1. Employment, Competitiveness and Skills
Marion Jansen
Co-ordinator, Trade and Employment Programme
International Labour Office
Joint Conference: Parliamentary Assembly of the Mediterranean (PAM) and the United Nations Trade and Productive Capacity Cluster
Geneva, 5 May 2011

2. Successful Globalization Strategies
Successful globalizers like South Korea, Taiwan and also Costa Rica have at certain stages of their development successfully coordinated
investment policy
trade policy
technology policies and
training and education policies.
… as part of a deliberate strategy to
foster inclusive growth.

3. ILO trade related technical assistance
builds bridges between the world of work, of production and technology, with the world of education and training
through policy advice on coordination of relevant policies (« policy coherence »)
in line with the G20 Training Strategy prepared by the ILO
including through its involvement in the UN-CEB Cluster

4. Combining ILO areas of expertise to advise on “high road” to competitiveness
ILO Skills Department
Guidance on forecasting skills demand and on integrating skills development into national and sector development strategies.
ILO Trade and Employment Programme
Support to policymakers to understand the employment impact of trade. Guidance on using trade policy to promote employment.
ILO Enterprise Department
Guidance on policies to support an enabling business environment, and improved working conditions.

5. Example: Enhancing Sustainable Tourism in Lao
Joint implementation with other UN-CEB Cluster Agencies and financed by Swiss Government.
ILO’s contributions:
Enhance management practices
Strengthen workplace cooperation
Enhance skills and productivity of workers

6. Example: Promoting Economic Diversification in Ukraine
Upon request by Ukraine Government as part of crisis response
Application of ILO STED approach: Skills for Trade and Economic Diversification
ILO provided advice on:
Export promotion strategies to increase geographical diversification of exports.
Economic policies to enhance business environment in priority sectors.
Enhance inter-ministerial and public-private sector collaboration to improve skill-matching

7. STED: a stepwise approach
Identify priority sectors for trade and economic diversification and evaluate potential for employment creation
Identify key constraints for sustainable growth in priority sectors
Matching Skill Demand and Supply:
Identify priority areas for skills development to
foster sustainable growth in priority sectors
Provide advice on:
(i) trade and other economic policies with view on reaching “high road” to competitiveness;
(ii) skills policies to enhance productivity and diversification
Provide advice on institutional set-ups to enhance:
(i) public-private deliberation and collaboration;
(ii) inter-ministerial deliberation and collaboration

8. STED relevance for PAM countries
STED to be implemented in Bangladesh and Macedonia in 2011.
STED scoping mission to Kyrgyzstan upcoming
Is there demand in PAM countries for:
Enhanced export diversification (more products, more markets, higher up the value chain)?
Improved matching between skill demand and skill supply ?

9. Diversification an issue
Diversification an issue? Herfindahl index of export product concentration

10. Value added an issue? Technology Content of PAM countries’ manufacturing exports

11. Skill mismatch an issue?
Evidence of skill mismatch in Morocco?
High youth unemployment (30% among urban males age 15-24)
Particularly high unemployment among highly skilled (48% among young urban males with tertiary education)
30% of companies consider skills as a major constraint (OECD average 11%, world average 21%)
Evidence of skill mismatch in Syria?
Youth unemployment higher for highly skilled
18% for young men with tertiary education
22 % for those with vocational secondary
16 % average for young men
36% of companies consider skills as a major constraint (OECD average 11%, world average 21%)

12. Employment, Competitiveness and Skills: Action Plan for PAM countries
Take the « high road » to competitiveness and design trade, investment, technology and skills/education policies strategically
Ensure co-ordination across policy domains
Set incentives right
Consider using (sub-)sectoral approaches
Ensure optimal match between skill supply and skill demand
Develop good policies and mechanisms to match supply to demand for skills;
Put in place institutions and services to help workers and enterprises adjust to change;
Maintain institutions and policies to anticipate and meet future labour market skills needs.
Through inter-ministerial and public-private sector collaboration