Active Labour Market policies for vulnerable groups : an overview

1
Active Labour Market policies for vulnerable
groups an overview

• Professor Dan Finn, University of Portsmouth
• Associate Research Director, Centre for Economic
  and Social Inclusion

2
Context

• European Employment Strategy Employability,
  Social Inclusion and Economic Activity Rates
• Unemployment, Worklessness and Economic
  Inactivity
• Impacts on poverty, ill health, youth
  disaffection, crime and family breakdown
• Impacts on Minority Ethnic Communities, new
  migrants and refugees
• Spatial variations and concentrations in cities
  where implementation tends to be weakest

3
Active Labour Market Programmes What Works

• From passive to active strategies -
  commitments to provide ALMPs in the European
  Employment Strategy
• Four Basic ALMPs
• Job Search Requirements and Assistance
• Employment Subsidies
• Training and Education
• Work Experience Programmes
• Evaluation Evidence Net Impact Studies
  (compliance and treatment effects) and
  Implementation/Case Studies
• Most programmes work best for those who are
  relatively job ready. Most are least effective
  for the hardest to help (basic skills,
  ex-offenders substance abuse mental health
  problems).

4
Implementation

• National Programmes Local Flexibilities
  (national policies are only as good as their
  local delivery systems)
• Joining Up barrier reduction and other support
  services (esp. basic skills, substance abuse
  reduction, child care, transport and easing
  transitions)
• Partnerships, with Economic Development,
  Employers, and Workforce Development Systems

5
The Demand Side Understanding the Local Economy

• Labour Market Intelligence the Jobs Available
  and Characteristics of Workless People
• The interaction with the hidden or illegal
  economy
• The balance between job search assistance
  (turnover and new jobs) and employment creation
  (social economy self employment)
• Even where there are jobs, other barriers on the
  demand side
• Direct and Indirect Discrimination (access to
  vacancies, informal networks and job
  specifications)
• Location and transport ( links with other
  services, such as child care)

6
The Supply Side Individual Employment Barriers

• Job search reduction in frequency, losing touch,
  perceptions of suitability and availability
  (mistrust of official agencies)
• Employability basic skills language, job
  readiness and confidence, work experience,
  health, and accommodation
• Interaction between state benefits and work
  incentives (the role of compulsion)
• Financial and transition risks (especially debt)
• Particular problems facing new immigrants (e.g.
  restrictions on employment, transferability of
  skills)

7
No Simple Answers But Evidence Suggests

• Targeted Approaches add value to mainstream
  programmes, esp. amongst the hardest to reach
  (outreach important)
• Local coordination and cross referral to health
  and child/elder care services
• Client centred assessment profiling tools
  and action plans, esp. for those with multiple
  barriers
• Realistic work experience building bridges to
  local employers, use of subsidies, local labour
  contract clauses
• Job search assistance matching and after care
• Making Work Pay and being seen to pay (support
  with transition costs)

8
Measuring Impacts Indicators

• Definition Measurement of an objective to
  achieve, a resource mobilised, an output
  accomplished, an effect obtained or a context
  variable (economic, social or environmental)
  (source EC, Evaluating socio-economic
  programmes, vol 6, 1999)
• Quantitative and Qualitative Indicators used to
  measure facts or opinions (e.g., of trainees
  who get a job or who claim to be satisfied with
  their training)
• Must provide simple information that both the
  supplier and user can easily communicate and
  understand. Assists managers of public
  interventions to communicate, monitor and assess
  success.
• Indicator must be sensitive, in that the item
  measured must vary significantly in relationship
  to the intervention being assessed.
• Usually measured by means of surveys or
  statistical data (importance of monitoring
  systems)

9
Social Inclusion Indicators

• Social exclusion a multi dimensional and
  relative concept. Many definitions.
• In EU context most commonly interpreted as
  exclusion from the labour market acute poverty
  and material deprivation and to a lesser extent
  an inability to exercise basic social rights.
• Good Starting point is the common indicators
  identified by the EC Social Protection Committee
  at Laeken in 2001.
• Consisted of 18 indicators, 10 primary and 8
  secondary, spanning the themes of income,
  employment, health and education.
• The employment related indicators included
• Primary Long-term unemployment rate, People
  living in jobless households and Regional
  Cohesion (coefficient of variation of employment
  rates)
• Secondary Long term unemployment share Very
  long-term unemployment rate

10
Measuring Employment Impacts

• Impact Assessments (evidence base for original
  objectives)
• Labour Market Activity
• Job entries and sustainability (surveys and
  statistics)
• Self employment and other economic activity
• Income and income gain
• Distance Travelled
• Barrier reduction (initial assessment and at
  leaving)
• Skills/qualifications gained
• Cost Benefit Analysis (savings and net
  benefits/impacts)
• Learning the lessons ensuring take up in
  mainstream provision