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 Did you hearDEVELOPMENT, from Declan by any chance ? Did he send you the cost estimate for the LESSONS FROM equipment he needs THE to use forUNITED the streaming? Thanks in advance 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
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