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