3. Challenges and opportunities
Jobs are vital:
• 25 million people unemployed
• 18 million new jobs needed
Cities matter:
• More than two thirds of the EU‟s
workforce live in urban areas
• Cities are the core of the economy
5. City action on jobs – the basics
ECONOMIC GROWTH & DEVELOPMENT
PEOPLE
(LABOUR MARKET)
ECONOMY LABOUR MARKET MANAGEMENT
(PRODUCT MARKET)
6. Where do jobs come from?
ECONOMY PEOPLE
(PRODUCT MARKET) (LABOUR MARKET)
Employment
Consumer demand ECONOMIC GROWTH & DEVELOPMENT
intensity
Supply conditions LABOUR MARKET MANAGEMENT New & better jobs
Economic structure Existing jobs
Competitiveness Skilled workforce
7. Key messages for cities - Jobs
• Jobs are created when companies take on
more people
• Encouraging the growth of existing
businesses is vital – global and local
demand
• Inward investment, enterprise support and
entrepreneurial attitude make a difference
• Don‟t forget competitiveness!
• Public and third sector jobs matter
9. Managing the labour market
ECONOMY PEOPLE
(PRODUCT MARKET) (LABOUR MARKET)
Employment
Consumer demand ECONOMIC GROWTH & DEVELOPMENT
intensity
Supply conditions LABOUR MARKET MANAGEMENT New & better jobs
Economic structure Existing jobs
Competitiveness Skilled workforce
10. Key messages for cities – labour market
• Growth can be made more „job rich‟
• Action can create better jobs
• We need a more flexible and adaptable labour
market
• We need to upgrade skills of the local workforce
• Skills need to match current and future labour
market needs
• We need a virtuous circle of economic and
workforce development
13. Making the connections
ECONOMY PEOPLE
(PRODUCT MARKET) (LABOUR MARKET)
Employment
Consumer demand ECONOMIC GROWTH & DEVELOPMENT
intensity
Supply conditions LABOUR MARKET MANAGEMENT New & better jobs
Economic structure Existing jobs
Competitiveness Skilled workforce
14. A few words from Debra Mountford,
Senior Policy Analyst and Manager at the OECD LEED Forum
"Cities need to start with where they are,
rather than where they want to be, and
then work forwards from there - and they
can probably then overcome some
challenges - they need to audit their assets
and then 'sweat them’.”
15. Key messages for cities - connections
• Shared information and intelligence are vital
• Benchmark your city against others
• Monitor and evaluate your progress and polities
• Develop good governance structures and use them
effectively
• Coordinate actions – make connections, develop
networks and partnerships
• Invest in capacity and capability
• Build strong city leadership
17. Bringing it all together
ECONOMY PEOPLE
(PRODUCT MARKET) (LABOUR MARKET)
Employment
Consumer demand ECONOMIC GROWTH & DEVELOPMENT
intensity
Supply conditions LABOUR MARKET MANAGEMENT New & better jobs
Economic structure Existing jobs
Competitiveness Skilled workforce
18. A few words from Professor Michael Parkinson to finish…
(European Institute for Urban Affairs)
“The key drivers of success that I have
stuck with for 20 years are skills and
human capital; innovation; economic
diversity; connectivity; place quality; and
strategic governance capacity. It is action
on these which makes the difference
between economic success and failure.”
Editor's Notes
Title slide to be projected as people enter the roomAP to introduce More Jobs work – core group, desk work, evidence hearings etcPurpose of today: share emerging findings; consultation forum / sounding board & opportunity to collect more evidenceFormat of workshop:Presentation of emerging findingsInteractive workshopHand over to Mike
Unprecedented period of economic volatilitySome (many) believe we will never return to pre crisis levels of employment and growthMany also believe that the margins of manoeuvre for cities in terms of jobs and growth is minimal
But that ‘s a bit defeatist isn’t it – how can cities just sit back and watch when the statistics speak so loudlySurely they have a duty to their citizens to take some action hereIt’s not easy – lots of dilemmas, trade offs etc – especially in a context of austerity where everyone is being expected to do more with lessBut cities are the engines of growth – the opportunities for them to make a difference are real
From our work we think we have some suggestions / reflections on what cities can do to support and grow new jobs in the recoveryNo one size fits all solutions – all cities are different – look at the unemployment rates in Spain compared to Germany etc
We have put together a framework for city action on jobs – this is based on the premise that cities need to address three broad sets of issues to successfully generate new jobs:1. the size and growth of the local economy determines the number and growth of jobs available. A successful ‘product market’, is crucial to jobs growth. City policies to build the local economy are vital. 2. Cities also need, therefore, to ‘manage’ their local labour markets to help make the most of this economic growth. Local citizens may not be able to access the job opportunities generated; and the type of jobs may leave the labour market polarised with too few high quality, well-paid jobs or too many insecure, low-paid jobs. 3. These two sets of actions cannot be undertaken in isolation, separately from each other. need to be aligned, to connect, so that they can work together and complement each other. we need to put in place mechanisms to connect the different parts of the system together. We need shared intelligence about the economy and labour marketWe also need good governance: a means of managing the system as a whole so as to encourage collaboration and achieve the effective coordination required to obtain the best outcomes from our actions.
In the next 10 minutes or so I’m going to unpick each of these 3 elements – starting with the Product Market:First thing to note here is:Demand matters – from within and from outsideFrom within – keeping spend local – preventing leakagesLocal Illustrations: local purchasing agreements – ‘buy local’ (procurement); community currency initiatives, ‘my spending is you income’Exports vital – so cities need to think about positioning themselves for this new reality – ref. Sergio’s comments about Portugal / South AmericaSo does supply – need to have a business friendly environment, conducive to entrepreneurship and innovation, good business support, access to finance (ref Jonathan Potter?) (ref. Sundsvall Summer Entrepreneurs)Economic structure also a key factor – diversification / specialisation? It’s not a question of either – or. We need to think about resilience too – increasingly people are turning to smart specialisation? (ref. Albacete? Barnsley?))Let’s not forget the importance of competitiveness - the ability to produce cheaper and/or better quality goods and services than others - is crucial to growth and jobs – maybe ask the audience how many of them prioritise this? (like at the ESIMeC final event?)Finally we need to consider other sources of jobs – public and private – voluntary / third sector – especially with health and social care being cited by many as offering potential for growth in the future. It’s not a question of ‘private good; public bad’ – high value quality jobs is what matters (ref. Employer ambition?)
Run through these – might sound like stating the obvious but for emphasis Now going to hear what some of our witnesses have to say about how cities can generate new jobs
Now over to the people – the labour market – the 2nd core pillar in our framework for city action on jobs:First we need to consider the importance of job rich growth – most of you will probably be aware of the Commission’s communication on a job rich recovery – cites Green, White (health and social care) and Digital jobs as offering most potential here. Cities have a role to play in making it easier for companies to hire new staffThe Quality of jobs is also important – cities need to drive employer ambition – procurement is a useful tool here (ref Glasgow living wage? Ref the WIB / California example mentioned in the OECD guide?)Existing jobs clearly important – and there needs to be mobility in the labour market – both in terms of geography and occupation – good careers advice / transitions from school to employment / unemployment to employment etc need to be managed better. Cities may also have a role to play in protecting certain companies in times of trouble – or indeed or protecting a whole sector (subsidies, incentives etc)But who will get the jobs that are generated? A skilled workforce is absolutely key – reference OECD LEED Forum and OECD Skills Strategy? We need skills for jobs? (ref Skillnets here) We need more employer / education links (ref Gavle here). Most importantly we need to get rid of the mismatch between demand and supply in the labour market. We need to avoid the pitfalls of a low skills equilibrium.
Run through these – might sound like stating the obvious but for emphasis Now going to hear what some of our witnesses have to say about how cities can manage their labour markets
We’ve called the third pillar of our framework “making the connections” – this is because, the city’s economy and labour market need to be treated as a single, whole systemTo work effectively this system needs:Share and robust intelligence / information - It’s really important that all the key actors – policy makers, practitioners, employers, education and training providers, and members of the workforce – are all well-informed, so that they are more likely to make sensible decisions (ref Manchester)Good Governance also vital - How we do things is as important as what we do. We need to organise our approach to securing more and better jobs so that we are efficient and effective. We need to work in a way that tries to fit all the pieces of the economic and labour market ‘jigsaw’ together in a systematic and coherent way. Policy coherence – strategy – shared vision – common purpose all importantPartnership working – networks and connections have never been so important New metrics / measures of success also vital
Run through these – might sound like stating the obvious but for emphasis Now going to hear what some of our witnesses have to say about how cities can make the right connections and make them well
So – that is our framework for city action on jobsThis is the whole, big picture: a whole system approach to jobs growth. It brings together all the different ‘fragments’ of action that, on their own, individually may be of some benefit but, taken together, integrated and given coherence, can achieve much more than the sum of the parts. It’s not a template or a ‘to do’ list, still less is it a ‘pick and mix’ approach. Every city is different to some degree, in its assets, its weaknesses, its history, its institutions and its resources. Some are performing well economically and in terms of jobs; some are performing much less well. Some have better prospects; some worse. Each city has a distinctive, particular configuration of needs and the specific nature of the actions required will differ from place to place. But the guide offers a way of thinking, guidance and an orientation that will be valuable to most, if not all, cities.All of this will be written up and published in the Spring. We hope it will be a tool to help you develop and apply real action to stimulate jobs growth in your city. You can use it to review your existing approach(es), holding it up as a mirror to your current activity. It offers a way of ‘auditing’ what is done and what could be done. Strengths and weaknesses could be identified and examined. It could be used in capacity-building, in strategy workshops, in networks or partnership meetings, to stimulate thinking and provide advice.In deeply resource-constrained times and when generating jobs growth is really difficult, achieving success through the development of a systematic, comprehensive, whole system approach will not always be easy. The challenge is great, but, then, so is the prize.
Questions?And hand back to AP to facilitate Q&AThen introduce workshop session