P4 Guillermo Montt - Transitions: they are here to stay
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TRANSITIONS THEY ARE HERE TO STAY 10th Annual Meeting of the OECD LEED Forum on Partnerships and Local Development, Stockholm April, 2014 Guillermo MONTT Directorate for Employment, Labour and Social Affairs [email protected]
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Material of the 10th Annual meeting of the OECD LEED Forum on Partnerships and Local Development |23-25 April 2014 | Stockholm, Sweden More info http://www.oecd.org/cfe/leed/10th-fplg-meeting.htm
Transcript of P4 Guillermo Montt - Transitions: they are here to stay
TRANSITIONSTHEY ARE HERE TO STAY10th Annual Meeting of the OECD LEED Forum on Partnerships and Local Development, Stockholm
April, 2014
Guillermo MONTTDirectorate for Employment, Labour and Social [email protected]
Transitions: 1950s
• The internal labour market model of the 1950s:
Hired at the Firm
Retired from the Firm with pension
Supervisor
Manager
School!
!
Transitions: Today
School?
• Today:– 1950s model of a career-job is less and less frequent – Different business model
• Outsourcing• Temporary work arrangements• Technological and structural change, etc.
– Different worker expectations• Transition between jobs and employers, but also
transition between careers • More transitions means more gaps where an individual
can fall and cross to the vulnerable side of the divide• These transitions are both voluntary and involuntary
Transitions: Unwanted from the step 1
• No security that your first or subsequent jobs will be in the field where you studied or at the level you feel adequate: – Large percentage of field of study
mismatch– High likelihood to be overqualified
Transitions: Unwanted from step 1Cz
ech
Repu
blic
Japa
n
Belg
ium
(Fla
nder
s)
Aust
ria
Aust
ralia
Slov
ak R
epub
lic
Swed
en
Pola
nd
Net
herla
nds
Denm
ark
Aver
age
Cana
da
Irela
nd
Germ
any
Kore
a
Spai
n
Cypr
us*
Uni
ted
Stat
es
Finl
and
Esto
nia
Uni
ted
King
dom
(EN
G/N
IR)
Italy
Nor
way
0
10
20
30
40
50
60
Over-qualificationField mismatch
Source: OECD, PIAAC 2012 Database
The local job market is not ready for people like us…(or, sadly, doesn’t really need us)Education systems (schools, higher education, adult training) need to provide solid foundation skills to enable workers to work in different fields to facilitate transferability of workers in case of needActors in the education system at the local level need to be more responsive to the local labour market demandEmployers need to connect better to training institutions to ensure a better link between their employment needs and what they can find
Transitions then continue
• Once a worker, transitions between jobs, employers and careers continue:– Technological change, outsourcing– Change in personal interests
• Workers need to maintain (or increase) their foundation skills base to avoid skills depreciation and obsolescence and vulnerability upon transitions.
Or given the opportunity to maintain or increase their skill
levels
15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 63 65225
250
275
300
325Literacy score unadjusted Numeracy score unadjustedLiteracy score adjusted Numeracy score adjusted
PIAAC Score
Age
Skill depreciation (PIAAC)
Older workers tend to have lower levels of numeracy and literacy skills (foundation skills). They are thus less able to successfully navigate transitionsTwo possible reasons: 1) Skill depreciation2) Today’s education systems are
better than yesterday’s(First explanation is more likely in those countries with comparable data with ALL and IALS studies)
Skill depreciation is steeper among individuals out of the labour force and among the unemployed: if skills are not used they tend to disappear
Transitions then continue
• Maintain foundation skills levels– Encourage skills use both at work and outside work
• Encourage skill upgrading and updating• Question: if employers are less likely to invest in worker skill
development… who will?• Develop well-designed ALMP and activation strategies
• 1/3 of the unemployed are long-term unemployed who are at risk of becoming inactive and at serious risk of skill depreciation
• Link ALMPs to displaced workers• Around 5% of workers experience are laid off due to economic,
technological or structural reason in any given year• Experience of prolonged unemployment may bring skill
depreciation• Trend is for high-skill jobs to be created at a faster
pace than low-skill jobs
The take-away point
Promote and ensure a high skilled workforce• For individuals: assume transitions will be part of the
career• For training institutions: promote high skills level
and abundant foundation skills (PISA)• For employers: seek out partnerships with training
institutions to facilitate linkages• For policy makers: support displaced workers,
anticipate demand, encourage skills use outside the work environment
• For local actors: seek partnerships to align worker skill demand to training institutions
For further information
• OECD Employment Outlook [LINK]
• OECD Skills Outlook [LINK]
• OECD Survey of Adult Skills [LINK]
• OECD Reviews of Active Labour Market Policies [LINK]
• OECD/LEED Local Job Creation [LINK]
• Follow us on Twitter: @OECD_Social
TRANSITIONSTHEY ARE HERE TO STAY10th Annual Meeting of the OECD LEED Forum on Partnerships and Local Development, Stockholm
April, 2014
Guillermo MONTTDirectorate for Employment, Labour and Social [email protected]
