Developing successful employment & skills strategies - Francesca FROY
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Presentation by Francesca FROY, Advisor to the OECD LEED Programme from the OECD capacity building seminar “A workforce for the future - Designing strong local strategies for better jobs and skills”, 28-29 Nov 2017, Venice, Italy. More information: http://oe.cd/CBSVenice2018
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Developing successful employment & skills strategies - Francesca FROY
- 1. DEVELOPING A SUCCESSFUL EMPLOYMENT & SKILLS STRATEGY Francesca Froy, Advisor to the OECD LEED Programme OECD Venice Capacity Building Seminar 28-29th November, 2017 Economic growth Jobs Skills
- 2. Why invest in people?
- 3. Higher educational attainment brings greater employment opportunities… 3 Source: OECD Education at a glance, 2015 How many are employed? >80% of tertiary-educated people >70% of people with upper secondary or post-secondary non-tertiary education <60% of people with below upper secondary education. Why are tertiary level skills so highly valued? Knowledge economy Globalisation Technological change Increasing complexity of products and services
- 4. Labour market polarisation, 1995-2015 80% replaced by high-skilled jobs (‘complex cognitive tasks not frequently repeated’, 20% by low-skilled jobs (jobs requiring hand-eye coordination or human-centred tasks) -15 -10 -5 0 5 10 15 France United Kingdom Italy OECD Average Germany United States Canada Japan High skill Middle skill Low skill Source: Employment Outlook 2017
- 5. 5Source: OECD Survey of Adult Skills Survey, 2016a (215,000 people in 33 countries)
- 6. 0 20 40 60 80 100 Ireland Netherlands Spain UK Czech Republic Finland Belgium Slovenia Italy Slovak Republic France Norway Canada United States OECD (27) Austria Sweden Poland Switzerland Australia Germany Hungary New Zealand Turkey Mexico Greece Japan % of firms reporting difficulties filling jobs due to lack of available talent Source: Manpower talent Shortage Survey, 2015 Across OECD countries, 35% of firms report difficulties in hiring. United States: 32%. Japan: 83% Germany: 46% UK: 14% ……..even in countries with high unemployment rate (e.g. Greece, Italy)
- 7. Skills differentiate local economies TL3 Regions in Italy, 2009. Source: OECD LEED Programme
- 8. Priorities for investment at the local level
- 9. Developing skills Managing flows Utilisation of skills Three ways of influencing skills (OECD Skills Strategy, 2012) See http://skills.oecd.org
- 10. Developing skills Managing flows Utilisation of skills Three ways of influencing skills (OECD Skills Strategy, 2012)
- 11. Early years School College and University Work Older workers At what stage in the life-cycle? ..and the importance of transitions
- 12. What types of skill? • Replacement demand for technicians only just below that of professionals, 2015-2025 Expected change 2015- 2025 in EU28+, CEDEFOP, Future Skills Needs in Europe 2016
- 14. Should skills be geared to local labour markets? • Focusing on local clusters e.g. New Jersey Talent Networks • The importance of engaging employers - • employer-led training e.g. Irish skills nets • Promoting transferability, building upon talent and supporting diversification Transportation, distribution, logistics: one of 16 US DoE Career Clusters
- 15. OR ? Skills for diversity: growth and resilience Source: Frank Neffke, Harvard Growth Lab
- 17. Developing skills Managing flows Utilisation of skills Three ways of influencing skills (OECD Skills Strategy, 2012)
- 18. Managing flows • What about mobility? Should local areas be attracting and retaining talent? – Integrating immigrants - not just about unemployment, but underemployment • Are skills wasted because they do not reach the labour market? – A key element of inclusive growth strategies – Thinking longer term – tackling intergenerational exclusion
- 19. Adaptation Recognition Building networks Helping newcomers into the labour market See http://citiesofmigration.ca/ Source: OECD LEED Programme
- 20. Managing flows • What about mobility? Should local areas be attracting and retaining talent? – Integrating immigrants - not just about unemployment, but underemployment • Are skills wasted because they do not reach the labour market? – A key element of inclusive growth strategies – Thinking longer term – tackling intergenerational exclusion
- 21. Tackling intergenerational exclusion • Neighbourhood effects? (Chetty and Hendren, 2015- 2016) OECD Adult Skills Survey, 2016
- 22. Develop skills Supply skills (manage flows) Use skills Three ways of influencing skills (OECD Skills Strategy, 2012)
- 23. Skills Outlook 2015 (using 2012 Adult Skills Survey)
- 24. SKILLS GAPS AND SHORTAGES HIGH SKILL EQUILIBRIUM LOW SKILL EQUILIBRIUM SKILLS SURPLUS Skills demand Variations in supply and demand for skills Skills supply Source: OECD LEED Programme
- 25. Comparing OECD cities (>1 million) Source: Job Creation and Local Economic Development, 2016
- 26. Skills demand and supply balance UK Territorial Level 3 regions, 2013 Source: OECD 2016b
- 27. Compared with unemployment UK Territorial Level 3 regions, 2011 Source: OECD LEED Programme
- 28. Influencing both supply and demand 28Source: OECD LEED Programme
- 29. Product market strategies and the design of services 29 • OECD innovation strategy: Toner (2011) the value of incremental innovation - creating a learning environment (discretion, problem solving, learning- by-doing, understanding how your task relates to others, absorption capacity) • Boosting product market strategies (Ashton and Sung, 2011) and re-defining services (Buchanan, 2010) • The influence of institutional logics (Ashton and Sung forthcoming)
- 31. The future – will the way that skills are managed change? • ‘My father had one job in his life, I’ve had six in mine, my kids will have six at the same time’ – The Guardian, 2015 • Post-managerial labour markets? • Loss of jobs through automation – only 10%? (OECD). Role of universal basic income guarantees?Source: Frank Neffke …a substantial alteration of the framework of opportunities and threats faced by workers of different kinds (Lloyd, 2016)
- 32. The revised OECD Job Strategy (May 2018) • First launched 1994, reassessed 2006 • 3 overarching objectives: – 1) Increased labour market participation, job creation and job quality – 2) A fairer distribution of opportunities and outcomes – 3) More resilient and adaptable labour markets
- 34. Many interested agencies… Unions Universities and colleges Employment Services Economic development actors Employers & employers associations Local councils
- 35. Why join up policies? Strategy: Tackling complex problems at the level of communities Delivery: Tackling complex problems at the level of individuals
- 36. Comparing local governance frameworks
- 37. OECD reviews on Local Job Creation Participating countries: Australia, Canada, Ireland, Northern Ireland, Korea,, United States, Czech Republic, the Philippines, Poland, England, Israel, Sweden, Flanders, France, Slovenia, Turkey