Building More and Better Quality Jobs in the Recovery: Unleashing the Potential of Employment Policy

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1 2012/SOM1/HRDWG/057 Agenda Item: LSPN5.1 Building More and Better Quality Jobs in the Recovery: Unleashing the Potential of Employment Policy Purpose: Information Submitted by: OECD 34 th Human Resources Development Working Group Meeting Moscow, Russia 5-10 February 2012

2 Building more and better quality jobs in the recovery: unleashing the potential of employment policy Sylvain Giguère Francesca Froy PART 1 INCORPORATING THE LOCAL DIMENSION INTO ECONOMY-WIDE POLICY FRAMEWORKS 1

3 Employment policy: a dual dimension Building a pool of skilled labour force Economy-wide: generic skills, life-long learning Local: upskilling, integration An integrated approach to skills Attraction & retention ti Upskilling Integrated local skills strategies Integration Source: OECD (2009), Designing Local Skills Strategies 4 2

4 Employment policy: a dual dimension Building a pool of skilled labour force Economy-wide: generic skills, life-long learning Local: upskilling, integration Supporting employment progression Median earnings in Canada, France and US: Long trends Canada United States France 3

5 Median earnings in selected OECD economies: Latest trends Austria Belgium Germany Japan Korea Sweden Average annual growth in median earnings since 2000 Economy Average annual growth (%) Latest year Austria Belgium Canada France Germany Japan Korea Sweden United States

6 Employment policy: a dual dimension Building a pool of skilled labour force Economy-wide: generic skills, life-long learning Local: upskilling, integration Supporting employment progression Economy-wide: geographical mobility Local: career clusters Promoting better skills utilisation Geographical differentiation in skills and productivity GAPS AND SHORTAGES HIGH SKILL EQUILIBRIUM Skills demand LOW SKILL EQUILIBRIUM SURPLUS Skills supply 5

7 Employment policy: a dual dimension Building a pool of skilled labour force Economy-wide: generic skills, life-long learning Local: upskilling, integration Supporting employment progression Economy-wide: geographical mobility Local: career clusters Promoting better skills utilisation Economy-wide:? Local: management training, new forms of work organisation, technology transfer Source: OECD (2009), Designing Local Skills Strategies 12 6

8 Drivers of policy coordination Source: OECD (2010), Breaking Out of Policy Silos: Doing More with Less Local flexibility in policy management Note: TL3 or below; Source: OECD (2009), Flexible Policy for More and Better Jobs 7

9 Key points to remember To support economic growth, labour market/social policy must operate at both the economy-wide and local level This dual dimension is manageable with flexible policies (in both centralised and decentralised frameworks) There are ways to maximise both flexibility and accountability (making all stakeholders responsible for achieving results) PART 2 DEVELOPING BALANCED STRATEGIES FOR MAXIMUM IMPACT ON JOB QUALITY 8

10 The OECD LEED diagnostic tool GAPS AND SHORTAGES HIGH SKILL EQUILIBRIUM Skills demand LOW SKILL EQUILIBRIUM SURPLUS Skills supply EI regions in Ontario, Canada 2006 DEMAND Oshawa Ottawa (1.17,1.04) 0.6 Kitchener Toronto Hamilton 0.4 Kingston South Central Ontario Windsor London Sudbury 0.2 Thunder Bay Niagara Eastern Ontario St. Catharines Huron SUPPLY 1 Central Ontario Northern Ontario Rural Urban 9

11 EI regions characterised by high % employment in secondary sector, Canada, 2006 DEMAND Oshawa Kitchener Hamilton Windsor London 0.2 Sherbrooke Eastern Ontario St. Catharines 0 Trois-Rivières Central Ontario SUPPLY South Central Quebec Montérégie -0.2 Chicoutimi-Jonquière Central Quebec Rural Urban Provinces in Veneto and Campania, Italy, 2001 DEMAND Vicenza Belluno Treviso 0.2 Verona Padova Venezia Rovigo Napoli SUPPLY -0.2 Benevento Caserta Avellino Salerno -1 Veneto Campania 10

12 Provinces in Veneto and Campania, Italy, 2008 DEMAND Vicenza Belluno Venezia Verona 0.2 Padova Treviso Rovigo Caserta Napoli SUPPLY -0.2 Salerno -0.4 Benevento Avellino Veneto Campania 4 domains of influence on skills Supply Education & training systems Demand Context for deployment Competitiveness strategies Flows of skills Nature/design of products or services Product market strategies Evesson et al,

13 A skills shortage.. A lack of relevant training for local people? A problem of work organisation, job quality and retention? Riviera del Brenta, Veneto Supply Demand Out of hours training for staff Training for managers Branding R&D and innovation 12

14 Oyonnax, France Supply Demand Exchange of knowledge in Pole High, medium, low skills Flexible specialisation Making it work: stakeholders Public Employment Service Universities and colleges Unions Local councils Economic development actors Employers & employers associations 13

15 Making it work: strategies & governance From demand-led to shaping demand Place-based or sector-based approach? Flexibility in delivery The OECD Skills Strategy Ensuring an adequate supply of skills now and for the future Issues: quality and quantity of output from education systems, immigration, upgrading of the skills of the existing workforce Optimising the productive use of skills Issues: maximising participation, labour market information, recognition of qualifications, employer demand Effective steering and funding of skills systems Issues: policy coordination, role of social partners, who should pay, operation of incentives 14

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