session 3 national employment strategies and policies the international context
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Session 3. National Employment Strategies and Policies: The International Context. Makiko Matsumoto Employment Strategy Department, ILO 25 May 2004, Turin. Outline. Motivation ILO instruments Key components of National Employment Policy (NEP). Why Employment Policy?.

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session 3 national employment strategies and policies the international context

Session 3. National Employment Strategies and Policies:The International Context

Makiko Matsumoto

Employment Strategy Department, ILO

25 May 2004, Turin

outline
Outline
  • Motivation
  • ILO instruments
  • Key components of National Employment Policy (NEP)
why employment policy
Why Employment Policy?
  • Answer determines the functional role to be given to a national employment policy
  • General economic policies may not be sufficient in addressing employment concerns
  • Over time, provide coherence and balance to various measures and programmes/projects related to labour market
  • Motivations and justifications: economic, social and political
  • Monitoring labour market situations for identifying areas of policy interventions and adjustments
key ilo instruments
Key ILO Instruments
  • Employment Policy Convention (C122)
  • ILO Global Employment Agenda (GEA)
convention 122 1964
Convention 122 (1964)
  • Objective:

An employment policy to stimulate economic growth and development, based on full, productive and freely chosen employment

    • Work for all
    • Productive work
    • Freedom of choice of employment
convention 122 cont
Convention 122 (cont.)
  • Adaptation of national employment policy to:
    • The level of economic development
    • Coordination of objectives: employment and other socio-economic
  • Participation of employers, workers and the persons affected during policy formulation and implementation
ilo global employment agenda
ILO Global Employment Agenda
  • Approved by GB in March 2003
  • Objectives:
    • Quantity and quality of employment
    • Better functioning labour markets
  • Approach: demand and supply side
  • Identification of policy-specific areas of intervention : 10 core elements
ilo gea the structure 1
ILO GEA : The Structure 1
  • Enhancing demand for employment through stimulation of the economy:
    • Trade and investment
    • Technological change
    • Sustainable development
    • Macroeconomic policy
ilo gea the structure 2
ILO GEA : The Structure 2
  • Addressing the supply side of employment:
    • Entrepreneurship
    • Knowledge and skills development
    • Active labour market policies
    • Social protection
    • Occupational safety and health
    • Productive employment for poverty reduction
ilo gea the structure 3
ILO GEA : The Structure 3
  • Cross-cutting issues:
    • Social dialogue
    • Non-discrimination – ethnicity, race, gender, age
ilo gea implementation
ILO GEA : Implementation
  • 3 levels:
    • National – national employment plans
    • Regional – meeting regional strength, comparative advantages and needs
    • Global – international policy coordination and alliance building
ilo instruments implications
ILO Instruments - Implications
  • Priority identification: adaptation of general guidelines on employment policies to specific national socio-economic and policy environment
  • Policy mix needs to address both demand and supply side of the labour market – this will require inter-ministerial cooperation
  • Stake-holder dialogue and participation is the key to policy process in formulation and implementation
components of nep the minimum set
Components of NEP: The Minimum Set

National priorities

LMI and analysis

Policy objectives

0.5, 1, 2 years

Component 1

Component 2

Component 3

Financing

Implementation

Financing

Implementation

Financing

Implementation

Review

Dialogue

components of nep the minimum set14
Objectives and priorities : long and short-term, clarity and feasibility

Simple situational analysis : labour market information

Policy scopes and proposed policy reform components: coherence, action-oriented clarity, relevance and feasibility

Review: assessment method and frequency

Financing

Continuous dialogue with social partners and key stakeholders from the initial formulation stage to implementation

Components of NEP: The Minimum Set
objectives of ep examples
Objectives of EP: Examples
  • European Employment Strategy
    • Launched in Luxembourg Jobs Summit in Nov 1997:
      • High level of employment (equally important as growth and stability)
      • To achieve decisive progress in employment promotion within 5 years
    • New goal set in Lisbon Economic Council Mar 2000:
      • EU to become the most competitive and dynamic knowledge-based economy in the world, capable of sustainable economic growth with more and better jobs and greater social cohesion by 2010
      • Targets: Employment rate should reach 70%, at least 60% for women and 50% for older workers by 2010
analysis monitoring example
Analysis & monitoring: Example
  • EU Employment Strategy guideline for monitoring indicators, for instance:
    • Unemployment and employment rates, including long-term unemployment
    • Growth in labour productivity
    • Enterprise birth
    • Employment growth,
    • Etc.
    • Reference: http://europa.eu.int/comm/employment_social/employment_strategy/indic/list_from_compendium_jer2002.pdf
policy scopes of nep examples and lessons
Policy Scopes of NEP:Examples and lessons
  • In Europe, including the EU accession countries and others wishing to join the EU, main issues addressed by the NEPs tended to be:
    • Focus on the supply side measures, with more focus on education and training of youth. Adult training underdeveloped in a number of countries
    • Labour market flexibility and employment secuirty dilemma
    • Trend towards activation of labour market policy (but large differences exist across countries)
policy scopes of nep examples and lessons cont
Policy Scopes of NEP:Examples and lessons (cont.)
  • Special programmes for disadvantaged groups (youth, elderly, women, disabled persons, ethnic minorities)
  • Employment and social policy not always well coordinated
  • Promotion of entrepreneurship needs improvement
  • Employment promotion and wage bargaining working well in some countries
  • Stimulation of job creation through economic incentives (special economic zones)
review example
Review: Example
  • EU Employment Strategy
    • Country review and assessment of progress of National Action Plans on employment, monitoring indicators
    • Peer reviews – identification and exchange of good practices and potential for transfer in other countries
    • Frequency of review: in line with policy life cycle, financing and capacity availability.
financing example
Financing: Example
  • In many European NEPs, for each proposed policy measures, financing means and implementation units are identified.
  • Examples of financing means:
    • State budget
    • Savings arising from proposed policy changes
    • Collaboration of budget with other ministries co-responsible for implementation
nep some lessons and challenges
NEP:Some lessons and challenges
  • Lack of coordination between economic and employment policy
  • Weak labour demand due to low economic growth, low employment-intensity of growth, obstacles to good enterprise development (particularly SMEs), low pace of restructuring of SOEs
  • Education and training policies not fully in compliance with labour market needs
  • Labour market institutions and policies severely underdeveloped
  • Weak social protection systems, covering only parts of population
  • Social dialogue often underdeveloped and contributing little to good employment policy formulation and implementation
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