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Labour Market Policy Should Be More Elastic
added: 2008-04-22

OECD governments could boost economic growth and help create jobs if local agencies and authorities had more power and autonomy to adjust employment and training programmes to meet local needs, concluded OECD employment ministers attending a high level conference in Venice, Italy, on 17-18 April.

Participants agreed to urgently review the organisation of employment policy in order to respond to the opportunities and threats that localities face in today’s knowledge-based economy.

More gains will be made from greater coordination at the local level, particularly between employment and economic development policies, said OECD Deputy Secretary General, Aart De Geus. He urged OECD members and non-members to work together to better balance national policy goals and local concerns.

One of the worrying findings of an OECD study released at the conference was that there was little coordination between employment policy, training and economic development at the local level which tend to be delivered in ‘silos’. In order to better coordinate policies, local agencies need to adapt their services to meet goals and targets agreed with other agencies.

Participants noted that one of the reasons that governments do not give local agencies more autonomy is that they are concerned about a lack of accountability. However the conference highlighted new ways to balance flexibility and accountability, for example by ensuring local policy makers have a say on the targets they have to meet locally.

U.S. Secretary of Labor Elaine L. Chao said: “The United States has successfully adopted an integrated approach to workforce training, which encourages the key players in each region to work together to design a customized approach to meet their workforce needs. The US Department of Labor has launched a series of initiatives to bring together key leaders from all sectors at the local level, to develop an integrated approach that expands access to relevant worker training and post-secondary education.”


Source: OECD

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