Labour Market Information why, what and who: European perspectives

Transcription

1 Labour Market Information why, what and who: European perspectives Dr. Heikki Räisänen, Adjunct Professor, Research Director, Ministry of Economic Affairs and Employment of Finland Presentation at WAPES expert meeting , Nairobi, Kenya

2 Outline of the presentation Why What Who From data collection to analysis and policy applications Examples of applications based on LMI systems LMI used in policy applications LMI used in monitoring LMI used in analysis work Basic requirements on LMI for successful policy-making

3 Why is Labour Market Information (LMI) vital? In a very small community everybody knows each other, people s work and skills are well known as well as all job opportunities However, nowadays most people live in cities and towns, where it is impossible to know people and job opportunities even in one s own occupation -> LMI is necessary for employers and job-seekers to get into contact with each other -> some kind of LMI is usually a necessary precondition for job contract ->LMI improves the transparency, matching and efficient functioning of the labour market -> further, more efficient functioning of the Labour Market is an important factor of economic growth In modern economies, the mobility of capital and labour force take place Investors monitor the availability of skilled workforce as one important precondition for the investment decision Especially skilled and educated people may move after jobs between regions and countries

4 What are the main types of LMI? Typical PES case

5 Where does the PES LMI come from? Basically, from job-seekers and employers A customer-service information system collects: Background information on the job-seekers (e.g. age, education, work experience, place of residence) information on various transactions (unemployment spells, PES services used) A vacancy register collects information on notified vacancies and their filling process Customer-service information is collected into statistical system on monthly basis and published

6 Web based vacancy bank: vital LMI Information on open vacancies notified at the Public Employment Service Voluntary for employers to use PES services Broad use of vacancy information by job-seekers, unemployed, employed and those outside the labour market A national vacancy bank improves the functioning of the labour market: people get information on job opportunities at all regions and employers can get applicants outside the job location PES covers a large number of job-seekers and vacancies A variety of search options (e.g. occupation, region, type of job etc.) Regularly recruiting employers can notify, fill or cancel vacancies via web service using their own access codes In the last few years, more artificial intelligence and machine learning is applied in the matching process In many European countries the direction is more towards intelligent systems where a job-seeker gets suggestions for suitable jobs and less direct matching by the PES officials

7 Who should (and could) provide LMI? National statistical office Overall surveybased information on the labour market: employment, unemployment and those outside the LM The Public Employment Service Register-based information on the job-seekers (unemployed jobseekers and other job-seekers) and vacancies Information on the Active Labour Market Policy measures, like training, employment subsidies, job-search help, measures to help special target groups In addition, if the unemployment benefit system is run by separate organisation, it provides information on benefits

8 Differences between survey and register-based information Survey Economical to gather (e.g. phone inteviews & web-based information gathering) Gives good overall picture of the labour market Does not give enough information on small groups (large confidence intervals) Depending on sample size, e.g.monthly figures include random variation International comparisons usually possible Register Is usually based on PES customerregister. Intended for providing employment services, not primarily for statistical purposes Register-based information covers everything that is within the register. Covers usually job-seekers, vacancies and employment services Gives reliable picture of even very small groups Is usually very sensitive to changes in the economy and the labour market International comparisons often not possible, as based on national legislation ja other regulation

9 Open data cooperation in use Open data Cooperation in use of data Gather open data for monitoring, evaluation and policy-making purposes Open data means new innovations, e.g. open vacancy data could lead to matching innovations In Europe, the PES is developing more towards an enabler with other actors Researchers should have access to the administrative data The job-seekers and service providers may give and update their own information in the database If you use and apply the data with the research and business community, everyone benefits from the outcome

10 Labour Force Service Center LAFOS in Basic idea of LAFOS 33 service centers for long-term unemployed job-seekers who have multiple problems and need comprehensive service Joint organisation of the local municipality, the PES and the National Social Insurance Institution Works as a one-stop-shop A network, not an organisation A multiprofessional team provides in-dept services for people with health problems, need for rehabilitative services, debt problems and long unemployment periods Finland Use of LMI in LAFOS There is good LMI on the job-seekers based mainly on PES job-seeking register, the municipality s health services and social benefits and SII registers Various services are available for the customer and the LAFOS officials have much information on the person to help the selection of suitable services Each organisation brings its expertise and information systems to LAFOS Besides organisation spesific information systems, there is also LAFOS information system for managing the customer process

11 Open youth service OHJAAMO in Finland Open service for young people under 30 years of age About 40 one-stop-shops all over Finland provide help for employment, education and everyday issues Information and guidance is the main working method E.g.information on educational possibilities and open jobs or practical training, information on housing issues etc. Also web-based guidance is available Based on cooperation between ministries on national level and between different service providers on local level

12 Example of LMI in monitoring use: stock-flow figure of youth unemployment

13 Example of LMI in analysis: distribution of unemployment duration

14 Example of LMI in analysis: distribution of vacancy duration

15 Same LMI can serve multiple goals A proper statistical LMI system is a basis for providing information and public employment services for job-seekers and employers provides statistical information which should be published regularly gives several options to develop graphs and other visual monitoring information which is easy to learn serves as data for analysis purposes (e.g. evaluation) all of these serve as basis for policy-making

16 Basic requirements on LMI for successful policy-making Regular LMI (you can observe the changes) Reliable system (the data is not manipulated in any way) Public and open information (people and companies know what is happening in the labour market) Needs skills and resources to help policy-makers in statistical monitoring, interpreting the developments and working out research evidence

17 Thank you for your attention!