Tackling worklessness

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Tackling worklessness

• What works and what doesnt?

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This presentation

• The economic context
• 3 dimensions of tackling worklessness
• Creating jobs
• Preserving jobs
• Improving labour market links
• Some conclusions But first
• Inevitable caveats
• Local variations
• Evidence is rarely conclusive

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Context

• Spatial disparities in growth
• Spatial distribution of new jobs and job losses
  differ
• concentrations of unemployment
• even near accessible buoyant labour markets
• so trickle down doesnt work
• hence stimulate local economic activity
• bolstered by local preference for local jobs

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Local job creation (1) what?

• All-pervasive (eg 7S NDC, LAA block 4, LEGI)
• Business start-up
• Small grants schemes
• Incubator space
• Subsidised consultancy

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Some examples

• Silicon Alley
• Sheffield Seedcorn Fund
• WEETU
• KITE

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Local job creation (2) the impacts

• Provider-led strategies and programmes
• Costs?
• High failure rate
• infertile terrain
• Leakage of benefit (eg subsidised premises)
• Displacement subsidised competition
• Supply side no impact on aggregate demand

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Job preservation (1) what?

• Much the same as job creation
• But also
• Marketing support
• Workforce skills development
• Environmental improvements
• Public sector procurement

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Some examples

• Handsworth Builders Association
• ULVP
• Design Space 2000
• Skills for Success

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Job preservation (2) the impacts

• Slender evaluation evidence
• Displacement, leakage etc
• Spurious monitoring to meet funding regimes
  requirements BUT
• Impact of low workforce skills
• Remaining in touch with employers
• Impact of environmental improvements

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Labour market access (1) what?

• National training and work placement
• Customised training
• Job brokerage
• Direct employer liaison
• Mentoring and support
• Subsidised transport
• Back-to-work grants
• Public sector local employment accords

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Some examples

• Birmingham public sector accord
• New Bullring employment programme
• NDC job brokerage
• Runway to work, Stansted

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Information source

• www.renewal.net

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Labour market access (2) impacts

• Multiple barriers require multiple solutions
• National programmes least impact on least
  competitive
• Locally-based brokerages Heineken effect
• Key elements
• Connect directly to job opportunities
• Comprehensive (childcare, transport)
• Client-centred, outreach approach
• using community-based organisations working
• with official agencies
• high level of personal support, including after
  job starts

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Skills in North London a few thoughts

• Second lowest subregion in London for residents
• lowest level of workforce skills
• Strategic skills planning
• Labour market intelligence?
• Role of LSCs?
• Sub-regional dimension of Skills Commission?

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Conclusions

• Local analysis and local solutions
• Whats appropriate spatial scale for what
  intervention?
• Sub regional strategies
• high skill/wage, knowledge based
• away from deprived areas
• Connections
• Up local neighbourhood strategies less insular
• Down systematic links to disadvantage
• Integrate neighbourhood economic renewal into
  wider growth agenda