Building quality jobs at the local level – Key Findings from A comparative OECD review
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OECD Workshop on Workforce Development and Local Job Creation
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Building quality jobs at the local level – Key Findings from A comparative OECD review
- 1. BUILDING QUALITY JOBS AT THE LOCAL LEVEL – KEY FINDINGS FROM A COMPARATIVE OECD REVIEW Department of Labor-OECD Workshop on Workforce Development and Local Job Creation Washington, 18-19 November, 2014 Presentation by Jonathan Barr, Policy Analyst, OECD
- 2. Overview of OECD reviews on local job creation • 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 county
- 5. The case of Michigan, 2012
- 6. What can employment and training agencies do to boost job creation? Boosting the supply of skills towards employer demand Stimulating demand and productivity by better utilising skills Supporting inclusion Quality job creation and economic growth Aligning programmes and policies to local economic development
- 7. Local job creation dashboard results: 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 England (UK) Canada Korea Northern Ireland (UK) Flanders (Belgium) Israel Sweden Trento (Italy) Ireland Czech Republic France
- 8. Local job creation dashboard results: 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 California (United States) Quebec (Canada) Korea Australia Ontario (Canada) England (UK) Trento (Italy) Flanders (Belgium) Sweden Michigan (United States) Ireland France Israel Northern Ireland (UK) Czech Republic
- 9. Lessons from other OECD countries • Using industry representatives are trainers • Stimulating networks among employers (particularly for SMEs) and creating employer ownership • Cluster and sector-based approaches can be used to better connect education and world of work • Providing second chance opportunities for workers to re-skill in demand occupations Examples: Employer Ownership Pilots (UK); Regional niche sectors (Quebec, Canada); Second Career Programme (Ontario, Canada); Talent Houses (Belgium); Strategic clusters in Bucheon (Korea)
- 10. It is not enough just to invest in skills..
- 11. Local Job Creation Dashboard: comparing OECD countries on boosting skills utilisation 1 1.5 2 2.5 3 3.5 4 4.5 5 Australia Flanders (Belgium) Canada England (UK) Korea United States Northern Ireland (UK) Sweden Ireland Trento (Italy) Czech Republic France Israel
- 12. Lessons from OECD countries The public sector can: • provide technical assistance and set an example • work with supply chains and employer networks to stimulate innovation and help employers ‘raise their game’ • put in place management and leadership training programmes Examples: Practice labs for innovative work organisation (Flanders, Belgium); Techno parks in Korea; Community colleges (Ontario, Canada); Management programmes (Northern Ireland)
- 13. Local job creation dashboard results: Degree to which employment and training programmes are targeted to at-risk groups 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 Australia Canada Ireland Sweden England (UK) Flanders (Belgium) Israel Northern Ireland (UK) United States France Czech Republic Trento (Italy) Korea
- 14. To target Not to target Targeting focuses in on the specific characteristics and needs of a certain group within the wider population Targeting can result in the association of a problem that is widespread (such as poverty, poor living conditions, lack of work opportunities) with a particular group, thereby stigmatising that group. Targeting can make up for concurrent discrimination taking place elsewhere in society or for past discrimination. Targeting runs the rise of inefficiently screening in those who are not in need of additional support, while screening out non-targeted people that might need help. Existing services offered by mainstream employment services are underutilised by certain groups – targeted programmes may encourage greater uptake and improved outcomes. Targeting one group can lead to competition between communities and potentially aggravate unrest if minority groups are perceived by the wider community to be treated preferentially. To target or not?
- 15. Lessons from other OECD countries • Groups that can benefit from targeting include immigrants and youth (particularly NEETs). • Growing focus on prevention and early interventions – role of mentoring and counselling • Interventions need to be built on a better understanding of “what works” Examples: Pathways to Education (Canada); Unga-in (Sweden), neighbourhood renewal strategies (Northern Ireland), local development companies (Ireland)
- 16. Local job creation dashboard results: Flexibility in the employment policy framework 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 United States Flanders (Belgium) Canada Czech Republic Korea France Northern Ireland (UK) England (UK) Trento (Italy) Sweden Israel Ireland Australia
- 17. Flexibility tends to improve policy integration and coordination Degree of Flexibility Degree of policy co-ordination and integration 4.5 4.5 4.0 4.0 4.0 3.5 3.5 3.0 3.0 3.0 2.5 2.5 2.5 4.5 4.0 4.0 3.0 3.5 3.5 3.0 4.5 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 (Belgium) Canada Czech Republic Korea France Northern Ireland (UK) England (UK) Trento (Italy) Sweden Israel Ireland Australia
- 18. Getting collaboration right • Maximise flexibility available by building stronger capacity and local leadership • Promote partnerships that can develop place-based responses to structural adjustment and local economic development • Using data to stimulate cooperation and partnership working • Need to ensure the right level of governance (e.g. corresponding to travel to work areas) Examples: Workforce Investment Boards (United States); VDAB (Belgium), Entrepreneurship Centre (Quebec, Canada); Workforce Planning Boards (Ontario, Canada); Four Party Associations (Korea)
- 19. For more information: OECD reviews on Local Job Creation
Editor's Notes
- 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. In Korea, we looked at local practices in Busan and Bucheon, a suburb of Seoul.. 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. 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 and you can see that we have a broad range of OECD economies participating. I am going to show you today how Korea compares to these participating OECD countries on a number of different indicators that we have developed as part of the local job creation dashboard, looking at the implementation of employment and skills policies at the local level.
- Francois to replace
- The evidence gathered from this comparative project has shown that employment and training agencies can build quality job creation and growth by: Boosting the supply of skills towards employer demand Adjusting to new areas of growth and opportunity Stimulating demand and productivity by better utilising skills Supporting inclusion 2. I will highlight programme examples across these four areas alongside six comparative dashboard indicators that we have developed.
- In terms of the local job creation 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. Here, we see that the United States and Australia have higher values and we have two experts here that will give you more background on their systems. Our study found that there was a level of dissatistification in Korea with the level of employer engagement and that jobs can go unfilled because of the lack of required skills from vocational education and training graduates. Sector skills councils which were designed to voice the skills needs of employers may not be effectively articulating their needs.
- 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 Here, we see that Korea does very well relative to other OECD countries. Our report highlights the comprehensive efforts being undertaken in Busan to support a number of strategic growth sectors through the Vision 2020 plan. It also notes the efforts being undertaken Bucheon to intensify R&D around a number of clusters, such as robotics and animation and strengthening linkages between these industries and educational institutions.
- In terms of what we are seeing in other OECD countries that might offer useful lessons for Korea, there are a number of policy considerations to highlight. 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. 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.
- The first two indicators had more of a supply side focus but a new area for public policy involves stimulating the demand for skills by working with employers to better utilise the skills of their workforce When employers are reporting skills shortages, these approaches avoid rapidly developing a training course to meet their needs and first focuses on whether there are issues related to the structure and organisation of work within the company
- When there public sector is involved, we see that it can provide technical assistance and set an example. For example, in Flanders, Belgium, practice labs for innovative work organisation have been set up to work with businesses on work organisation issues. The practice labs have been set up in the construction, logistics, healthcare, social economy, social service/care sector and agricultural sectors. They function as a learning network where companies share experience. Managers are encouraged to consider where they can effect change to make sure that workers have more involvement in the way that the firm operates, including exploring new ways that firms can expand their market base to improve the quality of their organisation while also improving job quality. We also see that 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
- The crisis had a disproportionate impact on certain individuals such as youth and immigrants. Therefore, we looked at the degree to which: Programmes and policies are specifically targeted towards at-risk groups and the extent to which impacts and outcomes are evaluated 2. Here, we see relatively high values across most of the countries that participated in the study. While there are a broad range of employment programmes in Korea and some are targeted to specific groups, we see a stronger degree of targeting programming in other OECD countries. Furthermore, the level of evaluations on programme effectiveness is not as robust in Korea compared to other OECD countries. Another significant issue in Korea relates to women’s participation in the labour market.
- 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 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, Korea compares quite well to other OECD countries. Korea has been making efforts to move to a management by objectives system within the employment service, which track additional evaluation measures based on local circumstances. Furthermore, outsourcing arrangement for employment programmes is influenced by a local committee consisting of stakeholders and relevant experts.
- 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. In Korea, we see that moves are being made to give the local level a stronger strategic role in designing and implementing employment and skills strategies. There are a number of strong local governance structures that are capable of taking a leadership role. Our report highlights the four party committees a particularly effective governance structure that advises the government on employment and training needs. We also see that many local municipalities devote a portion of their budget to customised local job creation accounts, which promote training in specfici sectors defined by the local area. This provides a mechanism through which local areas can take a lead role in designing and implementing their own employment and job creation projects.
- In terms of injecting greater flexibility and integration locally, we are seeing several interesting approaches being taken. In Flanders, Belgium, VDAB allows 15% of local budget envelopes to be managed flexibly by local employment offices to design programmes and strategies in partnership with the social partners. In the United States, there are about 600 Local Workforce Investment Boards, which manage employment and training programmes locally. These board are made up of employers, community college representatives, economic development actors, and other non-profit organisations, leading to some innovative job creation approaches. In England, there are 39 local enterprise partnerships which work with the Government to set out key investment priorities, including transport infrastructure and coordinating and supporting policy delivery. They work with local employers, employment services and learning providers to help local workless people into jobs One issue that I would like to quickly highlight is that local areas need to have strong capacity before national governments decided to award greater flexibility. Without sufficient capacity, greater flexibility may lead to unintended consequences and inequality across the system. Therefore, often, it makes to award flexibility as the level of cities, which have a proven capacity to deliver.
- To conclude, I have highlighted a number of examples from other OECD countries and there are many more to be found in the country publications that we have released so far. They can be found by googling OECD reviews on local job creation. Thank You