Transcript Slide 1
Labour force flexibility and skills mobility –
right person, right skills, right place, right time
Anne Green IER, University of Warwick
Scope of presentation
• • • • • • •
Context
What is a
healthy labour market
?
-
Regional and sub-regional variations
quantity
and
quality
of employment
demand
and
supply
in: Skill shortages and gaps Skill utilisation -
Mobility
migration commuting
Implications
Context
• • • • •
Shift in concerns from ‘quantity’ to ‘quality’
Greater emphasis on
demand
Concern with
stocks
and
flows Labour market change
: Decrease in unemployment Concerns about inactivity – and concentration in particular sub-groups and areas Rise in employment → ‘tightening’ labour markets Matching supply and demand – issues of mobility and accessibility
Skills
as a key driver of regional competitiveness (within context of overall regional development)
‘Healthy labour market’ concept
•
Goal
: a labour market which produces desirable results , both socially and economically , and which is sustainable over time •
3 dimensions
: strong
DEMAND
/quality side – in terms of quantity and of jobs that the labour market generate balance strong
SUPPLY
side – relates to the numbers and characteristics of people able to take those jobs •
efficient
and
equitable FUNCTIONING
to bring together demand and supply sides of the labour market appropriate
supporting conditions
training, workforce development, benefits and welfare, housing and transport infrastructure – education,
Mobility, flexibility and balance
:
scope for tension
• • •
Mobility and flexibility
Healthy labour market emphasises
movement up
the skills and value chain Implies existence of
progression routes
Need for flexibility to adjust to change – but how much?
Fine dividing line between ‘healthy’ and ‘unhealthy’ mobility and flexibility • •
Balance
Job opportunities at all levels Success in one part of the labour market not achieved at the expense of another part – geographical dimension
Imbalance
can be ‘healthy’ as well as ‘unhealthy’: it may be a driver of desirable change
% of employment in K1-K4 categories
(source: LFS, 2004 [via emda]) 60 50 40 30 20 10 0 NE Y&H EM WM SW NW E SE UK L K1 K2 K3 K4
Employment rates, 25-49 years
Highly qualified No qualifications
Highly qualified % 25-49 in w ork 90 to 99.999 (54) 80 to 89.999 (322) 70 to 79.999 (13) No qualifications % 25-49 in w ork 80 to 89.999
(4) 70 to 79.999 (142) 60 to 69.999 (150) 50 to 59.999 (74) 40 to 49.999 (13) 30 to 39.999
(6)
Skill deficiencies Skills utilisation
(NESS, 2003)
• • • • Issues of
interpretation Typology of regions on skills deficiencies
YH
and
WM
: > average skills deficiencies & > average non-employment
EM
,
E
,
SE
and
SW
: > average vacancies & < average non-employment
L
,
NE
and
NW
: < average vacancies & > average non-employment • • • under-education over-education ‘ signalling ’ function of qualifications do industries / employers have capacity to absorb and utilise high level skills?
are high level skills used effectively?
‘
move on up
’ – to create openings for others
Role of mobility
• • • • • •
right person, right skills, right place, right time
implies occupational, industrial and geographical flexibility and mobility
‘jobs to people’
and/or
‘people to jobs’?
MIGRATION
and
COMMUTING - brain drain
(training for export?)
- brain strain
- skills circulation
competing for skills – context of tighter labour market, ageing population, lower fertility, international migration What is the
capacity for mobility
in the labour market?
What are the
constraints
on mobility?
Understanding migration in the UK
• • • • • The
Greater South East
and the
driver
is the motor of the UK economy of the UK migration system An “
escalator region
”: it offers the largest quantity and greatest range of employment opportunities (particularly higher level occupations) in the UK
London
attracts
young people
at the start of their careers from the rest of the UK and loses population to all other regions except in the 20-29 age group It attracts full-time workers It attracts
international
world (‘global reach’) migrants – from all parts of the
Migration of 20-29 year olds, 2000-2001
(source: 2001 Census)
35 30 25 in-migration rate out-migration rate net migration rate international migrants 20 15 10 -5 -10 5 0
NE NW YH EM WM E SE L SW Sc Wa NI
International migration: towards a ‘managed migration’ policy
• • • • Role of migration in addressing labour market deficiencies migrants over represented at both ends of the skills hierarchy: - highly skilled - less skilled refugees and asylum seekers skills utilisation downgrading – evidence for occupational labour market integration • • • • • • • Factors associated with employment rates of migrants : gender & family status ethnicity qualifications area of residence year of arrival /nationality language discrimination
Competing for people and skills: the example of Fresh Talent (Scotland)
• • •
Countering population loss through
: retaining home-grown talent encouraging Scots who have moved away to return attracting new people to Scotland • • • • •
Policies
: closer working with Work Permits UK visa extensions for students staying after graduation support to universities in recruitment improving visitor impressions establishment of relocation advice service
Fresh Talent (Scotland): questions and issues
• • Welcoming all comers?
• Do migrants go where you want them to go?: - the success and attractiveness of Edinburgh - is it desirable/possible to create other magnets?
• Importance of non-economic (environment, leisure, schools, etc) as well as economic factors Limits to the role of interventions at Scotland level: - UK level policy (e.g. Home Office on immigration) - Scotland tied into UK migration system
Commuting
• • trend to longer flows, but most commutes are short distance local areas play different roles - characterised by: - high in-commuting - high out-commuting ‘transit camps’: high in- and out-commuting • • complexity of commuting flows in some areas sub-group differences
Constrained mobility
Spatial barriers to employment
• •
physical
: accessibility especially in 24/7 economy
social
– information flows, social divisions, perceptions ‘bounded rationality’ – unwillingness to venture into
terra incognita
(mental maps) labour market opportunities my be restricted because jobs in accessible yet unfamiliar locations are not considered •
Permeability of spatial labour markets
job growth does not necessarily ‘trickle down’ to local residents – even if local residents have the required skills higher skilled workers can bump down’ in the labour market and compete for lower-skilled jobs:
processes of mobility and job competition leave behind the weakest
Example of workforce mobility in construction
(from IFF with University of Warwick)
Workers in London – where from originally 30% from outside UK 4% 5% 5% 1% 3% 2% 1% 3% 7% 14% 26% Base: 993 workers on sites in London 30% from outside the UK
Workers in London: where permanently resident 2% 4% 4% 2% 2% 2% 2% 10% 2% 14% 57% Base: 993 workers on sites in London
Workers in NE – where from originally 0% from outside UK 1% 1 % 1% 91 % 2% 1% 1% 1% 1% 1% Base: 378 workers on sites in NE
% of workers on sites in region with permanent residence in same region N. Ireland Scotland North East Wales West Mids Y & H South West North West East Mids South East East London 0% 20% 40% 57% 60% 75% 73% 68% 90% 89% 88% 81% 87% 100% 98% 95% 80% 100%
• • • •
Construction workers living in temporary accommodation
8% of construction workers live in temporary accommodation – but ranges from: 19% in London – of whom 67% have permanent address elsewhere in England, 10% in Scotland, 7% in Wales, 16% outside UK (4% Irish Republic) 9%-10% N Ireland in NW , SW and < 4% in NE and YH
Reasons given
: • No / little work in home area ( 27% nationwide , more often cited by workers on sites in London ) • Sent by company ( 27% nationwide ) • Better pay ( 21% nationwide, more often cited by workers on sites in London ) • Better job opportunities ( 11% nationwide, more often cited by workers in London )
Implications
Creating a ‘healthy labour market’
vision of the desired result processes that might bring about that result how processes may be influenced by intervention – scope and limitations of regional-level intervention importance of
advancement
in work capacity for mobility •
Possible policy interventions
public procurement cluster policy role of public sector
Inter- and intra-regional disparities
use of ratio measures and floor targets - for geographical / sub-group differences and setting minimum standards