OECD Randall Eberts Plenary Session 1

9th Annual Meeting
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
PLENARY SESSION I: A NEW LOCAL AGENDA FOR JOBS AND GROWTH
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”
INTEGRATING
EMPLOYMENT AND
Hi Bernie,
Good morning! 
ECONOMIC
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STATES
Elisa AND AUSTRALIA
March 26th, 2013
Randall Eberts, President, W.E. Upjohn Institute for
Employment Research, United States
Skills Shortage and Mismatch
• 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
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
Integrating supply and demand
• 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
Prerequisites for Effective Collaboration
•
•
•
•
•
•
•
Vision
Strategic planning
Leadership
Metrics
Resource Alignment
Trust
Collaborative infrastructure
Models of Integration: US and Australia
• 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: Differences
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 OneStop 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
U.S. WIBs: Partnership Catalyst
Partnership Arrangements
Vouchers
or training
accounts
Federal
Administrative
Programs
fee to WIB
$$
Administrative
Businesses
accountability
$
State
Non - financial
Agreements
$$
$$
County
WIB
Government
Local organizations
Master
Inter - local
Contract
Sub -
Agreement
contracts
Administrative
Agent
Memoranda of
County
Understanding
Government
Leadership role with
non - contractual
service organizations
Payoff to Partnerships
States with more local WIBs tend to have higher placement rates
WIA Adult Program, 2006Q3
% Participants who found employment
88
CA
86
84
MI
82
TX
80
78
76
74
72
70
0
5
10
15
20
25
30
Number of WIBs within a state
35
40
45
50
Conclusion
• 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