VET-EDS What 21st century LMOs are currently actively pursuing and how they interact with policy

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1 VET-EDS What 21st century LMOs are currently actively pursuing and how they interact with policy Quick Introduction 21 st century LMOs engage in numerous different actions and processes. Traditionally, they were passive LMI providers. Today, they also act as interpreters, evaluators and mediators in contexts of local or regional labour market policy and action. This indicates a major shift in role and function of LMOs. This tool helps understanding this shift and new roles and functions of LMOs. It can be used both by Policymakers to understand the need for up-to-date labour Market intelligence and by labour market Observatories and experts to gauge their own work and to explore where it could go next and the kinds of pressures on the sector in other countries. Background Modern, 21st century labour market observatories (LMO) engage in numerous different actions and processes. Traditionally, they were passive providers of labour market information (LMI). Today, they are also interpreters, evaluators and mediators in contexts of local or regional labour market policy and action. This indicates a major shift in role and function of LMOs. This tool provides a brief overview about and thus, helps to understand today s roles and functions of LMOs. What is LMI? While LMI has always been and still is the essence of what LMOs work with and what they are experts for, it is worth looking at what LMI really means today. Generally, LMI is information about all aspects of labour markets, including quantitative measures, functions, trends, developments, challenges and problems. Additionally, in a broader definition, the concept also covers information about views, opinions, interests and relations of different groups, actors and stakeholders partitioning in the labour market. Lastly, there are fields of information at the boarders of the labour market, such as VETsystem and VET-related policy and action, or the economic development of a region, usually closely coupled to the current state and recent developments of the labour market. The complexity of LMI and its provision This clearly shows, that while the concept of gathering, obtaining and providing LMI seems a rather simple one at first glance, it inherits a great complexity due to the variety of information it necessarily includes for the LMOs. Labour markets themselves are complex and so are their ways of functioning. Consequently, the traditional, passive provision of LMI is, due to the inherent complexity of this information, not promising approach anymore when it comes to its value in supporting local and regional decisionmaking processes, governance and development efforts. In recent developments, LMOs therefore take on a much more active role, where they engage in strategic processes This Toolkit was made possible through the support of the European Commission s ERASMUS+ Programme. All views and opinions expressed are those of the VET-EDS Partners and not of the European Commission.

2 2 with political actors, practitioners and networks of stakeholders and function as intermediary actors with interest-neutral expertise and the competence to monitor, moderate, evaluate and guide such processes, based on deep knowledge about the respective field. Intermediary actors In a complex field such as the labour market, where a large number of groups, actors and stakeholders exist, cooperate and rival with different views, opinions and interests, institutional gaps occur. Institutional gaps mark boarders where the compatibility of such views, opinions and interests come to a limit. They also mark boarders for responsibilities, fields of action and power. The role of the intermediary actor is to fill institutional gaps and enhance cooperation and networking as well as building bridges between the different political stakeholders and interest groups. In the case of LMOs, they achieve this by building their role on solid empirical evidence, obtained with scientific research methods and in addition, communicating and mediating this evidence in an interest-neutral way and putting the information into context through an understandable and manageable form. Other than many other actors in the labour market, LMOs are usually only temporarily engaged in a process. This is due to the many times project based organisation of their efforts, which underpins their neutral and independent position. The two-fold role shift The European Economic and Social Committee describes the Labour Market Observatory and its purpose as: The Observatory was set up with a mandate to identify and analyse labour market trends and challenges, bringing added value to the work of the SOC Section and the Committee. As a general rule, the LMO deals with complex issues requiring longer and more in-depth consideration than is possible using a normal study group working method. (EESC 2015: 1) This description also stresses the complexity of information LMOs are processing. However, the aims of the projects and actions carried out by the observatory are also: to foster exchanges between EESC members and EU or international institutions experts, national experts and practitioners, elected members of the European Parliament and the Committee of the Regions, social partners and civil society organisations. Their aim was to present different aspects and views of each matter and strike a balance between theoreticians and practitioners as well as the EU and the grass roots levels. (EESC 2015: 2) The above fulfilment of the above described aims are also considered success factors for any modern LMO. A report from the Marchmont Observatory in Exeter, England described the role and work of observatories as: The term observatory is used to describe a central unit or portal that will enable a user do access a wide selection of information about a subject area. The most successful Observatories are those that enhance the data through intelligent analysis and informed debate Models range from Websites offering single reports to highly developed portal containing sophisticated information management tools. We believe that the most successful

3 3 Observatories are those, which encourage active participation of users and engender a culture in which organisations and individuals share information and intelligence. (Dean/Pye 2013: 153). A comprehensive list of typical activities, Spanish LMOs engage in and carry out was presented by Atin and Serrano (Atin/Serrano 2013). It provides an overview about some of the fields of effort of the LMOs, also stressing the role of new activities of increasing importance. While this is a description of the Spanish case, it holds true for many other LMOs in other European region, too. Key elements of traditional activities include: analysis of the labour market, detection of training needs, prospective analysis of emerging sectors, information provision, monitoring and assessment, Identification of emerging professions and occupations, qualitative and quantitative monitoring of professions, occupations and jobs in general, monitoring of demand, supply and recruitment activities in the labour market, analysis of economic events with a foreseeable impact on employment, monitoring of job placements, evaluation of trends. Key elements of newer activities are: coordination with competent public bodies on statistical matters, collaboration with VET-providers and other VET-actors, collaboration with universities and providers of higher education, taking on dissemination responsibilities via new channels with technological means, increased advisory and consultancy, development of approaches for information and knowledge transmission, new coordination functions with different other bodies. What the above cited descriptions and observations share is the common understanding of LMOs being or becoming communicative and intermediary actors as well as information managers engaging in political and development processes not only in the role of a passive provider but also as an active partner. This represents the before mentioned change very well. Figure 1 illustrates this change process. However, it has to be noted that not all observatories are undergoing these changes and the same development. Traditional observatories still exist and interpret their primary role as data providers. Figure 1: Changing Roles of 21st Century LMOs Push-Factors Passive Researcher Official Statistics Analysis Registration Data Analysis Function as Data Repository Active Researcher Targeted Analysis Interpretation and Communication of Results Recommendation s based on Evidence Stakeholder Active Part in Strategic Processes Improve Regional Provision of LMI Intermediaries Pull-Factors Source: Own Illustration

4 4 There are different drivers for this change. One the one hand there are pull-factors, resulting from external need and demand for such a role. One the other hand there are push-factors, resulting from the LMOs themselves, their acclaimed status, knowledge and position within the system (Larsen et al. 2013). Pull-Factors An increased demand for LMI, efficient decision-making and effective programs and initiatives comes from increasingly independent acting regions. Greater regional autonomy and a development towards governance policy in these regions fuel a demand for new involvement and better support from all different kinds of actors, organisations and networks. In such decentralized policy, the role of LMOs increasingly becomes the one of a process monitoring, evaluating and transparency-creating organisation. Based on LMI, the observatories discover fields of action, or make them prominent, illuminate new challenges, and lead ways to possible solution processes. Push-Factors As LMOs have existed for quite a long period in many regions and have engaged in a number of different processes, programs and initiatives, they have been able to accumulate social and cultural capital, a good body of resources, tools, experience and knowledge, as well as status and a prominent position in different networks and stakeholder constellations. With successful project-work in the past comes recognition and trust from the other labour market actors. This encourages modern LMO to strive for recognition and take on a much more active and pivotal role in regional labour market policy processes. Summary In summary, 21 st century LMOs are becoming increasingly engaged in policy processes and are in the middle of a transformation from passive data-driven information providers towards intermediary information managers and strategic actors. Their guidance in decision-making processes is becoming more active and a stronger regional leadershiprole is being developed by some. New activities and arenas are added to the portfolio of LMOs. In addition, observatories form networks and take part in activities of international research, exchange and networking. Such networks present a great opportunity to learn and take in new views, approaches and solutions for regional labour market challenges in different regions in Europe and the rest of the world. It can also expand the view on which skills and competences LMOs in different regions are already bringing to the table and which will be pivotal for their new and changing roles in the future.

5 5 References Atin, E., Serrano R. (2013): Shifting Roles of Labour Market Observatories in Spain. In: C. Larsen, S. Rand, A. Schmid, E. Atin, R. Serrano (2013): Shifting Roles and Functions of Regional and Local Labour Market Observatories across Europe. München, Hampp Dean, A., Pye, J. (2013): Chaos and Opportunity The Labour Market Observatories of England.. In: C. Larsen, S. Rand, A. Schmid, E. Atin, R. Serrano (2013): Shifting Roles and Functions of Regional and Local Labour Market Observatories across Europe. München, Hampp European Economic and Social Comitee (2015): LMO Report on the activities Obtained in June 2016 under: Larsen, C., Rand, S., Lorent, P., Baruffini, M. (2013): Shifting Roles and Functions of Regional and Local Labour Market Observatories. In: C. Larsen, S. Rand, A. Schmid, E. Atin, R. Serrano (2013): Shifting Roles and Functions of Regional and Local Labour Market Observatories across Europe. München, Hampp About the author Daniel Kahnert is a researcher at IWAK Institute for Economics, Labour and Culture, Centre of Goethe-University Frankfurt am Main, Germany. IWAK is the labour market observatory of the Goethe-University. Originally a Sociologist, Daniel Kahnert has great experience and expertise in the fields of industrial sociology of labour, organisation science and innovation studies and empirical research methods. Recently he has concentrated his research on the analysis of regional labour market systems in Europe.