Michela Meghnagi - MAking the best use of Local Labour Market Data
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This year the Forum will focus on creativity, jobs and local development. We will examine how localities can support culture and creative industries as a source of knowledge and job creation and how the creative industry can act as a powerful driving force areas such as tourism, urban regeneration, and social inclusion.
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Michela Meghnagi - MAking the best use of Local Labour Market Data
- 1. MAKING THE BEST USE OF LOCAL LABOUR MARKET DATA Michela Meghnagi OECD LEED Programme
- 2. • Significant improvement in strengthening the evidence base • Methodology tested in SfC in 2010 • Addressed issues related to data collection at the local level • Contribution to the OECD Skills strategy • Data for 35 countries Background
- 3. Regional variation in unemployment, 2012 Source: OECD Regions at a Glance 2013
- 4. SKILLS SURPLUSLOW SKILLS EQUILIBRIUM SKILLS DEFICIT HIGH SKILLED EQUILIBRIUM Regional variation in skills Low % post-secondary education High % high skilled occupations High wages/ productivity High % post-secondary education High % high skilled occupations High wages/ productivity Low % post-secondary education Low % high skilled occupations Low wages/ productivity High % post-secondary education Low % high skilled occupations Low wages/ productivity
- 5. The balance between skills supply and demand United Kingdom Italy
- 6. • Analysis of places to watch different trajectories over time • Why these differences? • Do local initiatives have an impact on that? Not just a static picture
- 7. • Link with outcomes – GDP growth, unemployment • Identify typologies of regions / localities • Link with local initiatives • Build a network of labour market experts to exchange best practices Next steps
Editor's Notes
- Local labour markets vary significantly with respect to industrial composition, skills and unemployment meaning that a one-size-fits-all approach is not always appropriate. Some local economies can be left behind within a growing national economy because of the pull of successful areas both for employers and higher skilled workers, while others experience the challenge of integrating new immigrant populations. Local diversity calls for different strategic priorities locally, not only differences in day to day delivery. It is useful to look at the way in which skills supply and demand are combined in practical terms. The way they will coincide has implications for the type, quality and quantity of jobs that are created at any given level. If you invest only in the supply of skills, you risk facing a skills surplus. On the contrary, if you invest only in the demand for skills (R&D and so on) you may face a skills shortage This can become a vicious circle, as people have no incentives to acquire more skills as there is no suitable demand for them. Likewise companies will not go where skills are low.
- It is not enough to invest in the supply of skills and to activate skills, it is also important to make sure the skills are used by the economy. We need to raise the game of businesses so that they contribute to greater productivity, resilience and competitiveness. Policy needs to pay attention to work organisation, workforce planning, obviously do more training, the managers of SME may need training as well, the apprenticeship system is perhaps not good enough, they should do more technology transfer, modernise their work process, upgrade their product design or their product market strategy, they may need assistance in HR management etc. A LSE can become a vicious circle. There is not necessarily high unemployment, but jobs are low-quality, and since people don’t stay there is high turnover and therefore low productivity To move to a HSE, you need a balanced effort that: Not only builds skills but makes sure they are used. This requires helping firms with improving production process, product market strategies, and product themselves. There is work especially with SMEs which often do not do HR management, workforce planning, management training etc. Think in the long term by involving employers in the development of training programmes This requires the employment and training system to produce a pool of skilled labour force with adaptable and transferable skills
- The need for strategies at the local level derives from the strong regional variations that exist within countries between the supply and demand for skills, which can create potential skills mismatches. Local economies in OECD countries show considerable variation in terms of both the supply of skills (the number of people with skills and qualifications), and the demand for skills (the degree to which skills are sought and used by employers). Looking at both of these sides in tandem can help local areas gain a deeper understanding of prospects for quality job creation. Here we see regions mapped in the UK and Italy 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.
- Places can evolve, sometimes due to external factors but also sometimes due to the strategies they are putting in place. It is useful to look at what has driven progress in places and spread those good practices.