How can labour market policy contribute more to quality local job creation Sylvain Giguère, Head of the LEED Division, OECD

An OECD Committee created 32 years ago out of the Employment, Labour and Social Affairs Committee to focus on: – Job creation – Cross-cutting issues ‒ connecting employment, skills and economic development – Policy implementation Expansion from 13 to 36 countries, including non OECD countries (e.g. South Africa) Chair: Canada 2 What is LEED

Mobility vs. economic resilience Activation vs. dependence of employers on quick fixes (generating high turnover, low productivity and poor quality jobs) Short-term results vs. sustainable outcomes Partial answers of a silo approach vs. integrated solutions to multifaceted issues (youth, long-term unemployed, informal economy, harnessing new sources of growth) Quality job creation: labour market policy trade-offs

SKILLS GAPS AND SHORTAGES HIGH SKILL EQUILIBRIUM LOW SKILL EQUILIBRIUM SKILLS SURPLUS Skills demand Understanding the impact of variations in the skills supply and demand Skills supply

Skills demand The example of North West UK, 20101

Skills demand and supply balance UK, 2011

Compared with unemployment

Trends over

Mexico 2010

Korea 2010

Working on both the supply and demand 11

Note: composite indicator based on 11 countries Source: OECD (2010), Breaking Out of Policy Silos: Doing More with Less Drivers of policy integration

Flexibility in managing employment programmes at the local level Note: TL3 or below Source: OECD (2009), Flexible Policy for More and Better Jobs

Ways to increase flexibility with accountability Negotiating local targets while ensuring they add up to the achievement of national goals Awarding flexibility incrementally: waivers, awarding to larger cities first Boosting horizontal accountability: partnerships hold each other accountable Using data: stimulus for cooperation and continuous evaluation of success

Make national employment and training policy frameworks more flexible to enable them to be adapted to local labour market conditions. Support partnership approaches within local economies (and in some cases around specific sectors or value chains) leading to better integrated policies and more effective and efficient strategies. Give priority to creating an adaptable labour force that is able to innovate, progress, and transfer between sectors, hence building local resilience. Support labour market transitions throughout the life-cycle by building comprehensive local career information and well- articulated training to employment pathways. Draft principles for guiding action at both national and local levels (1)

Stimulate productivity and innovation by working with employers and trade unions to better utilise the skills of the existing workforce. Develop placed-based initiatives to support inclusive growth by reducing the barriers that can exclude people from the labour force over generations, including youth, women, older workers, people with disabilities and immigrants. Support evidence-based local policies by further disaggregating data on jobs and skills to the level of local labour markets. Draft principles for guiding actions at both national and local levels (2)

Thank you