills.