Integrated local service delivery: How do we get there?
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Governments at all levels are looking for new and innovative ways to include individuals in vulnerable situations such as youth, migrants, persons with disabilities and families facing multiple challenges in the labour market and in society more generally.
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Integrated local service delivery: How do we get there?
- 1. © OECD | Centre for Entrepreneurship, SMEs, Regions and Cities | @OECD_Local | Integrated local service delivery: How do we get there? 21 June 2023 | 14:00 CEST
- 2. © OECD | Centre for Entrepreneurship, SMEs, Regions and Cities | @OECD_Local | Karen Maguire Head of Division, Local Employment and Economic Development (LEED) Programme, OECD Yuna Rogiers Head of Local Coordination, Actiris, Brussels, Belgium Alice Baltus Deputy Head of Local Coordination, Actiris, Brussels, Belgium Aurélie Robin Head of the France Travail Project, Lyon Metropolitan Region, France Alfonso Lara-Montero Chief Executive Officer, European Social Network Thomas Britton Portfolio Manager of the Working Well Programme, Greater Manchester Combined Authority, United Kingdom Jeroen Jutte Head of Unit, European Social Fund Coordination, Directorate-General for Employment, Social Affairs and Inclusion, European Commission
- 3. @OECD_local www.linkedin.com/company/oecd-local www.oecd.org/cfe INTEGRATED LOCAL SERVICE DELIVERY: HOW DO WE GET THERE? Tilde Ussing, Policy Analyst, OECD Centre for Entrepreneurship, SMEs, Regions and Cities 21 June 2023
- 4. © OECD | Centre for Entrepreneurship, SMEs, Regions and Cities | @OECD_Local | Launch of two new OECD papers Shortlink: oe.cd/il/integratedservices Shortlink: oe.cd/il/ALMPs
- 5. © OECD | Centre for Entrepreneurship, SMEs, Regions and Cities | @OECD_Local | The need for labour market integration of individuals far from the labour market is increasing 5 0 5 10 15 20 25 30 35 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Inactivity rate Unemployment rate NEET rate • Labour markets across the OECD are entering a new phase with a shortage of workers and skills • While unemployment is going down, inactivity remains high and youth not in employment, education or training (NEET) is increasing • Yet, governments at all levels struggle with the inclusion of vulnerable individuals far from the labour market Source: OECD Statistics
- 6. © OECD | Centre for Entrepreneurship, SMEs, Regions and Cities | @OECD_Local | Integration of services as the way forward? Traditional welfare systems face challenges Service integration is a possible way for governments to • provide more effective support and • be more efficient in public spending Central government Local authorities and providers Non-governmental organisations Ministry of social affairs (and family/youth Ministry of education Ministry of health Ministry of employment Municipality dep. in charge of social policies/ local youth centres Local education authority/school board/schools Local PES office or municipality dep. In charge of employment policies Local dep. in charge of health services/ hospitals / general practitioners Youth organisations Charities or foundations Private providers Employers Social economy actors Voluntary organisations Unions and employers’ organisations Clients Vertical Integration Horizontal Integration
- 7. © OECD | Centre for Entrepreneurship, SMEs, Regions and Cities | @OECD_Local | The many roles of local authorities in service integration 7 Local governments often play a central role in service integration reforms: • They have important competencies for active labour market policies and related policies • They can realise considerable budget savings by reducing spending e.g. on social services • They are close to citizens and the local stakeholder ecosystem • It allows for piloting/testing at a manageable scale Examples roles in service integration Local implementation of national reforms Piloting in local areas to test ideas/temporary models When service integration drives decentralisation Service integration driven by local authorities
- 8. © OECD | Centre for Entrepreneurship, SMEs, Regions and Cities | @OECD_Local | Subnational government expenditure in central welfare sectors is significant in some countries 8 Source: Database - SNG-WOFI Citizens Costs 1% 30 % Example: In Denmark, 1% of the clients supported by local governments take up around 30% of local government budgets Source: Implement, 2022 Subnational government expenditure by functional classification as a % of GDP (2020), selected OECD countries
- 9. © OECD | Centre for Entrepreneurship, SMEs, Regions and Cities | @OECD_Local | Multiple barriers may explain the hesitancy to integrate 9 Lack of coordination of responsibilities across levels of government and authorities Services are financed by different authorities/ departments and pooling of budgets can be difficult Differences in objectives and approaches: determines what caseworkers can do “on the ground” Integration also covers services delivered by non-public stakeholders: how to incentivise local cooperation? Do caseworkers have a real-time mapping of services to avoid overlaps? Governance structures Financing and incentives Rules and regulations Overlapping service offer IT systems/data sharing Professional cultures Management and skills Third-party involvement IT systems and data are often not linked/standardised across organisations Do local managers have the capacity to “make service integration happen”? Differences in educational backgrounds and working cultures
- 10. © OECD | Centre for Entrepreneurship, SMEs, Regions and Cities | @OECD_Local | How to overcome challenges and achieve effective forms of service integration Multidisciplinary teams and one coordinating case manager An individual action plan that cut across service areas Human-centred design and involvement of clients in decision-making Comprehensive information sharing among caseworkers Strong stakeholder commitment and mutual trust at all levels and throughout the process Governance structures agreed with and binding for all stakeholders Sufficient funding and models to pool financing Coherent skills development (e.g. joint training) Elements of effective service integration How to overcome challenges
- 11. Twitter: @OECD_local LinkedIn: www.linkedin.com/company/oecd-local Website: www.oecd.org/cfe Thank you! Tilde.Ussing@OECD.org
Editor's Notes
- Labour markets across the OECD are increasingly experiencing labour and skills shortages in many different sectors This comes to show among others in the sharp increase in the number of job vacancies over the past decade across the OECD At the same time, the number of jobseekers has fallen with unemployment levels going down in many countries in an economic/labour market perspective, the need for integration of individuals far from the labour market is increasing However, inactivity rates remain high and the number of young persons not in employment, education or training is slightly increasing Shows that governments are struggling to identify the right measures to support labour market inclusion of those groups who are furthest from the labour market
- Governments are trying out may different measures to support individuals far from the labour markets and among these are the integration of services. Service integration is when multiple services across multiple service areas, government levels and providers are delivered in a more joined-up manner to provide a more coherent and holistic type of support for individuals. - Both a vertical and a horizontal dimension of service integration – as shown in the figure. Service integration stands in opposition to what we may think of as the “traditional welfare system” which were or are not really geared to support individuals with multiple needs: Organised in silos Historically weak link between employment and social services Systems do not fit the needs of individuals facing multiple challenges that cut across multiple areas By joining up services and identifying ways to coordinate between different areas and stakeholders, service integration can possibly: Provide more effective support to individuals with multiple needs and Increase efficiency in public spending e.g. by reducing overlaps, improving coordination, and ultimately improving results for clients
- Within the question around service integration we are with this new paper zooming in on the role of local authorities in the new paper. Why is the local dimension important? Local governments often play a central place because: There has been extensive devolution of responsibilities and financing in some OECD countries new paper shows that in 2 out of 5 countries, subnational governments have formal competences for active labour market policies. In addition they are involved in many other services areas as well. Local is the place where services are delivered and therefore local government are close to the service delivery, the clients and the stakeholder ecosystem that is involved in the provision. Given the decentralisation of responsibilities, the financial burden often falls on local authorities if individuals are not in work they can realise budget savings through better support systems Involvement of local authoritie allows for piloting or testing of new programmes at a manageable scale. Across the OECD, local authorities are engaged in service integration reforms in many different ways: Piloting in local areas to test ideas/temporary models – e.g. the UK, Denmark, Italy, Australia Examples of how the ambition to integrate services drives decentralisation reforms – e.g. Denmark, Finland, the UK Examples of service integration driven by local authorities on their own – e.g. Sweden, Canada, the United States, But still many “unknowns”: E.g. what are the measures supporting/impeding services integration, which factors accounting for success/failure at the local level, how to best involve third parties?
- Two figures or examples showing the role of local authorities in financing support for those furthest from the labour market: The figure on the left shows how subnational government expenditure is allocated across different services areas in selected OECD countries. Especially education, and social protection take up a significant part of local public spending in many countries. On the right you see an example from Denmark, where local authorities have extensive responsibilities for the provision of employment, social and related support services. An analyses done by Implement has shown that in Denmark, 1% of the clients supported by local governments take up around 30% of local government budgets. This indicates that there is a group of individuals with very intensive support needs and which the municipalities are spending large amounts on.
- In practice, there are multiple barriers to service integration reforms, many of which are experienced at the local levels where reforms are implemented. These include e.g.: Difficulties in coordination IT systems/sharing data across relevant actors Difficulties in pooling budgets across different authorities Professional and cultural differences across service areas
- While knowledge on how to best do services integration is still limited, the existing literature gives some indications on how to overcome challenges with pursuing integration reforms as well as which elements that are effective in service integration models.