IMPLEMENTING CHANGE:
A NEW LOCAL AGENDA FOR
JOBS AND GROWTH In co-operation with the EU Presidency, Irish Government and Pobal
26-27 March 2013, Dublin-Kilkenny, Ireland
9th Annual Meeting
PLENARY SESSION I: A NEW LOCAL AGENDA FOR JOBS AND GROWTH
Randall Eberts President, W.E. Upjohn Institute for Employment Research, United States
INTEGRATING EMPLOYMENT AND
ECONOMIC DEVELOPMENT,
LESSONS FROM THE UNITED
STATES AND AUSTRALIA
March 26th, 2013 Randall Eberts, President, W.E. Upjohn Institute for Employment Research, United States
Forum on Partnerships and Local
Governance, Dublin & Kilkenny,
March 2013
“Implementing Change: A new local
agenda for jobs and growth”
• Employers complain they can’t find enough qualified workers
• Without qualified workers, employers can’t fill job openings and employers can’t create jobs
• Increasing skills and improving the match between the supply of and demand for skills is a critical challenge
Skills Shortage and Mismatch
Real Consequences of Skills Gap
Larger the skills gap, the lower the job creation
Each dot is a US metro area; data provided by Rothwell, 2012
Real Consequences of Skills Gap
Larger the skills gap, the higher the unemployment rate
Each dot is a US metro area; data provided by Rothwell, 2012
• OECD/LEED has studied models that integrate workforce development and economic development to increase skills, improve skills utilization, and reduce the skills gap
• Basic components of integration:
– Flexibility
– Partnerships
– Collaboration
Integrating supply and demand
• Vision
• Strategic planning
• Leadership
• Metrics
• Resource Alignment
• Trust
• Collaborative infrastructure
Prerequisites for Effective Collaboration
• Similarities
– Contract out JSA to private providers
– Local providers
– Performance outcomes
– Initial screening and identification of needs
• JSCI for Australia; WPRS for US
– Reemployment Assessment Plans
– Strategic plans
– Local and state economic development efforts
Models of Integration: US and Australia
Australia United States
National agency contracts JSA Local WIBs contract JSA and training
Payment based mostly on performance outcome
Payment based mostly on formula, with financial incentives for making/missing targets
National VocEd qualifications Local and/or industry qualifications
Demand-driven training: industry, unions, professional associations at national level define outcomes required from training
Demand-driven training: employers and local community colleges at local level develop training curriculum
More national skills standards, national training products
Few national skills standards; mostly state and local standards
16 mandated programs co-located at One-Stop Career Centers
Local Employment Coordinator: identifies needs and match with employers, education and training facilities
Local WIBs offer opportunity to be catalyst for integrating economic development and workforce development at local level
Models: Differences
U.S. WIBs: Partnership Catalyst
WIB Local organizations
Leadership role with
non - contractual
service organizations
Federal
Programs
Administrative
fee to WIB
$$ $$
$
Administrative
accountability
State
County
Government
Master
Contract
County
Government
Inter - local
Agreement
Sub -
contracts
Businesses
Non - financial
Agreements
Memoranda of
Understanding
Partnership Arrangements
$$
Vouchers
or training
accounts
Administrative
Agent
Payoff to Partnerships
70
72
74
76
78
80
82
84
86
88
0 5 10 15 20 25 30 35 40 45 50
% P
ar
tic
ipa
nts
wh
o f
ou
nd
em
plo
ym
en
t
Number of WIBs within a state
WIA Adult Program, 2006Q3
MI TX
CA
States with more local WIBs tend to have higher placement rates
• Narrowing the gap between demand for and supply of skills is a critical challenge for job creation
• Local flexibility and autonomy can foster partnerships that connect workforce and economic development
• The two models provide examples of local areas that use their flexibility to form effective partnerships to help create jobs
Conclusion