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Material of the 10th Annual meeting of the OECD LEED Forum on Partnerships and Local Development |23-25 April 2014 | Stockholm, Sweden …

Material of the 10th Annual meeting of the OECD LEED Forum on Partnerships and Local Development |23-25 April 2014 | Stockholm, Sweden
More info http://www.oecd.org/cfe/leed/10th-fplg-meeting.htm

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  • 1. TRANSITIONS THEY ARE HERE TO STAY 10th Annual Meeting of the OECD LEED Forum on Partnerships and Local Development, Stockholm April, 2014 Guillermo MONTT Directorate for Employment, Labour and Social Affairs guillermo.montt@oecd.org
  • 2. Transitions: 1950s • The internal labour market model of the 1950s: Hired at the Firm Retired from the Firm with pension Supervisor Manager School
  • 3. Transitions: Today School ? • Today: – 1950s model of a career-job is less and less frequent – Different business model • Outsourcing • Temporary work arrangements • Technological and structural change, etc. – Different worker expectations • Transition between jobs and employers, but also transition between careers • More transitions means more gaps where an individual can fall and cross to the vulnerable side of the divide • These transitions are both voluntary and involuntary
  • 4. Transitions: Unwanted from the step 1 • No security that your first or subsequent jobs will be in the field where you studied or at the level you feel adequate: – Large percentage of field of study mismatch – High likelihood to be overqualified
  • 5. Transitions: Unwanted from step 1 0 10 20 30 40 50 60 CzechRepublic Japan Belgium(Flanders) Austria Australia SlovakRepublic Sweden Poland Netherlands Denmark Average Canada Ireland Germany Korea Spain Cyprus* UnitedStates Finland Estonia UnitedKingdom(ENG/NIR) Italy Norway Over-qualification Field mismatch Source: OECD, PIAAC 2012 Database The local job market is not ready for people like us…(or, sadly, doesn’t really need us) Education systems (schools, higher education, adult training) need to provide solid foundation skills to enable workers to work in different fields to facilitate transferability of workers in case of need Actors in the education system at the local level need to be more responsive to the local labour market demand Employers need to connect better to training institutions to ensure a better link between their employment needs and what they can find
  • 6. Transitions then continue • Once a worker, transitions between jobs, employers and careers continue: – Technological change, outsourcing – Change in personal interests • Workers need to maintain (or increase) their foundation skills base to avoid skills depreciation and obsolescence and vulnerability upon transitions. Or given the opportunity to maintain or increase their skill levels
  • 7. 225 250 275 300 325 15 20 25 30 35 40 45 50 55 60 65 Literacy score unadjusted Numeracy score unadjusted Literacy score adjusted Numeracy score adjusted PIAAC Score Age Skill depreciation (PIAAC) Older workers tend to have lower levels of numeracy and literacy skills (foundation skills). They are thus less able to successfully navigate transitions Two possible reasons: 1) Skill depreciation 2) Today’s education systems are better than yesterday’s (First explanation is more likely in those countries with comparable data with ALL and IALS studies) Skill depreciation is steeper among individuals out of the labour force and among the unemployed: if skills are not used they tend to disappear
  • 8. Transitions then continue • Maintain foundation skills levels – Encourage skills use both at work and outside work • Encourage skill upgrading and updating • Question: if employers are less likely to invest in worker skill development… who will? • Develop well-designed ALMP and activation strategies • 1/3 of the unemployed are long-term unemployed who are at risk of becoming inactive and at serious risk of skill depreciation • Link ALMPs to displaced workers • Around 5% of workers experience are laid off due to economic, technological or structural reason in any given year • Experience of prolonged unemployment may bring skill depreciation • Trend is for high-skill jobs to be created at a faster pace than low-skill jobs
  • 9. The take-away point Promote and ensure a high skilled workforce • For individuals: assume transitions will be part of the career • For training institutions: promote high skills level and abundant foundation skills (PISA) • For employers: seek out partnerships with training institutions to facilitate linkages • For policy makers: support displaced workers, anticipate demand, encourage skills use outside the work environment • For local actors: seek partnerships to align worker skill demand to training institutions
  • 10. For further information • OECD Employment Outlook [LINK] • OECD Skills Outlook [LINK] • OECD Survey of Adult Skills [LINK] • OECD Reviews of Active Labour Market Policies [LINK] • OECD/LEED Local Job Creation [LINK] • Follow us on Twitter: @OECD_Social
  • 11. TRANSITIONS THEY ARE HERE TO STAY 10th Annual Meeting of the OECD LEED Forum on Partnerships and Local Development, Stockholm April, 2014 Guillermo MONTT Directorate for Employment, Labour and Social Affairs guillermo.montt@oecd.org