Building Quality Jobs at the Local Level
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This expert meeting of the ESSSA initiative will provide a unique opportunity to share international experience in addressing the issue of skills mismatch as a way to contribute to more inclusive growth and good quality job creation across Southeast Asian countries.
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Building Quality Jobs at the Local Level
- 1. BUILDING QUALITY JOBS AT THE LOCAL LEVEL – KEY FINDINGS FROM A COMPARATIVE OECD REVIEW 6th Expert Meeting of the Employment and Skills Strategies in Southeast Asia initiative, Bangkok, Thailand Presentation by Jonathan Barr, Policy Analyst, OECD
- 2. Overview of the reviews • Over 600 local stakeholders consulted across 12 countries • Used a dashboard methodology to assess contribution of local labour market policy to boosting quality jobs and productivity – Index on a scale of 1-5 representing strengths and weaknesses of programme and policy approach 2
- 4. The balance between skills supply and demand varies at the local level United Kingdom Sweden
- 5. Dashboard index: Orienting the employment and training system towards employer demand 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 United States Australia Canada Korea Northern Ireland (United Kingdom) Belgium (Flanders) Israel Sweden Italy (Trento) Ireland Czech Republic France
- 6. Boosting the supply of skills towards employer demand • Efforts being made to align training with employers and target SMEs • Countries are also ensuring there are flexible opportunities within training programmes (e.g. after-hours and part-time options) • Providing second chance opportunities for workers to re-skill Examples: Using industry reps as trainers (United States and Sweden); Second Career Programme (Canada); Skillnets (Ireland); Employer Ownership Pilots (UK); reverse marketers (Australia)
- 7. Dashboard index: Targeting sectors and areas of future growth 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 Czech Republic Northern Ireland (United Kingdom) Israel France Ireland Michigan (United States) Sweden Flanders Trento (Italy) Ontario (Canada) Australia Korea Quebec (Canada) California (United States)
- 8. Adjusting to new areas of growth and opportunity • Cluster and sector-based approaches are being implemented to better connect education and world of work • Labour market information and counsellors are playing an important role in guiding people into new and growing career opportunities Examples: Local pathway models with green and energy sectors (California); Strategic clusters (Korea); Regional niche sectors (Quebec, Canada); Workforce Intelligence Network (Michigan); Talent Houses (Belgium); industry advisory boards (Australia), ALLIANCE project (France)
- 9. Stimulate demand and strengthening productivity by better utilising skills In some countries, the public sector is: • providing technical assistance and setting an example • working with supply chains and employer networks to stimulate innovation and help employers ‘raise their game’ • putting in place management and leadership training programmes Examples: Australia Workforce and Productivity Commission; Community colleges (Ontario, Canada); Platform Care Limburg (Belgium); Management programmes (Northern Ireland)
- 10. Supporting inclusion • Many countries are delivering targeted programmes to people (e.g. youth and migrants) and places/neighbourhoods • Growing focus on prevention and early interventions – role of mentoring and counselling • Efforts are being made to leverage broader local resources Examples: Pathways to Education (Canada); Unga-in (Sweden), neighbourhood renewal strategies (Northern Ireland), local development companies (Ireland)
- 11. Dashboard index: Local flexibility/adjustability in the employment policy framework 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 Australia Ireland Israel Sweden Italy Northern Ireland (UK) France Korea Czech Republic Canada Flanders United States
- 12. Dashboard index: Flexibility tends to improve policy integration and coordination 4.5 4.5 4.0 4.0 3.5 3.5 3.5 3.0 3.0 2.5 2.5 2.5 4.5 4.0 4.0 3.0 4.0 3.5 3.0 3.0 3.0 3.0 3.0 3.5 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 United States Flanders Canada Czech Republic Korea France Northern Ireland (UK) Italy Sweden Israel Ireland Australia
- 13. Potential collaboration with Asian economies • Develop an comparative index/benchmark across southeast Asian economies which builds on the project methodology, which would: – Examine a number of case studies or local areas to determine the optimal policy and programme mix to support employment and job creation – Assess the degree of coordination and integration between employment and skills policies • Map the balance between skills supply and demand
Notes de l'éditeur
- As Sylvain briefly explained, we launched this project to understand the role of local labour market policy in contribute to quality job creation and getting people back to work. A key part of the project was looking at local practices and partnerships in case study areas and the extent to which policies were joined up locally bringing together the employment service, with training providers and economic development organisations to better match the supply of skills to demand. To build comparisons across participating countries, we developed a “dashboard” methodology, which looks at 16 indicators along 4 thematic areas within each country. As seen from the graphic – the four themes are represented by colours with four indicators within each. Today, I will present the results for 6 of these indicators within the time I have. Within each indicator, we have assigned a value of between 1-5 to represent the relative strengths and weaknesses of the policy approach. This dashboard was developed by looking at a range of qualitative and quantitative information. We also consulted extensively with local, regional, and national stakeholders about the results and policy approaches – over 600 across 12 countries.
- This map shows the 12 countries that are participating in the project and for which we have results – you can see that we have a broad range of OECD economies participating. There is on-going work in England which will be added once it’s finished and it’s possible more countries will join this year.
- The need for strategies at the local level stems from the strong regional variations that exist within countries between the supply and demand for skills, which can create potential skills mismatches. National policy makers need to be sensitive to these variations, which can affect overall competitiveness and growth. Here we see regions mapped in the UK and Sweden into a high-skills equilibrium, low-skills equilibrium, skills gaps, and skills surpluses classification. A high skills equilibrium is where there is a highly educated population whose skills are being put to good use by employers. A low-skills equilibrium is characterised by poor quality jobs and generally low wages. Skills gaps and/or surpluses represent an imbalance, which may be impacting on overall growth. We can see clear differences between the Northern and more affluent southern regions of each country. In Sweden in particular, we can see that areas, which fall into a high-skills equilibrium tend to have major postsecondary educational institutions (e.g. Stockholm, Uppsala, Gothenburg, Malmo).
- In terms of the dashboard, one indicator we looked at was the extent to which the employment and training system was geared towards employer demand This indicator looked at: the degree of customisation within the training system, the extent to which employers were involved in curriculum advice and programme delivery; as well as The availability and accessibility of apprenticeships and other work-based training opportunities Again a reminder that for each indicator, we have assigned a value between 1-5, which is a measure of the strengths and weaknesses of the policy approaches being taken
- In this area, we are seeing comprehensive efforts to further involve employers more in skills development opportunities – including targeted programmes at SMEs, which face particular barriers. In countries, such as the United States, Australia, and Sweden, industry representatives are used as trainers, which helps to build credibility and ensure that curriculum is aligned with the needs of the labour market. Employers can also take a lead role in facilitating workplace training opportunities. While Ireland received a lower comparative score because of its narrow focused apprenticeship system, Skillnets provides a great example on this issue. It is a state-funded, employer-led body that co-invests with employers, particularly SMEs, when they co-operate in networks to identify and deliver training suited to their workforces. A network of SMEs, which are mostly sectoral or regional, is guided by a steering group of the local representatives. In the Czech Republic, SMEs are targeted by the Getting Trained for Growth programmes, which offers workplace training subsidies for companies to hire unemployed individuals. While employer needs are critical, it is important to balancing this with the needs of individuals. Countries are focusing on flexibility within the training system for individuals to undertake after-hours and part-time courses as it is critical to give them re-skilling opportunities following structural adjustment. For example, Ontario, Canada, has introduced the Second Career Programme, which is focused on re-skilling individuals who have lost their job in the manufacturing sector. Individuals are subsidized to undertake long-term training at a local community college for 1-2 years, leading to a credential in a new industry/sector.
- Those communities that are bouncing back the quickest after the downturn are those that specialise in certain economic sectors but are flexible enough to take advantage of new and emerging global market opportunities as they develop. 2. Recognising this, we developed an indicator, which looks at the extent to which local sectors/clusters are systemically identified and the degree to which employment and training programmes are geared to these industries
- What we have have seen that cluster/sector based approaches can be used as a way to better connect high schools with technical and VET systems to set out clear pathways connected to the world of work in local areas of opportunity In Korea, for example, a number of key sectors are identified are the regional level and comprehensive strategies are then developed to foster growth in these industries. In Bucheon (which is a suburb of Seoul), the city’s growth strategy has also identified the importance of attracting firms through industrial clusters that exists in the region. For example, in the lighting sector, companies such as Samsung and LG, are located in the city along with other SMEs. The city has emphasised the importance of intensifying research and development around these clusters by strengthening linkages between industry and education institutions. In Antwerp, Belgium, several sectoral networks (called Talent Houses) have been established to bring together educational providers and labour market actors, aiming at promoting smooth transitions from education to work. In better connecting the education system to the world of work, we see that labour market information plays a critical role in providing youth and unemployed adults with information on new opportunities, the education required, and expected wages. For youth in particular, counsellors within high schools can play a critical role in making them aware of their career options and required training courses. Lastly, an important policy trade-off that needs to be considered when developing cluster approaches relates to missed opportunities from promoting broader economic diversity. There is risk from picking sectors, which in the end may not be bring their full growth potential
- When there public sector is involved, we see that it can provide technical assistance and set an example. For example, in Australia, the Australia Workforce and Productivity Agency plays an advocacy role and consults closely with industry to provide advice on better utilising skills in the workplace The public sector can work with local supply chains to stimulate innovation, helping employers to raise their game and become more competitive. For example, in Niagara Falls, Canada, the local community college works with the wine sector to undertake applied research to upgrade products and production processes, stimulating overall job quality and the profitability of the firm, which can create more jobs locally Lastly, management and leadership training programmes can be put in place. In Northern Ireland, the Department for Employment and Learning provides a suite of programmes focused on management and leadership development, all delivered under a ‘Made not born’ banner. All programmes were 100% funded by the government and are delivered by accredited training providers
- Many OECD countries are designing policies targeted to specific people and places/neighbourhoods within a region and there has been some success. For example, in Sweden, the Unga-in project was launched in response to the riots in Stockholm and Malmo last summer. The project targets drop-outs who are not participating in employment or skills programmes. The goal of the project is to give young people greater ambition and motivation to participate in the labour market. Participants meet with staff in a “job garage” where there are provided with counselling and mentoring opportunities in a more informal setting. In Israel, 21 Employment Orientation Centres have been created as a one-stop-shop for arab-Isreali job seekers to provide training, job placement and career guidance services. 4. In Northern Ireland, Neighbourhood Renewal (NR) is a cross-government strategy that aims to bring together all organisations working on issues that will impact on disadvantage and deprivation in 36 targeted areas – 15 of which are in Belfast. They are responsible for developing and implementing agreed local plans. These plans cover a range of physical, social, environmental and economic regeneration activities – including employability and skills development
- I have highlight a number of local employment and economic development initiatives that we have learned about during our series of 12 country reviews. They clearly demonstrate the potential for the local level to take a leadership role in job creation strategies. One consideration is that the local level can only develop strategies in so far as it is enabled by national policy frameworks. Based on previous LEED work which has highlighted the importance of flexibility for the employment service in taking a leadership role, we have examined how much flexibility is provided across the 12 countries. When we talk about flexibility, we are not referring to operational flexibility but the ability of the employment services to influence and adjust their: Strategic approach Programme design Eligibility criteria Budget and performance management; and Outsourcing arrangements Here, the results are quite interesting because as you can see, countries which are decentralised politically (outside of Australia) tend to have more flexibility within the public employment service.
- Based on our flexibility measure, we also assessed the degree of policy coordination and integration. By this, we looked at the extent to which the employment service works in partnership with training organisations and economic development agencies. You can see here that there is a positive relationship between flexibility and policy coordination, which suggests that injecting greater flexibility into the management of policies could bring about reduced silos locally The one outlier within our study is the Czech Republic and Martin will touch upon why this is the case. At the low flexibility side, Australia is an outlier and this reflects a specific initiative that was introduced by the government to better connect actors locally – a Local Employment Coordinator, who is a government agent designed to facilitate partnerships on the ground.
- In conclusion, I hope that this presentation has highlighted some interesting practices across the participating countries, which can serve as a basis for mutual learning. I have had the fortunate opportunity travel to all 12 countries participating in the project. One factor which is common across all the countries and for which international comparison cannot be made is the amount of passion, knowledge and expertise at the local, regional and national level. Thanks!