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Labor market inclusion of vulnerable groups
The role of Public Employment Services
Matteo MorgandiSocial protection and Labor Global Practice
Tbilisi, October 28, 2015
Active inclusion: an emerging priority in ECA countries (and globally)Key concerns: increasing inclusion of vulnerable work-able population in the labor market
– Low employment rates among many potentially employable – Perception of “dependency” on transfers in a sub-set of the poor population– Disequilibrium in spending between “passive” and “active” social policies
Response: Activation policy “Packages” – Includes both incentives and support services – Requires innovative approaches and strong
cooperation across different institutions
Services Tailored to
Clients
Labor makret Support
Incentive-compatible
income support
Adaptation
Challenge
4
Objective: address barriers of the vulnerable to entering productive employment
Employability barriers
Participation
constraints
Lack of Informatio
n & disincentiv
es
Supply side
• Education / credentials• Basic cognitive skills
(literacy, etc)• Job-specific skills• Behavioral skills
• Care-taking duties• Lack of empowerment• Distance from labor
markets
• Information deficits on opportunities, returns, misconception on interaction of benefits and employment
Interventions become more complex and likely to involve multiple actors
Stylized example
Registration and assessment (individual or family level)
Addressing other barriers:
- Health - Housing - Counselling- Legal support
Income support Employability assessment
Intermediation & job-search
Active Labor Market
Programs
Returning to education
Public Employment Services have an important role to play …
(Public) employment services play important functions: Reducing information gaps, improving job matches
Assessment and closure of skills gaps
Supporting labor mobility, income support for the unemployed
By providing a universal service (instead of a service focused on specific attractive groups of employers and jobseekers), PES are especially important for the low-qualified and disadvantaged jobseekers
Their level of outreach to the most vulnerable has been strengthened by stronger coordination with social policies
… But in ECA PES face several challenges to fulfil their core functions
Effective tools for monitoring performance and, at the branch level, to influence performance
Low resource endowment and non-targeted resources across groups and space
Limited employer outreach and employer service capacity. Exacerbated by low levels of enterprise development.
One-size fits all culture, limited ability to profile and prioritize customers
Overburdening with administrative and registration tasks
Antiquated support systems
1
2Central Offices
3
Governance
Management
Program / Benefit Delivery
Supporting Systems
Ministries / Tripartite Governance
Program and Resource Planning
Administration, Finance, HR, M&E, IT-Systems (jobseekers, employers, vacancies, ALMP management, benefit payment, etc.)
Jobseekers/ SA beneficiaries
Employers / enterprises
4
2
3
4
Local Offices1
Benefits and
Payments
Labor Market
Programs
5
5
7
6
6
PES can adopt new tools to cope with their “expanded mission”. Example of Client Profiling
Objectives:– Determine level of labor market
readiness of client (client segmentation)
– Determine which intervention is most necessary, if any, (targeting)
– Advanced uses: Enabling private provision and resource allocation (signaling risk)
9
Use of profiling in employment services
1
Dis
tan
ce
fro
m l
ab
or
ma
rke
t
LOW
HIGH
High risk group
Middle risk group
Low risk group
Personalized Protocol of
support
Resurce intensive ALMPs (e.g. wage
subsidies)
Vocational training
Self-service and job matching
2
3
Le
ve
l o
f p
rio
riti
zati
on
by
c
as
ew
ork
er
LOW
HIGH
Caseworker assessment
Reducing Information asymmetries
Registration
Caseworker-based profiling (Denmark)
Labor market matching model
11
Statistical profiling for prioritization of active labor market programs (Sweden).
Registration Assessment Support Tool
GROUP 1Very good employment
prospects
GROUP 2Good employment
prospects
GROUP 3Weak employment
prospects
GROUP 4At high risk of LTU;
early ALMP measures needed
Caseworker likely to override regular
procedures and provide early ALMP
interventions
Registration and initial interview
Statistical profiling model
Segmentation based on risk groups Final caseworker decision
1 2
3
Probability of not finding a job, sorted according to the statistical risk profiling
group
Probability of not finding a job, according to the case worker’s
assessment of the need of early intervention (Need of early intervention, 0=No, 1=Yes)
YES
NO
Source: F. Dahlen (2015), Sweden PES
There are a range of models in which PES can interact with other key agencies…
Source: Adapted from A. Taylor (2014)
Integration of ministries and policies
Fully integrated system
Multi service agencies in single location
Structured cooperation of autonomous agencies
Ad-hoc limited reactive cooperation
Ireland
United Kingdom, Denmark, Armenia
Sweden
Several countries in Eastern Europe
Australia (PES delivery with private providers)
…with some recurring elements in all models
Inter-agency Cooperation
Referral protocols (SA <-> PES <-> specialized support services )
Coordinated case management, personal action plans
Benefit coordination (sanctions)
Integrated or “dialoguing” information systems
Public Employment services
Profiling of the jobseekers
Protocols for targeting and prioritization of interventions (It is important to know both what works, and for whom)
Permanent M&E system of active labor market programs
